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91PepsiCo, Inc. 2009 Annual Report
Reconciliation of GAAP and Non-GAAP Information
The financial measures listed below are not measures defined by
generally accepted accounting principles. However, we believe
investors should consider these measures as they are more
indicative of our ongoing performance and with how manage-
ment evaluates our operational results and trends. Specifically,
investors should consider the following:
• Our 2009 net revenue growth on a constant currency basis;
• Our 2009 and 2008 division operating profit and total operating
profit excluding the impact of restructuring and impairment
charges and costs associated with our mergers with PBG and
PAS, and with respect to our total operating profit, also
excluding the mark-to-market net impact of commodity hedges;
our 2009 division operating profit growth excluding the impact
of the aforementioned items, as well as on a constant currency
basis; and our 2009 total operating profit growth excluding the
impact of the aforementioned items;
• Our 2009 net income attributable to PepsiCo and diluted
EPS excluding the impact of mark-to-market net gains on
commodity hedges, restructuring and impairment charges and
costs associated with our mergers with PBG and PAS; our 2008
net income attributable to PepsiCo and diluted EPS excluding
the impact of mark-to-market net losses on commodity hedges,
restructuring and impairment charges and our share of PBG’s
restructuring and impairment charges; our 2009 growth in net
income attributable to PepsiCo excluding the aforementioned
items; our 2009 diluted EPS growth excluding the impact of the
aforementioned items, as well as on a constant currency basis;
and our 2007 diluted EPS excluding the impact of mark-to-
market net gains on commodity hedges, restructuring and
impairment charges and certain tax benefits;
• Our 2009 return on invested capital (ROIC) excluding the
mark-to-market net impact of commodity hedges, restructuring
and impairment charges, our share of PBG’s restructuring and
impairment charges and costs associated with our mergers
with PBG and PAS; and
• Our 2009 management operating cash flow growth, excluding
the impact of a discretionary pension contribution, cash
payments for PBG and PAS merger costs and restructuring-
related cash payments.
Net Revenue Growth Reconciliation
2009
Reported Net Revenue Growth –%
Foreign Currency Translation 5
Net Revenue Growth, on a constant currency basis 5%
Operating Profit Reconciliation
2009 2008 Growth
Total PepsiCo Reported Operating Profit $8,044 $6,959 16%
Mark-to-Market Net (Gains)/Losses
on Commodity Hedges (274) 346
Restructuring and Impairment Charges 36 543
PBG/PAS Merger Costs 50 –
Total Operating Profit Excluding
above Items 7,856 7,848 –%
Other Corporate Unallocated 791 651
PepsiCo Total Division Operating Profit
Excluding above Items $8,647 $8,499 2%
Foreign Currency Translation 5
PepsiCo Total Division Operating Profit
Growth Excluding above Items, on a
constant currency basis 6% *
* Does not sum due to rounding
Net Income Attributable to PepsiCo Reconciliation
2009 2008 Growth
Reported Net Income Attributable to
PepsiCo $5,946 $5,142 16%
Mark-to-Market Net (Gains)/Losses on
Commodity Hedges (173) 223
Restructuring and Impairment Charges 29 408
PBG’s Restructuring and Impairment
Charges –114
PBG/PAS Merger Costs 44 –
Net Income Attributable to PepsiCo
Excluding above Items $5,846 $5,887 (1)%
88045_pepsico-09ar_87-92_R1.indd 91 2/24/10 5:12 PM