v3.25.2
Basis of Presentation and Our Segments (Tables)
 12 Months Ended
Dec. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Fiscal Period
Our fiscal year ends on the last Saturday of each December, resulting in a 53rd reporting week every five or six years, including in our 2022 financial results. While our North America financial results are reported on a weekly calendar basis, our international operations are reported on a monthly calendar basis. The following chart details our quarterly reporting schedule:
QuarterUnited States and CanadaInternational
First Quarter12 weeksJanuary and February
Second Quarter12 weeksMarch, April and May
Third Quarter12 weeksJune, July and August
Fourth Quarter16 weeks (17 weeks for 2022)September, October, November and December
Schedule of Segment Reporting Information, by Segment [Table Text Block]
Net revenue, significant expenses and operating profit/(loss) of each segment are as follows:
 2024
 PFNAPBNAIB FranchiseEMEALatAm FoodsAsia Pacific FoodsTotal
Net revenue$27,431 $27,769 $4,879 $16,658 $10,568 $4,549 $91,854 
Segment cost of sales (a)
10,245 12,701 1,482 9,639 4,420 2,756 
Segment selling, general and administrative expenses (a)(b)
10,204 11,964 1,689 4,787 4,047 1,402 
Restructuring and impairment charges (c)
161 238 24 116 49 9 
Acquisition and divestiture-related charges (d)
9 8 — — — 5 
Impairment and other charges (e)
9 556 4 145 — — 
Product recall-related impact (f)
184 — — — — — 
Indirect tax impact (g)
— — 218 — — — 
Segment operating profit$6,619 $2,302 $1,462 $1,971 $2,052 $377 $14,783 
Corporate unallocated expenses(1,896)
Operating profit12,887 
Other pension and retiree medical benefits expense(22)
Net interest expense and other(919)
Income before income taxes$11,946 
 2023
 PFNAPBNAIB FranchiseEMEALatAm FoodsAsia Pacific FoodsTotal
Net revenue$28,015 $27,626 $4,559 $16,210 $10,576 $4,485 $91,471 
Segment cost of sales (a)
10,432 12,856 1,478 9,666 4,591 2,711 
Segment selling, general and administrative expenses (a)
10,158 11,808 1,641 4,569 4,056 1,404 
Restructuring and impairment charges (c)
42 41 11 227 29 8 
Acquisition and divestiture-related charges (d)
— 16 — (2)— 2 
Impairment and other charges/credits (e)
— 321 862 (14)2 59 
Product recall-related impact (f)
136 — — — — — 
Segment operating profit$7,247 $2,584 $567 $1,764 $1,898 $301 $14,361 
Corporate unallocated expenses(2,375)
Operating profit11,986 
Other pension and retiree medical benefits income250 
Net interest expense and other(819)
Income before income taxes$11,417 
 2022
 PFNAPBNAIB FranchiseEMEALatAm FoodsAsia Pacific FoodsTotal
Net revenue$26,451 $26,213 $4,328 $16,032 $8,867 $4,501 $86,392 
Segment cost of sales (a)
9,856 12,154 1,420 9,823 4,169 2,868 
Segment selling, general and administrative expenses (a)
9,715 11,383 1,543 4,598 3,242 1,360 
Restructuring and impairment charges (c)
53 68 4 118 32 15 
Acquisition and divestiture-related charges (d)
— 51 — 14 — 3 
Gain associated with the Juice Transaction (h)
— (3,029)— (292)— — 
Impairment and other charges (e)
88 160 1,373 1,749 71 177 
Segment operating profit/(loss)$6,739 $5,426 $(12)$22 $1,353 $78 $13,606 
Corporate unallocated expenses(2,094)
Operating profit11,512 
Other pension and retiree medical benefits income132 
Net interest expense and other(939)
Income before income taxes$10,705 
(a)Does not include items recorded in the cost of sales or selling, general and administrative expenses lines on our income statement that are presented in the restructuring and impairment charges, acquisition and divestiture-related charges, impairment and other charges/credits, product recall-related impact and indirect tax impact lines of these tables.
