Summary of Third Quarter 2010 Performance*

Constant Currency*

% Growth

Volume

Net
Revenue

Core*
Division
Operating
Profit

Net
Revenue

Core*
Division
Operating
Profit

Operating
Profit

PAF

-

4

10

4

10

10

FLNA

(2)

1

10

1.5

10

10

QFNA

(1)

(3.5)

(5.5)

(3)

(5)

(5)

LAF

5

12

22

10

20

20

PAB

13

118

79

118

77

68

Europe

 3 / 17**

55

45

47

38

33

AMEA

16 / 4**

13

(19)

15

(18)

(18)

Total Divisions

  2 / 11**

41

29

40

27

24

Total PepsiCo

25***

* The above core results and core constant currency results are non-GAAP financial measures that exclude merger and
integration costs and inventory fair value adjustments associated with our acquisitions of The Pepsi Bottling Group, Inc.
(PBG) and PepsiAmericas, Inc. (PAS).  For more information about our core results and core constant currency results,
see "Reconciliation of GAAP and Non-GAAP Information" in the attached exhibits.  Please refer to the Glossary for
definitions of "Constant Currency" and "Core".

** Snacks/Beverage.

*** The reported operating profit growth was impacted by items excluded from our core results in both 2010 and 2009,
including the net impact of mark-to-market gains on hedges and, with respect to the bottling acquisitions, merger and
integration costs and inventory fair value adjustments in 2010.  Please refer to the Glossary for the definition of "Core".

PepsiCo, Inc. and Subsidiaries
Summary of PepsiCo Third Quarter 2010 Results
(unaudited)

12 Weeks Ended 9/4/10

36 Weeks Ended 9/4/10

Reported
Growth (%)

Core*
Growth (%)

Core Constant
Currency* Growth
(%)

Reported
Growth (%)

Core*
Growth (%)

Core Constant
Currency* Growth
(%)

Volume (Servings)

8

8

6

6

Net Revenue

40

40

41

33

33

31

Division Operating
  Profit

24

27

29

11

22

22

Total Operating
  Profit

25

30

1.5

24

Net Income
  Attributable to
  PepsiCo

12

16

17

10

13

13

Earnings per Share
  (EPS)

9

13

15

7

10

10

*Core results and core constant currency results are financial measures that are not in accordance with Generally
Accepted Accounting Principles (GAAP) and exclude the commodity mark-to-market net impact included in
corporate unallocated expenses, a one-time net charge related to the currency devaluation in Venezuela, a
contribution to The PepsiCo Foundation, Inc., an asset write-off charge for SAP software and certain restructuring
actions in 2009.  Additionally, with respect to our acquisitions of The Pepsi Bottling Group, Inc. (PBG) and
PepsiAmericas, Inc. (PAS), core results also exclude our gain on previously held equity interests, merger and
integration costs, as well as our share of PBG's and PAS's respective merger and integration costs, and certain
inventory fair value adjustments.  Core growth, on a constant currency basis, assumes constant foreign currency
exchange rates used for translation based on the rates in effect for the comparable period during 2009.  In addition,
core constant currency EPS growth is computed by adjusting core EPS growth by the after-tax foreign currency
translation impact on core operating profit growth using PepsiCo's core effective tax rate.  See schedules A-7
through A-16 for a discussion of these items and reconciliations to the most directly comparable financial measures
in accordance with GAAP.

A – 1

PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Statement of Income
(in millions, except per share amounts, and unaudited)

12 Weeks Ended

36 Weeks Ended

9/4/10

9/5/09

Change

9/4/10

9/5/09

Change

Net Revenue

$15,514

$11,080

40%

$39,683

$29,935

33%

Costs and Expenses

 Cost of sales

7,008

5,181

35%

18,216

13,806

32%

 Selling, general and administrative
  expenses

5,676

3,649

56%

15,288

10,077

52%

 Amortization of intangible assets

30

18

78%

78

42

88%

Operating Profit

2,800

2,232

25%

6,101

6,010

1.5%

Bottling Equity Income

10

146

(93)%

728

290

151%

Interest Expense

(169)

(86)

96%

(495)

(285)

