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 ends on the last Saturday of each December and our fiscal year 2016 comprised fifty-three reporting weeks while all other fiscal years presented in the tables below comprised fifty-two reporting weeks.
2016
2015
2014
2013
2012
Net revenue (a)
$
62,799
$
63,056
$
66,683
$
66,415
$
65,492
Operating profit
$
9,785
$
8,353
$
9,581
$
9,705
$
9,112
Net income attributable to PepsiCo
$
6,329
$
5,452
$
6,513
$
6,740
$
6,178
Net income attributable to PepsiCo per common share – basic
$
4.39
$
3.71
$
4.31
$
4.37
$
3.96
Net income attributable to PepsiCo per common share – diluted
$
4.36
$
3.67
$
4.27
$
4.32
$
3.92
Cash dividends declared per common share
$
2.96
$
2.7625
$
2.5325
$
2.24
$
2.1275
Total assets
$
74,129
$
69,667
$
70,509
$
77,478
$
74,638
Long-term debt
$
30,053
$
29,213
$
23,821
$
24,333
$
23,544
(a)
Our fiscal 2016 results include an extra week of results. The 53rd reporting week increased 2016 net revenue by $657 million, including $294 million in our FLNA segment, $43 million in our QFNA segment, $300 million in our NAB segment and $20 million in our ESSA segment.
The following information highlights certain items that impacted our results of operations and financial condition for the five years presented above:
2016
Operating profit
Interest expense
Provision for income taxes(b)
Net income attributable to noncontrolling interests
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (c)
$
167
$
—
$
(56
)
$
—
$
111
$
0.08
Restructuring and impairment charges (d)
$
(160
)
$
—
$
26
$
3
$
(131
)
$
(0.09
)
Charge related to the transaction with Tingyi (e)
$
(373
)
$
—
$
—
$
—
$
(373
)
$
(0.26
)
Charge related to debt redemption (f)
$
—
$
(233
)
$
77
$
—
$
(156
)
$
(0.11
)
Pension-related settlement charge (g)
$
(242
)
$
—
$
80
$
—
$
(162
)
$
(0.11
)
53rd reporting week (h)
$
126
$
(19
)
$
(44
)
$
(1
)
$
62
$
0.04
2015
Operating profit
Provision for income taxes(b)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (c)
$
11
$
(3
)
$
8
$
—
Restructuring and impairment charges (d)
$
(230
)
$
46
$
(184
)
$
(0.12
)
Charge related to the transaction with Tingyi (e)
$
(73
)
$
—
$
(73
)
$
(0.05
)
Pension-related settlement benefits (g)
$
67
$
(25
)
$
42
$
0.03
Venezuela impairment charges (i)
$
(1,359
)
$
—
$
(1,359
)
$
(0.91
)
Tax benefit (j)
$
—
$
230
$
230
$
0.15
Müller Quaker Dairy (MQD) impairment (k)
$
(76
)
$
28
$
(48
)
$
(0.03
)
Gain on beverage refranchising (l)
$
39
$
(11
)
$
28
$
0.02
Other productivity initiatives (m)
$
(90
)
$
24
$
(66
)
$
(0.04
)
Joint venture impairment charge (n)
$
(29
)
$
—
$
(29
)
$
(0.02
)
2014
Operating profit
Provision for income taxes(b)
Net income attributable to noncontrolling interests
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (c)
$
(68
)
$
24
$
—
$
(44
)
$
(0.03
)
Restructuring and impairment charges (d)
$
(418
)
$
99
$
3
$
(316
)
$
(0.21
)
Pension-related settlement charge (g)
$
(141
)
$
53
$
—
$
(88
)
$
(0.06
)
Venezuela remeasurement charge (o)
$
(105
)
$
—
$
—
$
(105
)
$
(0.07
)
Gain on sale of agricultural assets (p)
$
31
$
3
$
—
$
34
$
0.02
Other productivity initiatives (m)
$
(67
)
$
13
$
—
$
(54
)
$
(0.04
)
2013
Operating profit
Provision for income taxes(b)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (c)
$
(72
)
$
28
$
(44
)
$
(0.03
)
Restructuring and impairment charges (d)
$
(163
)
$
34
$
(129
)
$
(0.08
)
Tax benefit (j)
$
—
$
209
$
209
$
0.13
Venezuela remeasurement charge (o)
$
(111
)
$
—
$
(111
)
$
(0.07
)
Merger and integration charges (q)
$
(10
)
$
2
$
(8
)
$
(0.01
)
Gain on beverage refranchising (l)
$
137
$
—
$
137
$
0.09
2012
Operating profit
Interest expense
Provision for income taxes(b)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (c)
$
65
$
—
$
(24
)
$
41
$
0.03
Restructuring and impairment charges (d)
$
(279
)
$
—
$
64
$
(215
)
$
(0.14
)
Restructuring and other charges related to the transaction with Tingyi (e)
$
(150
)
$
—
$
(26
)
$
(176
)
$
(0.11
)
Pension-related settlement charge (g)
$
(195
)
$
—
$
64
$
(131
)
$
(0.08
)
Tax benefit (j)
$
—
$
—
$
217
$
217
$
0.14
Merger and integration charges (q)
$
(11
)
$
(5
)
$
4
$
(12
)
$
(0.01
)
(b)
Provision for income taxes is the expected tax benefit/charge on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax jurisdiction.
