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PBG » Topics » Bottler Incentives.

This excerpt taken from the PBG 8-K filed Sep 16, 2009.
Bottler Incentives – PepsiCo and other brand owners, at their discretion, provide us with various forms of bottler incentives. These incentives cover a variety of initiatives, including direct marketplace support and advertising support. We classify bottler incentives as follows:
 
•  Direct marketplace support represents PepsiCo’s and other brand owners’ agreed-upon funding to assist us in offering sales and promotional discounts to retailers and is generally recorded as an adjustment to cost of sales. If the direct marketplace support is a reimbursement for a specific, incremental and identifiable program, the funding is recorded as an offset to the cost of the program either in net revenues or selling, delivery and administrative expenses.
 
•  Advertising support represents agreed-upon funding to assist us with the cost of media time and promotional materials and is generally recorded as an adjustment to cost of sales. Advertising support that represents reimbursement for a specific, incremental and identifiable media cost, is recorded as a reduction to advertising and marketing expenses within selling, delivery and administrative expenses.

23

Table of Contents

 
Total bottler incentives recognized as adjustments to net revenues, cost of sales and selling, delivery and administrative expenses in our Consolidated Statements of Operations were as follows:
 
                         
    Fiscal Year Ended  
    2008     2007     2006  
Net revenues
  $ 93     $ 66     $ 67  
Cost of sales
    586       626       612  
Selling, delivery and administrative expenses
    57       67       70  
                         
Total bottler incentives
  $ 736     $ 759     $ 749  
                         
 
These excerpts taken from the PBG 10-K filed Feb 20, 2009.
Bottler Incentives – PepsiCo and other brand owners, at their discretion, provide us with various forms of bottler incentives. These incentives cover a variety of initiatives, including direct marketplace support and advertising support. We classify bottler incentives as follows:
 
•  Direct marketplace support represents PepsiCo’s and other brand owners’ agreed-upon funding to assist us in offering sales and promotional discounts to retailers and is generally recorded as an adjustment to cost of sales. If the direct marketplace support is a reimbursement for a specific, incremental and identifiable program, the funding is recorded as an offset to the cost of the program either in net revenues or selling, delivery and administrative expenses.
 
•  Advertising support represents agreed-upon funding to assist us with the cost of media time and promotional materials and is generally recorded as an adjustment to cost of sales. Advertising support that represents reimbursement for a specific, incremental and identifiable media cost, is recorded as a reduction to advertising and marketing expenses within selling, delivery and administrative expenses.

35

Table of Contents

     
PART II (continued)    
     

 
Total bottler incentives recognized as adjustments to net revenues, cost of sales and selling, delivery and administrative expenses in our Consolidated Statements of Operations were as follows:
 
                         
    Fiscal Year Ended  
    2008     2007     2006  
Net revenues
  $ 93     $ 66     $ 67  
Cost of sales
    586       626       612  
Selling, delivery and administrative expenses
    57       67       70  
                         
Total bottler incentives
  $ 736     $ 759     $ 749  
                         
 
Bottler
Incentives – PepsiCo and other brand
owners, at their discretion, provide us with various forms of
bottler incentives. These incentives cover a variety of
initiatives, including direct marketplace support and
advertising support. We classify bottler incentives as follows:


 























• 
 Direct marketplace support represents PepsiCo’s and other
brand owners’
agreed-upon
funding to assist us in offering sales and promotional discounts
to retailers and is generally recorded as an adjustment to cost
of sales. If the direct marketplace support is a reimbursement
for a specific, incremental and identifiable program, the
funding is recorded as an offset to the cost of the program
either in net revenues or selling, delivery and administrative
expenses.
 
• 
 Advertising support represents
agreed-upon
funding to assist us with the cost of media time and promotional
materials and is generally recorded as an adjustment to cost of
sales. Advertising support that represents reimbursement for a
specific, incremental and identifiable media cost, is recorded
as a reduction to advertising and marketing expenses within
selling, delivery and administrative expenses.




