0001087835
us-gaap:ParentMember
2009-09-05
0001087835
us-gaap:NoncontrollingInterestMember
2009-09-05
0001087835
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-09-05
0001087835
bgllc:OwnersNetInvestmentMember
2009-09-05
0001087835
us-gaap:ParentMember
2008-12-27
0001087835
us-gaap:NoncontrollingInterestMember
2008-12-27
0001087835
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-12-27
0001087835
bgllc:OwnersNetInvestmentMember
2008-12-27
0001087835
us-gaap:ParentMember
2008-09-06
0001087835
us-gaap:NoncontrollingInterestMember
2008-09-06
0001087835
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-09-06
0001087835
bgllc:OwnersNetInvestmentMember
2008-09-06
0001087835
us-gaap:ParentMember
2007-12-29
0001087835
us-gaap:NoncontrollingInterestMember
2007-12-29
0001087835
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2007-12-29
0001087835
bgllc:OwnersNetInvestmentMember
2007-12-29
0001087835
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-12-28
2009-09-05
0001087835
us-gaap:ComprehensiveIncomeMember
2008-12-28
2009-09-05
0001087835
us-gaap:ComprehensiveIncomeMember
2007-12-30
2008-09-06
0001087835
2008-09-06
0001087835
2007-12-29
0001087835
2008-06-13
0001087835
2009-09-05
0001087835
2008-12-27
0001087835
2009-06-14
2009-09-05
0001087835
2008-06-15
2008-09-06
0001087835
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2007-12-30
2008-09-06
0001087835
us-gaap:ParentMember
2007-12-30
2008-09-06
0001087835
us-gaap:NoncontrollingInterestMember
2007-12-30
2008-09-06
0001087835
bgllc:OwnersNetInvestmentMember
2007-12-30
2008-09-06
0001087835
2007-12-30
2008-09-06
0001087835
us-gaap:NoncontrollingInterestMember
2008-12-28
2009-09-05
0001087835
us-gaap:ParentMember
2008-12-28
2009-09-05
0001087835
bgllc:OwnersNetInvestmentMember
2008-12-28
2009-09-05
0001087835
2008-12-28
2009-09-05
xbrli:shares
iso4217:USD
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 1 - us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left">
</div>
<!-- xbrl,ns -->
<div align="left" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Note 1—Basis of Presentation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Bottling Group, LLC (referred to as “Bottling LLC,” “we,” “our,” “us” and the “Company”) is
the principal operating subsidiary of The Pepsi Bottling Group, Inc. (“PBG”) and consists of
substantially all of the operations and assets of PBG. We have the exclusive right to manufacture,
sell and distribute Pepsi-Cola beverages, in all or a portion of the United States, Mexico, Canada,
Spain, Russia, Greece and Turkey.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We prepare our unaudited Condensed Consolidated Financial Statements in conformity with
accounting principles generally accepted in the United States of America, which requires us to make
judgments, estimates and assumptions that affect the results of operations, financial position and
cash flows, as well as the related footnote disclosures. We evaluate our estimates on an ongoing
basis using our historical experience as well as other factors we believe appropriate under the
circumstances, such as current economic conditions, and adjust or revise our estimates as
circumstances change. As future events and their effect cannot be determined with precision,
actual results may differ from these estimates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     These interim financial statements have been prepared in conformity with the instructions to
Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly,
they do not include certain information and disclosures required for comprehensive annual financial
statements. Therefore, the Condensed Consolidated Financial Statements should be read in
conjunction with the audited consolidated financial statements for the fiscal year ended December
27, 2008 as presented in our Current Report on Form 8-K dated September 16, 2009. In the opinion
of management, this interim information includes all material adjustments, which are of a normal
and recurring nature, necessary for a fair presentation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our U.S. and Canadian operations report using a fiscal year that consists of 52 weeks, ending
on the last Saturday in December. Every five or six years a 53rd week is added. Fiscal years 2009
and 2008 consist of 52 weeks. Our remaining countries report on a calendar-year basis.
Accordingly, we recognize our quarterly business results as outlined below:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="30%"> </td>
<td width="5%"> </td>
<td width="30%"> </td>
<td width="5%"> </td>
<td width="30%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Quarter</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>U.S. & Canada</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Mexico & Europe</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td align="center" valign="top">
<div style="margin-left:15px; text-indent:-15px">First Quarter
</div></td>
<td> </td>
<td align="center" valign="top">12 weeks
</td>
<td> </td>
<td align="center" valign="top">January and February</td>
</tr>
<tr valign="bottom">
<td align="center" valign="top">Second Quarter
</td>
<td> </td>
<td align="center" valign="top">12 weeks
</td>
<td> </td>
<td align="center" valign="top">March, April and May</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center" valign="top">Third Quarter
</td>
<td> </td>
<td align="center" valign="top">12 weeks
</td>
<td> </td>
<td align="center" valign="top">June, July and August</td>
</tr>
<tr valign="bottom">
<td align="center" valign="top">Fourth Quarter
</td>
<td> </td>
<td align="center" valign="top">16 weeks
</td>
<td> </td>
<td align="center" valign="top">September, October, November and December</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In preparation of these financial statements, we have evaluated and assessed all events
occurring subsequent to the third quarter end and through October 9, 2009, which is the date our
financial statements were issued.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In conjunction with PBG’s initial public offering and other subsequent transactions, PBG and
PepsiCo, Inc. (“PepsiCo”) contributed bottling businesses and assets used in the bottling
businesses to Bottling LLC. As a result of the contribution of these assets, PBG owns 93.4 percent
of Bottling LLC and PepsiCo owns the remaining 6.6 percent as of September 5, 2009. In addition,
PepsiCo has a 40 percent ownership interest in PR Beverages Limited (“PR Beverages”), a
consolidated venture for our Russian operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We consolidate in our financial statements entities in which we have a controlling financial
interest, as well as variable interest entities for which we are the primary beneficiary.
