X
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
PepsiCo, Inc.
|
|
|
|
North Carolina
|
|
13-1584302
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
700 Anderson Hill Road, Purchase, New York
|
|
10577
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
914-253-2000
|
||||
(Registrant’s Telephone Number, Including Area Code)
|
N/A
|
Title of each class
|
|
Trading Symbols
|
|
Name of each exchange on which registered
|
Common Stock, par value 1-2/3 cents per share
|
|
PEP
|
|
The Nasdaq Stock Market LLC
|
2.500% Senior Notes Due 2022
|
|
PEP22a
|
|
The Nasdaq Stock Market LLC
|
1.750% Senior Notes Due 2021
|
|
PEP21a
|
|
The Nasdaq Stock Market LLC
|
2.625% Senior Notes Due 2026
|
|
PEP26
|
|
The Nasdaq Stock Market LLC
|
0.875% Senior Notes Due 2028
|
|
PEP28
|
|
The Nasdaq Stock Market LLC
|
0.750% Senior Notes Due 2027
|
|
PEP27
|
|
The Nasdaq Stock Market LLC
|
1.125% Senior Notes Due 2031
|
|
PEP31
|
|
The Nasdaq Stock Market LLC
|
Large accelerated filer x
|
|
Accelerated filer ¨
|
||
Non-accelerated filer ¨
|
|
Smaller reporting company ¨
|
||
|
|
Emerging growth company ¨
|
|
|
Page No.
|
Part I Financial Information
|
|
|
Item 1.
|
Condensed Consolidated Financial Statements
|
|
|
|
|
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Report of Independent Registered Public Accounting Firm
|
||
Item 3.
|
||
Item 4.
|
||
Part II Other Information
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
6/15/2019
|
|
|
6/16/2018
|
|
|
6/15/2019
|
|
|
6/16/2018
|
|
||||
Net Revenue
|
$
|
16,449
|
|
|
$
|
16,090
|
|
|
$
|
29,333
|
|
|
$
|
28,652
|
|
Cost of sales
|
7,404
|
|
|
7,263
|
|
|
13,092
|
|
|
12,918
|
|
||||
Gross profit
|
9,045
|
|
|
8,827
|
|
|
16,241
|
|
|
15,734
|
|
||||
Selling, general and administrative expenses
|
6,316
|
|
|
5,799
|
|
|
11,504
|
|
|
10,899
|
|
||||
Operating Profit
|
2,729
|
|
|
3,028
|
|
|
4,737
|
|
|
4,835
|
|
||||
Other pension and retiree medical benefits income
|
61
|
|
|
82
|
|
|
125
|
|
|
157
|
|
||||
Interest expense
|
(261
|
)
|
|
(308
|
)
|
|
(528
|
)
|
|
(602
|
)
|
||||
Interest income and other
|
38
|
|
|
98
|
|
|
101
|
|
|
167
|
|
||||
Income before income taxes
|
2,567
|
|
|
2,900
|
|
|
4,435
|
|
|
4,557
|
|
||||
Provision for income taxes
|
524
|
|
|
1,070
|
|
|
970
|
|
|
1,374
|
|
||||
Net income
|
2,043
|
|
|
1,830
|
|
|
3,465
|
|
|
3,183
|
|
||||
Less: Net income attributable to noncontrolling interests
|
8
|
|
|
10
|
|
|
17
|
|
|
20
|
|
||||
Net Income Attributable to PepsiCo
|
$
|
2,035
|
|
|
$
|
1,820
|
|
|
$
|
3,448
|
|
|
$
|
3,163
|
|
Net Income Attributable to PepsiCo per Common Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.45
|
|
|
$
|
1.28
|
|
|
$
|
2.46
|
|
|
$
|
2.23
|
|
Diluted
|
$
|
1.44
|
|
|
$
|
1.28
|
|
|
$
|
2.44
|
|
|
$
|
2.21
|
|
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
1,401
|
|
|
1,417
|
|
|
1,403
|
|
|
1,418
|
|
||||
Diluted
|
1,409
|
|
|
1,426
|
|
|
1,411
|
|
|
1,428
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
6/15/2019
|
|
|
6/16/2018
|
|
|
6/15/2019
|
|
|
6/16/2018
|
|
||||
Net income
|
$
|
2,043
|
|
|
$
|
1,830
|
|
|
$
|
3,465
|
|
|
$
|
3,183
|
|
Other comprehensive (loss)/income, net of taxes:
|
|
|
|
|
|
|
|
||||||||
Net currency translation adjustment
|
(365
|
)
|
|
(971
|
)
|
|
108
|
|
|
(681
|
)
|
||||
Net change on cash flow hedges
|
(6
|
)
|
|
48
|
|
|
(33
|
)
|
|
76
|
|
||||
Net pension and retiree medical adjustments
|
42
|
|
|
56
|
|
|
59
|
|
|
80
|
|
||||
Net change on available-for-sale securities
|
1
|
|
|
4
|
|
|
1
|
|
|
2
|
|
||||
|
(328
|
)
|
|
(863
|
)
|
|
135
