Our management, as well as certain investors, use certain non-GAAP measures to analyze our current and future financial performance. These historical and prospective non-GAAP measures include adjusted operating cash flow, adjusted return on invested capital and adjusted comparisons, including adjusted earnings per share and earnings before interest, taxes, depreciation and amortization ("EBITDA"). These non-GAAP measurements do not replace the presentation of our GAAP financial results. These measurements simply provide supplemental information to assist our management and certain investors in analyzing our performance. We have provided this information to investors to enable them to perform meaningful comparisons of past, present and future performance and as a means to better understand the results of our core on-going operations.

This section contains forward-looking statements of expected future developments. These forward-looking statements reflect management's expectations and are based on currently available data; however, actual results are subject to risks and uncertainties, which could materially affect actual performance. Risks and uncertainties that could affect our future performance include, but are not limited to, the following: competition, including product and pricing pressures; changing trends in consumer tastes; changes in our relationship and/or support programs with PepsiCo and other brand owners; market acceptance of new product and packaging offerings; weather conditions; cost and availability of raw materials; changing legislation; outcomes of environmental claims and litigation; availability of capital including changes in our debt ratings; labor and employee benefit costs; unfavorable interest rate and currency fluctuations; costs of legal proceedings; and general economic, business and political conditions in the countries and territories where we operate. Any forward-looking statements should be read in conjunction with information about risks and uncertainties set forth in our Securities and Exchange Commission reports, including our Annual Report on Form 10-K for the year ended December 29, 2007.

Adjusted Operating Cash Flow:
Adjusted operating cash flow is the primary measure that management uses to monitor our cash flow performance, and therefore, management believes this information is useful to investors. We define adjusted operating cash flow as our cash generated from operating activities of continuing operations, plus proceeds from the sale of property, less capital investments and cash used in discontinued operations. The costs of acquisitions are excluded from the calculation.

Adjusted operating cash flow is a measure of cash that is available for financing and other investing activities, including discretionary distributions in the form of dividends, reduction of borrowings and reinvestments in our business, as well as non-discretionary expenditures. Such non-discretionary expenditures include mandatory debt service requirements and other contractual cash obligations relating to our advertising commitments and exclusivity rights, raw material purchase obligations and lease obligations. These contractual obligations are described in our most recent annual report, and there have been no significant changes since that time. This non-GAAP measure is provided as supplemental information and should not be considered in lieu of the GAAP measures.

Adjusted operating cash flow can be defined as a formula as follows:

+	Net cash flow from operating activities of continuing operations
-	Capital investments
+	Proceeds from the sale of property
-	Net cash used in discontinued operations
=	Adjusted operating cash flow

Beginning in the second quarter of 2007, the definition was modified to include the proceeds from the sale of property. This modification was made as management believed these proceeds should be included in the measure of cash that is available for financing and other investing activities. Adjusted operating cash flow in any one year may be affected by investment initiatives or by the timing of routine cash receipts and disbursements. Our capital spending in the first quarter of 2008 was $31.5 million compared to $60.8 million in the first quarter of 2007. The reconciliation to the most comparable U.S. GAAP measurement was calculated as follows (in millions and unaudited):

First Quarter 2008	First Quarter 2007
$17.0	$66.7	+ Net cash flow from operating activities of continuing operations
(31.5)	(60.8)	- Capital investments
0.7	2.4	+ Proceeds from the sale of property
(6.7)	(1.0)	- Net cash used in discontinued operations
$20.5	$7.3	= Adjusted operating cash flow

The GAAP measures of cash flows from investing and financing activities for the periods presented above are presented in our Condensed Consolidated Statements of Cash Flows and are as follows (in millions):

First Quarter 2008	First Quarter 2007
$(30.8)	$(58.4)	Net cash used in investing activities
$23.0	$(1.9)	Net cash provided by (used in) financing activities

Adjusted Return on Invested Capital
Our adjusted return on invested capital (“Adjusted ROIC”) is a measure of how effectively we allocate our capital in our core operations. We also use Adjusted ROIC as part of our initial capital spending and potential acquisition review processes to ensure that each capital dollar spent achieves a certain hurdle rate of return.

