Pepsi 2009 Annual Report Download - page 44

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Financial Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS
OUR BUSINESS
Executive Overview..............................................33
Our Operations ..................................................35
Our Customers ..................................................36
Our Distribution Network........................................37
Our Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Other Relationships..............................................37
Our Business Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Risks Relating to the Mergers ....................................42
OUR CRITICAL ACCOUNTING POLICIES
Revenue Recognition............................................46
Brand and Goodwill Valuations ..................................46
Income Tax Expense and Accruals ...............................47
Pension and Retiree Medical Plans ..............................48
Recent Accounting Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
OUR FINANCIAL RESULTS
Items Affecting Comparability...................................50
Results of Operations—Consolidated Review . . . . . . . . . . . . . . . . . . . 51
Results of Operations—Division Review.........................53
Frito-Lay North America ......................................53
Quaker Foods North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Latin America Foods .........................................54
PepsiCo Americas Beverages .................................55
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Asia, Middle East & Africa .....................................56
Our Liquidity and Capital Resources.............................57
Acquisition of Common Stock of PBG and PAS . . . . . . . . . . . . . . . . . . 59
CONSOLIDATED STATEMENT OF INCOME . . . . . . . . . . . . 60
CONSOLIDATED STATEMENT OF CASH FLOWS......61
CONSOLIDATED BALANCE SHEET ......................62
CONSOLIDATED STATEMENT OF EQUITY . . . . . . . . . . . . . 63
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 Basis of Presentation and Our Divisions...............64
Note 2 Our Significant Accounting Policies ..................67
Note 3 Restructuring and Impairment Charges ..............68
Note 4 Property, Plant and Equipment and
Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Note 5 Income Taxes .........................................71
Note 6 Stock-Based Compensation ..........................72
Note 7 Pension, Retiree Medical and Savings Plans ..........73
Note 8 Noncontrolled Bottling Affiliates......................77
Note 9 Debt Obligations and Commitments.................79
Note 10 Financial Instruments.................................80
Note 11 Net Income Attributable to PepsiCo
per Common Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Note 12 Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Note 13 Accumulated Other Comprehensive
Loss Attributable to PepsiCo . . . . . . . . . . . . . . . . . . . . . . . 85
Note 14 Supplemental Financial Information..................85
Note 15 Acquisition of Common Stock of PBG and PAS .......86
MANAGEMENT’S RESPONSIBILITY FOR
FINANCIAL REPORTING................................87
MANAGEMENT’S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING ..........88
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM...........................89
SELECTED FINANCIAL DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
RECONCILIATION OF GAAP AND
NONGAAP INFORMATION............................91
GLOSSARY....................................................93
32 PepsiCo, Inc. 2009 Annual Report
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