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.
2019
2018
2017
2016
2015
Net revenue (a)
$
67,161
$
64,661
$
63,525
$
62,799
$
63,056
Operating profit
$
10,291
$
10,110
$
10,276
$
9,804
$
8,274
Provision for/(benefit from) income taxes (b)
$
1,959
$
(3,370
)
$
4,694
$
2,174
$
1,941
Net income attributable to PepsiCo (b)
$
7,314
$
12,515
$
4,857
$
6,329
$
5,452
Net income attributable to PepsiCo per common share – basic (b)
$
5.23
$
8.84
$
3.40
$
4.39
$
3.71
Net income attributable to PepsiCo per common share – diluted (b)
$
5.20
$
8.78
$
3.38
$
4.36
$
3.67
Cash dividends declared per common share
$
3.7925
$
3.5875
$
3.1675
$
2.96
$
2.7625
Total assets (c)
$
78,547
$
77,648
$
79,804
$
73,490
$
68,976
Long-term debt obligations
$
29,148
$
28,295
$
33,796
$
30,053
$
29,213
(a)
Our 2016 results included an extra week of results (53rd reporting week). 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 PBNA segment and $20 million in our Europe segment.
(b)
Our 2019, 2018 and 2017 results included the impact of the TCJ Act. Additionally, our 2018 results included other net tax benefits related to the reorganization of our international operations. See Note 5 to our consolidated financial statements for further information.
(c)
During the first quarter of 2019, we prospectively adopted the guidance requiring lessees to recognize most leases on the balance sheet. See Note 2 and Note 13 to our consolidated financial statements for further information.
The following information highlights certain items that impacted our results of operations and financial condition for the five years presented above:
2019
Operating profit
Other pension and retiree medical benefits expense
(Provision for)/benefit from income taxes**(d)**
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 (e)
$
112
$
—
$
(25
)
$
—
$
87
$
0.06
Restructuring and impairment charges (f)
$
(368
)
$
(2
)
$
67
$
5
$
(298
)
$
(0.21
)
Inventory fair value adjustments and merger and integration charges (g)
$
(55
)
$
—
$
8
$
—
$
(47
)
$
(0.03
)
Pension-related settlement charges (h)
$
—
$
(273
)
$
62
$
—
$
(211
)
$
(0.15
)
Net tax related to the TCJ Act (i)
$
—
$
—
$
8
$
—
$
8
$
0.01
Gains on sales of assets (j)
$
77
$
—
$
(19
)
$
—
$
58
$
0.04
2018
Operating profit
Other pension and retiree medical benefits income
Interest expense
Benefit from/(provision for) income taxes(d)
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 (e)
$
(163
)
$
—
$
—
$
38
$
—
$
(125
)
$
(0.09
)
Restructuring and impairment charges (f)
$
(272
)
$
(36
)
$
—
$
56
$
1
$
(251
)
$
(0.18
)
Merger and integration charges (g)
$
(75
)
$
—
$
—
$
—
$
—
$
(75
)
$
(0.05
)
Net tax related to the TCJ Act (i)
$
—
$
—
$
—
$
28
$
—
$
28
$
0.02
Other net tax benefits (k)
$
—
$
—
$
—
$
5,064
$
—
$
5,064
$
3.55
Charges related to cash tender and exchange offers (l)
$
—
$
—
$
(253
)
$
62
$
—
$
(191
)
$
(0.13
)
Tax reform bonus (m)
$
(87
)
$
—
$
—
$
21
$
—
$
(66
)
$
(0.05
)
Gains on beverage refranchising (n)
$
202
$
—
$
—
$
(30
)
$
—
$
172
$
0.12
Gains on sale of assets (j)
$
76
$
—
$
—
$
(19
)
$
—
$
57
$
0.04
2017
Operating profit
Other pension and retiree medical benefits income
(Provision for)/benefit from income taxes(d)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (e)
$
15
$
—
$
(7
)
$
8
$
0.01
Restructuring and impairment charges (f)
$
(229
)
$
(66
)
$
71
$
(224
)
$
(0.16
)
Provisional net tax related to the TCJ Act (i)
$
—
$
—
$
(2,451
)
$
(2,451
)
$
(1.70
)
Gain on sale of Britvic plc (Britvic) securities (o)
$
95
$
—
$
(10
)
$
85
$
0.06
Gain on beverage refranchising (n)
$
140
$
—
$
(33
)
$
107
$
0.07
Gain on sale of assets (j)
$
87
$
—
$
(25
)
$
62
$
0.04
2016
Operating profit
Other pension and retiree medical benefits expense
Interest expense
(Provision for)/benefit from income taxes(d)
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 (e)
$
167
$
—
$
—
$
(56
)
$
—
$
111
$
0.08
Restructuring and impairment charges (f)
$
(155
)
$
(5
)
$
—
$
26
$
3
$
(131
)
$
(0.09
)
Charge related to the transaction with Tingyi (p)
$
(373
)
$
—
$
—
$
—
$
—
$
(373
)
$
(0.26
)
Charge related to debt redemption (l)
$
—
$
—
$
(233
)
$
77
$
—
$
(156
)
$
(0.11
)
Pension-related settlement charge (h)
$
—
$
(242
)
$
—
$
80
$
—
$
(162
)
$
(0.11
)
53rd reporting week (q)
$
126
$
—
$
(19
)
$
(44
)
$
(1
)
$
62
$
0.04
2015
Operating profit
Other pension and retiree medical benefits income
(Provision for)/benefit from income taxes(d)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net impact (e)
$
11
$
—
$
(3
)
$
8
$
—
Restructuring and impairment charges (f)
$
(207
)
$
(23
)
$
46
$
(184
)
$
(0.12
)
Charge related to the transaction with Tingyi (p)
$
(73
)
$
—
$
—
$
(73
)
$
(0.05
)
Pension-related settlement benefits (h)
$
67
$
—
$
(25
)
$
42
$
0.03
Venezuela impairment charges (r)
$
(1,359
)
$
—
$
—
$
(1,359
)
$
(0.91
)
Tax benefit (k)
$
—
$
—
$
230
$
230
$
0.15
Müller Quaker Dairy (MQD) impairment (s)
$
(76
)
$
—
$
28
$
(48
)
$
(0.03
)
Gain on beverage refranchising (n)
$
39
$
—
$
(11
)
$
28
$
0.02
Other productivity initiatives (t)
$
(90
)
$
—
$
24
$
(66
)
$
(0.04
)
Joint venture impairment charge (u)
$
(29
)
$
—
$
—
$
(29
)
$
(0.02
)
(d)
Provision for/benefit from income taxes is the expected tax charge/benefit 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.
