The following selected financial data should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” our consolidated financial statements and accompanying notes thereto. Our fiscal year 2011 comprised fifty-three reporting weeks and all other fiscal years presented in the tables below comprised fifty-two reporting weeks.
2015
2014
2013
2012
2011
Net revenue
$
63,056
$
66,683
$
66,415
$
65,492
$
66,504
Net income attributable to PepsiCo (a)
$
5,452
$
6,513
$
6,740
$
6,178
$
6,443
Net income attributable to PepsiCo per common share – basic (a)
$
3.71
$
4.31
$
4.37
$
3.96
$
4.08
Net income attributable to PepsiCo per common share – diluted (a)
$
3.67
$
4.27
$
4.32
$
3.92
$
4.03
Cash dividends declared per common share
$
2.7625
$
2.5325
$
2.24
$
2.1275
$
2.025
Total assets (a)
$
69,667
$
70,509
$
77,478
$
74,638
$
72,882
Long-term debt
$
29,213
$
23,821
$
24,333
$
23,544
$
20,568
Return on invested capital(a) (b)
13.1
%
13.2
%
14.0
%
13.7
%
14.3
%
(a)
Reflects the impact of the Venezuela impairment charges of $1.4 billion in 2015.
(b)
Return on invested capital (ROIC) is defined as adjusted net income attributable to PepsiCo divided by the sum of average common shareholders’ equity and average total debt. Adjusted net income attributable to PepsiCo is defined as net income attributable to PepsiCo plus interest expense after-tax. Interest expense after-tax was $621 million in 2015, $582 million in 2014, $583 million in 2013, $576 million in 2012 and $548 million in 2011.
The following information highlights certain items that impacted our results of operations and financial condition for the five years presented above:
Includes mark-to-market net (gains)/losses of:
2015
2014
2013
2012
2011
Pre-tax
$
(11
)
$
68
$
72
$
(65
)
$
102
After-tax
$
(8
)
$
44
$
44
$
(41
)
$
71
Per share
$
—
$
0.03
$
0.03
$
(0.03
)
$
0.04
•
Includes restructuring and impairment charges related to the 2014 and 2012 Multi-Year Productivity Plans of:
2015
2014
2013
2012
2011
Pre-tax
$
230
$
418
$
163
$
279
$
383
After-tax
$
184
$
316
$
129
$
215
$
286
Per share
$
0.12
$
0.21
$
0.08
$
0.14
$
0.18
•
Includes charges related to productivity initiatives outside the scope of the 2014 and 2012 Multi-Year Productivity Plans of:
2015
2014
Pre-tax
$
90
$
67
After-tax
$
66
$
54
Per share
$
0.04
$
0.04
•
Includes pre-tax gains in 2015 associated with the settlement of pension-related liabilities from previous acquisitions, and lump-sum settlement charges in 2014 and 2012 related to payments for pension liabilities to certain former employees who had vested benefits of:
2015
2014
2013
2012
Pre-tax
$
(67
)
$
141
$
—
$
195
After-tax
$
(42
)
$
88
$
—
$
131
Per share
$
(0.03
)
$
0.06
$
—
$
0.08
•
In 2015, we recorded pre- and after-tax charges of $1.4 billion ($0.91 per share) in the Latin America segment related to the impairment of investments in our wholly-owned Venezuelan subsidiaries and beverage joint venture.
•
In 2015, we recorded a pre- and after-tax charge of $73 million ($0.05 per share) in the AMENA segment related to a write-off of the value of a call option to increase our holding in Tingyi-Asahi Beverages Holding Co. Ltd. (TAB) to 20%.
•
In 2015, we recognized a non-cash tax benefit of $230 million ($0.15 per share) associated with our agreement with the IRS resolving substantially all open matters related to the audits for taxable years 2010 through 2011, which reduced our reserve for uncertain tax positions for the tax years 2010 through 2011.
•
In 2015, we recognized pre-tax impairment charges of $76 million ($48 million after-tax or $0.03 per share) in the QFNA segment associated with our Müller Quaker Dairy (MQD) joint venture investment, including a fourth quarter charge related to ceasing its operations.
•
In 2015, we recognized a pre-tax gain of $39 million ($28 million after-tax or $0.02 per share) in the AMENA segment associated with refranchising a portion of our beverage businesses in India.
•
In 2014, we recorded a $105 million net charge related to our remeasurement of the bolivar for certain net monetary assets of our Venezuelan businesses. $126 million of this charge was recorded in corporate unallocated expenses, with the balance (equity income of $21 million) recorded in our Latin America segment. In total, this net charge had an after-tax impact of $105 million or $0.07 per share.
•
In 2014, we recorded a pre-tax gain of $31 million ($34 million after-tax or $0.02 per share) in the ESSA segment associated with the sale of agricultural assets in Russia.
•
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 Wimm-Bill-Dann Foods OJSC (WBD).
•
In 2013, we recorded a $111 million net charge related to the devaluation of the bolivar for our Venezuelan businesses. $124 million of this charge was recorded in corporate unallocated expenses, with the balance (equity income of $13 million) recorded in our Latin America segment. In total, this net charge had an after-tax impact of $111 million or $0.07 per share.
•
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.
