☒
|
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.)
|
(Address of principal executive offices and Zip Code)
|
Registrant's telephone number, including area code
|
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
|
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
|
1.750% Senior Notes Due 2021
|
|
PEP21a
|
|
The Nasdaq Stock Market LLC
|
2.500% Senior Notes Due 2022
|
|
PEP22a
|
|
The Nasdaq Stock Market LLC
|
0.250% Senior Notes Due 2024
|
|
PEP24
|
|
The Nasdaq Stock Market LLC
|
2.625% Senior Notes Due 2026
|
|
PEP26
|
|
The Nasdaq Stock Market LLC
|
0.750% Senior Notes Due 2027
|
|
PEP27
|
|
The Nasdaq Stock Market LLC
|
0.875% Senior Notes Due 2028
|
|
PEP28
|
|
The Nasdaq Stock Market LLC
|
0.500% Senior Notes Due 2028
|
|
PEP28a
|
|
The Nasdaq Stock Market LLC
|
1.125% Senior Notes Due 2031
|
|
PEP31
|
|
The Nasdaq Stock Market LLC
|
0.875% Senior Notes Due 2039
|
|
PEP39
|
|
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
|
||||||||||||
|
6/13/2020
|
|
|
6/15/2019
|
|
|
6/13/2020
|
|
|
6/15/2019
|
|
||||
Net Revenue
|
$
|
15,945
|
|
|
$
|
16,449
|
|
|
$
|
29,826
|
|
|
$
|
29,333
|
|
Cost of sales
|
7,088
|
|
|
7,404
|
|
|
13,215
|
|
|
13,092
|
|
||||
Gross profit
|
8,857
|
|
|
9,045
|
|
|
16,611
|
|
|
16,241
|
|
||||
Selling, general and administrative expenses
|
6,538
|
|
|
6,316
|
|
|
12,368
|
|
|
11,504
|
|
||||
Operating Profit
|
2,319
|
|
|
2,729
|
|
|
4,243
|
|
|
4,737
|
|
||||
Other pension and retiree medical benefits income
|
84
|
|
|
61
|
|
|
161
|
|
|
125
|
|
||||
Net interest expense and other
|
(235
|
)
|
|
(223
|
)
|
|
(525
|
)
|
|
(427
|
)
|
||||
Income before income taxes
|
2,168
|
|
|
2,567
|
|
|
3,879
|
|
|
4,435
|
|
||||
Provision for income taxes
|
510
|
|
|
524
|
|
|
870
|
|
|
970
|
|
||||
Net income
|
1,658
|
|
|
2,043
|
|
|
3,009
|
|
|
3,465
|
|
||||
Less: Net income attributable to noncontrolling interests
|
12
|
|
|
8
|
|
|
25
|
|
|
17
|
|
||||
Net Income Attributable to PepsiCo
|
$
|
1,646
|
|
|
$
|
2,035
|
|
|
$
|
2,984
|
|
|
$
|
3,448
|
|
Net Income Attributable to PepsiCo per Common Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.19
|
|
|
$
|
1.45
|
|
|
$
|
2.15
|
|
|
$
|
2.46
|
|
Diluted
|
$
|
1.18
|
|
|
$
|
1.44
|
|
|
$
|
2.14
|
|
|
$
|
2.44
|
|
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
1,387
|
|
|
1,401
|
|
|
1,389
|
|
|
1,403
|
|
||||
Diluted
|
1,393
|
|
|
1,409
|
|
|
1,395
|
|
|
1,411
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
6/13/2020
|
|
|
6/15/2019
|
|
|
6/13/2020
|
|
|
6/15/2019
|
|
||||
Net income
|
$
|
1,658
|
|
|
$
|
2,043
|
|
|
$
|
3,009
|
|
|
$
|
3,465
|
|
Other comprehensive (loss)/income, net of taxes:
|
|
|
|
|
|
|
|
||||||||
Net currency translation adjustment
|
(796
|
)
|
|
(365
|
)
|
|
(1,550
|
)
|
|
108
|
|
||||
Net change on cash flow hedges
|
13
|
|
|
(6
|
)
|
|
(48
|
)
|
|
(33
|
)
|
||||
Net pension and retiree medical adjustments
|
63
|
|
|
42
|
|
|
120
|
|
|
59
|
|
||||
Other
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
|
(721
|
)
|
|
(328
|
)
|
|
(1,478
|
)
|
|
135
|
|
||||
Comprehensive income
|
937
|
|
|
1,715
|
|
|
1,531
|
|
|
3,600
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
(12
|
)
|
|
(8
|
)
|
|
(25
|
)
|
|
(17
|
)
|
||||
Comprehensive Income Attributable to PepsiCo
|
$