(e)
Mark-to-market net gains and losses on commodity derivatives in corporate unallocated expenses.
(f)
Expenses related to the 2019 Multi-Year Productivity Plan (2019 Productivity Plan), 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 for further discussion of our 2019 and 2014 Productivity Plans.
(g)
In 2019, inventory fair value adjustments and merger and integration charges primarily related to our acquisition of SodaStream. $46 million of this charge was recorded in our Europe segment, $7 million in our AMESA segment and $2 million in corporate unallocated expenses. In 2018, merger and integration charges related to our acquisition of SodaStream. $57 million of this charge was recorded in our Europe segment, with the balance recorded in corporate unallocated expenses. See Note 14 to our consolidated financial statements for further information.
(h)
In 2019, pension settlement charges of $220 million related to the purchase of a group annuity contract and settlement charges of $53 million related to one-time lump sum payments to certain former employees who had vested benefits, recorded in other pension and retiree medical benefits expense/income. See Note 7 to our consolidated financial statements for further information. In 2016, pension settlement charge related to the purchase of a group annuity contract. In 2015, benefits in the PBNA segment associated with the settlement of pension-related liabilities from previous acquisitions.
(i)
In 2019, 2018 and 2017, net tax related to the TCJ Act. See Note 5 to our consolidated financial statements for further information.
(j)
In 2019, gains associated with the sale of assets in the following segments: $31 million in FLNA and $46 million in PBNA. In 2018, gains associated with the sale of assets in the following segments: $64 million in PBNA and $12 million in AMESA. In 2017, gains associated with the sale of assets in the following segments: $17 million in FLNA, $21 million in PBNA, $21 million in AMESA and $28 million in corporate unallocated expenses.
(k)
In 2018, other net tax benefits of $4.3 billion resulting from the reorganization of our international operations, including the intercompany transfer of certain intangible assets. Also in 2018, non-cash tax benefits of $717 million associated with both the conclusion of certain international tax audits and our agreement with the IRS resolving all open matters related to the audits of taxable years 2012 and 2013. See Note 5 to our consolidated financial statements for further information. 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.
(l)
In 2018, interest expense in connection with our cash tender and exchange offers, primarily representing the tender price paid over the carrying value of the tendered notes. See Note 8 to our consolidated financial statements for further information. 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.
(m)
In 2018, bonus extended to certain U.S. employees related to the TCJ Act in the following segments: $44 million in FLNA, $2 million in QFNA and $41 million in PBNA.
(n)
In 2018, gains of $58 million and $144 million associated with refranchising our entire beverage bottling operations and snack distribution operations in Czech Republic, Hungary and Slovakia (CHS) in the Europe segment and refranchising a portion of our beverage business in Thailand in the APAC segment, respectively. In 2017, gain in the AMESA segment associated with refranchising a portion of our beverage business in Jordan. See Note 14 to our consolidated financial statements. In 2015, gain in the AMESA segment associated with refranchising a portion of our beverage businesses in India.
(o)
In 2017, gain in the Europe segment associated with the sale of our minority stake in Britvic.
(p)
In 2016, impairment charge in the APAC segment to reduce the value of our 5% indirect equity interest in KSF Beverage Holding Co., Ltd. (KSFB), formerly known as Tingyi-Asahi Beverages Holding Co. Ltd., to its estimated fair value. In 2015, write-off in the APAC segment of the value of a call option to increase our holding in KSFB to 20%.
(q)
Our 2016 results included the 53rd reporting week, the impact of which was fully offset by incremental investments in our business.
(r)
In 2015, charges in the LatAm 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.
(s)
In 2015, impairment charges in the QFNA segment associated with our MQD joint venture investment, including a charge related to ceasing its operations.
(t)
In 2015, expenses related to other productivity initiatives outside the scope of the 2014 and 2012 Productivity Plans.
(u)
In 2015, impairment charge in the AMESA segment associated with a joint venture in the Middle East.
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