000007747612/312022Q1false0.01670.016784P3Ythree years00000774762021-12-262022-03-190000077476us-gaap:CommonStockMember2021-12-262022-03-190000077476pep:TwoPointFivePercentNotesDue2022Member2021-12-262022-03-190000077476pep:ZeroPointTwoFivePercentNotesDue2024Member2021-12-262022-03-190000077476pep:TwoPointSixTwoFivePercentNotesDue2026Member2021-12-262022-03-190000077476pep:ZeroPointSevenFivePercentNotesDue2027Member2021-12-262022-03-190000077476pep:ZeroPointEightSevenFivePercentNotesDue2028Member2021-12-262022-03-190000077476pep:ZeroPointFivePercentNotesDue2028Member2021-12-262022-03-190000077476pep:OnePointOneTwoFivePercentNotesDue2031Member2021-12-262022-03-190000077476pep:ZeroPointFourPercentNotesDue2032Member2021-12-262022-03-190000077476pep:ZeroPointSevenFivePercentNotesDue2033Member2021-12-262022-03-190000077476pep:ZeroPointEightSevenFiveNotesDue2039Member2021-12-262022-03-190000077476pep:OnePointZeroFivePercentNotesDue2050Member2021-12-262022-03-1900000774762022-04-19xbrli:sharesiso4217:USD00000774762020-12-272021-03-20iso4217:USDxbrli:shares00000774762022-03-19xbrli:pure00000774762021-12-2500000774762020-12-2600000774762021-03-200000077476us-gaap:CommonStockMember2021-12-250000077476us-gaap:CommonStockMember2020-12-260000077476us-gaap:CommonStockMember2021-12-262022-03-190000077476us-gaap:CommonStockMember2020-12-272021-03-200000077476us-gaap:CommonStockMember2022-03-190000077476us-gaap:CommonStockMember2021-03-200000077476us-gaap:AdditionalPaidInCapitalMember2021-12-250000077476us-gaap:AdditionalPaidInCapitalMember2020-12-260000077476us-gaap:AdditionalPaidInCapitalMember2021-12-262022-03-190000077476us-gaap:AdditionalPaidInCapitalMember2020-12-272021-03-200000077476us-gaap:AdditionalPaidInCapitalMember2022-03-190000077476us-gaap:AdditionalPaidInCapitalMember2021-03-200000077476us-gaap:RetainedEarningsMember2021-12-250000077476us-gaap:RetainedEarningsMember2020-12-260000077476us-gaap:RetainedEarningsMember2021-12-262022-03-190000077476us-gaap:RetainedEarningsMember2020-12-272021-03-200000077476us-gaap:RetainedEarningsMember2022-03-190000077476us-gaap:RetainedEarningsMember2021-03-200000077476us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-250000077476us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-260000077476us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-262022-03-190000077476us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-272021-03-200000077476us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-190000077476us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-200000077476us-gaap:TreasuryStockMember2021-12-250000077476us-gaap:TreasuryStockMember2020-12-260000077476us-gaap:TreasuryStockMember2021-12-262022-03-190000077476us-gaap:TreasuryStockMember2020-12-272021-03-200000077476us-gaap:TreasuryStockMember2022-03-190000077476us-gaap:TreasuryStockMember2021-03-200000077476us-gaap:ParentMember2022-03-190000077476us-gaap:ParentMember2021-03-200000077476us-gaap:NoncontrollingInterestMember2021-12-250000077476us-gaap:NoncontrollingInterestMember2020-12-260000077476us-gaap:NoncontrollingInterestMember2021-12-262022-03-190000077476us-gaap:NoncontrollingInterestMember2020-12-272021-03-200000077476us-gaap:NoncontrollingInterestMember2022-03-190000077476us-gaap:NoncontrollingInterestMember2021-03-200000077476pep:UnitedStatesandCanadaMember2021-12-262022-03-19pep:segment0000077476pep:FritoLayNorthAmericaMember2021-12-262022-03-190000077476pep:FritoLayNorthAmericaMember2020-12-272021-03-200000077476pep:QuakerFoodsNorthAmericaMember2021-12-262022-03-190000077476pep:QuakerFoodsNorthAmericaMember2020-12-272021-03-200000077476pep:PepsiCoBeveragesNorthAmericaMember2021-12-262022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMember2020-12-272021-03-200000077476pep:LatinAmericaSegmentMember2021-12-262022-03-190000077476pep:LatinAmericaSegmentMember2020-12-272021-03-200000077476pep:EuropeSegmentMember2021-12-262022-03-190000077476pep:EuropeSegmentMember2020-12-272021-03-200000077476pep:AfricaMiddleEastandSouthAsiaMember2021-12-262022-03-190000077476pep:AfricaMiddleEastandSouthAsiaMember2020-12-272021-03-200000077476pep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2021-12-262022-03-190000077476pep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2020-12-272021-03-200000077476us-gaap:OperatingSegmentsMember2021-12-262022-03-190000077476us-gaap:OperatingSegmentsMember2020-12-272021-03-200000077476us-gaap:CorporateNonSegmentMember2021-12-262022-03-190000077476us-gaap:CorporateNonSegmentMember2020-12-272021-03-200000077476us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-03-190000077476us-gaap:CostOfSalesMember2021-12-262022-03-190000077476pep:A2019ProductivityPlanMember2022-03-190000077476us-gaap:EmployeeSeveranceMemberpep:A2019ProductivityPlanMember2022-03-190000077476pep:AssetImpairmentMemberpep:A2019ProductivityPlanMember2022-03-190000077476pep:A2019ProductivityPlanMemberus-gaap:OtherRestructuringMember2022-03-190000077476pep:A2019ProductivityPlanMember2021-12-262022-03-190000077476pep:FritoLayNorthAmericaMemberpep:A2019ProductivityPlanMember2022-03-190000077476pep:QuakerFoodsNorthAmericaMemberpep:A2019ProductivityPlanMember2022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMemberpep:A2019ProductivityPlanMember2022-03-190000077476pep:A2019ProductivityPlanMemberpep:LatinAmericaSegmentMember2022-03-190000077476pep:EuropeSegmentMemberpep:A2019ProductivityPlanMember2022-03-190000077476pep:AfricaMiddleEastandSouthAsiaMemberpep:A2019ProductivityPlanMember2022-03-190000077476pep:A2019ProductivityPlanMemberpep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2022-03-190000077476pep:A2019ProductivityPlanMemberus-gaap:CorporateNonSegmentMember2022-03-190000077476us-gaap:CostOfSalesMemberpep:A2019ProductivityPlanMember2021-12-262022-03-190000077476us-gaap:CostOfSalesMemberpep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:A2019ProductivityPlanMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-03-190000077476pep:A2019ProductivityPlanMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-12-272021-03-200000077476pep:A2019ProductivityPlanMemberpep:OtherpensionandretireemedicalbenefitsexpenseMember2021-12-262022-03-190000077476pep:A2019ProductivityPlanMemberpep:OtherpensionandretireemedicalbenefitsexpenseMember2020-12-272021-03-200000077476pep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:AftertaxamountMemberpep:A2019ProductivityPlanMember2021-12-262022-03-190000077476pep:AftertaxamountMemberpep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:FritoLayNorthAmericaMemberpep:A2019ProductivityPlanMember2021-12-262022-03-190000077476pep:FritoLayNorthAmericaMemberpep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:QuakerFoodsNorthAmericaMemberpep:A2019ProductivityPlanMember2021-12-262022-03-190000077476pep:QuakerFoodsNorthAmericaMemberpep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:PepsiCoBeveragesNorthAmericaMemberpep:A2019ProductivityPlanMember2021-12-262022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMemberpep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:A2019ProductivityPlanMemberpep:LatinAmericaSegmentMember2021-12-262022-03-190000077476pep:A2019ProductivityPlanMemberpep:LatinAmericaSegmentMember2020-12-272021-03-200000077476pep:EuropeSegmentMemberpep:A2019ProductivityPlanMember2021-12-262022-03-190000077476pep:EuropeSegmentMemberpep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:AfricaMiddleEastandSouthAsiaMemberpep:A2019ProductivityPlanMember2021-12-262022-03-190000077476pep:AfricaMiddleEastandSouthAsiaMemberpep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