Pepsi 2012 Annual Report Download - page 106

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2012 2011 2010 2009 2008
Net revenue $ 65,492 $ 66,504 $ 57,838 $ 43,232 $ 43,251
Net income attributable to PepsiCo $ 6,178 $ 6,443 $ 6,320 $ 5,946 $ 5,142
Net income attributable to PepsiCo per common share —  basic $ 3.96 $ 4.08 $ 3.97 $ 3.81 $ 3.26
Net income attributable to PepsiCo per common share —  diluted $ 3.92 $ 4.03 $ 3.91 $ 3.77 $ 3.21
Cash dividends declared per common share $ 2.1275 $ 2.025 $ 1.89 $ 1.775 $ 1.65
Total assets $ 74,638 $ 72,882 $ 68,153 $ 39,848 $ 35,994
Long-term debt $ 23,544 $ 20,568 $ 19,999 $ 7,400 $ 7,858
Return on invested capital(a) 13.7% 14.3% 17.0% 27.5% 24.0%
(a) Return on invested capital is defined 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 defined as net income attributable to PepsiCo plus interest expense after-tax. Interest expense after-tax was $576million
in 2012, $548million in 2011, $578million in 2010, $254million in 2009 and $210million in 2008.
• Includes mark-to-market net (gains)/losses of:
2012 2011 2010 2009 2008
Pre-tax $ (65) $ 102 $ (91) $ (274) $ 346
After-tax $ (41) $ 71 $ (58) $ (173) $ 223
Per share $ (0.03) $ 0.04 $ (0.04) $ (0.11) $ 0.14
• In 2012, we incurred merger and integration charges of $16million ($12million after-tax or $0.01 per share) related to our acquisition of WBD.
• Includes restructuring and impairment charges of:
2012 2011 2009 2008
Pre-tax $ 279 $ 383 $ 36 $ 543
After-tax $ 215 $ 286 $ 29 $ 408
Per share $ 0.14 $ 0.18 $ 0.02 $ 0.25
• In 2012, we recorded restructuring and other charges of $150million ($176million after-tax or $0.11 per share) related to the transaction with Tingyi.
• In 2012, we recorded a pension lump sum settlement charge of $195million ($131million after-tax or $0.08 per share).
• In 2012, we recognized a non-cash tax benefit of $217million ($0.14 per share) associated with a favorable tax court decision related to the classification of finan-
cial instruments.
• In 2011, we incurred merger and integration charges of $329million ($271 million after-tax or $0.17 per share) related to our acquisitions of PBG, PAS and WBD.
• The 2011 fiscal year consisted of fifty-three weeks compared to fifty-two weeks in our normal fiscal year. The 53rd week increased 2011 net revenue by $623million and
net income attributable to PepsiCo by $64million or $0.04 per share.
• In 2011, we recorded $46million ($28million after-tax or $0.02 per share) of incremental costs related to fair value adjustments to the acquired inventory included in
WBD’s balance sheet at the acquisition date and hedging contracts included in PBG’s and PAS’s balance sheets at the acquisition date.
• 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, 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, 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 was non-taxable and recorded in bottling equity income and $223million related to the reversal of deferred tax liabilities associated with these previ-
ously held equity interests.
• In 2010, we recorded a $120million net charge ($120million after-tax or $0.07 per share) related to our change to hyperinflationary accounting for our Venezuelan busi-
nesses 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.
Five-Year Summary (unaudited)
2012 PEPSICO ANNUAL REPORT104