|
925
|
|
|
$
|
1,707
|
|
|
$
|
1,506
|
|
|
$
|
3,583
|
|
|
24 Weeks Ended
|
||||||
|
6/13/2020
|
|
|
6/15/2019
|
|
||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
3,009
|
|
|
$
|
3,465
|
|
Depreciation and amortization
|
1,122
|
|
|
1,056
|
|
||
Share-based compensation expense
|
101
|
|
|
118
|
|
||
Restructuring and impairment charges
|
63
|
|
|
184
|
|
||
Cash payments for restructuring charges
|
(109
|
)
|
|
(153
|
)
|
||
Pension and retiree medical plan expenses
|
80
|
|
|
98
|
|
||
Pension and retiree medical plan contributions
|
(293
|
)
|
|
(317
|
)
|
||
Deferred income taxes and other tax charges and credits
|
109
|
|
|
221
|
|
||
Net tax related to the Tax Cuts and Jobs Act (TCJ Act)
|
—
|
|
|
(29
|
)
|
||
Tax payments related to the TCJ Act
|
—
|
|
|
(393
|
)
|
||
Change in assets and liabilities:
|
|
|
|
||||
Accounts and notes receivable
|
(1,101
|
)
|
|
(1,372
|
)
|
||
Inventories
|
(827
|
)
|
|
(872
|
)
|
||
Prepaid expenses and other current assets
|
(251
|
)
|
|
(336
|
)
|
||
Accounts payable and other current liabilities
|
(1,336
|
)
|
|
(521
|
)
|
||
Income taxes payable
|
448
|
|
|
202
|
|
||
Other, net
|
447
|
|
|
37
|
|
||
Net Cash Provided by Operating Activities
|
1,462
|
|
|
1,388
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Capital spending
|
(1,188
|
)
|
|
(1,167
|
)
|
||
Sales of property, plant and equipment
|
18
|
|
|
42
|
|
||
Acquisitions, net of cash acquired, and investments in noncontrolled affiliates
|
(5,649
|
)
|
|
(2,424
|
)
|
||
Divestitures
|
4
|
|
|
270
|
|
||
Short-term investments, by original maturity:
|
|
|
|
||||
More than three months - maturities
|
—
|
|
|
4
|
|
||
More than three months - sales
|
—
|
|
|
2
|
|
||
Three months or less, net
|
18
|
|
|
8
|
|
||
Other investing, net
|
35
|
|
|
(6
|
)
|
||
Net Cash Used for Investing Activities
|
(6,762
|
)
|
|
(3,271
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Proceeds from issuances of long-term debt
|
10,564
|
|
|
1,122
|
|
||
Payments of long-term debt
|
(752
|
)
|
|
(2,953
|
)
|
||
Short-term borrowings, by original maturity:
|
|
|
|
||||
More than three months - proceeds
|
3,663
|
|
|
6
|
|
||
More than three months - payments
|
(1,176
|
)
|
|
—
|
|
||
Three months or less, net
|
461
|
|
|
652
|
|
||
Cash dividends paid
|
(2,677
|
)
|
|
(2,635
|
)
|
||
Share repurchases - common
|
(1,137
|
)
|
|
(1,726
|
)
|
||
Proceeds from exercises of stock options
|
120
|
|
|
210
|
|
||
Withholding tax payments on restricted stock units (RSUs) and performance stock units (PSUs) converted
|
(79
|
)
|
|
(100
|
)
|
||
Other financing
|
(16
|
)
|
|
(15
|
)
|
||
Net Cash Provided by/(Used for) Financing Activities
|
8,971
|
|
|
(5,439
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
(252
|
)
|
|
24
|
|
||
Net Increase/(Decrease) in Cash and Cash Equivalents and Restricted Cash
|
3,419
|
|
|
(7,298
|
)
|
||
Cash and Cash Equivalents and Restricted Cash, Beginning of Year
|
5,570
|
|
|
10,769
|
|
||
Cash and Cash Equivalents and Restricted Cash, End of Period
|
$
|
8,989
|
|
|
$
|
3,471
|
|
|
|
|
|
||||
Supplemental Non-Cash Activity
|
|
|
|
||||
Right-of-use assets obtained in exchange for lease obligations
|
$
|
302
|
|
|
$
|
170
|
|
|
(Unaudited)
|
|
|
|
|||
|
6/13/2020
|
|
|
12/28/2019
|
|