|
|
|
(523
|
)
|
||||
Comprehensive income
|
1,715
|
|
|
967
|
|
|
3,600
|
|
|
2,660
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
(8
|
)
|
|
(10
|
)
|
|
(17
|
)
|
|
(20
|
)
|
||||
Comprehensive Income Attributable to PepsiCo
|
$
|
1,707
|
|
|
$
|
957
|
|
|
$
|
3,583
|
|
|
$
|
2,640
|
|
|
24 Weeks Ended
|
||||||
|
6/15/2019
|
|
|
6/16/2018
|
|
||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
3,465
|
|
|
$
|
3,183
|
|
Depreciation and amortization
|
1,056
|
|
|
1,070
|
|
||
Share-based compensation expense
|
118
|
|
|
146
|
|
||
Restructuring and impairment charges
|
184
|
|
|
44
|
|
||
Cash payments for restructuring charges
|
(153
|
)
|
|
(126
|
)
|
||
Pension and retiree medical plan expenses
|
98
|
|
|
93
|
|
||
Pension and retiree medical plan contributions
|
(317
|
)
|
|
(1,573
|
)
|
||
Deferred income taxes and other tax charges and credits
|
221
|
|
|
(167
|
)
|
||
Tax (benefits)/net tax expense related to the Tax Cuts and Jobs Act (TCJ Act)
|
(29
|
)
|
|
778
|
|
||
Tax payments related to the TCJ Act
|
(393
|
)
|
|
(38
|
)
|
||
Change in assets and liabilities:
|
|
|
|
||||
Accounts and notes receivable
|
(1,372
|
)
|
|
(1,019
|
)
|
||
Inventories
|
(872
|
)
|
|
(637
|
)
|
||
Prepaid expenses and other current assets
|
(336
|
)
|
|
(224
|
)
|
||
Accounts payable and other current liabilities
|
(521
|
)
|
|
(560
|
)
|
||
Income taxes payable
|
202
|
|
|
410
|
|
||
Other, net
|
37
|
|
|
(293
|
)
|
||
Net Cash Provided by Operating Activities
|
1,388
|
|
|
1,087
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Capital spending
|
(1,167
|
)
|
|
(945
|
)
|
||
Sales of property, plant and equipment
|
42
|
|
|
43
|
|
||
Acquisition of SodaStream International Ltd. (SodaStream)
|
(1,880
|
)
|
|
—
|
|
||
Other acquisitions and investments in noncontrolled affiliates
|
(544
|
)
|
|
(188
|
)
|
||
Divestitures
|
270
|
|
|
280
|
|
||
Short-term investments, by original maturity:
|
|
|
|
||||
More than three months - purchases
|
—
|
|
|
(5,544
|
)
|
||
More than three months - maturities
|
4
|
|
|
9,416
|
|
||
More than three months - sales
|
2
|
|
|
760
|
|
||
Three months or less, net
|
8
|
|
|
5
|
|
||
Other investing, net
|
(6
|
)
|
|
—
|
|
||
Net Cash (Used for)/Provided by Investing Activities
|
(3,271
|
)
|
|
3,827
|
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Proceeds from issuances of long-term debt
|
1,122
|
|
|
—
|
|
||
Payments of long-term debt
|
(2,953
|
)
|
|
(2,502
|
)
|
||
Short-term borrowings, by original maturity:
|
|
|
|
||||
More than three months - proceeds
|
6
|
|
|
—
|
|
||
More than three months - payments
|
—
|
|
|
(17
|
)
|
||
Three months or less, net
|
652
|
|
|
4,091
|
|
||
Cash dividends paid
|
(2,635
|
)
|
|
(2,305
|
)
|
||
Share repurchases - common
|
(1,726
|
)
|
|
(984
|
)
|
||
Share repurchases - preferred
|
—
|
|
|
(2
|
)
|
||
Proceeds from exercises of stock options
|
210
|
|
|
145
|
|
||
Withholding tax payments on restricted stock units (RSUs), performance stock units (PSUs) and PepsiCo
equity performance units (PEPunits) converted |
(100
|
)
|
|
(82
|
)
|
||
Other financing
|
(15
|
)
|
|
(2
|
)
|
||
Net Cash Used for Financing Activities
|
(5,439
|
)
|
|
(1,658
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
24
|
|
|
(19
|
)
|
||
Net (Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash
|
(7,298
|
)
|
|
3,237
|
|
||
Cash and Cash Equivalents and Restricted Cash, Beginning of Year
|
10,769
|
|
|
10,657
|
|
||
Cash and Cash Equivalents and Restricted Cash, End of Period
|
$
|
3,471
|
|
|
$
|
13,894
|
|
|
(Unaudited)
|
|
|
|
|||
|
