Basis of Presentation (Tables)

6 Months Ended

Jun. 13, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Segment Reporting Disclosure [Text Block]

Net revenue of each division is as follows:

	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

Our primary performance obligation is the distribution and sales of beverage, food and snack products to our customers. The following tables reflect the approximate percentage of net revenue generated between our beverage business and our food and snack business for each of our international divisions, as well as our consolidated net revenue:

	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.

Operating profit of each division is as follows:

	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

Operating profit in the 12 and 24 weeks ended June 13, 2020 includes certain pre-tax charges taken as a result of the COVID-19 pandemic. These pre-tax charges by division are as follows:

	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.