Summary
PepsiCo, Inc. (PEP) filed an 8-K on October 7, 2015, to announce a retrospective revision of its historical segment information. This update aligns the company's reporting structure with changes in its organizational management, specifically how the Chief Executive Officer monitors performance. The primary changes involve consolidating all Latin America beverage, food, and snack businesses into a single 'Latin America' segment, and separating the North American beverage business into a distinct 'North America Beverages' segment. Additionally, the 'Europe' segment has been expanded to include Sub-Saharan African markets (formerly part of AMEA) and renamed 'Europe Sub-Saharan Africa' (ESSA), while the 'Asia, Middle East and Africa' (AMEA) segment has been renamed 'Asia, Middle East and North Africa' (AMENA). Importantly, these adjustments do not impact the Frito-Lay North America or Quaker Foods North America segments. This filing provides revised segment discussions within the company's 2014 Form 10-K but does not restate previously reported consolidated financial statements.
Key Highlights
- 1PepsiCo is retrospectively revising historical segment reporting to align with organizational and management structure changes.
- 2All Latin America beverage, food, and snack businesses will now be reported as a single 'Latin America' segment.
- 3North American beverage business is now reported separately as 'North America Beverages'.
- 4The 'Europe' segment now includes Sub-Saharan Africa and is renamed 'Europe Sub-Saharan Africa' (ESSA).
- 5The 'Asia, Middle East and Africa' (AMEA) segment is renamed 'Asia, Middle East and North Africa' (AMENA).
- 6These segment changes do not affect the Frito-Lay North America or Quaker Foods North America segments.
- 7The filing provides revised segment disclosures but does not restate previously issued consolidated financial statements.