:A2019ProductivityPlanMemberpep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2021-12-262022-03-190000077476pep:A2019ProductivityPlanMemberpep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2020-12-272021-03-200000077476pep:A2019ProductivityPlanMemberus-gaap:CorporateNonSegmentMember2021-12-262022-03-190000077476pep:A2019ProductivityPlanMemberus-gaap:CorporateNonSegmentMember2020-12-272021-03-200000077476pep:A2019ProductivityPlanMemberpep:RestructuringSettlementandImpairmentProvisionslessOtherpensionandretireemedicalbenefitsexpenseMember2021-12-262022-03-190000077476pep:A2019ProductivityPlanMemberpep:RestructuringSettlementandImpairmentProvisionslessOtherpensionandretireemedicalbenefitsexpenseMember2020-12-272021-03-200000077476pep:A2019ProductivityPlanMemberpep:RestructuringSettlementandImpairmentProvisionslessOtherpensionandretireemedicalbenefitsexpenseMember2022-03-190000077476pep:A2019ProductivityPlanMemberpep:OtherpensionandretireemedicalbenefitsexpenseMember2022-03-190000077476us-gaap:EmployeeSeveranceMemberpep:A2019ProductivityPlanMember2021-12-262022-03-190000077476us-gaap:EmployeeSeveranceMemberpep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:AssetImpairmentMemberpep:A2019ProductivityPlanMember2021-12-262022-03-190000077476pep:AssetImpairmentMemberpep:A2019ProductivityPlanMember2020-12-272021-03-200000077476pep:A2019ProductivityPlanMemberus-gaap:OtherRestructuringMember2021-12-262022-03-190000077476pep:A2019ProductivityPlanMemberus-gaap:OtherRestructuringMember2020-12-272021-03-200000077476us-gaap:EmployeeSeveranceMemberpep:A2019ProductivityPlanMember2021-12-250000077476pep:A2019ProductivityPlanMemberus-gaap:OtherRestructuringMember2021-12-250000077476pep:A2019ProductivityPlanMember2021-12-250000077476pep:OtherThan2019ProductivityPlanMember2021-12-262022-03-190000077476pep:AcquiredFranchiseRightsMember2022-03-190000077476pep:AcquiredFranchiseRightsMember2021-12-250000077476pep:ReacquiredFranchiseRightsMember2022-03-190000077476pep:ReacquiredFranchiseRightsMember2021-12-250000077476pep:BrandsMember2022-03-190000077476pep:BrandsMember2021-12-250000077476pep:OtherIdentifiableIntangiblesMember2022-03-190000077476pep:OtherIdentifiableIntangiblesMember2021-12-250000077476pep:FritoLayNorthAmericaMemberus-gaap:GoodwillMember2021-12-250000077476pep:FritoLayNorthAmericaMemberus-gaap:GoodwillMember2021-12-262022-03-190000077476pep:FritoLayNorthAmericaMemberus-gaap:GoodwillMember2022-03-190000077476pep:BrandsMemberpep:FritoLayNorthAmericaMember2021-12-250000077476pep:BrandsMemberpep:FritoLayNorthAmericaMember2021-12-262022-03-190000077476pep:BrandsMemberpep:FritoLayNorthAmericaMember2022-03-190000077476pep:FritoLayNorthAmericaMember2021-12-250000077476pep:FritoLayNorthAmericaMember2022-03-190000077476pep:QuakerFoodsNorthAmericaMemberus-gaap:GoodwillMember2021-12-250000077476pep:QuakerFoodsNorthAmericaMemberus-gaap:GoodwillMember2021-12-262022-03-190000077476pep:QuakerFoodsNorthAmericaMemberus-gaap:GoodwillMember2022-03-190000077476pep:QuakerFoodsNorthAmericaMember2021-12-250000077476pep:QuakerFoodsNorthAmericaMember2022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMemberus-gaap:GoodwillMember2021-12-250000077476pep:PepsiCoBeveragesNorthAmericaMemberus-gaap:GoodwillMember2021-12-262022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMemberus-gaap:GoodwillMember2022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMemberpep:ReacquiredFranchiseRightsMember2021-12-250000077476pep:PepsiCoBeveragesNorthAmericaMemberpep:ReacquiredFranchiseRightsMember2021-12-262022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMemberpep:ReacquiredFranchiseRightsMember2022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMemberpep:AcquiredFranchiseRightsMember2021-12-250000077476pep:PepsiCoBeveragesNorthAmericaMemberpep:AcquiredFranchiseRightsMember2021-12-262022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMemberpep:AcquiredFranchiseRightsMember2022-03-190000077476pep:BrandsMemberpep:PepsiCoBeveragesNorthAmericaMember2021-12-250000077476pep:BrandsMemberpep:PepsiCoBeveragesNorthAmericaMember2021-12-262022-03-190000077476pep:BrandsMemberpep:PepsiCoBeveragesNorthAmericaMember2022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMember2021-12-250000077476pep:PepsiCoBeveragesNorthAmericaMember2022-03-190000077476us-gaap:GoodwillMemberpep:LatinAmericaSegmentMember2021-12-250000077476us-gaap:GoodwillMemberpep:LatinAmericaSegmentMember2021-12-262022-03-190000077476us-gaap:GoodwillMemberpep:LatinAmericaSegmentMember2022-03-190000077476pep:BrandsMemberpep:LatinAmericaSegmentMember2021-12-250000077476pep:BrandsMemberpep:LatinAmericaSegmentMember2021-12-262022-03-190000077476pep:BrandsMemberpep:LatinAmericaSegmentMember2022-03-190000077476pep:LatinAmericaSegmentMember2021-12-250000077476pep:LatinAmericaSegmentMember2022-03-190000077476pep:EuropeSegmentMemberus-gaap:GoodwillMember2021-12-250000077476pep:EuropeSegmentMemberus-gaap:GoodwillMember2021-12-262022-03-190000077476pep:EuropeSegmentMemberus-gaap:GoodwillMember2022-03-190000077476pep:EuropeSegmentMemberpep:ReacquiredFranchiseRightsMember2021-12-250000077476pep:EuropeSegmentMemberpep:ReacquiredFranchiseRightsMember2021-12-262022-03-190000077476pep:EuropeSegmentMemberpep:ReacquiredFranchiseRightsMember2022-03-190000077476pep:EuropeSegmentMemberpep:AcquiredFranchiseRightsMember2021-12-250000077476pep:EuropeSegmentMemberpep:AcquiredFranchiseRightsMember2021-12-262022-03-190000077476pep:EuropeSegmentMemberpep:AcquiredFranchiseRightsMember2022-03-190000077476pep:EuropeSegmentMemberpep:BrandsMember2021-12-250000077476pep:EuropeSegmentMemberpep:BrandsMember2021-12-262022-03-190000077476pep:EuropeSegmentMemberpep:BrandsMember2022-03-190000077476pep:EuropeSegmentMember2021-12-250000077476pep:EuropeSegmentMember2022-03-190000077476pep:AfricaMiddleEastandSouthAsiaMemberus-gaap:GoodwillMember2021-12-250000077476pep:AfricaMiddleEastandSouthAsiaMemberus-gaap:GoodwillMember2021-12-262022-03-190000077476pep:AfricaMiddleEastandSouthAsiaMemberus-gaap:GoodwillMember2022-03-190000077476pep:BrandsMemberpep:AfricaMiddleEastandSouthAsiaMember2021-12-250000077476pep:BrandsMemberpep:AfricaMiddleEastandSouthAsiaMember2021-12-262022-03-190000077476pep:BrandsMemberpep:AfricaMiddleEastandSouthAsiaMember2022-03-190000077476pep:AfricaMiddleEastandSouthAsiaMember2021-12-250000077476pep:AfricaMiddleEastandSouthAsiaMember2022-03-190000077476pep:AsiaPacificAustraliaandNewZealandandChinaRegionMemberus-gaap:GoodwillMember2021-12-250000077476pep:AsiaPacificAustraliaandNewZealandandChinaRegionMemberus-gaap:GoodwillMember2021-12-262022-03-190000077476pep:AsiaPacificAustraliaandNewZealandandChinaRegionMemberus-gaap:GoodwillMember2022-03-190000077476pep:BrandsMemberpep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2021-12-250000077476pep:BrandsMemberpep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2021-12-262022-03-190000077476pep:BrandsMemberpep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2022-03-190000077476pep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2021-12-250000077476pep:AsiaPacificAustraliaandNewZealandandChinaRegionMember2022-03-190000077476us-gaap:GoodwillMember2021-12-250000077476us-gaap:GoodwillMember2021-12-262022-03-190000077476us-gaap:GoodwillMember2022-03-190000077476pep:ReacquiredFranchiseRightsMember2021-12-250000077476pep:ReacquiredFranchiseRightsMember2021-12-262022-03-190000077476pep:ReacquiredFranchiseRightsMember2022-03-190000077476pep:AcquiredFranchiseRightsMember2021-12-250000077476pep:AcquiredFranchiseRightsMember2021-12-262022-03-190000077476pep:AcquiredFranchiseRightsMember