(b)We recognized a pre-tax gain of $122 million ($92 million after-tax or $0.07 per share) in our PFNA segment, recorded in selling, general and administrative expenses, related to the remeasurement of our previously held 50% equity ownership in Sabra at fair value. See Note 13 for further information.
(c)See Note 3 for further information related to restructuring and impairment charges.
(d)See Note 13 for further information related to acquisitions and divestiture-related charges.
(e)See below and Note 4 for impairment and other charges taken related to the Russia-Ukraine conflict, brand portfolio impairment and other impairment.
(f)In 2024, we recorded a pre-tax charge of $187 million ($143 million after-tax or $0.10 per share) associated with the Quaker Recall with $176 million recorded in cost of sales related to property, plant and equipment write-offs, employee severance costs and other costs, $8 million recorded in selling, general and administrative expenses and $3 million recorded in other pension and retiree medical benefits (expense)/income, which is not included in operating profit. In 2023, we recorded a pre-tax charge of $136 million ($104 million after-tax or $0.07 per share) in cost of sales for product returns, inventory write-offs and customer and consumer-related costs associated with the Quaker Recall.
(g)We recorded a pre-tax charge of $218 million ($218 million after-tax or $0.16 per share) in cost of sales related to an indirect tax reserve in our IB Franchise segment.
(h)We recorded a gain of $3,029 million and $292 million in our PBNA and EMEA segments, respectively, associated with the Juice Transaction. The total after-tax amount was $2,888 million or $2.08 per share. See Note 13 for further information.
Disaggregation of Net Revenue
Our primary performance obligation is the distribution and sales of beverage and convenient food products to our customers. The following table reflects the percentage of net revenue generated between our beverage business and our convenient food business:
202420232022
Beverages(a)
Convenient Foods
Beverages(a)
Convenient Foods
Beverages(a)
Convenient Foods
North America50 %50 %50 %50 %50 %50 %
International (b)
29 %71 %29 %71 %31 %69 %
PepsiCo42 %58 %41 %59 %42 %58 %
(a)Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and EMEA segments, is 35% of our consolidated net revenue in both 2024 and 2023, and 37% of our consolidated net revenue in 2022. Generally, our finished goods beverage operations produce higher net revenue, but lower operating margins as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.
(b)Beverage and convenient foods revenue generated from our EMEA segment is 35% and 65% of EMEA net revenue, respectively, in both 2024 and 2023, and 38% and 62% of EMEA net revenue, respectively, in 2022.
Impairment Related to Russia-Ukraine conflict
Impairment and Other Charges
We recognized Russia-Ukraine conflict charges, brand portfolio impairment charges and other impairment charges as described below.
A summary of pre-tax charges taken in 2022 in our EMEA segment as a result of the Russia-Ukraine conflict is as follows:
Cost of salesSelling, general and administrative expenses
Impairment of intangible assets(a)
Total
Impairment charges related to intangible assets$— $— $1,198 $1,198 
Impairment charges related to property, plant and equipment103 22 — 125 
Allowance for expected credit losses — 12 — 12 
Allowance for inventory write downs28 1 — 29 
Other 9 42 — 51 
Total$140 $77 $1,198 $1,415 
After-tax amount$1,124 
Impact on net income attributable to PepsiCo per common share$(0.81)
(a)See Note 4 for further information. For information on our policies for indefinite-lived intangible assets, see Note 2.
