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.
2017
2016
2015
2014
2013
Net revenue (a)
$
63,525
$
62,799
$
63,056
$
66,683
$
66,415
Operating profit
$
10,509
$
9,785
$
8,353
$
9,581
$
9,705
Provision for income taxes (b)
$
4,694
$
2,174
$
1,941
$
2,199
$
2,104
Net income attributable to PepsiCo (b)
$
4,857
$
6,329
$
5,452
$
6,513
$
6,740
Net income attributable to PepsiCo per common share – basic (b)
$
3.40
$
4.39
$
3.71
$
4.31
$
4.37
Net income attributable to PepsiCo per common share – diluted (b)
$
3.38
$
4.36
$
3.67
$
4.27
$
4.32
Cash dividends declared per common share
$
3.1675
$
2.96
$
2.7625
$
2.5325
$
2.24
Total assets
$
79,804
$
73,490
$
68,976
$
69,634
$
76,762
Long-term debt
$
33,796
$
30,053
$
29,213
$
23,821
$
24,333
(a)
Our fiscal 2016 results included 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.
(b)
Includes the provisional impact of the TCJ Act enacted in 2017. See Note 5 to our consolidated financial statements for additional information.
The following information highlights certain items that impacted our results of operations and financial condition for the five years presented above:
2017
Operating profit
Provision for income taxes(c)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (d)
$
15
$
(7
)
$
8
$
0.01
Restructuring and impairment charges (e)
$
(295
)
$
71
$
(224
)
$
(0.16
)
Provisional net tax expense related to the TCJ Act (f)
$
—
$
(2,451
)
$
(2,451
)
$
(1.70
)
Gain on sale of Britvic plc (Britvic) securities (g)
$
95
$
(10
)
$
85
$
0.06
Gain on beverage refranchising (h)
$
140
$
(33
)
$
107
$
0.07
Gain on sale of assets (i)
$
87
$
(25
)
$
62
$
0.04
2016
Operating profit
Interest expense
Provision for income taxes(c)
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 (d)
$
167
$
—
$
(56
)
$
—
$
111
$
0.08
Restructuring and impairment charges (e)
$
(160
)
$
—
$
26
$
3
$
(131
)
$
(0.09
)
Charge related to the transaction with Tingyi (j)
$
(373
)
$
—
$
—
$
—
$
(373
)
$
(0.26
)
Charge related to debt redemption (k)
$
—
$
(233
)
$
77
$
—
$
(156
)
$
(0.11
)
Pension-related settlement charge (l)
$
(242
)
$
—
$
80
$
—
$
(162
)
$
(0.11
)
53rd reporting week (m)
$
126
$
(19
)
$
(44
)
$
(1
)
$
62
$
0.04
2015
Operating profit
Provision for income taxes(c)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (d)
$
11
$
(3
)
$
8
$
—
Restructuring and impairment charges (e)
$
(230
)
$
46
$
(184
)
$
(0.12
)
Charge related to the transaction with Tingyi (j)
$
(73
)
$
—
$
(73
)
$
(0.05
)
Pension-related settlement benefits (l)
$
67
$
(25
)
$
42
$
0.03
Venezuela impairment charges (n)
$
(1,359
)
$
—
$
(1,359
)
$
(0.91
)
Tax benefit (o)
$
—
$
230
$
230
$
0.15
Müller Quaker Dairy (MQD) impairment (p)
$
(76
)
$
28
$
(48
)
$
(0.03
)
Gain on beverage refranchising (h)
$
39
$
(11
)
$
28
$
0.02
Other productivity initiatives (q)
$
(90
)
$
24
$
(66
)
$
(0.04
)
Joint venture impairment charge (r)
$
(29
)
$
—
$
(29
)
$
(0.02
)
2014
Operating profit
Provision for income taxes(c)
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 (d)
$
(68
)
$
24
$
—
$
(44
)
$
(0.03
)
Restructuring and impairment charges (e)
$
(418
)
$
99
$
3
$
(316
)
$
(0.21
)
Pension-related settlement charge (l)
$
(141
)
$
53
$
—
$
(88
)
$
(0.06
)
Venezuela remeasurement charge (s)
$
(105
)
$
—
$
—
$
(105
)
$
(0.07
)
Gain on sale of assets (i)
$
31
$
3
$
—
$
34
$
0.02
Other productivity initiatives (q)
$
(67
)
$
13
$
—
$
(54
)
$
(0.04
)
2013
Operating profit
Provision for income taxes(c)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (d)
