Instructions Use the companies' financial information to answer the following questions. a. Compute the debt to assets and the times interest earned ratios for these two companies. Comment on the quality of these two ratios for both Coca-Cola and PepsiCo. b. What is the difference between the fair value and the historical cost (carrying amount) of each com- pany's debt at year-end 2017? Why might a difference exist in these two amounts? c. Both companies have debt issued in foreign countries. Speculate as to why these companies may use foreign debt to finance their operations. What risks are involved in this strategy, and how might they adjust for this risk?
THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME 2016 2015 5:41.86 16,465 23198 13.262 1.510 8.626 642 733 $ 44,294 17.482 26,812 16,427 1.657 8.728 Year Ended December 31 In millionewept per share data NET OPERATING REVENUES Cost of goods sold GROSS PROFIT Selling, general and administrative expenses Other operating charges OPERATING INCOME Interest income Interest expense Equity income (loss) - net Other income (loss-net INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes from continuing operations NET INCOME FROM CONTINUING OPERATIONS Income from discontinued operations net of income taxes of S47. SO and S, respectively CONSOLIDATED NET INCOME Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 5 35,410 13.256 22.154 12.496 2.157 7.501 677 841 1.071 (1.666) 6.742 5.560 1.182 101 1.283 35 (1.234) 81.36 1.586 856 489 631 9.603 2.219 7.166 6.550 23 7.366 15 $ 1,248 $6.527 S7.51 S S 1.SI S $ S $ 1.51 1.49 S $ 1.69 1.67 $ Basie net income per share from continuing operations Basic net income per share from discontinued operations BASIC NET INCOME PER SHARE Diluted net income per share from continuing operations Diluted net income per share from discontinued operations DILUTED NET INCOME PER SHARE AVERAGE SHARES OUTSTANDING - BASIC Effect of dilutive securities AVERAGE SHARES OUTSTANDING DILUTED 0.28 0.02 0.29 0.27 0.02 0.29 4.272 52 4.324 $ $ $ 1..19 4.317 50 1.67 4.352 53 4,405 Calculated based on net income from continuing operations les net income from continuing operations attributable to noncontrolling interest Cakulated based on net income from discontinued operations lewe net income from discontinued operations attributable to noncontrolling interests Per share amounts do not add due to rounding Refer to Notes to Consolidated Financial Statements. CONSOLIDATED NET INCOME Nettoyants Net in andere Nerang pwwther the TOTAL COMPRENSIVE INCOME CLOSE Lew Comprehensive contributes nostre mere TOTAL COMPREHENSIVE INCOMELLONS ATTRIBUTARE TO SHARONESS OF THE CACOLA COSIPANY THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATEDRALANCE SHEETS December 10 ASSES CURRENT ASKETS Cash and that Shortumen TOTAL CASH.CASH FOUIVALENTS AND SHORTTERMINVESTMENTS Marta were de receivable estances of Strepen Investors Prepaid pes and others Amesed for sale 245 545 010 L. 4.500 2003 10 13 3620 $7.96 5000 5.743 30s 410 37 1.4 CIT 730 TOTAL CURRENT ASSETS BOUITY METHOD INVESTMENTS OTHER INVESTMENTS OTHER ASSETS PROPERTY. PLANT AND EQUIPMENT - THADEMARKS WITH INDEFINITE LIVES NOTTLERS FRANCHISE RIGHTS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and cred expenses Loans and notes payable Current matures of lag term debt And income tas Liabilities held for sale Liabilities held for sale ined operations TOTAL CURRENT LIABILITIES LONG-TERM DEBT OTHER LIABILITIES DEFERRED INCOME TAXES THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common od 0,25 par sako: Authorized - 11.200 hare Issued -7,000 and 7040 share respectively Capital surplus Reinvested earning Accumulated other comprehensive come to Treasury stock, ston-2781 and 2.252 share respectively EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY TOTAL LIABILITIESAND EQUITY 36.312 2004 311 3,021 2.522 3.753 1.760 15.864 10.40 10,305) 50,677) 17.072 1.505 16.972 S 17.896 1. 