Pepsi 2008 Annual Report Download - page 98
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96 PepsiCo, Inc. 2008 Annual Report
Acquisitions: reect all mergers and acquisitions activity,
including the impact of acquisitions, divestitures and changes
in ownership or control in consolidated subsidiaries. The impact
of acquisitions related to our non-consolidated equity investees
is reected in our volume and, excluding our anchor bottlers,
in our operating prot.
Anchor bottlers: The Pepsi Bottling Group (PBG), PepsiAmericas
(PAS) and Pepsi Bottling Ventures (PBV).
Bottlers: customers to whom we have granted exclusive con-
tracts to sell and manufacture certain beverage products bearing
our trademarks within a specic geographical area.
Bottler Case Sales (BCS): measure of physical beverage volume
shipped to retailers and independent distributors from both
PepsiCo and our bottlers.
Bottler funding: nancial incentives we give to our bottlers to
assist in the distribution and promotion of our beverage products.
Concentrate Shipments and Equivalents (CSE): measure of
our physical beverage volume shipments to bottlers, retailers and
independent distributors. This measure is reported on our scal
year basis.
Consumers: people who eat and drink our products.
CSD: carbonated soft drinks.
Customers: authorized bottlers and independent distributors
and retailers.
Derivatives: nancial instruments that we use to manage our
risk arising from changes in commodity prices, interest rates,
foreign exchange rates and stock prices.
Direct-Store-Delivery (DSD): delivery system used by us and
our bottlers to deliver snacks and beverages directly to retail
stores where our products are merchandised.
Glossary
Effective net pricing: reects the year-over-year impact of
discrete pricing actions, sales incentive activities and mix result-
ing from selling varying products in different package sizes and
in different countries.
: net cash provided by
operating activities less capital spending plus sales of property,
plant and equipment. It is our primary measure used to monitor
cash ow performance.
Mark-to-market net gain or loss or impact: the change in
market value for commodity contracts, that we purchase to
mitigate the volatility in costs of energy and raw materials that
we consume. The market value is determined based on average
prices on national exchanges and recently reported transactions
in the market place.
Marketplace spending: sales incentives offered through various
programs to our customers and consumers (trade spending), as
well as advertising and other marketing activities.
Servings: common metric reecting our consolidated physical
unit volume. Our divisions’ physical unit measures are converted
into servings based on U.S. Food and Drug Administration guide-
lines for single-serving sizes of our products.
Transaction gains and losses: the impact on our consolidated
nancial statements of exchange rate changes arising from spe-
cic transactions.
Translation adjustment: the impact of converting our foreign
afliates’ nancial statements into U.S. dollars for the purpose
of consolidating our nancial statements.