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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| PepsiCo Inc | NASDAQ:PEP | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -1.15 | -0.68% | 166.95 | 165.25 | 168.50 | 169.35 | 166.03 | 169.21 | 5,133,183 | 05:00:00 |
|
☒
|
ANNUAL 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
|
|
North Carolina
|
|
13-1584302
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
|
(I.R.S. Employer Identification No.)
|
|
Title of each class
|
|
Trading Symbols
|
|
Name of each exchange on which registered
|
|
Common Stock, par value 1-2/3 cents per share
|
|
PEP
|
|
The Nasdaq Stock Market LLC
|
|
2.500% Senior Notes Due 2022
|
|
PEP22a
|
|
The Nasdaq Stock Market LLC
|
|
1.750% Senior Notes Due 2021
|
|
PEP21a
|
|
The Nasdaq Stock Market LLC
|
|
2.625% Senior Notes Due 2026
|
|
PEP26
|
|
The Nasdaq Stock Market LLC
|
|
0.875% Senior Notes Due 2028
|
|
PEP28
|
|
The Nasdaq Stock Market LLC
|
|
0.750% Senior Notes Due 2027
|
|
PEP27
|
|
The Nasdaq Stock Market LLC
|
|
1.125% Senior Notes Due 2031
|
|
PEP31
|
|
The Nasdaq Stock Market LLC
|
|
0.875% Senior Notes Due 2039
|
|
PEP39
|
|
The Nasdaq Stock Market LLC
|
|
Large accelerated filer
|
x
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
|
PART I
|
|
|
|
Item 1.
|
||
|
Item 1A.
|
||
|
Item 1B.
|
||
|
Item 2.
|
||
|
Item 3.
|
||
|
Item 4.
|
||
|
|
|
|
|
PART II
|
|
|
|
Item 5.
|
||
|
Item 6.
|
||
|
Item 7.
|
||
|
Item 7A.
|
||
|
Item 8.
|
||
|
Item 9.
|
||
|
Item 9A.
|
||
|
Item 9B.
|
||
|
|
|
|
|
PART III
|
|
|
|
Item 10.
|
||
|
Item 11.
|
||
|
Item 12.
|
||
|
Item 13.
|
||
|
Item 14.
|
||
|
|
|
|
|
PART IV
|
|
|
|
Item 15.
|
||
|
Item 16.
|
||
|
1)
|
FLNA, which includes our branded food and snack businesses in the United States and Canada;
|
|
2)
|
QFNA, which includes our cereal, rice, pasta and other branded food businesses in the United States and Canada;
|
|
3)
|
PBNA, which includes our beverage businesses in the United States and Canada;
|
|
4)
|
LatAm, which includes all of our beverage, food and snack businesses in Latin America;
|
|
5)
|
Europe, which includes all of our beverage, food and snack businesses in Europe;
|
|
6)
|
AMESA, which includes all of our beverage, food and snack businesses in Africa, the Middle East and South Asia; and
|
|
7)
|
APAC, which includes all of our beverage, food and snack businesses in Asia Pacific, Australia and New Zealand, and China region.
|
|
•
|
FLNA’s research and development facility in Plano, Texas, which is owned.
|
|
•
|
QFNA’s food plant in Cedar Rapids, Iowa, which is owned.
|
|
•
|
PBNA’s research and development facility in Valhalla, New York, and a Tropicana plant in Bradenton, Florida, both of which are owned.
|
|
•
|
LatAm’s three snack plants in Mexico (one in Celaya and two in Vallejo), all of which are owned.
|
|
•
|
Europe’s snack plant in Kashira, Russia, its dairy plant in Moscow, Russia, and its fruit juice plant in Zeebrugge, Belgium, all of which are owned.
|
|
•
|
AMESA’s snack plant in Riyadh, Saudi Arabia, which is leased.
|
|
•
|
APAC’s snack plant in Wuhan, China, which is owned.
|
|
•
|
Our primary concentrate plants in Cork, Ireland and in Singapore, all of which are either owned or leased. Our concentrate plants in Cork, Ireland are shared by our PBNA, Europe and AMESA segments and our concentrate plant in Singapore is shared by our PBNA and APAC segments.
|
|
•
|
A shared service center in Winston-Salem, North Carolina, which is primarily shared by our FLNA, QFNA and PBNA segments, which is leased.
|
|
Name
|
Age
|
Title
|
|
Marie T. Gallagher
|
60
|
Senior Vice President and Controller, PepsiCo
|
|
Hugh F. Johnston
|
58
|
Vice Chairman, PepsiCo; Executive Vice President and Chief Financial Officer, PepsiCo
|
|
Ramon L. Laguarta
|
56
|
Chairman of the Board of Directors and Chief Executive Officer, PepsiCo
|
|
Silviu Popovici
|
52
|
Chief Executive Officer, Europe
|
|
Paula Santilli
|
55
|
Chief Executive Officer, Latin America
|
|
Ronald Schellekens
|
55
|
Executive Vice President and Chief Human Resources Officer, PepsiCo
|
|
Kirk Tanner
|
51
|
Chief Executive Officer, PepsiCo Beverages North America
|
|
Eugene Willemsen
|
52
|
Chief Executive Officer, Africa, Middle East, South Asia
|
|
Steven Williams
|
54
|
Chief Executive Officer, PepsiCo Foods North America
|
|
David Yawman
|
51
|
Executive Vice President, Government Affairs, General Counsel and Corporate Secretary, PepsiCo
|
|
Period
|
Total
Number of
Shares
Repurchased(a)
|
|
Average
Price Paid
Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||
|
9/7/2019
|
|
|
|
|
|
|
$
|
11,783
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
|
9/8/2019 - 10/5/2019
|
1.5
|
|
|
$
|
135.74
|
|
|
1.5
|
|
|
(204
|
)
|
|
|
|
|
|
|
|
|
|
11,579
|
|
|||||
|
10/6/2019 - 11/2/2019
|
1.3
|
|
|
$
|
136.76
|
|
|
1.3
|
|
|
(170
|
)
|
|
|
|
|
|
|
|
|
|
11,409
|
|
|||||
|
11/3/2019 - 11/30/2019
|
1.5
|
|
|
$
|
133.90
|
|
|
1.5
|
|
|
(202
|
)
|
|
|
|
|
|
|
|
|
|
11,207
|
|
|||||
|
12/1/2019 - 12/28/2019
|
0.9
|
|
|
$
|
136.52
|
|
|
0.9
|
|
|
(123
|
)
|
|
|
Total
|
5.2
|
|
|
$
|
135.58
|
|
|
5.2
|
|
|
$
|
11,084
|
|
|
(a)
|
All shares were repurchased in open market transactions pursuant to the $15 billion repurchase program authorized by our Board of Directors and publicly announced on February 13, 2018, which commenced on July 1, 2018 and will expire on June 30, 2021. Shares repurchased under this program may be repurchased in open market transactions, in privately negotiated transactions, in accelerated stock repurchase transactions or otherwise.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||||
|
Net revenue (a)
|
$
|
67,161
|
|
|
$
|
64,661
|
|
|
$
|
63,525
|
|
|
$
|
62,799
|
|
|
$
|
63,056
|
|
|
Operating profit
|
$
|
10,291
|
|
|
$
|
10,110
|
|
|
$
|
10,276
|
|
|
$
|
9,804
|
|
|
$
|
8,274
|
|
|
Provision for/(benefit from) income taxes (b)
|
$
|
1,959
|
|
|
$
|
(3,370
|
)
|
|
$
|
4,694
|
|
|
$
|
2,174
|
|
|
$
|
1,941
|
|
|
Net income attributable to PepsiCo (b)
|
$
|
7,314
|
|
|
$
|
12,515
|
|
|
$
|
4,857
|
|
|
$
|
6,329
|
|
|
$
|
5,452
|
|
|
Net income attributable to PepsiCo per common share – basic (b)
|
$
|
5.23
|
|
|
$
|
8.84
|
|
|
$
|
3.40
|
|
|
$
|
4.39
|
|
|
$
|
3.71
|
|
|
Net income attributable to PepsiCo per common share – diluted (b)
|
$
|
5.20
|
|
|
$
|
8.78
|
|
|
$
|
3.38
|
|
|
$
|
4.36
|
|
|
$
|
3.67
|
|
|
Cash dividends declared per common share
|
$
|
3.7925
|
|
|
$
|
3.5875
|
|
|
$
|
3.1675
|
|
|
$
|
2.96
|
|
|
$
|
2.7625
|
|
|
Total assets (c)
|
$
|
78,547
|
|
|
$
|
77,648
|
|
|
$
|
79,804
|
|
|
$
|
73,490
|
|
|
$
|
68,976
|
|
|
Long-term debt obligations
|
$
|
29,148
|
|
|
$
|
28,295
|
|
|
$
|
33,796
|
|
|
$
|
30,053
|
|
|
$
|
29,213
|
|
|
(a)
|
Our 2016 results included an extra week of results (53rd reporting week). The 53rd reporting week increased 2016 net revenue by $657 million, including $294 million in our FLNA segment, $43 million in our QFNA segment, $300 million in our PBNA segment and $20 million in our Europe segment.
|
|
(b)
|
Our 2019, 2018 and 2017 results included the impact of the TCJ Act. Additionally, our 2018 results included other net tax benefits related to the reorganization of our international operations. See Note 5 to our consolidated financial statements for further information.
|
|
(c)
|
During the first quarter of 2019, we prospectively adopted the guidance requiring lessees to recognize most leases on the balance sheet. See Note 2 and Note 13 to our consolidated financial statements for further information.
|
|
|
2019
|
||||||||||||||||||||||
|
|
Operating profit
|
|
Other pension and retiree medical benefits expense
|
|
(Provision for)/benefit from income taxes(d)
|
|
Net income attributable to noncontrolling interests
|
|
Net income attributable to PepsiCo
|
|
Net income attributable to PepsiCo per common share – diluted
|
||||||||||||
|
Mark-to-market net impact (e)
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
—
|
|
|
$
|
87
|
|
|
$
|
0.06
|
|
|
Restructuring and impairment charges (f)
|
$
|
(368
|
)
|
|
$
|
(2
|
)
|
|
$
|
67
|
|
|
$
|
5
|
|
|
$
|
(298
|
)
|
|
$
|
(0.21
|
)
|
|
Inventory fair value adjustments and merger and integration charges (g)
|
$
|
(55
|
)
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(47
|
)
|
|
$
|
(0.03
|
)
|
|
Pension-related settlement charges (h)
|
$
|
—
|
|
|
$
|
(273
|
)
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
(211
|
)
|
|
$
|
(0.15
|
)
|
|
Net tax related to the TCJ Act (i)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
0.01
|
|
|
Gains on sales of assets (j)
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
(19
|
)
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
0.04
|
|
|
|
2018
|
||||||||||||||||||||||||||
|
|
Operating profit
|
|
Other pension and retiree medical benefits income
|
|
Interest expense
|
|
Benefit from/(provision for) income taxes(d)
|
|
Net income attributable to noncontrolling interests
|
|
Net income attributable to PepsiCo
|
|
Net income attributable to PepsiCo per common share – diluted
|
||||||||||||||
|
Mark-to-market net impact (e)
|
$
|
(163
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
(125
|
)
|
|
$
|
(0.09
|
)
|
|
Restructuring and impairment charges (f)
|
$
|
(272
|
)
|
|
$
|
(36
|
)
|
|
$
|
—
|
|
|
$
|
56
|
|
|
$
|
1
|
|
|
$
|
(251
|
)
|
|
$
|
(0.18
|
)
|
|
Merger and integration charges (g)
|
$
|
(75
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(75
|
)
|
|
$
|
(0.05
|
)
|
|
Net tax related to the TCJ Act (i)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
0.02
|
|
|
Other net tax benefits (k)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,064
|
|
|
$
|
—
|
|
|
$
|
5,064
|
|
|
$
|
3.55
|
|
|
Charges related to cash tender and exchange offers (l)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(253
|
)
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
(191
|
)
|
|
$
|
(0.13
|
)
|
|
Tax reform bonus (m)
|
$
|
(87
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
(66
|
)
|
|
$
|
(0.05
|
)
|
|
Gains on beverage refranchising (n)
|
$
|
202
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(30
|
)
|
|
$
|
—
|
|
|
$
|
172
|
|
|
$
|
0.12
|
|
|
Gains on sale of assets (j)
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(19
|
)
|
|
$
|
—
|
|
|
$
|
57
|
|
|
$
|
0.04
|
|
|
|
2017
|
||||||||||||||||||
|
|
Operating profit
|
|
Other pension and retiree medical benefits income
|
|
(Provision for)/benefit from income taxes(d)
|
|
Net income attributable to PepsiCo
|
|
Net income attributable to PepsiCo per common share – diluted
|
||||||||||
|
Mark-to-market net impact (e)
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
$
|
8
|
|
|
$
|
0.01
|
|
|
Restructuring and impairment charges (f)
|
$
|
(229
|
)
|
|
$
|
(66
|
)
|
|
$
|
71
|
|
|
$
|
(224
|
)
|
|
$
|
(0.16
|
)
|
|
Provisional net tax related to the TCJ Act (i)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,451
|
)
|
|
$
|
(2,451
|
)
|
|
$
|
(1.70
|
)
|
|
Gain on sale of Britvic plc (Britvic) securities (o)
|
$
|
95
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
85
|
|
|
$
|
0.06
|
|
|
Gain on beverage refranchising (n)
|
$
|
140
|
|
|
$
|
—
|
|
|
$
|
(33
|
)
|
|
$
|
107
|
|
|
$
|
0.07
|
|
|
Gain on sale of assets (j)
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
62
|
|
|
$
|
0.04
|
|
|
|
2016
|
||||||||||||||||||||||||||
|
|
Operating profit
|
|
Other pension and retiree medical benefits expense
|
|
Interest expense
|
|
(Provision for)/benefit from income taxes(d)
|
|
Net income attributable to noncontrolling interests
|
|
Net income attributable to PepsiCo
|
|
Net income attributable to PepsiCo per common share – diluted
|
||||||||||||||
|
Mark-to-market net impact (e)
|
$
|
167
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(56
|
)
|
|
$
|
—
|
|
|
$
|
111
|
|
|
$
|
0.08
|
|
|
Restructuring and impairment charges (f)
|
$
|
(155
|
)
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
3
|
|
|
$
|
(131
|
)
|
|
$
|
(0.09
|
)
|
|
Charge related to the transaction with Tingyi (p)
|
$
|
(373
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(373
|
)
|
|
$
|
(0.26
|
)
|
|
Charge related to debt
redemption (l)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(233
|
)
|
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
(156
|
)
|
|
$
|
(0.11
|
)
|
|
Pension-related settlement charge (h)
|
$
|
—
|
|
|
$
|
(242
|
)
|
|
$
|
—
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
(162
|
)
|
|
$
|
(0.11
|
)
|
|
53rd reporting week (q)
|
$
|
126
|
|
|
$
|
—
|
|
|
$
|
(19
|
)
|
|
$
|
(44
|
)
|
|
$
|
(1
|
)
|
|
$
|
62
|
|
|
$
|
0.04
|
|
|
|
2015
|
||||||||||||||||||
|
|
Operating profit
|
|
Other pension and retiree medical benefits income
|
|
(Provision for)/benefit from income taxes(d)
|
|
Net income attributable to PepsiCo
|
|
Net income attributable to PepsiCo per common share – diluted
|
||||||||||
|
Mark-to-market net impact (e)
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
8
|
|
|
$
|
—
|
|
|
Restructuring and impairment charges (f)
|
$
|
(207
|
)
|
|
$
|
(23
|
)
|
|
$
|
46
|
|
|
$
|
(184
|
)
|
|
$
|
(0.12
|
)
|
|
Charge related to the transaction with Tingyi (p)
|
$
|
(73
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(73
|
)
|
|
$
|
(0.05
|
)
|
|
Pension-related settlement benefits (h)
|
$
|
67
|
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
42
|
|
|
$
|
0.03
|
|
|
Venezuela impairment charges (r)
|
$
|
(1,359
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,359
|
)
|
|
$
|
(0.91
|
)
|
|
Tax benefit (k)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
230
|
|
|
$
|
230
|
|
|
$
|
0.15
|
|
|
Müller Quaker Dairy (MQD) impairment (s)
|
$
|
(76
|
)
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
(48
|
)
|
|
$
|
(0.03
|
)
|
|
Gain on beverage refranchising (n)
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
(11
|
)
|
|
$
|
28
|
|
|
$
|
0.02
|
|
|
Other productivity initiatives (t)
|
$
|
(90
|
)
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
(66
|
)
|
|
$
|
(0.04
|
)
|
|
Joint venture impairment charge (u)
|
$
|
(29
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(29
|
)
|
|
$
|
(0.02
|
)
|
|
(d)
|
Provision for/benefit from income taxes is the expected tax charge/benefit on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax jurisdiction and tax year.
|
|
(e)
|
Mark-to-market net gains and losses on commodity derivatives in corporate unallocated expenses.
|
|
(f)
|
Expenses related to the 2019 Multi-Year Productivity Plan (2019 Productivity Plan), 2014 Multi-Year Productivity Plan (2014 Productivity Plan) and 2012 Multi-Year Productivity Plan (2012 Productivity Plan). See Note 3 to our consolidated financial statements for further discussion of our 2019 and 2014 Productivity Plans.
|
|
(g)
|
In 2019, inventory fair value adjustments and merger and integration charges primarily related to our acquisition of SodaStream. $46 million of this charge was recorded in our Europe segment, $7 million in our AMESA segment and $2 million in corporate unallocated expenses. In 2018, merger and integration charges related to our acquisition of SodaStream. $57 million of this charge was recorded in our Europe segment, with the balance recorded in corporate unallocated expenses. See Note 14 to our consolidated financial statements for further information.
|
|
(h)
|
In 2019, pension settlement charges of $220 million related to the purchase of a group annuity contract and settlement charges of $53 million related to one-time lump sum payments to certain former employees who had vested benefits, recorded in other pension and retiree medical benefits expense/income. See Note 7 to our consolidated financial statements for further information. In 2016, pension settlement charge related to the purchase of a group annuity contract. In 2015, benefits in the PBNA segment associated with the settlement of pension-related liabilities from previous acquisitions.
|
|
(i)
|
In 2019, 2018 and 2017, net tax related to the TCJ Act. See Note 5 to our consolidated financial statements for further information.
|
|
(j)
|
In 2019, gains associated with the sale of assets in the following segments: $31 million in FLNA and $46 million in PBNA. In 2018, gains associated with the sale of assets in the following segments: $64 million in PBNA and $12 million in AMESA. In 2017, gains associated with the sale of assets in the following segments: $17 million in FLNA, $21 million in PBNA, $21 million in AMESA and $28 million in corporate unallocated expenses.
|
|
(k)
|
In 2018, other net tax benefits of $4.3 billion resulting from the reorganization of our international operations, including the intercompany transfer of certain intangible assets. Also in 2018, non-cash tax benefits of $717 million associated with both the conclusion of certain international tax audits and our agreement with the IRS resolving all open matters related to the audits of taxable years 2012 and 2013. See Note 5 to our consolidated financial statements for further information. In 2015, non-cash tax benefit associated with our agreement with the IRS resolving substantially all open matters related to the audits for taxable years 2010 through 2011, which reduced our reserve for uncertain tax positions for the tax years 2010 through 2011.
|
|
(l)
|
In 2018, interest expense in connection with our cash tender and exchange offers, primarily representing the tender price paid over the carrying value of the tendered notes. See Note 8 to our consolidated financial statements for further information. In 2016, interest expense primarily representing the premium paid in accordance with the “make-whole” redemption provisions to redeem all of our outstanding 7.900% senior notes due 2018 and 5.125% senior notes due 2019 for the principal amounts of $1.5 billion and $750 million, respectively.
|
|
(m)
|
In 2018, bonus extended to certain U.S. employees related to the TCJ Act in the following segments: $44 million in FLNA, $2 million in QFNA and $41 million in PBNA.