•
In 2013, we recognized a non-cash tax benefit of $209 million (or $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 reserves for uncertain tax positions for the tax years 2003 through 2012.
•
In 2012, we incurred merger and integration charges of $16 million ($12 million after-tax or $0.01 per share) related to our acquisition of WBD.
•
In 2012, we recorded restructuring and other charges of $150 million ($176 million after-tax or $0.11 per share) related to the transaction with Tingyi.
•
In 2012, we recognized a non-cash tax benefit of $217 million ($0.14 per share) associated with a favorable tax court decision related to the classification of financial instruments.
•
In 2011, we incurred merger and integration charges of $329 million ($271 million after-tax or $0.17 per share) related to our acquisitions of The Pepsi Bottling Group, Inc. (PBG), PepsiAmericas, Inc. (PAS) and WBD.
•
The 2011 fiscal year consisted of fifty-three weeks compared to fifty-two weeks in our normal fiscal year. The 53rd week increased 2011 net revenue by $623 million and net income attributable to PepsiCo by $64 million or $0.04 per share.
•
In 2011, we recorded $46 million ($28 million after-tax or $0.02 per share) of incremental costs related to fair value adjustments to the acquired inventory included in WBD’s balance sheet at the acquisition date and hedging contracts included in PBG’s and PAS’s balance sheets at the acquisition date.
Selected Quarterly Financial Data
Selected financial data for 2015 and 2014 is summarized as follows and highlights certain items that impacted our quarterly results (in millions except per share amounts, unaudited):
Net income attributable to PepsiCo per common share
Basic
$
0.82
$
1.34
$
0.36
$
1.18
$
0.80
$
1.30
$
1.33
$
0.87
Diluted
$
0.81
$
1.33
$
0.36
$
1.17
$
0.79
$
1.29
$
1.32
$
0.87
Cash dividends declared per common share
$
0.655
$
0.7025
$
0.7025
$
0.7025
$
0.5675
$
0.655
$
0.655
$
0.655
Stock price per share (m)
High
$
100.76
$
98.44
$
100.61
$
103.44
$
83.99
$
88.72
$
93.51
$
100.70
Low
$
92.24
$
92.72
$
76.48
$
90.43
$
77.01
$
81.53
$
86.71
$
89.82
(a)
In 2015 and 2014, we recognized $11 million ($8 million after-tax with a nominal amount per share) of mark-to-market net gains and $68 million ($44 million after-tax or $0.03 per share) of mark-to-market net losses, respectively, on commodity hedges in corporate unallocated expenses.
(b)
In 2015 and 2014, restructuring and impairment charges related to the 2014 and 2012 Multi-Year Productivity Plans were $230 million ($184 million after-tax or $0.12 per share) and $418 million ($316 million after-tax or $0.21 per share), respectively. See Note 3 to our consolidated financial statements.
(c)
In 2015, we recorded pre-tax gains of $67 million ($42 million after-tax or $0.03 per share) in the NAB segment associated with the settlement of pension-related liabilities from previous acquisitions.
(d)
In 2014, we recorded a pension lump sum settlement charge 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 2015, we recorded a pre- and after-tax charge of $73 million ($0.05 per share) in the AMENA segment related to a write-off of the value of a call option to increase our holding in TAB to 20%. See Note 10 to our consolidated financial statements.
(f)
In 2015, we recorded pre- and after-tax charges of $1.4 billion ($0.91 per share) in the Latin America segment related to the impairment of investments in our wholly-owned Venezuelan subsidiaries and beverage joint venture. See Note 1 to our consolidated financial statements.
(g)
In 2014, we recorded a $105 million net charge related to our remeasurement of the bolivar for certain net monetary assets of our Venezuelan businesses. $126 million of this charge was recorded in corporate unallocated expenses, with the balance (equity income of $21 million) recorded in our Latin America segment. In total, this net charge had an after-tax impact of $105 million or $0.07 per share.
(h)
In 2015, we recognized a non-cash tax benefit of $230 million ($0.15 per share) associated with our agreement with the IRS resolving substantially all open matters related to the audits for taxable years 2010 through 2011, which reduced our reserve for uncertain tax positions for the tax years 2010 through 2011.
(i)
In 2015, we recognized pre-tax impairment charges of $76 million ($48 million after-tax or $0.03 per share) in the QFNA segment associated with our MQD joint venture investment, including a fourth quarter charge related to ceasing its operations.
(j)
In 2015, we recognized a pre-tax gain of $39 million ($28 million after-tax or $0.02 per share) in the AMENA segment associated with refranchising a portion of our beverage businesses in India.
(k)
In 2015 and 2014, we recorded charges of $90 million ($66 million after-tax or $0.04 per share) and $67 million ($54 million after-tax or $0.04 per share), respectively, related to other productivity initiatives outside the scope of the 2014 and 2012 Productivity Plans. See Note 3 to our consolidated financial statements.
(l)
In 2014, we recorded a pre-tax gain of $31 million ($34 million after-tax or $0.02 per share) in the ESSA segment associated with the sale of agricultural assets in Russia.
(m)
Reflects the quarterly composite high and low sales prices for one share of PepsiCo common stock as reported on the New York Stock Exchange.
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