(c)
Mark-to-market net gains and losses on commodity hedges recorded in corporate unallocated expenses.
(d)
Recorded charges related to the 2014 Multi-Year Productivity Plan (2014 Productivity Plan) and 2012 Multi-Year Productivity Plan (2012 Productivity Plan). See Note 3 to our consolidated financial statements.
(e)
In 2016, recorded an impairment charge in the AMENA segment to reduce the value of our 5% indirect equity interest in Tingyi-Asahi Beverages Holding Co. Ltd. (TAB) to its estimated fair value. In 2015, recorded a write-off in the AMENA segment of the value of a call option to increase our holding in TAB to 20%. In 2012, recorded restructuring and other charges related to the transaction with Tingyi. See Note 9 to our consolidated financial statements.
(f)
In 2016, recorded a charge to interest expense, primarily representing the premium paid in accordance with the “make-whole” redemption provisions to redeem all of our outstanding 7.900% senior notes due 2018 and 5.125% senior notes due 2019 for the principal amounts of $1.5 billion and $750 million, respectively. See Note 8 to our consolidated financial statements.
(g)
In 2016, recorded a pension settlement charge in corporate unallocated expenses related to the purchase of a group annuity contract. In 2015, recognized benefits in the NAB segment associated with the settlement of pension-related liabilities from previous acquisitions. In 2014 and 2012, recorded lump sum settlement charges in corporate unallocated expenses related to payments for pension liabilities to certain former employees who had vested benefits.
(h)
Our fiscal 2016 results include the 53rd reporting week, the impact of which was fully offset by incremental investments in our business.
(i)
In 2015, recorded charges in the Latin America segment related to the impairment of investments in our wholly-owned Venezuelan subsidiaries and beverage joint venture. Beginning in the fourth quarter of 2015, our financial results have not included the results of our Venezuelan businesses. See Note 1 to our consolidated financial statements.
(j)
In 2015, recognized a non-cash tax benefit 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 2013, recognized a non-cash tax benefit 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. In 2012, recognized a non-cash tax benefit associated with a favorable tax court decision related to the classification of financial instruments.
(k)
In 2015, recognized impairment charges in the QFNA segment associated with our MQD joint venture investment, including a charge related to ceasing its operations.
(l)
In 2015, recognized a gain in the AMENA segment associated with refranchising a portion of our beverage businesses in India. In 2013, recognized a gain in connection with the refranchising of our beverage business in Vietnam, which was offset by incremental investments in our business.
(m)
Recorded charges related to other productivity initiatives outside the scope of the 2014 and 2012 Productivity Plans. See Note 3 to our consolidated financial statements.
(n)
In 2015, recorded an impairment charge in the AMENA segment associated with a joint venture in the Middle East.
(o)
In 2014, recorded a 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 2013, recorded a 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.
(p)
In 2014, recorded a gain in the ESSA segment associated with the sale of agricultural assets in Russia.
(q)
In 2013 and 2012, incurred merger and integration charges in the ESSA segment related to our acquisition of Wimm-Bill-Dann Foods OJSC.