|
|
(n)
|
In 2018, gains of $58 million and $144 million associated with refranchising our entire beverage bottling operations and snack distribution operations in Czech Republic, Hungary and Slovakia (CHS) in the Europe segment and refranchising a portion of our beverage business in Thailand in the APAC segment, respectively. In 2017, gain in the AMESA segment associated with refranchising a portion of our beverage business in Jordan. See Note 14 to our consolidated financial statements. In 2015, gain in the AMESA segment associated with refranchising a portion of our beverage businesses in India.
|
|
(o)
|
In 2017, gain in the Europe segment associated with the sale of our minority stake in Britvic.
|
|
(p)
|
In 2016, impairment charge in the APAC segment to reduce the value of our 5% indirect equity interest in KSF Beverage Holding Co., Ltd. (KSFB), formerly known as Tingyi-Asahi Beverages Holding Co. Ltd., to its estimated fair value. In 2015, write-off in the APAC segment of the value of a call option to increase our holding in KSFB to 20%.
|
|
(q)
|
Our 2016 results included the 53rd reporting week, the impact of which was fully offset by incremental investments in our business.
|
|
(r)
|
In 2015, charges in the LatAm segment related to the impairment of investments in our wholly-owned Venezuelan subsidiaries and beverage joint venture. Beginning in the fourth quarter of 2015, our financial results have not included the results of our Venezuelan businesses.
|
|
(s)
|
In 2015, impairment charges in the QFNA segment associated with our MQD joint venture investment, including a charge related to ceasing its operations.
|
|
(t)
|
In 2015, expenses related to other productivity initiatives outside the scope of the 2014 and 2012 Productivity Plans.
|
|
(u)
|
In 2015, impairment charge in the AMESA segment associated with a joint venture in the Middle East.
|
|
•
|
Faster by winning in the marketplace, being more consumer-centric and accelerating investment for topline growth. This includes broadening our portfolios to win locally in convenient foods and beverages, fortifying our North American businesses, and accelerating our international expansion, with disciplined focus on markets where we see a strong likelihood of prevailing over our competition.
|
|
•
|
Stronger by continuing to transform our capabilities, cost, and culture by leveraging scale and technology in global markets across our operations and winning locally. This includes continuing to focus on driving savings through holistic cost management to reinvest to succeed in the marketplace, developing and scaling core capabilities through technology, and building differentiated talent and culture.
|
|
•
|
Better by continuing to focus our sustainability agenda on helping to build a more sustainable food system and investing in six priority areas: next generation agriculture, water stewardship, plastic packaging, products, climate change, and people.
|
|
•
|
PepsiCo’s Board of Directors has oversight responsibility for PepsiCo’s integrated risk management framework. One of the Board’s primary responsibilities is overseeing and interacting with senior management with respect to key aspects of the Company’s business, including risk assessment and risk mitigation of the Company’s top risks. The Board receives updates on key risks throughout the year, including risks related to cybersecurity. In addition, the Board has tasked designated Committees of the Board with oversight of certain categories of risk management, and the Committees report to the Board regularly on these matters.
|
|
◦
|
The Audit Committee of the Board reviews and assesses the guidelines and policies governing PepsiCo’s risk management and oversight processes, and assists the Board’s oversight of financial, compliance and employee safety risks facing PepsiCo;
|
|
◦
|
The Compensation Committee of the Board reviews PepsiCo’s employee compensation policies and practices to assess whether such policies and practices could lead to unnecessary risk-taking behavior;
|
|
◦
|
The Nominating and Corporate Governance Committee assists the Board in its oversight of the Company’s governance structure and other corporate governance matters, including succession planning; and
|
|
◦
|
The Public Policy and Sustainability Committee of the Board assists the Board in its oversight of PepsiCo’s policies, programs and related risks that concern key sustainability and public policy matters.
|
|
•
|
The PepsiCo Risk Committee (PRC), which is comprised of a cross-functional, geographically diverse, senior management group, including PepsiCo’s Chairman of the Board and Chief Executive Officer, meets regularly to identify, assess, prioritize and address top strategic, financial, operating, compliance, safety, reputational and other risks. The PRC is also responsible for reporting progress on our risk mitigation efforts to the Board;
|
|
•
|
Division and key country risk committees, comprised of cross-functional senior management teams, meet regularly to identify, assess, prioritize and address division and country-specific business risks;
|
|
•
|
PepsiCo’s Risk Management Office, which manages the overall risk management process, provides ongoing guidance, tools and analytical support to the PRC and the division and key country risk committees, identifies and assesses potential risks and facilitates ongoing communication between
|
|
•
|
PepsiCo’s Corporate Audit Department evaluates the ongoing effectiveness of our key internal controls through periodic audit and review procedures; and
|
|
•
|
PepsiCo’s Compliance & Ethics and Law Departments lead and coordinate our compliance policies and practices.
|
|
•
|
commodity prices, affecting the cost of our raw materials and energy;
|
|
•
|
foreign exchange rates and currency restrictions; and
|
|
•
|
interest rates.
|
|
|
|
|
|
|
|
|
Change
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
||||||||
|
Net revenue
|
$
|
67,161
|
|
|
$
|
64,661
|
|
|
$
|
63,525
|
|
|
4
|
%
|
|
2
|
%
|
|
Operating profit
|
$
|
10,291
|
|
|
$
|
10,110
|
|
|
$
|
10,276
|
|
|
2
|
%
|
|
(2
|
)%
|
|
Operating profit margin
|
15.3
|
%
|
|
15.6
|
%
|
|
16.2
|
%
|
|
(0.3
|
)
|
|
(0.5
|
)
|
|||
|
|
2019
|
||||||||||||||
|
|
|
|
Impact of
|
|
|
|
Impact of
|
||||||||
|
|
Reported
% Change, GAAP Measure
|
|
Foreign exchange translation
|
|
Acquisitions and divestitures
|
|
Organic
% Change, Non-GAAP Measure(a)
|
|
Volume(b)
|
|
Effective net pricing
|
||||
|
FLNA
|
4.5
|
%
|
|
—
|
|
—
|
|
|
4.5
|
%
|
|
2
|
|
|
3
|
|
QFNA
|
1
|
%
|
|
—
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
1
|
|
PBNA
|
3
|
%
|
|
—
|
|
(1
|
)
|
|
3
|
%
|
|
(1
|
)
|
|
4
|
|
LatAm
|
3
|
%
|
|
4
|
|
—
|
|
|
7
|
%
|
|
—
|
|
|
7
|
|
Europe
|
7
|
%
|
|
5
|
|
(6
|
)
|
|
5.5
|
%
|
|
(1
|
)
|
|
6
|
|
AMESA
|
—
|
%
|
|
2
|
|
4
|
|
|
6
|
%
|
|
4
|
|
|
2.5
|
|
APAC
|
4.5
|
%
|
|
3
|
|
2
|
|
|
9
|
%
|
|
7
|
|
|
2
|
|
Total
|
4
|
%
|
|
2
|
|
(1
|
)
|
|
4.5
|
%
|
|
0.5
|
|
|
4
|
|
|
2018
|
||||||||||||||||||
|
|
|
|
Impact of
|
|
|
|
Impact of
|
||||||||||||
|
|
Reported
% Change, GAAP Measure
|
|
Foreign exchange translation
|
|
Acquisitions and divestitures
|
|
Sales and certain other taxes
|
|
Organic
% Change, Non-GAAP Measure(a)
|
|
Volume(b)
|
|
Effective net pricing
|
||||||
|
FLNA
|
3.5
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
3
|
%
|
|
1
|
|
|
2
|
|
|
QFNA
|
(1.5
|
)%
|
|
—
|
|
|
—
|
|
|
—
|
|
(2
|
)%
|
|
(0.5
|
)
|
|
(1
|
)
|
|
PBNA
|
1
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
0.5
|
%
|
|
(1
|
)
|
|
2
|
|
|
LatAm
|
2
|
%
|
|
6
|
|
|
—
|
|
|
—
|
|
8
|
%
|
|
1
|
|
|
7
|
|
|
Europe
|
4
|
%
|
|
2
|
|
|
—
|
|
|
0.5
|
|
7
|
%
|
|
5
|
|
|
3
|
|
|
AMESA
|
(0.5
|
)%
|
|
2
|
|
|
4
|
|
|
—
|
|
5
|
%
|
|
1.5
|
|
|
4
|
|
|
APAC
|
(3
|
)%
|
|
(1
|
)
|
|
11
|
|
|
0.5
|
|
8
|
%
|
|
6
|
|
|
2
|
|
|
Total
|
2
|
%
|
|
1
|
|
|
1
|
|
|
—
|
|
4
|
%
|
|
1
|
|
|
3
|
|
|
(a)
|
Amounts may not sum due to rounding.
|
|
(b)
|
Excludes the impact of acquisitions and divestitures. In certain instances, volume growth varies from the amounts disclosed in the following divisional discussions due to nonconsolidated joint venture volume, and, for our beverage businesses, temporary timing differences between BCS and CSE, as well as the mix of beverage volume sold by our company-owned and franchise-owned bottlers. Our net revenue excludes nonconsolidated joint venture volume, and, for our franchise-owned beverage businesses, is based on CSE.
|
|
|
2019
|
||||||||||||||||||
|
|
|
|
Items Affecting Comparability(a)
|
|
|
||||||||||||||
|
|
Reported, GAAP Measure
|
|
Mark-to-market net impact
|
|
Restructuring and impairment charges
|
|
Inventory fair value adjustments and merger and integration charges
|
|
Core,
Non-GAAP Measure
|
||||||||||
|
FLNA
|
$
|
5,258
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
5,280
|
|
|
QFNA
|
544
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
546
|
|
|||||
|
PBNA
|
2,179
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
2,230
|
|
|||||
|
LatAm
|
1,141
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
1,203
|
|
|||||
|
Europe
|
1,327
|
|
|
—
|
|
|
99
|
|
|
46
|
|
|
1,472
|
|
|||||
|
AMESA
|
671
|
|
|
—
|
|
|
38
|
|
|
7
|
|
|
716
|
|
|||||
|
APAC
|
477
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
524
|
|
|||||
|
Corporate unallocated expenses
|
(1,306
|
)
|
|
(112
|
)
|
|
47
|
|
|
2
|
|
|
(1,369
|
)
|
|||||
|
Total
|
$
|
10,291
|
|
|
$
|
(112
|
)
|
|
$
|
368
|
|
|
$
|
55
|
|
|
$
|
10,602
|
|
|
|
2018
|
||||||||||||||||||
|
|
|
|
Items Affecting Comparability(a)
|
|
|
||||||||||||||
|
|
Reported,
GAAP Measure
|
|
Mark-to-market net impact
|
|
Restructuring and impairment charges
|
|
Merger and integration charges
|
|
Core,
Non-GAAP Measure
|
||||||||||
|
FLNA
|
$
|
5,008
|
|
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
5,044
|
|
|
QFNA
|
637
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
644
|
|
|||||
|
PBNA
|
2,276
|
|
|
—
|
|
|
88
|
|
|
—
|
|
|
2,364
|
|
|||||
|
LatAm
|
1,049
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
1,089
|
|
|||||
|
Europe
|
1,256
|
|
|
—
|
|
|
59
|
|
|
57
|
|
|
1,372
|
|
|||||
|
AMESA
|
661
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
679
|
|
|||||
|
APAC
|
619
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
633
|
|
|||||
|
Corporate unallocated expenses
|
(1,396
|
)
|
|
163
|
|
|
10
|
|
|
18
|
|
|
(1,205
|
)
|
|||||
|
Total
|
$
|
10,110
|
|
|
$
|
163
|
|
|
$
|
272
|
|
|
$
|
75
|
|
|
$
|
10,620
|
|
|
|
2017
|
||||||||||||||
|
|
|
|
Items Affecting Comparability(a)
|
|
|
||||||||||
|
|
Reported,
GAAP Measure
|
|
Mark-to-market net impact
|
|
Restructuring and impairment charges
|
|
Core,
Non-GAAP Measure
|
||||||||
|
FLNA
|
$
|
4,793
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
4,847
|
|
|
QFNA
|
640
|
|
|
—
|
|
|
9
|
|
|
649
|
|
||||
|
PBNA
|
2,700
|
|
|
—
|
|
|
43
|
|
|
2,743
|
|
||||
|
LatAm
|
924
|
|
|
—
|
|
|
56
|
|
|
980
|
|
||||
|
Europe
|
1,199
|
|
|
—
|
|
|
53
|
|
|
1,252
|
|
||||
|
AMESA
|
789
|
|
|
—
|
|
|
2
|
|
|
791
|
|
||||
|
APAC
|
401
|
|
|
—
|
|
|
(5
|
)
|
|
396
|
|
||||
|
Corporate unallocated expenses
|
(1,170
|
)
|
|
(15
|
)
|
|
17
|
|
|
(1,168
|
)
|
||||
|
Total
|
$
|
10,276
|
|
|
$
|
(15
|
)
|
|
$
|
229
|
|
|
$
|
10,490
|
|
|
(a)
|
See “Items Affecting Comparability.”
|
|
|
2019
|
||||||||||||||||||
|
|
|
|
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
|
5
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
%
|
|
—
|
|
5
|
%
|
|
QFNA
|
(15
|
)%
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
(15
|
)%
|
|
—
|
|
(15
|
)%
|
|
PBNA
|
(4
|
)%
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(6
|
)%
|
|
—
|
|
(6
|
)%
|
|
LatAm
|
9
|
%
|
|
—
|
|
|
2
|
|
|
—
|
|
|
10
|
%
|
|
2
|
|
13
|
%
|
|
Europe
|
6
|
%
|
|
—
|
|
|
2
|
|
|
(1
|
)
|
|
7
|
%
|
|
5
|
|
13
|
%
|
|
AMESA
|
1.5
|
%
|
|
—
|
|
|
3
|
|
|
1
|
|
|
5.5
|
%
|
|
2.5
|
|
8
|
%
|
|
APAC
|
(23
|
)%
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(17
|
)%
|
|
2
|
|
(16
|
)%
|
|
Corporate unallocated expenses
|
(6
|
)%
|
|
22
|
|
|
(3
|
)
|
|
1
|
|
|
14
|
%
|
|
—
|
|
14
|
%
|
|
Total
|
2
|
%
|
|
(3
|
)
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|
1
|
|
1
|
%
|
|
|
2018
|
|||||||||||||||||||
|
|
|
|
Impact of Items Affecting Comparability(a)
|
|
|
|
Impact of
|
|
|
|||||||||||
|
|
Reported
% Change, GAAP Measure
|
|
Mark-to-market net impact
|
|
Restructuring
and impairment charges
|
|
Merger and integration charges
|
|
Core
% Change, Non-GAAP Measure(b)
|
|
Foreign exchange
translation
|
|
Core Constant Currency
% Change, Non-GAAP Measure(b)
|
|||||||
|
FLNA
|
4.5
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
%
|
|
—
|
|
|
4
|
%
|
|
QFNA
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)%
|
|
—
|
|
|
(1
|
)%
|
|
PBNA
|
(16
|
)%
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(14
|
)%
|
|
—
|
|
|
(14
|
)%
|
|
LatAm
|
13
|
%
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
11
|
%
|
|
2
|
|
|
13
|
%
|
|
Europe
|
5
|
%
|
|
—
|
|
|
—
|
|
|
4
|
|
|
10
|
%
|
|
3
|
|
|
13
|
%
|
|
AMESA
|
(16
|
)%
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(14
|
)%
|
|
—
|
|
|
(14
|
)%
|
|
APAC
|
54
|
%
|
|
—
|
|
|
5
|
|
|
—
|
|
|
60
|
%
|
|
(2
|
)
|
|
58
|
%
|
|
Corporate unallocated expenses
|
19
|
%
|
|
(15
|
)
|
|
1
|
|
|
(1.5
|
)
|
|
3
|
%
|
|
—
|
|
|
3
|
%
|
|
Total
|
(2
|
)%
|
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
%
|
|
0.5
|
|
|
2
|
%
|
|
(a)
|
See “Items Affecting Comparability” for further information.
|
|
(b)
|
Amounts may not sum due to rounding.
|
|
|
|
|
|
|
|
|
Change
|
||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
||||||||||
|
Other pension and retiree medical benefits (expense)/income
|
$
|
(44
|
)
|
|
$
|
298
|
|
|
$
|
233
|
|
|
$
|
(342
|
)
|
|
$
|
65
|
|
|
Net interest expense
|
$
|
(935
|
)
|
|
$
|
(1,219
|
)
|
|
$
|
(907
|
)
|
|
$
|
284
|
|
|
$
|
(312
|
)
|
|
Annual tax rate (a)
|
21.0
|
%
|
|
(36.7
|
)%
|
|
48.9
|
%
|
|
|
|
|
|||||||
|
Net income attributable to PepsiCo
|
$
|
7,314
|
|
|
$
|
12,515
|
|
|
$
|
4,857
|
|
|
(42
|
)%
|
|
158
|
%
|
||
|
Net income attributable to PepsiCo per common share – diluted
|
$
|
5.20
|
|
|
$
|
8.78
|
|
|
$
|
3.38
|
|
|
(41
|
)%
|
|
160
|
%
|
||
|
Mark-to-market net impact
|
(0.06
|
)
|
|
0.09
|
|
|
(0.01
|
)
|
|
|
|
|
|||||||
|
Restructuring and impairment charges
|
0.21
|
|
|
0.18
|
|
|
0.16
|
|
|
|
|
|
|||||||
|
Inventory fair value adjustments and merger and integration charges
|
0.03
|
|
|
0.05
|
|
|
—
|
|
|
|
|
|
|||||||
|
Pension-related settlement charges
|
0.15
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||
|
Net tax related to the TCJ Act (a)
|
(0.01
|
)
|
|
(0.02
|
)
|
|
1.70
|
|
|
|
|
|
|||||||
|
Other net tax benefits (a)
|
—
|
|
|
(3.55
|
)
|
|
—
|
|
|
|
|
|
|||||||
|
Charges related to cash tender and exchange offers
|
—
|
|
|
0.13
|
|
|
—
|
|
|
|
|
|
|||||||
|
Net income attributable to PepsiCo per common share – diluted, excluding above items (b)
|
$
|
5.53
|
|
(c)
|
$
|
5.66
|
|
|
$
|
5.23
|
|
|
(2
|
)%
|
|
8
|
%
|
||
|
Impact of foreign exchange translation
|
|
|
|
|
|
|
1
|
|
|
1
|
|
||||||||
|
Growth in net income attributable to PepsiCo per common share – diluted, excluding above items, on a constant currency basis (b)
|
|
|
|
|
|
|
(1
|
)%
|
|
9
|
%
|
||||||||
|
(a)
|
See Note 5 to our consolidated financial statements for further information.
|
|
(b)
|
See “Non-GAAP Measures.”
|
|
(c)
|
Does not sum due to rounding.