||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
8,927
|
|
|
$
|
5,509
|
|
Short-term investments
|
196
|
|
|
229
|
|
||
Accounts and notes receivable, less allowance: 6/20 - $235 and 12/19 - $105
|
8,780
|
|
|
7,822
|
|
||
Inventories:
|
|
|
|
||||
Raw materials and packaging
|
1,869
|
|
|
1,395
|
|
||
Work-in-process
|
344
|
|
|
200
|
|
||
Finished goods
|
2,101
|
|
|
1,743
|
|
||
|
4,314
|
|
|
3,338
|
|
||
Prepaid expenses and other current assets
|
972
|
|
|
747
|
|
||
Total Current Assets
|
23,189
|
|
|
17,645
|
|
||
Property, plant and equipment
|
43,018
|
|
|
43,003
|
|
||
Accumulated depreciation
|
(23,831
|
)
|
|
(23,698
|
)
|
||
Property, Plant and Equipment, net
|
19,187
|
|
|
19,305
|
|
||
Amortizable Intangible Assets, net
|
1,465
|
|
|
1,433
|
|
||
Goodwill
|
17,845
|
|
|
15,501
|
|
||
Other indefinite-lived intangible assets
|
17,530
|
|
|
14,610
|
|
||
Indefinite-Lived Intangible Assets
|
35,375
|
|
|
30,111
|
|
||
Investments in Noncontrolled Affiliates
|
2,715
|
|
|
2,683
|
|
||
Deferred Income Taxes
|
4,351
|
|
|
4,359
|
|
||
Other Assets
|
3,243
|
|
|
3,011
|
|
||
Total Assets
|
$
|
89,525
|
|
|
$
|
78,547
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Short-term debt obligations
|
$
|
6,607
|
|
|
$
|
2,920
|
|
Accounts payable and other current liabilities
|
17,220
|
|
|
17,541
|
|
||
Total Current Liabilities
|
23,827
|
|
|
20,461
|
|
||
Long-Term Debt Obligations
|
38,371
|
|
|
29,148
|
|
||
Deferred Income Taxes
|
4,203
|
|
|
4,091
|
|
||
Other Liabilities
|
10,537
|
|
|
9,979
|
|
||
Total Liabilities
|
76,938
|
|
|
63,679
|
|
||
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: 1,385 and 1,391 shares, respectively)
|
23
|
|
|
23
|
|
||
Capital in excess of par value
|
3,772
|
|
|
3,886
|
|
||
Retained earnings
|
62,145
|
|
|
61,946
|
|
||
Accumulated other comprehensive loss
|
(15,778
|
)
|
|
(14,300
|
)
|
||
Repurchased common stock, in excess of par value (482 and 476 shares, respectively)
|
(37,671
|
)
|
|
(36,769
|
)
|
||
Total PepsiCo Common Shareholders’ Equity
|
12,491
|
|
|
14,786
|
|
||
Noncontrolling interests
|
96
|
|
|
82
|
|
||
Total Equity
|
12,587
|
|
|
14,868
|
|
||
Total Liabilities and Equity
|
$
|
89,525
|
|
|
$
|
78,547
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||||||||||||||
|
6/13/2020
|
|
6/15/2019
|
|
6/13/2020
|
|
6/15/2019
|
||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
||||||||||||
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
1,389
|
|
|
$
|
23
|
|
|
1,404
|
|
|
$
|
23
|
|
|
1,391
|
|
|
$
|
23
|
|
|
1,409
|
|
|
$
|
23
|
|
Change in repurchased common stock
|
(4
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
||||
Balance, end of period
|
1,385
|
|
|
23
|
|
|
1,399
|
|
|
23
|
|
|
1,385
|
|
|
23
|
|
|
1,399
|
|
|
23
|
|
||||
Capital in Excess of Par Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
3,741
|
|
|
|
|
3,753
|
|
|
|
|
3,886
|
|
|
|
|
3,953
|
|
||||||||
Share-based compensation expense
|
|
|
39
|
|
|
|
|
62
|
|
|
|
|
101
|
|
|
|
|
119
|
|
||||||||
Stock option exercises, RSUs and PSUs converted
|
|
|
(5
|
)
|
|
|
|
(12
|
)
|
|
|
|
(136
|
)
|
|
|
|
(176
|
)
|
||||||||
Withholding tax on RSUs and PSUs converted
|
|
|
(3
|
)
|
|
|
|
(7
|
)
|
|
|
|
(79
|
)
|
|
|
|
(100
|
)
|
||||||||
Balance, end of period