2022-03-190000077476pep:BrandsMember2021-12-250000077476pep:BrandsMember2021-12-262022-03-190000077476pep:BrandsMember2022-03-1900000774762020-12-272021-12-250000077476pep:SharebasedCompensationMember2021-12-262022-03-190000077476pep:SharebasedCompensationMember2020-12-272021-03-200000077476pep:SharebasedCompensationMember2021-12-262022-03-190000077476pep:SharebasedCompensationMember2020-12-272021-03-200000077476us-gaap:EmployeeStockOptionMember2021-12-262022-03-190000077476us-gaap:EmployeeStockOptionMember2020-12-272021-03-200000077476us-gaap:RestrictedStockUnitsRSUMember2021-12-262022-03-190000077476us-gaap:RestrictedStockUnitsRSUMember2020-12-272021-03-200000077476us-gaap:DomesticPlanMember2021-12-262022-03-190000077476us-gaap:DomesticPlanMember2020-12-272021-03-200000077476us-gaap:ForeignPlanMember2021-12-262022-03-190000077476us-gaap:ForeignPlanMember2020-12-272021-03-200000077476pep:RetireeMedicalPlanMember2021-12-262022-03-190000077476pep:RetireeMedicalPlanMember2020-12-272021-03-200000077476srt:ScenarioForecastMemberus-gaap:DomesticPlanMember2022-08-310000077476us-gaap:SubsequentEventMember2022-06-110000077476us-gaap:SubsequentEventMemberpep:NotesDueMay2022Member2022-06-110000077476us-gaap:SubsequentEventMember2022-03-202022-06-110000077476pep:NotesDueJuly2022Memberus-gaap:SubsequentEventMember2022-06-110000077476us-gaap:CommodityContractMember2022-03-190000077476us-gaap:CommodityContractMember2021-12-250000077476us-gaap:ForeignExchangeContractMember2022-03-190000077476us-gaap:ForeignExchangeContractMember2021-12-250000077476us-gaap:InterestRateContractMember2022-03-190000077476us-gaap:InterestRateContractMember2021-12-250000077476us-gaap:NetInvestmentHedgingMember2022-03-190000077476us-gaap:NetInvestmentHedgingMember2021-12-250000077476us-gaap:InterestRateContractMember2022-03-190000077476us-gaap:InterestRateContractMember2021-12-250000077476pep:CommercialPaperBorrowingsMember2022-03-190000077476pep:CommercialPaperBorrowingsMember2021-12-250000077476us-gaap:AssetsMemberus-gaap:FairValueInputsLevel1Member2022-03-190000077476us-gaap:LiabilityMemberus-gaap:FairValueInputsLevel1Member2022-03-190000077476us-gaap:AssetsMemberus-gaap:FairValueInputsLevel1Member2021-12-250000077476us-gaap:LiabilityMemberus-gaap:FairValueInputsLevel1Member2021-12-250000077476us-gaap:FairValueInputsLevel2Memberus-gaap:AssetsMember2022-03-190000077476us-gaap:FairValueInputsLevel2Memberus-gaap:LiabilityMember2022-03-190000077476us-gaap:FairValueInputsLevel2Memberus-gaap:AssetsMember2021-12-250000077476us-gaap:FairValueInputsLevel2Memberus-gaap:LiabilityMember2021-12-250000077476pep:DerivativesDesignatedAsCashFlowHedgingInstrumentsAssetsMemberus-gaap:FairValueInputsLevel2Member2022-03-190000077476pep:DerivativesDesignatedAsCashFlowHedgingInstrumentsLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2022-03-190000077476pep:DerivativesDesignatedAsCashFlowHedgingInstrumentsAssetsMemberus-gaap:FairValueInputsLevel2Member2021-12-250000077476pep:DerivativesDesignatedAsCashFlowHedgingInstrumentsLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2021-12-250000077476pep:DerivativesDesignatedAsCashFlowHedgingInstrumentsAssetsMember2022-03-190000077476pep:DerivativesDesignatedAsCashFlowHedgingInstrumentsLiabilitiesMember2022-03-190000077476pep:DerivativesDesignatedAsCashFlowHedgingInstrumentsAssetsMember2021-12-250000077476pep:DerivativesDesignatedAsCashFlowHedgingInstrumentsLiabilitiesMember2021-12-250000077476us-gaap:FairValueInputsLevel2Memberpep:DerivativesNotDesignatedAsHedgingInstrumentsAssetsMember2022-03-190000077476us-gaap:FairValueInputsLevel2Memberpep:DerivativesNotDesignatedAsHedgingInstrumentsLiabilitiesMember2022-03-190000077476us-gaap:FairValueInputsLevel2Memberpep:DerivativesNotDesignatedAsHedgingInstrumentsAssetsMember2021-12-250000077476us-gaap:FairValueInputsLevel2Memberpep:DerivativesNotDesignatedAsHedgingInstrumentsLiabilitiesMember2021-12-250000077476pep:DerivativesNotDesignatedAsHedgingInstrumentsAssetsMember2022-03-190000077476pep:DerivativesNotDesignatedAsHedgingInstrumentsLiabilitiesMember2022-03-190000077476pep:DerivativesNotDesignatedAsHedgingInstrumentsAssetsMember2021-12-250000077476pep:DerivativesNotDesignatedAsHedgingInstrumentsLiabilitiesMember2021-12-250000077476pep:FairValueNondesignatedHedgesMemberus-gaap:ForeignExchangeForwardMember2021-12-262022-03-190000077476pep:FairValueNondesignatedHedgesMemberus-gaap:ForeignExchangeForwardMember2020-12-272021-03-200000077476us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2021-12-262022-03-190000077476us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2020-12-272021-03-200000077476us-gaap:InterestRateContractMemberpep:FairValueNondesignatedHedgesMember2021-12-262022-03-190000077476us-gaap:InterestRateContractMemberpep:FairValueNondesignatedHedgesMember2020-12-272021-03-200000077476us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMember2021-12-262022-03-190000077476us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMember2020-12-272021-03-200000077476pep:FairValueNondesignatedHedgesMemberus-gaap:CommodityContractMember2021-12-262022-03-190000077476pep:FairValueNondesignatedHedgesMemberus-gaap:CommodityContractMember2020-12-272021-03-200000077476us-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2021-12-262022-03-190000077476us-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2020-12-272021-03-200000077476pep:FairValueNondesignatedHedgesMemberus-gaap:NetInvestmentHedgingMember2021-12-262022-03-190000077476pep:FairValueNondesignatedHedgesMemberus-gaap:NetInvestmentHedgingMember2020-12-272021-03-200000077476us-gaap:CashFlowHedgingMemberus-gaap:NetInvestmentHedgingMember2021-12-262022-03-190000077476us-gaap:CashFlowHedgingMemberus-gaap:NetInvestmentHedgingMember2020-12-272021-03-200000077476pep:FairValueNondesignatedHedgesMember2021-12-262022-03-190000077476pep:FairValueNondesignatedHedgesMember2020-12-272021-03-200000077476us-gaap:CashFlowHedgingMember2021-12-262022-03-190000077476us-gaap:CashFlowHedgingMember2020-12-272021-03-200000077476us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberpep:RevenueNetMember2021-12-262022-03-190000077476us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMemberpep:RevenueNetMember2020-12-272021-03-200000077476us-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2021-12-262022-03-190000077476us-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2020-12-272021-03-200000077476us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-03-190000077476us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-12-272021-03-200000077476us-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2021-12-262022-03-190000077476us-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2020-12-272021-03-200000077476us-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:CommodityContractMember2021-12-262022-03-190000077476us-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:CommodityContractMember2020-12-272021-03-200000077476us-gaap:CorporateMember2021-12-262022-03-190000077476pep:PepsiCoBeveragesNorthAmericaMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-03-190000077476pep:EuropeSegmentMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-03-190000077476us-gaap:CorporateMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-03-190000077476pep:UsGaap_OtherpensionandretireemedicalbenefitsexpenseMember2021-12-262022-03-190000077476us-gaap:CorporateMember2020-12-272021-03-200000077476us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-12-272021-03-200000077476pep:UsGaap_OtherpensionandretireemedicalbenefitsexpenseMember2020-12-272021-03-20