Noncontrolling interests in earnings and ownership has been recorded for the percentage of these
entities not owned by Bottling LLC. We have eliminated all intercompany accounts and transactions
in consolidation.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - bgllc:SeasonalityOfBusinessTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 2—Seasonality of Business</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The results for the third quarter are not necessarily indicative of the results that may be
expected for the full year because sales of our products are seasonal. The seasonality of our
operating results arises from higher sales in the second and third quarters versus the first and
fourth quarters of the year, combined with the impact of fixed costs, such as depreciation and
interest, which are not significantly impacted by business seasonality. From a cash flow
perspective, the majority of our cash flow from operations is generated in the third and fourth
quarters.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - us-gaap:AccountingChangesAndErrorCorrectionsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 3—New Accounting Standards</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>SFAS No. 141(R) as amended</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In December 2007, the Financial Accounting Standards Board (“FASB”) issued Statement of
Financial Accounting Standards (“SFAS”) No. 141(revised 2007), “Business Combinations” (“SFAS
141(R)”), which addresses the accounting and disclosure for identifiable assets acquired,
liabilities assumed, and noncontrolling interests in a business combination. In April 2009, the
FASB issued FASB Staff Position No. FAS 141(R)-1, “Accounting for Assets Acquired and Liabilities
Assumed in a Business Combination That Arise from Contingencies” (“FSP FAS 141(R)-1”), which
amended certain provisions of SFAS 141(R) related to the recognition, measurement, and disclosure
of assets acquired and liabilities assumed in a business combination that arise from contingencies.
SFAS 141(R) and FSP FAS 141(R)-1 became effective in 2009, and did not have a material impact on
our Condensed Consolidated Financial Statements, but will continue to be evaluated on the outcome
of future matters.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>SFAS No. 160</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated
Financial Statements, an amendment of ARB No. 51” (“SFAS 160”), which addresses the accounting and
reporting framework for noncontrolling interests by a parent company. SFAS 160 also addresses
disclosure requirements to distinguish between interests of the parent and interests of the
noncontrolling owners of a subsidiary. SFAS 160 became effective in the first quarter of 2009.
The provisions of SFAS 160 require that minority interest be renamed noncontrolling interests and
that a company present a consolidated net income measure that includes the amount attributable to
such noncontrolling interests for all periods presented. In addition, SFAS 160 requires reporting
noncontrolling interests as a component of equity in our Condensed Consolidated Balance Sheets and
below income tax expense in our Condensed Consolidated Statements of Operations. As required by
SFAS 160, we have retrospectively applied the presentation to our prior year balances in our
Condensed Consolidated Financial Statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>SFAS No. 161</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and
Hedging Activities, an amendment of FASB Statement No. 133” (“SFAS 161”), which requires enhanced
disclosures for derivative and hedging activities. SFAS 161 became effective in the first quarter
of 2009. See Note 8 for required disclosure.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>FSP FAS 132(R)-1</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In December 2008, the FASB issued FASB Staff Position No. SFAS 132(revised 2003)-1,
“Employers’ Disclosures about Postretirement Benefit Plan Assets” (“FSP FAS 132(R)-1”), which
requires employers to disclose information about fair value measurements of plan assets that are
similar to the disclosures about fair value measurements required by SFAS No. 157, “Fair Value
Measurements” (“SFAS 157”). FSP FAS 132(R)-1 will become effective for our annual financial
statements for 2009. We are currently evaluating the impact of this standard on our Consolidated
Financial Statements.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>FSP FAS 107-1 and APB 28-1</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, the FASB issued FASB Staff Position No. SFAS 107-1 and APB No. 28-1, “Interim
Disclosures about Fair Value of Financial Instruments” (“FSP FAS 107-1 and APB 28-1”), which
requires quarterly disclosure of information about the fair value of financial instruments within
the scope of FASB Statement No. 107, “Disclosures about Fair Value of Financial Instruments.” FSP
FAS 107-1 and APB 28-1 has an effective date requiring adoption by the third quarter of 2009 with
early adoption permitted. We adopted the provisions of FSP FAS 107-1 and APB 28-1 in the first
quarter of 2009. See Note 7 for required disclosures.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>SFAS No. 165</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In May 2009, the FASB issued SFAS No. 165, “Subsequent Events” (“SFAS 165”), which sets forth
general standards of accounting for and disclosure of events that occur after the balance sheet
date but before financial statements are issued or are available to be issued. SFAS 165 became
effective in the third quarter of 2009 and did not have a material impact on our Consolidated
Financial Statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>SFAS No. 167</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB issued SFAS No. 167, “Amendments to FASB Interpretation No. 46(R)”
(“SFAS 167”), which amends FASB Interpretation No. 46(revised December 2003) to address the
elimination of the concept of a qualifying special purpose entity. SFAS 167 also replaces the
quantitative-based risks and rewards calculation for determining which enterprise has a controlling
financial interest in a variable interest entity with an approach focused on identifying which
enterprise has the power to direct the activities of a variable interest entity and the obligation
to absorb losses of the entity or the right to receive benefits from the entity. Additionally,
SFAS 167 provides more timely and useful information about an enterprise’s involvement with a
variable interest entity. SFAS 167 will become effective in the first quarter of 2010. We are
currently evaluating the impact of this standard on our Consolidated Financial Statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>SFAS No. 168</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB issued SFAS No. 168, “The <i>FASB Accounting Standards
Codification</i><sup style="font-size: 85%; vertical-align: text-top">TM</sup> and the Hierarchy of Generally Accepted Accounting Principles, a
replacement of FASB Statement No. 162” (“SFAS 168”), which establishes the FASB Accounting
Standards Codification as the source of authoritative accounting principles recognized by the FASB
to be applied in the preparation of financial statements in conformity with generally accepted
accounting principles. SFAS 168 explicitly recognizes rules and interpretive releases of the
Securities and Exchange Commission (“SEC”) under federal securities laws as authoritative GAAP for
SEC registrants. SFAS 168 will become effective in the fourth quarter of 2009 and will require the
Company to update all existing GAAP references to the new codification references for all future
filings.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 4—Share-Based Compensation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The total impact of share-based compensation recognized in the Condensed Consolidated
Statements of Operations was $14 million and $13 million for the 12 week periods ended September 5,
2009 and September 6, 2008, respectively, and $40 million and $40 million for the 36 week periods
ended September 5, 2009 and September 6, 2008, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the 36 weeks ended September 5, 2009 and September 6, 2008, we granted 6 million and 3
million of PBG stock option awards at a weighted-average fair value of $4.55 and $7.12,
respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the 36 weeks ended September 5, 2009 and September 6, 2008, we granted 2 million and 1
million of PBG restricted stock unit awards at a weighted-average fair value of $18.82 and $35.33,
respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Unrecognized compensation cost related to nonvested share-based compensation arrangements
granted under the incentive plans amounted to $88 million as of September 5, 2009. That cost is
expected to be recognized over a weighted-average period of 2.0 years.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - bgllc:BalanceSheetDetailsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 5—Balance Sheet Details</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>27, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Accounts Receivable, net</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Trade accounts receivable
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,758</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,208</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Allowance for doubtful accounts
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(70</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(71</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accounts receivable from PepsiCo
</div></td>
<td> </td>
<td> </td>
<td align="right">237</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">154</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other receivables
</div></td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">80</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,985</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,371</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Inventories</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Raw materials and supplies