|
|
|
3,772
|
|
|
|
|
3,796
|
|
|
|
|
3,772
|
|
|
|
|
3,796
|
|
||||||||
Retained Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
61,920
|
|
|
|
|
60,060
|
|
|
|
|
61,946
|
|
|
|
|
59,947
|
|
||||||||
Cumulative effect of accounting changes
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(34
|
)
|
|
|
|
8
|
|
||||||||
Net income attributable to PepsiCo
|
|
|
1,646
|
|
|
|
|
2,035
|
|
|
|
|
2,984
|
|
|
|
|
3,448
|
|
||||||||
Cash dividends declared – common (a)
|
|
|
(1,421
|
)
|
|
|
|
(1,343
|
)
|
|
|
|
(2,751
|
)
|
|
|
|
(2,651
|
)
|
||||||||
Balance, end of period
|
|
|
62,145
|
|
|
|
|
60,752
|
|
|
|
|
62,145
|
|
|
|
|
60,752
|
|
||||||||
Accumulated Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
(15,057
|
)
|
|
|
|
(14,656
|
)
|
|
|
|
(14,300
|
)
|
|
|
|
(15,119
|
)
|
||||||||
Other comprehensive (loss)/income attributable to PepsiCo
|
|
|
(721
|
)
|
|
|
|
(328
|
)
|
|
|
|
(1,478
|
)
|
|
|
|
135
|
|
||||||||
Balance, end of period
|
|
|
(15,778
|
)
|
|
|
|
(14,984
|
)
|
|
|
|
(15,778
|
)
|
|
|
|
(14,984
|
)
|
||||||||
Repurchased Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
(478
|
)
|
|
(37,162
|
)
|
|
(463
|
)
|
|
(34,978
|
)
|
|
(476
|
)
|
|
(36,769
|
)
|
|
(458
|
)
|
|
(34,286
|
)
|
||||
Share repurchases
|
(5
|
)
|
|
(557
|
)
|
|
(6
|
)
|
|
(779
|
)
|
|
(9
|
)
|
|
(1,159
|
)
|
|
(15
|
)
|
|
(1,750
|
)
|
||||
Stock option exercises, RSUs and PSUs converted
|
1
|
|
|
48
|
|
|
1
|
|
|
122
|
|
|
3
|
|
|
257
|
|
|
5
|
|
|
401
|
|
||||
Balance, end of period
|
(482
|
)
|
|
(37,671
|
)
|
|
(468
|
)
|
|
(35,635
|
)
|
|
(482
|
)
|
|
(37,671
|
)
|
|
(468
|
)
|
|
(35,635
|
)
|
||||
Total PepsiCo Common Shareholders’ Equity
|
|
|
12,491
|
|
|
|
|
13,952
|
|
|
|
|
12,491
|
|
|
|
|
13,952
|
|
||||||||
Noncontrolling Interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
94
|
|
|
|
|
94
|
|
|
|
|
82
|
|
|
|
|
84
|
|
||||||||
Net income attributable to noncontrolling interests
|
|
|
12
|
|
|
|
|
8
|
|
|
|
|
25
|
|
|
|
|
17
|
|
||||||||
Distributions to noncontrolling interests
|
|
|
(15
|
)
|
|
|
|
(15
|
)
|
|
|
|
(15
|
)
|
|
|
|
(15
|
)
|
||||||||
Acquisitions
|
|
|
6
|
|
|
|
|
—
|
|
|
|
|
6
|
|
|
|
|
—
|
|
||||||||
Other, net
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
||||||||
Balance, end of period
|
|
|
96
|
|
|
|
|
85
|
|
|
|
|
96
|
|
|
|
|
85
|
|
||||||||
Total Equity
|
|
|
$
|
12,587
|
|
|
|
|
$
|
14,037
|
|
|
|
|
$
|
12,587
|
|
|
|
|
$
|
14,037
|
|
(a)
|
Cash dividends declared per common share were $1.0225 and $0.955 for the 12 weeks ended June 13, 2020 and June 15, 2019, respectively, and $1.9775 and $1.8825 for the 24 weeks ended June 13, 2020 and June 15, 2019, 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;
|
4)
|
Latin America (LatAm), which includes all of our beverage, food and snack businesses in Latin America;
|
5)
|
Europe, which includes all of our beverage, food and snack businesses in Europe;
|
6)
|
Africa, Middle East and South Asia (AMESA), which includes all of our beverage, food and snack businesses in Africa, the Middle East and South Asia; and
|
7)
|
Asia Pacific, Australia and New Zealand and China region (APAC), which includes all of our beverage, food and snack businesses in Asia Pacific, Australia and New Zealand, and China region.
