Pepsi 2011 Annual Report Download - page 78

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Note 12
Preferred Stock
As of December31, 2011 and December25, 2010, there were 3million shares of convertible preferred stock authorized. The preferred stock
was issued for an ESOP established by Quaker and these shares are redeemable for common stock by the ESOP participants. The preferred
stock accrues dividends at an annual rate of $5.46 per share. At year- end 2011 and 2010, there were 803,953 preferred shares issued and
206,653 and 227,653 shares outstanding, respectively. The outstanding preferred shares had a fair value of $68million as of December31,
2011 and $74million as of December25, 2010. Each share is convertible at the option of the holder into 4.9625 shares of common stock. The
preferred shares may be called by us upon written notice at $78 per share plus accrued and unpaid dividends. Quaker made the nal award
to its ESOP plan in June 2001.
2011 2010 2009
Shares(a) Amount Shares(a) Amount Shares(a) Amount
Preferred stock 0.8 $ 41 0.8 $ 41 0.8 $ 41
Repurchased preferred stock
Balance, beginning of year 0.6 $ 150 0.6 $ 145 0.5 $ 138
Redemptions – 7 – 5 0.1 7
Balance, end of year 0.6 $ 157 0.6 $ 150 0.6 $ 145
(a) In millions.
Note 13
Accumulated Other Comprehensive Loss
Attributable to PepsiCo
Comprehensive income is a measure of income which includes
both net income and other comprehensive income or loss. Other
comprehensive income or loss results from items deferred from
recognition into our income statement. Accumulated other compre-
hensive income or loss is separately presented on our balance sheet
as part of common shareholders’ equity. Other comprehensive
(loss)/income attributable to PepsiCo was $(2,599) million in 2011,
$164million in 2010 and $900million in 2009. The accumulated bal-
ances for each component of other comprehensive loss attributable
to PepsiCo were as follows:
2011 2010 2009
Currency translation adjustment $ (2,688) $ (1,159) $ (1,471)
Cash ow hedges, net of tax(a) (169) (100) (42)
Unamortized pension and retiree
medical, net of tax(b) (3,419) (2,442) (2,328)
Unrealized gain on securities, net of tax 62 70 47
Other (15) 1 –
Accumulated other comprehensive loss
attributable to PepsiCo $ (6,229) $ (3,630) $ (3,794)
(a) Includes $23million after- tax gain in 2009 for our share of our equity investees’
accumulated derivative activity.
(b) Net of taxes of $1,831million in 2011, $1,322million in 2010 and $1,211million in 2009.
Note 14
Supplemental Financial Information
2011 2010 2009
Accounts receivable
Trade receivables $ 6,036 $ 5,514
Other receivables 1,033 953
7,069 6,467
Allowance, beginning of year 144 90 $ 70
Net amounts charged to expense 30 12 40
Deductions(a) (41) (37) (21)
Other(b) 24 79 1
Allowance, end of year 157 144 $ 90
Net receivables $ 6,912 $ 6,323
Inventories(c)
Raw materials $ 1,883 $ 1,654
Work- in-process 207 128
Finished goods 1,737 1,590
$ 3,827 $ 3,372
(a) Includes accounts written o.
(b) Includes adjustments related to acquisitions, currency translation eects and
other adjustments.
(c) Inventories are valued at the lower of cost or market. Cost is determined using the
average, rst- in, rst- out (FIFO) or last- in, rst- out (LIFO) methods. Approximately 3%
in 2011 and 8% in 2010 of the inventory cost was computed using the LIFO method.
The dierences between LIFO and FIFO methods of valuing these inventories were
not material.
PepsiCo, Inc.  Annual Report

Notes to Consolidated Financial Statements