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">227</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">185</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Finished goods
</div></td>
<td> </td>
<td> </td>
<td align="right">440</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">343</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">667</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">528</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Prepaid Expenses and Other Current Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Prepaid expenses
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">195</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">187</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued interest receivable from PBG
</div></td>
<td> </td>
<td> </td>
<td align="right">55</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">118</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">62</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">312</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">337</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Property, Plant and Equipment, net</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Land
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">305</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">300</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Buildings and improvements
</div></td>
<td> </td>
<td> </td>
<td align="right">1,663</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,542</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Manufacturing and distribution equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">4,060</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,999</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Marketing equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">2,208</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,246</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Capital leases
</div></td>
<td> </td>
<td> </td>
<td align="right">45</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">141</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">139</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">8,422</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,249</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated depreciation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,580</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,380</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,842</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,869</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Other Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Note receivable from noncontrolled affiliate
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">79</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">76</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">108</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">155</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">108</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Note Receivable from Noncontrolled Affiliate</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first quarter of 2009, we issued a ruble-denominated three-year note with an
interest rate of 10.0 percent (“Note receivable from noncontrolled affiliate”) to JSC Lebedyansky
(“Lebedyansky”), a consolidated subsidiary of PepsiCo and a noncontrolled affiliate of Bottling
LLC, valued at $79 million on September 5, 2009. This funding was contemplated as part of the
initial capitalization of the purchase of Lebedyansky between PepsiCo and us. This note receivable
is recorded in other assets in our Condensed Consolidated Balance Sheets.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>27, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Accounts Payable and Other Current Liabilities</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accounts payable
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">613</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">444</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accounts payable to PepsiCo
</div></td>
<td> </td>
<td> </td>
<td align="right">324</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">217</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Trade incentives
</div></td>
<td> </td>
<td> </td>
<td align="right">253</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">189</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued compensation and benefits
</div></td>
<td> </td>
<td> </td>
<td align="right">254</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">240</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other accrued taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">130</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">128</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued interest
</div></td>
<td> </td>
<td> </td>
<td align="right">93</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">62</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other current liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">378</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">249</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,045</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,529</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 6—Other Intangible Assets, net and Goodwill</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The components of other intangible assets are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>27, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Intangibles subject to amortization</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Gross carrying amount
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Customer relationships and lists
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">47</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">45</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Franchise and distribution rights
</div></td>
<td> </td>
<td> </td>
<td align="right">79</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Other identified intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">155</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">120</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accumulated amortization
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Customer relationships and lists
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Franchise and distribution rights
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(31</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other identified intangibles
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(61</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(67</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangibles subject to amortization, net
</div></td>
<td> </td>
<td> </td>
<td align="right">94</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Intangibles not subject to amortization</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Carrying amount
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Franchise rights
</div></td>
<td> </td>
<td> </td>
<td align="right">3,371</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,244</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Licensing rights
</div></td>
<td> </td>
<td> </td>
<td align="right">315</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">315</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Distribution rights
</div></td>
<td> </td>
<td> </td>
<td align="right">51</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">49</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Brands
</div></td>
<td> </td>
<td> </td>
<td align="right">40</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Other identified intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Intangibles not subject to amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">3,829</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,698</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total other intangible assets, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,923</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,751</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first quarter of 2009, we acquired distribution rights for certain energy drinks in
the United States and Canada and protein-enhanced functional beverages in the United States. As a
result of these acquisitions, we recorded approximately $36 million of amortizable distribution
rights, with a weighted-average amortization period of 10 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the second quarter, we acquired a Pepsi-Cola and Dr Pepper franchise bottler serving
portions of central Texas. As a result of this acquisition we recorded approximately $56 million
of non-amortizable franchise rights and $8 million of non-compete agreements, with a
weighted-average amortization period of 10 years.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the third quarter, we acquired a Pepsi-Cola franchise bottler serving northeastern
Massachusetts. As a result of this acquisition we recorded approximately $24 million of
non-amortizable franchise rights and $1 million of non-compete agreements, with a weighted-average
amortization period of 10 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Intangible asset amortization</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Intangible asset amortization expense was $3 million for both the 12 weeks ended September 5,
2009 and September 6, 2008. Intangible asset amortization expense was $7 million for both the 36
weeks ended September 5, 2009 and September 6, 2008. Amortization expense for each of the next
five years is estimated to be approximately $11 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Goodwill</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The changes in the carrying value of goodwill by reportable segment for the 36 weeks ended
