pep-20210612

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

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

0.400% Senior Notes Due 2032

PEP32

The Nasdaq Stock Market LLC

0.875% Senior Notes Due 2039

PEP39

The Nasdaq Stock Market LLC

1.050% Senior Notes Due 2050

PEP50

The Nasdaq Stock Market LLC


	12 Weeks Ended				24 Weeks Ended
	6/12/2021		6/13/2020		6/12/2021		6/13/2020
Net Revenue	$	19,217	$	15,945	$	34,037	$	29,826
Cost of sales	8,880		7,088		15,551		13,215
Gross profit	10,337		8,857		18,486		16,611
Selling, general and administrative expenses	7,208		6,538		13,045		12,368
Operating Profit	3,129		2,319		5,441		4,243
Other pension and retiree medical benefits income	126		84		246		161
Net interest expense and other	(241)		(235)		(499)		(525)
Income before income taxes	3,014		2,168		5,188		3,879
Provision for income taxes	642		510		1,093		870
Net income	2,372		1,658		4,095		3,009
Less: Net income attributable to noncontrolling interests	14		12		23		25
Net Income Attributable to PepsiCo	$	2,358	$	1,646	$	4,072	$	2,984
Net Income Attributable to PepsiCo per Common Share
Basic	$	1.71	$	1.19	$	2.95	$	2.15
Diluted	$	1.70	$	1.18	$	2.94	$	2.14
Weighted-average common shares outstanding
Basic	1,382		1,387		1,381		1,389
Diluted	1,388		1,393		1,387		1,395


	12 Weeks Ended				24 Weeks Ended
	6/12/2021		6/13/2020		6/12/2021		6/13/2020
Net income	$	2,372	$	1,658	$	4,095	$	3,009
Other comprehensive income/(loss), net of taxes:
Net currency translation adjustment	268		(796)		399		(1,550)
Net change on cash flow hedges	93		13		165		(48)
Net pension and retiree medical adjustments	24		63		51		120
Other	2		(1)		2		—
	387		(721)		617		(1,478)
Comprehensive income	2,759		937		4,712		1,531
Less: Comprehensive income attributable to noncontrolling interests	14		12		23		25
Comprehensive Income Attributable to PepsiCo	$	2,745	$	925	$	4,689	$	1,506


	24 Weeks Ended
	6/12/2021		6/13/2020
Operating Activities
Net income	$	4,095	$	3,009
Depreciation and amortization	1,213		1,122
Share-based compensation expense	144		101
Restructuring and impairment charges	77		63
Cash payments for restructuring charges	(104)		(109)
Inventory fair value adjustments and merger and integration charges	15		243
Cash payments for merger and integration charges	(14)		(89)
Pension and retiree medical plan expenses	48		80
Pension and retiree medical plan contributions	(461)		(293)
Deferred income taxes and other tax charges and credits	220		109

Tax payments related to the Tax Cuts and Jobs Act (TCJ Act)	(309)		—
Change in assets and liabilities:
Accounts and notes receivable	(1,214)		(1,101)
Inventories	(810)		(827)
Prepaid expenses and other current assets	(40)		(251)
Accounts payable and other current liabilities	(1,114)		(1,336)
Income taxes payable	516		448
Other, net	78		293
Net Cash Provided by Operating Activities	2,340		1,462

Investing Activities
Capital spending	(1,305)		(1,188)
Sales of property, plant and equipment	22		18
Acquisitions, net of cash acquired, and investments in noncontrolled affiliates	(22)		(5,649)
Divestitures and sales of investments in noncontrolled affiliates	120		4
Short-term investments, by original maturity:

More than three months - maturities	1,135		—

Three months or less, net	(67)		18
Other investing, net	1		35
Net Cash Used for Investing Activities	(116)		(6,762)


	24 Weeks Ended
	6/12/2021		6/13/2020
Financing Activities
Proceeds from issuances of long-term debt	—		10,564
Payments of long-term debt	(1,696)		(752)
Short-term borrowings, by original maturity:
More than three months - proceeds	—		3,663
More than three months - payments	(397)		(1,176)
Three months or less, net	89		461
Cash dividends paid	(2,842)		(2,677)
Share repurchases - common	(106)		(1,137)

Proceeds from exercises of stock options	100		120
Withholding tax payments on restricted stock units (RSUs) and performance stock units (PSUs) converted	(73)		(79)
Other financing	(19)		(16)
Net Cash (Used for)/Provided by Financing Activities	(4,944)		8,971
Effect of exchange rate changes on cash and cash equivalents and restricted cash	12		(252)
Net (Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash	(2,708)		3,419
Cash and Cash Equivalents and Restricted Cash, Beginning of Year	8,254		5,570
Cash and Cash Equivalents and Restricted Cash, End of Period	$	5,546	$	8,989

Supplemental Non-Cash Activity
Right-of-use assets obtained in exchange for lease obligations	$	319	$	302


	(Unaudited)
	6/12/2021		12/26/2020
ASSETS
Current Assets
Cash and cash equivalents	$	5,449	$	8,185
Short-term investments	328		1,366

Accounts and notes receivable, less allowance: 6/21 - $170 and 12/20 - $201	9,722		8,404
Inventories:
Raw materials and packaging	2,081		1,720
Work-in-process	381		205
Finished goods	2,544		2,247
	5,006		4,172
Prepaid expenses and other current assets	1,092		874
Total Current Assets	21,597		23,001
Property, plant and equipment	47,404		46,340
Accumulated depreciation	(25,785)		(24,971)
Property, Plant and Equipment, net	21,619		21,369
Amortizable Intangible Assets, net	1,686		1,703
Goodwill	18,893		18,757
Other Indefinite-Lived Intangible Assets	17,738		17,612

Investments in Noncontrolled Affiliates	2,774		2,792
Deferred Income Taxes	4,370		4,372
Other Assets	3,708		3,312
Total Assets	$	92,385	$	92,918

LIABILITIES AND EQUITY
Current Liabilities
Short-term debt obligations	$	4,264	$	3,780
Accounts payable and other current liabilities	19,359		19,592
Total Current Liabilities	23,623		23,372
Long-Term Debt Obligations	38,034		40,370
Deferred Income Taxes	4,625		4,284
Other Liabilities	10,705		11,340
Total Liabilities	76,987		79,366
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: 1,382 and 1,380 shares, respectively)	23		23
Capital in excess of par value	3,863		3,910
Retained earnings	64,605		63,443
Accumulated other comprehensive loss	(14,859)		(15,476)
Repurchased common stock, in excess of par value (485 and 487 shares, respectively)	(38,333)		(38,446)
Total PepsiCo Common Shareholders’ Equity	15,299		13,454
Noncontrolling interests	99		98
Total Equity	15,398		13,552
Total Liabilities and Equity	$	92,385	$	92,918


	12 Weeks Ended						24 Weeks Ended
	6/12/2021			6/13/2020			6/12/2021			6/13/2020
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount










Common Stock
Balance, beginning of period	1,382	$	23	1,389	$	23	1,380	$	23	1,391	$	23
Change in repurchased common stock	—	—		(4)	—		2	—		(6)	—
Balance, end of period	1,382	23		1,385	23		1,382	23		1,385	23
Capital in Excess of Par Value
Balance, beginning of period		3,800			3,741			3,910			3,886
Share-based compensation expense		65			39			145			101

Stock option exercises, RSUs and PSUs converted		—			(5)			(119)			(136)
Withholding tax on RSUs and PSUs converted		(2)			(3)			(73)			(79)

Balance, end of period		3,863			3,772			3,863			3,772
Retained Earnings
Balance, beginning of period		63,740			61,920			63,443			61,946
Cumulative effect of accounting changes		—			—			—			(34)
Net income attributable to PepsiCo		2,358			1,646			4,072			2,984
Cash dividends declared – common (a)		(1,493)			(1,421)			(2,910)			(2,751)

Balance, end of period		64,605			62,145			64,605			62,145
Accumulated Other Comprehensive Loss
Balance, beginning of period		(15,246)			(15,057)			(15,476)			(14,300)
Other comprehensive income/(loss) attributable to PepsiCo		387			(721)			617			(1,478)
Balance, end of period		(14,859)			(15,778)			(14,859)			(15,778)
Repurchased Common Stock
Balance, beginning of period	(485)	(38,370)		(478)	(37,162)		(487)	(38,446)		(476)	(36,769)
Share repurchases	—	—		(5)	(557)		(1)	(106)		(9)	(1,159)
Stock option exercises, RSUs and PSUs converted	—	37		1	48		3	219		3	257

Balance, end of period	(485)	(38,333)		(482)	(37,671)		(485)	(38,333)		(482)	(37,671)
Total PepsiCo Common Shareholders’ Equity		15,299			12,491			15,299			12,491
Noncontrolling Interests
Balance, beginning of period		106			94			98			82
Net income attributable to noncontrolling interest		14			12			23			25
Distributions to noncontrolling interests		(19)			(15)			(20)			(15)

Acquisitions		—			6			—			6
Other, net		(2)			(1)			(2)			(2)
Balance, end of period		99			96			99			96
Total Equity		$	15,398		$	12,587		$	15,398		$	12,587

Our discussion and analysis is intended to help the reader understand our results of operations and financial condition and is provided as an addition to, and should be read in connection with, our condensed consolidated financial statements and the accompanying notes. Unless otherwise noted, tabular dollars are presented in millions, except per share amounts. All per share amounts reflect common stock per share amounts, assume dilution unless otherwise noted, and are based on unrounded amounts. Percentage changes are based on unrounded amounts.