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
6/13/2020
|
|
|
6/15/2019
|
|
|
6/13/2020
|
|
|
6/15/2019
|
|
||||
FLNA
|
$
|
4,273
|
|
|
$
|
4,010
|
|
|
$
|
8,347
|
|
|
$
|
7,825
|
|
QFNA
|
664
|
|
|
540
|
|
|
1,298
|
|
|
1,134
|
|
||||
PBNA
|
4,970
|
|
|
5,322
|
|
|
9,808
|
|
|
9,832
|
|
||||
LatAm
|
1,567
|
|
|
1,886
|
|
|
2,877
|
|
|
3,127
|
|
||||
Europe
|
2,725
|
|
|
3,000
|
|
|
4,564
|
|
|
4,620
|
|
||||
AMESA
|
983
|
|
|
997
|
|
|
1,614
|
|
|
1,576
|
|
||||
APAC
|
763
|
|
|
694
|
|
|
1,318
|
|
|
1,219
|
|
||||
Total
|
$
|
15,945
|
|
|
$
|
16,449
|
|
|
$
|
29,826
|
|
|
$
|
29,333
|
|
|
12 Weeks Ended
|
||||||||||
|
6/13/2020
|
|
6/15/2019
|
||||||||
|
Beverage(a)
|
|
Food/Snack
|
|
Beverage(a)
|
|
Food/Snack
|
||||
LatAm
|
10
|
%
|
|
90
|
%
|
|
10
|
%
|
|
90
|
%
|
Europe
|
50
|
%
|
|
50
|
%
|
|
55
|
%
|
|
45
|
%
|
AMESA
|
40
|
%
|
|
60
|
%
|
|
45
|
%
|
|
55
|
%
|
APAC
|
25
|
%
|
|
75
|
%
|
|
30
|
%
|
|
70
|
%
|
PepsiCo
|
45
|
%
|
|
55
|
%
|
|
45
|
%
|
|
55
|
%
|
|
24 Weeks Ended
|
||||||||||
|
6/13/2020
|
|
6/15/2019
|
||||||||
|
Beverage(a)
|
|
Food/Snack
|
|
Beverage(a)
|
|
Food/Snack
|
||||
LatAm
|
10
|
%
|
|
90
|
%
|
|
10
|
%
|
|
90
|
%
|
Europe
|
55
|
%
|
|
45
|
%
|
|
55
|
%
|
|
45
|
%
|
AMESA
|
35
|
%
|
|
65
|
%
|
|
45
|
%
|
|
55
|
%
|
APAC
|
25
|
%
|
|
75
|
%
|
|
25
|
%
|
|
75
|
%
|
PepsiCo
|
45
|
%
|
|
55
|
%
|
|
45
|
%
|
|
55
|
%
|
(a)
|
Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and Europe segments, was 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
|
||||||||||||
|
6/13/2020
|
|
|
6/15/2019
|
|
|
6/13/2020
|
|
|
6/15/2019
|
|
||||
FLNA
|
$
|
1,278
|
|
|
$
|
1,249
|
|
|
$
|
2,480
|
|
|
$
|
2,408
|
|
QFNA
|
196
|
|
|
127
|
|
|
346
|
|
|
265
|
|
||||
PBNA
|
397
|
|
|
690
|
|
|
694
|
|
|
1,079
|
|
||||
LatAm
|
219
|
|
|
278
|
|
|
450
|
|
|
508
|
|
||||
Europe
|
351
|
|
|
339
|
|
|
497
|
|
|
454
|
|
||||
AMESA
|
59
|
|
|
236
|
|
|
193
|
|
|
341
|
|
||||
APAC
|
189
|
|
|
116
|
|
|
331
|
|
|
222
|
|
||||
Total division
|
$
|
2,689
|
|
|
$
|
3,035
|
|
|
$
|
4,991
|
|
|
$
|
5,277
|
|
Corporate unallocated expenses
|
(370
|
)
|
|
(306
|
)
|
|
(748
|
)
|
|
(540
|
)
|
||||
Total
|
$
|
2,319
|
|
|
$
|
2,729
|
|
|
$
|
4,243
|
|
|
$
|
4,737
|
|
|
12 Weeks Ended 6/13/2020
|
||||||||||||||||||||||||||
|
Allowances for Expected Credit Losses(a)
|
|
Upfront Payments to Customers(b)
|
|
Inventory Write-Downs and Product Returns(c)
|
|
Employee Compensation Expense(d)
|
|
Employee Protection Costs(e)
|
|
Other(f)
|
|
Total
|
||||||||||||||
FLNA (g)
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