|
|
|
2019
|
||||||||||||||||||||||||||||||
|
|
Cost of sales
|
|
Gross profit
|
|
Selling, general and administrative expenses
|
|
Operating profit
|
|
Other pension and retiree medical benefits (expense)/income
|
|
Provision for income taxes(a)
|
|
Net income attributable to noncontrolling interests
|
|
Net income attributable to PepsiCo
|
||||||||||||||||
|
Reported, GAAP Measure
|
$
|
30,132
|
|
|
$
|
37,029
|
|
|
$
|
26,738
|
|
|
$
|
10,291
|
|
|
$
|
(44
|
)
|
|
$
|
1,959
|
|
|
$
|
39
|
|
|
$
|
7,314
|
|
|
Items Affecting Comparability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Mark-to-market net impact
|
57
|
|
|
(57
|
)
|
|
55
|
|
|
(112
|
)
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(87
|
)
|
||||||||
|
Restructuring and impairment charges
|
(115
|
)
|
|
115
|
|
|
(253
|
)
|
|
368
|
|
|
2
|
|
|
67
|
|
|
5
|
|
|
298
|
|
||||||||
|
Inventory fair value adjustments and merger and integration charges
|
(34
|
)
|
|
34
|
|
|
(21
|
)
|
|
55
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
47
|
|
||||||||
|
Pension-related settlement charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
273
|
|
|
62
|
|
|
—
|
|
|
211
|
|
||||||||
|
Net tax related to the TCJ Act
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
(8
|
)
|
||||||||
|
Core, Non-GAAP Measure
|
$
|
30,040
|
|
|
$
|
37,121
|
|
|
$
|
26,519
|
|
|
$
|
10,602
|
|
|
$
|
231
|
|
|
$
|
2,079
|
|
|
$
|
44
|
|
|
$
|
7,775
|
|
|
|
2018
|
||||||||||||||||||||||||||||||||||
|
|
Cost of sales
|
|
Gross profit
|
|
Selling, general and administrative expenses
|
|
Operating profit
|
|
Other pension and retiree medical benefits income
|
|
Interest expense
|
|
(Benefit from)/provision for income taxes(a)
|
|
Net income attributable to noncontrolling interests
|
|
Net income attributable to PepsiCo
|
||||||||||||||||||
|
Reported, GAAP Measure
|
$
|
29,381
|
|
|
$
|
35,280
|
|
|
$
|
25,170
|
|
|
$
|
10,110
|
|
|
$
|
298
|
|
|
$
|
1,525
|
|
|
$
|
(3,370
|
)
|
|
$
|
44
|
|
|
$
|
12,515
|
|
|
Items Affecting Comparability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Mark-to-market net impact
|
(83
|
)
|
|
83
|
|
|
(80
|
)
|
|
163
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
125
|
|
|||||||||
|
Restructuring and impairment charges
|
(3
|
)
|
|
3
|
|
|
(269
|
)
|
|
272
|
|
|
36
|
|
|
—
|
|
|
56
|
|
|
1
|
|
|
251
|
|
|||||||||
|
Merger and integration charges
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
75
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|||||||||
|
Net tax related to the TCJ Act
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
(28
|
)
|
|||||||||
|
Other net tax benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,064
|
|
|
—
|
|
|
(5,064
|
)
|
|||||||||
|
Charges related to cash tender and exchange offers
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(253
|
)
|
|
62
|
|
|
—
|
|
|
191
|
|
|||||||||
|
Core, Non-GAAP Measure
|
$
|
29,295
|
|
|
$
|
35,366
|
|
|
$
|
24,746
|
|
|
$
|
10,620
|
|
|
$
|
334
|
|
|
$
|
1,272
|
|
|
$
|
1,878
|
|
|
$
|
45
|
|
|
$
|
8,065
|
|
|
|
2017
|
||||||||||||||||||||||||||
|
|
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
|
$
|
28,796
|
|
|
$
|
34,729
|
|
|
$
|
24,453
|
|
|
$
|
10,276
|
|
|
$
|
233
|
|
|
$
|
4,694
|
|
|
$
|
4,857
|
|
|
Items Affecting Comparability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Mark-to-market net impact
|
8
|
|
|
(8
|
)
|
|
7
|
|
|
(15
|
)
|
|
—
|
|
|
(7
|
)
|
|
(8
|
)
|
|||||||
|
Restructuring and impairment charges
|
—
|
|
|
—
|
|
|
(229
|
)
|
|
229
|
|
|
66
|
|
|
71
|
|
|
224
|
|
|||||||
|
Provisional net tax related to the TCJ Act
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,451
|
)
|
|
2,451
|
|
|||||||
|
Core, Non-GAAP Measure
|
$
|
28,804
|
|
|
$
|
34,721
|
|
|
$
|
24,231
|
|
|
$
|
10,490
|
|
|
$
|
299
|
|
|
$
|
2,307
|
|
|
$
|
7,524
|
|
|
(a)
|
Provision for income taxes is the expected tax charge/benefit on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax jurisdiction.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Net cash provided by operating activities
|
$
|
9,649
|
|
|
$
|
9,415
|
|
|
$
|
10,030
|
|
|
Net cash (used for)/provided by investing activities
|
$
|
(6,437
|
)
|
|
$
|
4,564
|
|
|
$
|
(4,403
|
)
|
|
Net cash used for financing activities
|
$
|
(8,489
|
)
|
|
$
|
(13,769
|
)
|
|
$
|
(4,186
|
)
|
|
|
|
|
|
|
|
|
% Change
|
||||||||||
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|||
|
Net cash provided by operating activities
|
$
|
9,649
|
|
|
$
|
9,415
|
|
|
$
|
10,030
|
|
|
2.5
|
|
|
(6
|
)
|
|
Capital spending
|
(4,232
|
)
|
|
(3,282
|
)
|
|
(2,969
|
)
|
|
|
|
|
|||||
|
Sales of property, plant and equipment
|
170
|
|
|
134
|
|
|
180
|
|
|
|
|
|
|||||
|
Free cash flow
|
$
|
5,587
|
|
|
$
|
6,267
|
|
|
$
|
7,241
|
|
|
(11
|
)
|
|
(13
|
)
|
|
|
Payments Due by Period(a)
|
||||||||||||||||||
|
|
Total
|
|
|
2020
|
|
|
2021 –
2022 |
|
|
2023 –
2024 |
|
|
2025 and
beyond |
|
|||||
|
Recorded Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Long-term debt obligations (b)
|
$
|
29,142
|
|
|
$
|
—
|
|
|
$
|
7,156
|
|
|
$
|
3,110
|
|
|
$
|
18,876
|
|
|
Operating leases (c)
|
1,763
|
|
|
501
|
|
|
654
|
|
|
300
|
|
|
308
|
|
|||||
|
One-time mandatory transition tax - TCJ Act (d)
|
3,317
|
|
|
75
|
|
|
617
|
|
|
888
|
|
|
1,737
|
|
|||||
|
Other:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest on debt obligations (e)
|
12,403
|
|
|
996
|
|
|
1,730
|
|
|
1,388
|
|
|
8,289
|
|
|||||
|
Purchasing commitments (f)
|
2,032
|
|
|
874
|
|
|
844
|
|
|
213
|
|
|
101
|
|
|||||
|
Marketing commitments (g)
|
1,308
|
|
|
403
|
|
|
548
|
|
|
188
|
|
|
169
|
|
|||||
|
Total contractual commitments
|
$
|
49,965
|
|
|
$
|
2,849
|
|
|
$
|
11,549
|
|
|
$
|
6,087
|
|
|
$
|
29,480
|
|
|
(a)
|
Based on year-end foreign exchange rates.
|
|
(b)
|
Excludes $2,848 million related to current maturities of debt, $6 million related to the fair value adjustments for debt acquired in acquisitions and interest rate swaps and payments of $163 million related to unamortized net discounts.
|
|
(c)
|
Primarily reflects building leases. See Note 13 to our consolidated financial statements for further information on operating leases.
|
|
(d)
|
Reflects our transition tax liability as of December 28, 2019, which must be paid through 2026 under the provisions of the TCJ Act.
|
|
(e)
|
Interest payments on floating-rate debt are estimated using interest rates effective as of December 28, 2019. Includes accrued interest of $305 million as of December 28, 2019.
|
|
(f)
|
Reflects non-cancelable commitments, primarily for the purchase of commodities and outsourcing services in the normal course of business and does not include purchases that we are likely to make based on our plans, but are not obligated to incur.
|
|
(g)
|
Reflects non-cancelable commitments, primarily for sports marketing in the normal course of business.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|||
|
Net income attributable to PepsiCo (a)
|
$
|
7,314
|
|
|
$
|
12,515
|
|
|
$
|
4,857
|
|
|
|
Interest expense
|
1,135
|
|
|
1,525
|
|
|
1,151
|
|
|
|||
|
Tax on interest expense
|
(252
|
)
|
|
(339
|
)
|
|
(415
|
)
|
|
|||
|
|
$
|
8,197
|
|
|
$
|
13,701
|
|
|
$
|
5,593
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Average debt obligations (b)
|
$
|
31,975
|
|
|
$
|
38,169
|
|
|
$
|
38,707
|
|
|
|
Average common shareholders’ equity (c)
|
14,317
|
|
|
11,368
|
|
|
12,004
|
|
|
|||
|
Average invested capital
|
$
|
46,292
|
|
|
$
|
49,537
|
|
|
$
|
50,711
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Return on invested capital
|
17.7
|
|
%
|
27.7
|
|
%
|
11.0
|
|
%
|
|||
|
(a)
|
Results include the impact of the TCJ Act. Additionally, our 2018 results included other net tax benefits related to the reorganization of our international operations. See Note 5 to our consolidated financial statements for further information.
|
|
(b)
|
Average debt obligations includes a quarterly average of short-term and long-term debt obligations.
|
|
(c)
|
Average common shareholders’ equity includes a quarterly average of common stock, capital in excess of par value, retained earnings, accumulated other comprehensive loss and repurchased common stock.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|
ROIC
|
17.7
|
|
%
|
27.7
|
|
%
|
11.0
|
|
%
|
|
Impact of:
|
|
|
|
|
|
|
|||
|
Average cash, cash equivalents and short-term investments
|
3.0
|
|
|
7.8
|
|
|
7.6
|
|
|
|
Interest income
|
(0.5
|
)
|
|
(0.6
|
)
|
|
(0.5
|
)
|
|
|
Tax on interest income
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
|
Mark-to-market net impact
|
(0.2
|
)
|
|
0.2
|
|
|
—
|
|
|
|
Restructuring and impairment charges
|
0.5
|
|
|
0.4
|
|
|
0.3
|
|
|
|
Inventory fair value adjustments and merger and integration charges
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
|
Pension-related settlement charges
|
0.5
|
|
|
—
|
|
|
—
|
|
|
|
Net tax related to the TCJ Act
|
(1.0
|
)
|
|
(1.1
|
)
|
|
4.5
|
|
|
|
Other net tax benefits
|
2.2
|
|
|
(9.7
|
)
|
|
0.1
|
|
|
|
Charges related to cash tender and exchange offers
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
|
Charges related to the transaction with Tingyi (a)
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
|
Venezuela impairment charges (a)
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
|
Net ROIC, excluding items affecting comparability
|
22.3
|
|
%
|
24.8
|
|
%
|
22.9
|
|
%
|
|
(a)
|
See “Item 6. Selected Financial Data” for further information.
|
|
•
|
revenue recognition;
|
|
•
|
goodwill and other intangible assets;
|
|
•
|
income tax expense and accruals; and
|
|
•
|
pension and retiree medical plans.
|
|
•
|
certain employee-related demographic factors, such as turnover, retirement age and mortality;
|
|
•
|
the expected return on assets in our funded plans;
|
|
•
|
for pension expense, the rate of salary increases for plans where benefits are based on earnings;
|
|
•
|
for retiree medical expense, health care cost trend rates; and
|
|
•
|
for pension and retiree medical expense, the spot rates along the yield curve used to determine service and interest costs and the present value of liabilities.
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
Pension
|
|
|
|
|
|
|||
|
Service cost discount rate
|
3.4
|
%
|
|
4.4
|
%
|
|
3.7
|
%
|
|
Interest cost discount rate
|
2.8
|
%
|
|
3.9
|
%
|
|
3.2
|
%
|
|
Expected rate of return on plan assets
|
6.6
|
%
|
|
6.8
|
%
|
|
6.9
|
%
|
|
Expected rate of salary increases
|
3.2
|
%
|
|
3.2
|
%
|
|
3.2
|
%
|
|
Retiree medical
|
|
|
|
|
|
|||
|
Service cost discount rate
|
3.2
|
%
|
|
4.3
|
%
|
|
3.6
|
%
|
|
Interest cost discount rate
|
2.6
|
%
|
|
3.8
|
%
|
|
3.0
|
%
|
|
Expected rate of return on plan assets
|
5.8
|
%
|
|
6.6
|
%
|
|
6.5
|
%
|
|
Current health care cost trend rate
|
5.6
|
%
|
|
5.7
|
%
|
|
5.8
|
%
|
|
Assumption
|
|
Amount
|
||
|
Discount rates used in the calculation of expense
|
|
$
|
48
|
|
|
Expected rate of return
|
|
$
|
44
|
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Net Revenue
|
$
|
67,161
|
|
|
$
|
64,661
|
|
|
$
|
63,525
|
|
|
Cost of sales
|
30,132
|
|
|
29,381
|
|
|
28,796
|
|
|||
|
Gross profit
|
37,029
|
|
|
35,280
|
|
|
34,729
|
|
|||
|
Selling, general and administrative expenses
|
26,738
|
|
|
25,170
|
|
|
24,453
|
|
|||
|
Operating Profit
|
10,291
|
|
|
10,110
|
|
|
10,276
|
|
|||
|
Other pension and retiree medical benefits (expense)/income
|
(44
|
)
|
|
298
|
|
|
233
|
|
|||
|
Interest expense
|
(1,135
|
)
|
|
(1,525
|
)
|
|
(1,151
|
)
|
|||
|
Interest income and other
|
200
|
|
|
306
|
|
|
244
|
|
|||
|
Income before income taxes
|
9,312
|
|
|
9,189
|
|
|
9,602
|
|
|||
|
Provision for/(benefit from) income taxes (See Note 5)
|
1,959
|
|
|
(3,370
|
)
|
|
4,694
|
|
|||
|
Net income
|
7,353
|
|
|
12,559
|
|
|
4,908
|
|
|||
|
Less: Net income attributable to noncontrolling interests
|
39
|
|
|
44
|
|
|
51
|
|
|||
|
Net Income Attributable to PepsiCo
|
$
|
7,314
|
|
|
$
|
12,515
|
|
|
$
|
4,857
|
|
|
Net Income Attributable to PepsiCo per Common Share
|
|
|
|
|
|
||||||
|
Basic
|
$
|
5.23
|
|
|
$
|
8.84
|
|
|
$
|
3.40
|
|
|
Diluted
|
$
|
5.20
|
|
|
$
|
8.78
|
|
|
$
|
3.38
|
|
|
Weighted-average common shares outstanding
|
|
|
|
|
|
||||||
|
Basic
|
1,399
|
|
|
1,415
|
|
|
1,425
|
|
|||
|
Diluted
|
1,407
|
|
|
1,425
|
|
|
1,438
|
|
|||
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Net income
|
$
|
7,353
|
|
|
$
|
12,559
|
|
|
$
|
4,908
|
|
|
Other comprehensive income/(loss), net of taxes:
|
|
|
|
|
|
||||||
|
Net currency translation adjustment
|
628
|
|
|
(1,641
|
)
|
|
1,109
|
|
|||
|
Net change on cash flow hedges
|
(90
|
)
|
|
40
|
|
|
(36
|
)
|
|||
|
Net pension and retiree medical adjustments
|
283
|
|
|
(467
|
)
|
|
(159
|
)
|
|||
|
Net change on available-for-sale securities
|
(2
|
)
|
|
6
|
|
|
(68
|
)
|
|||
|
Other
|
—
|
|
|
—
|
|
|
16
|
|
|||
|
|
819
|
|
|
(2,062
|
)
|
|
862
|
|
|||
|
Comprehensive income
|
8,172
|
|
|
10,497
|
|
|
5,770
|
|
|||
|
Comprehensive income attributable to noncontrolling interests
|
(39
|
)
|
|
(44
|
)
|
|
(51
|
)
|
|||
|
Comprehensive Income Attributable to PepsiCo
|
$
|
8,133
|
|
|
$
|
10,453
|
|
|
$
|
5,719
|
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Operating Activities
|
|
|
|
|
|
||||||
|
Net income
|
$
|
7,353
|
|
|
$
|
12,559
|
|
|
$
|
4,908
|
|
|
Depreciation and amortization
|
2,432
|
|
|
2,399
|
|
|
2,369
|
|
|||
|
Share-based compensation expense
|
237
|
|
|
256
|
|
|
292
|
|
|||
|
Restructuring and impairment charges
|
370
|
|
|
308
|
|
|
295
|
|
|||
|
Cash payments for restructuring charges
|
(350
|
)
|
|
(255
|
)
|
|
(113
|
)
|
|||
|
Pension and retiree medical plan expenses
|
519
|
|
|
221
|
|
|
221
|
|
|||
|
Pension and retiree medical plan contributions
|
(716
|
)
|
|
(1,708
|
)
|
|
(220
|
)
|
|||
|
Deferred income taxes and other tax charges and credits
|
453
|
|
|
(531
|
)
|
|
619
|
|
|||
|
Net tax related to the TCJ Act
|
(8
|
)
|
|
(28
|
)
|
|
2,451
|
|
|||
|
Tax payments related to the TCJ Act
|
(423
|
)
|
|
(115
|
)
|
|
—
|
|
|||
|
Other net tax benefits related to international reorganizations
|
(2
|
)
|
|
(4,347
|
)
|
|
—
|
|
|||
|
Change in assets and liabilities:
|
|
|
|
|
|
||||||
|
Accounts and notes receivable
|
(650
|
)
|
|
(253
|
)
|
|
(202
|
)
|
|||
|
Inventories
|
(190
|
)
|
|
(174
|
)
|
|
(168
|
)
|
|||
|
Prepaid expenses and other current assets
|
(87
|
)
|
|
9
|
|
|
20
|
|
|||
|
Accounts payable and other current liabilities
|
735
|
|
|
882
|
|
|
201
|
|
|||
|
Income taxes payable
|
(287
|
)
|
|
448
|
|
|
(338
|
)
|
|||
|
Other, net
|
263
|
|
|
(256
|
)
|
|
(305
|
)
|
|||
|
Net Cash Provided by Operating Activities
|
9,649
|
|
|
9,415
|
|
|
10,030
|
|
|||
|
|
|
|
|
|
|
||||||
|
Investing Activities
|
|
|
|
|
|
||||||
|
Capital spending
|
(4,232
|
)
|
|
(3,282
|
)
|
|
(2,969
|
)
|
|||
|
Sales of property, plant and equipment
|
170
|
|
|
134
|
|
|
180
|
|
|||
|
Acquisition of SodaStream, net of cash and cash equivalents acquired
|
(1,939
|
)
|
|
(1,197
|
)
|
|
—
|
|
|||
|
Other acquisitions and investments in noncontrolled affiliates
|
(778
|
)
|
|
(299
|
)
|
|
(61
|
)
|
|||
|
Divestitures
|
253
|
|
|
505
|
|
|
267
|
|
|||
|
Short-term investments, by original maturity:
|
|
|
|
|
|
||||||
|
More than three months - purchases
|
—
|
|
|
(5,637
|
)
|
|
(18,385
|
)
|
|||
|
More than three months - maturities
|
16
|
|
|
12,824
|
|
|
15,744
|
|
|||
|
More than three months - sales
|
62
|
|
|
1,498
|
|
|
790
|
|
|||
|
Three months or less, net
|
19
|
|
|
16
|
|
|
2
|
|
|||
|
Other investing, net
|
(8
|
)
|
|
2
|
|
|
29
|
|
|||
|
Net Cash (Used for)/Provided by Investing Activities
|
(6,437
|
)
|
|
4,564
|
|
|
(4,403
|
)
|
|||
|
|
|
|
|
|
|
||||||
|
Financing Activities
|
|
|
|
|
|
||||||
|
Proceeds from issuances of long-term debt
