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Reconciliation of GAAP and Non-GAAP Information

The financial measures listed below are not measures defined by generally accepted accounting principles. However, we believe investors should consider these measures as they are more indicative of our ongoing performance and with how management evaluates our operational results and trends. Specifically, investors should consider the following:

Operating Profit Reconciliation

                 
   
2008
   
2007
   
Growth
Total PepsiCo Reported Operating Profit
$
6,935
 
$
7,170
   
(3
)%
Impact of Mark-to-Market Net Losses/(Gains) on Commodity Hedges
 
346
   
(19
)
   
Impact of Restructuring and Impairment Charges
 
543
   
102
     
Total Operating Profit Excluding above Items
 
7,824
   
7,253
   
8
%
Impact of Other Corporate Unallocated
 
651
   
772
     
PepsiCo Total Division Operating Profit Excluding above Items
$
8,475
 
$
8,025
   
6
%

Net Income Reconciliation

                 
   
2008
   
2007
   
Growth
Reported Net Income
$
5,142
 
$
5,658
   
(9
)%
Impact of Mark-to-Market Net Losses/(Gains) on Commodity Hedges
 
223
   
(12
)
   
Impact of Restructuring and Impairment Charges
 
408
   
70
     
Impact of PBG Restructuring and Impairment Charges
 
114
   
     
Impact of Tax Benefits
 
   
(129
)
   
Net Income Excluding above Items
$
5,887
 
$
5,587
   
5
%

Diluted EPS Reconciliation

                       
   
2008
   
2007
   
2008 Growth
   
2006
Reported Diluted EPS
$
3.21
 
$
3.41
   
(6
)%
$
3.34
Impact of Mark-to-Market Net Losses/(Gains) on Commodity Hedges
 
0.14
   
(0.01
)
       
0.01
Impact of Restructuring and Impairment Charges
 
0.25
   
0.04
         
0.03
Impact of PBG’s Restructuring and Impairment Charges
 
0.07
   
         
Impact of Tax Benefits
 
   
(0.08
)
       
(0.37
)
Diluted EPS Excluding above Items
$
3.68
*
$
3.37
*
 
9
%
$
3.01
* Does not sum due to rounding

2008 Operating Profit Growth Reconciliation

                 
   
PepsiCo Americas Foods
   
PepsiCo Americas Beverages
   
PepsiCo International
Reported Operating Profit Growth
 
8
%
 
(19
)%
 
13
%
Impact of Restructuring and Impairment Charges
 
3
   
11
   
3
Operating Profit Growth Excluding above Items
 
10
%*
 
(7
)%*
 
16
%
* Does not sum due to rounding
 

ROIC Reconciliation

     
   
2008
Reported ROIC
 
26
%
Impact of Mark-to-Market Net Impact on Commodity Hedges
 
1
Impact of Restructuring and Impairment Charges
 
2
Impact of PBG’s Restructuring and Impairment Charges
 
1
Impact of Tax Benefits
 
(0.5
)
ROIC Excluding above Items
 
29
%*
* Does not sum due to rounding