100
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
135
|
|
QFNA
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|
7
|
|
|||||||
PBNA
|
4
|
|
|
2
|
|
|
7
|
|
|
84
|
|
|
31
|
|
|
9
|
|
|
137
|
|
|||||||
LatAm
|
1
|
|
|
—
|
|
|
6
|
|
|
16
|
|
|
8
|
|
|
3
|
|
|
34
|
|
|||||||
Europe
|
—
|
|
|
1
|
|
|
10
|
|
|
9
|
|
|
8
|
|
|
17
|
|
|
45
|
|
|||||||
AMESA
|
1
|
|
|
—
|
|
|
1
|
|
|
7
|
|
|
4
|
|
|
4
|
|
|
17
|
|
|||||||
APAC
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|||||||
Total
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
28
|
|
|
$
|
224
|
|
|
$
|
86
|
|
|
$
|
33
|
|
|
$
|
378
|
|
|
24 Weeks Ended 6/13/2020
|
||||||||||||||||||||||||||
|
Allowances for Expected Credit Losses(a)
|
|
Upfront Payments to Customers(b)
|
|
Inventory Write-Downs and Product Returns(c)
|
|
Employee Compensation Expense(d)
|
|
Employee Protection Costs(e)
|
|
Other(f)
|
|
Total
|
||||||||||||||
FLNA
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
100
|
|
|
$
|
33
|
|
|
$
|
3
|
|
|
$
|
162
|
|
QFNA
|
2
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|
9
|
|
|||||||
PBNA
|
45
|
|
|
46
|
|
|
29
|
|
|
84
|
|
|
31
|
|
|
10
|
|
|
245
|
|
|||||||
LatAm
|
1
|
|
|
—
|
|
|
6
|
|
|
16
|
|
|
8
|
|
|
3
|
|
|
34
|
|
|||||||
Europe
|
4
|
|
|
1
|
|
|
10
|
|
|
9
|
|
|
8
|
|
|
17
|
|
|
49
|
|
|||||||
AMESA
|
1
|
|
|
—
|
|
|
1
|
|
|
7
|
|
|
4
|
|
|
4
|
|
|
17
|
|
|||||||
APAC
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
5
|
|
|||||||
Total
|
$
|
72
|
|
|
$
|
47
|
|
|
$
|
54
|
|
|
$
|
224
|
|
|
$
|
86
|
|
|
$
|
38
|
|
|
$
|
521
|
|
(a)
|
Allowances reflect the expected impact of the global economic uncertainty caused by COVID-19, leveraging estimates of credit worthiness, default and recovery rates for certain of our customers, including foodservice and vending businesses.
|
(b)
|
Upfront payments relate to promotional spending for which benefit will not be received.
|
(c)
|
Inventory write-downs and product returns include a reserve for product returns of $9 million and $16 million in the 12 and 24 weeks ended June 13, 2020, respectively.
|
(d)
|
Includes incremental frontline incentive pay, crisis child care and other leave benefits and labor costs.
|
(e)
|
Includes costs associated with personal protective equipment, temperature scans, cleaning and other sanitization services.
|
(f)
|
Includes write-downs of property, plant and equipment, donations of cash and product and other certain costs.
|
(g)
|
Income amount represents adjustments for changes in estimates of previously recorded amounts.