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 19, 2022 (12 weeks)
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to             
Commission file number 1-1183
pep-20220319_g1.jpg
PepsiCo, Inc.
(Exact Name of Registrant as Specified in its Charter)
North Carolina13-1584302
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
700 Anderson Hill Road, Purchase, New York 10577
(Address of principal executive offices and Zip Code)
(914) 253-2000
Registrant's telephone number, including area code
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading SymbolsName of each exchange on which registered
Common Stock, par value 1-2/3 cents per sharePEPThe Nasdaq Stock Market LLC
2.500% Senior Notes Due 2022PEP22aThe Nasdaq Stock Market LLC
0.250% Senior Notes Due 2024PEP24The Nasdaq Stock Market LLC
2.625% Senior Notes Due 2026PEP26The Nasdaq Stock Market LLC
0.750% Senior Notes Due 2027PEP27The Nasdaq Stock Market LLC
0.875% Senior Notes Due 2028PEP28The Nasdaq Stock Market LLC
0.500% Senior Notes Due 2028PEP28aThe Nasdaq Stock Market LLC
1.125% Senior Notes Due 2031PEP31The Nasdaq Stock Market LLC
0.400% Senior Notes Due 2032PEP32The Nasdaq Stock Market LLC
0.750% Senior Notes Due 2033PEP33The Nasdaq Stock Market LLC
0.875% Senior Notes Due 2039PEP39The Nasdaq Stock Market LLC
1.050% Senior Notes Due 2050PEP50The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ☒    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes   ☒    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes       No  ☒
Number of shares of Common Stock outstanding as of April 19, 2022 was 1,382,683,559.


