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Results of Operations— Division Review
The results and discussions below are based on how our Chief Executive Officer monitors the performance of our divisions.
Accordingly, 2012 and 2011 volume growth measures reflect an adjustment to the base year for divestitures that occurred
in 2012 and 2011. See “Items Affecting Comparability” for a discussion of items to consider when evaluating our results and
related information regarding non-GAAP measures.
FLNA QFNA LAF PAB Europe AMEA Total
Net Revenue, 2012 $ 13,574 $ 2,636 $ 7,780 $ 21,408 $ 13,441 $ 6,653 $ 65,492
Net Revenue, 2011 $ 13,322 $ 2,656 $ 7,156 $ 22,418 $ 13,560 $ 7,392 $ 66,504
% Impact of:
Volume(a) (1)% (1)% 4% (3)% –% 8% –%
Effective net pricing(b) 3 1 10 3 4 2 4
Foreign exchange translation – – (7) – (7) (3) (2.5)
Acquisitions and divestitures – – 2 (4.5) 2 (17) (3)
Reported growth(c) 2% (1)% 9% (4.5)% (1)% (10)% (1.5)%
FLNA QFNA LAF PAB Europe AMEA Total
Net Revenue, 2011 $ 13,322 $ 2,656 $ 7,156 $ 22,418 $ 13,560 $ 7,392 $ 66,504
Net Revenue, 2010 $ 12,573 $ 2,656 $ 6,315 $ 20,401 $ 9,602 $ 6,291 $ 57,838
% Impact of:
Volume(a) 2% (5)% 3.5% * * 10% *
Effective net pricing(b) 3 4 8 * * 6 *
Foreign exchange translation – 1 2 1% 3% 2 1%
Acquisitions and divestitures – – – * * – *
Reported growth(c) 6% –% 13% 10% 41% 17% 15%
(a) Excludes the impact of acquisitions and divestitures. In certain instances, volume growth varies from the amounts disclosed in the following divisional discussions due to
nonconsolidated joint venture volume, and, for our beverage businesses, temporary timing differences between BCS and CSE. Our net revenue excludes nonconsolidated
joint venture volume, and, for our beverage businesses, is based on CSE.
(b) Includes the year-over-year impact of discrete pricing actions, sales incentive activities and mix resulting from selling varying products in different package sizes and in
different countries.
(c) Amounts may not sum due to rounding.
  * It is impractical to separately determine and quantify the impact of our acquisitions of PBG and PAS from changes in our pre-existing beverage business since we now
manage these businesses as an integrated system.
Management’s Discussion and Analysis
2012 PEPSICO ANNUAL REPORT 59