Faster, stronger, better. Annual report 2019 creating more smiles with every sip

143

---

OPERATING PROFIT RECONCILIATION
Year Ended
December 28, 2019
December 29, 2018
% Change
Reported operating profit, GAAP measure
$ 10,291
$ 10,110
2%
Mark-to-market net impact
(112)
163
Restructuring and impairment charges
368
272
Inventory fair value adjustments and merger and 
integration charges
55
75
Core operating profit, non-GAAP measure
$ 10,602
$ 10,620
—%
DILUTED EPS RECONCILIATION
Year Ended
December 28, 2019
December 29, 2018
% Change
Reported diluted EPS, GAAP measure
$ 5.20
$ 8.78
(41)%
Mark-to-market net impact
(0.06)
0.09
Restructuring and impairment charges
0.21
0.18
Inventory fair value adjustments and merger and 
integration charges
0.03
0.05
Pension-related settlement charges
0.15
—
Net tax related to the TCJ Act
(0.01)
(0.02)
Other net tax benefits
—
(3.55)
Charges related to cash tender and exchange offers
—
0.13
Core diluted EPS, non-GAAP measure
$ 5.53
$ 5.66
(2)%
NET CASH PROVIDED BY OPERATING ACTIVITIES RECONCILIATION
Year Ended
December 28, 2019
December 29, 2018
% Change
Net cash provided by operating activities, GAAP measure
$ 9,649
$ 9,415
2.5%
Capital spending
(4,232)
(3,282)
Sales of property, plant and equipment
170
134
Free cash flow, non-GAAP measure
$ 5,587
$ 6,267
(11)%
NET REVENUE GROWTH RECONCILIATION
Year Ended December 28, 2019
Reported
% change,
GAAP measure
Impact of
Organic
% change, 
non-GAAP 
measure
Foreign 
exchange 
translation
Acquisitions
and divestitures
PepsiCo
4%
2
(1)
4.5%
Developing and emerging markets
2%
4
2
8%
Developed markets
4.5%
1
(2)
3%
Note — Dollars are presented in millions, except per share amounts. Certain amounts above may not sum due to rounding.
2019 PepsiCo Annual Report