Table of Contents    

PepsiCo, Inc. and Subsidiaries

Table of Contents
Page No.
Part I Financial Information
Item 1.Condensed Consolidated Financial Statements
Item 2.
Report of Independent Registered Public Accounting Firm
Item 3.
Item 4.
Part II Other Information
Item 1.
Item 1A.
Item 2.
Item 6.

2

Table of Contents    

PART I FINANCIAL INFORMATION
ITEM 1. Condensed Consolidated Financial Statements.

Condensed Consolidated Statement of Income
PepsiCo, Inc. and Subsidiaries
(in millions except per share amounts, unaudited) 
12 Weeks Ended
 3/19/20223/20/2021
Net Revenue$16,200 $14,820 
Cost of sales7,433 6,671 
Gross profit8,767 8,149 
Selling, general and administrative expenses6,822 5,837 
Gain associated with the Juice Transaction (a)
(3,322) 
Operating Profit5,267 2,312 
Other pension and retiree medical benefits income134 120 
Net interest expense and other(240)(258)
Income before income taxes5,161 2,174 
Provision for income taxes888 451 
Net income4,273 1,723 
Less: Net income attributable to noncontrolling interests
12 9 
Net Income Attributable to PepsiCo$4,261 $1,714 
Net Income Attributable to PepsiCo per Common Share
Basic$3.08 $1.24 
Diluted$3.06 $1.24 
Weighted-average common shares outstanding
Basic1,383 1,380 
Diluted1,391 1,387 
(a)In the 12 weeks ended March 19, 2022, we sold our Tropicana, Naked and other select juice brands to PAI Partners for approximately $3.5 billion in cash and a 39% noncontrolling interest in a newly formed joint venture (Tropicana JV) operating across North America and Europe (Juice Transaction). See Note 11 for further information.

See accompanying notes to the condensed consolidated financial statements.
3

Table of Contents    

Condensed Consolidated Statement of Comprehensive Income
PepsiCo, Inc. and Subsidiaries
(in millions, unaudited) 
12 Weeks Ended
3/19/20223/20/2021
Net income$4,273 $1,723 
Other comprehensive (loss)/income, net of taxes:
Net currency translation adjustment(560)131 
Net change on cash flow hedges106 72 
Net pension and retiree medical adjustments13 27 
Other(4) 
(445)230 
Comprehensive income3,828 1,953 
Less: Comprehensive income attributable to
noncontrolling interests
12 9 
Comprehensive Income Attributable to PepsiCo$3,816 $1,944 
See accompanying notes to the condensed consolidated financial statements.
4