We offer sales incentives and discounts through various programs to customers and consumers. Total marketplace spending includes sales incentives, discounts, advertising and other marketing activities. Sales incentives and discounts are primarily accounted for as a reduction of revenue. A number of our sales incentives, such as bottler funding to independent bottlers and customer volume rebates, are based on annual targets, and accruals are established during the year, as products are delivered, for the expected payout, which may occur after year end once reconciled and settled.

These accruals are based on contract terms and our historical experience with similar programs and require management judgment with respect to estimating customer and consumer participation and performance levels. Differences between estimated expense and actual incentive costs are normally insignificant and are recognized in earnings in the period such differences are determined. In addition, certain advertising and marketing costs are also based on annual targets and recognized during the year as incurred.

For interim reporting, our policy is to allocate our forecasted full-year sales incentives for most of our programs to each of our interim reporting periods in the same year that benefits from the programs. The allocation methodology is based on our forecasted sales incentives for the full year and the proportion of each interim period’s actual gross revenue or volume, as applicable, to our forecasted annual gross revenue or volume, as applicable. Based on our review of the forecasts at each interim period, any changes in estimates and the related allocation of sales incentives are recognized beginning in the interim period that they are identified. In addition, we apply a similar allocation methodology for interim reporting purposes for certain advertising and other marketing activities.

In determining our quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on our expected annual income, statutory tax rates and tax structure and transactions, including transfer pricing arrangements, available to us in the various jurisdictions in which we operate. Significant judgment is required in determining our annual tax rate and in evaluating our tax positions. Subsequent recognition, derecognition and measurement of a tax position taken in a previous period are separately recognized in the quarter in which they occur.

This Form 10-Q contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (Reform Act). Statements that constitute forward-looking statements within the meaning of the Reform Act are generally identified through the inclusion of words such as “aim,” “anticipate,” “believe,” “drive,” “estimate,” “expect,” “expressed confidence,” “forecast,” “future,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “position,” “potential,” “project,” “seek,” “should,” “strategy,” “target,” “will” or similar statements or variations of such words and other similar expressions. All statements addressing our future operating performance, and statements addressing events and developments that we expect or anticipate will occur in the future, are forward-looking statements within the meaning of the Reform Act. These forward-looking statements are based on currently available information, operating plans and projections about future events and trends. They inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in any such forward-looking statement. Such risks and uncertainties include, but are not limited to: the impact of COVID-19; future demand for PepsiCo’s products; damage to PepsiCo’s reputation or brand image; issues or concerns with respect to product quality and safety; PepsiCo’s ability to compete effectively; PepsiCo’s ability to attract, develop and maintain a highly skilled and diverse workforce; water scarcity; changes in the retail landscape or in sales to any key customer; disruption of PepsiCo’s

supply chain; political or social conditions in the markets where PepsiCo’s products are made, manufactured, distributed or sold; PepsiCo’s ability to grow its business in developing and emerging markets; changes in economic conditions in the countries in which PepsiCo operates; future cyber incidents and other disruptions; failure to successfully complete or manage strategic transactions; PepsiCo’s reliance on third-party service providers; climate change or measures to address climate change; strikes or work stoppages; failure to realize benefits from PepsiCo’s productivity initiatives; deterioration in estimates and underlying assumptions regarding future performance that can result in an impairment charge; fluctuations or other changes in exchange rates; any downgrade or potential downgrade of PepsiCo’s credit ratings; imposition or proposed imposition of new or increased taxes aimed at PepsiCo’s products; imposition of limitations on the marketing or sale of PepsiCo’s products; changes in laws and regulations related to the use or disposal of plastics or other packaging of PepsiCo’s products; failure to comply with personal data protection and privacy laws; increase in income tax rates, changes in income tax laws or disagreements with tax authorities; failure to adequately protect PepsiCo’s intellectual property rights or infringement on intellectual property rights of others; failure to comply with applicable laws and regulations; and potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations; and other risks and uncertainties including those described in “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business Risks,” included in our 2020 Form 10-K and in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business Risks” of this Form 10-Q. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Our global operations continue to expose us to risks associated with the COVID-19 pandemic, which continues to result in challenging operating environments and has affected almost all of the more than 200 countries and territories in which our products are made, manufactured, distributed or sold. Travel bans and restrictions, quarantines, curfews, restrictions on public gatherings, shelter in place and safer-at-home orders, business shutdowns and closures continue in many of these markets. These measures have impacted and will continue to impact us, our customers (including foodservice customers), consumers, employees, bottlers, contract manufacturers, distributors, joint venture partners, suppliers and other third parties with whom we do business, which may result in changes in demand for our products, increases in operating costs (whether as a result of changes to our supply chain or increases in employee costs, including expanded benefits and frontline incentives, costs associated with the provision of personal protective equipment and increased sanitation, or otherwise), or adverse impacts to our supply chain through reduced availability of air or other commercial transport, port closures or border restrictions, any of which can impact our ability to make, manufacture, distribute and sell our products. In addition, measures that impact our ability to access our offices (several of which remain closed), plants, warehouses, distribution centers or other facilities, or that impact the ability of our customers (including our foodservice customers), consumers, bottlers, contract manufacturers, distributors, joint venture partners, suppliers and other third parties to do the same, may continue to impact the availability or productivity of our and their employees, many of whom are not able to perform their job functions remotely.

Public concern regarding the risk of contracting COVID-19 has impacted and may continue to impact demand from consumers, including due to consumers not leaving their homes or leaving their homes less often than they did prior to the start of the pandemic or otherwise shopping for and consuming food and beverage products in a different manner than they historically have or because some of our consumers have lower discretionary income due to unemployment or reduced or limited work as a result of measures taken in response to the pandemic. Even as governmental restrictions are relaxed and economies

gradually, partially, or fully reopen in certain of these jurisdictions and markets, the ongoing economic impacts and health concerns associated with the pandemic may continue to affect consumer behavior, spending levels and shopping and consumption preferences. Changes in consumer purchasing and consumption patterns may increase demand for our products in one quarter, resulting in decreased demand for our products in subsequent quarters, or in a lower-margin sales channel resulting in potentially reduced profit from sales of our products. We continue to see shifts in product and channel preferences as markets move through varying stages of restrictions and re-opening at different times, including changes in at-home consumption, in immediate consumption and away-from-home channels, such as convenience and gas and foodservice. In addition, we continue to see an increase in demand in the e-commerce and online-to-offline channels and any failure to capitalize on this demand could adversely affect our ability to maintain and grow sales or category share and erode our competitive position.

Any reduced demand for our products or change in consumer purchasing and consumption patterns, as well as continued economic uncertainty, can adversely affect our customers’ and business partners’ financial condition, which can result in bankruptcy filings and/or an inability to pay for our products, reduced or canceled orders of our products, continued or additional closing of restaurants, stores, entertainment or sports complexes, schools or other venues in which our products are sold, or reduced capacity at any of the foregoing, or our business partners’ inability to supply us with ingredients or other items necessary for us to make, manufacture, distribute or sell our products. Such adverse changes in our customers’ or business partners’ financial condition have also resulted and may continue to result in our recording additional charges for our inability to recover or collect any accounts receivable, owned or leased assets, including certain foodservice and vending and other equipment, or prepaid expenses. In addition, continued economic uncertainty associated with the COVID-19 pandemic has resulted in volatility in the global capital and credit markets which can impair our ability to access these markets on terms commercially acceptable to us, or at all.

While we have developed and implemented and continue to develop and implement health and safety protocols, business continuity plans and crisis management protocols in an effort to mitigate the negative impact of COVID-19 to our employees and our business, the extent of the impact of the pandemic on our business and financial results will continue to depend on numerous evolving factors that we are not able to accurately predict and which will vary by jurisdiction and market, including the duration and scope of the pandemic, the emergence of new variants of the virus, the likelihood of a resurgence of positive cases, the development and availability of effective treatments and vaccines, the speed at which such vaccines are administered, global economic conditions during and after the pandemic, governmental actions that have been taken, or may be taken in the future, in response to the pandemic and changes in consumer behavior in response to the pandemic, some of which may be more than just temporary.

In the 12 weeks ended June 12, 2021, substantially all of our financial results outside of North America reflect the months of March, April and May. In the 24 weeks ended June 12, 2021, substantially all of our financial results outside of North America reflect the months of January through May. In the 24 weeks ended June 12, 2021, our operations outside of the United States generated 42% of our consolidated net revenue, with Mexico, Canada, Russia, China, South Africa and the United Kingdom comprising approximately 22% of our consolidated net revenue. As a result, we are exposed to foreign exchange risk in the international markets in which our products are made, manufactured, distributed or sold. In the 12 and 24 weeks ended June 12, 2021, favorable foreign exchange contributed 3 percentage points and 2 percentage points, respectively, to net revenue growth, primarily due to appreciation in the euro, Canadian dollar and Mexican peso. Currency declines against the U.S. dollar which are not offset could adversely impact our future financial results.

In addition, volatile economic, political and social conditions and civil unrest in certain markets in which our products are made, manufactured, distributed or sold, including in Argentina, Brazil, China, Mexico, the Middle East, Russia and Turkey, and natural disasters, debt and credit issues and currency controls or fluctuations in certain of these international markets, continue to, and the threat or imposition of new or increased tariffs or sanctions or other impositions in or related to these international markets may, result in challenging operating environments. We continue to monitor the economic, operating and political environment in these markets closely and to identify actions to potentially mitigate any unfavorable impacts on our future results. We also continue to monitor the economic and political developments related to the United Kingdom’s withdrawal from the European Union (Brexit), including the effects of the post-Brexit trade deal entered into between the United Kingdom and the European Union in December 2020, as well as the economic, operating and political environment in Russia and the potential impact for our Europe segment and other businesses.

