Pepsi 2012 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2012 Pepsi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

Management’s Discussion and Analysis
Our Business
Executive Overview 36
Our Operations 37
Our Customers 39
Our Distribution Network 39
Our Competition 39
Other Relationships 40
Our Business Risks 40
Our Critical Accounting Policies
Revenue Recognition 49
Goodwill and Other Intangible Assets 50
Income Tax Expense and Accruals 51
Pension and Retiree Medical Plans 52
Our Financial Results
Items Affecting Comparability 54
Results of Operations —  Consolidated Review 56
Results of Operations —  Division Review 59
Frito-Lay North America 60
Quaker Foods North America 61
Latin America Foods 62
PepsiCo Americas Beverages 63
Europe 64
Asia, Middle East and Africa 65
Our Liquidity and Capital Resources 66
Consolidated Statement of Income 68
Consolidated Statement of
Comprehensive Income 69
Consolidated Statement of Cash Flows 70
Consolidated Balance Sheet 72
Consolidated Statement of Equity 73
Notes to Consolidated Financial Statements
Note1 Basis of Presentation and Our Divisions 74
Note2 Our Significant Accounting Policies 78
Note3 Restructuring, Impairment and
Integration Charges 80
Note4 Property, Plant and Equipment and
Intangible Assets 81
Note5 Income Taxes 84
Note6 Stock-Based Compensation 85
Note7 Pension, Retiree Medical and Savings Plans 87
Note8 Related Party Transactions 93
Note9 Debt Obligations and Commitments 93
Note10 Financial Instruments 95
Note11 Net Income Attributable to PepsiCo
per Common Share 97
Note12 Preferred Stock 98
Note13 Accumulated Other Comprehensive Loss
Attributable to PepsiCo 98
Note14 Supplemental Financial Information 98
Note15 Acquisitions and Divestitures 99
Management’s Responsibility for
Financial Reporting 100
Management’s Report on Internal Control
Over Financial Reporting 101
Report of Independent Registered Public
Accounting Firm 102
Selected Financial Data 103
Reconciliation of GAAP and Non-GAAP
Information 105
Glossary 108
2012 PEPSICO ANNUAL REPORT 35
Financials