73%

Interest Income

18

16

15%

26

44

(41)%

Income before Income Taxes

2,659

2,308

15%

6,360

6,059

5%

Provision for Income Taxes

729

575

27%

1,383

1,517

(9)%

Net Income

1,930

1,733

11%

4,977

4,542

10%

Less:  Net Income Attributable to
  Noncontrolling Interests

8

16

(49)%

22

30

(29)%

Net Income Attributable to PepsiCo

$  1,922

$  1,717

12%

$ 4,955

$  4,512

10%

Diluted

Net Income Attributable to
  PepsiCo per Common Share

$1.19

$1.09

9%

$3.06

$2.87

7%

Average Shares Outstanding

1,612

1,577

1,618

1,573

A – 2

PepsiCo, Inc. and Subsidiaries
Supplemental Financial Information
(in millions, unaudited)

12 Weeks Ended

36 Weeks Ended

9/4/10

9/5/09

Change

9/4/10

9/5/09

Change

Net Revenue

Frito-Lay North America

$  3,244

$ 3,198

1.5%

$  9,506

$  9,336

2%

Quaker Foods North America

407

418

(3)%

1,266

1,299

(3)%

Latin America Foods

1,542

1,396

10%

4,063

3,641

12%

 PepsiCo Americas Foods

5,193

5,012

4%

14,835

14,276

4%

 PepsiCo Americas Beverages

5,792

2,656

118%

14,105

7,362

92%

 Europe

2,762

1,874

47%

6,171

4,463

38%

 Asia, Middle East & Africa

1,767

1,538

15%

4,572

3,834

19%

Total Net Revenue

$15,514

$11,080

40%

$39,683

$29,935

33%

Operating Profit

Frito-Lay North America

$   907

$   822

10%

$2,522

$2,302

10%

Quaker Foods North America

126

131

(5)%

393

438

(11)%

Latin America Foods

238

199

20%

616

603

2%

 PepsiCo Americas Foods

1,271

1,152

10%

3,531

3,343

6%

 PepsiCo Americas Beverages

1,017

607

68%

2,042

1,650

24%

 Europe

423

318

33%

802

673

19%

 Asia, Middle East & Africa

244

297

(18)%

681

670

2%

Division Operating Profit

2,955

2,374

24%

7,056

6,336

11%

Corporate Unallocated

 Net Impact of Mark-to-Market on
  Commodity Hedges

16

29

(48)%

58

191

(70)%

 PBG/PAS Merger and
  Integration Costs

(16)

(1)

n/m

(128)

(1)

n/m

 Venezuela Currency Devaluation

−

−

−

(129)

−

n/m

 Asset Write-Off for SAP Software

−

−

−

(145)

−

n/m

 Foundation Contribution

−

−

−

(100)

−

n/m

 Other

(155)

(170)

(9)%

(511)

(516)

(1)%

(155)

(142)

10%

(955)

(326)

193%

Total Operating Profit

$2,800

$2,232

25%

$6,101

$6,010

1.5%

   n/m = not meaningful

A – 3

PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(in millions)

36 Weeks Ended

9/4/10

9/5/09

(unaudited)

Operating Activities

   Net income

$ 4,977

$ 4,542

   Depreciation and amortization

1,580

1,083

   Stock-based compensation expense

191

159

   2009 restructuring and impairment charges

−

36

   Cash payments for 2009 restructuring charges

(29)

(183)

   PBG/PAS merger and integration costs

545

−

   Cash payments for PBG/PAS merger and integration costs

(272)

−

   Gain on previously held equity interests in PBG and PAS

(958)

−

   Asset write-off

145

−

   Non-cash foreign exchange loss related to Venezuela devaluation

120

−

   Excess tax benefits from share-based payment arrangements

(73)

(16)

   Pension and retiree medical plan contributions

(1,350)

(1,130)

   Pension and retiree medical plan expenses

310

290

   Bottling equity income, net of dividends

37

(222)

   Deferred income taxes and other tax charges and credits

291

59

   Change in accounts and notes receivable

(1,287)

(459)

   Change in inventories

224

(128)

   Change in prepaid expenses and other current assets

(14)

17

   Change in accounts payable and other current liabilities

762

(241)

   Change in income taxes payable

787

914

   Other, net

(198)

(318)