See Note 9 to our condensed consolidated financial statements in this Form 10-Q for the fair values of our financial instruments as of June 12, 2021 and December 26, 2020 and Note 9 to our consolidated financial statements in our 2020 Form 10-K for a discussion of these items. Cautionary statements included above and in “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business Risks” in our 2020 Form 10-K should be considered when evaluating our trends and future results.

Certain jurisdictions in which our products are made, manufactured, distributed or sold have either imposed, or are considering imposing, new or increased taxes or regulations on the manufacture, distribution or sale of our products or their packaging, ingredients or substances contained in, or attributes of, our products or their packaging, commodities used in the production of our products or their packaging or the recyclability or recoverability of our packaging. These taxes and regulations vary in scope and form. For example, some taxes apply to all beverages, including non-caloric beverages, while others apply only to beverages with a caloric sweetener (e.g., sugar). In addition, COVID-19 has resulted in increased regulatory focus on labeling in certain jurisdictions, including in Mexico which recently enacted product labeling requirements and limitations on the marketing of certain of our products as a result of ingredients or substances contained in such products. Further, some regulations apply to all products using certain types of packaging (e.g., plastic), while others are designed to increase the sustainability of packaging, encourage waste reduction and increased recycling rates or facilitate the waste management process or restrict the sale of products in certain packaging.

We sell a wide variety of beverages, foods and snacks in more than 200 countries and territories and the profile of the products we sell, the amount of revenue attributable to such products and the type of packaging used vary by jurisdiction. Because of this, we cannot predict the scope or form potential taxes, regulations or other limitations on our products or their packaging may take, and therefore cannot predict the impact of such taxes, regulations or limitations on our financial results. In addition, taxes, regulations and limitations may impact us and our competitors differently. We continue to monitor existing and proposed taxes and regulations in the jurisdictions in which our products are made, manufactured, distributed and sold and to consider actions we may take to potentially mitigate the unfavorable impact, if any, of such taxes, regulations or limitations, including advocating alternative measures with respect to the imposition, form and scope of any such taxes, regulations or limitations.

Our industry continues to be affected by disruption of the retail landscape, including the rapid growth in sales through e-commerce websites and mobile commerce applications, including through subscription services, the integration of physical and digital operations among retailers and the international expansion of hard discounters. We have seen and expect to continue to see a further shift to e-commerce, online-to-offline and other online purchasing by consumers, including as a result of the COVID-19 pandemic. We continue to monitor changes in the retail landscape and seek to identify actions we may take to build our global e-commerce and digital capabilities, such as expanding our direct-to-consumer business, and distribute our products effectively through all existing and emerging channels of trade and potentially mitigate any unfavorable impacts on our future results.

Physical or unit volume is one of the key metrics management uses internally to make operating and strategic decisions, including the preparation of our annual operating plan and the evaluation of our business performance. We believe volume provides additional information to facilitate the comparison of our historical operating performance and underlying trends and provides additional transparency on how we evaluate our business because it measures demand for our products at the consumer level. Refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Financial Results – Volume” included in our 2020 Form 10-K for further information on volume.

(b)Excludes the impact of acquisitions and divestitures, including the impact of an extra month of volume in the 12 and 24 weeks ended June 12, 2021 as we aligned Pioneer Foods’ reporting calendar with that of our AMESA division. In certain instances, the impact of organic volume growth on net revenue growth differs from the unit volume growth disclosed in the following divisional discussions due to product mix, nonconsolidated joint venture volume, and, for our beverage businesses, temporary timing differences between bottler case sales and concentrate shipments and equivalents (CSE). Our net revenue excludes nonconsolidated joint venture volume, and, for our franchise-owned beverage businesses, is based on CSE.


	12 Weeks Ended 6/12/2021
			Items Affecting Comparability(a)
	Reported, GAAP Measure(b)		Mark-to-market net impact		Restructuring and impairment charges		Merger and integration charges		Core, Non-GAAP Measure(b)
FLNA	$	1,382	$	—	$	3	$	—	$	1,385
QFNA	128		—		—		—		128
PBNA	809		—		1		1		811
LatAm	356		—		6		—		362
Europe	405		—		15		—		420
AMESA	256		—		3		6		265
APAC	192		—		1		3		196
Corporate unallocated expenses	(399)		(20)		6		15		(398)
Total	$	3,129	$	(20)	$	35	$	25	$	3,169


	12 Weeks Ended 6/13/2020
			Items Affecting Comparability(a)
	Reported, GAAP Measure(b)		Mark-to-market net impact		Restructuring and impairment charges		Inventory fair value adjustments and merger and integration charges		Core, Non-GAAP Measure(b)
FLNA	$	1,278	$	—	$	2	$	2	$	1,282
QFNA	196		—		—		—		196
PBNA	397		—		—		43		440
LatAm	219		—		4		—		223
Europe	351		—		8		—		359
AMESA	59		—		5		157		221
APAC	189		—		3		—		192
Corporate unallocated expenses	(370)		(45)		2		16		(397)
Total	$	2,319	$	(45)	$	24	$	218	$	2,516


	24 Weeks Ended 6/12/2021
			Items Affecting Comparability(a)
	Reported, GAAP Measure(b)		Mark-to-market net impact		Restructuring and impairment charges		Merger and integration charges		Core, Non-GAAP Measure(b)
FLNA	$	2,622	$	—	$	18	$	2	$	2,642
QFNA	278		—		—		—		278
PBNA	1,175		—		5		2		1,182
LatAm	574		—		8		—		582
Europe	536		—		26		—		562
AMESA	394		—		4		7		405
APAC	400		—		1		3		404
Corporate unallocated expenses	(538)		(95)		10		1		(622)
Total	$	5,441	$	(95)	$	72	$	15	$	5,433


	24 Weeks Ended 6/13/2020
			Items Affecting Comparability(a)
	Reported, GAAP Measure(b)		Mark-to-market net impact		Restructuring and impairment charges		Inventory fair value adjustments and merger and integration charges		Core, Non-GAAP Measure(b)
FLNA	$	2,480	$	—	$	7	$	25	$	2,512
QFNA	346		—		1		—		347
PBNA	694		—		3		43		740
LatAm	450		—		9		—		459
Europe	497		—		16		—		513
AMESA	193		—		7		159		359
APAC	331		—		3		—		334
Corporate unallocated expenses	(748)		97		10		16		(625)
Total	$	4,243	$	97	$	56	$	243	$	4,639


	12 Weeks Ended 6/12/2021
			Impact of Items Affecting Comparability(a)					Impact of
	Reported % Change, GAAP Measure		Mark-to-market net impact	Restructuring and impairment charges	Inventory fair value adjustments and merger and integration charges	Core % Change, Non-GAAP Measure(b)		Foreign exchange translation	Core Constant Currency % Change, Non-GAAP Measure(b)
FLNA	8	%	—	—	—	8	%	(1)	7	%
QFNA	(34)	%	—	—	—	(34)	%	—	(35)	%
PBNA	104	%	—	0.5	(20)	84	%	(2)	83	%
LatAm	63	%	—	(1)	—	62	%	(16)	47	%
Europe	15	%	—	1	—	17	%	(6)	11	%
AMESA	325	%	—	(2)	(303)	20	%	(3)	17	%
APAC	2	%	—	(1)	1	2	%	(5)	(3)	%
Corporate unallocated expenses	7	%	(7)	(1)	—	—	%	—	—	%
Total	35	%	1	1	(11)	26	%	(3.5)	22	%


	24 Weeks Ended 6/12/2021
			Impact of Items Affecting Comparability(a)					Impact of
	Reported % Change, GAAP Measure		Mark-to-market net impact	Restructuring and impairment charges	Inventory fair value adjustments and merger and integration charges	Core % Change, Non-GAAP Measure(b)		Foreign exchange translation	Core Constant Currency % Change, Non-GAAP Measure(b)
FLNA	6	%	—	0.5	(1)	5	%	(0.5)	5	%
QFNA	(20)	%	—	—	—	(20)	%	—	(20)	%
PBNA	69	%	—	0.5	(10)	60	%	(1)	58	%
LatAm	28	%	—	(1)	—	27	%	(4)	23	%
Europe	8	%	—	2	—	9	%	(3)	6	%
AMESA	103	%	—	(2)	(89)	13	%	(2)	11	%
APAC	21	%	—	1	(1)	21	%	(6)	15	%
Corporate unallocated expenses	(28)	%	26	—	2	(0.5)	%	—	(0.5)	%
Total	28	%	(5)	—	(6)	17	%	(2)	15	%

Operating profit declined 34%, primarily reflecting the net revenue performance and certain operating cost increases, partially offset by productivity savings and lower advertising and marketing expenses. Favorable settlements of promotional spending accruals compared to the prior year and an asset write-off in the prior year each positively impacted operating profit performance by 4 percentage points. Additionally, lower charges taken as a result of the COVID-19 pandemic positively impacted operating profit performance by 3 percentage points.

Net revenue increased 24%, primarily driven by an increase in organic volume and effective net pricing. Unit volume increased 16%, driven by a 12% increase in carbonated soft drink (CSD) volume and a 20% increase in non-carbonated beverage (NCB) volume. The NCB volume increase primarily reflected double-digit increases in our overall water portfolio, Gatorade sports drinks, our energy portfolio, Lipton ready-to-drink teas and our juice and juice drinks portfolio.

Operating profit increased 104%, reflecting the net revenue growth, a 33-percentage-point impact of lower charges taken as a result of the COVID-19 pandemic and productivity savings. These impacts were partially offset by certain operating cost increases, including incremental transportation costs, higher advertising and marketing expenses, and a 12-percentage-point impact of higher commodity costs. Higher prior-year merger and integration charges related to our Rockstar acquisition contributed 20 percentage points to operating profit growth. Additionally, favorable settlements of promotional spending accruals compared to the prior year contributed 8 percentage points to operating profit growth.