September 5, 2009 are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>U.S. &</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Canada</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Europe</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Mexico</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at December 27, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,434</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,235</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">173</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchase price allocations relating to acquisitions
</div></td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact of foreign currency translation
</div></td>
<td> </td>
<td> </td>
<td align="right">40</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at September 5, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,480</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,273</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">180</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 7—Fair Value Measurements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We adopted SFAS 157 at the beginning of the 2008 fiscal year for all financial instruments
valued on a recurring basis, at least annually. Additionally, beginning in the first quarter of
2009, in accordance with the provisions of FASB Staff Position No. 157-2, “Effective Date of FASB
Statement No. 157” (“FSP 157-2”) we now apply SFAS 157 to financial and nonfinancial assets and
liabilities. FSP 157-2 delayed the effective date of SFAS 157 for nonfinancial assets and
liabilities, except for certain items that are recognized or disclosed at fair value in the
financial statements on a recurring basis. In accordance with SFAS 157, we have categorized our
assets and liabilities that are measured at fair value into a three-level fair value hierarchy as
set forth below. If the inputs used to measure fair value fall within different levels of the
hierarchy, the categorization is based on the lowest level input that is significant to the fair
value measurement. The three levels of the hierarchy are defined as follows:
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">     <i>Level 1 </i>— Unadjusted quoted prices in active markets for identical assets or liabilities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">     <i>Level 2 — </i>Observable inputs other than quoted prices included in Level 1, such as quoted
prices for identical assets and liabilities in non-active markets, quoted prices for similar
assets or liabilities in active markets and inputs other than quoted prices that are observable
for substantially the full term of the asset or liability.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">     <i>Level 3 </i>— Unobservable inputs reflecting management’s own assumptions about the input used
in pricing the asset or liability.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the financial assets and liabilities we measure at fair value
on a recurring basis as of September 5, 2009 and December 27, 2008:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Level 2</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>27, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Financial Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity <sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">34</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts <sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Prepaid forward contract <sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">21</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swaps <sup style="font-size: 85%; vertical-align: text-top">(3)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">55</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">34</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Financial Liabilities</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity <sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency contracts <sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swaps <sup style="font-size: 85%; vertical-align: text-top">(3)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">75</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">64</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Based primarily on the forward rates of the specific indices upon which the contract
settlement is based.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>Based primarily on the value of PBG’s stock price.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td>
<td> </td>
<td>Based primarily on the London Inter-Bank Offer Rate (“LIBOR”) index.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Other Financial Assets and Liabilities</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Financial assets with carrying values approximating fair value include cash and cash
equivalents and accounts receivable. Financial liabilities with carrying values approximating fair
value include accounts payable and other accrued liabilities and short-term debt. The carrying
value of these financial assets and liabilities approximates fair value due to their short
maturities and due to their interest rates approximating current market rates for short-term debt.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Long-term debt, which includes the current maturities of long-term debt, at September 5, 2009,
had a carrying value and fair value of $4.5 billion and $5.0 billion, respectively, and at December
27, 2008, had a carrying value and fair value of $5.1 billion and $5.3 billion, respectively. The
fair value is based on interest rates that are currently available to us for issuance of debt with
similar terms and remaining maturities.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 8</b>—<b>Financial Instruments and Risk Management</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We are subject to the risk of loss arising from adverse changes in commodity prices, foreign
currency exchange rates, interest rates and PBG’s stock price. In the normal course of business,
we manage these risks through a variety of strategies, including the use of derivatives. Our
corporate policy prohibits the use of derivative instruments for trading or speculative purposes,
and we have procedures in place to monitor and control their use.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     All derivative instruments are recorded at fair value as either assets or liabilities in our
Condensed Consolidated Balance Sheets. Derivative instruments are generally designated and
accounted for under SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities”
(“SFAS 133”) as either a hedge of a recognized asset or liability (“fair value hedge”) or a hedge
of a forecasted transaction (“cash flow hedge”). Certain of these derivatives are not designated
as hedging instruments under SFAS 133 and are used as “economic hedges” to manage certain risks in
our business.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We are exposed to counterparty credit risk on all of our derivative financial instruments. We
have established and maintained counterparty credit guidelines and enter into transactions only
with financial institutions of investment grade or better. We monitor our counterparty credit risk
and utilize numerous counterparties to minimize our exposure to potential defaults. We do not
require collateral under these agreements.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For derivative instruments that are designated and qualify as a cash flow hedge, the effective
portion of the change in the fair value of a derivative instrument is deferred in accumulated other
comprehensive loss (“AOCL”) until the underlying hedged item is recognized in earnings. The
derivative gain or loss recognized in earnings is recorded consistent with the expense
classification of the underlying hedged item. The ineffective portion of a fair value change on a
qualifying cash flow hedge is recognized in earnings immediately.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Derivative instruments that are not designated as hedging instruments under SFAS 133, but are
used as economic hedges to manage certain risks in our business, are marked to market on a periodic
basis and recognized currently in earnings consistent with the expense classification of the
underlying hedged item.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Commodity — We use forward and option contracts to hedge the risk of adverse movements in
commodity prices related primarily to anticipated purchases of raw materials and energy used in our
operations. These contracts generally range from one to 24 months in duration. Our open commodity
derivative contracts that qualify for cash flow hedge accounting have a notional value, based on
the contract price, of $336 million as of September 5, 2009. Our open commodity derivative
contracts that act as economic hedges but do not qualify for hedge accounting have a notional
value, based on the contract price, of $8 million as of September 5, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Foreign Currency — We are subject to foreign currency transactional risks in certain of our
international territories primarily for the purchase of commodities that are denominated in
currencies that are different from their functional currency. We enter into forward contract
agreements to hedge a portion of this foreign currency risk. These contracts generally range from
one to 24 months in duration. Our open foreign currency derivative contracts that qualify for
cash flow hedge accounting have a notional value, based on the contract price, of $89 million as of
September 5, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have foreign currency derivative contracts that act as economic hedges, which have a
notional value, based on the contract price, of $47 million as of September 5, 2009. Additionally,
we fair value certain vendor and customer contracts that have embedded foreign currency derivative
components. These contracts generally range from one year to three years and as of September 5,
2009, have a notional value, based on the contract price, of $13 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Interest — We have entered into treasury rate lock agreements to hedge against adverse
interest rate changes relating to the issuance of certain fixed rate debt financing arrangements.