In calculating Adjusted ROIC, management excludes the impact of the 53rd week, other income (expense), and loss from discontinued operations. Management excludes these items because we do not consider them to be components of Adjusted ROIC. The 53rd week represents an item that, due to our fiscal year, occurs every five or six years. Discontinued operations represent items that we do not consider to be a component of our ongoing core operations. Other income (expense), net of tax, is excluded from the Adjusted ROIC calculation, as this line item in the income statement includes such items as realized and unrealized foreign currency transaction gains and losses, which we do not consider to be components of our Adjusted ROIC. The impact of these adjustments immaterially increases Adjusted ROIC in our two most recent fiscal years. There are limitations in the use of Adjusted ROIC due to the subjective nature of items excluded by management in calculating Adjusted ROIC. This non-GAAP measure is provided as supplemental information and should not be considered in lieu of the GAAP measures. Management uses Adjusted ROIC to measure how effectively we are allocating capital in our core operations, and therefore, management believes this information is useful to investors.

We define Adjusted ROIC as follows:

• Numerator (rolling 12-periods):
  

  +	Net income
  +	Amortization expense
  +	Interest expense, net of tax
  -	Loss from discontinued operations
  -	Other income (expense), net of tax
  =	Adjusted net operating profit after taxes

  
  
• Denominator (average 4 quarters):
  

  +	Total assets
  +	Accumulated amortization
  -	Cash
  -	Current liabilities, excluding short-term debt
  -	Other liabilities, excluding long-term debt
  =	Adjusted average invested capital

Adjusted ROIC:

Adjusted net operating profit after taxes / Average adjusted invested capital

At the end of the first quarter of 2008 and 2007, we had an Adjusted ROIC of 7.7 percent and 6.9 percent, respectively. In the first quarter of 2008, Adjusted ROIC was negatively impacted by 10 basis points from special charges. Excluding the impact of special charges, Adjusted ROIC was 7.8 percent at the end of the first quarter 2008 and 7.1 percent at the end of the first quarter 2007. The reconciliation to the most comparable U.S. GAAP measurements for the numerator and denominator are as follows (in millions and unaudited):

	2007				2008	Rolling 4 Qtrs Q1 2008	Rolling 4 Qtrs FY 2007
	Q1	Q2	Q3	Q4	Q1
Net income	$20.6	$78.0	$71.5	$42.0	$24.7	$216.2	$212.1
+ Amortization expense	0.3	2.1	0.8	3.4	3.1	9.4	6.6
+ Interest expense, (net of tax)	16.3	16.9	17.7	19.8	19.6	74.0	70.7
- Loss from discontinued operations	—	(2.1)	—	—	—	(2.1)	(2.1)
- Other (expense) income, (net of tax)	(0.9)	2.8	(1.0)	(1.3)	(0.8)	(0.3)	(0.4)
= Adjusted net operating profit after taxes	$38.1	$96.3	$91.0	$66.5	$48.2	$302.0	$291.9
	2007				2008	Rolling 4 Qtrs Q1 2008	Rolling 4 Qtrs FY 2007
	Q1	Q2	Q3	Q4	Q1
+ Total assets	$4,247.4	$4,410.2	$5,028.8	$5,308.0	$5,357.9
+ Accumulated amortization	257.6	259.7	260.4	263.8	266.9
- Cash	(98.5)	(123.5)	(172.6)	(189.7)	(198.2)
- Current liabilities excluding short-term debt	(494.8)	(572.3)	(545.6)	(565.0)	(540.2)
- Other liabilities, excluding long-term debt	(423.6)	(446.4)	(676.7)	(743.6)	(748.9)
= Adjusted invested capital	$3,488.1	$3,527.7	$3,894.3	$4,073.5	$4,137.5	$3,908.2	$3,745.9
Adjusted ROIC								ROIC=	7.7%	7.8%

Adjusted Comparisons
In order to provide a supplemental comparison of current period results of operations to prior periods, we have adjusted for and summarized the nature of certain transactions or events. These adjustments relate to operating income, net income, and diluted earnings per share. To calculate the adjusted comparisons, management has excluded the marketable securities impairment, special charges relating to various restructuring initiatives, fructose settlement income, the property tax refund, the loss on extinguishment of debt, lease exit costs and various tax adjustments.