Net Cash Provided by Operating Activities

5,788

4,403

Investing Activities

   Capital spending

(1,670)

(1,138)

   Sales of property, plant and equipment

55

33

   Acquisitions of PBG and PAS, net of cash and cash equivalents acquired

(2,833)

−

   Acquisition of manufacturing and distribution rights from Dr Pepper Snapple
    Group, Inc. (DPSG)

(900)

−

   Other acquisitions and investments in noncontrolled affiliates

(36)

(300)

   Divestitures

−

100

   Cash restricted for pending acquisitions

(8)

30

   Short-term investments, net

(40)

30

   Other investing, net

(12)

−

Net Cash Used for Investing Activities

(5,444)

(1,245)

Financing Activities

   Proceeds from issuances of long-term debt

4,215

1,057

   Payments of long-term debt

(73)

(188)

   Short-term borrowings, net

3,379

(997)

   Cash dividends paid

(2,218)

(2,032)

   Share repurchases – common

(4,418)

−

   Share repurchases – preferred

(3)

(4)

   Proceeds from exercises of stock options

700

187

   Excess tax benefits from share-based payment arrangements

73

16

   Acquisition of noncontrolling interest in Lebedyansky from PBG

(159)

−

   Other financing

(6)

(26)

Net Cash Provided by/(Used for) Financing Activities

1,490

(1,987)

Effect of Exchange Rate Changes on Cash and Cash Equivalents

(200)

19

Net Increase in Cash and Cash Equivalents

1,634

1,190

Cash and Cash Equivalents – Beginning of year

3,943

2,064

Cash and Cash Equivalents – End of period

$ 5,577

$ 3,254

Issuance of common stock and equity awards in connection with our acquisitions of
PBG and PAS, as reflected in investing and financing activities

$4,451

$−

A – 4

PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
(in millions)

9/4/10

12/26/09

Assets

(unaudited)

Current Assets

 Cash and cash equivalents

$  5,577

$  3,943

 Short-term investments

232

192

 Accounts and notes receivable, net

7,245

4,624

 Inventories

   Raw materials

1,689

1,274

   Work-in-process

183

165

   Finished goods

1,487

1,179

3,359

2,618

 Prepaid expenses and other current assets

1,488

1,194

       Total Current Assets

17,901

12,571

Property, plant and equipment, net

18,534

12,671

Amortizable intangible assets, net

2,053

841

Goodwill

13,905

6,534

Other nonamortizable intangible assets

11,709

1,782

       Nonamortizable Intangible Assets

25,614

8,316

Investments in noncontrolled affiliates

1,401

4,484

Other assets

1,199

965

         Total Assets

$ 66,702

$ 39,848

Liabilities and Equity

Current Liabilities

 Short-term obligations

$  5,756

$    464

 Accounts payable and other current liabilities

10,699

8,127

 Income taxes payable

662

165

       Total Current Liabilities

17,117

8,756

Long-term debt obligations

18,445

7,400

Other liabilities

7,039

5,591

Deferred income taxes

3,865

659

       Total Liabilities

46,466

22,406

Commitments and Contingencies

Preferred stock, no par value

41

41

Repurchased preferred stock

(148)

(145)

PepsiCo Common Shareholders' Equity

 Common stock

31

30

 Capital in excess of par value

4,535

250

 Retained earnings

36,487

33,805

 Accumulated other comprehensive loss

(4,358)

(3,794)

 Repurchased common stock

(16,650)

(13,383)

       Total PepsiCo Common Shareholders' Equity

20,045

16,908

Noncontrolling interests

298

638

       Total Equity

20,236

17,442

         Total Liabilities and Equity

$ 66,702

$ 39,848

A – 5

PepsiCo, Inc. and Subsidiaries
Supplemental Share and Stock-Based Compensation Data
(in millions, except dollar amounts, and unaudited)

12 Weeks Ended

36 Weeks Ended

9/4/10

9/5/09

9/4/10

9/5/09

Beginning Net Shares Outstanding

1,594

1,557

1,565

1,553

Shares Issued in Connection with our Acquisitions of PBG
 and PAS

−

−

67

−

Options Exercised/Restricted Stock Units Converted

5

2

19

6

Shares Repurchased

(16)

−

(68)

