Pepsi 2008 Annual Report Download - page 96

94 PepsiCo, Inc. 2008 Annual Report
Quarterly
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Net revenue
2008 $8,333 $10,945 $11,244 $12,729
2007 $7,350 $÷9,607 $10,171 $12,346

2008 $4,499 $÷5,867 $÷5,976 $÷6,558
2007 $4,065 $÷5,265 $÷5,544 $÷6,562
Restructuring and
impairment charges
(a)
2008 – – – $÷÷«543
2007 – – – $÷÷«102

(b)
2007 – – $÷÷(115) $÷÷÷(14)
Mark-to-market net impact
(c)
2008 $÷÷«÷4 $÷÷÷(61) $÷÷«176 $÷÷«227
2007 $÷÷(17) $÷÷÷(13) $÷÷÷«29 $÷÷««(18)
PepsiCo portion of PBG
restructuring and
impairment charge
(d)
2008 – – – $÷÷«138
Net income
2008 $1,148 $÷1,699 $÷1,576 $÷÷«719
2007 $1,096 $÷1,557 $÷1,743 $÷1,262
Net income per common

2008 $÷0.72 $÷÷1.07 $÷÷1.01 $÷÷0.46
2007 $÷0.67 $÷÷0.96 $÷÷1.08 $÷÷0.78
Net income per common

2008 $÷0.70 $÷÷1.05 $÷÷0.99 $÷÷0.46
2007 $÷0.65 $÷÷0.94 $÷÷1.06 $÷÷0.77
Cash dividends declared per
common share
2008 $0.375 $÷0.425 $÷0.425 $÷0.425
2007 $÷0.30 $÷0.375 $÷0.375 $÷0.375
2008 stock price per share
(e)
High $79.79 $÷72.35 $÷70.83 $÷75.25
Low $66.30 $÷64.69 $÷63.28 $÷49.74
Close $71.19 $÷67.54 $÷68.92 $÷54.56
2007 stock price per share
(e)
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
2008 results reect our change in reporting calendars of Spain and Portugal.
(a) The restructuring and impairment charge in 2008 was $543 million ($408 million after-tax
or $0.25 per share). The restructuring and impairment charge in 2007 was $102 million
($70 million after-tax or $0.04 per share). See Note 3.
(b) Thenon-cashtaxbenetsin2007of$129million($0.08pershare)relatetothefavorable
resolution of certain foreign tax matters. See Note 5.
(c) In 2008, we recognized $346 million ($223 million after-tax or $0.14 per share) of mark-
to-market net losses on commodity hedges in corporate unallocated expenses. In 2007, we
recognized$19million($12millionafter-taxor$0.01pershare)ofmark-to-marketnetgains
on commodity hedges in corporate unallocated expenses.
(d) In 2008, we recognized a non-cash charge of $138 million ($114 million after-tax or
$0.07 per share) included in bottling equity income as part of recording our share of PBG’s
nancialresults.
(e) Represents the composite high and low sales price and quarterly closing prices for one share
of PepsiCo common stock.
Selected Financial Data
(in millions except per share amounts, unaudited)
Five–Year Summary 2008 2007 2006
Net revenue $43,251 $39,474 $35,137
Net income $÷5,142 $÷5,658 $÷5,642
Income per common share – basic $÷÷3.26 $÷÷3.48 $÷÷3.42
Income per common share – diluted $÷÷3.21 $÷÷3.41 $÷÷3.34
Cash dividends declared per
common share $÷÷1.65 $÷1.425 $÷÷1.16
Total assets $35,994 $34,628 $29,930
Long-term debt $÷7,858 $÷4,203 $÷2,550
Return on invested capital (a) 25.5% 28.9% 30.4%
Five–Year Summary (continued) 2005 2004
Net revenue $32,562 $29,261
Income from continuing operations $÷4,078 $÷4,174
Net income $÷4,078 $÷4,212
Income per common share – basic,
continuing operations $÷÷2.43 $÷÷2.45
Income per common share – diluted,
continuing operations $÷÷2.39 $÷÷2.41
Cash dividends declared per common share $÷÷1.01 $÷÷0.85
Total assets $31,727 $27,987
Long-term debt $÷2,313 $÷2,397
Return on invested capital (a) 22.7% 27.4%
(a) Returnoninvestedcapitalisdenedasadjustednetincomedividedbythesumofaverage
shareholders’equityandaveragetotaldebt.Adjustednetincomeisdenedasnetincome
plus net interest expense after-tax. Net interest expense after-tax was $184 million in 2008,
$63 million in 2007, $72 million in 2006, $62 million in 2005 and $60 million in 2004.
• Includes restructuring and impairment charges of:
2008 2007 2006 2005 2004
Pre-tax $«543 $«102 $÷«67 $÷«83 $«150
After-tax $«408 $÷«70 $÷«43 $÷«55 $÷«96
Per share $0.25 $0.04 $0.03 $0.03 $0.06
• Includes mark-to-market net expense (income) of:
2008 2007 2006
Pre-tax $«346 $÷«(19) $÷«18
After-tax $«223 $÷«(12) $÷«12
Per share $0.14 $(0.01) $0.01
• In 2008, we recognized $138 million ($114 million after-tax or $0.07 per share)
of our share of PBG’s restructuring and impairment charges.
• In 2007, we recognized $129 million ($0.08 per share) of non-cash tax benets
related to the favorable resolution of certain foreign tax matters. In 2006, we
recognized non-cash tax benets 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 American Job Creation Act of 2004. In 2004, we reached
agreement with the IRS for an open issue related to our discontinued restaurant
operations which resulted in a tax benet 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 scal year consisted of 53 weeks compared to 52 weeks in our
normal scal 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).