Basis of Presentation

3 Months Ended

Mar. 23, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Our Divisions

Basis of Presentation

Our Condensed Consolidated Balance Sheet as of March 23, 2013 and the Condensed Consolidated Statements of Income, Comprehensive Income, Cash Flows and Equity for the 12 weeks ended March 23, 2013 and March 24, 2012 have not been audited. These statements have been prepared on a basis that is substantially consistent with the accounting principles applied in our Annual Report on Form 10-K for the fiscal year ended December 29, 2012. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation. The results for the 12 weeks are not necessarily indicative of the results expected for the full year.

While our North America (United States and Canada) results are reported on a period basis, most of our international operations report on a monthly calendar basis for which the months of January and February are reflected in our first quarter results.

Our significant interim accounting policies include the recognition of a pro rata share of certain estimated annual sales incentives, and certain advertising and marketing costs, in proportion to revenue and volume, as applicable, and the recognition of income taxes using an estimated annual effective tax rate. Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw material handling facilities, are included in cost of sales. The costs of moving, storing and delivering finished product are included in selling, general and administrative expenses.

The following information is unaudited. Tabular dollars are in millions, except per share amounts. All per share amounts reflect common per share amounts, assume dilution unless otherwise noted, and are based on unrounded amounts. Certain reclassifications were made to the prior year’s amounts to conform to the 2013 presentation. This report should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 29, 2012.

Our Divisions

We are organized into four business units, as follows:

1. PepsiCo Americas Foods, which includes Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and all of our Latin American food and snack businesses (LAF);

2. PepsiCo Americas Beverages (PAB), which includes all of our North American and Latin American beverage businesses;

3. PepsiCo Europe, which includes all beverage, food and snack businesses in Europe and South Africa; and

4. PepsiCo Asia, Middle East and Africa (AMEA), which includes all beverage, food and snack businesses in AMEA, excluding South Africa.

Our four business units comprise six reportable segments (also referred to as divisions), as follows:

• FLNA,

• QFNA,

• LAF,

• PAB,

• Europe, and

• AMEA.

	12 Weeks Ended
	Net Revenue				Operating Profit
	3/23/2013		3/24/2012		3/23/2013			3/24/2012
FLNA	$	3,123	$	3,010	$	828		$	780
QFNA	634		623		180			187
LAF	1,367		1,235		216			183
PAB	4,420		4,448		565			525
Europe	1,942		1,845		88			81
AMEA	1,095		1,267		184			148
Total division	12,581		12,428		2,061			1,904
Corporate Unallocated
Mark-to-market net impact (losses)/gains					(16		)	84
Restructuring and impairment charges					(1		)	2
Venezuela currency devaluation					(124		)	—
Other					(262		)	(268		)
	$	12,581	$	12,428	$	1,658		$	1,722

	Total Assets
	3/23/2013		12/29/2012
FLNA	$	5,298	$	5,332
QFNA	997		966
LAF	5,027		4,993
PAB	31,293		30,899
Europe	18,989		19,218
AMEA	5,714		5,738
Total division	67,318		67,146
Corporate (a)	8,037		7,492
	$	75,355	$	74,638

(a) Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments and property, plant and equipment.