Pepsi 2010 Annual Report Download - page 106

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Selected Financial Data
105
2010 2009
Quarterly First Second Third Fourth First Second Third Fourth
(inmillions except per share amounts, unaudited) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Net revenue $9,368 $14,801 $15,514 $18,155 $8,263 $10,592 $11,080 $13,297
Gross prot $4,905 $ 8,056 $ 8,506 $ 9,796 $4,519 $ 5,711 $ 5,899 $ 7,004
Mark-to-market net impact(a) $ (46) $ 4 $ (16) $ (33) $ (62) $ (100) $ (29) $ (83)
Merger and integration charges(b) $ 321 $ 155 $ 69 $ 263 – – $ 9 $ 52
Gain on previously held equity interests(c) $ (958) – – –
Inventory fair value adjustments(d) $ 281 $ 76 $ 17 $ 24
Venezuela currency devaluation(e) $ 120 – – –
Asset write-off(f) $ 145 – – –
Foundation contribution(g) $ 100 – – –
Debt repurchase(h) – – – $ 178
Restructuring and impairment charges(i) $ 25 $ 11 – –
Net income attributable to PepsiCo $1,430 $ 1,603 $ 1,922 $ 1,365 $1,135 $ 1,660 $ 1,717 $ 1,434
Net income attributable to PepsiCo
per common share – basic $ 0.90 $ 1.00 $ 1.21 $ 0.86 $ 0.73 $ 1.06 $ 1.10 $ 0.92
Net income attributable to PepsiCo
per common share – diluted $ 0.89 $ 0.98 $ 1.19 $ 0.85 $ 0.72 $ 1.06 $ 1.09 $ 0.90
Cash dividends declared
per common share $ 0.45 $ 0.48 $ 0.48 $ 0.48 $0.425 $ 0.45 $ 0.45 $ 0.45
Stock price per share(j)
High $66.98 $ 67.61 $ 66.83 $ 68.11 $56.93 $ 56.95 $ 59.64 $ 64.48
Low $58.75 $ 61.04 $ 60.32 $ 63.43 $43.78 $ 47.50 $ 52.11 $ 57.33
Close $66.56 $ 63.56 $ 65.57 $ 65.69 $50.02 $ 53.65 $ 57.54 $ 60.96
(a) In 2010, we recognized $91million ($58million after-tax or $0.04 per share) of mark-to-market net gains on commodity hedges in corporate unallocated expenses. In
2009, we recognized $274million ($173million after-tax or $0.11 per share) of mark-to-market net gains on commodity hedges in corporate unallocated expenses.
(b) In 2010, we incurred merger and integration charges of $799million related to our acquisitions of PBG and PAS, as well as advisory fees in connection with our
acquisition of WBD. In addition, we recorded $9million of merger-related charges, representing our share of the respective merger costs of PBG and PAS. In total,
these charges had an after-tax impact of $648million or $0.40 per share. In 2009, we recognized $50million of merger-related charges, as well as an additional
$11million of costs in bottling equity income representing our share of the respective merger costs of PBG and PAS. In total, these costs had an after-tax impact of
$44million or $0.03 per share. See Note 3.
(c) In 2010, in connection with our acquisitions of PBG and PAS, we recorded a gain on our previously held equity interests of $958million ($0.60 per share), comprising
$735million which is non-taxable and recorded in bottling equity income and $223million related to the reversal of deferred tax liabilities associated with these
previously held equity interests. See Note 15.
(d) In 2010, we recorded $398million ($333million after-tax or $0.21 per share) of incremental costs related to fair value adjustments to the acquired inventory and other
related hedging contracts included in PBG’s and PAS’s balance sheets at the acquisition date.
(e) In 2010, we recorded a one-time $120million net charge ($120million after-tax or $0.07 per share) related to our change to hyperinationary accounting for our
Venezuelan businesses and the related devaluation of the bolivar.
(f ) In 2010, we recorded a $145million charge ($92million after-tax or $0.06 per share) related to a change in scope of one release in our ongoing migration to SAP software.
(g) In 2010, we made a $100million ($64million after-tax or $0.04 per share) contribution to The PepsiCo Foundation Inc., in order to fund charitable and social programs
over the next several years.
(h) In 2010, we paid $672million in a cash tender offer to repurchase $500million (aggregate principal amount) of our 7.90% senior unsecured notes maturing in 2018. As
a result of this debt repurchase, we recorded a $178million charge to interest expense ($114million after-tax or $0.07 per share), primarily representing the premium
paid in the tender offer.
( i ) Restructuring and impairment charges in 2009 were $36million ($29million after-tax or $0.02 per share). See Note 3.
( j ) Represents the composite high and low sales price and quarterly closing prices for one share of PepsiCo common stock.