Management believes that the adjusted comparisons provide a supplemental view of operations that excludes items that are unusual, infrequent or unrelated to the ongoing core operations. Management believes these non-GAAP measures provide useful information to investors through the summarization of transactions comparable with prior period results. These non-GAAP measures are provided as supplemental information, and should not be considered in lieu of the GAAP measures. There are limitations in the use of adjusted comparisons due to the subjective nature of items excluded by management in calculating adjusted comparisons.

These supplemental comparisons are consistent with the manner in which management internally reviews results of operations and evaluates performance in that management reviews the results of operations on both a GAAP basis and using adjusted comparisons. Management does not use the adjusted comparisons in lieu of the comparable GAAP measures, but rather uses the adjusted comparisons to supplement its review of operations.

We have provided the table below that summarizes the adjustments discussed above that impact comparability of fiscal years 2007, 2006 and 2005 (in millions except per share data). Details of the adjustment items can be found in our Form 10-K Annual Report for December 29, 2007.

	Operating Income	Net Income	Diluted Earnings Per Share
Fiscal year 2007, as reported	$436.1	$214.2	$1.64
Special charges	6.3	4.0
Marketable securities impairment	—	2.5
Gain on sale of non-core property	—	(6.5)
Fiscal year 2007, as adjusted	$442.4	$214.2	$1.64
Fiscal year 2006, as reported	$356.0	$158.3	$1.22
Special charges	13.7	8.6
Marketable securities impairment	—	4.6
Fiscal year 2006, as adjusted	$369.7	$171.5	$1.32
Fiscal year 2005, as reported	$393.4	$194.7	$1.42
Fructose settlement income	(16.6)	(10.4)
Property tax refund	—	(3.5)
Other tax adjustments	—	(1.1)
Lease exit costs	6.1	3.8
Loss on extinguishment of debt	—	3.5
Special charges, net	2.5	1.6
Fiscal year 2005, as adjusted	$385.4	$188.6	$1.37

EBITDA
EBITDA is a measure that management uses to monitor our operating and cash flow performance of our geographic segments. This non-GAAP measure is provided as supplemental information and should not be considered in lieu of the GAAP measures.

In calculating EBITDA, management excludes interest, taxes and depreciation and amortization. There are limitations in the use of EBITDA due to the nature of items excluded by management.

We define EBITDA as follows:

Operating Income

+ Depreciation and Amortization

= EBITDA

Calculation of U.S. EBITDA	2007	2006	2005
Operating Income	$331.6	$330.1	$387.7
+ Depreciation and Amortization	148.2	151.8	146.5
= U.S. EBITDA	$479.8	$481.9	$534.2

Operating Margin
Management uses operating margins to measure our operating efficiency. This non-GAAP measure is provided as supplemental information and should not be considered in lieu of the GAAP measures.

In calculating our operating margin, management excludes special charges and certain one time events for comparability. There are limitations in the use of this measure due to the nature of items excluded by management.

We calculate our operating margin as follows:

Calculation of Operating Margin	2007
Operating Income	$436.1
+ Special Charges	6.3
= Adjusted Operating Income	$442.4
Adjusted Operating Income	$442.4
Divided by Net Sales	4,479.5
= Operating Margin	9.9%

Cash Flow Yield
Management uses cash flow yields to monitor our cash flow performance. This non-GAAP measure is provided as supplemental information and should not be considered in lieu of the GAAP measures.

We calculate our cash flow yield as follows:

Calculation of Cash Flow Yield	2007
Net cash provided by operating activities of continuing operations	$433.5
- Capital investments	(264.6)
+ Proceeds from the sales of property and equipment	29.2
- Net operating cash flows used in discontinued operations	(10.4)
= Adjusted Operating Cash Flow	$187.7
Adjusted Operating Cash Flow	$187.7
Divided by Net Sales	4,479.5
= Cash Flow Yield	4.2%