1493 68,500 011 205) 4479 23.062 133 23.220 $ 1.270 Refer to Notes to Consolidated Financial Statement Specimen Financial Statements: The Coca-Cola THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS 57166 5 10 (or 6550 1.787 1.26 1.970 14 1.1.46 (137 10525 6,995 (16.528 15.911 (15,499) 16,624 13:31 14,079 12.0913 as Year Ended December 31 (Tamil OPERATING ACTIVITIES Consolidated nat income (come loss from discontinued operations Net income from continuing operations Depreciation and amortization Stock-based compensation espeare Deferred income taxes Equity (income) loss - net of disidends Foreign currency adjustments Significant pains, losses on sales of awets-net Other operating charges Other items Net chanpe in operating iets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES Purchases of investments Proceeds from disposal of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposal of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash provided by used in investing activities FINANCING ACTIVITIES Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net cash provided by used in financing activities CASH FLOWS FROM DESCONTINUED OPERATIONS Net cash provided by used in operating activities from discontinued operations Net cash provided by (used in) investing activities from discontinued operations Net cash provided by used in) financing activities from discontinued operations Net cash provided by (used in) discontinued operations EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase (decrease) during the year Balance at beginning of year Balance at end of year (1675) 104 (126) (285) 150 (209) (999) 565 (2.553) 85 (40) 16.186) 29.857 28,768) 1.595 (3.582) (6320) (91) (7.409) 27.281 (25.615) 1434 (3.681) (6,043) 79 (6.545) 40,435 (37738) 1.245 (3.564) (5.741) 251 (5.113) 111 (65) 242 (6) (878) 8555 $6.006 1.2.46 7.309 $ 8.555 (1.6.19) 8,958 $ 7,309 Refer to Notes to Consolidated Financial Statements THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY QUITY ATTRIBUTABLE TO SILAREOWNERS OF THE COCA-COLA COMPANY Treaty Mockempingested to work componplan Cola Company 2015 2016 Year Ended December In sepeda NUMBER OF COMINION SHARES OUTSTANDING Balance at begin 4.366 4314 42 50 (86) 4109 4 $1.15 1160 4124 51760 14,993 14016 589 Balance at end of year COMMON STOCK CAPITAL SURPLUS Balance at beginning of Stocked to employees related to work compensati plam The benefit (chure from wock compensation plus Stock-based compensation Others Baluceat end of year REINVESTED EARNINGS Balance at beginning of year Net income tributable to share of The Coca Cola Co Dividends per share 13154 532 94 236 25 219 Y3 15.864 14.99 14.016 650 6527 62.40 7.151 (5.741) 1.24 60,430 68502 (5.777) (11.205 (10,174) (103) 10.305) (11.25 10.174) (47.93) SAN, 510 and 1.12 in 2017, 2016 and 2015 respectives ACCUMULATED OTHER COMPREHENSIVE INCOME (OSS) Balance at beginning of a Net other comprehensive income a Balance stead of a TREASURY STOCK Balance at beginning of year Treasury stock issued to employee related to stock compensation plans Purchases of stock for treasury Balance at end of year TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS Balance at beginning or year Net income attributable to noncontrolling interests Net foreign currency translation adjustment Dividends paid to noncontrolling interest Contributions by noncontrolling interests Business combinations Deconsolidation of certain entities Other activities TOTAL EQUITY ATTRIBUTABLE TO NON CONTROLLING INTERESTS (3.598) (50,677) (47.988 5 17.072 5 21.00 (42.225) 696 (3.537 (45.066 $ 25,554 5 5 1585 35 38 (15) 210 23 (13) 125) 241 15 (18) (31) 1- 1.05 (157) (3) (36) 11 51.905 5 158 6 210 3 Refer to Notes to Consolidated Financial Statements Consolidated Statement effect Pepe Inc. and Subsidies Fheal year ended December 27, 2017 December 2, 2016 December 29, 2015 in millions