$
(72
)
$
28
$
(44
)
$
(0.03
)
Restructuring and impairment charges (e)
$
(163
)
$
34
$
(129
)
$
(0.08
)
Tax benefit (o)
$
—
$
209
$
209
$
0.13
Venezuela remeasurement charge (s)
$
(111
)
$
—
$
(111
)
$
(0.07
)
Merger and integration charges (t)
$
(10
)
$
2
$
(8
)
$
(0.01
)
Gain on beverage refranchising (h)
$
137
$
—
$
137
$
0.09
(c)
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 and tax year and, in 2017, the impact of the TCJ Act is presented separately.
(d)
Mark-to-market net gains and losses on commodity derivatives in corporate unallocated expenses.
(e)
Expenses 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.
(f)
In 2017, provisional net tax expense associated with the enactment of the TCJ Act. See Note 5 to our consolidated financial statements.
(g)
In 2017, gain in the ESSA segment associated with the sale of our minority stake in Britvic.
(h)
In 2017, gain in the AMENA segment associated with refranchising our beverage business in Jordan. See Note 14 to our consolidated financial statements. In 2015 and 2013, gains in the AMENA segment associated with refranchising a portion of our beverage businesses in India and the refranchising of our beverage business in Vietnam, respectively.
(i)
In 2017, gains associated with the sale of assets in the following segments: $17 million in FLNA, $21 million in NAB, $21 million in AMENA and $28 million in corporate unallocated expenses. In 2014, gain in the ESSA segment associated with the sale of agricultural assets in Russia.
(j)
In 2016, 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, 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.
(k)
In 2016, 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.
(l)
In 2016, pension settlement charge in corporate unallocated expenses related to the purchase of a group annuity contract. In 2015, benefits in the NAB segment associated with the settlement of pension-related liabilities from previous acquisitions. In 2014, lump sum settlement charges in corporate unallocated expenses related to payments for pension liabilities to certain former employees who had vested benefits.
(m)
Our fiscal 2016 results included the 53rd reporting week, the impact of which was fully offset by incremental investments in our business.
(n)
In 2015, 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.
(o)
In 2015, 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, 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.
(p)
In 2015, impairment charges in the QFNA segment associated with our MQD joint venture investment, including a charge related to ceasing its operations.
(q)
In 2015 and 2014, expenses related to other productivity initiatives outside the scope of the 2014 and 2012 Productivity Plans.
(r)
In 2015, impairment charge in the AMENA segment associated with a joint venture in the Middle East.
(s)
In 2014, net charge related to our remeasurement of the bolivar for certain net monetary assets of our Venezuelan businesses. $126 million of this charge was in corporate unallocated expenses, with the balance (equity income of $21 million) in our Latin America segment. In 2013, net charge related to the devaluation of the bolivar for our Venezuelan businesses. $124 million of this charge was in corporate unallocated expenses, with the balance (equity income of $13 million) in our Latin America segment.
(t)
In 2013, merger and integration charges in the ESSA segment related to our acquisition of WBD.