Table of Contents    

Condensed Consolidated Statement of Cash Flows
PepsiCo, Inc. and Subsidiaries
(in millions, unaudited)
 12 Weeks Ended
3/19/20223/20/2021
Operating Activities
Net income$4,273 $1,723 
Depreciation and amortization555 560 
Gain associated with the Juice Transaction(3,322) 
Brand portfolio impairment charges241  
Russia-Ukraine conflict charges241  
Operating lease right-of-use asset amortization103 99 
Share-based compensation expense81 79 
Restructuring and impairment charges 27 43 
Cash payments for restructuring charges(32)(49)
Acquisition and divestiture-related charges
56 (10)
Cash payments for acquisition and divestiture-related charges(17)(7)
Pension and retiree medical plan (income)/expense(1)21 
Pension and retiree medical plan contributions(178)(413)
Deferred income taxes and other tax charges and credits257 108 
Change in assets and liabilities:
Accounts and notes receivable(837)(455)
Inventories(549)(397)
Prepaid expenses and other current assets(190)(210)
Accounts payable and other current liabilities(1,238)(1,906)
Income taxes payable489 227 
Other, net(133)(132)
Net Cash Used for Operating Activities(174)(719)
Investing Activities
Capital spending(522)(471)
Sales of property, plant and equipment3 5 
Acquisitions, net of cash acquired, and investments in noncontrolled affiliates(13)(13)
Proceeds associated with the Juice Transaction
3,456  
Other divestitures and sales of investments in noncontrolled affiliates
5 35 
Short-term investments, by original maturity:
More than three months - maturities 535 
Three months or less, net22 3 
Other investing, net4  
Net Cash Provided by Investing Activities2,955 94 
    
(Continued on following page)
5

Table of Contents    

Condensed Consolidated Statement of Cash Flows (continued)
PepsiCo, Inc. and Subsidiaries
(in millions, unaudited)
12 Weeks Ended
3/19/20223/20/2021
Financing Activities
Payments of long-term debt(1,251)(1)
Short-term borrowings, by original maturity:
More than three months - proceeds559  
More than three months - payments (396)
Three months or less, net647 53 
Cash dividends paid(1,505)(1,429)
Share repurchases - common(193)(106)
Proceeds from exercises of stock options49 62 
Withholding tax payments on restricted stock units (RSUs) and performance stock units (PSUs) converted(85)(71)
Other financing(1) 
Net Cash Used for Financing Activities(1,780)(1,888)
Effect of exchange rate changes on cash and cash equivalents and restricted cash(17)(10)
Net Increase/(Decrease) in Cash and Cash Equivalents and Restricted Cash984 (2,523)
Cash and Cash Equivalents and Restricted Cash, Beginning of Year5,707 8,254 
Cash and Cash Equivalents and Restricted Cash, End of Period$6,691 $5,731 
Supplemental Non-Cash Activity
Right-of-use assets obtained in exchange for lease obligations$100 $167 
See accompanying notes to the condensed consolidated financial statements.
6

Table of Contents    

Condensed Consolidated Balance Sheet
PepsiCo, Inc. and Subsidiaries
(in millions except per share amounts)
(Unaudited)
3/19/202212/25/2021
ASSETS
Current Assets
Cash and cash equivalents$6,561 $5,596 
Short-term investments343 392 
Accounts and notes receivable, less allowance: 3/22 - $192 and 12/21 - $147
9,424 8,680 
Inventories:
Raw materials and packaging2,017 1,898 
Work-in-process154 151 
Finished goods2,591 2,298 
4,762 4,347 
Prepaid expenses and other current assets1,252 980 
Assets held for sale 1,788 
Total Current Assets22,342 21,783 
Property, plant and equipment46,533 46,828 
Accumulated depreciation(24,516)(24,421)
Property, Plant and Equipment, net22,017 22,407 
Amortizable Intangible Assets, net1,497 1,538 
Goodwill18,112 18,381 
Other Indefinite-Lived Intangible Assets16,603 17,127 
Investments in Noncontrolled Affiliates3,595 2,627 
Deferred Income Taxes4,301 4,310 
Other Assets4,495 4,204 
Total Assets$92,962 $92,377 
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt obligations$5,459 $4,308 
Accounts payable and other current liabilities20,365 21,159 
Liabilities held for sale 753 
Total Current Liabilities25,824 26,220 
Long-Term Debt Obligations34,590 36,026 
Deferred Income Taxes5,072 4,826 
Other Liabilities9,156 9,154 
Total Liabilities74,642 76,226 
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: 1,384 and 1,383 shares, respectively)
23 23 
Capital in excess of par value3,893 4,001 
Retained earnings67,934 65,165 
Accumulated other comprehensive loss(15,343)(14,898)
Repurchased common stock, in excess of par value (483 and 484 shares, respectively)
(38,305)(38,248)
Total PepsiCo Common Shareholders’ Equity18,202 16,043 
Noncontrolling interests118 108 
Total Equity18,320 16,151 
Total Liabilities and Equity$92,962 $92,377 
See accompanying notes to the condensed consolidated financial statements.
7

Table of Contents    

Condensed Consolidated Statement of Equity
PepsiCo, Inc. and Subsidiaries
(in millions, except per share amounts, unaudited)
12 Weeks Ended
3/19/20223/20/2021
SharesAmountSharesAmount
Common Stock
Balance, beginning of period1,383 $23 1,380 $23 
Change in repurchased common stock1  2  
Balance, end of period1,384 23 1,382 23 
Capital in Excess of Par Value
Balance, beginning of period4,001 3,910 
Share-based compensation expense83 80 
Stock option exercises, RSUs and PSUs converted(106)(119)
Withholding tax on RSUs and PSUs converted(85)(71)
Balance, end of period3,893 3,800 
Retained Earnings
Balance, beginning of period65,165 63,443 
Net income attributable to PepsiCo4,261 1,714 
Cash dividends declared – common (a)
(1,492)(1,417)
Balance, end of period67,934 63,740 
Accumulated Other Comprehensive Loss
Balance, beginning of period(14,898)(15,476)
Other comprehensive (loss)/income attributable to PepsiCo(445)230 
Balance, end of period(15,343)(15,246)
Repurchased Common Stock
Balance, beginning of period(484)(38,248)(487)(38,446)
Share repurchases(1)(213)(1)(106)
Stock option exercises, RSUs and PSUs converted2 156 3 182 
Balance, end of period(483)(38,305)(485)(38,370)
Total PepsiCo Common Shareholders’ Equity18,202 13,947 
Noncontrolling Interests
Balance, beginning of period108 98 
Net income attributable to noncontrolling interest12 9 
Other, net(2)(1)
Balance, end of period118 106 
Total Equity$18,320 $14,053 
(a)Cash dividends declared per common share were $1.075 and $1.0225 for the 12 weeks ended March 19, 2022 and March 20, 2021, respectively.