Net revenue increased 15%, primarily driven by an increase in organic volume, effective net pricing and a 3-percentage-point impact of acquisitions. Unit volume increased 7%, driven by a 5% increase in CSD volume and a 9% increase in NCB volume. The NCB volume increase primarily reflected a high-single-digit increase in Gatorade sports drinks, a double-digit increase in our energy portfolio, primarily due to acquisitions, a mid-single-digit increase in our overall water portfolio and a high-single-digit increase in Lipton ready-to-drink teas.

Operating profit increased 69%, reflecting the net revenue growth, a 33-percentage-point impact of lower charges taken as a result of the COVID-19 pandemic and productivity savings. These impacts were partially offset by certain operating cost increases, including incremental transportation costs, higher advertising and marketing expenses, and an 8-percentage-point impact of higher commodity costs. Higher prior-year merger and integration charges related to our Rockstar acquisition contributed 10 percentage points to operating profit growth. Additionally, favorable settlements of promotional spending accruals compared to the prior year and acquisitions each contributed 7 percentage points to operating profit growth.

Operating profit increased 63%, primarily reflecting the net revenue growth, productivity savings and a 16-percentage-point impact of favorable foreign exchange. These impacts were partially offset by a 33-percentage-point impact of higher commodity costs, certain operating cost increases and higher advertising and marketing expenses. Additionally, lower charges taken as a result of the COVID-19 pandemic contributed 7 percentage points to operating profit growth.

Operating profit increased 15%, primarily reflecting the net revenue growth and productivity savings, partially offset by certain operating cost increases, a 21-percentage-point impact of higher commodity costs, a 10-percentage-point impact of a gain on an asset sale in the prior year, and higher advertising and marketing expenses. Additionally, lower charges taken as a result of the COVID-19 pandemic and favorable foreign exchange contributed 10 percentage points and 6 percentage points, respectively, to operating profit growth.

Operating profit increased 8%, primarily reflecting the net revenue growth and productivity savings, partially offset by certain operating cost increases, a 21-percentage-point impact of higher commodity costs, largely due to transaction-related foreign exchange, and a 7-percentage-point impact of a gain on an asset sale in the prior year. Additionally, lower charges taken as a result of the COVID-19 pandemic and favorable foreign exchange contributed 7 percentage points and 3 percentage points, respectively, to operating profit growth.

Operating profit increased 325%, primarily reflecting a 303-percentage-point impact of the prior-year merger and integration charges associated with our Pioneer Foods acquisition, the net revenue growth and productivity savings. These impacts were partially offset by certain operating cost increases, higher advertising and marketing expenses and a 10-percentage-point impact of higher commodity costs. Additionally, lower charges taken as a result of the COVID-19 pandemic and our Pioneer Foods acquisition contributed 6 percentage points and 3 percentage points, respectively, to operating profit growth.

Operating profit increased 103%, primarily reflecting an 89-percentage-point impact of the prior-year merger and integration charges associated with our Pioneer Foods acquisition, the net revenue growth and productivity savings. These impacts were partially offset by certain operating cost increases, a 7-percentage-point impact of higher commodity costs and higher advertising and marketing expenses. Additionally, lower charges taken as a result of the COVID-19 pandemic and our Pioneer Foods acquisition each contributed 4 percentage points to operating profit growth.

Snacks unit volume grew 14%, primarily reflecting a 26-percentage-point impact of our Be & Cheery acquisition, which included the impact of an extra month of unit volume as we aligned Be & Cheery’s reporting calendar with that of our APAC division, double-digit growth in Thailand and low-single-digit growth in Indonesia, partially offset by a double-digit decline in China (excluding our Be & Cheery acquisition), a high-single-digit decline in Taiwan and a mid-single-digit decline in Australia.

Operating profit increased 21%, primarily reflecting the organic volume growth, productivity savings and a 4-percentage-point contribution from our Be & Cheery acquisition, partially offset by higher advertising and marketing expenses and certain operating cost increases. Additionally, impairment charges associated with an equity method investment reduced operating profit growth by 6 percentage points. Favorable foreign exchange contributed 6 percentage points to operating profit growth.


	12 Weeks Ended									24 Weeks Ended
	6/12/2021			6/13/2020			Change			6/12/2021			6/13/2020			Change
Other pension and retiree medical benefits income	$	126		$	84		$	42		$	246		$	161		$	85
Net interest expense and other	$	(241)		$	(235)		$	(6)		$	(499)		$	(525)		$	26
Tax rate	21.3		%	23.5		%				21.1		%	22.4		%
Net income attributable to PepsiCo (a)	$	2,358		$	1,646		43		%	$	4,072		$	2,984		36		%
Net income attributable to PepsiCo per common share – diluted (a)	$	1.70		$	1.18		44		%	$	2.94		$	2.14		37		%

Certain financial measures contained in this Form 10-Q adjust for the impact of specified items and are not in accordance with U.S. GAAP. We use non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance and as a factor in determining compensation for certain employees. We believe presenting non-GAAP financial measures in this Form 10-Q provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results and provides additional transparency on how we evaluate our business. We also believe presenting these measures in this Form 10-Q allows investors to view our performance using the same measures that we use in evaluating our financial and business performance and trends.

We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Examples of items for which we may make adjustments include: amounts related to mark-to-market gains or losses (non-cash); charges related to restructuring plans; costs associated with mergers, acquisitions, divestitures and other structural changes; pension and retiree medical related items; charges or adjustments related to the enactment of new laws, rules or regulations, such as significant tax law changes; amounts related to the resolution of tax positions; tax benefits related to reorganizations of our operations; debt redemptions, cash tender or exchange offers; asset impairments (non-cash); and remeasurements of net monetary assets. See below and “Items Affecting Comparability” for a description of adjustments to our U.S. GAAP financial measures in this Form 10-Q.

related to our 2019 Productivity Plan and inventory fair value adjustments and merger and integration charges associated with our acquisitions (see “Items Affecting Comparability” for a detailed description of each of these items). We also evaluate performance on operating profit and net income attributable to PepsiCo per common share – diluted, each adjusted for items affecting comparability on a constant currency basis, which measure our financial results assuming constant foreign currency exchange rates used for translation based on the rates in effect for the comparable prior-year period. In order to compute our constant currency results, we multiply or divide, as appropriate, our current-year U.S. dollar results by the current-year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. We believe these measures provide useful information in evaluating the results of our business because they exclude items that we believe are not indicative of our ongoing performance.

We define organic revenue growth as a measure that adjusts for the impacts of foreign exchange translation, acquisitions and divestitures, and where applicable, the impact of the 53rd reporting week. Adjusting for acquisitions and divestitures reflects all mergers and acquisitions activity, including the impact of an extra month of net revenue in the 12 and 24 weeks ended June 12, 2021 as we aligned Pioneer Foods’ reporting calendar with that of our AMESA division, divestitures and other structural changes, including changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees. We believe organic revenue growth provides useful information in evaluating the results of our business because it excludes items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior year.

We define free cash flow as net cash provided by operating activities less capital spending, plus sales of property, plant and equipment. Since net capital spending is essential to our product innovation initiatives and maintaining our operational capabilities, we believe that it is a recurring and necessary use of cash. As such, we believe investors should also consider net capital spending when evaluating our cash from operating activities. Free cash flow is used by us primarily for acquisitions and financing activities, including debt repayments, dividends and share repurchases. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure.


	12 Weeks Ended 6/12/2021
	Cost of sales		Gross profit		Selling, general and administrative expenses		Operating profit		Other pension and retiree medical benefits income		Provision for income taxes(a)		Net income attributable to PepsiCo
Reported, GAAP Measure	$	8,880	$	10,337	$	7,208	$	3,129	$	126	$	642	$	2,358
Items Affecting Comparability
Mark-to-market net impact	—		—		20		(20)		—		(4)		(16)
Restructuring and impairment charges	(2)		2		(33)		35		(1)		5		29
Merger and integration charges	(1)		1		(24)		25		—		4		21



Core, Non-GAAP Measure	$	8,877	$	10,340	$	7,171	$	3,169	$	125	$	647	$	2,392


	12 Weeks Ended 6/13/2020
	Cost of sales		Gross profit		Selling, general and administrative expenses		Operating profit		Other pension and retiree medical benefits income		Provision for income taxes(a)		Net income attributable to PepsiCo
Reported, GAAP Measure	$	7,088	$	8,857	$	6,538	$	2,319	$	84	$	510	$	1,646
Items Affecting Comparability
Mark-to-market net impact	14		(14)		31		(45)		—		(11)		(34)
Restructuring and impairment charges	(1)		1		(23)		24		1		4		21
Inventory fair value adjustments and merger and integration charges	(19)		19		(199)		218		—		13		205
Core, Non-GAAP Measure	$	7,082	$	8,863	$	6,347	$	2,516	$	85	$	516	$	1,838


	24 Weeks Ended 6/12/2021
	Cost of sales		Gross profit		Selling, general and administrative expenses		Operating profit		Other pension and retiree medical benefits income		Provision for income taxes(a)		Net income attributable to PepsiCo
Reported, GAAP Measure	$	15,551	$	18,486	$	13,045	$	5,441	$	246	$	1,093	$	4,072
Items Affecting Comparability
Mark-to-market net impact	36		(36)		59		(95)		—		(21)		(74)
Restructuring and impairment charges	(4)		4		(68)		72		5		13		64
Merger and integration charges	(1)		1		(14)		15		—		1		14