|
4,621
|
|
|
—
|
|
|
7,509
|
|
|||
|
Payments of long-term debt
|
(3,970
|
)
|
|
(4,007
|
)
|
|
(4,406
|
)
|
|||
|
Debt redemption/cash tender and exchange offers
|
(1,007
|
)
|
|
(1,589
|
)
|
|
—
|
|
|||
|
Short-term borrowings, by original maturity:
|
|
|
|
|
|
||||||
|
More than three months - proceeds
|
6
|
|
|
3
|
|
|
91
|
|
|||
|
More than three months - payments
|
(2
|
)
|
|
(17
|
)
|
|
(128
|
)
|
|||
|
Three months or less, net
|
(3
|
)
|
|
(1,352
|
)
|
|
(1,016
|
)
|
|||
|
Cash dividends paid
|
(5,304
|
)
|
|
(4,930
|
)
|
|
(4,472
|
)
|
|||
|
Share repurchases - common
|
(3,000
|
)
|
|
(2,000
|
)
|
|
(2,000
|
)
|
|||
|
Share repurchases - preferred
|
—
|
|
|
(2
|
)
|
|
(5
|
)
|
|||
|
Proceeds from exercises of stock options
|
329
|
|
|
281
|
|
|
462
|
|
|||
|
Withholding tax payments on restricted stock units (RSUs), performance stock units (PSUs) and PepsiCo equity performance units (PEPunits) converted
|
(114
|
)
|
|
(103
|
)
|
|
(145
|
)
|
|||
|
Other financing
|
(45
|
)
|
|
(53
|
)
|
|
(76
|
)
|
|||
|
Net Cash Used for Financing Activities
|
(8,489
|
)
|
|
(13,769
|
)
|
|
(4,186
|
)
|
|||
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
78
|
|
|
(98
|
)
|
|
47
|
|
|||
|
Net (Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash
|
(5,199
|
)
|
|
112
|
|
|
1,488
|
|
|||
|
Cash and Cash Equivalents and Restricted Cash, Beginning of Year
|
10,769
|
|
|
10,657
|
|
|
9,169
|
|
|||
|
Cash and Cash Equivalents and Restricted Cash, End of Year
|
$
|
5,570
|
|
|
$
|
10,769
|
|
|
$
|
10,657
|
|
|
|
2019
|
|
|
2018
|
|
||
|
ASSETS
|
|
|
|
||||
|
Current Assets
|
|
|
|
||||
|
Cash and cash equivalents
|
$
|
5,509
|
|
|
$
|
8,721
|
|
|
Short-term investments
|
229
|
|
|
272
|
|
||
|
Restricted cash
|
—
|
|
|
1,997
|
|
||
|
Accounts and notes receivable, net
|
7,822
|
|
|
7,142
|
|
||
|
Inventories
|
3,338
|
|
|
3,128
|
|
||
|
Prepaid expenses and other current assets
|
747
|
|
|
633
|
|
||
|
Total Current Assets
|
17,645
|
|
|
21,893
|
|
||
|
Property, Plant and Equipment, net
|
19,305
|
|
|
17,589
|
|
||
|
Amortizable Intangible Assets, net
|
1,433
|
|
|
1,644
|
|
||
|
Goodwill
|
15,501
|
|
|
14,808
|
|
||
|
Other indefinite-lived intangible assets
|
14,610
|
|
|
14,181
|
|
||
|
Indefinite-Lived Intangible Assets
|
30,111
|
|
|
28,989
|
|
||
|
Investments in Noncontrolled Affiliates
|
2,683
|
|
|
2,409
|
|
||
|
Deferred Income Taxes
|
4,359
|
|
|
4,364
|
|
||
|
Other Assets
|
3,011
|
|
|
760
|
|
||
|
Total Assets
|
$
|
78,547
|
|
|
$
|
77,648
|
|
|
|
|
|
|
||||
|
LIABILITIES AND EQUITY
|
|
|
|
||||
|
Current Liabilities
|
|
|
|
||||
|
Short-term debt obligations
|
$
|
2,920
|
|
|
$
|
4,026
|
|
|
Accounts payable and other current liabilities
|
17,541
|
|
|
18,112
|
|
||
|
Total Current Liabilities
|
20,461
|
|
|
22,138
|
|
||
|
Long-Term Debt Obligations
|
29,148
|
|
|
28,295
|
|
||
|
Deferred Income Taxes
|
4,091
|
|
|
3,499
|
|
||
|
Other Liabilities
|
9,979
|
|
|
9,114
|
|
||
|
Total Liabilities
|
63,679
|
|
|
63,046
|
|
||
|
Commitments and contingencies
|
|
|
|
|
|
||
|
PepsiCo Common Shareholders’ Equity
|
|
|
|
||||
|
Common stock, par value 12/3¢ per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,391 and 1,409 shares, respectively)
|
23
|
|
|
23
|
|
||
|
Capital in excess of par value
|
3,886
|
|
|
3,953
|
|
||
|
Retained earnings
|
61,946
|
|
|
59,947
|
|
||
|
Accumulated other comprehensive loss
|
(14,300
|
)
|
|
(15,119
|
)
|
||
|
Repurchased common stock, in excess of par value (476 and 458 shares, respectively)
|
(36,769
|
)
|
|
(34,286
|
)
|
||
|
Total PepsiCo Common Shareholders’ Equity
|
14,786
|
|
|
14,518
|
|
||
|
Noncontrolling interests
|
82
|
|
|
84
|
|
||
|
Total Equity
|
14,868
|
|
|
14,602
|
|
||
|
Total Liabilities and Equity
|
$
|
78,547
|
|
|
$
|
77,648
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|||
|
Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Balance, beginning of year
|
—
|
|
|
$
|
—
|
|
|
0.8
|
|
|
$
|
41
|
|
|
0.8
|
|
|
$
|
41
|
|
|
Conversion to common stock
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|||
|
Retirement of preferred stock
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|||
|
Balance, end of year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
41
|
|
|||
|
Repurchased Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Balance, beginning of year
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(197
|
)
|
|
(0.7
|
)
|
|
(192
|
)
|
|||
|
Redemptions
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(5
|
)
|
|||
|
Retirement of preferred stock
|
—
|
|
|
—
|
|
|
0.7
|
|
|
199
|
|
|
—
|
|
|
—
|
|
|||
|
Balance, end of year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(197
|
)
|
|||
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Balance, beginning of year
|
1,409
|
|
|
23
|
|
|
1,420
|
|
|
24
|
|
|
1,428
|
|
|
24
|
|
|||
|
Shares issued in connection with preferred stock conversion to common stock
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Change in repurchased common stock
|
(18
|
)
|
|
—
|
|
|
(12
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
—
|
|
|||
|
Balance, end of year
|
1,391
|
|
|
23
|
|
|
1,409
|
|
|
23
|
|
|
1,420
|
|
|
24
|
|
|||
|
Capital in Excess of Par Value
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Balance, beginning of year
|
|
|
3,953
|
|
|
|
|
3,996
|
|
|
|
|
4,091
|
|
||||||
|
Share-based compensation expense
|
|
|
235
|
|
|
|
|
250
|
|
|
|
|
290
|
|
||||||
|
Equity issued in connection with preferred stock conversion to common stock
|
|
|
—
|
|
|
|
|
6
|
|
|
|
|
—
|
|
||||||
|
Stock option exercises, RSUs, PSUs and PEPunits converted
|
|
|
(188
|
)
|
|
|
|
(193
|
)
|
|
|
|
(236
|
)
|
||||||
|
Withholding tax on RSUs, PSUs and PEPunits converted
|
|
|
(114
|
)
|
|
|
|
(103
|
)
|
|
|
|
(145
|
)
|
||||||
|
Other
|
|
|
—
|
|
|
|
|
(3
|
)
|
|
|
|
(4
|
)
|
||||||
|
Balance, end of year
|
|
|
3,886
|
|
|
|
|
3,953
|
|
|
|
|
3,996
|
|
||||||
|
Retained Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Balance, beginning of year
|
|
|
59,947
|
|
|
|
|
52,839
|
|
|
|
|
52,518
|
|
||||||
|
Cumulative effect of accounting changes
|
|
|
8
|
|
|
|
|
(145
|
)
|
|
|
|
—
|
|
||||||
|
Net income attributable to PepsiCo
|
|
|
7,314
|
|
|
|
|
12,515
|
|
|
|
|
4,857
|
|
||||||
|
Cash dividends declared - common (a)
|
|
|
(5,323
|
)
|
|
|
|
(5,098
|
)
|
|
|
|
(4,536
|
)
|
||||||
|
Retirement of preferred stock
|
|
|
—
|
|
|
|
|
(164
|
)
|
|
|
|
—
|
|
||||||
|
Balance, end of year
|
|
|
61,946
|
|
|
|
|
59,947
|
|
|
|
|
52,839
|
|
||||||
|
Accumulated Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Balance, beginning of year
|
|
|
(15,119
|
)
|
|
|
|
(13,057
|
)
|
|
|
|
(13,919
|
)
|
||||||
|
Other comprehensive income/(loss) attributable to PepsiCo
|
|
|
819
|
|
|
|
|
(2,062
|
)
|
|
|
|
862
|
|
||||||
|
Balance, end of year
|
|
|
(14,300
|
)
|
|
|
|
(15,119
|
)
|
|
|
|
(13,057
|
)
|
||||||
|
Repurchased Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Balance, beginning of year
|
(458
|
)
|
|
(34,286
|
)
|
|
(446
|
)
|
|
(32,757
|
)
|
|
(438
|
)
|
|
(31,468
|
)
|
|||
|
Share repurchases
|
(24
|
)
|
|
(3,000
|
)
|
|
(18
|
)
|
|
(2,000
|
)
|
|
(18
|
)
|
|
(2,000
|
)
|
|||
|
Stock option exercises, RSUs, PSUs and PEPunits converted
|
6
|
|
|
516
|
|
|
6
|
|
|
469
|
|
|
10
|
|
|
708
|
|
|||
|
Other
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|||
|
Balance, end of year
|
(476
|
)
|
|
(36,769
|
)
|
|
(458
|
)
|
|
(34,286
|
)
|
|
(446
|
)
|
|
(32,757
|
)
|
|||
|
Total PepsiCo Common Shareholders’ Equity
|
|
|
14,786
|
|
|
|
|
14,518
|
|
|
|
|
11,045
|
|
||||||
|
Noncontrolling Interests
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Balance, beginning of year
|
|
|
84
|
|
|
|
|
92
|
|
|
|
|
104
|
|
||||||
|
Net income attributable to noncontrolling interests
|
|
|
39
|
|
|
|
|
44
|
|
|
|
|
51
|
|
||||||
|
Distributions to noncontrolling interests
|
|
|
(42
|
)
|
|
|
|
(49
|
)
|
|
|
|
(62
|
)
|
||||||
|
Other, net
|
|
|
1
|
|
|
|
|
(3
|
)
|
|
|
|
(1
|
)
|
||||||
|
Balance, end of year
|
|
|
82
|
|
|
|
|
84
|
|
|
|
|
92
|
|
||||||
|
Total Equity
|
|
|
$
|
14,868
|
|
|
|
|
$
|
14,602
|
|
|
|
|
$
|
10,981
|
|
|||
|
Quarter
|
|
United States and Canada
|
|
International
|
|
First Quarter
|
|
12 weeks
|
|
January, February
|
|
Second Quarter
|
|
12 weeks
|
|
March, April and May
|
|
Third Quarter
|
|
12 weeks
|
|
June, July and August
|
|
Fourth Quarter
|
|
16 weeks
|
|
September, October, November and December
|
|
1)
|
FLNA, which includes our branded food and snack businesses in the United States and Canada;
|
|
2)
|
QFNA, which includes our cereal, rice, pasta and other branded food businesses in the United States and Canada;
|
|
3)
|
PBNA, which includes our beverage businesses in the United States and Canada;
|
|
4)
|
LatAm, which includes all of our beverage, food and snack businesses in Latin America;
|
|
5)
|
Europe, which includes all of our beverage, food and snack businesses in Europe;
|
|
6)
|
AMESA, which includes all of our beverage, food and snack businesses in Africa, the Middle East and South Asia; and
|
|
7)
|
APAC, which includes all of our beverage, food and snack businesses in Asia Pacific, Australia and New Zealand and China region.
|
|
•
|
share-based compensation expense;
|
|
•
|
pension and retiree medical expense; and
|
|
•
|
derivatives.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
FLNA
|
13
|
%
|
|
13
|
%
|
|
13
|
%
|
|
QFNA
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
PBNA
|
17
|
%
|
|
18
|
%
|
|
18
|
%
|
|
LatAm
|
7
|
%
|
|
8
|
%
|
|
7
|
%
|
|
Europe
|
17
|
%
|
|
9
|
%
|
|
9
|
%
|
|
AMESA
|
3
|
%
|
|
4
|
%
|
|
5
|
%
|
|
APAC
|
5
|
%
|
|
4
|
%
|
|
4
|
%
|
|
Corporate unallocated expenses
|
37
|
%
|
|
43
|
%
|
|
43
|
%
|
|
|
Net Revenue
|
|
Operating Profit
|
||||||||||||||||||||
|
|
2019(a)
|
|
|
2018(a)
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||||
|
FLNA
|
$
|
17,078
|
|
|
$
|
16,346
|
|
|
$
|
15,798
|
|
|
$
|
5,258
|
|
|
$
|
5,008
|
|
|
$
|
4,793
|
|
|
QFNA
|
2,482
|
|
|
2,465
|
|
|
2,503
|
|
|
544
|
|
|
637
|
|
|
640
|
|
||||||
|
PBNA
|
21,730
|
|
|
21,072
|
|
|
20,936
|
|
|
2,179
|
|
|
2,276
|
|
|
2,700
|
|
||||||
|
LatAm
|
7,573
|
|
|
7,354
|
|
|
7,208
|
|
|
1,141
|
|
|
1,049
|
|
|
924
|
|
||||||
|
Europe
|
11,728
|
|
|
10,973
|
|
|
10,522
|
|
|
1,327
|
|
|
1,256
|
|
|
1,199
|
|
||||||
|
AMESA
|
3,651
|
|
|
3,657
|
|
|
3,674
|
|
|
671
|
|
|
661
|
|
|
789
|
|
||||||
|
APAC
|
2,919
|
|
|
2,794
|
|
|
2,884
|
|
|
477
|
|
|
619
|
|
|
401
|
|
||||||
|
Total division
|
67,161
|
|
|
64,661
|
|
|
63,525
|
|
|
11,597
|
|
|
11,506
|
|
|
11,446
|
|
||||||
|
Corporate unallocated expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,306
|
)
|
|
(1,396
|
)
|
|
(1,170
|
)
|
||||||
|
Total
|
$
|
67,161
|
|
|
$
|
64,661
|
|
|
$
|
63,525
|
|
|
$
|
10,291
|
|
|
$
|
10,110
|
|
|
$
|
10,276
|
|
|
(a)
|
Our primary performance obligation is the distribution and sales of beverage products and food and snack products to our customers, with our food and snack business representing approximately 55% of our consolidated net revenue. Internationally, LatAm’s food and snack business is approximately 90% of the segment’s net revenue, Europe’s beverage business and food and snack business are approximately 55% and 45%, respectively, of the segment’s net revenue, AMESA’s beverage business and food and snack business are approximately 40% and 60%, respectively, of the segment’s net revenue and APAC’s beverage business and food and snack business are approximately 25% and 75%, respectively, of the segment’s net revenue. Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and Europe segments, is approximately 40% of our consolidated net revenue. Generally, our
|
|
|
Total Assets
|
|
Capital Spending
|
||||||||||||||||
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||||
|
FLNA
|
$
|
7,519
|
|
|
$
|
6,577
|
|
|
$
|
1,227
|
|
|
$
|
840
|
|
|
$
|
665
|
|
|
QFNA
|
941
|
|
|
870
|
|
|
104
|
|
|
53
|
|
|
44
|
|
|||||
|
PBNA
|
31,449
|
|
|
29,878
|
|
|
1,053
|
|
|
945
|
|
|
904
|
|
|||||
|
LatAm
|
7,007
|
|
|
6,458
|
|
|
557
|
|
|
492
|
|
|
481
|
|
|||||
|
Europe
|
17,814
|
|
|
16,887
|
|
|
613
|
|
|
466
|
|
|
463
|
|
|||||
|
AMESA
|
3,672
|
|
|
3,252
|
|
|
267
|
|
|
198
|
|
|
181
|
|
|||||
|
APAC
|
4,113
|
|
|
3,704
|
|
|
195
|
|
|
138
|
|
|
145
|
|
|||||
|
Total division
|
72,515
|
|
|
67,626
|
|
|
4,016
|
|
|
3,132
|
|
|
2,883
|
|
|||||
|
Corporate (a)
|
6,032
|
|
|
10,022
|
|
|
216
|
|
|
150
|
|
|
86
|
|
|||||
|
Total
|
$
|
78,547
|
|
|
$
|
77,648
|
|
|
$
|
4,232
|
|
|
$
|
3,282
|
|
|
$
|
2,969
|
|
|
(a)
|
Corporate assets consist principally of certain cash and cash equivalents, restricted cash, short-term investments, derivative instruments, property, plant and equipment and tax assets. In 2019, the change in assets was primarily due to a decrease in cash and cash equivalents and restricted cash. Refer to the cash flow statement for additional information.
|
|
|
Amortization of
Intangible Assets |
|
Depreciation and
Other Amortization |
||||||||||||||||||||
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||||
|
FLNA
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
492
|
|
|
$
|
457
|
|
|
$
|
449
|
|
|
QFNA
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
45
|
|
|
47
|
|
||||||
|
PBNA
|
29
|
|
|
31
|
|
|
31
|
|
|
857
|
|
|
821
|
|
|
780
|
|
||||||
|
LatAm
|
5
|
|
|
5
|
|
|
5
|
|
|
270
|
|
|
253
|
|
|
245
|
|
||||||
|
Europe
|
37
|
|
|
23
|
|
|
22
|
|
|
341
|
|
|
319
|
|
|
317
|
|
||||||
|
AMESA
|
2
|
|
|
2
|
|
|
2
|
|
|
116
|
|
|
169
|
|
|
170
|
|
||||||
|
APAC
|
1
|
|
|
1
|
|
|
1
|
|
|
76
|
|
|
80
|
|
|
99
|
|
||||||
|
Total division
|
81
|
|
|
69
|
|
|
68
|
|
|
2,196
|
|
|
2,144
|
|
|
2,107
|
|
||||||
|
Corporate
|
—
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|
186
|
|
|
194
|
|
||||||
|
Total
|
$
|
81
|
|
|
$
|
69
|
|
|
$
|
68
|
|
|
$
|
2,351
|
|
|
$
|
2,330
|
|
|
$
|
2,301
|
|
|
|
Net Revenue
|
|
Long-Lived Assets(a)
|
||||||||||||||||
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|||||
|
United States
|
$
|
38,644
|
|
|
$
|
37,148
|
|
|
$
|
36,546
|
|
|
$
|
30,601
|
|
|
$
|
29,169
|
|
|
Mexico
|
4,190
|
|
|
3,878
|
|
|
3,650
|
|
|
1,666
|
|
|
1,404
|
|
|||||
|
Russia
|
3,263
|
|
|
3,191
|
|
|
3,232
|
|
|
4,314
|
|
|
3,926
|
|
|||||
|
Canada
|
2,831
|
|
|
2,736
|
|
|
2,691
|
|
|
2,695
|
|
|
2,565
|
|
|||||
|
United Kingdom
|
1,723
|
|
|
1,743
|
|
|
1,650
|
|
|
827
|
|
|
759
|
|
|||||
|
China
|
1,300
|
|
|
1,164
|
|
|
963
|
|
|
705
|
|
|
509
|
|
|||||
|
Brazil
|
1,295
|
|
|
1,335
|
|
|
1,427
|
|
|
590
|
|
|
639
|
|
|||||
|
All other countries
|
13,915
|
|
|
13,466
|
|
|
13,366
|
|
|
12,134
|
|
|
11,660
|
|
|||||
|
Total
|
$
|
67,161
|
|
|
$
|
64,661
|
|
|
$
|
63,525
|
|
|
$
|
53,532
|
|
|
$
|
50,631
|
|
|
(a)
|
Long-lived assets represent property, plant and equipment, indefinite-lived intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used.
|
|
•
|
media and personal service prepayments;
|
|
•
|
promotional materials in inventory; and
|
|
•
|
production costs of future media advertising.
|
|
•
|
Basis of Presentation – Note 1 includes a description of our policies regarding use of estimates, basis of presentation and consolidation.
|
|
•
|
Property, Plant and Equipment – Note 4.
|
|
•
|
Income Taxes – Note 5.
|
|
•
|
Share-Based Compensation – Note 6.
|
|
•
|
Pension, Retiree Medical and Savings Plans – Note 7.
|
|
•
|
Financial Instruments – Note 9.
|
|
•
|
Cash Equivalents – Cash equivalents are highly liquid investments with original maturities of three months or less.
|
|
•
|
Inventories – Note 15. Inventories are valued at the lower of cost or net realizable value. Cost is determined using the average; first-in, first-out (FIFO) or, in limited instances, last-in, first-out (LIFO) methods.