Gains and losses from these treasury rate lock agreements that are considered effective are
deferred in AOCL and amortized to interest expense over the duration of the debt term. The Company
has a $3 million net deferred gain in AOCL related to these instruments, which will be amortized
over the next seven years. For the 36 weeks ended September 5, 2009, we recognized, in interest
expense, a loss of $0.3 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We effectively converted $1.25 billion of our fixed-rate debt to floating-rate debt through
the use of interest rate swaps with the objective of reducing our overall borrowing costs. These
interest rate swaps meet the criteria for fair value hedge accounting and are assumed to be 100
percent effective in eliminating the market-rate risk inherent in our long-term debt. Accordingly,
any gain or loss associated with these swaps is fully offset by the opposite market impact on the
related debt and recognized currently in earnings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Unfunded Deferred Compensation Liability — Our unfunded deferred compensation liability is
subject to changes in PBG’s stock price as well as price changes in other equity and fixed-income
investments. We use prepaid forward contracts to hedge the portion of our deferred compensation
liability that is based on PBG’s stock price. At September 5, 2009, we had a prepaid forward
contract for 585,000 shares of PBG’s stock.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Balance Sheet Classification</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following summarizes the fair values and location in our Condensed Consolidated Balance Sheet of all derivatives held by the Company as of September 5, 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="39%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="38%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center"><b>Derivatives Designated as Hedging</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Instruments under SFAS 133</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Balance Sheet Classification</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td colspan="3" align="left">Prepaid expenses and other current assets</td>
<td> </td>
<td align="left">$</td>
<td align="right">24</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td colspan="3" align="left">Other assets</td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">34</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency
</div></td>
<td> </td>
<td colspan="3" align="left">Accounts payable and other current liabilities</td>
<td> </td>
<td align="left">$</td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td colspan="3" align="left" nowrap="nowrap">Accounts payable and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td colspan="3" align="left">Other liabilities</td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swaps
</div></td>
<td> </td>
<td colspan="3" align="left">Other liabilities</td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">70</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="39%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="38%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center"><b>Derivatives Not Designated as Hedging</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Instruments under SFAS 133</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Balance Sheet Classification</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Prepaid forward contract
</div></td>
<td> </td>
<td colspan="3" align="left">Prepaid expenses and other current assets</td>
<td> </td>
<td align="left">$</td>
<td align="right">21</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency
</div></td>
<td> </td>
<td colspan="3" align="left">Accounts payable and other current liabilities</td>
<td> </td>
<td align="left">$</td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency
</div></td>
<td> </td>
<td colspan="3" align="left">Other liabilities</td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Cash Flow Hedge Gains (Losses) Recognition</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following summarizes the gains (losses) recognized in the Condensed Consolidated
Statements of Operations and Other Comprehensive Income (“OCI”) of derivatives designated and
qualifying as cash flow hedges for the 12 and 36 weeks ended September 5, 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="30%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
<td width="40%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Amount of </b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Amount of Gain (Loss)</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Gain (Loss)</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Reclassified</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Recognized in </b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>from AOCL into</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>OCI</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b> Income</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center"><b>Derivatives in SFAS</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>12 Weeks</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>36 Weeks</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="1"><b></b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>12 Weeks</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>36 Weeks</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center"><b> 133 Cash Flow </b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="1"><b>Location of Gain (Loss) </b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center"><b>Hedging</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="1"><b>Reclassified from AOCL into</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Relationships</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="1" style="border-bottom: 1px solid #000000"><b>Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(15</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="1" nowrap="nowrap" align="left">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35</td>
<td> </td>
<td> </td>
<td colspan="1" align="left">Cost of sales</td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td colspan="1" align="left">Selling, delivery and administrative expenses</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(35</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(34</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the 12 and 36 weeks ended September 5, 2009, we recorded approximately $3 million and
$6 million of income, respectively, from ineffectiveness relating to our commodity cash flow
hedges.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Assuming no change in the commodity prices and foreign currency rates as measured September 5,
2009, $2 million of unrealized net gains will be reclassified from AOCL and recognized in earnings
over the next 12 months.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Other Derivatives Gains (Losses) Recognition</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following summarizes the gains (losses) and the location in the Condensed Consolidated
Statements of Operations of derivatives designated and qualifying as fair value hedges and
derivatives not designated as hedging instruments for the 12 and 36 weeks ended September 5, 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="50%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="35%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Amount of </b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Gain (Loss)</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Recognized in </b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Income on</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Derivative</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>12 Weeks</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>36 Weeks</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Location of Gain (Loss) Recognized in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Income on Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives in SFAS 133
Fair Value Hedging
Relationship</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swaps
</div></td>
<td> </td>
<td colspan="3" align="left">Interest expense, net</td>
<td> </td>
<td align="left">$</td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives Not Designated
as Hedging Instruments
under SFAS 133</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Prepaid forward contract
</div></td>
<td> </td>
<td colspan="3" align="left">Selling, delivery and administrative expenses</td>
<td> </td>
<td align="left">$</td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency
</div></td>
<td> </td>
<td colspan="3" align="left">Other non-operating expenses (income), net</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has recorded a $0.1 million loss and a $4 million gain of net foreign
currency transactions in other non-operating expenses (income), net in the Condensed Consolidated
Statements of Operations for the 12 weeks and 36 weeks ended September 5, 2009, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 9</b>—<b>Pension and Postretirement Medical Benefit Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We participate in PBG sponsored pension and other postretirement medical benefit plans in
various forms in the United States and other similar pension plans in our international locations,
covering employees who meet specified eligibility requirements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The assets, liabilities and expense associated with our international plans were not