See accompanying notes to the condensed consolidated financial statements.
8

Table of Contents    

Notes to the Condensed Consolidated Financial Statements
Note 1 - Basis of Presentation and Our Divisions
Basis of Presentation
When used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its consolidated subsidiaries, collectively.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the rules and regulations for reporting the Quarterly Report on Form 10-Q (Form 10-Q). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated balance sheet at December 25, 2021 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements have been prepared on a basis that is substantially consistent with the accounting principles applied in our Annual Report on Form 10-K for the fiscal year ended December 25, 2021 (2021 Form 10-K). This report should be read in conjunction with our 2021 Form 10-K. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation. The results for the 12 weeks ended March 19, 2022 are not necessarily indicative of the results expected for any future period or the full year.
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 reported on a monthly calendar basis prior to the fourth quarter of 2021. Beginning in the fourth quarter of 2021, all of our international operations reported on a monthly calendar basis. This change did not have a material impact on our condensed consolidated financial statements. For our international operations, the months of January and February are reflected in our results for the 12 weeks ended March 19, 2022.
The preparation of our condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and related disclosures. Additionally, the business and economic uncertainty resulting from the novel coronavirus (COVID-19) pandemic and the deadly conflict in Ukraine has made such estimates and assumptions more difficult to calculate. Accordingly, actual results and outcomes could differ from those estimates.
Our significant interim accounting policies include the recognition of a pro rata share of certain estimated annual sales incentives and certain advertising and marketing costs in proportion to revenue or volume, as applicable, and the recognition of income taxes using an estimated annual effective tax rate. Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw materials handling facilities, are included in cost of sales. The costs of moving, storing and delivering finished product, including merchandising activities, are included in selling, general and administrative expenses.
Unless otherwise noted, tabular dollars are in millions, except per share amounts. All per share amounts reflect common per share amounts, assume dilution unless otherwise noted, and are based on unrounded amounts. Certain reclassifications were made to the prior year’s financial statements to conform to the current year presentation.
Our Divisions
We are organized into seven reportable segments (also referred to as divisions), as follows:
1)Frito-Lay North America (FLNA), which includes our branded convenient food businesses in the United States and Canada;
9

Table of Contents    

2)Quaker Foods North America (QFNA), which includes our branded convenient food businesses, such as cereal, rice, pasta and other branded food, in the United States and Canada;
3)PepsiCo Beverages North America (PBNA), which includes our beverage businesses in the United States and Canada;
4)Latin America (LatAm), which includes all of our beverage and convenient food businesses in Latin America;
5)Europe, which includes all of our beverage and convenient food businesses in Europe;
6)Africa, Middle East and South Asia (AMESA), which includes all of our beverage and convenient food businesses in Africa, the Middle East and South Asia; and
7)Asia Pacific, Australia and New Zealand and China region (APAC), which includes all of our beverage and convenient food businesses in Asia Pacific, Australia and New Zealand, and China region.
Net revenue of each division is as follows:
12 Weeks Ended
3/19/20223/20/2021
FLNA$4,839 $4,236 
QFNA713 646 
PBNA5,353 5,074 
LatAm1,474 1,242 
Europe1,797 1,795 
AMESA1,004 883 
APAC1,020 944 
Total$16,200 $14,820 
Our primary performance obligation is the distribution and sales of beverage and convenient food products to our customers. The following tables reflect the approximate percentage of net revenue generated between our beverage business and our convenient food business for each of our international divisions, as well as our consolidated net revenue:
12 Weeks Ended
3/19/20223/20/2021
Beverages(a)
Convenient Foods
Beverages(a)
Convenient Foods
LatAm10 %90 %10 %90 %
Europe50 %50 %50 %50 %
AMESA30 %70 %30 %70 %
APAC15 %85 %15 %85 %
PepsiCo (b)
40 %60 %45 %55 %
(a)Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and Europe divisions, is approximately 35% and 40% of our consolidated net revenue in the 12 weeks ended March 19, 2022 and March 20, 2021, respectively. Generally, our finished goods beverage operations produce higher net revenue but lower operating margin as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.
(b)The decrease in the percentage of net revenue generated by our beverage business in the 12 weeks ended March 19, 2022 primarily reflects the Juice Transaction. See Note 11 for further information.

10

Table of Contents    

Operating profit of each division is as follows:
12 Weeks Ended
3/19/20223/20/2021
FLNA$1,296 $1,240 
QFNA159 150 
PBNA (a)
3,434 366 
LatAm323 218 
Europe (a) (b)
(136)131 
AMESA180 138 
APAC215 208 
Total divisions5,471 2,451 
Corporate unallocated expenses (c)
(204)(139)
Total$5,267 $2,312 
(a)In the 12 weeks ended March 19, 2022, we recorded a gain of $3.0 billion and $298 million in our PBNA and Europe divisions, respectively, associated with the Juice Transaction. The total after-tax amount was $2.9 billion or $2.06 per share. See Note 11 for further information.
(b)In the 12 weeks ended March 19, 2022, we recorded pre-tax impairment charges (Brand Portfolio Impairment Charges) of $241 million ($193 million after-tax or $0.14 per share) in selling, general and administrative expenses related to the discontinuation or repositioning of certain juice and dairy brands in Russia. See Note 3 for further information. Also see below for charges taken as a result of the Russia-Ukraine conflict.
(c)In the 12 weeks ended March 20, 2021, we recorded a pre-tax unrealized gain of $108 million ($82 million after-tax or $0.06 per share) on our short-term investment in a publicly traded company, based on the quoted active market price as of market close on March 19, 2021, the last trading day of our first quarter of 2021. The gain was recorded in selling, general and administrative expenses within corporate unallocated expenses. We sold all of these shares during the second quarter of 2021.
Operating profit includes certain pre-tax charges in our Europe division, taken as a result of the Russia-Ukraine conflict. These pre-tax charges are as follows:
12 Weeks Ended 3/19/2022
Impairment charges related to property, plant and equipment$123 
Allowance for expected credit losses37 
Inventory write-downs33 
Other48 
Total (a)
$241 
After-tax amount$241 
Impact on net income attributable to PepsiCo per common share$(0.17)
(a)Includes $140 million recorded in cost of sales and $101 million recorded in selling, general and administrative expenses.
11