|
|
FLNA
|
|
QFNA
|
|
PBNA
|
|
LatAm
|
|
Europe
|
|
AMESA
|
|
APAC
|
|
Corporate
|
||||||||
Expected pre-tax charges
|
11
|
%
|
|
2
|
%
|
|
30
|
%
|
|
10
|
%
|
|
25
|
%
|
|
8
|
%
|
|
5
|
%
|
|
9
|
%
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
6/13/2020
|
|
|
6/15/2019
|
|
|
6/13/2020
|
|
6/15/2019
|
|
|||||
Cost of sales
|
$
|
1
|
|
|
$
|
82
|
|
|
$
|
3
|
|
|
$
|
90
|
|
Selling, general and administrative expenses
|
23
|
|
|
76
|
|
|
53
|
|
|
99
|
|
||||
Other pension and retiree medical benefits expense/(income) (a)
|
1
|
|
|
—
|
|
|
7
|
|
|
(5
|
)
|
||||
Total restructuring and impairment charges
|
$
|
25
|
|
|
$
|
158
|
|
|
$
|
63
|
|
|
$
|
184
|
|
After-tax amount
|
$
|
21
|
|
|
$
|
120
|
|
|
$
|
53
|
|
|
$
|
143
|
|
Net income attributable to PepsiCo per common share
|
$
|
0.02
|
|
|
$
|
0.08
|
|
|
$
|
0.04
|
|
|
$
|
0.10
|
|
(a)
|
Income amount represents adjustments for changes in estimates of previously recorded amounts.
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
|
Plan to Date
|
|
|||||||||||||
|
6/13/2020
|
|
|
6/15/2019
|
|
|
6/13/2020
|
|
|
6/15/2019
|
|
|
through 6/13/2020
|
|
|||||
FLNA
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
60
|
|
QFNA
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
8
|
|
|||||
PBNA
|
—
|
|
|
10
|
|
|
3
|
|
|
16
|
|
|
94
|
|
|||||
LatAm
|
4
|
|
|
21
|
|
|
9
|
|
|
21
|
|
|
80
|
|
|||||
Europe
|
8
|
|
|
53
|
|
|
16
|
|
|
59
|
|
|
121
|
|
|||||
AMESA
|
5
|
|
|
8
|
|
|
7
|
|
|
16
|
|
|
48
|
|
|||||
APAC
|
3
|
|
|
34
|
|
|
3
|
|
|
37
|
|
|
52
|
|
|||||
Corporate
|
2
|
|
|
26
|
|
|
10
|
|
|
34
|
|
|
64
|
|
|||||
|
24
|
|
|
158
|
|
|
56
|
|
|
189
|
|
|
527
|
|
|||||
Other pension and retiree medical benefits expense/(income) (a)
|
1
|
|
|
—
|
|
|
7
|
|
|
(5
|
)
|
|
44
|
|
|||||
Total
|
$
|
25
|
|
|
$
|
158
|
|
|
$
|
63
|
|
|
$
|
184
|
|
|
$
|
571
|
|
(a)
|
Income amount represents adjustments for changes in estimates of previously recorded amounts.
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
|
Plan to Date
|
|
|||||||||||||
|
6/13/2020
|
|
|
6/15/2019
|
|
|
6/13/2020
|
|
|
6/15/2019
|
|
|
through 6/13/2020
|
|
|||||
Severance and other employee costs
|
$
|
2
|
|
|
$
|
43
|
|
|
$
|
24
|
|
|
$
|
40
|
|
|
$
|
310
|
|
Asset impairments
|
4
|
|
|
76
|
|
|
5
|
|
|
84
|
|
|
97
|
|
|||||
Other costs (a)
|
19
|
|
|
39
|
|
|
34
|
|
|
60
|
|
|
164
|
|
|||||
Total
|
$
|
25
|
|
|
$
|
158
|
|
|
$
|
63
|
|
|
$
|
184
|
|
|
$
|
571
|
|
(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 28, 2019
|
$
|
128
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
149
|
|
2020 restructuring charges
|
24
|
|
|
5
|
|
|
34
|
|
|
63
|
|
||||
Cash payments
|
(59
|
)
|
|
—
|
|
|
(50
|
)
|
|
(109
|
)
|
||||
Non-cash charges and translation
|
(11
|
)
|
|
(5
|
)
|
|
3
|
|
|
(13
|
)
|
||||
Liability as of June 13, 2020
|
$
|
82
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
90
|
|
|
|
6/13/2020
|
|
12/28/2019
|
