Pepsi 2011 Annual Report Download - page 84

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2011 2010
(in millions except per share amounts, unaudited)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Net revenue $ 11,937 $ 16,827 $ 17,582 $ 20,158 $ 9,368 $ 14,801 $ 15,514 $ 18,155
Gross prot $ 6,490 $ 8,864 $ 9,130 $ 10,427 $ 4,905 $ 8,056 $ 8,506 $ 9,796
53rd week(a) – – – $ (94) – – – –
Mark- to-market net impact(b) $ (31) $ 9 $ 53 $ 71 $ (46) $ 4 $ (16) $ (33)
Merger and integration charges(c) $ 55 $ 58 $ 61 $ 155 $ 321 $ 155 $ 69 $ 263
Restructuring and impairment charges(d) – – – $ 383 – – – –
Gain on previously held equity interests(e) – – – – $ (958) – – –
Inventory fair value adjustments(f) $ 34 $ 4 $ 3 $ 5 $ 281 $ 76 $ 17 $ 24
Venezuela currency devaluation(g) – – – – $ 120 – – –
Asset write- o(h) – – – – $ 145 – – –
Foundation contribution(i) – – – – $ 100 – – –
Debt repurchase(j) – – – – – – – $ 178
Net income attributable to PepsiCo $ 1,143 $ 1,885 $ 2,000 $ 1,415 $ 1,430 $ 1,603 $ 1,922 $ 1,365
Net income attributable to PepsiCo per common
share — basic $ 0.72 $ 1.19 $ 1.27 $ 0.90 $ 0.90 $ 1.00 $ 1.21 $ 0.86
Net income attributable to PepsiCo per common
share — diluted $ 0.71 $ 1.17 $ 1.25 $ 0.89 $ 0.89 $ 0.98 $ 1.19 $ 0.85
Cash dividends declared per common share $ 0.48 $ 0.515 $ 0.515 $ 0.515 $ 0.45 $ 0.48 $ 0.48 $ 0.48
Stock price per share(k)
High $ 67.46 $ 71.89 $ 70.75 $ 66.78 $ 66.98 $ 67.61 $ 66.83 $ 68.11
Low $ 62.05 $ 63.50 $ 60.10 $ 58.50 $ 58.75 $ 61.04 $ 60.32 $ 63.43
Close $ 63.24 $ 68.69 $ 63.30 $ 66.35 $ 66.56 $ 63.56 $ 65.57 $ 65.69
(a) The 2011 scal year consisted of fty- three weeks compared to fty- two weeks in our normal scal year. The 53rd week increased 2011 net revenue by $623million, gross prot by
$358million, pre- tax income by $94million and net income attributable to PepsiCo by $64million or $0.04 per share.
(b) In 2011, we recognized $102million ($71million after- tax or $0.04 per share) of mark- to-market net losses on commodity hedges in corporate unallocated expenses. In 2010, we
recognized $91million ($58million after- tax or $0.04 per share) of mark- to-market net gains on commodity hedges in corporate unallocated expenses.
(c) In 2011, we incurred merger and integration charges of $329million related to our acquisitions of PBG, PAS and WBD. In total, these charges had an after- tax impact of $271million or
$0.17per share. In 2010, we incurred merger and integration charges of $799million related to our acquisitions of PBG and PAS, as well as advisory fees in connection with our acquisition
of WBD. In addition, we recorded $9million of merger- related charges, representing our share of the respective merger costs of PBG and PAS. In total, these charges had an after- tax
impact of $648million or $0.40 per share. See Note 3.
(d) Restructuring and impairment charges in 2011 were $383million ($286million after- tax or $0.18 per share). See Note 3.
(e) In 2010, in connection with our acquisitions of PBG and PAS, we recorded a gain on our previously held equity interests of $958million ($0.60 per share), comprising $735million which was
non- taxable and recorded in bottling equity income and $223million related to the reversal of deferred tax liabilities associated with these previously held equity interests. See Note 15.
(f ) In 2011, we recorded $46million ($28million after- tax or $0.02 per share) of incremental costs related to fair value adjustments to the acquired inventory included in WBD’s balance
sheet at the acquisition date and hedging contracts included in PBG’s and PAS’s balance sheets at the acquisition date. In 2010, we recorded $398million ($333million after- tax or
$0.21 per share) of incremental costs related to fair value adjustments to the acquired inventory and other related hedging contracts included in PBG’s and PAS’s balance sheets at the
acquisition date.
(g) In 2010, we recorded a one- time $120million net charge ($120million after- tax or $0.07 per share) related to our change to hyperinationary accounting for our Venezuelan businesses and
the related devaluation of the bolivar.
(h) In 2010, we recorded a $145million charge ($92million after- tax or $0.06 per share) related to a change in scope of one release in our ongoing migration to SAP software.
( i ) In 2010, we made a $100million ($64million after- tax or $0.04 per share) contribution to The PepsiCo Foundation Inc., in order to fund charitable and social programs over the next
several years.
( j ) In 2010, we paid $672million in a cash tender oer to repurchase $500million (aggregate principal amount) of our 7.90% senior unsecured notes maturing in 2018. As a result of this debt
repurchase, we recorded a $178million charge to interest expense ($114million after- tax or $0.07 per share), primarily representing the premium paid in the tender oer.
(k) Represents the composite high and low sales price and quarterly closing prices for one share of PepsiCo common stock.
Selected Financial Data
PepsiCo, Inc.  Annual Report
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