Pepsi 2012 Annual Report Download - page 100

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Note— Preferred Stock
As of December29, 2012 and December31, 2011, 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 2012 and 2011, there were
803,953 preferred shares issued and 186,553 and 206,653 shares outstanding, respectively. The outstanding preferred shares
had a fair value of $63million as of December29, 2012 and $68million as of December31, 2011. 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 final award to its ESOP plan in June 2001.
2012 2011 2010
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 $ 157 0.6 $ 150 0.6 $ 145
Redemptions – 7 – 7 – 5
Balance, end of year 0.6 $ 164 0.6 $ 157 0.6 $ 150
(a) In millions.
Note— 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 comprehensive income or loss is separately
presented on our balance sheet as part of common sharehold-
ers’ equity. Other comprehensive income/(loss) attributable
to PepsiCo was $742million in 2012, $(2,599)million in 2011
and $164 million in 2010. The accumulated balances for
each component of other comprehensive loss attributable to
PepsiCo were as follows:
2012 2011 2010
Currency translation adjustment $ (1,946) $ (2,688) $ (1,159)
Cash flow hedges, net of tax (94) (112) (38)
Unamortized pension and retiree
medical, net of tax(a) (3,491) (3,419) (2,442)
Unrealized gain on securities, net
of tax 80 62 70
Other (36) (72) (61)
Accumulated other comprehensive
loss attributable to PepsiCo $ (5,487) $ (6,229) $ (3,630 )
(a) Net of taxes of $1,832million in 2012, $1,831million in 2011 and $1,322million
in 2010.
Note— Supplemental Financial Information
2012 2011 2010
Accounts receivable
Trade receivables $ 6,215 $ 6,036
Other receivables 983 1,033
7,198 7,069
Allowance, beginning of year 157 144 $ 90
Net amounts charged to expense 28 30 12
Deductions(a) (27) (41) (37)
Other(b) (1) 24 79
Allowance, end of year 157 157 $ 144
Net receivables $ 7,041 $ 6,912
Inventories(c)
Raw materials $ 1,875 $ 1,883
Work-in-process 173 207
Finished goods 1,533 1,737
$ 3,581 $ 3,827
(a) Includes accounts written off.
(b) Includes adjustments related to acquisitions, currency translation and other
adjustments.
(c) Approximately 3%, in both 2012 and 2011, of the inventory cost was computed
using the LIFO method. The differences between LIFO and FIFO methods of valu-
ing these inventories were not material.
2012 PEPSICO ANNUAL REPORT98
Notes to Consolidated Financial Statements