Pepsi 2010 Annual Report Download - page 107

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Five-Year Summary (unaudited)
106 PepsiCo, Inc. 2010 Annual Report
2010 2009 2008 2007 2006
Net revenue $57,838 $43,232 $43,251 $39,474 $35,137
Net income attributable to PepsiCo $ 6,320 $ 5,946 $ 5,142 $ 5,658 $ 5,642
Net income attributable to PepsiCo per common share − basic $ 3.97 $ 3.81 $ 3.26 $ 3.48 $ 3.42
Net income attributable to PepsiCo per common share − diluted $ 3.91 $ 3.77 $ 3.21 $ 3.41 $ 3.34
Cash dividends declared per common share $ 1.89 $ 1.775 $ 1.65 $ 1.425 $ 1.16
Total assets $68,153 $39,848 $35,994 $34,628 $29,930
Long-term debt $19,999 $ 7,400 $ 7,858 $ 4,203 $ 2,550
Return on invested capital(a) 19.3% 27.2% 25.5% 28.9% 30.4%
(a) Return on invested capital is dened as adjusted net income attributable to PepsiCo divided by the sum of average common shareholders’ equity and average total
debt. Adjusted net income attributable to PepsiCo is dened as net income attributable to PepsiCo plus net interest expense after-tax. Net interest expense after-tax
was $534million in 2010, $211million in 2009, $184million in 2008, $63million in 2007 and $72million in 2006.
• Includes restructuring and impairment charges of:
2009 2008 2007 2006
Pre-tax $ 36 $ 543 $ 102 $ 67
After-tax $ 29 $ 408 $ 70 $ 43
Per share $0.02 $0.25 $0.04 $0.03
• Includes mark-to-market net (income)/expense of:
2010 2009 2008 2007 2006
Pre-tax $ (91) $ (274) $ 346 $ (19) $ 18
After-tax $ (58) $ (173) $ 223 $ (12) $ 12
Per share $(0.04) $(0.11) $0.14 $(0.01) $0.01
• 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 costs had an after-tax impact of $648million or $0.40 per share.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• In 2009, we recognized $50million of merger-related charges related to our acquisitions of PBG and PAS, 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.
• 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.
• On December 30, 2006, we adopted guidance from the FASB on accounting for pension and other postretirement benets which reduced total assets by
$2,016million, total common shareholders’ equity by $1,643million and total liabilities by $373million.