Table of Contents    

Operating profit includes certain pre-tax charges taken as a result of the COVID-19 pandemic, primarily related to incremental employee compensation costs, such as certain leave benefits and labor costs, and employee protection costs. These pre-tax charges by division are as follows:
12 Weeks Ended
3/19/20223/20/2021
FLNA$14 $24 
QFNA1 2 
PBNA10 13 
LatAm6 15 
Europe1 6 
AMESA (a)
2 (1)
APAC2 2 
Total$36 $61 
(a)Income amount primarily relates to a true-up of inventory write-downs.
Note 2 - Restructuring and Impairment Charges
2019 Multi-Year Productivity Plan
We publicly announced a multi-year productivity plan on February 15, 2019 (2019 Productivity Plan) that will leverage new technology and business models to further simplify, harmonize and automate processes; re-engineer our go-to-market and information systems, including deploying the right automation for each market; and simplify our organization and optimize our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 2021, we expanded and extended the plan through the end of 2026 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $3.15 billion, including cash expenditures of approximately $2.4 billion. These pre-tax charges are expected to consist of approximately 55% of severance and other employee-related costs, 10% for asset impairments (all non-cash) resulting from plant closures and related actions, and 35% for other costs associated with the implementation of our initiatives.
The total expected plan pre-tax charges are expected to be incurred by division approximately as follows:
FLNAQFNAPBNALatAmEuropeAMESAAPACCorporate
Expected pre-tax charges15 %1 %25 %10 %25 %5 %4 %15 %
A summary of our 2019 Productivity Plan charges is as follows:
12 Weeks Ended
3/19/20223/20/2021
Cost of sales$5 $2 
Selling, general and administrative expenses 22 35 
Other pension and retiree medical benefits expense 6 
Total restructuring and impairment charges$27 $43 
After-tax amount$21 $35 
Impact on net income attributable to PepsiCo per common share$(0.02)$(0.03)
12

Table of Contents    

12 Weeks EndedPlan to Date
3/19/20223/20/2021
through 3/19/2022
FLNA $3 $15 $167 
QFNA  12 
PBNA3 4 161 
LatAm6 2 145 
Europe7 11 241 
AMESA 2 1 72 
APAC1  62 
Corporate5 4 144 
27 37 1,004 
Other pension and retiree medical benefits expense 6 67 
Total$27 $43 $1,071 
12 Weeks EndedPlan to Date
3/19/20223/20/2021
through 3/19/2022
Severance and other employee costs$11 $34 $575 
Asset impairments  157 
Other costs16 9 339 
Total$27 $43 $1,071 
Severance and other employee costs primarily include severance and other termination benefits, as well as voluntary separation arrangements. Other costs primarily include costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees.
A summary of our 2019 Productivity Plan activity for the 12 weeks ended March 19, 2022 is as follows:
Severance and Other Employee CostsOther CostsTotal
Liability as of December 25, 2021$64 $7 $71 
2022 restructuring charges
11 16 27 
Cash payments(16)(16)(32)
Liability as of March 19, 2022$59 $7 $66 
Substantially all of the restructuring accrual at March 19, 2022 is expected to be paid by the end of 2022.
Other Productivity Initiatives
There were no charges related to other productivity and efficiency initiatives outside the scope of the 2019 Productivity Plan.
We regularly evaluate different productivity initiatives beyond the productivity plan and other initiatives described above.
For information on other impairment charges, see Notes 1 and 3 for Brand Portfolio Impairment Charges and Note 1 for Russia-Ukraine Conflict Charges.
13

Table of Contents    

Note 3 - Intangible Assets    
During the 12 weeks ended March 19, 2022, we discontinued or repositioned certain juice and dairy brands in Russia in our Europe division. As a result, we recognized pre-tax impairment charges (Brand Portfolio Impairment Charges) of $241 million ($193 million after-tax or $0.14 per share) in selling, general and administrative expenses, primarily related to indefinite-lived intangible assets. In light of the current political and economic environment, we will continue to review and analyze our brand portfolio worldwide.
For further information on our policies for indefinite-lived intangible assets, refer to Note 2 to our consolidated financial statements in our 2021 Form 10-K.
A summary of our amortizable intangible assets is as follows:
3/19/202212/25/2021
GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Acquired franchise rights (a)
$975 $(189)$786 $976 $(187)$789 
Customer relationships608 (222)386 623 (227)396 
Brands
1,120 (984)136 1,151 (989)162 
Other identifiable intangibles450 (261)189 451 (260)191 
Total$3,153 $(1,656)$1,497 $3,201 $(1,663)$1,538 
(a)Acquired franchise rights includes our distribution agreement with Vital Pharmaceuticals, Inc., with an expected residual value higher than our carrying value. In the fourth quarter of 2020, we received notice of termination without cause, which would end our distribution rights, effective in the fourth quarter of 2023. The distribution agreement’s useful life is three years, in accordance with the three-year termination notice issued.

14

Table of Contents    

The change in the book value of indefinite-lived intangible assets is as follows:
Balance
12/25/2021
Translation
and Other
Balance
3/19/2022
FLNA
Goodwill$458 $2 $460 
Brands340  340 
Total798 2 800 
QFNA
Goodwill189  189 
Total189  189 
PBNA
Goodwill 11,974 6 11,980 
Reacquired franchise rights7,107 13 7,120 
Acquired franchise rights1,538 2 1,540 
Brands2,508  2,508 
Total23,127 21 23,148 
LatAm
Goodwill433 15 448 
Brands100 5 105 
Total533 20 553 
Europe (a)
Goodwill3,700 (308)3,392 
Reacquired franchise rights441 (36)405 
Acquired franchise rights 158 (2)156 
Brands4,254 (513)3,741 
Total8,553 (859)7,694 
AMESA
Goodwill1,063 16 1,079 
Brands205 6 211 
Total1,268 22 1,290 
APAC
Goodwill564  564 
Brands
476