6/15/2019
|
|
|
12/29/2018
|
|
||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,293
|
|
|
$
|
8,721
|
|
Short-term investments
|
291
|
|
|
272
|
|
||
Restricted cash
|
150
|
|
|
1,997
|
|
||
Accounts and notes receivable, less allowance: 6/19 - $113 and 12/18 - $101
|
8,502
|
|
|
7,142
|
|
||
Inventories:
|
|
|
|
||||
Raw materials and packaging
|
1,589
|
|
|
1,312
|
|
||
Work-in-process
|
384
|
|
|
178
|
|
||
Finished goods
|
2,015
|
|
|
1,638
|
|
||
|
3,988
|
|
|
3,128
|
|
||
Prepaid expenses and other current assets
|
988
|
|
|
633
|
|
||
Total Current Assets
|
17,212
|
|
|
21,893
|
|
||
Property, plant and equipment
|
40,264
|
|
|
40,164
|
|
||
Accumulated depreciation
|
(22,822
|
)
|
|
(22,575
|
)
|
||
|
17,442
|
|
|
17,589
|
|
||
Amortizable Intangible Assets, net
|
1,433
|
|
|
1,644
|
|
||
Goodwill
|
15,632
|
|
|
14,808
|
|
||
Other indefinite-lived intangible assets
|
14,148
|
|
|
14,181
|
|
||
Indefinite-Lived Intangible Assets
|
29,780
|
|
|
28,989
|
|
||
Investments in Noncontrolled Affiliates
|
2,510
|
|
|
2,409
|
|
||
Deferred Income Taxes
|
4,353
|
|
|
4,364
|
|
||
Other Assets
|
2,354
|
|
|
760
|
|
||
Total Assets
|
$
|
75,084
|
|
|
$
|
77,648
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Short-term debt obligations
|
$
|
3,473
|
|
|
$
|
4,026
|
|
Accounts payable and other current liabilities
|
16,455
|
|
|
18,112
|
|
||
Total Current Liabilities
|
19,928
|
|
|
22,138
|
|
||
Long-Term Debt Obligations
|
27,712
|
|
|
28,295
|
|
||
Deferred Income Taxes
|
3,658
|
|
|
3,499
|
|
||
Other Liabilities
|
9,749
|
|
|
9,114
|
|
||
Total Liabilities
|
61,047
|
|
|
63,046
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
|
|
|
|
||||
PepsiCo Common Shareholders’ Equity
|
|
|
|
||||
Common stock, par value 12/3¢ per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,399 and 1,409 shares, respectively)
|
23
|
|
|
23
|
|
||
Capital in excess of par value
|
3,796
|
|
|
3,953
|
|
||
Retained earnings
|
60,752
|
|
|
59,947
|
|
||
Accumulated other comprehensive loss
|
(14,984
|
)
|
|
(15,119
|
)
|
||
Repurchased common stock, in excess of par value (468 and 458 shares, respectively)
|
(35,635
|
)
|
|
(34,286
|
)
|
||
Total PepsiCo Common Shareholders’ Equity
|
13,952
|
|
|
14,518
|
|
||
Noncontrolling interests
|
85
|
|
|
84
|
|
||
Total Equity
|
14,037
|
|
|
14,602
|
|
||
Total Liabilities and Equity
|
$
|
75,084
|
|
|
$
|
77,648
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||||||||||||||
|
6/15/2019
|
|
6/16/2018
|
|
6/15/2019
|
|
6/16/2018
|
||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
||||||||||||
Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
0.8
|
|
|
$
|
41
|
|
Conversion to common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(6
|
)
|
||||
Retirement of preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(35
|
)
|
||||
Balance, end of period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Repurchased Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(197
|
)
|
||||
Redemptions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
Retirement of preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
199
|
|
||||
Balance, end of period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
1,404
|
|
|
23
|
|
|
1,419
|
|
|
24
|
|
|
1,409
|
|
|
23
|
|
|
1,420
|
|
|
24
|
|
||||
Shares issued in connection with preferred stock conversion to common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Change in repurchased common stock
|
(5
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
||||
Balance, end of period
|
1,399
|
|
|
23
|
|
|