except per share acon) 2017 2016 Net Revem 27 90 Geowo BU 135 9.75 10.500 (1,1511 110 59 900 49 SI Selling general and dinisensive expenses Veneral impairment charges Operating Profit Istenest expense Interest income and other Income before icoane Provision for income to See Note 5) Net income Los Net income table to controlling interest Net Income Attributable to PepsiCo Net Income Attributable te PepsiCo per Common Share Rask Dilated Weighted a crage common are outstanding Bank Diluted Cash dividends declared per common share 5.40 3.38 5 1.43 14 3.1675$ Consolidated Statement of Comprehensive Income PepsiCo, Inc. and Shares Fiscal year ended December 30, 2017 December 31, 2016 and December 26, 2015 in million 2017 2016 5.301 Net income Other comprehensive income one of unce Net currency translation adjustment Net change on cash flow hedges Net pension and retire medical adjustments Net change on securities Other 1.10 26 (159) 302 40 3161 3 171 1 596) 5.783 862 5.770 151 3.719 $ Comprehensive income Comprehensive income attributable to non controlling interesa Comprehensive Income Attributable to PepsiCo See accompanying notes to the consolidated financial statementes 54) 389 (47) 2.500 5.7295 fab COR Fiscal years ended December 2017 December 2016 and 26.2013 Consolidated Statement of Cash Flows PepceInc. and Subsidiance 30 Hea 2 The most Oeting, Net Can Used to sing Activities Ppaymate De Shamboring by 13 Meme 53 Cash dised Share the de from With Along an ga m MSL PU 8 PLU 4H CHI Other Nut Cash for an Act dhe danes Net Increase in Cash and Cash Eyes Cash and Cebu, Bening Year Cash and Chem. Ead Your LASE 14 Specimen Financial Statements: PepsiCo, Inc 07 Consolidated Balance Sheet PepsiCo, Inc. and Subsidianes December 30, 2017 and December 31, 2016 tin millions except per share amounts) 2017 ASSETS Current Assets 15 10,610 8.900 3.723 Short-term investments Accounts and tes receivable.net Laventos Prepaid expenses and other comments Total Current A Property, llant and Equipement met Amortiste Intangible Arte 1.546 17240 16.591 14.7.41 12.570 Other non amoniale intangibles Nonamotable Intangides Investments in Nocontrolled Amates Other Art Total Ames 12.196 26,626 1950 2,043 79,04 5 73.490 6,892 3.485 5 15.017 20.502 33.796 11,283 21,133 30.053 6.669 68.823 62.91 41 LIABILITIES AND EQUITY Current Liabilities Short term debt obligations Accounts payable and other current liabilities Total Current Liabilities Long-Term Debt Obligations Other Liabilities Theferred Income Taxes Total Liabilities Commitments and contingencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders' Equity Connon Hock, par value 1 per share authorized 3.600 shares wed, net af repurchased Common Mock at par value: 1 420 and 1428 shares, respectively) Capital in excess of par value Retained eaming Accumulated other comprehensive low Repurchased common steck, in exces of par value (446 and 43 shares, respectively) Total PepsiCo Common Shareholders' Equity Noncontrolling interests Total Equity Totul Liabilities and Equity 41 (197) (192) 24 3.996 52.839 (13,057) 02.757) 11.045 92 10.981 79.804 24 4,091 52 SIR (13919) 01468) 11.346 104 11,199 73,490 $ See accompanyiag notes to the consolidated financial statements Fiscal years ended December 2017. December 31, 2016 and December 20, 2015 DSpecimen Financial Statements: PepsiCo, Inc. Consolidated Statement of Equity PepsiCo. Inc. and Subsidiaries (in millions) Preferred de la 13 3017 Nur BR . 1 FO 1993 34 24 IS Captain of Val 1430 34 4,091 190 w (151 Ch 4076 14 Metained in . 