Pepsi 2014 Annual Report Download - page 137

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117
Selected Financial Data
Selected quarterly financial data for 2014 and 2013 is summarized as follows (in millions except per share
amounts, unaudited):
2014 2013
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Net revenue $ 12,623 $ 16,894 $ 17,218 $ 19,948 $ 12,581 $ 16,807 $ 16,909 $ 20,118
Gross profit $ 6,876 $ 9,116 $ 9,223 $ 10,584 $ 6,747 $ 8,909 $ 8,963 $ 10,553
Mark-to-market net (gains)/
losses (a) $ (34) $ (31) $ 33 $ 100 $ 16 $ 39 $ 19 $ (2)
Merger and integration charges/
(credits) (b) ————$ 1 $ (1) $ 9 $ 1
Restructuring and impairment
charges (c) $ 98 $ 92 $ 68 $ 160 $ 11 $ 19 $ 7 $ 126
Pension lump sum settlement
charge (d) — — — $ 141 ————
Venezuela remeasurement
charges (e) — — — $ 105 $ 111 — — —
Gain on Vietnam refranchising (f) ————— $ (137) — —
Tax benefits (g) ————— — — $ (209)
Net income attributable to
PepsiCo $ 1,216 $ 1,978 $ 2,008 $ 1,311 $ 1,075 $ 2,010 $ 1,913 $ 1,742
Net income attributable to
PepsiCo per common share –
basic $ 0.80 $ 1.30 $ 1.33 $ 0.87 $ 0.69 $ 1.30 $ 1.24 $ 1.14
Net income attributable to
PepsiCo per common share –
diluted $ 0.79 $ 1.29 $ 1.32 $ 0.87 $ 0.69 $ 1.28 $ 1.23 $ 1.12
Cash dividends declared per
common share $ 0.5675 $ 0.655 $ 0.655 $ 0.655 $ 0.5375 $ 0.5675 $ 0.5675 $ 0.5675
Stock price per share (h)
High $ 83.99 $ 88.72 $ 93.51 $ 100.70 $ 79.27 $ 84.78 $ 87.06 $ 86.73
Low $ 77.01 $ 81.53 $ 86.71 $ 89.82 $ 67.39 $ 77.60 $ 78.20 $ 78.67
(a) In 2014 and 2013, we recognized mark-to-market net losses of $68 million ($44 million after-tax or $0.03 per share) and $72 million ($44
million after-tax or $0.03 per share), respectively, on commodity hedges in corporate unallocated expenses.
(b) In 2013, we incurred merger and integration charges of $10 million ($8 million after-tax or $0.01 per share) related to our acquisition of
WBD.
(c) In 2014 and 2013, restructuring and impairment charges were $418 million ($316 million after-tax or $0.21 per share) and $163 million
($129 million after-tax or $0.08 per share), respectively. In addition to the charges in the table above, we incurred pre-tax charges of $67
million ($54 million after-tax or $0.04 per share) in the fourth quarter of 2014 related to productivity initiatives outside the scope of the
2014 and 2012 Productivity Plans. See Note 3 to our consolidated financial statements.
(d) In 2014, we recorded a pension lump sum settlement charge in corporate unallocated expenses of $141 million ($88 million after-tax or
$0.06 per share) related to payments for pension liabilities to certain former employees who had vested benefits. See Note 7 to our consolidated
financial statements.
(e) In 2014, we recorded a $105 million net charge related to our remeasurement of the bolivar for certain net monetary assets of our Venezuela
businesses. $126 million of this charge was recorded in corporate unallocated expenses, with the balance (equity income of $21 million)
recorded in our PAB segment. In total, this net charge had an after-tax impact of $105 million or $0.07 per share. In 2013, we recorded a
$111 million net charge related to the devaluation of the bolivar for our Venezuela businesses. $124 million of this charge was recorded in
corporate unallocated expenses, with the balance (equity income of $13 million) recorded in our PAB segment. In total, this net charge had
an after-tax impact of $111 million or $0.07 per share.
(f) In 2013, we recognized a pre- and after-tax gain of $137 million (or $0.09 per share) in connection with the refranchising of our beverage
business in Vietnam, which was offset by incremental investments in our business. See Note 15 to our consolidated financial statements.
(g) In the fourth quarter of 2013, we recognized a non-cash tax benefit of $209 million ($0.13 per share) associated with our agreement with
the IRS resolving all open matters related to the audits for taxable years 2003 through 2009, which reduced our reserve for uncertain tax
positions for the tax years 2003 through 2012. The amount above excludes a fourth quarter reduction of our reserve for uncertain tax
positions for the tax year 2013 of $107 million, reversing in full amounts accrued in the first three quarters of 2013; this reduction was
more than offset by other tax related adjustments in the fourth quarter of 2013. See Note 5 to our consolidated financial statements.
(h) Represents the composite high and low sales price for one share of PepsiCo common stock.