Core, Non-GAAP Measure	$	15,582	$	18,455	$	13,022	$	5,433	$	251	$	1,086	$	4,076


	24 Weeks Ended 6/13/2020
	Cost of sales		Gross profit		Selling, general and administrative expenses		Operating profit		Other pension and retiree medical benefits income		Provision for income taxes(a)		Net income attributable to PepsiCo
Reported, GAAP Measure	$	13,215	$	16,611	$	12,368	$	4,243	$	161	$	870	$	2,984
Items Affecting Comparability
Mark-to-market net impact	(24)		24		(73)		97		—		24		73
Restructuring and impairment charges	(3)		3		(53)		56		7		10		53
Inventory fair value adjustments and merger and integration charges	(19)		19		(224)		243		—		16		227
Core, Non-GAAP Measure	$	13,169	$	16,657	$	12,018	$	4,639	$	168	$	920	$	3,337


	12 Weeks Ended								24 Weeks Ended
	6/12/2021			6/13/2020			Change		6/12/2021			6/13/2020		Change
Net income attributable to PepsiCo per common share – diluted, GAAP measure	$	1.70		$	1.18		44	%	$	2.94		$	2.14	37	%
Mark-to-market net impact	(0.01)			(0.02)					(0.05)			0.05
Restructuring and impairment charges	0.02			0.02					0.05			0.04
Inventory fair value adjustments and merger and integration charges	0.02			0.15					0.01			0.16


Core net income attributable to PepsiCo per common share – diluted, non-GAAP measure	$	1.72	(a)	$	1.32	(a)	31	%	$	2.94	(a)	$	2.39	23	%
Impact of foreign exchange translation							(4)							(2)
Growth in core net income attributable to PepsiCo per common share – diluted, on a constant currency basis, non-GAAP measure							27	%						21	%

We centrally manage commodity derivatives on behalf of our divisions. These commodity derivatives include agricultural products, energy and metals. Commodity derivatives that do not qualify for hedge accounting treatment are marked to market each period with the resulting gains and losses recorded in corporate unallocated expenses as either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. These gains and losses are subsequently reflected in division results when the divisions recognize the cost of the underlying commodity in operating profit. Therefore, the divisions realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in corporate unallocated expenses.

To build on the successful implementation of the 2019 Productivity Plan to date, we expanded and extended the program through the end of 2026 to take advantage of additional opportunities within the initiatives of the 2019 Productivity Plan. We now expect to incur pre-tax charges of approximately $3.15 billion, including cash expenditures of approximately $2.4 billion, as compared to our previous estimate of pre-tax charges of approximately $2.5 billion, which included cash expenditures of approximately $1.6 billion. Plan to date through June 12, 2021, we have incurred pre-tax charges of $874 million, including cash expenditures of $622 million. For the remainder of 2021, we expect to incur pre-tax charges of approximately $400 million, including cash expenditures of approximately $300 million, with the balance to be reflected in our 2022 through 2026 financial results. These charges will be funded primarily through cash from operations. We expect to incur the majority of the remaining pre-tax charges and cash expenditures in our 2022 and 2023 results.

In the 12 and 24 weeks ended June 13, 2020, we recorded inventory fair value adjustments and merger and integration charges related to our acquisitions of BFY Brands, Rockstar and Pioneer Foods. These charges primarily relate to fair value adjustments to the acquired inventory included in the acquisition-date balance sheets, liabilities to support socioeconomic programs in South Africa, closing costs, employee-related costs, changes in the fair value of contingent consideration and contract termination costs.

We believe that our cash generating capability and financial condition, together with our revolving credit facilities, working capital lines and other available methods of debt financing, such as commercial paper borrowings and long-term debt financing, will be adequate to meet our operating, investing and financing needs, including with respect to our net capital spending plans. Our primary sources of cash available to fund cash outflows, such as our anticipated dividend payments, debt repayments, payments for acquisitions, including the contingent consideration related to Rockstar, and the transition tax liability under the TCJ Act, include cash from operations, proceeds obtained from issuances of commercial paper and long-term debt, and cash and cash equivalents. See “Our Business Risks” and Note 8 to our condensed consolidated financial statements included in this Form 10-Q and “Item 1A. Risk Factors,” “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business Risks” and Note 8 to our consolidated financial statements included in our 2020 Form 10-K for further information.

Our sources and uses of cash were not materially adversely impacted by COVID-19 in the 24 weeks ended June 12, 2021 and, to date, we have not identified any material liquidity deficiencies as a result of the COVID-19 pandemic. Based on the information currently available to us, we do not expect the impact of the COVID-19 pandemic to have a material impact on our liquidity. We will continue to monitor and assess the impact the COVID-19 pandemic may have on our business and financial results. See “Our Business Risks” and Note 1 to our condensed consolidated financial statements in this Form 10-Q and “Item 1A. Risk Factors,” “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business Risks” and Note 1 to our consolidated financial statements included in our 2020 Form 10-K for further information related to the impact of the COVID-19 pandemic on our business and financial results.

As part of our evolving market practices, we work with our suppliers to optimize our terms and conditions, which include the extension of payment terms. Our current payment terms with a majority of our suppliers generally range from 60 to 90 days, which we deem to be commercially reasonable. We will continue to monitor economic conditions and market practice working with our suppliers to adjust as necessary. We also maintain voluntary supply chain finance agreements with several participating global financial institutions. Under these agreements, our suppliers, at their sole discretion, may elect to sell their accounts receivable with PepsiCo to these participating global financial institutions. Supplier participation in these financing arrangements is voluntary. Our suppliers negotiate their financing agreements directly with the respective global financial institutions and we are not a party to these agreements. These financing arrangements allow participating suppliers to leverage PepsiCo’s creditworthiness in establishing credit spreads and associated costs, which generally provides our suppliers with more favorable terms than they would be able to secure on their own. Neither PepsiCo nor any of its subsidiaries provide any guarantees to any third party in connection with these financing arrangements. We have no economic interest in our suppliers’ decision to participate in these agreements. Our obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted. All outstanding amounts related to suppliers participating in such financing arrangements are recorded within accounts payable and other current liabilities in our consolidated balance sheet. We have been informed by the participating financial institutions that as of June 12, 2021 and December 26, 2020, $1.2 billion of our accounts payable to suppliers who participate in these financing arrangements are outstanding. These supply chain finance arrangements did not have a material impact on our liquidity or capital resources in the periods presented and we do not expect such arrangements to have a material impact on our liquidity or capital resources for the foreseeable future.

During the 24 weeks ended June 12, 2021, net cash provided by operating activities was $2.3 billion, compared to net cash provided by operating activities of $1.5 billion in the prior-year period. The increase in operating cash flow primarily reflects favorable operating profit performance and working capital comparisons, partially offset by higher net cash tax payments and higher pre-tax pension and retiree medical plan contributions in the current year.

We annually review our capital structure with our Board of Directors, including our dividend policy and share repurchase activity. On February 13, 2018, we announced the 2018 share repurchase program providing for the repurchase of up to $15.0 billion of PepsiCo common stock which commenced on July 1, 2018 and expired on June 30, 2021. In addition, on February 11, 2021, we announced a 5% increase in our annualized dividend to $4.30 per share from $4.09 per share, effective with the dividend paid in June

We use free cash flow primarily for acquisitions and financing activities, including debt repayments, dividends and share repurchases. We expect to continue to return free cash flow to our shareholders primarily through dividends while maintaining Tier 1 commercial paper access, which we believe will facilitate appropriate financial flexibility and ready access to global capital and credit markets at favorable interest rates. See “Our Business Risks” included in this Form 10-Q and “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business Risks,” included in our 2020 Form 10-K, for certain factors that may impact our credit ratings or our operating cash flows.

Any downgrade of our credit ratings by a credit rating agency, especially any downgrade to below investment grade, whether or not as a result of our actions or factors which are beyond our control, could increase our future borrowing costs and impair our ability to access capital and credit markets on terms commercially acceptable to us, or at all. In addition, any downgrade of our current short-term credit ratings could impair our ability to access the commercial paper market with the same flexibility that we have experienced historically, and therefore require us to rely more heavily on more expensive types of debt financing. See Note 8 to our condensed consolidated financial statements and “Our Business Risks” included in this Form 10-Q, as well as “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business Risks” included in our 2020 Form 10-K for further information.

We have reviewed the Condensed Consolidated Balance Sheet of PepsiCo, Inc. and subsidiaries (the Company) as of June 12, 2021, the related Condensed Consolidated Statements of Income, Comprehensive Income and Equity for the twelve and twenty-four weeks ended June 12, 2021 and June 13, 2020, the related Condensed Consolidated Statement of Cash Flows for the twenty-four weeks ended June 12, 2021 and June 13, 2020, and the related notes (collectively, the consolidated interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Consolidated Balance Sheet of the Company as of December 26, 2020, and the related Consolidated Statements of Income, Comprehensive Income, Cash Flows and Equity for the year then ended (not presented herein); and in our report dated February 10, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying Condensed Consolidated Balance Sheet as of December 26, 2020, is fairly stated, in all material respects, in relation to the Consolidated Balance Sheet from which it has been derived.

We conducted our reviews in accordance with the standards of the PCAOB. A review of consolidated interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

As of the end of the period covered by this report, we carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this report our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

During the 12 weeks ended June 12, 2021, we continued migrating certain of our financial processing systems to an enterprise-wide systems solution. These systems implementations are part of our ongoing global business transformation initiative and we plan to continue implementing such systems throughout other parts of our businesses. In addition, in connection with our 2019 Productivity Plan, we continue to migrate to shared business service models across our operations to further simplify, harmonize and automate processes. In connection with these implementations and resulting business process changes, we continue to enhance the design and documentation of our internal control over financial reporting processes to maintain effective controls over our financial reporting. These transitions have not materially affected, and we do not expect them to materially affect, our internal control over financial reporting.

