Pepsi 2012 Annual Report Download - page 62

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Organic Revenue Growth
Organic revenue growth is a significant measure we use to monitor net revenue performance. However, it is not a measure
provided by accounting principles generally accepted in the U.S. Therefore, this measure is not, and should not be viewed as, a
substitute for U.S. GAAP net revenue growth. In order to compute our organic revenue growth results, we exclude the impact
of acquisitions and divestitures, foreign exchange translation and the 53rd week from reported net revenue growth. See also
“Non-GAAP Measures.”
2012 FLNA QFNA LAF PAB Europe AMEA Total
Reported Growth 2% (1)% 9% (4.5)% (1)% (10)% (1.5)%
% Impact of:
Foreign exchange translation – – 7 – 7 3 2.5
Acquisitions and divestitures – – (2) 4.5 (2) 17 3
53rd week 2 2 – 1 – – 1
Organic Growth(a) 4% 1% 14% 1.5% 4% 10% 5%
2011 FLNA QFNA LAF PAB Europe AMEA Total
Reported Growth 6% –% 13% 10% 41% 17% 15%
% Impact of:
Foreign exchange translation – (1) (2) (1) (3) (2) (1)
Acquisitions and divestitures – – – * * – *
53rd week (2) (2) – (1) – – (1)
Organic Growth(a) 3.5% (2 )% 11% * * 16% *
(a) 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.
Frito-Lay North America
% Change
2012 2011 2010 2012 2011
Net revenue $ 13,574 $ 13,322 $ 12,573 2 6
53rd week – (260) –
Net revenue excluding above item* $ 13,574 $ 13,062 $ 12,573 4 4
Impact of foreign exchange translation – –
Net revenue growth excluding above item, on a constant currency basis* 4 3.5**
Operating profit $ 3,646 $ 3,621 $ 3,376 1 7
Restructuring and impairment charges 38 76 –
53rd week – (72) –
Operating profit excluding above items* $ 3,684 $ 3,625 $ 3,376 2 7
Impact of foreign exchange translation – –
Operating profit growth excluding above items, on a constant currency basis* 2 7
* See “Non-GAAP Measures”
** Does not sum due to rounding
2012
Net revenue increased 2% and pound volume declined 1%.
Net revenue growth was driven by effective net pricing, par-
tially offset by the volume decline. The volume performance
reflects double-digit declines in trademark SunChips and Rold
Gold, a low-single-digit decline in trademark Lay’s and a mid-
single-digit decline in trademark Tostitos, partially offset by a
high-single-digit increase in variety packs and a double-digit
increase in our Sabra joint venture. The impact of the 53rd
week in the prior year reduced both volume and net revenue
performance by 2percentage points.
Operating profit grew 1%, driven by the net revenue growth
and planned cost reductions across a number of expense
categories, partially offset by higher commodity costs, pri-
marily cooking oil, which reduced operating profit growth by
6percentage points, and higher advertising and marketing
Management’s Discussion and Analysis
2012 PEPSICO ANNUAL REPORT60