42 4857 73 3339 62 1291 13.000) 78 700 THE 5 Osvede declared Balance und of year Acumulated Other Comprehe Balance beginning of a Other comprehensive income talep Balance end of yea Reached Stock Hance, besig of year Share purchases Shock optin eserie BSI, PSE and PEPonit nevemet Other Balance end nya Tutal Pep Commen Shareholders' Equity Nancontrolling latest Balance, heining of your Niet moment to controlling Distributions to enrolling in Currency mandatin adament Other, het Balance of year Total Equity 14461 (29,165) 11.045 104 110 LO7 SO 51 1623 Ielal 104 107 12.010 ca Includes total at benefit of million in 2016 and 5107 million 2015 See accompanying notes to the consolidated financial atent THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME 2016 2015 5:41.86 16,465 23198 13.262 1.510 8.626 642 733 $ 44,294 17.482 26,812 16,427 1.657 8.728 Year Ended December 31 In millionewept per share data NET OPERATING REVENUES Cost of goods sold GROSS PROFIT Selling, general and administrative expenses Other operating charges OPERATING INCOME Interest income Interest expense Equity income (loss) - net Other income (loss-net INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes from continuing operations NET INCOME FROM CONTINUING OPERATIONS Income from discontinued operations net of income taxes of S47. SO and S, respectively CONSOLIDATED NET INCOME Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 5 35,410 13.256 22.154 12.496 2.157 7.501 677 841 1.071 (1.666) 6.742 5.560 1.182 101 1.283 35 (1.234) 81.36 1.586 856 489 631 9.603 2.219 7.166 6.550 23 7.366 15 $ 1,248 $6.527 S7.51 S S 1.SI S $ S $ 1.51 1.49 S $ 1.69 1.67 $ Basie net income per share from continuing operations Basic net income per share from discontinued operations BASIC NET INCOME PER SHARE Diluted net income per share from continuing operations Diluted net income per share from discontinued operations DILUTED NET INCOME PER SHARE AVERAGE SHARES OUTSTANDING - BASIC Effect of dilutive securities AVERAGE SHARES OUTSTANDING DILUTED 0.28 0.02 0.29 0.27 0.02 0.29 4.272 52 4.324 $ $ $ 1..19 4.317 50 1.67 4.352 53 4,405 Calculated based on net income from continuing operations les net income from continuing operations attributable to noncontrolling interest Cakulated based on net income from discontinued operations lewe net income from discontinued operations attributable to noncontrolling interests Per share amounts do not add due to rounding Refer to Notes to Consolidated Financial Statements. CONSOLIDATED NET INCOME Nettoyants Net in andere Nerang pwwther the TOTAL COMPRENSIVE INCOME CLOSE Lew Comprehensive contributes nostre mere TOTAL COMPREHENSIVE INCOMELLONS ATTRIBUTARE TO SHARONESS OF THE CACOLA COSIPANY THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATEDRALANCE SHEETS December 10 ASSES CURRENT ASKETS Cash and that Shortumen TOTAL CASH.CASH FOUIVALENTS AND SHORTTERMINVESTMENTS Marta were de receivable estances of Strepen Investors Prepaid pes and others Amesed for sale 245 545 010 L. 4.500 2003 10 13 3620 $7.96 5000 5.743 30s 410 37 1.4 CIT 730 TOTAL CURRENT ASSETS BOUITY METHOD INVESTMENTS OTHER INVESTMENTS OTHER ASSETS PROPERTY. PLANT AND EQUIPMENT - THADEMARKS WITH INDEFINITE LIVES NOTTLERS FRANCHISE RIGHTS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and cred expenses Loans and notes payable Current matures of lag term debt And income tas Liabilities held for sale Liabilities held for sale ined operations TOTAL CURRENT LIABILITIES LONG-TERM DEBT OTHER LIABILITIES DEFERRED INCOME TAXES THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common od 0,25 par sako: Authorized - 11.200 hare Issued -7,000 and 7040 share respectively Capital surplus Reinvested earning Accumulated other comprehensive come to Treasury stock, ston-2781 and 2.252 share respectively EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY TOTAL LIABILITIESAND EQUITY 36.312 2004 311 3,021 2.522 3.753 1.760 15.864 10.40 10,305) 50,677) 17.072 1.505 16.972 S 17.896 1. 