|
|
•
|
Translation of Financial Statements of Foreign Subsidiaries – Financial statements of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. Adjustments resulting from translating net assets are reported as a separate component of accumulated other comprehensive loss within common shareholders’ equity as currency translation adjustment.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
2019 Productivity Plan
|
$
|
370
|
|
|
$
|
138
|
|
|
$
|
—
|
|
|
2014 Productivity Plan
|
—
|
|
|
170
|
|
|
295
|
|
|||
|
Total restructuring and impairment charges
|
370
|
|
|
308
|
|
|
295
|
|
|||
|
Other productivity initiatives
|
3
|
|
|
8
|
|
|
16
|
|
|||
|
Total restructuring and impairment charges and other productivity initiatives
|
$
|
373
|
|
|
$
|
316
|
|
|
$
|
311
|
|
|
|
FLNA
|
|
QFNA
|
|
PBNA
|
|
LatAm
|
|
Europe
|
|
AMESA
|
|
APAC
|
|
Corporate
|
||||||||
|
Expected pre-tax charges
|
11
|
%
|
|
2
|
%
|
|
30
|
%
|
|
10
|
%
|
|
25
|
%
|
|
8
|
%
|
|
5
|
%
|
|
9
|
%
|
|
|
2019
|
|
|
2018
|
|
||
|
Cost of sales
|
$
|
115
|
|
|
$
|
3
|
|
|
Selling, general and administrative expenses
|
253
|
|
|
100
|
|
||
|
Other pension and retiree medical benefits expense
|
2
|
|
|
35
|
|
||
|
Total restructuring and impairment charges
|
$
|
370
|
|
|
$
|
138
|
|
|
After-tax amount
|
$
|
303
|
|
|
$
|
109
|
|
|
Net income attributable to PepsiCo per common share
|
$
|
0.21
|
|
|
$
|
0.08
|
|
|
|
2019
|
|
|
2018
|
|
|
Plan to Date
through 12/28/2019
|
|
|||
|
FLNA
|
$
|
22
|
|
|
$
|
31
|
|
|
$
|
53
|
|
|
QFNA
|
2
|
|
|
5
|
|
|
7
|
|
|||
|
PBNA
|
51
|
|
|
40
|
|
|
91
|
|
|||
|
LatAm
|
62
|
|
|
9
|
|
|
71
|
|
|||
|
Europe
|
99
|
|
|
6
|
|
|
105
|
|
|||
|
AMESA
|
38
|
|
|
3
|
|
|
41
|
|
|||
|
APAC
|
47
|
|
|
2
|
|
|
49
|
|
|||
|
Corporate
|
47
|
|
|
7
|
|
|
54
|
|
|||
|
|
368
|
|
|
103
|
|
|
471
|
|
|||
|
Other pension and retiree medical benefits expense
|
2
|
|
|
35
|
|
|
37
|
|
|||
|
Total
|
$
|
370
|
|
|
$
|
138
|
|
|
$
|
508
|
|
|
|
Plan to Date
through 12/28/2019
|
|
|
|
Severance and other employee costs
|
$
|
286
|
|
|
Asset impairments
|
92
|
|
|
|
Other costs (a)
|
130
|
|
|
|
Total
|
$
|
508
|
|
|
(a)
|
Includes other costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees.
|
|
|
Severance and Other Employee Costs
|
|
Asset
Impairments
|
|
Other Costs
|
|
Total
|
||||||||
|
2018 restructuring charges
|
$
|
137
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
138
|
|
|
Non-cash charges and translation
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
||||
|
Liability as of December 29, 2018
|
105
|
|
|
—
|
|
|
1
|
|
|
106
|
|
||||
|
2019 restructuring charges
|
149
|
|
|
92
|
|
|
129
|
|
|
370
|
|
||||
|
Cash payments (a)
|
(138
|
)
|
|
—
|
|
|
(119
|
)
|
|
(257
|
)
|
||||
|
Non-cash charges and translation
|
12
|
|
|
(92
|
)
|
|
10
|
|
|
(70
|
)
|
||||
|
Liability as of December 28, 2019
|
$
|
128
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
149
|
|
|
(a)
|
Excludes cash expenditures of $4 million reported in the cash flow statement in pension and retiree medical contributions.
|
|
|
2018
|
|
|
2017
|
|
||
|
Selling, general and administrative expenses
|
$
|
169
|
|
|
$
|
229
|
|
|
Other pension and retiree medical benefits expense
|
1
|
|
|
66
|
|
||
|
Total restructuring and impairment charges
|
$
|
170
|
|
|
$
|
295
|
|
|
After-tax amount
|
$
|
143
|
|
|
$
|
224
|
|
|
Net income attributable to PepsiCo per common share
|
$
|
0.10
|
|
|
$
|
0.16
|
|
|
|
2018
|
|
|
2017
|
|
||
|
FLNA
|
$
|
8
|
|
|
$
|
67
|
|
|
QFNA
|
2
|
|
|
11
|
|
||
|
PBNA
|
51
|
|
|
54
|
|
||
|
LatAm
|
30
|
|
|
63
|
|
||
|
Europe
|
53
|
|
|
53
|
|
||
|
AMESA
|
15
|
|
|
2
|
|
||
|
APAC (a)
|
12
|
|
|
(5
|
)
|
||
|
Corporate (b)
|
(1
|
)
|
|
50
|
|
||
|
Total
|
$
|
170
|
|
|
$
|
295
|
|
|
(a)
|
Income amount primarily reflects a gain on the sale of property, plant and equipment.
|
|
(b)
|
Income amount primarily relates to other pension and retiree medical benefits.
|
|
|
Severance and Other Employee Costs
|
|
Asset
Impairments
|
|
Other Costs
|
|
Total
|
||||||||
|
Liability as of December 31, 2016
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
96
|
|
|
2017 restructuring charges
|
280
|
|
|
21
|
|
|
(6
|
)
|
(a)
|
295
|
|
||||
|
Cash payments
|
(91
|
)
|
|
—
|
|
|
(22
|
)
|
|
(113
|
)
|
||||
|
Non-cash charges and translation
|
(65
|
)
|
|
(21
|
)
|
|
34
|
|
|
(52
|
)
|
||||
|
Liability as of December 30, 2017
|
212
|
|
|
—
|
|
|
14
|
|
|
226
|
|
||||
|
2018 restructuring charges
|
86
|
|
|
28
|
|
|
56
|
|
|
170
|
|
||||
|
Cash payments (b)
|
(203
|
)
|
|
—
|
|
|
(52
|
)
|
|
(255
|
)
|
||||
|
Non-cash charges and translation
|
(4
|
)
|
|
(28
|
)
|
|
5
|
|
|
(27
|
)
|
||||
|
Liability as of December 29, 2018
|
91
|
|
|
—
|
|
|
23
|
|
|
114
|
|
||||
|
Cash payments
|
(77
|
)
|
|
—
|
|
|
(16
|
)
|
|
(93
|
)
|
||||
|
Non-cash charges and translation
|
(14
|
)
|
|
—
|
|
|
(7
|
)
|
|
(21
|
)
|
||||
|
Liability as of December 28, 2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(a)
|
Income amount represents adjustments for changes in estimates and a gain on the sale of property, plant, and equipment.
|
|
(b)
|
Excludes cash expenditures of $11 million reported in the cash flow statement in pension and retiree medical plan contributions.
|
|
|
Average
Useful Life (Years) |
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Property, plant and equipment, net
|
|
|
|
|
|
|
|
||||||
|
Land
|
|
|
$
|
1,130
|
|
|
$
|
1,078
|
|
|
|
||
|
Buildings and improvements
|
15 - 44
|
|
9,314
|
|
|
8,941
|
|
|
|
||||
|
Machinery and equipment, including fleet and software
|
5 - 15
|
|
29,390
|
|
|
27,715
|
|
|
|
||||
|
Construction in progress
|
|
|
3,169
|
|
|
2,430
|
|
|
|
||||
|
|
|
|
43,003
|
|
|
40,164
|
|
|
|
||||
|
Accumulated depreciation
|
|
|
(23,698
|
)
|
|
(22,575
|
)
|
|
|
||||
|
Total
|
|
|
$
|
19,305
|
|
|
$
|
17,589
|
|
|
|
||
|
Depreciation expense
|
|
|
$
|
2,257
|
|
|
$
|
2,241
|
|
|
$
|
2,227
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
|||||||||||||||||||||
|
|
Average
Useful Life (Years) |
|
Gross
|
|
Accumulated
Amortization |
|
Net
|
|
Gross
|
|
Accumulated
Amortization |
|
Net
|
|
|
||||||||||||||
|
Amortizable intangible assets, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Acquired franchise rights
|
56 – 60
|
|
$
|
846
|
|
|
$
|
(158
|
)
|
|
$
|
688
|
|
|
$
|
838
|
|
|
$
|
(140
|
)
|
|
$
|
698
|
|
|
|
||
|
Reacquired franchise rights
|
5 – 14
|
|
106
|
|
|
(105
|
)
|
|
1
|
|
|
106
|
|
|
(105
|
)
|
|
1
|
|
|
|
||||||||
|
Brands
|
20 – 40
|
|
1,326
|
|
|
(1,066
|
)
|
|
260
|
|
|
1,306
|
|
|
(1,032
|
)
|
|
274
|
|
|
|
||||||||
|
Other identifiable intangibles (a)
|
10 – 24
|
|
810
|
|
|
(326
|
)
|
|
484
|
|
|
959
|
|
|
(288
|
)
|
|
671
|
|
|
|
||||||||
|
Total
|
|
|
$
|
3,088
|
|
|
$
|
(1,655
|
)
|
|
$
|
1,433
|
|
|
$
|
3,209
|
|
|
$
|
(1,565
|
)
|
|
$
|
1,644
|
|
|
|
||
|
Amortization expense
|
|
|
|
|
|
|
$
|
81
|
|
|
|
|
|
|
$
|
69
|
|
|
$
|
68
|
|
||||||||
|
(a)
|
The change from 2018 to 2019 primarily reflects revisions to the purchase price allocation for our acquisition of SodaStream.
|
|
|
2020
|
|
|
2021
|
|
|
2022
|
|
|
2023
|
|
|
2024
|
|
|||||
|
Five-year projected amortization
|
$
|
82
|
|
|
$
|
80
|
|
|
$
|
77
|
|
|
$
|
75
|
|
|
$
|
74
|
|
|
|
Balance,
Beginning 2018 |
|
Acquisitions/
(Divestitures) |
|
Translation
and Other |
|
Balance,
End of 2018 |
|
Acquisitions/ (Divestitures)
|
|
Translation
and Other |
|
Balance,
End of 2019 |
||||||||||||||
|
FLNA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Goodwill
|
$
|
280
|
|
|
$
|
28
|
|
|
$
|
(11
|
)
|
|
$
|
297
|
|
|
$
|
(3
|
)
|
|
$
|
5
|
|
|
$
|
299
|
|
|
Brands
|
25
|
|
|
138
|
|
|
(2
|
)
|
|
161
|
|
|
—
|
|
|
1
|
|
|
162
|
|
|||||||
|
Total
|
305
|
|
|
166
|
|
|
(13
|
)
|
|
458
|
|
|
(3
|
)
|
|
6
|
|
|
461
|
|
|||||||
|
QFNA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Goodwill
|
175
|
|
|
9
|
|
|
—
|
|
|
184
|
|
|
6
|
|
|
(1
|
)
|
|
189
|
|
|||||||
|
Brands
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|
(14
|
)
|
|
—
|
|
|
11
|
|
|||||||
|
Total
|
175
|
|
|
34
|
|
|
—
|
|
|
209
|
|
|
(8
|
)
|
|
(1
|
)
|
|
200
|
|
|||||||
|
PBNA (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Goodwill
|
9,854
|
|
|
—
|
|
|
(41
|
)
|
|
9,813
|
|
|
66
|
|
|
19
|
|
|
9,898
|
|
|||||||
|
Reacquired franchise rights
|
7,126
|
|
|
—
|
|
|
(68
|
)
|
|
7,058
|
|
|
—
|
|
|
31
|
|
|
7,089
|
|
|||||||
|
Acquired franchise rights
|
1,525
|
|
|
—
|
|
|
(15
|
)
|
|
1,510
|
|
|
—
|
|
|
7
|
|
|
1,517
|
|
|||||||
|
Brands
|
353
|
|
|
—
|
|
|
—
|
|
|
353
|
|
|
418
|
|
|
(8
|
)
|
|
763
|
|
|||||||
|
Total
|
18,858
|
|
|
—
|
|
|
(124
|
)
|
|
18,734
|
|
|
484
|
|
|
49
|
|
|
19,267
|
|
|||||||
|
LatAm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Goodwill
|
555
|
|
|
—
|
|
|
(46
|
)
|
|
509
|
|
|
—
|
|
|
(8
|
)
|
|
501
|
|
|||||||
|
Brands
|
141
|
|
|
—
|
|
|
(14
|
)
|
|
127
|
|
|
—
|
|
|
(2
|
)
|
|
125
|
|
|||||||
|
Total
|
696
|
|
|
—
|
|
|
(60
|
)
|
|
636
|
|
|
—
|
|
|
(10
|
)
|
|
626
|
|
|||||||
|
Europe (b) (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Goodwill
|
3,202
|
|
|
526
|
|
|
(367
|
)
|
|
3,361
|
|
|
440
|
|
|
160
|
|
|
3,961
|
|
|||||||
|
Reacquired franchise rights
|
549
|
|
|
(1
|
)
|
|
(51
|
)
|
|
497
|
|
|
—
|
|
|
8
|
|
|
505
|
|
|||||||
|
Acquired franchise rights
|
195
|
|
|
(25
|
)
|
|
(9
|
)
|
|
161
|
|
|
—
|
|
|
(4
|
)
|
|
157
|
|
|||||||
|
Brands
|
2,545
|
|
|
1,993
|
|
|
(350
|
)
|
|
4,188
|
|
|
(139
|
)
|
|
132
|
|
|
4,181
|
|
|||||||
|
Total
|
6,491
|
|
|
2,493
|
|
|
(777
|
)
|
|
8,207
|
|
|
301
|
|
|
296
|
|
|
8,804
|
|
|||||||
|
AMESA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Goodwill
|
437
|
|
|
—
|
|
|
—
|
|
|
437
|
|
|
11
|
|
|
(2
|
)
|
|
446
|
|
|||||||
|
Total
|
437
|
|
|
—
|
|
|
—
|
|
|
437
|
|
|
11
|
|
|
(2
|
)
|
|
446
|
|
|||||||
|
APAC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Goodwill
|
241
|
|
|
—
|
|
|
(34
|
)
|
|
207
|
|
|
—
|
|
|
—
|
|
|
207
|
|
|||||||
|
Brands
|
111
|
|
|
—
|
|
|
(10
|
)
|
|
101
|
|
|
—
|
|
|
(1
|
)
|
|
100
|
|
|||||||
|
Total
|
352
|
|
|
—
|
|
|
(44
|
)
|
|
308
|
|
|
—
|
|
|
(1
|
)
|
|
307
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total goodwill
|
14,744
|
|
|
563
|
|
|
(499
|
)
|
|
14,808
|
|
|
520
|
|
|
173
|
|
|
15,501
|
|
|||||||
|
Total reacquired franchise rights
|
7,675
|
|
|
(1
|
)
|
|
(119
|
)
|
|
7,555
|
|
|
—
|
|
|
39
|
|
|
7,594
|
|
|||||||
|
Total acquired franchise rights
|
1,720
|
|
|
(25
|
)
|
|
(24
|
)
|
|
1,671
|
|
|
—
|
|
|
3
|
|
|
1,674
|
|
|||||||
|
Total brands
|
3,175
|
|
|
2,156
|
|
|
(376
|
)
|
|
4,955
|
|
|
265
|
|
|
122
|
|
|
5,342
|
|
|||||||
|
Total
|
$
|
27,314
|
|
|
$
|
2,693
|
|
|
$
|
(1,018
|
)
|
|
$
|
28,989
|
|
|
$
|
785
|
|
|
$
|
337
|
|
|
$
|
30,111
|
|
|
(a)
|
The change in acquisitions/(divestitures) in 2019 is primarily related to our acquisition of CytoSport Inc.
|
|
(b)
|
The change in acquisitions/(divestitures) in 2019 and 2018 is primarily related to our acquisition of SodaStream. See Note 14 for further information.
|
|
(c)
|
The change in translation and other in 2019 primarily reflects the appreciation of the Russian ruble. The change in translation and other in 2018 primarily reflects the depreciation of the Russian ruble, euro and Pound sterling.
|
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
United States
|
|
$
|
4,123
|
|
|
$
|
3,864
|
|
|
$
|
3,452
|
|
|
Foreign
|
|
5,189
|
|
|
5,325
|
|
|
6,150
|
|
|||
|
|
|
$
|
9,312
|
|
|
$
|
9,189
|
|
|
$
|
9,602
|
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||
|
Current:
|
U.S. Federal
|
$
|
652
|
|
|
$
|
437
|
|
|
$
|
4,925
|
|
|
|
Foreign
|
807
|
|
|
378
|
|
|
724
|
|
|||
|
|
State
|
196
|
|
|
63
|
|
|
136
|
|
|||
|
|
|
1,655
|
|
|
878
|
|
|
5,785
|
|
|||
|
Deferred:
|
U.S. Federal
|
325
|
|
|
140
|
|
|
(1,159
|
)
|
|||
|
|
Foreign
|
(31
|
)
|
|
(4,379
|
)
|
|
(9
|
)
|
|||
|
|
State
|
10
|
|
|
(9
|
)
|
|
77
|
|
|||
|
|
|
304
|
|
|
(4,248
|
)
|
|
(1,091
|
)
|
|||
|
|
|
$
|
1,959
|
|
|
$
|
(3,370
|
)
|
|
$
|
4,694
|
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|
U.S. Federal statutory tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
|
|
State income tax, net of U.S. Federal tax benefit
|
1.6
|
|
|
0.5
|
|
|
0.9
|
|
|
|
Lower taxes on foreign results
|
(0.9
|
)
|
|
(2.2
|
)
|
|
(9.4
|
)
|
|
|
One-time mandatory transition tax - TCJ Act
|
(0.1
|
)
|
|
0.1
|
|
|
41.4
|
|
|
|
Remeasurement of deferred taxes - TCJ Act
|
—
|
|
|
(0.4
|
)
|
|
(15.9
|
)
|
|
|
International reorganizations
|
—
|
|
|
(47.3
|
)
|
|
—
|
|
|
|
Tax settlements
|
—
|
|
|
(7.8
|
)
|
|
—
|
|
|
|
Other, net
|
(0.6
|
)
|
|
(0.6
|
)
|
|
(3.1
|
)
|
|
|
Annual tax rate
|
21.0
|
%
|
|
(36.7
|
)%
|
|
48.9
|
%
|
|
|
|
2019
|
|
|
2018
|
|
||
|
Deferred tax liabilities
|
|
|
|
||||
|
Debt guarantee of wholly-owned subsidiary
|
$
|
578
|
|
|
$
|
578
|
|
|
Property, plant and equipment
|
1,583
|
|
|
1,303
|
|
||
|
Recapture of net operating losses
|
335
|
|
|
414
|
|
||
|
Right-of-use assets
|
345
|
|
|
—
|
|
||
|
Other
|
167
|
|
|
71
|
|
||
|
Gross deferred tax liabilities
|
3,008
|
|
|
2,366
|
|
||
|
Deferred tax assets
|
|
|
|
||||
|
Net carryforwards
|
4,168
|
|
|
4,353
|
|
||
|
Intangible assets other than nondeductible goodwill
|
793
|
|
|
985
|
|
||
|
Share-based compensation
|
94
|
|
|
106
|
|
||
|
Retiree medical benefits
|
154
|
|
|
167
|
|
||
|
Other employee-related benefits
|
350
|
|
|
303
|
|
||
|
Pension benefits
|
104
|
|
|
221
|
|
||
|
Deductible state tax and interest benefits
|
126
|
|
|
110
|
|
||
|
Lease liabilities
|
345
|
|
|
—
|
|
||
|
Other
|
741
|
|
|
739
|
|
||
|
Gross deferred tax assets
|
6,875
|
|
|
6,984
|
|
||
|
Valuation allowances
|
(3,599
|
)
|
|
(3,753
|
)
|
||
|
Deferred tax assets, net
|
3,276
|
|
|
3,231
|
|
||
|
Net deferred tax assets
|
$
|
(268
|
)
|
|
$
|
(865
|
)
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Balance, beginning of year
|
$
|
3,753
|
|
|
$
|
1,163
|
|
|
$
|
1,110
|
|
|
Provision
|
(124
|
)
|
|
2,639
|
|
|
33
|
|
|||
|
Other (deductions)/additions
|
(30
|
)
|
|
(49
|
)
|
|
20
|
|
|||
|
Balance, end of year
|
$
|
3,599
|
|
|
$
|
3,753
|
|
|
$
|
1,163
|
|
|
Jurisdiction
|
|
Years Open to Audit
|
|
Years Currently Under Audit
|
|
United States
|
|
2014-2018
|
|
2014-2016
|
|
Mexico
|
|
2017-2018
|
|
None
|
|
United Kingdom
|
|
2017-2018
|
|
2017
|
|
Canada (Domestic)
|
|
2015-2018
|
|
2015-2016
|
|
Canada (International)
|
|
2010-2018
|
|
2010-2016
|
|
Russia
|
|
2016-2018
|
|
None
|
|
|
2019
|
|
|
2018
|
|
||
|
Balance, beginning of year
|
$
|
1,440
|
|
|
$
|
2,212
|
|
|
Additions for tax positions related to the current year
|
179
|
|
|
142
|
|
||
|
Additions for tax positions from prior years
|
93
|
|
|
197
|
|
||
|
Reductions for tax positions from prior years
|
(201
|
)
|
|
(822
|
)
|
||
|
Settlement payments
|
(74
|
)
|
|
(233
|
)
|
||
|
Statutes of limitations expiration
|
(47
|
)
|
|
(42
|
)
|
||
|
Translation and other
|
5
|
|
|
(14
|
)
|
||
|
Balance, end of year
|
$
|
1,395
|
|
|
$
|
1,440
|
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|||
|
Share-based compensation expense - equity awards
|
$
|
237
|
|
|
$
|
256
|
|
|
$
|
292
|
|
|
|
Share-based compensation expense - liability awards
|
8
|
|
|
20
|
|
|
13
|
|
|
|||
|
Restructuring charges
|
(2
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
|||
|
Total (a)
|
$
|
243
|
|
|
$
|
270
|
|
|
$
|
303
|
|
|
|
Income tax benefits recognized in earnings related to share-based compensation
|
$
|
39
|
|
|
$
|
45
|
|
|
$
|
89
|
|
(b)
|
|
Excess tax benefits related to share-based compensation
|
$
|
50
|
|
|
$
|
48
|
|
|
$
|
115
|
|
|
|
(a)
|
Primarily recorded in selling, general and administrative expenses.