1,415
|
|
|
24
|
|
|
1,399
|
|
|
23
|
|
|
1,415
|
|
|
24
|
|
||||
Capital in Excess of Par Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
3,753
|
|
|
|
|
3,866
|
|
|
|
|
3,953
|
|
|
|
|
3,996
|
|
||||||||
Share-based compensation expense
|
|
|
62
|
|
|
|
|
65
|
|
|
|
|
119
|
|
|
|
|
148
|
|
||||||||
Equity issued in connection with preferred stock conversion to common stock
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
6
|
|
||||||||
Stock option exercises, RSUs, PSUs and PEPunits converted
|
|
|
(12
|
)
|
|
|
|
(8
|
)
|
|
|
|
(176
|
)
|
|
|
|
(150
|
)
|
||||||||
Withholding tax on RSUs, PSUs and PEPunits converted
|
|
|
(7
|
)
|
|
|
|
(6
|
)
|
|
|
|
(100
|
)
|
|
|
|
(82
|
)
|
||||||||
Other
|
|
|
—
|
|
|
|
|
(2
|
)
|
|
|
|
—
|
|
|
|
|
(3
|
)
|
||||||||
Balance, end of period
|
|
|
3,796
|
|
|
|
|
3,915
|
|
|
|
|
3,796
|
|
|
|
|
3,915
|
|
||||||||
Retained Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
60,060
|
|
|
|
|
52,726
|
|
|
|
|
59,947
|
|
|
|
|
52,839
|
|
||||||||
Cumulative effect of accounting changes
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
8
|
|
|
|
|
(145
|
)
|
||||||||
Net income attributable to PepsiCo
|
|
|
2,035
|
|
|
|
|
1,820
|
|
|
|
|
3,448
|
|
|
|
|
3,163
|
|
||||||||
Cash dividends declared – common (a)
|
|
|
(1,343
|
)
|
|
|
|
(1,323
|
)
|
|
|
|
(2,651
|
)
|
|
|
|
(2,470
|
)
|
||||||||
Retirement of preferred stock
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(164
|
)
|
||||||||
Balance, end of period
|
|
|
60,752
|
|
|
|
|
53,223
|
|
|
|
|
60,752
|
|
|
|
|
53,223
|
|
||||||||
Accumulated Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
(14,656
|
)
|
|
|
|
(12,717
|
)
|
|
|
|
(15,119
|
)
|
|
|
|
(13,057
|
)
|
||||||||
Other comprehensive (loss)/income attributable to PepsiCo
|
|
|
(328
|
)
|
|
|
|
(863
|
)
|
|
|
|
135
|
|
|
|
|
(523
|
)
|
||||||||
Balance, end of period
|
|
|
(14,984
|
)
|
|
|
|
(13,580
|
)
|
|
|
|
(14,984
|
)
|
|
|
|
(13,580
|
)
|
||||||||
Repurchased Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
(463
|
)
|
|
(34,978
|
)
|
|
(448
|
)
|
|
(33,016
|
)
|
|
(458
|
)
|
|
(34,286
|
)
|
|
(446
|
)
|
|
(32,757
|
)
|
||||
Share repurchases
|
(6
|
)
|
|
(779
|
)
|
|
(5
|
)
|
|
(483
|
)
|
|
(15
|
)
|
|
(1,750
|
)
|
|
(10
|
)
|
|
(1,004
|
)
|
||||
Stock option exercises, RSUs, PSUs and PEPunits converted
|
1
|
|
|
122
|
|
|
1
|
|
|
28
|
|
|
5
|
|
|
401
|
|
|
4
|
|
|
289
|
|
||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Balance, end of period
|
(468
|
)
|
|
(35,635
|
)
|
|
(452
|
)
|
|
(33,471
|
)
|
|
(468
|
)
|
|
(35,635
|
)
|
|
(452
|
)
|
|
(33,471
|
)
|
||||
Total PepsiCo Common Shareholders’ Equity
|
|
|
13,952
|
|
|
|
|
10,111
|
|
|
|
|
13,952
|
|
|
|
|
10,111
|
|
||||||||
Noncontrolling Interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
94
|
|
|
|
|
102
|
|
|
|
|
84
|
|
|
|
|
92
|
|
||||||||
Net income attributable to noncontrolling interests
|
|
|
8
|
|
|
|
|
10
|
|
|
|
|
17
|
|
|
|
|
20
|
|
||||||||
Distributions to noncontrolling interests
|
|
|
(15
|
)
|
|
|
|
—
|
|
|
|
|
(15
|
)
|
|
|
|
—
|
|
||||||||
Other, net
|
|
|
(2
|
)
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
||||||||
Balance, end of period
|
|
|
85
|
|
|
|
|
110
|
|
|
|
|
85
|
|
|
|
|
110
|
|
||||||||
Total Equity
|
|
|
$
|
14,037
|
|
|
|
|
$
|
10,221
|
|
|
|
|
$
|
14,037
|
|
|
|
|
$
|
10,221
|
|
(a)
|
Cash dividends declared per common share were $0.955 and $0.9275 for the 12 weeks ended June 15, 2019 and June 16, 2018, respectively, and $1.8825 and $1.7325 for the 24 weeks ended June 15, 2019 and June 16, 2018, respectively.