1493 68,500 011 205) 4479 23.062 133 23.220 $ 1.270 Refer to Notes to Consolidated Financial Statement Specimen Financial Statements: The Coca-Cola THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS 57166 5 10 (or 6550 1.787 1.26 1.970 14 1.1.46 (137 10525 6,995 (16.528 15.911 (15,499) 16,624 13:31 14,079 12.0913 as Year Ended December 31 (Tamil OPERATING ACTIVITIES Consolidated nat income (come loss from discontinued operations Net income from continuing operations Depreciation and amortization Stock-based compensation espeare Deferred income taxes Equity (income) loss - net of disidends Foreign currency adjustments Significant pains, losses on sales of awets-net Other operating charges Other items Net chanpe in operating iets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES Purchases of investments Proceeds from disposal of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposal of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash provided by used in investing activities FINANCING ACTIVITIES Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net cash provided by used in financing activities CASH FLOWS FROM DESCONTINUED OPERATIONS Net cash provided by used in operating activities from discontinued operations Net cash provided by (used in) investing activities from discontinued operations Net cash provided by used in) financing activities from discontinued operations Net cash provided by (used in) discontinued operations EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase (decrease) during the year Balance at beginning of year Balance at end of year (1675) 104 (126) (285) 150 (209) (999) 565 (2.553) 85 (40) 16.186) 29.857 28,768) 1.595 (3.582) (6320) (91) (7.409) 27.281 (25.615) 1434 (3.681) (6,043) 79 (6.545) 40,435 (37738) 1.245 (3.564) (5.741) 251 (5.113) 111 (65) 242 (6) (878) 8555 $6.006 1.2.46 7.309 $ 8.555 (1.6.19) 8,958 $ 7,309 Refer to Notes to Consolidated Financial Statements THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY QUITY ATTRIBUTABLE TO SILAREOWNERS OF THE COCA-COLA COMPANY Treaty Mockempingested to work componplan Cola Company 2015 2016 Year Ended December In sepeda NUMBER OF COMINION SHARES OUTSTANDING Balance at begin 4.366 4314 42 50 (86) 4109 4 $1.15 1160 4124 51760 14,993 14016 589 Balance at end of year COMMON STOCK CAPITAL SURPLUS Balance at beginning of Stocked to employees related to work compensati plam The benefit (chure from wock compensation plus Stock-based compensation Others Baluceat end of year REINVESTED EARNINGS Balance at beginning of year Net income tributable to share of The Coca Cola Co Dividends per share 13154 532 94 236 25 219 Y3 15.864 14.99 14.016 650 6527 62.40 7.151 (5.741) 1.24 60,430 68502 (5.777) (11.205 (10,174) (103) 10.305) (11.25 10.174) (47.93) SAN, 510 and 1.12 in 2017, 2016 and 2015 respectives ACCUMULATED OTHER COMPREHENSIVE INCOME (OSS) Balance at beginning of a Net other comprehensive income a Balance stead of a TREASURY STOCK Balance at beginning of year Treasury stock issued to employee related to stock compensation plans Purchases of stock for treasury Balance at end of year TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS Balance at beginning or year Net income attributable to noncontrolling interests Net foreign currency translation adjustment Dividends paid to noncontrolling interest Contributions by noncontrolling interests Business combinations Deconsolidation of certain entities Other activities TOTAL EQUITY ATTRIBUTABLE TO NON CONTROLLING INTERESTS (3.598) (50,677) (47.988 5 17.072 5 21.00 (42.225) 696 (3.537 (45.066 $ 25,554 5 5 1585 35 38 (15) 210 23 (13) 125) 241 15 (18) (31) 1- 1.05 (157) (3) (36) 11 51.905 5 158 6 210 3 Refer to Notes to Consolidated Financial Statements Consolidated Statement effect Pepe Inc. and Subsidies Fheal year ended December 27, 2017 December 2, 2016 December 29, 2015 in millions except per share acon) 2017 2016 Net Revem 27 90 Geowo BU 135 9.75 10.500 (1,1511 110 59 900 49 SI Selling general and dinisensive expenses Veneral impairment charges Operating Profit Istenest expense Interest income and other Income before icoane Provision for income to See Note 5) Net income Los Net income table to controlling