Consolidated Statement of Income PepsiCo, Inc.

and Subsidiaries Fiscal years ended December 29, 2012, December 31, 2011 and December 25, 2010 (in millions except per share amounts) 2012 Net Revenue Cost of sales Selling, general and administrative expenses Amortization of intangible assets Operating Profit Bottling equity income Interest expense Interest income and other Income before income taxes Provision for income taxes Net income Less: Net income attributable to noncontrolling interests Net Income Attributable to PepsiCo Net Income Attributable to PepsiCo per Common Share Basic Diluted Weighted-average common shares outstanding Basic Diluted Cash dividends declared per common share $ $ $ 65,492 $ 31,291 24,970 119 9,112 (899) 91 8,304 2,090 6,214 36 6,178 $ 2011 66,504 $ 31,593 25,145 133 9,633 (856) 57 8,834 2,372 6,462 19 6,443 $ 2010 57,838 26,575 22,814 117 8,332 735 (903) 68 8,232 1,894 6,338 18 6,320

$ $

3.96 $ 3.92 $ 1,557 1,575 2.1275 $

4.08 $ 4.03 $ 1,576 1,597 2.025 $

3.97 3.91 1,590 1,614 1.89

See accompanying notes to consolidated financial statements.

65

Consolidated Statement of Comprehensive Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 29, 2012, December 31, 2011 and December 25, 2010 (in millions)
2012 Pre-tax amounts Net income Other Comprehensive Income Currency translation adjustment Cash flow hedges: Net derivative losses Reclassification of net losses to net income Pension and retiree medical: Net prior service cost Net losses Unrealized gains on securities Other Total Other Comprehensive Income Comprehensive income Comprehensive income attributable to noncontrolling interests $ (32) (41) 18 722 $ 12 (11) 36 15 (20) (52) 18 36 737 6,951 (31) (50) 90 10 (32) (40) 58 $ 737 $ 737 Tax benefit/(expense) $ After-tax amounts 6,214

See accompanying notes to consolidated financial statements.

66

Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 29, 2012 and December 31, 2011 (in millions except per share amounts)
2012 ASSETS Current Assets Cash and cash equivalents $ Short-term investments 322 Accounts and notes receivable, net 7,041 Inventories 3,581 Prepaid expenses and other current assets 1,479 Total Current Assets 18,720 Property, Plant and Equipment, net 19,136 Amortizable Intangible Assets, net 1,781 Goodwill 16,971 Other nonamortizable intangible assets 14,744 Nonamortizable Intangible Assets 31,715 Investments in Noncontrolled Affiliates 1,633 Other Assets 1,653 Total Assets $ LIABILITIES AND EQUITY Current Liabilities Short-term obligations $ Accounts payable and other current liabilities 11,903 Income taxes payable 371 Total Current Liabilities 17,089 Long-Term Debt Obligations 23,544 Other Liabilities 6,543 Deferred Income Taxes 5,063 Total Liabilities 52,239 8,266 4,995 51,983 18,154 20,568 192 11,757 4,815 $ 6,205 74,638 $ 72,882 1,021 31,357 1,477 14,557 16,800 1,888 19,698 2,277 17,441 3,827 6,912 358 6,297 $ 4,067 2011

Commitments and Contingencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders Equity Common stock, par value 12/3 per share (authorized 3,600 shares, issued, net of repurchased common stock at par value: 1,544 and 1,565 shares, respectively) Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, in excess of par value (322 and 301 shares, respectively) Total PepsiCo Common Shareholders Equity 22,417 Noncontrolling interests 105 Total Equity 22,399 Total Liabilities and Equity $ 74,638 $ 72,882 311 20,899 20,704 43,158 (5,487) (19,458) 40,316 (6,229) (17,870) 41 (164) 41 (157)

26 4,178

26 4,461

See accompanying notes to consolidated financial statements. 69

Consolidated Statement of Equity PepsiCo, Inc. and Subsidiaries Fiscal years ended December 29, 2012, December 31, 2011 and December 25, 2010 (in millions)
2012 Shares Preferred Stock 0.8 Repurchased Preferred Stock Balance, beginning of year Redemptions Balance, end of year Common Stock Balance, beginning of year 1,565 Repurchased common stock (21) Shares issued in connection with our acquisitions of PBG and PAS Balance, end of year 1,544 Capital in Excess of Par Value Balance, beginning of year 4,461 Stock-based compensation expense 278 Stock option exercises/RSUs converted (a) Withholding tax on RSUs converted Equity issued in connection with our acquisitions of PBG and PAS Other (60) Balance, end of year 4,178 Retained Earnings Balance, beginning of year 40,316 Net income attributable to PepsiCo 6,178 Cash dividends declared common Cash dividends declared preferred Cash dividends declared RSUs Other Balance, end of year 43,158 Accumulated Other Comprehensive Loss Balance, beginning of year Currency translation adjustment 742 Cash flow hedges, net of tax: Net derivative losses (40) (83) (46) (1,529) 312 (6,229) (3,630) (3,794) 40,316 37,090 6 (3,312) (1) (23) 6,443 (3,192) (1) (24) 6,320 (3,028) (1) (12) 37,090 33,805 4,461 4,527 25 95 (431) (70) 326 (361) (56) 299 (500) (68) 4,451 4,527 250 26 1,565 26 1,582 26 (17) (67) 83 (1) 1 26 1,582 26 1,566 26 (0.6) (7) (164) (0.6) (7) (157) (0.6) (5) (150) (0.6) (157) (0.6) (150) (0.6) (145) $ 41 0.8 $ 41 0.8 $ 41 Amount Shares 2011 Amount Shares 2010 Amount

Reclassification of net losses to net income 58 Pension and retiree medical, net of tax: Net pension and retiree medical losses Reclassification of net losses to net income 421 Unrealized gains/(losses) on securities, net of tax Other 36 Balance, end of year Repurchased Common Stock Balance, beginning of year Share repurchases Stock option exercises 24 Other 2 Balance, end of year Total PepsiCo Common Shareholders Equity Noncontrolling Interests Balance, beginning of year 311 Net income attributable to noncontrolling interests Distributions to noncontrolling interests, net Currency translation adjustment (5) Acquisitions and divestitures Other, net Balance, end of year 105 Total Equity $ 22,399 $ 20,899 $ 21,476 311 312 (4) 1 (200) 65 (57) (13) (326) 36 (37) 312 19 (24) 638 18 (6) (322) 143 (19,458) 22,417 2 (301) 108 (17,870) 20,704 (15) (284) 129 (16,740) 21,273 1,488 20 1,251 24 1,487 (301) (47) (17,870) (3,219) (284) (39) (16,740) (2,489) (217) (76) (13,379) (4,977) (5,487) (11) (6,229) (61) (3,630) 18 133 (8) 166 23 (493) (1,110) (280) 9 50

(a) Includes total tax benefits of $84 million in 2012, $43 million in 2011 and $75 million in 2010. See accompanying notes to consolidated financial statements.