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These excerpts taken from the PBG 10-K filed Feb 27, 2008. Selling,
Delivery and Administrative Expenses
2007
vs. 2006
Worldwide SD&A expenses were $5.2 billion in 2007, a
seven-percent increase over the prior year. Increases in
worldwide SD&A expenses reflect higher operating expenses,
specifically in Mexico and Russia, strategic spending
initiatives primarily in the U.S. related to Hydration and
the impact of foreign currency translation. Additionally, the
restructuring charges and FSV Rationalization plan added a
one-percentage point increase to growth in SD&A expenses.
These increases were partially offset by cost productivity
improvements and disciplined cost management, especially in the
U.S.
26
Table of Contents
2006
vs. 2005
Worldwide SD&A expenses were $4.8 billion, a
seven-percent increase over 2005. This increase was driven by
volume growth and higher wage and benefit costs across all of
our segments, increased pension expense in the U.S and planned
spending as a result of investment in high-growth European
markets. Additionally, the prior year combined impact from the
strategic spending initiatives and the additional expenses from
the 53rd week in our U.S. & Canada segment,
partially offset by the pre-tax gain in the U.S. from the
HFCS settlement decreased our worldwide SD&A growth in 2006
by approximately one percentage point.
Effective January 1, 2006, the Company adopted
SFAS No. 123 (revised), “Share-Based
Payment” (“SFAS 123R”). Among its
provisions, SFAS 123R requires the Company to recognize
compensation expense for equity awards over the vesting period
based on the award’s grant-date fair value. The impact from
the adoption of SFAS 123R in 2006 contributed approximately
one percentage point of growth to our worldwide increase in
SD&A expenses.
Selling, Delivery and Administrative Expenses 2007 vs. 2006
Worldwide SD&A expenses were $5.2 billion in 2007, a seven-percent increase over the prior year. Increases in worldwide SD&A expenses reflect higher operating expenses, specifically in Mexico and Russia, strategic spending initiatives primarily in the U.S. related to Hydration and the impact of foreign currency translation. Additionally, the restructuring charges and FSV Rationalization plan added a one-percentage point increase to growth in SD&A expenses. These increases were partially offset by cost productivity improvements and disciplined cost management, especially in the U.S. 26 Table of Contents2006 vs. 2005
Worldwide SD&A expenses were $4.8 billion, a seven-percent increase over 2005. This increase was driven by volume growth and higher wage and benefit costs across all of our segments, increased pension expense in the U.S and planned spending as a result of investment in high-growth European markets. Additionally, the prior year combined impact from the strategic spending initiatives and the additional expenses from the 53rd week in our U.S. & Canada segment, partially offset by the pre-tax gain in the U.S. from the HFCS settlement decreased our worldwide SD&A growth in 2006 by approximately one percentage point. Effective January 1, 2006, the Company adopted SFAS No. 123 (revised), “Share-Based Payment” (“SFAS 123R”). Among its provisions, SFAS 123R requires the Company to recognize compensation expense for equity awards over the vesting period based on the award’s grant-date fair value. The impact from the adoption of SFAS 123R in 2006 contributed approximately one percentage point of growth to our worldwide increase in SD&A expenses. | EXCERPTS ON THIS PAGE:
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