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63
2012
Net revenue declined 10%, reflecting the impact of the transaction with Tingyi and the deconsolidation of
IDJ, which reduced net revenue performance by 15 percentage points and 2 percentage points, respectively,
partially offset by volume growth and effective net pricing. Unfavorable foreign exchange negatively
impacted net revenue performance by nearly 3 percentage points.
Snacks volume grew 14%, reflecting broad-based increases, which included double-digit growth in the
Middle East, India and China. Additionally, Australia experienced low-single-digit growth.
Beverage volume grew 10%, driven by double-digit growth in India and Pakistan and high-single-digit growth
in the Middle East as well as in China, which included the benefit of new co-branded juice products distributed
through our joint venture with Tingyi. The Tingyi co-branded volume had a 4-percentage-point impact on
AMEA’s reported beverage volume. Excluding the benefit of the Tingyi co-branded volume, beverage volume
in China declined high-single digits due to Tingyi’s transitional impact on AMEA’s legacy juice business,
the introduction of a 500ml PET value package in the third quarter of 2011, which largely replaced our 600ml
offering in the market, and the timing of the New Year’s holiday.
Operating profit declined 16%, driven by the items affecting comparability in the above table (see “Items
Affecting Comparability”). Excluding these items affecting comparability, operating profit increased 3%,
reflecting the volume growth and effective net pricing, partially offset by higher commodity costs, which
negatively impacted operating profit performance by 10 percentage points. Excluding the restructuring and
other charges related to the transaction with Tingyi listed in the above items affecting comparability, the net
impact of acquisitions and divestitures reduced reported operating profit by 2 percentage points, primarily
as a result of a one-time gain in the prior year associated with the sale of our investment in our franchise
bottler in Thailand, which negatively impacted reported operating profit performance by 13 percentage points.
This decline was partially offset by the impact of structural changes related to the transaction with Tingyi,
which positively contributed 11 percentage points to reported operating profit performance. Unfavorable
foreign exchange reduced reported operating profit performance by 1 percentage point.
Our Liquidity and Capital Resources
We believe that our cash generating capability and financial condition, together with our revolving credit
facilities and other available methods of debt financing (including long-term debt financing which, depending
upon market conditions, we may use to replace a portion of our commercial paper borrowings), will be
adequate to meet our operating, investing and financing needs. Sources of cash available to us to fund cash
outflows, such as our anticipated share repurchases and dividend payments, include cash from operations
and proceeds obtained in the U.S. debt markets. However, there can be no assurance that volatility in the
global credit markets will not impair our ability to access these markets on terms commercially acceptable
to us, or at all. See Note 9 to our consolidated financial statements for a description of our credit facilities.
See also “Unfavorable economic conditions may have an adverse impact on our business results or financial
condition.” in “Risk Factors” in Item 1A.
As of December 28, 2013, we had cash, cash equivalents and short-term investments of $8.4 billion outside
the U.S. To the extent foreign earnings are repatriated, such amounts would be subject to income tax liabilities,
both in the U.S. and in various applicable foreign jurisdictions. In addition, currency restrictions enacted by
the government in Venezuela have impacted our ability to pay dividends outside of the country from our
snack and beverage operations in Venezuela. Effective February 2013, the Venezuelan government devalued
the bolivar by resetting the official exchange rate from 4.3 bolivars per dollar to 6.3 bolivars per dollar. As
of December 28, 2013 and December 29, 2012 our operations in Venezuela comprised 5% and 7%,
respectively, of our cash and cash equivalents balance. For additional information on the impact of the