−

Ending Net Shares Outstanding

1,583

1,559

1,583

1,559

Weighted Average Basic

1,588

1,558

1,593

1,557

Dilutive securities:

 Options

18

14

19

12

 Restricted Stock Units

5

4

5

3

 ESOP Convertible Preferred Stock/Other

1

1

1

1

Weighted Average Diluted

1,612

1,577

1,618

1,573

Average Share Price for the period

$64.13

$56.07

$63.80

$52.77

Growth Versus Prior Year

14%

(16)%

21%

(24)%

Options Outstanding

113

112

115

114

Options in the Money

81

81

90

67

Dilutive Shares from Options

18

14

19

12

Dilutive Shares from Options as a % of Options in the Money

22%

17%

21%

18%

Average Exercise Price of Options in the Money

$48.27

$46.26

$48.63

$44.42

Restricted Stock Units Outstanding

10

6

9

6

Dilutive Shares from Restricted Stock Units

5

4

5

3

Average Intrinsic Value of Restricted Stock Units
 Outstanding*

$63.07

$61.02

$62.15

$61.05

*Weighted-average intrinsic value at grant date.

A – 6

Reconciliation of GAAP and Non-GAAP Information

(unaudited)

Division operating profit, core results and core constant currency results are non-GAAP financial measures as they
exclude certain items noted below.  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.  

Commodity mark-to-market net impact

In the 12 and 36 weeks ended September 4, 2010, we recognized $16 million and $58 million, respectively, of mark-to-
market net gains on commodity hedges in corporate unallocated expenses.  In the 12 and 36 weeks ended September 5,
2009, we recognized $29 million and $191 million, respectively, of mark-to-market net gains on commodity hedges in
corporate unallocated expenses.  In the year ended December 26, 2009, we recognized $274 million of mark-to-market
net gains on commodity hedges in corporate unallocated expenses.  We centrally manage commodity derivatives on
behalf of our divisions.  Certain of these commodity derivatives do not qualify for hedge accounting treatment and are
marked to market with the resulting gains and losses recognized in corporate unallocated expenses.  These gains and
losses are subsequently reflected in division results when the divisions take delivery of the underlying commodity.

PBG/PAS merger and integration charges

In the 12 weeks ended September 4, 2010, we incurred merger and integration charges of $69 million related to our
acquisitions of PBG and PAS, including $38 million recorded in the PAB segment, $15 million recorded in the Europe
segment and $16 million recorded in corporate unallocated expenses.  In the 36 weeks ended September 4, 2010, we
incurred merger and integration charges of $536 million related to our acquisitions of PBG and PAS, including $334 million
recorded in the PAB segment, $44 million recorded in the Europe segment, $128 million recorded in corporate unallocated
expenses and $30 million recorded in interest expense.  These charges are being incurred to help create a more fully
integrated supply chain and go-to-market business model, to improve the effectiveness and efficiency of the distribution of
our brands and to enhance our revenue growth.  These charges also include closing costs, one-time financing costs and
advisory fees related to the acquisitions.  In addition, in the 36 weeks ended September 4, 2010, we recorded $9 million of
charges, representing our share of the respective merger costs of PBG and PAS, recorded in bottling equity income.  In
the 12 and 36 weeks ended September 5, 2009, we incurred merger-related charges of $1 million related to these
acquisitions, as well as an additional $8 million of merger-related charges, representing our share of the respective
merger costs of PBG and PAS, recorded in bottling equity income.  In the year ended December 26, 2009, we incurred
$50 million of costs associated with these acquisitions, as well as an additional $11 million of costs representing our share
of the respective merger costs of PBG and PAS, recorded in bottling equity income.

2009 restructuring and impairment charges

As a result of our previously initiated Productivity for Growth program, in the 36 weeks ended September 5, 2009, we
recorded $36 million of restructuring and impairment charges.  The program includes actions in all segments of the
business, including the closure of six plants that we believe will increase cost competitiveness across the supply chain,
upgrade and streamline our product portfolio and simplify the organization for more effective and timely decision-making.

Gain on previously held equity interests in PBG and PAS

In the first quarter of 2010, in connection with our acquisitions of PBG and PAS, we recorded a gain on our previously held
equity interests of $958 million, comprising $735 million which is non-taxable and recorded in bottling equity income and
$223 million related to the reversal of deferred tax liabilities associated with these previously held equity interests.