We and our subsidiaries are party to a variety of litigation, claims, legal or regulatory proceedings, inquiries and investigations. While the results of such litigation, claims, legal or regulatory proceedings, inquiries and investigations cannot be predicted with certainty, management believes that the final outcome of the foregoing will not have a material adverse effect on our financial condition, results of operations or cash flows. See also “Item 1. Business – Regulatory Matters” and “Item 1A. Risk Factors” in our 2020 Form 10-K.



North Carolina						13-1584302
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


		Page No.
Part I Financial Information
Item 1.	Condensed Consolidated Financial Statements	3
	Condensed Consolidated Statement of Income – 12 and 24 Weeks Ended June 12, 2021 and June 13, 2020	3
	Condensed Consolidated Statement of Comprehensive Income – 12 and 24 Weeks Ended June 12, 2021 and June 13, 2020	4
	Condensed Consolidated Statement of Cash Flows – 24 Weeks Ended June 12, 2021 and June 13, 2020	5
	Condensed Consolidated Balance Sheet – June 12, 2021 and December 26, 2020	7
	Condensed Consolidated Statement of Equity – 12 and 24 Weeks Ended June 12, 2021 and June 13, 2020	8
	Notes to the Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Report of Independent Registered Public Accounting Firm		50
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51
Item 4.	Controls and Procedures	51
Part II Other Information
Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 6.	Exhibits	52


	12 Weeks Ended				24 Weeks Ended
	6/12/2021		6/13/2020		6/12/2021		6/13/2020
FLNA	$	4,552	$	4,273	$	8,788	$	8,347
QFNA	575		664		1,221		1,298
PBNA	6,156		4,970		11,230		9,808
LatAm	1,967		1,567		3,209		2,877
Europe	3,286		2,725		5,081		4,564
AMESA (a)	1,602		983		2,485		1,614
APAC (b)	1,079		763		2,023		1,318
Total	$	19,217	$	15,945	$	34,037	$	29,826


	6/12/2021						12/26/2020
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Acquired franchise rights	$	989	$	(183)	$	806	$	976	$	(173)	$	803
Customer relationships	656		(220)		436		642		(204)		438
Brands	1,354		(1,116)		238		1,348		(1,099)		249
Other identifiable intangibles	475		(269)		206		474		(261)		213
Total	$	3,474	$	(1,788)	$	1,686	$	3,440	$	(1,737)	$	1,703


☒			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


(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)


	12 Weeks Ended 6/12/2021
	Allowances for Expected Credit Losses(a)		Upfront Payments to Customers(b)		Inventory Write-Downs and Product Returns		Employee Compensation Expense(c)		Employee Protection Costs(d)		Other(e)		Total
FLNA	$	(4)	$	—	$	—	$	11	$	7	$	—	$	14
QFNA	—		—		—		1		—		—		1
PBNA	(9)		(6)		—		7		4		(7)		(11)
LatAm	—		—		1		12		3		1		17
Europe	—		—		—		5		3		1		9
AMESA	—		—		—		—		1		2		3
APAC	—		—		—		—		1		1		2

Total	$	(13)	$	(6)	$	1	$	36	$	19	$	(2)	$	35


	12 Weeks Ended				24 Weeks Ended				Plan to Date
	6/12/2021		6/13/2020		6/12/2021		6/13/2020		through 6/12/2021
FLNA	$	3	$	2	$	18	$	7	$	154
QFNA	—		—		—		1		12
PBNA	1		—		5		3		143
LatAm	6		4		8		9		110
Europe	15		8		26		16		179
AMESA	3		5		4		7		59
APAC	1		3		1		3		55
Corporate	6		2		10		10		100
	35		24		72		56		812
Other pension and retiree medical benefits (income)/expense (a)	(1)		1		5		7		62
Total	$	34	$	25	$	77	$	63	$	874


	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
Liability as of December 26, 2020	$	122	$	—	$	5	$	127
2021 restructuring charges	49		1		27		77
Cash payments	(75)		—		(29)		(104)
Non-cash charges and translation	(6)		(1)		—		(7)
Liability as of June 12, 2021	$	90	$	—	$	3	$	93


	Balance 12/26/2020		Acquisitions		Translation and Other		Balance 6/12/2021

FLNA (a)
Goodwill	$	465	$	(8)	$	9	$	466
Brands	340		—		1		341
Total	805		(8)		10		807
QFNA
Goodwill	189		—		—		189
Total	189		—		—		189
PBNA (b)
Goodwill	12,189		(2)		30		12,217
Reacquired franchise rights	7,107		—		51		7,158
Acquired franchise rights	1,536		—		11		1,547
Brands (c)	3,122		—		(324)		2,798
Total	23,954		(2)		(232)		23,720
LatAm
Goodwill	458		—		(7)		451
Brands	108		—		(3)		105
Total	566		—		(10)		556
Europe
Goodwill	3,806		—		35		3,841
Reacquired franchise rights	496		—		2		498
Acquired franchise rights	172		—		(2)		170
Brands (c)	4,072		—		333		4,405
Total	8,546		—		368		8,914
AMESA (d)
Goodwill	1,096		(2)		65		1,159
Brands	214		—		22		236
Total	1,310		(2)		87		1,395
APAC (e)
Goodwill	554		3		13		570
Brands (c)	445		—		35		480
Total	999		3		48		1,050

Total goodwill	18,757		(9)		145		18,893
Total reacquired franchise rights	7,603		—		53		7,656
Total acquired franchise rights	1,708		—		9		1,717
Total brands	8,301		—		64		8,365
Total	$	36,369	$	(9)	$	271	$	36,631


	12 Weeks Ended
	Pension								Retiree Medical
	U.S.				International
	6/12/2021		6/13/2020		6/12/2021		6/13/2020		6/12/2021		6/13/2020


Service cost	$	120	$	100	$	25	$	20	$	7	$	5
Other pension and retiree medical benefits income:
Interest cost	74		100		19		21		4		5
Expected return on plan assets	(224)		(215)		(57)		(49)		(3)		(4)
Amortization of prior service (credits)/cost	(7)		2		(1)		—		(3)		(2)
Amortization of net losses/(gains)	52		46		19		16		(3)		(5)
Curtailment losses	—		—		5		—		—		—
Special termination benefits	(1)		1		—		—		—		—
Total other pension and retiree medical benefits income	(106)		(66)		(15)		(12)		(5)		(6)
Total	$	14	$	34	$	10	$	8	$	2	$	(1)


	Notional Amounts(a)
	6/12/2021		12/26/2020
Commodity	$	1.2	$	1.1
Foreign exchange	$	2.3	$	1.9
Interest rate	$	2.3	$	3.0
Net investment (b)	$	2.7	$	2.7


		6/12/2021				12/26/2020
	Fair Value Hierarchy Levels(a)	Assets(a)		Liabilities(a)		Assets(a)		Liabilities(a)

Index funds (b)	1	$	328	$	—	$	231	$	—
Prepaid forward contracts (c)	2	$	18	$	—	$	18	$	—
Deferred compensation (d)	2	$	—	$	500	$	—	$	477
Contingent consideration (e)	3	$	—	$	853	$	—	$	861
Derivatives designated as fair value hedging instruments:
Interest rate (f)	2	$	1	$	—	$	2	$	—
Derivatives designated as cash flow hedging instruments:
Foreign exchange (g)	2	$	4	$	62	$	9	$	71
Interest rate (g)	2	49		191		13		307
Commodity (h)	2	69		1		32		—
		$	122	$	254	$	54	$	378
Derivatives not designated as hedging instruments:
Foreign exchange (g)	2	$	5	$	14	$	4	$	8
Commodity (h)	2	45		15		19		7
		$	50	$	29	$	23	$	15
Total derivatives at fair value (i)		$	173	$	283	$	79	$	393
Total		$	519	$	1,636	$	328	$	1,731


(Address of principal executive offices and Zip Code)


Registrant's telephone number, including area code


	24 Weeks Ended
	6/12/2021			6/13/2020
	Granted(a)	Weighted-Average Grant Price		Granted(a)	Weighted-Average Grant Price
Stock options	1.8	$	131.25	1.6	$	131.25
RSUs and PSUs	2.6	$	131.27	2.5	$	131.20


	12 Weeks Ended
	Fair Value/Non- designated Hedges				Cash Flow and Net Investment Hedges
	Losses/(Gains) Recognized in Income Statement(a)				Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss				Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b)
	6/12/2021		6/13/2020		6/12/2021		6/13/2020		6/12/2021		6/13/2020
Foreign exchange	$	6	$	10	$	27	$	(27)	$	27	$	(19)
Interest rate	—		(1)		(46)		(130)		(47)		(121)
Commodity	(70)		(9)		(156)		13		(33)		13
Net investment	—		—		55		125		—		—
Total	$	(64)	$	—	$	(120)	$	(19)	$	(53)	$	(127)


	Currency Translation Adjustment		Cash Flow Hedges		Pension and Retiree Medical		Other		Accumulated Other Comprehensive Loss Attributable to PepsiCo
Balance as of December 26, 2020 (a)	$	(11,940)	$	4	$	(3,520)	$	(20)	$	(15,476)
Other comprehensive income/(loss) before reclassifications (b)	128		97		(20)		—		205
Amounts reclassified from accumulated other comprehensive loss	18		(1)		52		—		69
Net other comprehensive income	146		96		32		—		274
Tax amounts	(15)		(24)		(5)		—		(44)
Balance as of March 20, 2021 (a)	$	(11,809)	$	76	$	(3,493)	$	(20)	$	(15,246)
Other comprehensive income/(loss) before reclassifications (c)	255		175		(28)		2		404
Amounts reclassified from accumulated other comprehensive loss	—		(53)		57		—		4
Net other comprehensive income	255		122		29		2		408
Tax amounts	13		(29)		(5)		—		(21)
Balance as of June 12, 2021 (a)	$	(11,541)	$	169	$	(3,469)	$	(18)	$	(14,859)