significant to our results of operations and our financial position and are not included in the
tables and discussion presented below.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Components of Net Pension Expense</i>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Weeks Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>36 Weeks Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>6, 2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>6, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">9</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">32</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">35</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">73</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">69</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets — (income)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(28</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(27</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(82</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(80</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of net loss
</div></td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prior service costs
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net pension expense for the defined benefit plans
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">40</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the 36 weeks ended September 5, 2009, we made $106 million of contributions to the
U.S. defined benefit pension trust. On September 15, 2009, we made an additional $105 million of
contributions to the U.S. defined benefit pension trust.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Components of Postretirement Medical Expense</i>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Weeks Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>36 Weeks Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>6, 2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>6, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of net loss
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total postretirement medical expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">20</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Defined Contribution Benefits</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Defined contribution expense was $9 million and $6 million for the 12 weeks ended September 5,
2009 and September 6, 2008, respectively, and $30 million and $21 million for the 36 weeks ended
September 5, 2009 and September 6, 2008, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 10—Income Taxes</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the second quarter of 2009, we reached a settlement with the Canadian tax authorities
on an issue related to the 1999-2005 tax years. As a result, our gross reserves for uncertain tax
benefits, excluding interest, decreased by $19 million which was reflected as a benefit in income
tax expense in our Condensed Consolidated Statements of Operations. In addition, we decreased our
related reserves for interest by approximately $6 million and recognized a tax benefit from
interest refunds of approximately $4 million, for a total net tax benefit of $29 million as a
result of these items.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the third quarter of 2009, we settled various audits in our international
jurisdictions. As a result, our gross reserves for uncertain tax benefits, excluding interest,
decreased by $36 million. In addition, we decreased our related reserves for interest by approximately $30
million. Of these amounts, $46 million was reflected as a benefit in income tax expense in our
Condensed Consolidated Statements of Operations and $20 million was paid.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We currently have on-going income tax audits in our major tax jurisdictions. We believe that
it is reasonably possible that our reserves for uncertain tax benefits could further decrease by up
to $2 million within the next 12 months as a result of the completion of audits in various
jurisdictions or the expiration of statute of limitations.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 11—Segment Information</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We operate in one industry, carbonated soft drinks and other ready-to-drink beverages, and all
of our segments derive revenue from these products. We conduct business in all or a portion of the
United States, Mexico, Canada, Spain, Russia, Greece and Turkey. PBG manages and reports operating
results through
three reportable segments — U.S. & Canada, Europe (which includes Spain, Russia, Greece and
Turkey) and Mexico.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Operationally, the Company is organized along geographic lines with specific regional
management teams having responsibility for the financial results in each reportable segment. We
evaluate the performance of these segments based on operating income or loss. Operating income or
loss is exclusive of net interest expense, noncontrolling interests, foreign exchange gains and
losses and income taxes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s corporate headquarters centrally manages commodity derivatives on behalf of our
segments. During 2009, we expanded our hedging program to mitigate price changes associated with
certain commodities utilized in our production process. These derivatives hedge the underlying
price risk associated with the commodity and are not entered into for speculative purposes.
Certain commodity derivatives do not qualify for hedge accounting treatment. Others receive
hedge accounting treatment but may have some element of ineffectiveness based on the accounting standard. These
commodity derivatives are marked-to-market each period until settlement, resulting in gains and
losses being reflected in corporate headquarters’ results. The gains and losses are subsequently
reflected in the segment results when the underlying commodity’s cost is recognized. Therefore,
segment results reflect the contract purchase price of these commodities. The Company did not have
any comparable activity in the prior year periods.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following tables summarize select financial information related to our reportable
segments:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Weeks Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>36 Weeks Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>6, 2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>6, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Net Revenues</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. & Canada
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,665</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,652</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,393</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,395</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Europe
</div></td>
<td> </td>
<td> </td>
<td align="right">641</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">770</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,239</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,598</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mexico
</div></td>
<td> </td>
<td> </td>
<td align="right">327</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">392</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">782</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">994</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Worldwide net revenues
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,633</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,814</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,414</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,987</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Operating Income</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. & Canada
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">301</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">298</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">717</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">701</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Europe
</div></td>
<td> </td>
<td> </td>
<td align="right">123</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">123</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">117</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">137</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mexico
</div></td>
<td> </td>
<td> </td>
<td align="right">30</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">64</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total segments
</div></td>
<td> </td>
<td> </td>
<td align="right">454</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">453</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">879</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">902</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate — net impact of mark-to-market on commodity hedges
</div></td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Worldwide operating income
</div></td>
<td> </td>
<td> </td>
<td align="right">458</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">453</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">883</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">902</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td> </td>
<td align="right">56</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">181</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">151</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest income