Inventory fair value adjustments

In the 12 weeks ended September 4, 2010, in the PAB segment, we recorded $17 million of incremental costs,
substantially all in cost of sales, related to fair value adjustments to the acquired inventory and other related hedging
contracts included in PBG's and PAS's balance sheets at the acquisition date.  In the 36 weeks ended September 4,
2010, we recorded $374 million of incremental costs, substantially all in cost of sales, related to fair value adjustments to
the acquired inventory and other related hedging contracts included in PBG's and PAS's balance sheets at the acquisition
date, including $334 million recorded in the PAB segment and $40 million recorded in the Europe segment.

Venezuela currency devaluation

As of the beginning of our 2010 fiscal year, we recorded a one-time $120 million net charge related to our change to
hyperinflationary accounting for our Venezuelan businesses and the related devaluation of the bolivar fuerte (bolivar).  
$129 million of this net charge was recorded in corporate unallocated expenses, with the balance (income of $9 million)
recorded in our PAB segment.  

A – 7

Reconciliation of GAAP and Non-GAAP Information (cont.)

(unaudited)

Asset write-off for SAP software

In the first quarter of 2010, we recorded a $145 million charge related to a change in scope of one release in our ongoing
migration to SAP software.  This change was driven, in part, by a review of our North America systems strategy following
our acquisitions of PBG and PAS.  This change does not impact our overall commitment to continue our implementation
of SAP across our global operations over the next few years.

Foundation contribution

In the first quarter of 2010, we made a $100 million contribution to The PepsiCo Foundation, Inc. (Foundation), in order to
fund charitable and social programs over the next several years.  This contribution was recorded in corporate unallocated
expenses.

Additionally, management operating cash flow is the primary measure management uses to monitor cash flow
performance.  This is not a measure defined by GAAP.  Since net capital spending is essential to our product innovation
initiatives and maintaining our operational capabilities, we believe that it is a recurring and necessary use of cash.  As
such, we believe investors should also consider net capital spending when evaluating our cash from operating activities.

We are not able to reconcile our full-year projected 2010 core constant currency EPS to our full-year projected 2010
reported results because we are unable to predict the 2010 full-year impact of foreign exchange or the mark-to-market
net gains or losses on commodity hedges due to the unpredictability of future changes in foreign exchange rates and
commodity prices.  Therefore, we are unable to provide a reconciliation of these measures.

A – 8

Reconciliation of GAAP and Non-GAAP Information (cont.)
($ in millions, except per share amounts, unaudited)

Operating Profit Growth Reconciliation

12 Weeks
Ended

36 Weeks
Ended

9/4/10

9/4/10

Division Operating Profit Growth

24%

11%

Impact of Corporate Unallocated

1

(10)

Reported Total Operating Profit Growth

25%

1.5%*

*Does not sum due to rounding.

Effective Tax Rate Reconciliation

12 Weeks Ended

9/4/10

Pre-Tax
Income

Income Taxes

Effective
Tax Rate

Reported Effective Tax Rate

$2,659

$(729)

27.4%

Mark-to-Market Net Gains

(16)

6

PBG/PAS Merger and Integration Charges

69

(18)

Inventory Fair Value Adjustments

17

(6)

Core Effective Tax Rate

$2,729

$(747)

27.4%

Net Income Attributable to PepsiCo Reconciliation

12 Weeks Ended

9/4/10

9/5/09

Growth

Reported Net Income Attributable to PepsiCo

$1,922

$1,717

12%

Mark-to-Market Net Gains

(10)

(19)

PBG/PAS Merger and Integration Charges

51

8

Inventory Fair Value Adjustments

11

–

Core Net Income Attributable to PepsiCo

$1,974

  $1,705*

16%

Impact of Foreign Currency Translation

1

Core Constant Currency Net Income Attributable to PepsiCo

17%

*Does not sum due to rounding.