	Pioneer Foods		Rockstar		Be & Cheery
Acquisition date	March 23, 2020		April 24, 2020		June 1, 2020
Inventories	$	229	$	52	$	45
Property, plant and equipment	379		8		60
Amortizable intangible assets	52		—		98
Nonamortizable intangible assets	183		2,400		309
Other assets and liabilities	(53)		(9)		(24)
Net deferred income taxes	(117)		—		(99)
Noncontrolling interest	(5)		—		—
Total identifiable net assets	668		2,451		389
Goodwill	558		2,278		309
Total purchase price	$	1,226	$	4,729	$	698


EXHIBIT
Exhibit 3.1			Amended and Restated Articles of Incorporation of PepsiCo, Inc., effective as of May 1, 2019, which are incorporated herein by reference to Exhibit 3.1 to PepsiCo, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 3, 2019.
Exhibit 3.2			By-Laws of PepsiCo, Inc., as amended and restated, effective as of April 15, 2020, which are incorporated herein by reference to Exhibit 3.2 to PepsiCo, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 16, 2020.
Exhibit 15			Letter re: Unaudited Interim Financial Information.
Exhibit 31			Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32			Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 99.1			364-Day Credit Agreement, dated as of May 28, 2021, among PepsiCo, as borrower, the lenders named therein, and Citibank, N.A., as administrative agent, which is incorporated by reference to Exhibit 99.1 to PepsiCo, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 28, 2021.
Exhibit 99.2			Five-Year Credit Agreement, dated as of May 28, 2021, among PepsiCo, as borrower, the lenders named therein, and Citibank, N.A., as administrative agent, which is incorporated by reference to Exhibit 99.2 to PepsiCo, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 28, 2021.
Exhibit 101			The following materials from PepsiCo, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 12, 2021 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Statement of Income, (ii) the Condensed Consolidated Statement of Comprehensive Income, (iii) the Condensed Consolidated Statement of Cash Flows, (iv) the Condensed Consolidated Balance Sheet, (v) the Condensed Consolidated Statement of Equity, and (vi) Notes to the Condensed Consolidated Financial Statements.
Exhibit 104			The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 12, 2021, formatted in iXBRL and contained in Exhibit 101.



		PepsiCo, Inc.
		(Registrant)

Date:	July 12, 2021	/s/ Marie T. Gallagher
		Marie T. Gallagher
		Senior Vice President and Controller
		(Principal Accounting Officer)

Date:	July 12, 2021	/s/ David Flavell
		David Flavell
		Executive Vice President, General Counsel and Corporate Secretary
		(Duly Authorized Officer)


Date: July 12, 2021			/s/ Ramon L. Laguarta
			Ramon L. Laguarta
			Chairman of the Board of Directors and
			Chief Executive Officer


Date: July 12, 2021			/s/ Hugh F. Johnston
			Hugh F. Johnston
			Chief Financial Officer

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 12, 2021	Jul. 06, 2021
Document and Entity Information [Line Items]
Document Type	10-Q
Document Period End Date	Jun. 12, 2021
Entity File Number	1-1183
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Registrant Name	PepsiCo, Inc.
Entity Incorporation, State or Country Code	NC
Entity Address, City or Town	Purchase
Entity Address, State or Province	NY
Entity Tax Identification Number	13-1584302
Entity Address, Address Line One	700 Anderson Hill Road
Entity Address, Postal Zip Code	10577
City Area Code	914
Local Phone Number	253-2000
Entity Common Stock, Shares Outstanding		1,382,114,956
Entity Central Index Key	0000077476
Current Fiscal Year End Date	--12-25
Document Fiscal Year Focus	2021
Entity Filer Category	Large Accelerated Filer
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Common Stock
Document and Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value 1-2/3 cents per share
Trading Symbol	PEP
Name of Exchange on which Security is Registered	NASDAQ
Two Point Five Percent Notes Due 2022 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	2.500% Senior Notes Due 2022
Trading Symbol	PEP22a
Name of Exchange on which Security is Registered	NASDAQ
Zero Point Two Five Percent Notes Due 2024 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	0.250% Senior Notes Due 2024
Trading Symbol	PEP24
Name of Exchange on which Security is Registered	NASDAQ
Two Point Six Two Five Percent Notes Due 2026 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	2.625% Senior Notes Due 2026
Trading Symbol	PEP26
Name of Exchange on which Security is Registered	NASDAQ
Zero Point Seven Five Percent Notes Due 2027 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	0.750% Senior Notes Due 2027
Trading Symbol	PEP27
Name of Exchange on which Security is Registered	NASDAQ
Zero Point Eight Seven Five Percent Notes Due 2028 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	0.875% Senior Notes Due 2028
Trading Symbol	PEP28
Name of Exchange on which Security is Registered	NASDAQ
Zero Point Five Percent Notes Due 2028 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	0.500% Senior Notes Due 2028
Trading Symbol	PEP28a
Name of Exchange on which Security is Registered	NASDAQ
One Point One Two Five Percent Notes Due 2031 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	1.125% Senior Notes Due 2031
Trading Symbol	PEP31
Name of Exchange on which Security is Registered	NASDAQ
Zero Point Four Percent Notes Due 2032 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	0.400% Senior Notes Due 2032
Trading Symbol	PEP32
Name of Exchange on which Security is Registered	NASDAQ
Zero Point Eight Seven Five Notes Due 2039 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	0.875% Senior Notes Due 2039
Trading Symbol	PEP39
Name of Exchange on which Security is Registered	NASDAQ
One Point Zero Five Percent Notes Due 2050 [Member]
Document and Entity Information [Line Items]
Title of 12(b) Security	1.050% Senior Notes Due 2050
Trading Symbol	PEP50
Name of Exchange on which Security is Registered	NASDAQ

CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 12, 2021	Jun. 13, 2020	Jun. 12, 2021	Jun. 13, 2020
Income Statement [Abstract]
Net Revenue	$ 19,217	$ 15,945	$ 34,037	$ 29,826
Cost of sales	8,880	7,088	15,551	13,215
Gross profit	10,337	8,857	18,486	16,611
Selling, general and administrative expenses	7,208	6,538	13,045	12,368
Operating Profit	3,129	2,319	5,441	4,243
Other pension and retiree medical benefits income	126	84	246	161
Net interest expense and other	(241)	(235)	(499)	(525)
Income before income taxes	3,014	2,168	5,188	3,879
Provision for income taxes	642	510	1,093	870
Net income	2,372	1,658	4,095	3,009
Less: Net income attributable to noncontrolling interests	14	12	23	25
Net Income Attributable to PepsiCo	$ 2,358	$ 1,646	$ 4,072	$ 2,984
Net Income Attributable to PepsiCo per Common Share
Earnings Per Share, Basic	$ 1.71	$ 1.19	$ 2.95	$ 2.15
Earnings Per Share, Diluted	$ 1.70	$ 1.18	$ 2.94	$ 2.14
Weighted-average common shares outstanding
Weighted Average Number of Shares Outstanding, Basic	1,382	1,387	1,381	1,389
Weighted Average Number of Shares Outstanding, Diluted	1,388	1,393	1,387	1,395

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 12, 2021	Jun. 13, 2020
Operating Activities
Net income	$ 4,095	$ 3,009
Depreciation and amortization	1,213	1,122
Share-based compensation expense	144	101
Restructuring and impairment charges	77	63
Cash payments for restructuring charges	(104)	(109)
Inventory fair value adjustments and merger and integration charges	15	243
Cash payments for merger and integration charges	(14)	(89)
Pension and retiree medical plan expenses	48	80
Pension and retiree medical plan contributions	(461)	(293)
Deferred income taxes and other tax charges and credits	220	109
Tax payments related to the TCJ Act	(309)	0
Change in assets and liabilities [Abstract]
Accounts and notes receivable	(1,214)	(1,101)
Inventories	(810)	(827)
Prepaid expenses and other current assets	(40)	(251)
Accounts payable and other current liabilities	(1,114)	(1,336)
Income taxes payable	516	448
Other, net	78	293
Net Cash Provided by (Used in) Operating Activities	2,340	1,462
Investing Activities
Capital spending	(1,305)	(1,188)
Sales of property, plant and equipment	22	18
Acquisitions, net of cash acquired, and investments in noncontrolled affiliates	(22)	(5,649)
Divestitures and sales of investments in noncontrolled affiliates	120	4
Short-term investments, by original maturity [Abstract]
More than three months - maturities	1,135	0
Three months or less, net	(67)	18
Other investing, net	1	35
Net Cash Provided by (Used in) Investing Activities	(116)	(6,762)
Financing Activities
Proceeds from Issuance of Long-term Debt	0	10,564
Payments of long-term debt	(1,696)	(752)
Short-term borrowings, by original maturity
More than three months - proceeds	0	3,663
More than three months - payments	(397)	(1,176)
Three months or less, net	89	461
Cash dividends paid	(2,842)	(2,677)
Share repurchases - common	(106)	(1,137)
Proceeds from exercises of stock options	100	120
Withholding tax payments on RSUs and PSUs converted	(73)	(79)
Other financing	(19)	(16)
Net Cash Provided by/(Used for) Financing Activities	(4,944)	8,971
Effect of exchange rate changes on cash and cash equivalents and restricted cash	12	(252)
Net (Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash	(2,708)	3,419
Cash and Cash Equivalents and Restricted Cash, Beginning of Year	8,254	5,570
Cash and Cash Equivalents and Restricted Cash, End of Period	5,546	8,989
Supplemental Non-Cash Activity
Right-of-use assets obtained in exchange for lease obligations	$ 319	$ 302

