Pepsi 2013 Annual Report Download - page 20

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Forward-Looking Statements
This Annual Report on Form 10-K contains statements reflecting our views about our future performance
that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform
Act of 1995 (the “Reform Act”). Statements that constitute forward-looking statements within the meaning
of the Reform Act are generally identified through the inclusion of words such as “aim,” “anticipate,”
“believe,” “drive,” “estimate,” “expect,” “expressed confidence,” “forecast,” “future,” “goals,”
“guidance,” “intend,” “may,” “plan,” “position,” “potential,” “project,” “ seek,” “should,” “strategy,”
“target,” “will” or similar statements or variations of such words and other similar expressions. All
statements addressing our future operating performance, and statements addressing events and developments
that we expect or anticipate will occur in the future, are forward-looking statements within the meaning of
the Reform Act. These forward-looking statements are based on currently available information, operating
plans and projections about future events and trends. They inherently involve risks and uncertainties that
could cause actual results to differ materially from those predicted in any such forward-looking statement.
These risks and uncertainties include, but are not limited to, those described in “Risk Factors” in Item 1A.
and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our
Business Risks” in Item 7. Investors are cautioned not to place undue reliance on any such forward-looking
statements, which speak only as of the date they are made. We undertake no obligation to update any forward-
looking statement, whether as a result of new information, future events or otherwise. The discussion of risks
below and elsewhere in this report is by no means all inclusive but is designed to highlight what we believe
are important factors to consider when evaluating our future performance.
PART I
Item 1. Business.
PepsiCo, Inc. was incorporated in Delaware in 1919 and was reincorporated in North Carolina in 1986. When
used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its
consolidated subsidiaries.
We are a leading global food and beverage company with brands that are respected household names
throughout the world. Through our operations, authorized bottlers, contract manufacturers and other third
parties, we make, market, sell and distribute a wide variety of convenient and enjoyable foods and beverages,
serving customers and consumers in more than 200 countries and territories.
Our management monitors a variety of key indicators to evaluate our business results and financial condition.
These indicators include growth in volume, revenue and organic revenue, growth in operating profit and EPS
(as reported and excluding certain items and the impact of foreign exchange translation), market share, safety,
product and service quality, organizational health, brand equity, employee diversity, net commodity inflation,
productivity savings, net capital spending, free cash flow and free cash flow excluding certain items, cash
returned to shareholders in the forms of share repurchases and dividends, advertising and marketing expenses,
return on invested capital (ROIC), and gross and operating margin change.
Performance with Purpose is our goal to deliver sustained value by providing a wide range of foods and
beverages, from treats to healthy eats; finding innovative ways to minimize our impact on the environment
and lower our costs through energy and water conservation as well as reduce use of packaging material;
providing a safe and inclusive workplace for our employees globally; and respecting, supporting and investing
in the local communities in which we operate. PepsiCo was again recognized for its leadership in this area
in 2013 by earning a place on the prestigious Dow Jones Sustainability World Index for the seventh consecutive
year and on the North America Index for the eighth consecutive year.