Diluted EPS Reconciliation

52 Weeks
Ended

12/26/09

Reported Diluted EPS       

$ 3.77

Mark-to-Market Net Gains   

(0.11)

Restructuring and Impairment Charges 

0.02

PBG/PAS Merger Costs     

0.03

Core Diluted EPS  

$ 3.71

Diluted EPS Reconciliation

12 Weeks Ended

9/4/10

9/5/09

Growth

Reported Diluted EPS

$ 1.19

$ 1.09

9%

Mark-to-Market Net Gains

(0.01)

(0.01)

PBG/PAS Merger and Integration Charges

0.03

0.01

Inventory Fair Value Adjustments

0.01

–

Core Diluted EPS

1.22

1.08*

13%

Impact of Foreign Currency Translation

0.01

–

1

Core Constant Currency Diluted EPS

$ 1.24*

$ 1.08

15%*

*Does not sum due to rounding.

A – 9

Reconciliation of GAAP and Non-GAAP Information (cont.)
($ in millions, except as otherwise noted, unaudited)

Net Cash Provided by Operating Activities Reconciliation

36 Weeks
Ended

36 Weeks
Ended

9/4/10

9/5/09

Change

Net Cash Provided by Operating Activities

$ 5,788

$ 4,403

31%

Capital Spending

(1,670)

(1,138)

Sales of Property, Plant and Equipment

55

33

Management Operating Cash Flow

4,173

3,298

27%

Discretionary Pension Contributions (after-tax)

768

640

Payments Related to 2009 Restructuring Charges

29

183

PBG/PAS Merger and Integration Payments (after-tax)

233

–

Foundation Contribution (after-tax)

64

–

Capital Investments Related to the PBG/PAS Integration

33

–

Management Operating Cash Flow Excluding above Items

$ 5,300

$ 4,121

29%

Net Cash Provided by Operating Activities Reconciliation (in whole dollars)

2010
Guidance

Net Cash Provided by Operating Activities

~$ 8.0 billion

Net Capital Spending

~(3.3) billion

Management Operating Cash Flow

~4.7 billion

Payments Related to 2009 Restructuring Charges

0.03 billion

PBG/PAS Merger and Integration Payments

~0.4 billion

Foundation Contribution

0.1 billion

Discretionary Pension Contributions

1.2 billion

Capital Investments Related to the PBG/PAS Integration

~0.2 billion

Less: Cash Tax Benefits Related to the above Items

~(0.6) billion

Management Operating Cash Flow Excluding above Items

~$ 6.1* billion

*Does not sum due to rounding.

A – 10

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (cont.)

Certain Line Items

12 and 36 Weeks Ended September 4, 2010

(in millions, except per share amounts, and unaudited)

GAAP
Measure

Non-Core Adjustments

Non-GAAP
Measure

Reported

Core*

12 Weeks
Ended
9/4/10

Gain on previously
held equity
interests in PBG
and PAS

Inventory fair
value adjustments

PBG/PAS merger
and integration
charges

Asset write-off
for SAP software

Foundation
contribution

Venezuela
currency
devaluation

Commodity
mark-to-market
net gains

12 Weeks
Ended
9/4/10

Cost of sales

$   7,008

$      -

$   (17)

$       -

$      -

$    -

$     -

$         -

$    6,991

Selling, general and administrative expenses

$   5,676

$      -

$       -

$   (69)

$      -

$    -

$     -

$      16

$    5,623

Operating profit

$   2,800

$      -

$     17

$     69

$      -

$    -

$     -

$    (16)

$    2,870

Provision for income taxes

$      729

$      -

$       6

$     18

$      -

$    -

$     -

$      (6)

$       747

Net income attributable to PepsiCo

$   1,922

$      -

$     11

$     51

$      -

$    -

$     -

$    (10)

$    1,974

Net income attributable to PepsiCo per common share - diluted

$     1.19

$      -

$  0.01

$  0.03

$      -

$    -

$     -

$ (0.01)

$      1.22

GAAP
Measure

Non-Core Adjustments

Non-GAAP
Measure

Reported

Core*

36 Weeks
Ended
9/4/10

Gain on previously
held equity
interests in PBG
and PAS

Inventory fair
value adjustments

PBG/PAS merger
and integration
charges

Asset write-off
for SAP software

Foundation
contribution

Venezuela
currency
devaluation

Commodity
mark-to-market
net gains

36 Weeks
Ended
9/4/10

Cost of sales

$ 18,216

$        -

$  (371)