</div></td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">108</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other non-operating expenses (income), net
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">426</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">430</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">780</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">859</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>27, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. & Canada
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">13,989</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13,328</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Europe
</div></td>
<td> </td>
<td> </td>
<td align="right">2,534</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,222</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mexico
</div></td>
<td> </td>
<td> </td>
<td align="right">946</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">945</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total segments
</div></td>
<td> </td>
<td> </td>
<td align="right">17,469</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,495</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Worldwide total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">17,474</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,495</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 12 - us-gaap:RestructuringAndRelatedActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 12—Restructuring Charges</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In the fourth quarter of 2008, we announced a restructuring program to enhance the Company’s
operating capabilities in each of our reporting segments with the objective to strengthen customer
service and selling effectiveness; simplify decision making and streamline the organization; drive
greater cost productivity to adapt to current macroeconomic challenges; and rationalize the
Company’s supply chain infrastructure. As part of the restructuring program, approximately 3,600
positions will be eliminated across all reporting segments, four facilities will be closed in the
United States, three plants and about 30 distribution centers will be closed in Mexico and about
700 routes will be eliminated in Mexico. In addition, PBG modified its U.S. defined benefit pension
plans, which will generate long-term savings and significantly reduce future financial obligations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company expects to record pre-tax charges of $140 million to $170 million in selling,
delivery and administrative expenses over the course of the restructuring program, which are
primarily for severance and related benefits, pension and other employee-related costs and other
charges, including employee relocation and asset disposal costs. Certain of the restructuring
actions have been delayed due to the pending merger with PepsiCo, therefore, the restructuring
actions may not be completed by the end of 2009, as originally intended.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Since the inception of the program and through September 5, 2009, we eliminated approximately
2,650 positions across all reporting segments and closed four facilities in the United States,
three plants and 15 distribution centers in Mexico and eliminated 470 routes in Mexico.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company expects to incur approximately $130 million in pre-tax cash expenditures from
these restructuring actions, of which $60 million was paid since the inception of the program, with
the balance expected to occur in 2009 and 2010. This includes $6 million of employee benefit
payments pursuant to existing unfunded termination indemnity plans. These benefit payments have
been accrued for in previous periods, and therefore, are not included in our estimated cost for
this program or the tables below.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following tables summarize the pre-tax costs associated with the restructuring program.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>By Reportable Segment</i>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>U.S. &</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Worldwide</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Canada</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Mexico</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Europe</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred through December 27, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">83</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">53</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred through the 24 weeks ended June 13, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred during the third quarter ended September 5, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs expected to be incurred through December 25, 2010
</div></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">38-68</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">28-39</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">10-25</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">0-4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total costs expected to be incurred
</div></td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">140-$170</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">89-$100</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">23-$38</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">28-$32</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>By Activity</i>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Asset</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Pension &</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Disposal,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Severance</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Employee</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>& Related</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Related</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Relocation</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Benefits</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>& Other</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred through December 27, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">83</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">47</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash payments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-cash settlements
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(30</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Remaining costs accrued at December 27, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">42</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred through the second quarter ended June 13, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash payments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(36</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(29</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-cash settlements
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Remaining costs accrued at June 13, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred during the third quarter ended September 5, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash payments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-cash settlements
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Remaining costs accrued at September 5, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 13 - us-gaap:CashFlowSupplementalDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 13—Supplemental Cash Flow Information</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The table below presents the Company’s supplemental cash flow information:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>36 Weeks Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>5, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>6, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest paid
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">146</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">143</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes paid
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 14 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 14—Contingencies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We are subject to various claims and contingencies related to lawsuits, environmental and
other matters arising from the normal course of business. We believe that the ultimate liability
arising from such claims or contingencies, if any, in excess of amounts already recognized is not
likely to have a material adverse effect on our results of operations, financial condition or
liquidity.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On April 19, 2009, PBG received an unsolicited proposal from PepsiCo to acquire all of the
outstanding shares of the PBG’s common stock not already owned by PepsiCo for $29.50 per share.
The proposal consisted of $14.75 in cash plus 0.283 shares of PepsiCo common stock for each share
of PBG common stock. Immediately following receipt of the proposal, PBG’s Board of Directors
formed a special committee to review the adequacy of the proposal. On May 4, 2009, PBG’s Board of
Directors rejected the proposal.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On August 3, 2009, PBG and PepsiCo entered into a definitive merger agreement, under which
PepsiCo will acquire all outstanding shares of PBG common stock it does not already own for the
