Pepsi 2006 Annual Report Download - page 78

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Comprehensive income is a measure of
income which includes both net income
and other comprehensive income or
loss. Other comprehensive income or
loss results from items deferred from
recognition into our income statement.
Accumulated other comprehensive loss
is separately presented on our balance
sheet as part of common shareholders’
equity. Other comprehensive
income/(loss) was $456 million in 2006,
$(167) million in 2005 and $381 million
in 2004. The accumulated balances for
each component of other comprehen-
sive loss were as follows:
76
2006 2005 2004
Shares Amount Shares Amount Shares Amount
Preferred stock 0.8 $41 0.8 $41 0.8 $41
Repurchased preferred stock
Balance, beginning of year 0.5 $110 0.4 $ 90 0.3 $63
Redemptions –100.1 19 0.1 27
Balance, end of year 0.5 $120 0.5 $110* 0.4 $90
*Does not sum due to rounding.
2006 2005 2004
Currency translation adjustment $ (506) $ (971) $(720)
Cash flow hedges, net of tax(a) 427 (19)
Unamortized pension and retiree
medical, net of tax(b) (1,782) ––
Minimum pension liability adjustment(c) –(138) (154)
Unrealized gain on securities, net of tax 40 31 7
Other (2) (2) –
Accumulated other comprehensive loss $(2,246) $(1,053) $(886)
(a) Includes $3 million gain in 2006, no impact in 2005 and $6 million gain in 2004 for our share of our
equity investees’ accumulated derivative activity.
(b) Net of taxes of $964 million in 2006.
(c) Net of taxes of $72 million in 2005 and $77 million in 2004. Also includes $120 million in 2005 and
$121 million in 2004 for our share of our equity investees’ minimum pension liability adjustments.
Note 13 — Accumulated Other Comprehensive Loss
As of December 30, 2006 and December
31, 2005, there were 3.6 billion shares
of common stock and 3 million shares
of convertible preferred stock autho-
rized. The preferred stock was issued
only for an ESOP established by Quaker
and these shares are redeemable for
common stock by the ESOP participants.
The preferred stock accrues dividends at
an annual rate of $5.46 per share. At
year-end 2006 and 2005, there were
803,953 preferred shares issued and
320,853 and 354,853 shares outstand-
ing, respectively. The outstanding
preferred shares had a fair value of
$100 million as of December 30, 2006
and $104 million as of December 31,
2005. Each share is convertible at the
option of the holder into 4.9625 shares
of common stock. The preferred shares
may be called by us upon written notice
at $78 per share plus accrued and
unpaid dividends. There were 17 million
shares of common stock held in the
accounts of ESOP participants as of
December 30, 2006 and December 31,
2005. Quaker made the final award to
its ESOP plan in June 2001.
Note 12 — Preferred and Common Stock
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