$       -

$        -

$       -

$        -

$        -

$  17,845

Selling, general and administrative expenses

$ 15,288

$        -

$      (3)

$ (506)

$  (145)

$ (100)

$  (120)

$     58

$  14,472

Operating profit

$   6,101

$        -

$   374

$   506

$   145

$   100

$   120

$    (58)

$    7,288

Bottling equity income

$      728

$  (735)

$        -

$       9

$        -

$        -

$        -

$        -

$           2

Interest expense

$     (495)

$        -

$        -

$     30

$        -

$        -

$        -

$        -

$      (465)

Provision for income taxes

$   1,383

$   223

$     55

$   114

$     53

$     36

$        -

$    (22)

$    1,842

Net income attributable to PepsiCo

$   4,955

$  (958)

$   319

$   431

$     92

$     64

$   120

$    (36)

$    4,987

Net income attributable to PepsiCo per common share - diluted

$     3.06

$ (0.60)

$  0.20

$  0.27

$  0.06

$  0.04

$  0.07

$ (0.02)

$      3.08

*Core results are financial measures that are not in accordance with GAAP and exclude the above non-core adjustments.  See schedules A-7 and A-8 for a discussion of each of these non-core adjustments.

A-11

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (cont.)

Certain Line Items

12 and 36 Weeks Ended September 5, 2009

(in millions, except per share amounts, and unaudited)

GAAP
Measure

Non-Core Adjustments

Non-GAAP
Measure

Reported

Core*

12 Weeks
Ended
9/5/09

2009
Restructuring and
Impairment
Charges

PBG/PAS merger
and integration
charges

Commodity
mark-to-market
net gains

12 Weeks
Ended 9/5/09

Selling, general and administrative expenses

$   3,649

$      -

$     (1)

$        29

$   3,677

Operating profit

$   2,232

$      -

$      1

$      (29)

$   2,204

Bottling equity income

$      146

$      -

$      8

$          -

$      154

Provision for income taxes

$      575

$      -

$      1

$      (10)

$      567

**

Net income attributable to PepsiCo

$   1,717

$      -

$      8

$      (19)

$   1,705

**

Net income attributable to PepsiCo per common share - diluted

$     1.09

$      -

$ 0.01

$   (0.01)

$     1.08

**

GAAP
Measure

Non-Core Adjustments

Non-GAAP
Measure

Reported

Core*

36 Weeks
Ended
9/5/09

2009
Restructuring and
Impairment
Charges

PBG/PAS merger
and integration
charges

Commodity
mark-to-market
net gains

36 Weeks
Ended 9/5/09

Selling, general and administrative expenses

$ 10,077

$    (36)

$     (1)

$     191

$ 10,231

Operating profit

$   6,010

$      36

$      1

$    (191)

$   5,856

Bottling equity income

$      290

$        -

$      8

$          -

$      298

Provision for income taxes

$   1,517

$       7

$      1

$      (67)

$   1,459

**

Net income attributable to PepsiCo

$   4,512

$     29

$      8

$    (124)

$   4,424

**

Net income attributable to PepsiCo per common share - diluted

$     2.87

$  0.02

$ 0.01

$   (0.08)

$     2.81

**

*Core results are financial measures that are not in accordance with GAAP and exclude the above non-core adjustments.
 See schedules A-7 and A-8 for a discussion of each of these non-core adjustments.

**Does not sum due to rounding.

A-12

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (cont.)

Operating Profit by Division

12 and 36 Weeks Ended September 4, 2010

(in millions and unaudited)

GAAP
Measure

Non-Core Adjustments

Non-GAAP
Measure

Reported

Core*

Operating Profit

12 Weeks
Ended
9/4/10

Inventory fair
value adjustments

PBG/PAS merger
and integration
charges

Asset write-off for
SAP software

Foundation
contribution

Venezuela
currency
devaluation

Commodity
mark-to-market
net gains

12 Weeks
Ended
9/4/10

Frito-Lay North America

$     907

$     -

$     -

$     -

$      -

$     -

$     -

$   907

Quaker Foods North America

126

-

-

-

-

-

-

126

Latin America Foods

238

-

-

-

-

-

-

238

  PepsiCo Americas Foods

1,271

-

-

-

-

-

-

1,271