|
|
(b)
|
Reflects tax rates effective for the 2017 tax year.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Expected life
|
5 years
|
|
|
5 years
|
|
|
5 years
|
|
|
Risk-free interest rate
|
2.4
|
%
|
|
2.6
|
%
|
|
2.0
|
%
|
|
Expected volatility
|
14
|
%
|
|
12
|
%
|
|
11
|
%
|
|
Expected dividend yield
|
3.1
|
%
|
|
2.7
|
%
|
|
2.7
|
%
|
|
|
Options(a)
|
|
Weighted-Average Exercise
Price
|
|
Weighted-Average Contractual
Life Remaining
(years)
|
|
Aggregate Intrinsic
Value(b)
|
|||||
|
Outstanding at December 29, 2018
|
15,589
|
|
|
$
|
79.94
|
|
|
|
|
|
||
|
Granted
|
1,286
|
|
|
$
|
118.33
|
|
|
|
|
|
||
|
Exercised
|
(4,882
|
)
|
|
$
|
67.34
|
|
|
|
|
|
||
|
Forfeited/expired
|
(368
|
)
|
|
$
|
94.30
|
|
|
|
|
|
||
|
Outstanding at December 28, 2019
|
11,625
|
|
|
$
|
89.03
|
|
|
4.68
|
|
$
|
563,942
|
|
|
Exercisable at December 28, 2019
|
7,972
|
|
|
$
|
78.27
|
|
|
3.13
|
|
$
|
472,512
|
|
|
Expected to vest as of December 28, 2019
|
3,364
|
|
|
$
|
112.25
|
|
|
8.04
|
|
$
|
85,066
|
|
|
(a)
|
Options are in thousands and include options previously granted under the PBG plan. No additional options or shares were granted under the PBG plan after 2009.
|
|
(b)
|
In thousands.
|
|
|
RSUs/PSUs(a)
|
|
Weighted-Average
Grant-Date Fair Value
|
|
Weighted-Average Contractual Life
Remaining (years)
|
|
Aggregate
Intrinsic
Value(a)
|
|||||
|
Outstanding at December 29, 2018
|
7,175
|
|
|
$
|
105.13
|
|
|
|
|
|
||
|
Granted (b)
|
2,754
|
|
|
$
|
116.87
|
|
|
|
|
|
||
|
Converted
|
(2,642
|
)
|
|
$
|
99.35
|
|
|
|
|
|
||
|
Forfeited
|
(852
|
)
|
|
$
|
111.11
|
|
|
|
|
|
||
|
Actual performance change (c)
|
(55
|
)
|
|
$
|
108.32
|
|
|
|
|
|
||
|
Outstanding at December 28, 2019 (d)
|
6,380
|
|
|
$
|
111.53
|
|
|
1.22
|
|
$
|
877,487
|
|
|
Expected to vest as of December 28, 2019
|
5,876
|
|
|
$
|
111.32
|
|
|
1.19
|
|
$
|
808,220
|
|
|
(a)
|
In thousands.
|
|
(b)
|
Grant activity for all PSUs are disclosed at target.
|
|
(c)
|
Reflects the net number of PSUs above and below target levels based on actual performance measured at the end of the performance period.
|
|
(d)
|
The outstanding PSUs for which the performance period has not ended as of December 28, 2019, at the threshold, target and maximum award levels were zero, 0.7 million and 1.3 million, respectively.
|
|
|
Long-Term Cash
Award(a)
|
|
Balance Sheet Date Fair Value(a)
|
|
Contractual Life Remaining
(years) |
||||
|
Outstanding at December 29, 2018
|
$
|
54,710
|
|
|
|
|
|
||
|
Granted (b)
|
16,112
|
|
|
|
|
|
|||
|
Vested
|
(15,438
|
)
|
|
|
|
|
|||
|
Forfeited
|
(9,465
|
)
|
|
|
|
|
|||
|
Actual performance change (c)
|
(1,695
|
)
|
|
|
|
|
|||
|
Outstanding at December 28, 2019 (d)
|
$
|
44,224
|
|
|
$
|
45,875
|
|
|
1.10
|
|
Expected to Vest at December 28, 2019
|
$
|
42,998
|
|
|
$
|
44,557
|
|
|
1.10
|
|
(a)
|
In thousands.
|
|
(b)
|
Grant activity for all long-term cash awards are disclosed at target.
|
|
(c)
|
Reflects the net number of long-term cash awards above and below target levels based on actual performance measured at the end of the performance period.
|
|
(d)
|
The outstanding long-term cash awards for which the performance period has not ended as of December 28, 2019, at the threshold, target and maximum award levels were zero, 28.5 million and 57.1 million, respectively.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Stock Options
|
|
|
|
|
|
||||||
|
Total number of options granted (a)
|
1,286
|
|
|
1,429
|
|
|
1,481
|
|
|||
|
Weighted-average grant-date fair value of options granted
|
$
|
10.89
|
|
|
$
|
9.80
|
|
|
$
|
8.25
|
|
|
Total intrinsic value of options exercised (a)
|
$
|
275,745
|
|
|
$
|
224,663
|
|
|
$
|
327,860
|
|
|
Total grant-date fair value of options vested (a)
|
$
|
9,838
|
|
|
$
|
15,506
|
|
|
$
|
23,122
|
|
|
RSUs/PSUs
|
|
|
|
|
|
||||||
|
Total number of RSUs/PSUs granted (a)
|
2,754
|
|
|
2,634
|
|
|
2,824
|
|
|||
|
Weighted-average grant-date fair value of RSUs/PSUs granted
|
$
|
116.87
|
|
|
$
|
108.75
|
|
|
$
|
109.92
|
|
|
Total intrinsic value of RSUs/PSUs converted (a)
|
$
|
333,951
|
|
|
$
|
260,287
|
|
|
$
|
380,269
|
|
|
Total grant-date fair value of RSUs/PSUs vested (a)
|
$
|
275,234
|
|
|
$
|
232,141
|
|
|
$
|
264,923
|
|
|
PEPunits
|
|
|
|
|
|
||||||
|
Total intrinsic value of PEPunits converted (a)
|
$
|
—
|
|
|
$
|
30,147
|
|
|
$
|
39,782
|
|
|
Total grant-date fair value of PEPunits vested (a)
|
$
|
—
|
|
|
$
|
9,430
|
|
|
$
|
18,833
|
|
|
(a)
|
In thousands.
|
|
|
Pension
|
|
Retiree Medical
|
||||||||||||||||||||
|
|
U.S.
|
|
International
|
|
|
|
|
||||||||||||||||
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||||
|
Change in projected benefit liability
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Liability at beginning of year
|
$
|
13,807
|
|
|
$
|
14,777
|
|
|
$
|
3,098
|
|
|
$
|
3,490
|
|
|
$
|
996
|
|
|
$
|
1,187
|
|
|
Service cost
|
381
|
|
|
431
|
|
|
73
|
|
|
92
|
|
|
23
|
|
|
32
|
|
||||||
|
Interest cost
|
543
|
|
|
482
|
|
|
97
|
|
|
93
|
|
|
36
|
|
|
34
|
|
||||||
|
Plan amendments
|
15
|
|
|
83
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
|
Participant contributions
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
|
Experience loss/(gain)
|
2,091
|
|
|
(972
|
)
|
|
515
|
|
|
(230
|
)
|
|
36
|
|
|
(147
|
)
|
||||||
|
Benefit payments
|
(341
|
)
|
|
(956
|
)
|
|
(100
|
)
|
|
(114
|
)
|
|
(105
|
)
|
|
(108
|
)
|
||||||
|
Settlement/curtailment
|
(1,268
|
)
|
|
(74
|
)
|
|
(31
|
)
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
||||||
|
Special termination benefits
|
2
|
|
|
36
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1
|
|
||||||
|
Other, including foreign currency adjustment
|
—
|
|
|
—
|
|
|
98
|
|
|
(204
|
)
|
|
2
|
|
|
(3
|
)
|
||||||
|
Liability at end of year
|
$
|
15,230
|
|
|
$
|
13,807
|
|
|
$
|
3,753
|
|
|
$
|
3,098
|
|
|
$
|
988
|
|
|
$
|
996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Change in fair value of plan assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Fair value at beginning of year
|
$
|
12,258
|
|
|
$
|
12,582
|
|
|
$
|
3,090
|
|
|
$
|
3,460
|
|
|
$
|
285
|
|
|
$
|
321
|
|
|
Actual return on plan assets
|
3,101
|
|
|
(789
|
)
|
|
551
|
|
|
(136
|
)
|
|
78
|
|
|
(21
|
)
|
||||||
|
Employer contributions/funding
|
550
|
|
|
1,495
|
|
|
122
|
|
|
120
|
|
|
44
|
|
|
93
|
|
||||||
|
Participant contributions
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
|
Benefit payments
|
(341
|
)
|
|
(956
|
)
|
|
(100
|
)
|
|
(114
|
)
|
|
(105
|
)
|
|
(108
|
)
|
||||||
|
Settlement
|
(1,266
|
)
|
|
(74
|
)
|
|
(31
|
)
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
||||||
|
Other, including foreign currency adjustment
|
—
|
|
|
—
|
|
|
98
|
|
|
(210
|
)
|
|
—
|
|
|
—
|
|
||||||
|
Fair value at end of year
|
$
|
14,302
|
|
|
$
|
12,258
|
|
|
$
|
3,732
|
|
|
$
|
3,090
|
|
|
$
|
302
|
|
|
$
|
285
|
|
|
Funded status
|
$
|
(928
|
)
|
|
$
|
(1,549
|
)
|
|
$
|
(21
|
)
|
|
$
|
(8
|
)
|
|
$
|
(686
|
)
|
|
$
|
(711
|
)
|
|
•
|
Interest cost is the accrued interest on the projected benefit obligation due to the passage of time.
|
|
•
|
Expected return on plan assets is the long-term return we expect to earn on plan investments for our funded plans that will be used to settle future benefit obligations.
|
|
•
|
Amortization of prior service cost/(credit) represents the recognition in the income statement of benefit changes resulting from plan amendments.
|
|
•
|
Amortization of net loss/(gain) represents the recognition in the income statement of changes in the amount of plan assets and the projected benefit obligation based on changes in assumptions and actual experience.
|
|
•
|
Settlement/curtailment loss/(gain) represents the result of actions that effectively eliminate all or a portion of related projected benefit obligations. Settlements are triggered when payouts to settle the projected benefit obligation of a plan due to lump sums or other events exceed the annual service and interest cost. Settlements are recognized when actions are irrevocable and we are relieved of the primary responsibility and risk for projected benefit obligations. Curtailments are due to events such as plant closures or the sale of a business resulting in a reduction of future service or benefits. Curtailment losses are recognized when an event is probable and estimable, while curtailment gains are recognized when an event has occurred (when the related employees terminate or an amendment is adopted).
|
|
•
|
Special termination benefits are the additional benefits offered to employees upon departure due to actions such as restructuring.
|
|
|
Pension
|
|
Retiree Medical
|
||||||||||||||||||||||||||||||||
|
|
U.S.
|
|
International
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||||||||
|
Service cost
|
$
|
381
|
|
|
$
|
431
|
|
|
$
|
401
|
|
|
$
|
73
|
|
|
$
|
92
|
|
|
$
|
91
|
|
|
$
|
23
|
|
|
$
|
32
|
|
|
$
|
28
|
|
|
Other pension and retiree medical benefits expense/(income):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Interest cost
|
$
|
543
|
|
|
$
|
482
|
|
|
$
|
468
|
|
|
$
|
97
|
|
|
$
|
93
|
|
|
$
|
89
|
|
|
$
|
36
|
|
|
$
|
34
|
|
|
$
|
36
|
|
|
Expected return on plan assets
|
(892
|
)
|
|
(943
|
)
|
|
(849
|
)
|
|
(188
|
)
|
|
(197
|
)
|
|
(176
|
)
|
|
(18
|
)
|
|
(19
|
)
|
|
(22
|
)
|
|||||||||
|
Amortization of prior service cost/(credits)
|
10
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(20
|
)
|
|
(25
|
)
|
|||||||||
|
Amortization of net losses/(gains)
|
161
|
|
|
179
|
|
|
123
|
|
|
32
|
|
|
45
|
|
|
53
|
|
|
(27
|
)
|
|
(8
|
)
|
|
(12
|
)
|
|||||||||
|
Settlement/curtailment losses (a)
|
296
|
|
|
8
|
|
|
8
|
|
|
12
|
|
|
6
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
Special termination benefits
|
1
|
|
|
36
|
|
|
60
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|||||||||
|
Total other pension and retiree medical benefits expense/(income)
|
$
|
119
|
|
|
$
|
(235
|
)
|
|
$
|
(189
|
)
|
|
$
|
(47
|
)
|
|
$
|
(51
|
)
|
|
$
|
(23
|
)
|
|
$
|
(28
|
)
|
|
$
|
(12
|
)
|
|
$
|
(21
|
)
|
|
Total
|
$
|
500
|
|
|
$
|
196
|
|
|
$
|
212
|
|
|
$
|
26
|
|
|
$
|
41
|
|
|
$
|
68
|
|
|
$
|
(5
|
)
|
|
$
|
20
|
|
|
$
|
7
|
|
|
(a)
|
In 2019, U.S. includes settlement charges related to the purchase of a group annuity contract of $220 million and a pension lump sum settlement charge of $53 million.
|
|
|
Pension
|
|
Retiree Medical
|
|||||||||||||||||||||||
|
|
U.S.
|
|
International
|
|
|
|
|
|
|
|||||||||||||||||
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Liability discount rate
|
3.3
|
%
|
|
4.4
|
%
|
|
3.7
|
%
|
|
2.5
|
%
|
|
3.4
|
%
|
|
3.0
|
%
|
|
3.1
|
%
|
|
4.2
|
%
|
|
3.5
|
%
|
|
Service cost discount rate
|
4.4
|
%
|
|
3.8
|
%
|
|
4.5
|
%
|
|
4.2
|
%
|
|
3.5
|
%
|
|
3.6
|
%
|
|
4.3
|
%
|
|
3.6
|
%
|
|
4.0
|
%
|
|
Interest cost discount rate
|
4.1
|
%
|
|
3.4
|
%
|
|
3.7
|
%
|
|
3.2
|
%
|
|
2.8
|
%
|
|
2.8
|
%
|
|
3.8
|
%
|
|
3.0
|
%
|
|
3.2
|
%
|
|
Expected return on plan assets
|
7.1
|
%
|
|
7.2
|
%
|
|
7.5
|
%
|
|
5.8
|
%
|
|
6.0
|
%
|
|
6.0
|
%
|
|
6.6
|
%
|
|
6.5
|
%
|
|
7.5
|
%
|
|
Liability rate of salary increases
|
3.1
|
%
|
|
3.1
|
%
|
|
3.1
|
%
|
|
3.3
|
%
|
|
3.7
|
%
|
|
3.7
|
%
|
|
|
|
|
|
|
|||
|
Expense rate of salary increases
|
3.1
|
%
|
|
3.1
|
%
|
|
3.1
|
%
|
|
3.7
|
%
|
|
3.7
|
%
|
|
3.6
|
%
|
|
|
|
|
|
|
|||
|
|
2020
|
|
|
2021
|
|
|
2022
|
|
|
2023
|
|
|
2024
|
|
|
2025 - 2029
|
|
||||||
|
Pension
|
$
|
945
|
|
|
$
|
915
|
|
|
$
|
900
|
|
|
$
|
930
|
|
|
$
|
970
|
|
|
$
|
5,275
|
|
|
Retiree medical (a)
|
$
|
100
|
|
|
$
|
95
|
|
|
$
|
95
|
|
|
$
|
90
|
|
|
$
|
85
|
|
|
$
|
355
|
|
|
(a)
|
Expected future benefit payments for our retiree medical plans do not reflect any estimated subsidies expected to be received under the 2003 Medicare Act. Subsidies are expected to be approximately $2 million for each of the years from 2020 through 2024 and approximately $4 million in total for 2025 through 2029.
|
|
|
Pension
|
|
Retiree Medical
|
||||||||||||||||||||
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||||
|
Discretionary (a)
|
$
|
417
|
|
|
$
|
1,417
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
Non-discretionary
|
255
|
|
|
198
|
|
|
158
|
|
|
44
|
|
|
56
|
|
|
56
|
|
||||||
|
Total
|
$
|
672
|
|
|
$
|
1,615
|
|
|
$
|
164
|
|
|
$
|
44
|
|
|
$
|
93
|
|
|
$
|
56
|
|
|
(a)
|
Includes $400 million contribution in 2019 and $1.4 billion contribution in 2018 to fund Plan A in the United States.