interest Net Income Attributable to PepsiCo Net Income Attributable te PepsiCo per Common Share Rask Dilated Weighted a crage common are outstanding Bank Diluted Cash dividends declared per common share 5.40 3.38 5 1.43 14 3.1675$ Consolidated Statement of Comprehensive Income PepsiCo, Inc. and Shares Fiscal year ended December 30, 2017 December 31, 2016 and December 26, 2015 in million 2017 2016 5.301 Net income Other comprehensive income one of unce Net currency translation adjustment Net change on cash flow hedges Net pension and retire medical adjustments Net change on securities Other 1.10 26 (159) 302 40 3161 3 171 1 596) 5.783 862 5.770 151 3.719 $ Comprehensive income Comprehensive income attributable to non controlling interesa Comprehensive Income Attributable to PepsiCo See accompanying notes to the consolidated financial statementes 54) 389 (47) 2.500 5.7295 fab COR Fiscal years ended December 2017 December 2016 and 26.2013 Consolidated Statement of Cash Flows PepceInc. and Subsidiance 30 Hea 2 The most Oeting, Net Can Used to sing Activities Ppaymate De Shamboring by 13 Meme 53 Cash dised Share the de from With Along an ga m MSL PU 8 PLU 4H CHI Other Nut Cash for an Act dhe danes Net Increase in Cash and Cash Eyes Cash and Cebu, Bening Year Cash and Chem. Ead Your LASE 14 Specimen Financial Statements: PepsiCo, Inc 07 Consolidated Balance Sheet PepsiCo, Inc. and Subsidianes December 30, 2017 and December 31, 2016 tin millions except per share amounts) 2017 ASSETS Current Assets 15 10,610 8.900 3.723 Short-term investments Accounts and tes receivable.net Laventos Prepaid expenses and other comments Total Current A Property, llant and Equipement met Amortiste Intangible Arte 1.546 17240 16.591 14.7.41 12.570 Other non amoniale intangibles Nonamotable Intangides Investments in Nocontrolled Amates Other Art Total Ames 12.196 26,626 1950 2,043 79,04 5 73.490 6,892 3.485 5 15.017 20.502 33.796 11,283 21,133 30.053 6.669 68.823 62.91 41 LIABILITIES AND EQUITY Current Liabilities Short term debt obligations Accounts payable and other current liabilities Total Current Liabilities Long-Term Debt Obligations Other Liabilities Theferred Income Taxes Total Liabilities Commitments and contingencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders' Equity Connon Hock, par value 1 per share authorized 3.600 shares wed, net af repurchased Common Mock at par value: 1 420 and 1428 shares, respectively) Capital in excess of par value Retained eaming Accumulated other comprehensive low Repurchased common steck, in exces of par value (446 and 43 shares, respectively) Total PepsiCo Common Shareholders' Equity Noncontrolling interests Total Equity Totul Liabilities and Equity 41 (197) (192) 24 3.996 52.839 (13,057) 02.757) 11.045 92 10.981 79.804 24 4,091 52 SIR (13919) 01468) 11.346 104 11,199 73,490 $ See accompanyiag notes to the consolidated financial statements Fiscal years ended December 2017. December 31, 2016 and December 20, 2015 DSpecimen Financial Statements: PepsiCo, Inc. Consolidated Statement of Equity PepsiCo. Inc. and Subsidiaries (in millions) Preferred de la 13 3017 Nur BR . 1 FO 1993 34 24 IS Captain of Val 1430 34 4,091 190 w (151 Ch 4076 14 Metained in . 42 4857 73 3339 62 1291 13.000) 78 700 THE 5 Osvede declared Balance und of year Acumulated Other Comprehe Balance beginning of a Other comprehensive income talep Balance end of yea Reached Stock Hance, besig of year Share purchases Shock optin eserie BSI, PSE and PEPonit nevemet Other Balance end nya Tutal Pep Commen Shareholders' Equity Nancontrolling latest Balance, heining of your Niet moment to controlling Distributions to enrolling in Currency mandatin adament Other, het Balance of year Total Equity 14461 (29,165) 11.045 104 110 LO7 SO 51 1623 Ielal 104 107 12.010 ca Includes total at benefit of million in 2016 and 5107 million 2015 See accompanying notes to the consolidated financial atent