|
1)
|
Frito-Lay North America (FLNA), which includes our branded food and snack businesses in the United States and Canada;
|
2)
|
Quaker Foods North America (QFNA), which includes our cereal, rice, pasta and other branded food businesses in the United States and Canada;
|
3)
|
PepsiCo Beverages North America (PBNA), which includes our beverage businesses in the United States and Canada. PBNA was formerly named North America Beverages; this change did not impact the results of PBNA or our other reportable segments;
|
4)
|
Latin America (LatAm), which includes all of our beverage, food and snack businesses in Latin America;
|
5)
|
Europe Sub-Saharan Africa (ESSA), which includes all of our beverage, food and snack businesses in Europe and Sub-Saharan Africa; and
|
6)
|
Asia, Middle East and North Africa (AMENA), which includes all of our beverage, food and snack businesses in Asia, the Middle East and North Africa.
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
Net Revenue (a)
|
6/15/2019
|
|
|
6/16/2018
|
|
|
6/15/2019
|
|
|
6/16/2018
|
|
||||
FLNA
|
$
|
4,010
|
|
|
$
|
3,837
|
|
|
$
|
7,825
|
|
|
$
|
7,454
|
|
QFNA
|
540
|
|
|
527
|
|
|
1,134
|
|
|
1,128
|
|
||||
PBNA
|
5,322
|
|
|
5,193
|
|
|
9,832
|
|
|
9,608
|
|
||||
LatAm
|
1,886
|
|
|
1,843
|
|
|
3,127
|
|
|
3,067
|
|
||||
ESSA
|
3,133
|
|
|
3,116
|
|
|
4,826
|
|
|
4,784
|
|
||||
AMENA
|
1,558
|
|
|
1,574
|
|
|
2,589
|
|
|
2,611
|
|
||||
Total
|
$
|
16,449
|
|
|
$
|
16,090
|
|
|
$
|
29,333
|
|
|
$
|
28,652
|
|
(a)
|
Our primary performance obligation is the distribution and sales of beverage products and food and snack products to our customers, each comprising approximately 50% of our consolidated net revenue. Internationally, our LatAm segment is predominantly a food and snack business, ESSA’s beverage business and food and snack business are each approximately 50% of the segment’s net revenue and AMENA’s beverage business and food and snack business are approximately 35% and 65%, respectively, of the segment’s net revenue. Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and ESSA segments, is approximately 40% of our consolidated net revenue. Generally, our finished goods beverage operations produce higher net revenue, but lower operating margins as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
Operating Profit
|
6/15/2019
|
|
|
6/16/2018
|
|
|
6/15/2019
|
|
|
6/16/2018
|
|
||||
FLNA
|
$
|
1,249
|
|
|
$
|
1,200
|
|
|
$
|
2,408
|
|
|
$
|
2,250
|
|
QFNA
|
127
|
|
|
145
|
|
|
265
|
|
|
300
|
|
||||
PBNA
|
690
|
|
|
747
|
|
|
1,079
|
|
|
1,135
|
|
||||
LatAm
|
278
|
|
|
269
|
|
|
508
|
|
|
458
|
|
||||
ESSA
|
366
|
|
|
438
|
|
|
491
|
|
|
556
|
|
||||
AMENA (a)
|
325
|
|
|
496
|
|
|
526
|
|
|
683
|
|
||||
Total division
|
$
|
3,035
|
|
|
$
|
3,295
|
|
|
$
|
5,277
|
|
|
$
|
5,382
|
|
Corporate unallocated expenses
|
(306
|
)
|
|
(267
|
)
|
|
(540
|
)
|
|
(547
|
)
|
||||
Total
|
$
|
2,729
|
|
|
$
|
3,028
|
|
|
$
|
4,737
|
|
|
$
|
4,835
|
|
(a)
|
Operating profit for AMENA for the 12 and 24 weeks ended June 16, 2018 includes a gain of $144 million associated with refranchising a portion of our beverage business in Thailand.
