Question

Pepsi

Consolidated Statement of Cash Flows - USD ($) $ in Millions 12 Months Ended Dec. 29, 2018 Dec. 30, 2017 Dec. 31, 2016 Operating Activities Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ 12,559 $ 4,908 $ 6,379 Depreciation and amortization 2,399 2,369 2,368 Share-based compensation expense 256 292 284 Restructuring and impairment charges 308 295 160 Cash payments for restructuring charges (255) (113) (125) Charge related to the transaction with Tingyi 0 0 373 Pension and retiree medical plan expenses 221 221 501 Pension and retiree medical plan contributions (1,708) (220) (695) Deferred income taxes and other tax charges and credits (531) 619 452 Other net tax benefits related to international reorganizations (4,347) 0 0 Net tax (benefit)/expense related to the TCJ Act (28) 2,451 0 Change in assets and liabilities [Abstract] Accounts and notes receivable (253) (202) (349) Inventories (174) (168) (75) Prepaid expenses and other current assets 9 20 10 Accounts payable and other current liabilities 882 201 981 Income taxes payable 333 (338) 329 Other, net (256) (305) 70 Net Cash Provided by (Used in) Operating Activities 9,415 10,030 10,663 Investing Activities Capital spending (3,282) (2,969) (3,040) Sales of property, plant and equipment 134 180 99 Acquisition of SodaStream, net of cash and cash equivalents acquired (1,197) 0 0 Other acquisitions and investments in noncontrolled affiliates (299) (61) (212) Divestitures 505 267 85 Short-term investments, by original maturity: More than three months - purchases (5,637) (18,385) (12,504) More than three months - maturities 12,824 15,744 8,399 More than three months - sales 1,498 790 0 Three months or less, net 16 2 16 Other investing, net 2 29 7 Net Cash Provided by/(Used for) Investing Activities 4,564 (4,403) (7,150) Financing Activities Proceeds from issuances of long-term debt 0 7,509 7,818 Payments of long-term debt (4,007) (4,406) (3,105) Cash tender and exchange offers/debt redemptions (1,589) 0 (2,504) Short-term borrowings, by original maturity More than three months - proceeds 3 91 59 More than three months - payments (17) (128) (27) Three months or less, net (1,352) (1,016) 1,505 Cash dividends paid (4,930) (4,472) (4,227) Share repurchases - common (2,000) (2,000) (3,000) Share repurchases - preferred (2) (5) (7) Proceeds from exercises of stock options 281 462 465 Withholding tax payments on RSUs, PSUs and PEPunits converted (103) (145) (130) Other financing (53) (76) (58) Net Cash Used for Financing Activities (13,769) (4,186) (3,211) Effect of exchange rate changes on cash and cash equivalents and restricted cash (98) 47 (252) Cash and Cash Equivalents and Restricted Cash, Period Increase (Decrease) 112 1,488 50 Cash and Cash Equivalents and Restricted Cash, End of Year 8,721 10,610 Cash and cash equivalents and restricted cash $ 10,769 $ 10,657 $ 9,169

3a. How much of cash dividends did your company pay out each year reported in the current 10-K report? In which financial statement does your company report these amounts?

3b. Compute the annual dividend payout ratios for the most recent 3 years.

Answer 1

3a.

	2018	2017	2016
	$ in Millions
Cash dividends paid	4930	4472	4227

The financial statement in which the cash dividends paid are reported is the Statement of Cash Flows under the financing activities section.

3b. Dividend payout ratio = Dividends paid/Net income

	2018	2017	2016
Dividends paid	4930	4472	4227
Net income	12559	4908	6379
Dividend payout ratio	39.25%	91.12%	66.26%

Kindly round off the dividend payout ratios as required since no instructions have been provided with the question regarding the same.