price of $36.50 in cash or 0.6432 shares of PepsiCo common stock, subject to proration such that
the aggregate consideration to be paid to PBG shareholders shall be 50 percent in cash and 50
percent in PepsiCo common stock. The transaction is subject to PBG shareholder approval and
certain regulatory approvals and is expected to be finalized in late 2009 or early 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As discussed below, PBG and members of its Board of Directors have been named in a number of
lawsuits relating to the PepsiCo proposal. It is not presently possible to accurately forecast the
outcome or
the ultimate cost of these lawsuits. In the event of prolonged proceedings or a determination
adverse to PBG or its directors or officers, PBG may incur substantial monetary liability and
expense, which could have a material adverse effect on our business and financial results.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Beginning on April 22, 2009, seven putative stockholder class action complaints challenging
the April 19 proposal were filed against PBG and the individual members of its Board of Directors
in the Court of Chancery of the State of Delaware (the “Delaware Lawsuits”). The complaints
alleged, among other things, that the defendants had breached or would breach their fiduciary
duties owed to the public stockholders of PBG in connection with the April 19 proposal. The
Delaware Lawsuits were consolidated on June 5, 2009, and an amended complaint was filed on June 19,
2009. The amended complaint seeks, among other things, damages and declaratory,
injunctive, and other equitable relief alleging, among other things, that the defendants have
breached or will breach their fiduciary duties owed to the public stockholders of PBG, that the
April 19 proposal and the transactions contemplated thereunder were not entirely fair to the public
stockholders, that PepsiCo had retaliated or would retaliate against PBG for rejecting the April 19
proposal, and that certain provisions of PBG’s certificate of incorporation are invalid and/or
inapplicable to the April 19 proposal and the pending merger. On July 23, 2009, motions for
partial summary judgment were filed concerning the plaintiffs’ allegations relating to PBG’s
certificate of incorporation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Beginning on April 29, 2009, two putative stockholder class action complaints were filed
against PBG and members of its Board of Directors in the Supreme Court of the State of New York,
County of Westchester. The complaints seek, among other things, damages and declaratory,
injunctive, and other equitable relief and allege, among other things, that the defendants have
breached or will breach their fiduciary duties owed to the public stockholders of PBG, that the
April 19 proposal and the transactions contemplated thereunder were not entirely fair to the public
stockholders of PBG, and that the defensive measures implemented by PBG were not being used to
maximize stockholder value. On June 8, 2009, PBG filed Motions to Dismiss (or, in the alternative,
to Stay), the actions in favor of the previously filed actions pending in the Delaware Court of
Chancery. As of June 26, 2009, PBG’s Motions were fully briefed and submitted to the Court.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On May 8, 2009, a putative stockholder class action complaint was filed against PBG and the
members of its Board of Directors other than John C. Compton and Cynthia M. Trudell in the Supreme
Court of the State of New York, County of New York. The complaint alleged that the defendants had
breached their fiduciary duties owed to the public stockholders of PBG by depriving those
stockholders of the full and fair value of their shares by failing to accept PepsiCo’s April 19
proposal to acquire PBG or to negotiate with PepsiCo after that proposal was made and by adopting
certain defensive measures. On June 8, 2009, PBG filed Motions to Dismiss (or, in the alternative,
to Stay) this action in favor of the previously filed actions pending in the Delaware Court of
Chancery. The plaintiff failed to file a timely opposition to the Motion. On August 10, 2009, the
plaintiff filed an amended class action complaint, adding as defendants PepsiCo, Mr. Compton and
Ms. Trudell. The amended complaint seeks, among other things, damages and declaratory, injunctive,
and other equitable relief and alleges, among other things, that the defendants have breached or
will breach their fiduciary duties owed to the public stockholders of PBG and that the pending
merger is not entirely fair to the public stockholders of PBG. On August 27, 2009, PBG again filed
Motions to Dismiss (or, in the alternative, to Stay) this action in favor of the previously filed
actions pending in the Delaware Court of Chancery.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On May 11, 2009, PepsiCo, Inc., along with Mr. Compton and Ms. Trudell (PepsiCo employees who
are members of PBG’s Board of Directors) filed a complaint against PBG and the other members of its
Board of Directors in Delaware Chancery Court. The complaint sought declaratory and injunctive
relief and alleged that the defendants had breached their fiduciary duties owed to the public
stockholders of PBG by, among other things, holding a meeting of PBG’s Board of Directors and
taking certain actions at that meeting without providing notice to Mr. Compton and Ms. Trudell,
adopting a stockholder rights plan that restricts PepsiCo’s rights as a stockholder by, for
example, limiting its ability to solicit consents, and adopting a stockholder rights plan that was
an unreasonable and disproportionate response to the April 19 proposal. On August 5, 2009,
following PBG’s entry into the merger agreement with PepsiCo, PepsiCo voluntarily dismissed this
action with prejudice.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 15 - us-gaap:ScheduleOfGuaranteeObligationsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 15—Guarantees</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     PBG has a committed revolving credit facility of $1.2 billion and an uncommitted credit
facility of $500 million. Both of these credit facilities are guaranteed by us and will be used to
support PBG’s commercial paper program and our working capital requirements. PBG had no
outstanding commercial paper as of September 5, 2009 and December 27, 2008.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In March 1999, PBG issued $1 billion of seven percent senior notes due 2029, which are
guaranteed by us. We also guarantee that to the extent there is available cash, we will distribute
pro rata to PBG and PepsiCo sufficient cash such that the aggregate cash distributed to PBG will
enable PBG to pay its taxes, repurchase shares, distribute dividends and make interest payments for
its internal and external debt.
</div>
</div>
-3000000
-3000000
-3000000
49000000
49000000
358000000
26000000
332000000
26000000
9000000
-27000000
36000000
9000000
859000000
430000000
780000000
426000000
0
-92000000
-105000000
-55000000
8907000000
9713000000
337000000
312000000
308000000
33000000
0
-19000000
3610000000
1284000000
3286000000
1163000000
-7000000
-7000000
-7000000
false
--12-26
2009-09-05
10-Q
0001087835
0
Yes
Non-accelerated Filer
0
BOTTLING GROUP LLC
No
Yes
1529000000
2045000000
-1373000000
-1195000000
121000000
94000000
40000000
40000000
40000000
38000000
38000000
38000000
1000000
1000000
1000000
16495000000
17474000000
3022000000
3539000000
459000000
398000000
786000000
575000000
-61000000
-211000000
739000000
299000000
955000000
463000000
29000000
12000000
5000000
24000000
768000000
768000000
311000000
960000000
960000000
487000000
5475000000
2077000000
5245000000
2012000000
26000000
0
279000000
292000000
468000000
436000000
3692000000
3938000000
-10000000
5000000
0
-5000000
4000000
0
1434000000
1480000000
4512000000
1737000000
4169000000
1621000000
57000000
29000000
-29000000
-20000000
-198000000
-495000000
-15000000
44000000
-104000000
-120000000
-427000000
-197000000
-67000000
52000000
-469000000
-580000000
3751000000
3923000000
151000000
52000000
181000000
56000000
528000000
667000000
108000000
34000000
74000000
24000000
619000000
597000000
8289000000
8230000000
16495000000
17474000000
2937000000
2278000000
3789000000
4477000000
1305000000
10000000
672000000
726000000
509000000
-452000000
-1485000000
-785000000
925000000
1021000000
779000000
384000000
777000000
418000000
23000000
17000000
32000000
28000000
902000000
453000000
883000000
458000000
108000000
155000000
-19000000
-19000000
-19000000
-19000000
-7000000
-30000000
-30000000
-30000000
-30000000
-9000000
-30000000
-30000000
-30000000
-30000000
-42000000
63000000
63000000
63000000
63000000
21000000
-2000000
-2000000
-2000000
-2000000
7000000
7000000
7000000
7000000
-23000000
-29000000
-23000000
6000000
-29000000
-55000000
58000000
85000000
58000000
-27000000
85000000
11000000
1284000000
1183000000
574000000
357000000
139000000
3000000
22000000
112000000
608000000
2000000
0
-106000000
0
741000000
-157000000
-246000000
-1000000
-9000000
209000000
109000000
15000000
8000000
802000000
779000000
802000000
23000000
779000000
401000000
809000000
777000000
809000000
32000000
777000000
446000000
3869000000
3842000000
1371000000
1985000000
7000000
1326000000
9987000000
3814000000
9414000000
3633000000
40000000
40000000
103000000
223000000
7534000000
8518000000
9608000000
9418000000
-189000000
379000000
9229000000
10783000000
10236000000
-193000000
740000000
10043000000
8206000000
8907000000
-1373000000
672000000
7534000000
9244000000
9713000000
-1195000000
726000000
8518000000