Pepsi 2013 Annual Report Download - page 69

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51
Results of Operations — Consolidated Review
In the discussions of net revenue and operating profit below, “effective net pricing” reflects 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 and “net pricing” reflects the year-over-year
combined impact of list price changes, weight changes per package, discounts and allowances. Additionally,
“acquisitions and divestitures,” except as otherwise noted, reflect all mergers and acquisitions activity,
including the impact of acquisitions, divestitures and changes in ownership or control in consolidated
subsidiaries and nonconsolidated equity investees.
Servings
Since our divisions each use different measures of physical unit volume (i.e., kilos, gallons, pounds and case
sales), a common servings metric is necessary to reflect our consolidated physical unit volume. Our divisions’
physical volume measures are converted into servings based on U.S. Food and Drug Administration guidelines
for single-serving sizes of our products.
In 2013, total servings increased 2% compared to 2012. In 2012, total servings increased 3% compared to
2011. Excluding the impact of the 53rd week in 2011, total servings also increased 3% in 2012 compared to
2011. 2013 and 2012 servings growth reflects an adjustment to the base year for divestitures and business
changes.
Total Net Revenue and Operating Profit
Change
2013 2012 2011 2013 2012
Total net revenue $ 66,415 $ 65,492 $ 66,504 1% (1.5)%
Operating profit
FLNA $ 3,877 $ 3,646 $ 3,621 6% 1%
QFNA 617 695 797 (11)% (13)%
LAF 1,242 1,059 1,078 17 % (2)%
PAB 2,955 2,937 3,273 1% (10)%
Europe 1,293 1,330 1,210 (3)% 10 %
AMEA 1,174 747 887 57 % (16)%
Corporate Unallocated
Mark-to-market net (losses)/
gains (72) 65 (102) n/m n/m
Merger and integration charges —— (78) —n/m
Restructuring and impairment
charges (11) (10) (74) —(86)%
Venezuela currency devaluation (124) ——n/m —
Pension lump sum settlement
charge —(195) — n/m n/m
53rd week —— (18) —n/m
Other (1,246) (1,162) (961) 7% 21 %
Total operating profit $ 9,705 $ 9,112 $ 9,633 7% (5)%
Total operating profit margin 14.6% 13.9% 14.5% 0.7 (0.6)
n/m represents year-over-year changes that are not meaningful.