Selected Quarterly Financial Data
Selected financial data for 2017 and 2016 is summarized as follows and highlights certain items that impacted our quarterly results (in millions except per share amounts, unaudited):
2017
2016
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Net revenue (a)
$
12,049
$
15,710
$
16,240
$
19,526
$
11,862
$
15,395
$
16,027
$
19,515
Gross profit
$
6,763
$
8,654
$
8,874
$
10,449
$
6,711
$
8,565
$
8,743
$
10,571
Operating profit
$
1,933
$
2,990
$
2,993
$
2,593
$
1,619
$
2,964
$
2,821
$
2,381
Mark-to-market net impact (b)
$
(14
)
$
(26
)
$
27
$
28
$
46
$
100
$
(39
)
$
60
Restructuring and impairment charges (c)
$
(27
)
$
(34
)
$
(8
)
$
(226
)
$
(30
)
$
(49
)
$
(27
)
$
(54
)
Provisional net tax expense related to the TCJ Act (d)
—
—
—
$
(2,451
)
—
—
—
—
Gain on sale of Britvic securities (e)
—
—
$
95
—
—
—
—
—
—
—
Gain on beverage refranchising (f)
—
—
—
—
—
$
140
—
—
—
—
Gain on sale of assets (g)
—
—
$
21
$
66
—
—
—
—
Charge related to the transaction with Tingyi (h)
—
—
—
—
$
(373
)
—
—
—
Charge related to debt redemption (i)
—
—
—
—
—
—
—
$
(233
)
Pension-related settlement charge (j)
—
—
—
—
—
—
—
$
(242
)
53rd reporting week (k)
—
—
—
—
—
—
—
$
126
Provision for income taxes (l)
$
392
$
656
$
620
$
3,026
$
442
$
718
$
600
$
414
Net income/(loss) attributable to PepsiCo (l)
$
1,318
$
2,105
$
2,144
$
(710
)
$
931
$
2,005
$
1,992
$
1,401
Net income/(loss) attributable to PepsiCo per common share (l)
Basic
$
0.92
$
1.47
$
1.50
$
(0.50
)
$
0.64
$
1.39
$
1.38
$
0.98
Diluted
$
0.91
$
1.46
$
1.49
$
(0.50
)
$
0.64
$
1.38
$
1.37
$
0.97
Cash dividends declared per common share
$
0.7525
$
0.805
$
0.805
$
0.805
$
0.7025
$
0.7525
$
0.7525
$
0.7525
Stock price per share (m)
High
$
112.38
$
118.12
$
119.39
$
120.57
$
102.12
$
106.94
$
110.94
$
109.71
Low
$
101.06
$
111.34
$
112.25
$
106.19
$
93.25
$
100.00
$
101.30
$
98.50
(a)
Our fiscal 2016 results included 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 derivatives in corporate unallocated expenses.
(c)
Expenses related to the 2014 and 2012 Productivity Plans. See Note 3 to our consolidated financial statements.
(d)
In 2017, provisional net tax expense associated with the enactment of the TCJ Act. See Note 5 to our consolidated financial statements.
(e)
In 2017, gain in the ESSA segment associated with the sale of our minority stake in Britvic. See Note 9 to our consolidated financial statements.
(f)
In 2017, gain in the AMENA segment associated with refranchising our beverage business in Jordan. See Note 14 to our consolidated financial statements.
(g)
In 2017, gains associated with the sale of assets in the following segments: $17 million in FLNA, $21 million in NAB, $21 million in AMENA and $28 million in corporate unallocated expenses.
(h)
In 2016, impairment charge in the AMENA segment to reduce the value of our 5% indirect equity interest in TAB to its estimated fair value. See Note 9 to our consolidated financial statements.
(i)
In 2016, 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.
(j)
In 2016, pension settlement charge in corporate unallocated expenses related to the purchase of a group annuity contract.
(k)
Our fiscal 2016 results included the 53rd reporting week, the impact of which was fully offset by incremental investments in our business.
(l)
Includes the provisional impact of the TCJ Act enacted in the fourth quarter of 2017. See Note 5 to our consolidated financial statements for additional information.
(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 from December 27, 2015 through December 19, 2017 and The Nasdaq Global Select Market from December 20, 2017 through December 30, 2017.
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