Pepsi 2012 Annual Report Download - page 105

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2012 2011
(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 $ 12,428 $ 16,458 $ 16,652 $ 19,954 $ 11,937 $ 16,827 $ 17,582 $ 20,158
Gross profit $ 6,539 $ 8,543 $ 8,819 $ 10,300 $ 6,490 $ 8,864 $ 9,130 $ 10,427
Mark-to-market net impact(a) $ (84) $ 79 $ (121) $ 61 $ (31) $ 9 $ 53 $ 71
Merger and integration charges(b) $ 2 $ 3 $ 2 $ 9 $ 55 $ 58 $ 61 $ 155
Restructuring and impairment charges(c) $ 33 $ 77 $ 83 $ 86 – – – $ 383
Restructuring and other charges related to the
transaction with Tingyi(d) – $ 137 – $ 13 – – – –
Pension lump sum settlement charge(e) – – – $ 195 – – – –
Tax benefit related to tax court decision(f) – – – $ (217) – – – –
53rd week(g) – – – – – – – $ (94)
Inventory fair value adjustments(h) – – – – $ 34 $ 4 $ 3 $ 5
Net income attributable to PepsiCo $ 1,127 $ 1,488 $ 1,902 $ 1,661 $ 1,143 $ 1,885 $ 2,000 $ 1,415
Net income attributable to PepsiCo per common
share —  basic $ 0.72 $ 0.95 $ 1.22 $ 1.07 $ 0.72 $ 1.19 $ 1.27 $ 0.90
Net income attributable to PepsiCo per common
share —  diluted $ 0.71 $ 0.94 $ 1.21 $ 1.06 $ 0.71 $ 1.17 $ 1.25 $ 0.89
Cash dividends declared per common share $ 0.515 $ 0.5375 $ 0.5375 $ 0.5375 $ 0.48 $ 0.515 $ 0.515 $ 0.515
Stock price per share(i)
High $ 67.19 $ 69.74 $ 73.66 $ 72.09 $ 67.46 $ 71.89 $ 70.75 $ 66.78
Low $ 62.15 $ 64.64 $ 68.10 $ 67.72 $ 62.05 $ 63.50 $ 60.10 $ 58.50
Close $ 65.30 $ 69.48 $ 72.10 $ 68.02 $ 63.24 $ 68.69 $ 63.30 $ 66.35
(a) In 2012, we recognized $65million ($41million after-tax or $0.03 per share) of mark-to-market net gains on commodity hedges in corporate unallocated expenses. 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.
(b) In 2012, we incurred merger and integration charges of $16million ($12million after-tax or $0.01 per share) related to our acquisition of WBD. In 2011, we incurred merger
and integration charges of $329million ($271million after-tax or $0.17 per share) related to our acquisitions of PBG, PAS and WBD. See Note3 to our consolidated finan-
cial statements.
(c) In 2012, restructuring and impairment charges were $279million ($215million after-tax or $0.14 per share). Restructuring and impairment charges in 2011 were $383mil-
lion ($286million after-tax or $0.18 per share). See Note3 to our consolidated financial statements.
(d) In 2012, we recorded restructuring and other charges of $150million ($176million after-tax or $0.11 per share) related to the transaction with Tingyi. See Note15 to our
consolidated financial statements.
(e) In 2012, we recorded a pension lump sum settlement charge of $195million ($131million after-tax or $0.08 per share). See Note7 to our consolidated financial statements.
(f ) In 2012, we recognized a non-cash tax benefit of $217million ($0.14 per share) associated with a favorable tax court decision related to the classification of financial
instruments. See Note5 to our consolidated financial statements.
(g) The 2011 fiscal year consisted of fifty-three weeks compared to fifty-two weeks in our normal fiscal year. The 53rd week increased 2011 net revenue by $623million,
gross profit by $358million, pre-tax income by $94million and net income attributable to PepsiCo by $64million or $0.04 per share.
(h) 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. See Note 15 to our consolidated
financial statements.
( i ) Represents the composite high and low sales price and quarterly closing prices for one share of PepsiCo common stock.
Selected Financial Data
2012 PEPSICO ANNUAL REPORT 103