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Our management is responsible for establishing and
maintaining adequate internal control over financial report-
ing, as such term is defined in Rule 13a-15(f) of the Exchange
Act. Under the supervision and with the participation of our
management, including our Chief Executive Officer and Chief
Financial Officer, we conducted an evaluation of the effective-
ness of our internal control over financial reporting based upon
the framework in Internal Control —  Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on that evaluation, our man-
agement concluded that our internal control over financial
reporting was effective as of December29, 2012.
KPMG LLP, an independent registered public account-
ing firm, has audited the consolidated financial statements
included in this Annual Report and, as part of their audit, has
issued their report, included herein, on the effectiveness of
our internal control over financial reporting.
During our fourth fiscal quarter of 2012, we continued
migrating certain of our financial processing systems to an
enterprise-wide systems solution. These systems implemen-
tations are part of our ongoing global business transformation
initiative, and we plan to continue implementing such systems
throughout other parts of our businesses over the course of
the next few years. Moreover, we continue to integrate our
WBD business, which was acquired in 2011. In connection
with these implementations and integration, and resulting
business process changes, we continue to enhance the design
and documentation of our internal control over financial
reporting processes to maintain suitable controls over our
financial reporting.
Except as described above, there were no changes in our
internal control over financial reporting during our fourth
fiscal quarter of 2012 that have materially affected, or are
reasonably likely to materially affect, our internal control over
financial reporting.
February21, 2013
Marie T. Gallagher
Senior Vice President and Controller
Hugh F. Johnston
Chief Financial Officer
Indra K. Nooyi
Chairman of the Board of Directors and
Chief Executive Officer
Management’s Report on Internal Control Over Financial Reporting
2012 PEPSICO ANNUAL REPORT 101