||||||||||||||||||||
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
Acquired franchise rights
|
|
$
|
838
|
|
|
$
|
(162
|
)
|
|
$
|
676
|
|
|
$
|
846
|
|
|
$
|
(158
|
)
|
|
$
|
688
|
|
Reacquired franchise rights
|
|
105
|
|
|
(105
|
)
|
|
—
|
|
|
106
|
|
|
(105
|
)
|
|
1
|
|
||||||
Brands
|
|
1,300
|
|
|
(1,061
|
)
|
|
239
|
|
|
1,326
|
|
|
(1,066
|
)
|
|
260
|
|
||||||
Other identifiable intangibles
|
|
873
|
|
|
(323
|
)
|
|
550
|
|
|
810
|
|
|
(326
|
)
|
|
484
|
|
||||||
Total
|
|
$
|
3,116
|
|
|
$
|
(1,651
|
)
|
|
$
|
1,465
|
|
|
$
|
3,088
|
|
|
$
|
(1,655
|
)
|
|
$
|
1,433
|
|
|
Balance
12/28/2019
|
|
Acquisitions
|
|
Translation
and Other |
|
Balance
6/13/2020
|
||||||||
|
|
|
|
||||||||||||
FLNA (a)
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
299
|
|
|
$
|
160
|
|
|
$
|
(4
|
)
|
|
$
|
455
|
|
Brands
|
162
|
|
|
176
|
|
|
(1
|
)
|
|
337
|
|
||||
Total
|
461
|
|
|
336
|
|
|
(5
|
)
|
|
792
|
|
||||
QFNA
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
189
|
|
|
—
|
|
|
—
|
|
|
189
|
|
||||
Brands
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||
Total
|
200
|
|
|
—
|
|
|
—
|
|
|
200
|
|
||||
PBNA (b)
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
9,898
|
|
|
1,968
|
|
|
(16
|
)
|
|
11,850
|
|
||||
Reacquired franchise rights
|
7,089
|
|
|
—
|
|
|
(28
|
)
|
|
7,061
|
|
||||
Acquired franchise rights
|
1,517
|
|
|
141
|
|
|
(6
|
)
|
|
1,652
|
|
||||
Brands
|
763
|
|
|
2,700
|
|
|
1
|
|
|
3,464
|
|
||||
Total
|
19,267
|
|
|
4,809
|
|
|
(49
|
)
|
|
24,027
|
|
||||
LatAm
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
501
|
|
|
—
|
|
|
(58
|
)
|
|
443
|
|
||||
Brands
|
125
|
|
|
—
|
|
|
(21
|
)
|
|
104
|
|
||||
Total
|
626
|
|
|
—
|
|
|
(79
|
)
|
|
547
|
|
||||
Europe (c)
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
3,961
|
|
|
(3
|
)
|
|
(216
|
)
|
|
3,742
|
|
||||
Reacquired franchise rights
|
505
|
|
|
—
|
|
|
(30
|
)
|
|
475
|
|
||||
Acquired franchise rights
|
157
|
|
|
—
|
|
|
(1
|
)
|
|
156
|
|
||||
Brands
|
4,181
|
|
|
—
|
|
|
(211
|
)
|
|
3,970
|
|
||||
Total
|
8,804
|
|
|
(3
|
)
|
|
(458
|
)
|
|
8,343
|
|
||||
AMESA (d)
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
446
|
|
|
533
|
|
|
(10
|
)
|
|
969
|
|
||||
Brands
|
—
|
|
|
208
|
|
|
(3
|
)
|
|
205
|
|
||||
Total
|
446
|
|
|
741
|
|
|
(13
|
)
|
|
1,174
|
|
||||
APAC
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
207
|
|
|
—
|
|
|
(10
|
)
|
|
197
|
|
||||
Brands
|
100
|
|
|
—
|
|
|
(5
|
)
|
|
95
|
|
||||
Total
|
307
|
|
|
—
|
|
|
(15
|
)
|
|
292
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total goodwill
|
15,501
|
|
|
2,658
|
|
|
(314
|
)
|
|
17,845
|
|
||||
Total reacquired franchise rights
|
7,594
|
|
|
—
|
|
|
(58
|
)
|
|
7,536
|
|
||||
Total acquired franchise rights
|
1,674
|
|
|
141
|
|
|
(7
|
)
|
|
1,808
|
|
||||
Total brands
|
5,342
|
|
|
3,084
|
|
|
(240
|
)
|
|
8,186
|
|
||||
Total
|
$
|
30,111
|
|
|
$
|
5,883
|
|
|
$
|
(619
|
)
|
|