Pepsi 2013 Annual Report Download - page 82

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64
devaluation, see “Market Risks - Foreign Exchange” in “Our Business Risks” and “Items Affecting
Comparability.”
Furthermore, our cash provided from operating activities is somewhat impacted by seasonality. Working
capital needs are impacted by weekly sales, which are generally highest in the third quarter due to seasonal
and holiday-related sales patterns, and generally lowest in the first quarter. On a continuing basis, we consider
various transactions to increase shareholder value and enhance our business results, including acquisitions,
divestitures, joint ventures, share repurchases and other structural changes. These transactions may result in
future cash proceeds or payments.
The table below summarizes our cash activity:
2013 2012 2011
Net cash provided by operating activities $ 9,688 $ 8,479 $ 8,944
Net cash used for investing activities $ (2,625) $ (3,005) $ (5,618)
Net cash used for financing activities $ (3,789) $ (3,306) $ (5,135)
Operating Activities
During 2013, net cash provided by operating activities was $9.7 billion, compared to $8.5 billion in the prior
year. The operating cash flow performance primarily reflects the overlap of discretionary pension and retiree
medical contributions of $1.5 billion ($1.1 billion after-tax) made in the prior year, higher restructuring and
Tingyi payments in the prior year and favorable working capital comparisons to 2012. These impacts were
partially offset by U.S. federal net cash tax payments of $758 million, including interest, related to an
agreement with the IRS resolving all open matters related to the audits for taxable years 2003 through 2009
and $226 million of cash payments for other Federal, state and local tax matters related to open tax years.
See Note 5 to our consolidated financial statements.
During 2012, net cash provided by operating activities was $8.5 billion, compared to $8.9 billion in the prior
year. The operating cash flow performance primarily reflects discretionary pension and retiree medical
contributions of $1.5 billion ($1.1 billion after-tax) in 2012, partially offset by favorable working capital
comparisons to 2011.
Also see “Free Cash Flow” below for certain other items impacting net cash provided by operating activities.
Investing Activities
During 2013, net cash used for investing activities was $2.6 billion, primarily reflecting $2.7 billion for net
capital spending.
During 2012, net cash used for investing activities was $3.0 billion, primarily reflecting $2.6 billion for net
capital spending and $0.3 billion of cash payments related to the transaction with Tingyi.
We expect 2014 net capital spending to be approximately $3.0 billion, within our long-term capital spending
target of less than or equal to 5% of net revenue.
Financing Activities
During 2013, net cash used for financing activities was $3.8 billion, primarily reflecting the return of operating
cash flow to our shareholders through dividend payments and share repurchases of $6.4 billion, partially
offset by net proceeds from short-term borrowings of $1.2 billion, stock option proceeds of $1.1 billion and
net proceeds from long-term debt of $0.3 billion.
During 2012, net cash used for financing activities was $3.3 billion, primarily reflecting the return of operating
cash flow to our shareholders through dividend payments and share repurchases of $6.5 billion as well as