Pepsi 2005 Annual Report Download - page 77

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75
First Second Third Fourth
Quarterly Quarter Quarter Quarter Quarter
Net revenue
2005 $6,585 $7,697 $8,184 $10,096
2004 $6,131 $7,070 $7,257 $8,803
Gross profit(a)
2005 $3,715 $4,383 $4,669 $5,619
2004 $3,466 $4,039 $4,139 $4,943
2005 restructuring charges(b)
2005 – – – $83
2004 restructuring and
impairment charges(c)
2004 – – – $150
AJCA tax charge(d)
2005 – – $468 $(8)
Net income(e)
2005 $912 $1,194 $864 $1,108
2004 $804 $1,059 $1,364 $985
Net income per common
share — basic(e)
2005 $0.54 $0.71 $0.52 $0.66
2004 $0.47 $0.62 $0.80 $0.58
Net income per common
share — diluted(e)
2005 $0.53 $0.70 $0.51 $0.65
2004 $0.46 $0.61 $0.79 $0.58
Cash dividends declared per
common share
2005 $0.23 $0.26 $0.26 $0.26
2004 $0.16 $0.23 $0.23 $0.23
2005 stock price per share(f)
High $55.71 $57.20 $56.73 $60.34
Low $51.34 $51.78 $52.07 $53.55
Close $52.62 $55.52 $54.65 $59.08
2004 stock price per share(f)
High $53.00 $55.48 $55.71 $53.00
Low $45.30 $50.28 $48.41 $47.37
Close $50.93 $54.95 $50.84 $51.94
The first, second, and third quarters consist of 12 weeks and the fourth quarter consists of 16 weeks in 2004
and 17 weeks in 2005.
(a) Reflects net reclassifications in all periods from cost of sales to selling, general and administrative
expenses related to the alignment of certain accounting policies in connection with our ongoing BPT
initiative. See Note 1.
(b) The 2005 restructuring charges were $83 million ($55 million or $0.03 per share after-tax). See Note 3.
(c) The 2004 restructuring and impairment charges were $150 million ($96 million or $0.06 per share
after-tax). See Note 3.
(d) Represents income tax expense associated with the repatriation of earnings in connection with the AJCA.
See Note 5.
(e) Fourth quarter 2004 net income reflects a tax benefit from discontinued operations of $38 million or
$0.02 per share. See Note 5.
(f) Represents the composite high and low sales price and quarterly closing prices for one share of PepsiCo
common stock.
Five-Year Summary 2005 2004 2003
Net revenue $32,562 $29,261 $26,971
Income from continuing operations $4,078 $4,174 $3,568
Net income $4,078 $4,212 $3,568
Income per common share — basic,
continuing operations $2.43 $2.45 $2.07
Income per common share — diluted,
continuing operations $2.39 $2.41 $2.05
Cash dividends declared per common share $1.01 $0.850 $0.630
Total assets $31,727 $27,987 $25,327
Long-term debt $2,313 $2,397 $1,702
Return on invested capital(a) 22.7% 27.4% 27.5%
Five-Year Summary (Cont.) 2002 2001
Net revenue $25,112 $23,512
Net income $3,000 $2,400
Income per common share — basic $1.69 $1.35
Income per common share — diluted $1.68 $1.33
Cash dividends declared per common share $0.595 $0.575
Total assets $23,474 $21,695
Long-term debt $2,187 $2,651
Return on invested capital(a) 25.7% 22.1%
(a) Return on invested capital is defined as adjusted net income divided by the sum of average
shareholders’ equity and average total debt. Adjusted net income is defined as net income plus net
interest expense after tax. Net interest expense after tax was $62 million in 2005, $60 million in
2004, $72 million in 2003, $93 million in 2002, and $99 million in 2001.
• As a result of the adoption of SFAS 142,
Goodwill and Other Intangible Assets
, and the consolidation
of SVE in 2002, the data provided above is not comparable.
• Includes restructuring and impairment charges of:
2005 2004 2003 2001
Pre-tax $83 $150 $147 $31
After-tax $55 $96 $100 $19
Per share $0.03 $0.06 $0.06 $0.01
• Includes Quaker merger-related costs of:
2003 2002 2001
Pre-tax $59 $224 $356
After-tax $42 $190 $322
Per share $0.02 $0.11 $0.18
• The 2005 fiscal year consisted of fifty-three weeks compared to fifty-two weeks in our normal fiscal
year. The 53rd week increased 2005 net revenue by an estimated $418 million and net income by an
estimated $57 million or $0.03 per share.
• Cash dividends per common share in 2001 are those of pre-merger PepsiCo prior to the effective
date of the merger.
• In the fourth quarter of 2004, we reached agreement with the IRS for an open issue related to
our discontinued restaurant operations which resulted in a tax benefit of $38 million or $0.02
per share.
Selected Financial Data (in millions except per share amounts, unaudited)