|
|
|
2020
|
|
|
2019
|
|
|
Fixed income
|
50
|
%
|
|
47
|
%
|
|
U.S. equity
|
25
|
%
|
|
29
|
%
|
|
International equity
|
21
|
%
|
|
20
|
%
|
|
Real estate
|
4
|
%
|
|
4
|
%
|
|
|
2019
|
|
2018
|
||||||||||||||||
|
|
Total
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
Total
|
||||||||||
|
U.S. plan assets (a)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity securities, including preferred stock (b)
|
$
|
6,605
|
|
|
$
|
6,605
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,605
|
|
|
Government securities (c)
|
2,154
|
|
|
—
|
|
|
2,154
|
|
|
—
|
|
|
1,674
|
|
|||||
|
Corporate bonds (c)
|
4,737
|
|
|
—
|
|
|
4,737
|
|
|
—
|
|
|
4,145
|
|
|||||
|
Mortgage-backed securities (c)
|
159
|
|
|
—
|
|
|
159
|
|
|
—
|
|
|
212
|
|
|||||
|
Contracts with insurance companies (d)
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|||||
|
Cash and cash equivalents
|
275
|
|
|
275
|
|
|
—
|
|
|
—
|
|
|
215
|
|
|||||
|
Sub-total U.S. plan assets
|
13,939
|
|
|
$
|
6,880
|
|
|
$
|
7,050
|
|
|
$
|
9
|
|
|
11,860
|
|
||
|
Real estate commingled funds measured at net asset value (e)
|
605
|
|
|
|
|
|
|
|
|
618
|
|
||||||||
|
Dividends and interest receivable, net of payables
|
60
|
|
|
|
|
|
|
|
|
65
|
|
||||||||
|
Total U.S. plan assets
|
$
|
14,604
|
|
|
|
|
|
|
|
|
$
|
12,543
|
|
||||||
|
International plan assets
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity securities (b)
|
$
|
1,973
|
|
|
$
|
1,941
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
1,651
|
|
|
Government securities (c)
|
524
|
|
|
—
|
|
|
524
|
|
|
—
|
|
|
433
|
|
|||||
|
Corporate bonds (c)
|
585
|
|
|
—
|
|
|
585
|
|
|
—
|
|
|
478
|
|
|||||
|
Fixed income commingled funds (f)
|
384
|
|
|
384
|
|
|
—
|
|
|
—
|
|
|
356
|
|
|||||
|
Contracts with insurance companies (d)
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
36
|
|
|||||
|
Cash and cash equivalents
|
24
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|||||
|
Sub-total international plan assets
|
3,532
|
|
|
$
|
2,349
|
|
|
$
|
1,141
|
|
|
$
|
42
|
|
|
2,981
|
|
||
|
Real estate commingled funds measured at net asset value (e)
|
193
|
|
|
|
|
|
|
|
|
102
|
|
||||||||
|
Dividends and interest receivable
|
7
|
|
|
|
|
|
|
|
|
7
|
|
||||||||
|
Total international plan assets
|
$
|
3,732
|
|
|
|
|
|
|
|
|
$
|
3,090
|
|
||||||
|
(a)
|
2019 and 2018 amounts include $302 million and $285 million, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.
|
|
(b)
|
The equity securities portfolio was invested in U.S. and international common stock and commingled funds, and the preferred stock portfolio in the U.S. was invested in domestic and international corporate preferred stock investments. The common stock is based on quoted prices in active markets. The commingled funds are based on the published price of the fund and the U.S. commingled funds include one large-cap fund that represents 16% and 15% of total U.S. plan assets for 2019 and 2018, respectively. The preferred stock investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets.
|
|
(c)
|
These investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets. Corporate bonds of U.S.-based companies represent 28% of total U.S. plan assets for both 2019 and 2018.
|
|
(d)
|
Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable. The changes in Level 3 amounts were not significant in the years ended December 28, 2019 and December 29, 2018.
|
|
(e)
|
The real estate commingled funds include investments in limited partnerships. These funds are based on the net asset value of the appraised value of investments owned by these funds as determined by independent third parties using inputs that are not observable. The majority of the funds are redeemable quarterly subject to availability of cash and have notice periods ranging from 45 to 90 days.
|
|
(f)
|
Based on the published price of the fund.
|
|
|
2020
|
|
2019
|
||
|
Average increase assumed
|
6
|
%
|
|
6
|
%
|
|
Ultimate projected increase
|
5
|
%
|
|
5
|
%
|
|
Year of ultimate projected increase
|
2039
|
|
|
2039
|
|
|
|
2019(a)
|
|
|
2018(a)
|
|
||
|
Short-term debt obligations (b)
|
|
|
|
||||
|
Current maturities of long-term debt
|
$
|
2,848
|
|
|
$
|
3,953
|
|
|
Other borrowings (6.4% and 6.0%)
|
72
|
|
|
73
|
|
||
|
|
$
|
2,920
|
|
|
$
|
4,026
|
|
|
Long-term debt obligations (b)
|
|
|
|
||||
|
Notes due 2019 (3.1%)
|
—
|
|
|
3,948
|
|
||
|
Notes due 2020 (2.7% and 3.9%)
|
2,840
|
|
|
3,784
|
|
||
|
Notes due 2021 (2.4% and 3.1%)
|
3,276
|
|
|
3,257
|
|
||
|
Notes due 2022 (2.7% and 2.8%)
|
3,831
|
|
|
3,802
|
|
||
|
Notes due 2023 (2.8% and 2.9%)
|
1,272
|
|
|
1,270
|
|
||
|
Notes due 2024 (3.4% and 3.2%)
|
1,839
|
|
|
1,816
|
|
||
|
Notes due 2025-2049 (3.4% and 3.7%)
|
18,910
|
|
|
14,345
|
|
||
|
Other, due 2019-2026 (1.3% and 1.3%)
|
28
|
|
|
26
|
|
||
|
|
31,996
|
|
|
32,248
|
|
||
|
Less: current maturities of long-term debt obligations
|
(2,848
|
)
|
|
(3,953
|
)
|
||
|
Total
|
$
|
29,148
|
|
|
$
|
28,295
|
|
|
(a)
|
Amounts are shown net of unamortized net discounts of $163 million and $119 million for 2019 and 2018, respectively.
|
|
(b)
|
The interest rates presented reflect weighted-average effective interest rates at year-end. Certain of our fixed rate indebtedness have been swapped to floating rates through the use of interest rate derivative instruments. See Note 9 for further information regarding our interest rate derivative instruments.
|
|
Interest Rate
|
|
|
Maturity Date
|
|
Amount(a)
|
|
|
|
|
0.750
|
%
|
|
March 2027
|
|
€
|
500
|
|
(b)
|
|
1.125
|
%
|
|
March 2031
|
|
€
|
500
|
|
(b)
|
|
2.625
|
%
|
|
July 2029
|
|
$
|
1,000
|
|
|
|
3.375
|
%
|
|
July 2049
|
|
$
|
1,000
|
|
|
|
0.875
|
%
|
|
October 2039
|
|
€
|
500
|
|
(b)
|
|
2.875
|
%
|
|
October 2049
|
|
$
|
1,000
|
|
|
|
(a)
|
Represents gross proceeds from issuances of long-term debt excluding debt issuance costs, discounts and premiums.
|
|
(b)
|
These notes, issued in euros, were designated as net investment hedges to partially offset the effects of foreign currency on our investments in certain of our foreign subsidiaries.
|
|
Interest Rate
|
|
Maturity Date
|
|
Amount Tendered
|
|||
|
7.290
|
%
|
|
September 2026
|
|
$
|
11
|
|
|
7.440
|
%
|
|
September 2026
|
|
$
|
4
|
|
|
7.000
|
%
|
|
March 2029
|
|
$
|
357
|
|
|
5.500
|
%
|
|
May 2035
|
|
$
|
138
|
|
|
4.875
|
%
|
|
November 2040
|
|
$
|
410
|
|
|
5.500
|
%
|
|
January 2040
|
|
$
|
408
|
|
|
Interest Rate
|
|
Maturity Date
|
|
Amount Exchanged
|
|||
|
7.290
|
%
|
|
September 2026
|
|
$
|
88
|
|
|
7.440
|
%
|
|
September 2026
|
|
$
|
21
|
|
|
7.000
|
%
|
|
March 2029
|
|
$
|
516
|
|
|
5.500
|
%
|
|
May 2035
|
|
$
|
107
|
|
|
•
|
commodity prices, affecting the cost of our raw materials and energy;
|
|
•
|
foreign exchange rates and currency restrictions; and
|
|
•
|
interest rates.
|
|
|
|
|
2019
|
|
2018
|
||||||||||||
|
|
Fair Value Hierarchy Levels(a)
|
|
Assets(a)
|
|
Liabilities(a)
|
|
Assets(a)
|
|
Liabilities(a)
|
||||||||
|
Available-for-sale debt securities (b)
|
2
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,658
|
|
|
$
|
—
|
|
|
Short-term investments (c)
|
1
|
|
$
|
229
|
|
|
$
|
—
|
|
|
$
|
196
|
|
|
$
|
—
|
|
|
Prepaid forward contracts (d)
|
2
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
Deferred compensation (e)
|
2
|
|
$
|
—
|
|
|
$
|
468
|
|
|
$
|
—
|
|
|
$
|
450
|
|
|
Derivatives designated as fair value hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest rate (f)
|
2
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
108
|
|
|
Derivatives designated as cash flow hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
|
Foreign exchange (g)
|
2
|
|
$
|
5
|
|
|
$
|
32
|
|
|
$
|
44
|
|
|
$
|
14
|
|
|
Interest rate (g)
|
2
|
|
—
|
|
|
390
|
|
|
—
|
|
|
323
|
|
||||
|
Commodity (h)
|
1
|
|
2
|
|
|
5
|
|
|
—
|
|
|
1
|
|
||||
|
Commodity (i)
|
2
|
|
2
|
|
|
5
|
|
|
—
|
|
|
3
|
|
||||
|
|
|
|
$
|
9
|
|
|
$
|
432
|
|
|
$
|
44
|
|
|
$
|
341
|
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
|
Foreign exchange (g)
|
2
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
10
|
|
|
Commodity (h)
|
1
|
|
23
|
|
|
7
|
|
|
2
|
|
|
17
|
|
||||
|
Commodity (i)
|
2
|
|
6
|
|
|
24
|
|
|
5
|
|
|
92
|
|
||||
|
|
|
|
$
|
32
|
|
|
$
|
33
|
|
|
$
|
10
|
|
|
$
|
119
|
|
|
Total derivatives at fair value (j)
|
|
|
$
|
41
|
|
|
$
|
470
|
|
|
$
|
55
|
|
|
$
|
568
|
|
|
Total
|
|
|
$
|
287
|
|
|
$
|
938
|
|
|
$
|
3,931
|
|
|
$
|
1,018
|
|
|
(a)
|
Fair value hierarchy levels are defined in Note 7. Unless otherwise noted, financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities.
|
|
(b)
|
Based on quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of December 29, 2018, these debt securities were primarily classified as cash equivalents. The decrease in available-for-sale debt securities was due to maturities and sales during the current year.
|
|
(c)
|
Based on the price of index funds. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability.
|
|
(d)
|
Based primarily on the price of our common stock.
|
|
(e)
|
Based on the fair value of investments corresponding to employees’ investment elections.
|
|
(f)
|
Based on LIBOR forward rates. As of December 28, 2019 and December 29, 2018, the carrying amount of hedged fixed-rate debt was $2.2 billion and $7.7 billion, respectively, and classified on our balance sheet within short-term and long-term debt obligations. As of December 28, 2019, the cumulative amount of fair value hedging adjustments to hedged fixed-rate debt was $5 million. As of December 28, 2019, the cumulative amount of fair value hedging adjustments on discontinued hedges was a $49 million loss, which is being amortized over the remaining life of the related debt obligations.
|
|
(g)
|
Based on recently reported market transactions of spot and forward rates.
|
|
(h)
|
Based on quoted contract prices on futures exchange markets.
|
|
(i)
|
Based on recently reported market transactions of swap arrangements.
|
|
(j)
|
Derivative assets and liabilities are presented on a gross basis on our balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on the balance sheet as of December 28, 2019 and December 29, 2018 were not material. Collateral received or posted against our asset or liability positions is classified as restricted cash. See Note 15 for further information.
|
|
|
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)
|
||||||||||||||||||
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|||||||
|
Foreign exchange
|
$
|
(1
|
)
|
|
$
|
9
|
|
|
$
|
57
|
|
|
$
|
(52
|
)
|
|
$
|
3
|
|
|
$
|
(8
|
)
|
|
Interest rate
|
(64
|
)
|
|
53
|
|
|
67
|
|
|
110
|
|
|
7
|
|
|
119
|
|
||||||
|
Commodity
|
(17
|
)
|
|
117
|
|
|
7
|
|
|
3
|
|
|
4
|
|
|
—
|
|
||||||
|
Net investment
|
—
|
|
|
—
|
|
|
(30
|
)
|
|
(77
|
)
|
|
—
|
|
|
—
|
|
||||||
|
Total
|
$
|
(82
|
)
|
|
$
|
179
|
|
|
$
|
101
|
|
|
$
|
(16
|
)
|
|
$
|
14
|
|
|
$
|
111
|
|
|
(a)
|
Foreign exchange derivative losses/gains are primarily included in selling, general and administrative expenses. Interest rate derivative losses/gains are primarily from fair value hedges and are included in interest expense. These losses/gains are substantially offset by decreases/increases in the value of the underlying debt, which are also included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity.
|
|
(b)
|
Foreign exchange derivative losses/gains are primarily included in cost of sales. Interest rate derivative losses/gains are included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity.
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
Income
|
|
Shares(a)
|
|
Income
|
|
Shares(a)
|
|
Income
|
|
Shares(a)
|
|||||||||
|
Net income attributable to PepsiCo
|
$
|
7,314
|
|
|
|
|
$
|
12,515
|
|
|
|
|
$
|
4,857
|
|
|
|
|||
|
Preferred stock:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Redemption premium (b)
|
—
|
|
|
|
|
(2
|
)
|
|
|
|
(4
|
)
|
|
|
||||||
|
Net income available for PepsiCo common shareholders
|
$
|
7,314
|
|
|
1,399
|
|
|
$
|
12,513
|
|
|
1,415
|
|
|
$
|
4,853
|
|
|
1,425
|
|
|
Basic net income attributable to PepsiCo per common share
|
$
|
5.23
|
|
|
|
|
$
|
8.84
|
|
|
|
|
$
|
3.40
|
|
|
|
|||
|
Net income available for PepsiCo common shareholders
|
$
|
7,314
|
|
|
1,399
|
|
|
$
|
12,513
|
|
|
1,415
|
|
|
$
|
4,853
|
|
|
1,425
|
|
|
Dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Stock options, RSUs, PSUs, PEPunits and Other (c)
|
—
|
|
|
8
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
12
|
|
|||
|
Employee stock ownership plan (ESOP) convertible preferred stock
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|||
|
Diluted
|
$
|
7,314
|
|
|
1,407
|
|
|
$
|
12,515
|
|
|
1,425
|
|
|
$
|
4,857
|
|
|
1,438
|
|
|
Diluted net income attributable to PepsiCo per common share
|
$
|
5.20
|
|
|
|
|
$
|
8.78
|
|
|
|
|
$
|
3.38
|
|
|
|
|||
|
(a)
|
Weighted-average common shares outstanding (in millions).
|
|
(b)
|
See Note 11 for further information.
|
|
(c)
|
The dilutive effect of these securities is calculated using the treasury stock method.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Out-of-the-money options (a)
|
0.3
|
|
|
0.7
|
|
|
0.4
|
|
|||
|
Average exercise price per option
|
$
|
117.55
|
|
|
$
|
109.83
|
|
|
$
|
110.12
|
|
|
(a)
|
In millions.
|
|
|
Currency Translation Adjustment
|
|
Cash Flow Hedges
|
|
Pension and Retiree Medical
|
|
Available-For-Sale Securities
|
|
Other
|
|
Accumulated Other Comprehensive Loss Attributable to PepsiCo
|
||||||||||||
|
Balance as of December 31, 2016 (a)
|
$
|
(11,386
|
)
|
|
$
|
83
|
|
|
$
|
(2,645
|
)
|
|
$
|
64
|
|
|
$
|
(35
|
)
|
|
$
|
(13,919
|
)
|
|
Other comprehensive (loss)/income before reclassifications (b)
|
1,049
|
|
|
130
|
|
|
(375
|
)
|
|
25
|
|
|
—
|
|
|
829
|
|
||||||
|
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
(171
|
)
|
|
158
|
|
|
(99
|
)
|
|
—
|
|
|
(112
|
)
|
||||||
|
Net other comprehensive (loss)/income
|
1,049
|
|
|
(41
|
)
|
|
(217
|
)
|
|
(74
|
)
|
|
—
|
|
|
717
|
|
||||||
|
Tax amounts
|
60
|
|
|
5
|
|
|
58
|
|
|
6
|
|
|
16
|
|
|
145
|
|
||||||
|
Balance as of December 30, 2017 (a)
|
(10,277
|
)
|
|
47
|
|
|
(2,804
|
)
|
|
(4
|
)
|
|
(19
|
)
|
|
(13,057
|
)
|
||||||
|
Other comprehensive (loss)/income before reclassifications (c)
|
(1,664
|
)
|
|
(61
|
)
|
|
(813
|
)
|
|
6
|
|
|
—
|
|
|
(2,532
|
)
|
||||||
|
Amounts reclassified from accumulated other comprehensive loss
|
44
|
|
|
111
|
|
|
218
|
|
|
—
|
|
|
—
|
|
|
373
|
|
||||||
|
Net other comprehensive (loss)/income
|
(1,620
|
)
|
|
50
|
|
|
(595
|
)
|
|
6
|
|
|
—
|
|
|
(2,159
|
)
|
||||||
|
Tax amounts
|
(21
|
)
|
|
(10
|
)
|
|
128
|
|
|
—
|
|
|
—
|
|
|
97
|
|
||||||
|
Balance as of December 29, 2018 (a)
|
(11,918
|
)
|
|
87
|
|
|
(3,271
|
)
|
|
2
|
|
|
(19
|
)
|
|
(15,119
|
)
|
||||||
|
Other comprehensive (loss)/income before reclassifications (d)
|
636
|
|
|
(131
|
)
|
|
(89
|
)
|
|
(2
|
)
|
|
—
|
|
|
414
|
|
||||||
|
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
14
|
|
|
468
|
|
|
—
|
|
|
—
|
|
|
482
|
|
||||||
|
Net other comprehensive (loss)/income
|
636
|
|
|
(117
|
)
|
|
379
|
|
|
(2
|
)
|
|
—
|
|
|
896
|
|
||||||
|
Tax amounts
|
(8
|
)
|
|
27
|
|
|
(96
|
)
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
||||||
|
Balance as of December 28, 2019 (a)
|
$
|
(11,290
|
)
|
|
$
|
(3
|
)
|
|
$
|
(2,988
|
)
|
|
$
|
—
|
|
|
$
|
(19
|
)
|
|
$
|
(14,300
|
)
|
|
(a)
|
Pension and retiree medical amounts are net of taxes of $1,280 million as of December 31, 2016, $1,338 million as of December 30, 2017, $1,466 million as of December 29, 2018 and $1,370 million as of December 28, 2019.
|
|
(b)
|
Currency translation adjustment primarily reflects the appreciation of the euro, Russian ruble, Pound sterling and Canadian dollar.
|
|
(c)
|
Currency translation adjustment primarily reflects the depreciation of the Russian ruble, Canadian dollar, Pound sterling and Brazilian real.
|
|
(d)
|
Currency translation adjustment primarily reflects the appreciation of the Russian ruble, Canadian dollar, Mexican peso and Pound sterling.
