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Basis of Presentation
 6 Months Ended
Jun. 14, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Our Divisions
Basis of Presentation

When used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its consolidated subsidiaries.
Our Condensed Consolidated Balance Sheet as of June 14, 2014, Condensed Consolidated Statements of Income and Comprehensive Income for the 12 and 24 weeks ended June 14, 2014 and June 15, 2013, and the Condensed Consolidated Statements of Cash Flows and Equity for the 24 weeks ended June 14, 2014 and June 15, 2013 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 28, 2013. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation. The results for the 12 and 24 weeks ended June 14, 2014 and June 15, 2013 are not necessarily indicative of the results expected for the full year.
The results of our Venezuelan businesses have been reported under highly inflationary accounting since the beginning of 2010. See further unaudited information in “Our Business Risks,” “Items Affecting Comparability” and “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
While our North America (United States and Canada) results are reported on a 12-week basis, most of our international operations report on a monthly calendar basis for which the months of March, April and May are reflected in our second 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 or 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. This report should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 28, 2013.
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 (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.

Net revenue and operating profit of each division are as follows:
 
12 Weeks Ended
 
24 Weeks Ended
 
6/14/14

 
6/15/13

 
6/14/14

 
6/15/13

Net Revenue
 
 
 
 
 
 
 
FLNA
$
3,387

 
$
3,332

 
$
6,606

 
$
6,455

QFNA
564

 
577

 
1,198

 
1,211

LAF
2,122

 
2,116

 
3,460

 
3,483

PAB
5,281

 
5,260

 
9,707

 
9,680

Europe
3,657

 
3,653

 
5,618

 
5,595

AMEA
1,883

 
1,869

 
2,928

 
2,964

 
$
16,894

 
$
16,807

 
$
29,517

 
$
29,388



 
12 Weeks Ended
 
24 Weeks Ended
 
6/14/14

 
6/15/13

 
6/14/14

 
6/15/13

Operating Profit
 
 
 
 
 
 
 
FLNA
$
937

 
$
906

 
$
1,799

 
$
1,734

QFNA
139

 
133

 
299

 
313

LAF
323

 
318

 
555

 
534

PAB
868

 
882

 
1,297

 
1,447

Europe
451

 
425

 
603

 
513

AMEA
381

 
524

 
575

 
708

Total division
3,099

 
3,188

 
5,128

 
5,249

Corporate Unallocated
 
 
 
 
 
 
 
Mark-to-market net gains/(losses)
31

 
(39
)
 
65

 
(55
)
Restructuring and impairment charges
(8
)
 
(1
)
 
(5
)
 
(2
)
Venezuela currency devaluation
—

 
—

 
—

 
(124
)
Other
(226
)
 
(279
)
 
(485
)
 
(541
)
 
$
2,896

 
$
2,869

 
$
4,703

 
$
4,527


Total assets of each division are as follows:
 
Total Assets
 
6/14/14


12/28/13

FLNA
$
5,476

 
$
5,308

QFNA
1,017

 
983

LAF
5,167

 
4,829

PAB
31,152

 
30,350

Europe
18,819

 
18,702

AMEA
6,124

 
5,754

Total division
67,755

 
65,926

Corporate (a)
12,678

 
11,552


$
80,433

 
$
77,478

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