Pepsi 2007 Annual Report Download - page 87

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Selected Financial Data (in millions except per share amounts, unaudited)
First Second Third Fourth
Quarterly Quarter Quarter Quarter Quarter
Net revenue
2007 $7,350 $9,607 $10,171 $12,346
2006 $6,719 $8,714 $9,134 $10,570
Gross profit
2007 $4,065 $5,265 $5,544 $6,562
2006 $3,757 $4,852 $5,026 $5,740
Restructuring and impairment charges(a)
2007 – – – $102
2006 – – – $67
Tax benefits(b)
2007 – – $(115) $(14)
2006 – – – $(602)
Net income
2007 $1,096 $1,557 $1,743 $1,262
2006 $947 $1,375 $1,494 $1,826
Net income per common share — basic
2007 $0.67 $0.96 $1.08 $0.78
2006 $0.57 $0.83 $0.90 $1.11
Net income per common share — diluted
2007 $0.65 $0.94 $1.06 $0.77
2006 $0.56 $0.81 $0.89 $1.09
Cash dividends declared per common share
2007 $0.30 $0.375 $0.375 $0.375
2006 $0.26 $0.30 $0.30 $0.30
2007 stock price per share(c)
High $65.54 $69.64 $70.25 $79.00
Low $61.89 $62.57 $64.25 $68.02
Close $64.09 $66.68 $67.98 $77.03
2006 stock price per share(c)
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
2006 results reflect our change in reporting calendars of certain operating units
within PI.
(a) The restructuring and impairment charge in 2007 was $102 million
($70 million or $0.04 per share after-tax). The restructuring and impairment
charge in 2006 was $67 million ($43 million or $0.03 per share after-tax).
See Note 3.
(b) In 2007, represents non-cash tax benefits related to the favorable resolution
of certain foreign tax matters. In 2006, represents non-cash tax benefits
primarily related to the IRS’s examination of our consolidated income tax
returns for the years 1998 through 2002. See Note 5.
(c) Represents the composite high and low sales price and quarterly closing prices
for one share of PepsiCo common stock.
Five-Year Summary 2007 2006 2005
Net revenue $39,474 $35,137 $32,562
Net income $5,658 $5,642 $4,078
Income per common share — basic $3.48 $3.42 $2.43
Income per common share — diluted $3.41 $3.34 $2.39
Cash dividends declared per
common
share
$1.425 $1.16 $1.01
Total assets $34,628 $29,930 $31,727
Long-term debt $4,203 $2,550 $2,313
Return on invested capital(a)
28.9% 30.4% 22.7%
Five-Year Summary (cont.) 2004 2003
Net revenue $29,261 $26,971
Income from continuing operations $4,174 $3,568
Net income $4,212 $3,568
Income per common share — basic,
continuing operations $2.45 $2.07
Income per common share — diluted,
continuing operations $2.41 $2.05
Cash dividends declared per common share $0.85 $0.63
Total assets $27,987 $25,327
Long-term debt $2,397 $1,702
Return on invested capital(a) 27.4% 27.5%
(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 $63 million in 2007, $72 million in 2006,
$62 million in 2005, $60 million in 2004 and $72 million in 2003.
• Includes restructuring and impairment charges of:
2007 2006 2005 2004 2003
Pre-tax $102 $67 $83 $150 $147
After-tax $70 $43 $55 $96 $100
Per share $0.04 $0.03 $0.03 $0.06 $0.06
• Includes Quaker merger-related costs of:
2003
Pre-tax $59
After-tax $42
Per share $0.02
• In 2007, we recognized $129 million ($0.08 per share) of non-cash tax benefits
related to the favorable resolution of certain foreign tax matters. In 2006, we
recognized non-cash tax benefits of $602 million ($0.36 per share) primarily in
connection with the IRS’s examination of our consolidated income tax returns
for the years 1998 through 2002. In 2005, we recorded income tax expense
of $460 million ($0.27 per share) related to our repatriation of earnings in
connection with the AJCA. In 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 ($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 53 weeks compared to 52 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).
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