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Loss
|
|
Affected Line Item in the Income Statement
|
||||||||||
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|
|||
|
Currency translation:
|
|
|
|
|
|
|
|
||||||
|
Divestitures
|
$
|
—
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
|
|
|
|
|
||||||
|
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||
|
Foreign exchange contracts
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
Net revenue
|
|
Foreign exchange contracts
|
2
|
|
|
(7
|
)
|
|
10
|
|
|
Cost of sales
|
|||
|
Interest rate derivatives
|
7
|
|
|
119
|
|
|
(184
|
)
|
|
Interest expense
|
|||
|
Commodity contracts
|
3
|
|
|
3
|
|
|
4
|
|
|
Cost of sales
|
|||
|
Commodity contracts
|
1
|
|
|
(3
|
)
|
|
(1
|
)
|
|
Selling, general and administrative expenses
|
|||
|
Net losses/(gains) before tax
|
14
|
|
|
111
|
|
|
(171
|
)
|
|
|
|||
|
Tax amounts
|
(2
|
)
|
|
(27
|
)
|
|
64
|
|
|
|
|||
|
Net losses/(gains) after tax
|
$
|
12
|
|
|
$
|
84
|
|
|
$
|
(107
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Pension and retiree medical items:
|
|
|
|
|
|
|
|
||||||
|
Amortization of net prior service credit
|
$
|
(9
|
)
|
|
$
|
(17
|
)
|
|
$
|
(24
|
)
|
|
Other pension and retiree medical benefits (expense)/income
|
|
Amortization of net losses
|
169
|
|
|
216
|
|
|
167
|
|
|
Other pension and retiree medical benefits (expense)/income
|
|||
|
Settlement/curtailment losses
|
308
|
|
|
19
|
|
|
15
|
|
|
Other pension and retiree medical benefits (expense)/income
|
|||
|
Net losses before tax
|
468
|
|
|
218
|
|
|
158
|
|
|
|
|||
|
Tax amounts
|
(102
|
)
|
|
(45
|
)
|
|
(44
|
)
|
|
|
|||
|
Net losses after tax
|
$
|
366
|
|
|
$
|
173
|
|
|
$
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||
|
Sale of Britvic securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(99
|
)
|
|
Selling, general and administrative expenses
|
|
Tax amount
|
—
|
|
|
—
|
|
|
10
|
|
|
|
|||
|
Net gain after tax
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(89
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total net losses/(gains) reclassified for the year, net of tax
|
$
|
378
|
|
|
$
|
301
|
|
|
$
|
(82
|
)
|
|
|
|
|
2019
|
|
|
|
Operating lease cost (a)
|
$
|
474
|
|
|
Variable lease cost (b)
|
$
|
101
|
|
|
Short-term lease cost (c)
|
$
|
379
|
|
|
(a)
|
Includes right-of-use asset amortization of $412 million.
|
|
(b)
|
Primarily related to adjustments for inflation, common-area maintenance and property tax.
|
|
(c)
|
Not recorded on our balance sheet.
|
|
|
2019
|
|
|
|
Operating cash flow information:
|
|
||
|
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
478
|
|
|
Non-cash activity:
|
|
||
|
Right-of-use assets obtained in exchange for lease obligations
|
$
|
479
|
|
|
|
|
Balance Sheet Classification
|
|
2019
|
|
|
|
Right-of-use assets
|
|
Other assets
|
|
$
|
1,548
|
|
|
Current lease liabilities
|
|
Accounts payable and other current liabilities
|
|
$
|
442
|
|
|
Non-current lease liabilities
|
|
Other liabilities
|
|
$
|
1,118
|
|
|
|
2019
|
|
|
Weighted-average remaining lease term
|
6 years
|
|
|
Weighted-average discount rate
|
4
|
%
|
|
2020
|
$
|
501
|
|
|
2021
|
374
|
|
|
|
2022
|
280
|
|
|
|
2023
|
183
|
|
|
|
2024
|
117
|
|
|
|
2025 and beyond
|
308
|
|
|
|
Total lease payments
|
1,763
|
|
|
|
Less: Imputed interest
|
(203
|
)
|
|
|
Present value of lease liabilities
|
$
|
1,560
|
|
|
2019
|
$
|
459
|
|
|
2020
|
406
|
|
|
|
2021
|
294
|
|
|
|
2022
|
210
|
|
|
|
2023
|
161
|
|
|
|
2024 and beyond
|
310
|
|
|
|
Total
|
$
|
1,840
|
|
|
|
2018
|
|
|
2017
|
|
||
|
Rent expense
|
$
|
771
|
|
|
$
|
742
|
|
|
Inventories
|
$
|
176
|
|
|
Property, plant and equipment
|
193
|
|
|
|
Amortizable intangible assets
|
284
|
|
|
|
Nonamortizable intangible asset (brand)
|
1,840
|
|
|
|
Other assets and liabilities
|
210
|
|
|
|
Net deferred income taxes
|
(303
|
)
|
|
|
Total identifiable net assets
|
$
|
2,400
|
|
|
Goodwill
|
943
|
|
|
|
Total purchase price
|
$
|
3,343
|
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Accounts and notes receivable
|
|
|
|
|
|
||||||
|
Trade receivables
|
$
|
6,447
|
|
|
$
|
6,079
|
|
|
|
||
|
Other receivables
|
1,480
|
|
|
1,164
|
|
|
|
||||
|
Total
|
7,927
|
|
|
7,243
|
|
|
|
||||
|
Allowance, beginning of year
|
101
|
|
|
129
|
|
|
$
|
134
|
|
||
|
Net amounts charged to expense
|
22
|
|
|
16
|
|
|
26
|
|
|||
|
Deductions (a)
|
(30
|
)
|
|
(33
|
)
|
|
(35
|
)
|
|||
|
Other (b)
|
12
|
|
|
(11
|
)
|
|
4
|
|
|||
|
Allowance, end of year
|
105
|
|
|
101
|
|
|
$
|
129
|
|
||
|
Net receivables
|
$
|
7,822
|
|
|
$
|
7,142
|
|
|
|
||
|
|
|
|
|
|
|
||||||
|
Inventories (c)
|
|
|
|
|
|
||||||
|
Raw materials and packaging
|
$
|
1,395
|
|
|
$
|
1,312
|
|
|
|
||
|
Work-in-process
|
200
|
|
|
178
|
|
|
|
||||
|
Finished goods
|
1,743
|
|
|
1,638
|
|
|
|
||||
|
Total
|
$
|
3,338
|
|
|
$
|
3,128
|
|
|
|
||
|
|
|
|
|
|
|
||||||
|
Other assets
|
|
|
|
|
|
||||||
|
Noncurrent notes and accounts receivable
|
$
|
85
|
|
|
$
|
86
|
|
|
|
||
|
Deferred marketplace spending
|
147
|
|
|
112
|
|
|
|
||||
|
Pension plans (d)
|
846
|
|
|
269
|
|
|
|
||||
|
Right-of-use assets (e)
|
1,548
|
|
|
—
|
|
|
|
||||
|
Other
|
385
|
|
|
293
|
|
|
|
||||
|
Total
|
$
|
3,011
|
|
|
$
|
760
|
|
|
|
||
|
|
|
|
|
|
|
||||||
|
Accounts payable and other current liabilities
|
|
|
|
|
|
||||||
|
Accounts payable
|
$
|
8,013
|
|
|
$
|
7,213
|
|
|
|
||
|
Accrued marketplace spending
|
2,765
|
|
|
2,541
|
|
|
|
||||
|
Accrued compensation and benefits
|
1,835
|
|
|
1,755
|
|
|
|
||||
|
Dividends payable
|
1,351
|
|
|
1,329
|
|
|
|
||||
|
SodaStream consideration payable
|
58
|
|
|
1,997
|
|
|
|
||||
|
Current lease liabilities (e)
|
442
|
|
|
—
|
|
|
|
||||
|
Other current liabilities
|
3,077
|
|
|
3,277
|
|
|
|
||||
|
Total
|
$
|
17,541
|
|
|
$
|
18,112
|
|
|
|
||
|
(a)
|
Includes accounts written off.
|
|
(b)
|
Includes adjustments related primarily to currency translation and other adjustments.
|
|
(c)
|
Approximately 7% and 5% of the inventory cost in 2019 and 2018, respectively, were computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material.
|
|
(d)
|
See Note 7 for further information.
|
|
(e)
|
See Note 13 for further information.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
Interest paid (a)
|
$
|
1,076
|
|
|
$
|
1,388
|
|
|
$
|
1,123
|
|
|
Income taxes paid, net of refunds (b)
|
$
|
2,226
|
|
|
$
|
1,203
|
|
|
$
|
1,962
|
|
|
(a)
|
In 2018, excludes the premiums paid in accordance with the debt transactions discussed in Note 8.
|
|
(b)
|
In 2019 and 2018, includes tax payments of $423 million and $115 million, respectively, related to the TCJ Act.
|
|
|
2019
|
|
|
2018
|
|
||
|
Cash and cash equivalents
|
$
|
5,509
|
|
|
$
|
8,721
|
|
|
Restricted cash (a)
|
—
|
|
|
1,997
|
|
||
|
Restricted cash included in other assets (b)
|
61
|
|
|
51
|
|
||
|
Total cash and cash equivalents and restricted cash
|
$
|
5,570
|
|
|
$
|
10,769
|
|
|
(a)
|
In 2018, primarily represents consideration held by our paying agent in connection with our acquisition of SodaStream.
|
|
(b)
|
Primarily relates to collateral posted against our derivative asset or liability positions.
|
|
|
2019
|
|
2018
|
||||||||||||||||||||||||||||
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
||||||||
|
Net revenue
|
$
|
12,884
|
|
|
$
|
16,449
|
|
|
$
|
17,188
|
|
|
$
|
20,640
|
|
|
$
|
12,562
|
|
|
$
|
16,090
|
|
|
$
|
16,485
|
|
|
$
|
19,524
|
|
|
Gross profit
|
$
|
7,196
|
|
|
$
|
9,045
|
|
|
$
|
9,494
|
|
|
$
|
11,294
|
|
|
$
|
6,907
|
|
|
$
|
8,827
|
|
|
$
|
8,958
|
|
|
$
|
10,588
|
|
|
Operating profit
|
$
|
2,008
|
|
|
$
|
2,729
|
|
|
$
|
2,855
|
|
|
$
|
2,699
|
|
|
$
|
1,807
|
|
|
$
|
3,028
|
|
|
$
|
2,844
|
|
|
$
|
2,431
|
|
|
Mark-to-market net impact (a)
|
$
|
60
|
|
|
$
|
(6
|
)
|
|
$
|
(4
|
)
|
|
$
|
62
|
|
|
$
|
(31
|
)
|
|
$
|
3
|
|
|
$
|
(29
|
)
|
|
$
|
(106
|
)
|
|
Restructuring and impairment charges (b)
|
$
|
(26
|
)
|
|
$
|
(158
|
)
|
|
$
|
(98
|
)
|
|
$
|
(88
|
)
|
|
$
|
(12
|
)
|
|
$
|
(32
|
)
|
|
$
|
(35
|
)
|
|
$
|
(229
|
)
|
|
Inventory fair value adjustments and merger and integration charges (c)
|
$
|
(15
|
)
|
|
$
|
(24
|
)
|
|
$
|
(7
|
)
|
|
$
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
(75
|
)
|
|||
|
Pension-related settlement charges (d)
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
(273
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Net tax related to the TCJ Act (e)
|
$
|
29
|
|
|
—
|
|
|
—
|
|
|
$
|
(21
|
)
|
|
$
|
(1
|
)
|
|
$
|
(777
|
)
|
|
$
|
(76
|
)
|
|
$
|
882
|
|
||
|
Gains on sale of assets (f)
|
—
|
|
|
$
|
32
|
|
|
—
|
|
|
$
|
45
|
|
|
$
|
18
|
|
|
$
|
9
|
|
|
$
|
37
|
|
|
$
|
12
|
|
||
|
Other net tax benefits (g)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
314
|
|
|
$
|
364
|
|
|
$
|
4,386
|
|
|||||
|
Charges related to cash tender and exchange offers (h)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
(253
|
)
|
|||||||
|
Tax reform bonus (i)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
(87
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Gains on beverage refranchising (j)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
144
|
|
|
—
|
|
|
$
|
58
|
|
||||||
|
Provision for/(benefit from) income taxes (e)(f)
|
$
|
446
|
|
|
$
|
524
|
|
|
$
|
559
|
|
|
$
|
430
|
|
|
$
|
304
|
|
|
$
|
1,070
|
|
|
$
|
188
|
|
|
$
|
(4,932
|
)
|
|
Net income attributable to PepsiCo
|
$
|
1,413
|
|
|
$
|
2,035
|
|
|
$
|
2,100
|
|
|
$
|
1,766
|
|
|
$
|
1,343
|
|
|
$
|
1,820
|
|
|
$
|
2,498
|
|
|
$
|
6,854
|
|
|
Net income attributable to PepsiCo per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Basic
|
$
|
1.01
|
|
|
$
|
1.45
|
|
|
$
|
1.50
|
|
|
$
|
1.27
|
|
|
$
|
0.94
|
|
|
$
|
1.28
|
|
|
$
|
1.77
|
|
|
$
|
4.86
|
|
|
Diluted
|
$
|
1.00
|
|
|
$
|
1.44
|
|
|
$
|
1.49
|
|
|
$
|
1.26
|
|
|
$
|
0.94
|
|
|
$
|
1.28
|
|
|
$
|
1.75
|
|
|
$
|
4.83
|
|
|
Cash dividends declared per common share
|
$
|
0.9275
|
|
|
$
|
0.955
|
|
|
$
|
0.955
|
|
|
$
|
0.955
|
|
|
$
|
0.805
|
|
|
$
|
0.9275
|
|
|
$
|
0.9275
|
|
|
$
|
0.9275
|
|
|
(a)
|
Mark-to-market net gains and losses on commodity derivatives in corporate unallocated expenses.
|
|
(b)
|
Expenses related to the 2019 and 2014 Productivity Plans. See Note 3 to our consolidated financial statements for further information.
|
|
(c)
|
In 2019, inventory fair value adjustments and merger and integration charges primarily related to our acquisition of SodaStream. In 2018, merger and integration charges related to our acquisition of SodaStream. See Note 14 to our consolidated financial statements for further information.
|
|
(d)
|
In 2019, pension settlement charges of $220 million related to the purchase of a group annuity contract and settlement charges of $53 million related to one-time lump sum payments to certain former employees who had vested benefits, recorded in other pension and retiree medical benefits expense/income. See Note 7 to our consolidated financial statements for further information.
|
|
(e)
|
Net tax related to the TCJ Act. See Note 5 to our consolidated financial statements for further information.
|
|
(f)
|
In 2019, gains associated with the sale of assets in the following segments: $31 million in FLNA and $46 million in PBNA. In 2018, gains associated with the sale of assets in the following segments: $64 million in PBNA and $12 million in AMESA.
|
|
(g)
|
In 2018, other net tax benefits of $4.3 billion resulting from the reorganization of our international operations, including the intercompany transfer of certain intangible assets. Also in 2018, non-cash tax benefits of $717 million associated with both the conclusion of certain international tax audits and our agreement with the IRS resolving all open matters related to the audits of taxable years 2012 and 2013. See Note 5 to our consolidated financial statements for further information.
|
|
(h)
|
In 2018, interest expense in connection with our cash tender and exchange offers, primarily representing the tender price paid over the carrying value of the tendered notes. See Note 8 to our consolidated financial statements for further information.
|
|
(i)
|
In 2018, bonus extended to certain U.S. employees related to the TCJ Act in the following segments: $44 million in FLNA, $2 million in QFNA and $41 million in PBNA.
|
|
(j)
|
In 2018, gains of $58 million and $144 million associated with refranchising our entire beverage bottling operations and snack distribution operations in CHS in the Europe segment and refranchising a portion of our beverage business in Thailand in the APAC segment, respectively. See Note 14 to our consolidated financial statements for further information.
|
|
(a)1.
|
Financial Statements
|
|
|
The following consolidated financial statements of PepsiCo, Inc. and its affiliates are included herein by reference to the pages indicated on the index appearing in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations”:
|
|
|
Consolidated Statement of Income – Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017
|
|
|
Consolidated Statement of Comprehensive Income – Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017
|
|
|
Consolidated Statement of Cash Flows – Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017
|
|
|
Consolidated Balance Sheet – December 28, 2019 and December 29, 2018
|
|
|
Consolidated Statement of Equity – Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017
|
|
|
Notes to Consolidated Financial Statements, and
|
|
|
Report of Independent Registered Public Accounting Firm.
|
|
(a)2.
|
Financial Statement Schedules
|
|
|
These schedules are omitted because they are not required or because the information is set forth in the financial statements or the notes thereto.
|
|
(a)3.
|
Exhibits
|
|
|
See Index to Exhibits.
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
PepsiCo, Inc. agrees to furnish to the Securities and Exchange Commission, upon request, a copy of any instrument, not otherwise filed herewith, defining the rights of holders of long-term debt of PepsiCo, Inc. and its consolidated subsidiaries and for any of its unconsolidated subsidiaries for which financial statements are required to be filed with the Securities and Exchange Commission.
|
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
4.6
|
|
|
4.7
|
|
|
4.8
|
|
|
4.9
|
|
|
4.10
|
|
|
4.11
|
|
|
4.12
|
|
|
4.13
|
|
|
4.14
|
|
|
4.15
|
|
|
4.16
|
|
|
4.17
|
|
|
4.18
|
|
|
4.19
|
|
|
4.20
|
|
|
4.21
|
|
|
4.22
|
|
|
4.23
|
|
|
4.24
|
|
|
4.25
|
|
|
4.26
|
|
|
4.27
|
|
|
4.28
|
|
|
4.29
|
|
|
4.30
|
|
|
4.31
|
|
|
4.32
|
|
|
4.33
|
|
|
4.34
|
|
|
4.35
|
|
|
4.36
|
|
|
4.37
|
|
|
4.38
|
|
|
4.39
|
|
|
4.40
|
|
|
4.41
|
|
|
4.42
|
|
|
4.43
|
|
|
4.44
|
|
|
4.45
|
|
|
4.46
|
|
|
4.47
|
|
|
4.48
|
|
|
4.49
|
|
|
4.50
|
|
|
4.51
|
|
|
4.52
|
|
|
4.53
|
|
|
4.54
|
|
|
4.55
|
|
|
4.56
|
|
|
4.57
|
|
|
4.58
|
|
|
4.59
|
|
|
4.60
|
|
|
4.61
|
|
|
4.62
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.20
|
|
|
10.21
|
|
|
10.22
|
|
|
10.23
|
|
|
10.24
|
|
|
10.25
|
|
|
10.26
|
|
|
10.27
|
|
|
10.28
|
|
|
10.29
|
|
|
10.30
|
|
|
10.31
|
|
|
10.32
|
|
|
10.33
|
|
|
10.34
|
|
|
10.35
|
|
|
21
|
|
|
23
|
|
|
24
|
|
|
31
|
|
|
32
|
|
|
101
|
The following materials from PepsiCo, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Balance Sheets, (v) the Consolidated Statements of Equity and (vi) Notes to Consolidated Financial Statements.
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104
|
The cover page from the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019, formatted in Inline XBRL and contained in Exhibit 101.
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|
*
|
Management contracts and compensatory plans or arrangements required to be filed as exhibits pursuant to Item 15(a)(3) of this report.
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|
PepsiCo, Inc.
|
|
|
|
|
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|
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By:
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/s/ Ramon L. Laguarta
|
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|
|
Ramon L. Laguarta
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|
Chairman of the Board of Directors and Chief Executive Officer
|
|
|
|
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SIGNATURE
|
TITLE
|
DATE
|
|
/s/ Ramon L. Laguarta
|
Chairman of the Board of Directors
|
February 13, 2020
|
|
Ramon L. Laguarta
|
and Chief Executive Officer
|
|
|
/s/ Hugh F. Johnston
|
Vice Chairman, Executive Vice President
|
February 13, 2020
|
|
Hugh F. Johnston
|
and Chief Financial Officer
|
|
|
/s/ Marie T. Gallagher
|
Senior Vice President and Controller
|
February 13, 2020
|
|
Marie T. Gallagher
|
(Principal Accounting Officer)
|
|
|
/s/ Shona L. Brown
|
Director
|
February 13, 2020
|
|
Shona L. Brown
|
|
|
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/s/ Cesar Conde
|
Director
|
February 13, 2020
|
|
Cesar Conde
|
|
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/s/ Ian M. Cook
|
Director
|
February 13, 2020
|
|
Ian M. Cook
|
|
|
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/s/ Dina Dublon
|
Director
|
February 13, 2020
|
|
Dina Dublon
|
|
|
|
/s/ Richard W. Fisher
|
Director
|
February 13, 2020
|
|
Richard W. Fisher
|
|
|
|
/s/ Michelle Gass
|
Director
|
February 13, 2020
|
|
Michelle Gass
|
|
|
|
/s/ William R. Johnson
|
Director
|
February 13, 2020
|
|
William R. Johnson
|
|
|
|
/s/ David C. Page
|
Director
|
February 13, 2020
|
|
David C. Page
|
|
|
|
/s/ Robert C. Pohlad
|
Director
|
February 13, 2020
|
|
Robert C. Pohlad
|
|
|
|
/s/ Daniel Vasella
|
Director
|
February 13, 2020
|
|
Daniel Vasella
|
|
|
|
/s/ Darren Walker
|
Director
|
February 13, 2020
|
|
Darren Walker
|
|
|
|
/s/ Alberto Weisser
|
Director
|
February 13, 2020
|
|
Alberto Weisser
|
|
|
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