|
|
6/15/2019
|
||||||
|
12 Weeks Ended
|
|
24 Weeks Ended
|
|
|||
Cost of sales
|
$
|
82
|
|
|
$
|
90
|
|
Selling, general and administrative expenses
|
76
|
|
|
99
|
|
||
Other pension and retiree medical benefits income (a)
|
—
|
|
|
(5
|
)
|
||
Total restructuring and impairment charges
|
$
|
158
|
|
|
$
|
184
|
|
After-tax amount
|
$
|
120
|
|
|
$
|
143
|
|
Net income attributable to PepsiCo per common share
|
$
|
0.08
|
|
|
$
|
0.10
|
|
(a)
|
Income amount represents adjustments for changes in estimates of previously recorded amounts.
|
|
6/15/2019
|
|
|
||||||||
|
12 Weeks Ended
|
|
24 Weeks Ended
|
|
|
Plan to Date
|
|||||
FLNA
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
37
|
|
QFNA
|
—
|
|
|
—
|
|
|
5
|
|
|||
PBNA
|
10
|
|
|
16
|
|
|
56
|
|
|||
LatAm
|
21
|
|
|
21
|
|
|
30
|
|
|||
ESSA
|
53
|
|
|
59
|
|
|
67
|
|
|||
AMENA
|
42
|
|
|
53
|
|
|
56
|
|
|||
Corporate
|
26
|
|
|
34
|
|
|
41
|
|
|||
|
158
|
|
|
189
|
|
|
292
|
|
|||
Other pension and retiree medical benefits (income)/expense (a)
|
—
|
|
|
(5
|
)
|
|
30
|
|
|||
|
$
|
158
|
|
|
$
|
184
|
|
|
$
|
322
|
|
(a)
|
Income amount represents adjustments for changes in estimates of previously recorded amounts.
|
|
6/15/2019
|
|
|
||||||||
|
12 Weeks Ended
|
|
24 Weeks Ended
|
|
Plan to Date
|
||||||
Severance and other employee costs
|
$
|
43
|
|
|
$
|
40
|
|
|
$
|
177
|
|
Asset impairments
|
76
|
|
|
84
|
|
|
84
|
|
|||
Other costs (a)
|
39
|
|
|
60
|
|
|
61
|
|
|||
|
$
|
158
|
|
|
$
|
184
|
|
|
$
|
322
|
|
(a)
|
Includes other costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees.
|
|
Severance and Other Employee Costs
|
|
Asset
Impairments
|
|
Other Costs
|
|
Total
|
||||||||
Liability as of December 29, 2018
|
$
|
105
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
106
|
|
2019 restructuring charges
|
40
|
|
|
84
|
|
|
60
|
|
|
184
|
|
||||
Cash payments (a)
|
(44
|
)
|
|
—
|
|
|
(20
|
)
|
|
(64
|
)
|
||||
Non-cash charges and translation
|
5
|
|
|
(84
|
)
|
|
—
|
|
|
(79
|
)
|
||||
Liability as of June 15, 2019
|
$
|
106
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
$
|
147
|
|
(a)
|
Excludes cash expenditures of $2 million reported in the cash flow statement in pension and retiree medical contributions.
|
|
6/16/2018
|
||||||
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||
Selling, general and administrative expenses
|
$
|
32
|
|
|
$
|
40
|
|
Other pension and retiree medical benefits expense
|
—
|
|
|
4
|
|
||
Total restructuring and impairment charges
|
$
|
32
|
|
|
$
|
44
|
|
After-tax amount
|
$
|
24
|
|
|
$
|
35
|
|
Net income attributable to PepsiCo per common share
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
6/16/2018
|
||||||
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||
FLNA
|
$
|
4
|
|
|
$
|
9
|
|
QFNA
|
—
|
|
|
1
|
|
||
PBNA
|
9
|
|
|
12
|
|
||
LatAm
|
3
|
|
|
12
|
|
||
ESSA
|
4
|
|
|
8
|
|
||
AMENA
|
2
|
|
|
4
|
|
||
Corporate (a)
|
10
|
|
|
(2
|
)
|
||
|
$
|
32
|
|
|
$
|
44
|
|
(a)
|
Income amount represents adjustments for changes in estimates of previously recorded amounts.