35








Table of Contents
























     

PART
II
(continued)


 

 

 

 

 







 



Total bottler incentives recognized as adjustments to net
revenues, cost of sales and selling, delivery and administrative
expenses in our Consolidated Statements of Operations were as
follows:


 
































































































































                         

 

 

Fiscal Year Ended

 

 

 

2008

 

 

2007


 

 

2006


 


Net revenues


 

$

93

 

 

$

66

 

 

$

67

 


Cost of sales


 

 

586

 

 

 

626

 

 

 

612

 


Selling, delivery and administrative expenses


 

 

57

 

 

 

67

 

 

 

70

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total bottler incentives


 

$

736

 

 

$

759

 

 

$

749

 

 

 

 

 

 

 

 

 

 

 

 

 

 






 



These excerpts taken from the PBG 10-K filed Feb 27, 2008.
Bottler Incentives – PepsiCo and other brand owners, at their discretion, provide us with various forms of bottler incentives. These incentives cover a variety of initiatives, including direct marketplace support and advertising support. We classify bottler incentives as follows:
 
•  Direct marketplace support represents PepsiCo’s and other brand owners’ agreed-upon funding to assist us in offering sales and promotional discounts to retailers and is generally recorded as an adjustment to cost of sales. If the direct marketplace support is a reimbursement for a specific, incremental and identifiable program, the funding is recorded as an offset to the cost of the program either in net revenues or selling, delivery and administrative expenses.
•  Advertising support represents agreed-upon funding to assist us for the cost of media time and promotional materials and is generally recorded as an adjustment to cost of sales. Advertising support that represents reimbursement for a specific, incremental and identifiable media cost, is recorded as a reduction to advertising and marketing expenses within selling, delivery and administrative expenses.
 
Total bottler incentives recognized as adjustments to net revenues, cost of sales and selling, delivery and administrative expenses in our Consolidated Statements of Operations were as follows:
 
                   
    Fiscal Year Ended
    2007   2006   2005
Net revenues
  $ 66   $ 67   $ 51
Cost of sales
    626     612     589
Selling, delivery and administrative expenses
    67     70     79
                   
Total bottler incentives
  $ 759   $ 749   $ 719
                   
 
Certain corrections were made to prior years’ disclosure of reported bottler incentives recognized in cost of sales. Total bottler incentives for 2006 and 2005 have been reduced by approximately $37 million and $15 million, respectively. The correction had no impact on our Consolidated Financial Statements.
 
Bottler
Incentives – PepsiCo and other brand
owners, at their discretion, provide us with various forms of
bottler incentives. These incentives cover a variety of
initiatives, including direct marketplace support and
advertising support. We classify bottler incentives as follows:


 























• 
 Direct marketplace support represents PepsiCo’s and other
brand owners’
agreed-upon
funding to assist us in offering sales and promotional discounts
to retailers and is generally recorded as an adjustment to cost
of sales. If the direct marketplace support is a reimbursement
for a specific, incremental and identifiable program, the
funding is recorded as an offset to the cost of the program
either in net revenues or selling, delivery and administrative
expenses.
• 
 Advertising support represents
agreed-upon
funding to assist us for the cost of media time and promotional
materials and is generally recorded as an adjustment to cost of
sales. Advertising support that represents reimbursement for a
specific, incremental and identifiable media cost, is recorded
as a reduction to advertising and marketing expenses within
selling, delivery and administrative expenses.


 



Total bottler incentives recognized as adjustments to net
revenues, cost of sales and selling, delivery and administrative
expenses in our Consolidated Statements of Operations were as
follows:


 







































































































                   

 

 

Fiscal Year Ended

 

 

2007

 

2006


 

2005



Net revenues


 

$

66

 

$

67

 

$

51


Cost of sales


 

 

626

 

 

612

 

 

589


Selling, delivery and administrative expenses


 

 

67

 

 

70

 

 

79

 

 

 

 

 

 

 

 

 

 


Total bottler incentives


 

$

759

 

$

749

 

$

719

 

 

 

 

 

 

 

 

 

 






 



Certain corrections were made to prior years’ disclosure of
reported bottler incentives recognized in cost of sales. Total
bottler incentives for 2006 and 2005 have been reduced by
approximately $37 million and $15 million,
respectively. The correction had no impact on our Consolidated
Financial Statements.


 



This excerpt taken from the PBG DEF 14A filed Mar 31, 2006.
Bottler Incentives. PepsiCo provides PBG with marketing support in the form of bottler incentives. The level of this support is negotiated annually and can be increased or decreased at the discretion of PepsiCo. These bottler incentives are intended to cover a variety of programs and initiatives, including direct marketplace support (including point-of-sale materials) and advertising support. For 2005, total bottler incentives received from PepsiCo, including media costs shared by PepsiCo, were approximately $688 million.

     

EXCERPTS ON THIS PAGE:

8-K
Sep 16, 2009
10-K (2 sections)
Feb 20, 2009
10-K (2 sections)
Feb 27, 2008
DEF 14A
Mar 31, 2006

RELATED TOPICS for PBG:

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