We Delivered. Net sales grew 11.7 percent, while gross profit dollars increased 11.4 percent. In a challenging cost environment, we delivered operating profits of $387.7 million, up 16.7 percent. Operating income in 2005 included a net benefit of $10.5 million from proceeds received from the high fructose corn syrup settlement partially offset by facility relocation costs.

PepsiAmericas made meaningful acquisitions, in a big and small way. In January of 2005, we acquired the seventh-largest Pepsi bottler in the country, Central Investment Corporation (CIC). The investment provided both a contiguous Ohio territory in our heartland base, as well as access to the high-growth Florida market. We've been able to integrate our systems and processes to reduce costs and drive greater volume and market share. CIC contributed over $30 million in operating income for PepsiAmericas, driving $0.06 diluted earnings per share in the first year.

In January of this year, we announced the acquisition of Ardea Beverage Company, maker of airforce Nutrisoda. Although small, it shows our commitment to bring variety and excitement to our customers and consumers, with a great tasting product that complements our growing portfolio of healthier beverages.

PepsiAmericas expanded operating margins. Top line momentum and continued focus on costs drove solid financial results. In a year of significantly higher commodity and fuel costs, and a carbonated soft drink (CSD) category that is under pressure, demonstrating flexibility was paramount. We accelerated growth in our non-carbonated category, and continued to generate strong pricing and single-serve growth. Our core trademarks – Pepsi, Mountain Dew, Sierra Mist and Aquafina – remain key to our strength.

Innovation is integral to achieving overall category growth. We continue to look for ways to bring excitement and variety to our consumers. In the CSD category, we introduced Tropicana Twisters and Pepsi Lime; both brands generated widespread trial and repeat purchases. Cherry Vanilla Dr. Pepper also had great success in the marketplace. At the same time, our broad portfolio of diet CSDs, which has a loyal base of consumers, continued to offer greater choice with expanded flavor offerings, including Wild Cherry Diet Pepsi.

Innovation and expanded in-store presence also helped us grow our non-carbonated category volume more than 16 percent in 2005. The introduction of Aquafina FlavorSplash and Lipton Iced Tea contributed to volume growth, while Starbucks Frappuccino reached double-digit growth. This consumer appeal continues with the introduction of Starbucks Strawberries `n Cream in 2006. In the high-growth energy category, Mountain Dew AMP, SOBE Adrenaline Rush, and SOBE No Fear continue to be important to our overall beverage category growth. The non-carbonated category now comprises over 14 percent of our overall portfolio and is expected to become an increasingly important contributor over the next several years.

Single-serve continues to be a driver of our domestic profit performance. Strong execution, as well as innovation, drove a 3 percent increase in our single-serve business. We increased market penetration in those channels where we already had an established presence, and we accelerated growth with bottles-to-go in our on-premise channel.

We continue to look for ways to meet our customers' needs in a cost efficient manner. In 2005, we increased drop sizes and reduced the number of routes our fleet services. At the same time, we raised our service levels and reduced costs as additional customers migrated to our call center in Fargo, North Dakota. Productivity is a key element to deliver consistent sustainable growth, and helped to expand our operating margins in 2005.

PepsiAmericas looks ahead. Balanced top line growth is our priority in 2006. Our strategy includes growing our non-carbonated mix at a rate substantially greater than in past years. Our commitment to the non-carbonated category is the most significant new initiative relative to our marketing plan. It centers on innovation, marketing resources and production capacity.

In 2006, we are rolling out PET package innovation behind Lipton, Tropicana and FlavorSplash, and we will maintain a full-year marketing calendar to accelerate non-carbonated growth. We will do this by investing in non-carbonated distribution and cold-vault space, and sustaining an innovation pipeline to expand category segments and broaden users of our product.

Another capital project is the installation of in-line blow molding lines to ensure bottle supply while also lowering our cost of goods.

Equally important to achieving balanced top line growth is our success in the growing on-premise channel, with a dedicated sales and management team focused on the acquisition, retention and development of our fountain accounts. In the fast-growing bottles-to-go category, we will leverage our equipment to drive greater non-carbonated penetration and distribution. We are also fully committed to working with school officials to help them encourage healthy lifestyles for our nation's youth. To this end, we support the American Beverage Association's policy recommending that school vending machines offer a variety of nutritious and lower-calorie beverage options.

Our plan for the year ahead is built upon a great portfolio of expanding brands, strong customer relationships, efficient supply chain and extremely capable people working together to deliver... every day.