Selected Quarterly Financial Data
Selected financial data for 2016 and 2015 is summarized as follows and highlights certain items that impacted our quarterly results (in millions except per share amounts, unaudited):
2016
2015
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Net revenue (a)
$
11,862
$
15,395
$
16,027
$
19,515
$
12,217
$
15,923
$
16,331
$
18,585
Gross profit
$
6,711
$
8,565
$
8,743
$
10,571
$
6,775
$
8,756
$
8,936
$
10,205
Operating profit
$
1,619
$
2,964
$
2,821
$
2,381
$
1,797
$
2,900
$
1,416
$
2,240
Mark-to-market net gains/(losses) (b)
$
46
$
100
$
(39
)
$
60
$
(1
)
$
39
$
(28
)
$
1
Restructuring and impairment charges (c)
$
(30
)
$
(49
)
$
(27
)
$
(54
)
$
(36
)
$
(25
)
$
(52
)
$
(117
)
Charges related to the transaction with Tingyi (d)
$
(373
)
—
—
—
—
—
$
(73
)
—
Charge related to debt redemption (e)
—
—
—
$
(233
)
—
—
—
—
Pension-related settlement (charge)/benefits (f)
—
—
—
$
(242
)
—
—
$
37
$
30
53rd reporting week (g)
—
—
—
$
126
—
—
—
—
Other productivity initiatives (h)
—
—
—
—
—
—
$
(44
)
$
(46
)
Venezuela impairment charges (i)
—
—
—
—
—
—
$
(1,359
)
—
Tax benefit (j)
—
—
—
—
—
—
—
$
230
MQD impairment (k)
—
—
—
—
$
(65
)
—
—
$
(11
)
Gain on beverage refranchising (l)
—
—
—
—
$
39
—
—
—
Joint venture impairment charge (m)
—
—
—
—
—
—
$
(29
)
—
Net income attributable to PepsiCo
$
931
$
2,005
$
1,992
$
1,401
$
1,221
$
1,980
$
533
$
1,718
Net income attributable to PepsiCo per common share
Basic
$
0.64
$
1.39
$
1.38
$
0.98
$
0.82
$
1.34
$
0.36
$
1.18
Diluted
$
0.64
$
1.38
$
1.37
$
0.97
$
0.81
$
1.33
$
0.36
$
1.17
Cash dividends declared per common share
$
0.7025
$
0.7525
$
0.7525
$
0.7525
$
0.655
$
0.7025
$
0.7025
$
0.7025
Stock price per share (n)
High
$
102.12
$
106.94
$
110.94
$
109.71
$
100.76
$
98.44
$
100.61
$
103.44
Low
$
93.25
$
100.00
$
101.30
$
98.50
$
92.24
$
92.72
$
76.48
$
90.43
(a)
Our fiscal 2016 results include a 53rd reporting week which increased 2016 net revenue by $657 million, including $294 million in our FLNA segment, $43 million in our QFNA segment, $300 million in our NAB segment and $20 million in our ESSA segment.
(b)
Mark-to-market net gains and losses on commodity hedges recorded in corporate unallocated expenses.
(c)
Recorded charges related to the 2014 and 2012 Productivity Plans. See Note 3 to our consolidated financial statements.
(d)
In 2016, recorded an impairment charge in the AMENA segment to reduce the value of our 5% indirect equity interest in TAB to its estimated fair value. In 2015, recorded a write-off in the AMENA segment of the value of a call option to increase our holding in TAB to 20%. See Note 9 to our consolidated financial statements.
(e)
In 2016, recorded a charge to interest expense, primarily representing the premium paid in accordance with the “make-whole” redemption provisions to redeem all of our outstanding 7.900% senior notes due 2018 and 5.125% senior notes due 2019 for the principal amounts of $1.5 billion and $750 million, respectively. See Note 8 to our consolidated financial statements.
(f)
In 2016, recorded a pension settlement charge in corporate unallocated expenses related to the purchase of a group annuity contract. In 2015, recognized benefits in the NAB segment associated with the settlement of pension-related liabilities from previous acquisitions.
(g)
Our fiscal 2016 results include the 53rd reporting week, the impact of which was fully offset by incremental investments in our business.
(h)
Recorded charges related to other productivity initiatives outside the scope of the 2014 and 2012 Productivity Plans. There were no material charges in 2016. See Note 3 to our consolidated financial statements.
(i)
In 2015, recorded charges in the Latin America segment related to the impairment of investments in our wholly-owned Venezuelan subsidiaries and beverage joint venture. Beginning in the fourth quarter of 2015, our financial results have not included the results of our Venezuelan businesses. See Note 1 to our consolidated financial statements.
(j)
In 2015, recognized a non-cash tax benefit 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.
(k)
In 2015, recognized impairment charges in the QFNA segment associated with our MQD joint venture investment, including a charge related to ceasing its operations.
(l)
In 2015, recognized a gain in the AMENA segment associated with refranchising a portion of our beverage businesses in India.
(m)
In 2015, recorded an impairment charge in the AMENA segment associated with a joint venture in the Middle East.
(n)
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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