|
|
6/16/2018
|
||||||
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||
Severance and other employee costs
|
$
|
21
|
|
|
$
|
24
|
|
Asset impairments
|
4
|
|
|
8
|
|
||
Other costs
|
7
|
|
|
12
|
|
||
|
$
|
32
|
|
|
$
|
44
|
|
|
|
6/15/2019
|
|
12/29/2018
|
||||||||||||||||||||
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
Acquired franchise rights
|
|
$
|
842
|
|
|
$
|
(148
|
)
|
|
$
|
694
|
|
|
$
|
838
|
|
|
$
|
(140
|
)
|
|
$
|
698
|
|
Reacquired franchise rights
|
|
106
|
|
|
(105
|
)
|
|
1
|
|
|
106
|
|
|
(105
|
)
|
|
1
|
|
||||||
Brands
|
|
1,305
|
|
|
(1,043
|
)
|
|
262
|
|
|
1,306
|
|
|
(1,032
|
)
|
|
274
|
|
||||||
Other identifiable intangibles (a)
|
|
777
|
|
|
(301
|
)
|
|
476
|
|
|
959
|
|
|
(288
|
)
|
|
671
|
|
||||||
|
|
$
|
3,030
|
|
|
$
|
(1,597
|
)
|
|
$
|
1,433
|
|
|
$
|
3,209
|
|
|
$
|
(1,565
|
)
|
|
$
|
1,644
|
|
(a)
|
The change from December 29, 2018 to June 15, 2019 primarily reflects revisions to the purchase price allocation for our acquisition of SodaStream.
|
|
Balance
12/29/2018
|
|
Acquisitions/
(Divestitures) |
|
Translation
and Other |
|
Balance
6/15/2019
|
||||||||
|
|
|
|
||||||||||||
FLNA
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
297
|
|
|
$
|
(3
|
)
|
|
$
|
3
|
|
|
$
|
297
|
|
Brands
|
161
|
|
|
—
|
|
|
—
|
|
|
161
|
|
||||
|
458
|
|
|
(3
|
)
|
|
3
|
|
|
458
|
|
||||
QFNA
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
184
|
|
|
11
|
|
|
—
|
|
|
195
|
|
||||
Brands
|
25
|
|
|
(14
|
)
|
|
—
|
|
|
11
|
|
||||
|
209
|
|
|
(3
|
)
|
|
—
|
|
|
206
|
|
||||
PBNA (a)
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
9,813
|
|
|
134
|
|
|
9
|
|
|
9,956
|
|
||||
Reacquired franchise rights
|
7,058
|
|
|
—
|
|
|
16
|
|
|
7,074
|
|
||||
Acquired franchise rights
|
1,510
|
|
|
—
|
|
|
4
|
|
|
1,514
|
|
||||
Brands
|
353
|
|
|
322
|
|
|
—
|
|
|
675
|
|
||||
|
18,734
|
|
|
456
|
|
|
29
|
|
|
19,219
|
|
||||
LatAm
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
509
|
|
|
—
|
|
|
(7
|
)
|
|
502
|
|
||||
Brands
|
127
|
|
|
—
|
|
|
(2
|
)
|
|
125
|
|
||||
|
636
|
|
|
—
|
|
|
(9
|
)
|
|
627
|
|
||||
ESSA (b)
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
3,611
|
|
|
630
|
|
|
60
|
|
|
4,301
|
|
||||
Reacquired franchise rights
|
497
|
|
|
—
|
|
|
(3
|
)
|
|
494
|
|
||||
Acquired franchise rights
|
161
|
|
|
—
|
|
|
(5
|
)
|
|
156
|
|
||||
Brands
|
4,188
|
|
|
(378
|
)
|
|
29
|
|
|
3,839
|
|
||||
|
8,457
|
|
|
252
|
|
|
81
|
|
|
8,790
|
|
||||
AMENA
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
394
|
|
|
(4
|
)
|
|
(9
|
)
|
|
381
|
|
||||
Brands
|
101
|
|
|
—
|
|
|
(2
|
)
|
|
99
|
|
||||
|
495
|
|
|
(4
|
)
|
|
(11
|
)
|
|
480
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total goodwill
|
14,808
|
|
|
768
|
|
|
56
|
|
|
15,632
|
|
||||
Total reacquired franchise rights
|
7,555
|
|
|
—
|
|
|
13
|
|
|
7,568
|
|
||||
Total acquired franchise rights
|
1,671
|
|
|
—
|
|
|
(1
|
)
|
|
1,670
|
|
||||
Total brands
|
4,955
|
|
|
(70
|
)
|
|
25
|
|
|
4,910
|
|
||||
|
$
|
28,989
|
|
|
$
|
698
|
|
|
$
|
93
|
|
|
$
|
29,780
|
|
(a)
|
The change from December 29, 2018 to June 15, 2019 primarily reflects our acquisition of CytoSport Inc.
