Pepsi 2006 Annual Report Download - page 83

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First Second Third Fourth
Quarterly Quarter Quarter Quarter Quarter
Net revenue
2006 $7,205 $8,599 $8,950 $10,383
2005 $6,585 $7,697 $8,184 $10,096
Gross profit
2006 $4,026 $4,790 $4,920 $5,639
2005 $3,715 $4,383 $4,669 $5,619
2006 restructuring and impairment charges(a)
2006 – – – $67
2005 restructuring charges(a)
2005 – – – $83
2006 Tax Adjustments(b)
2006 – – – $(602)
AJCA tax charge(c)
2005 – – $468 $(8)
Net income
2006 $1,019 $1,358 $1,481 $1,784
2005 $912 $1,194 $864 $1,108
Net income per common share — basic
2006 $0.61 $0.82 $0.90 $1.09
2005 $0.54 $0.71 $0.52 $0.66
Net income per common share — diluted
2006 $0.60 $0.80 $0.88 $1.06
2005 $0.53 $0.70 $0.51 $0.65
Cash dividends declared per common share
2006 $0.26 $0.30 $0.30 $0.30
2005 $0.23 $0.26 $0.26 $0.26
2006 stock price per share(d)
High $60.55 $61.19 $65.99 $65.99
Low $56.00 $56.51 $58.65 $61.15
Close $59.34 $59.70 $64.73 $62.55
2005 stock price per share(d)
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
The first, second, and third quarters consist of 12 weeks and the fourth
quarter consists of 16 weeks in 2006 and 17 weeks in 2005.
(a) The 2006 restructuring and impairment charges were $67 million
($43 million or $0.03 per share after-tax). The 2005 restructuring charges
were $83 million ($55 million or $0.03 per share after-tax). See Note 3.
(b) Represents non-cash tax benefits in connection with the 2006 Tax
Adjustments. See Note 5.
(c) Represents income tax expense associated with our repatriation of earn-
ings in connection with the AJCA. See Note 5.
(d) Represents the composite high and low sales price and quarterly closing
prices for one share of PepsiCo common stock.
Five-Year Summary 2006 2005 2004
Net revenue $35,137 $32,562 $29,261
Income from continuing
operations $5,642 $4,078 $4,174
Net income $5,642 $4,078 $4,212
Income per common share —
basic, continuing operations $3.42 $2.43 $2.45
Income per common share —
diluted, continuing operations $3.34 $2.39 $2.41
Cash dividends declared
per common share $1.16 $1.01 $0.85
Total assets $29,930 $31,727 $27,987
Long-term debt $2,550 $2,313 $2,397
Return on invested capital(a) 30.4% 22.7% 27.4%
Five-Year Summary (Cont.) 2003 2002
Net revenue $26,971 $25,112
Net income $3,568 $3,000
Income per common share — basic $2.07 $1.69
Income per common share — diluted $2.05 $1.68
Cash dividends declared per
common share $0.63 $0.595
Total assets $25,327 $23,474
Long-term debt $1,702 $2,187
Return on invested capital(a) 27.5% 25.7%
(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 $72 million in 2006, $62 million in 2005,
$60 million in 2004, $72 million in 2003 and $93 million in 2002.
• Includes restructuring and impairment charges of:
2006 2005 2004 2003
Pre-tax $67 $83 $150 $147
After-tax $43 $55 $96 $100
Per share $0.03 $0.03 $0.06 $0.06
• Includes Quaker merger-related costs of:
2003 2002
Pre-tax $59 $224
After-tax $42 $190
Per share $0.02 $0.11
• In 2006, we recognized non-cash tax benefits of $602 million ($0.36 per
share) in connection with the 2006 Tax Adjustments. In 2005, we recorded
income tax expense of $460 million ($0.27 per share) related to our repatria-
tion of earnings in connection with the AJCA. In 2004, we reached agree-
ment with the IRS for an open issue related to our discontinued restaurant
operations which resulted in a tax benefit of $38 million ($0.02 per share).
• On December 30, 2006, we adopted SFAS 158 which reduced total assets
by $2,016 million, total common shareholders’ equity by $1,643 million
and total liabilities by $373 million.
• 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 ($0.03 per share).
81
Selected Financial Data (in millions except per share amounts, unaudited)
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