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Jun. 12, 2021	Dec. 26, 2020
Current Assets
Cash and cash equivalents	$ 5,449	$ 8,185
Short-term investments	328	1,366
Accounts and notes receivable, less allowance: 6/21 - $170 and 12/20 - $201	9,722	8,404
Inventories
Raw materials and packaging	2,081	1,720
Work-in-process	381	205
Finished goods	2,544	2,247
Inventory, Net, Total	5,006	4,172
Prepaid expenses and other current assets	1,092	874
Total Current Assets	21,597	23,001
Property, Plant and Equipment	47,404	46,340
Accumulated Depreciation	(25,785)	(24,971)
Property, Plant and Equipment, Net, Total	21,619	21,369
Amortizable Intangible Assets, net	1,686	1,703
Goodwill	18,893	18,757
Other Indefinite-Lived Intangible Assets	17,738	17,612
Investments in Noncontrolled Affiliates	2,774	2,792
Deferred Income Tax Assets, Net	4,370	4,372
Other Assets	3,708	3,312
Total Assets	92,385	92,918
Current Liabilities
Short-term debt obligations	4,264	3,780
Accounts payable and other current liabilities	19,359	19,592
Total Current Liabilities	23,623	23,372
Long-term Debt Obligations	38,034	40,370
Deferred Income Tax Liabilities, Net	4,625	4,284
Other Liabilities	10,705	11,340
Total Liabilities	76,987	79,366
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: 1,382 and 1,380 shares, respectively)	23	23
Capital in excess of par value	3,863	3,910
Retained earnings	64,605	63,443
Accumulated other comprehensive loss	(14,859)	(15,476)
Repurchased common stock, in excess of par value (485 and 487 shares, respectively)	(38,333)	(38,446)
Total PepsiCo Common Shareholders’ Equity	15,299	13,454
Noncontrolling interests	99	98
Total Equity	15,398	13,552
Total Liabilities and Equity	$ 92,385	$ 92,918

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) shares in Millions, $ in Millions	Jun. 12, 2021	Dec. 26, 2020
Statement of Financial Position [Abstract]
Accounts and notes receivable, allowance	$ 170	$ 201
Common stock, Par value	$ 0.0167	$ 0.0167
Common stock, Authorized	3,600	3,600
Common stock, Issued	1,382	1,380
Repurchased common stock, shares	485	487

Recently Issued Accounting Pronouncements (Notes)	6 Months Ended
Recently Issued Accounting Pronouncements (Notes)	Jun. 12, 2021
Accounting Changes and Error Corrections [Abstract]
Accounting Standards Update and Change in Accounting Principle [Text Block]	Recently Issued Accounting Pronouncements Adopted In 2019, the Financial Accounting Standards Board issued guidance to simplify the accounting for income taxes. The guidance primarily addresses how to (1) recognize a deferred tax liability after we transition to or from the equity method of accounting, (2) evaluate if a step-up in the tax basis of goodwill is related to a business combination or is a separate transaction, (3) recognize all of the effects of a change in tax law in the period of enactment, including adjusting the estimated annual tax rate, and (4) include the amount of tax based on income in the income tax provision and any incremental amount as a tax not based on income for hybrid tax regimes. We adopted the guidance in the first quarter of 2021. The adoption did not have a material impact on our condensed consolidated financial statements or related disclosures.

Income Taxes	6 Months Ended
Income Taxes	Jun. 12, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On May 19, 2019, a public referendum held in Switzerland passed the Federal Act on Tax Reform and AHV Financing (TRAF), effective January 1, 2020. The enactment of certain provisions of the TRAF resulted in adjustments to our deferred taxes. During 2020, we recorded a net tax benefit of $72 million related to the adoption of the TRAF in the Swiss Canton of Bern. There were no income tax adjustments related to the TRAF recorded in either of the 24 weeks ended June 12, 2021 or June 13, 2020. While the accounting for the impacts of the TRAF are deemed to be complete, further adjustments to our financial statements and related disclosures could be made in future quarters, including in connection with final tax return filings. For further information and discussion of the TRAF, refer to Note 5 to our consolidated financial statements in our 2020 Form 10-K. Subsequent to June 12, 2021, we received a final assessment from the IRS related to the audits of 2014 through 2016. We regularly assess the likelihood of adverse outcomes resulting from such assessments and believe that our current reserves are adequate.

Debt Obligations and Commitments	6 Months Ended
Debt Obligations and Commitments	Jun. 12, 2021
Debt Disclosure [Abstract]
Debt Disclosure	Debt Obligations In the 24 weeks ended June 12, 2021, $1.0 billion of USD-denominated senior notes and €0.5 billion of euro-denominated senior notes matured and were paid. As of June 12, 2021, we had no commercial paper outstanding. In the second quarter of 2021, we entered into a new five-year unsecured revolving credit agreement (Five-Year Credit Agreement), which expires on May 28, 2026. The Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.75 billion in U.S. dollars and/or euros, including a $0.75 billion swing line subfacility for euro-denominated borrowings permitted to be borrowed on a same-day basis, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $4.5 billion (or the equivalent amount in euros). Additionally, we may, once a year, request renewal of the agreement for an additional one-year period. The Five-Year Credit Agreement replaced our $3.75 billion five year credit agreement, dated as of June 3, 2019. Also in the second quarter of 2021, we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit Agreement), which expires on May 27, 2022. The 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.75 billion in U.S. dollars and/or euros, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $4.5 billion (or the equivalent amount in euros). We may request renewal of this facility for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to one year, which term loan would mature no later than the anniversary of the then effective termination date. The 364-Day Credit Agreement replaced our $3.75 billion 364-day credit agreement, dated as of June 1, 2020. Funds borrowed under the Five-Year Credit Agreement and the 364-Day Credit Agreement may be used for general corporate purposes. Subject to certain conditions, we may borrow, prepay and reborrow amounts under these agreements. As of June 12, 2021, there were no outstanding borrowings under the Five-Year Credit Agreement or the 364-Day Credit Agreement.

Organization, Consolidation and Presentation of Financial Statements (Policies)	6 Months Ended
	Jun. 12, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fiscal Period, Policy	While our financial results in the United States and Canada (North America) are reported on a 12-week basis, substantially all of our international operations report on a monthly calendar basis for which the months of March, April and May are reflected in our results for the 12 weeks ended June 12, 2021 and the months of January through May are reflected in our results for the 24 weeks ended June 12, 2021.

Accounting Policies (Policies)	6 Months Ended
Accounting Policies (Policies)	Jun. 12, 2021
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy	Recently Issued Accounting Pronouncements Adopted In 2019, the Financial Accounting Standards Board issued guidance to simplify the accounting for income taxes. The guidance primarily addresses how to (1) recognize a deferred tax liability after we transition to or from the equity method of accounting, (2) evaluate if a step-up in the tax basis of goodwill is related to a business combination or is a separate transaction, (3) recognize all of the effects of a change in tax law in the period of enactment, including adjusting the estimated annual tax rate, and (4) include the amount of tax based on income in the income tax provision and any incremental amount as a tax not based on income for hybrid tax regimes. We adopted the guidance in the first quarter of 2021. The adoption did not have a material impact on our condensed consolidated financial statements or related disclosures.

Basis of Presentation (Narrative) (Details) - segment	3 Months Ended	6 Months Ended
Basis of Presentation (Narrative) (Details) - segment	Jun. 12, 2021	Jun. 12, 2021
Basis Of Presentation And Our Divisions [Line Items]
Number of Reportable Segments		7
United States and Canada [Member]
Basis Of Presentation And Our Divisions [Line Items]
Fiscal Period Duration	84 days

Restructuring and Impairment Charges (Expected Pre-Tax Charges for 2019 Productivity Plan) (Details) - 2019 Productivity Plan [Member] $ in Millions	Jun. 12, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	$ 3,150
Restructuring and Related Cost, Expected Cash Expenditures	2,400
Previous Estimate
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	2,500
Restructuring and Related Cost, Expected Cash Expenditures	$ 1,600
Severance and Other Employee Costs
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	65.00%
Asset Impairments
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	10.00%
Other Costs
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	25.00%
Corporate Unallocated [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	11.00%
Frito Lay North America [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	15.00%
Quaker Foods North America [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	1.00%
PepsiCo Beverages North America [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	25.00%
Latin America (Segment)
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	10.00%
Europe (Segment)
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	30.00%
Africa, Middle East and South Asia [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	5.00%
Asia Pacific, Australia and New Zealand, and China Region [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Percentage of Expect Costs	3.00%

Intangible Assets Amortizable Intangible Assets, net (Detail) - USD ($) $ in Millions	Jun. 12, 2021	Dec. 26, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 3,474	$ 3,440
Finite-Lived Intangible Assets, Accumulated Amortization	(1,788)	(1,737)
Amortizable Intangible Assets, net	1,686	1,703
Other Identifiable Intangibles [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	475	474
Finite-Lived Intangible Assets, Accumulated Amortization	(269)	(261)
Amortizable Intangible Assets, net	206	213
Brands
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,354	1,348
Finite-Lived Intangible Assets, Accumulated Amortization	(1,116)	(1,099)
Amortizable Intangible Assets, net	238	249
Reacquired Franchise Rights
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	656	642
Finite-Lived Intangible Assets, Accumulated Amortization	(220)	(204)
Amortizable Intangible Assets, net	436	438
Acquired Franchise Rights
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	989	976
Finite-Lived Intangible Assets, Accumulated Amortization	(183)	(173)
Amortizable Intangible Assets, net	$ 806	$ 803