|
(b)
|
The change from December 29, 2018 to June 15, 2019 primarily reflects revisions to the purchase price allocation for our acquisition of SodaStream.
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
6/15/2019
|
|
|
6/16/2018
|
|
|
6/15/2019
|
|
|
6/16/2018
|
|
||||
Share-based compensation expense - equity awards
|
$
|
61
|
|
|
$
|
66
|
|
|
$
|
118
|
|
|
$
|
146
|
|
Share-based compensation expense - liability awards
|
3
|
|
|
(4
|
)
|
|
4
|
|
|
2
|
|
||||
Restructuring charges
|
1
|
|
|
(1
|
)
|
|
1
|
|
|
2
|
|
||||
Total
|
$
|
65
|
|
|
$
|
61
|
|
|
$
|
123
|
|
|
$
|
150
|
|
|
24 Weeks Ended
|
||||||||||||
|
6/15/2019
|
|
6/16/2018
|
||||||||||
|
Granted(a)
|
|
Weighted-Average Grant Price
|
|
Granted(a)
|
|
Weighted-Average Grant Price
|
||||||
Stock options
|
1.1
|
|
|
$
|
116.00
|
|
|
1.2
|
|
|
$
|
108.75
|
|
RSUs and PSUs
|
2.7
|
|
|
$
|
116.03
|
|
|
2.6
|
|
|
$
|
108.70
|
|
(a)
|
In millions. All grant activity is disclosed at target.
|
|
24 Weeks Ended
|
||||
|
6/15/2019
|
|
|
6/16/2018
|
|
Expected life
|
5 years
|
|
|
5 years
|
|
Risk-free interest rate
|
2.6
|
%
|
|
2.6
|
%
|
Expected volatility
|
14
|
%
|
|
12
|
%
|
Expected dividend yield
|
3.1
|
%
|
|
2.7
|
%
|
|
12 Weeks Ended
|
||||||||||||||||||||||
|
Pension
|
|
Retiree Medical
|
||||||||||||||||||||
|
6/15/2019
|
|
|
6/16/2018
|
|
|
6/15/2019
|
|
|
6/16/2018
|
|
|
6/15/2019
|
|
|
6/16/2018
|
|
||||||
|
U.S.
|
|
International
|
|
|
||||||||||||||||||
Service cost
|
$
|
88
|
|
|
$
|
99
|
|
|
$
|
18
|
|
|
$
|
22
|
|
|
$
|
6
|
|
|
$
|
8
|
|
Interest cost
|
126
|
|
|
111
|
|
|
23
|
|
|
23
|
|
|
8
|
|
|
8
|
|
||||||
Expected return on plan assets
|
(206
|
)
|
|
(217
|
)
|
|
(45
|
)
|
|
(48
|
)
|
|
(4
|
)
|
|
(5
|
)
|
||||||
Amortization of prior service cost/(credits)
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(4
|
)
|
||||||
Amortization of net losses/(gains)
|
37
|
|
|
42
|
|
|
8
|
|
|
11
|
|
|
(6
|
)
|
|
(3
|
)
|
||||||
Total
|
$
|
48
|
|
|
$
|
35
|
|
|
$
|
4
|
|
|
$
|
8
|
|
|
$
|
(1
|
)
|
|
$
|
4
|
|
|
24 Weeks Ended
|
||||||||||||||||||||||
|
Pension
|
|
Retiree Medical
|
||||||||||||||||||||
|
6/15/2019
|
|
|
6/16/2018
|
|
|
6/15/2019
|
|
|
6/16/2018
|
|
|
6/15/2019
|
|