Impairment Charges Related to Brand Portfolio
A summary of pre-tax charges taken in 2022 as a result of our decision to reposition or discontinue the sale/distribution of certain brands and to sell an investment is as follows:
Cost of salesSelling, general and administrative expensesImpairment of intangible assetsTotal
PBNA$26 $8 $126 $160 Impairment and other charges associated with distribution rights and inventory due to the termination of Bang energy drinks distribution agreement
IB Franchise— 109 — 109 Impairment related to the sale of a non-strategic investment
EMEA30 22 251 303 
Primarily impairment of intangible assets related to the discontinuation or repositioning of certain juice and dairy brands in Russia (a)
LatAm Foods— 35 36 71 Loss on sale and impairment of intangible assets related to the sale of certain non-strategic brands
Asia Pacific Foods5 — — 5 Impairment of property, plant and equipment related to the discontinuation of a non-strategic brand in China
Total$61 $174 $413 $648 
After-tax amount$522 
Impact on net income attributable to PepsiCo per common share$(0.38)
(a)See Note 4 for further information. For information on our policies for indefinite-lived intangible assets, see Note 2.
Other Impairment Charges
A summary of pre-tax other impairment charges taken as a result of our quantitative assessments is as follows:
202420232022
PFNA$9 $— $88 
2024 related to a nutrition bar brand and 2022 related to a baked fruit convenient food brand (each recorded in impairment of intangible assets)
PBNA556 321 — 
2024 includes other-than-temporary impairment of our remaining investment in TBG and allowance for expected credit losses related to receivables associated with the Juice Transaction (recorded in selling, general and administrative expenses). 2023 includes our proportionate share of TBG’s indefinite-lived intangible assets impairment and other-than-temporary impairment of our investment in TBG (recorded in selling, general and administrative expenses) (a)
IB Franchise4 862 1,264 
Primarily related to the SodaStream brand and goodwill (recorded in impairment of intangible assets) (b)
EMEA145 6 31
2024 primarily includes other-than-temporary impairment of our investment in TBG and allowance for expected credit losses related to certain receivables from TBG (recorded in selling, general and administrative expenses). 2023 and 2022 are related to brands from the Pioneer Foods acquisition (recorded in impairment of intangible assets) (a)
Asia Pacific Foods— 59 172
Related to the Be & Cheery brand (recorded in impairment of intangible assets)
Total$714 $1,248 $1,555 
After-tax amount$584 $1,033 $1,301 
Impact on net income attributable to PepsiCo per common share$(0.42)$(0.75)$(0.94)
(a)See Note 9 for further information regarding our proportionate share of TBG’s indefinite-lived intangible assets impairment and other-than temporary impairment of our investment in TBG. In 2024, we recorded an allowance for expected credit losses of $193 million, primarily related to outstanding receivables associated with the Juice Transaction.
(b)See Note 4 for further information regarding impairment of intangible assets. For information on our policies for indefinite-lived intangible assets, see Note 2.
Schedule Of Segment Reporting Information By Capital Spending, Amortization Of Intangible Assets And Depreciation And Other Amortization [Table Text Block]
Capital spending, amortization of intangible assets, and depreciation and other amortization of each segment are as follows:
 Capital SpendingAmortization of 
Intangible Assets		Depreciation and
Other Amortization
 202420232022202420232022202420232022
PFNA$1,306 $1,444 $1,557 $10 $11 $11 $852 $787 $700 
PBNA1,541 1,723 1,714 22 22 22 1,047 1,003 930 
IB Franchise148 110 128 17 17 17 92 82 80 
EMEA880 831 857 16 16 18 461 432 459 
LatAm Foods809 814 551 1 1 2 381 361 295 
Asia Pacific Foods312 312 261 8 8 8 125 110 100 
Total segment4,996 5,234 5,068 74 75 78 2,958 2,775 2,564 
Corporate322 284 139 — — — 128 98 121 
Total$5,318 $5,518 $5,207 $74 $75 $78 $3,086 $2,873 $2,685 
Segment Reporting Information By Net Revenue And Long-Lived Assets
Net revenue and long-lived assets by country are as follows:
 Net Revenue
Long-Lived Assets(a)
 20242023202220242023
United States$51,668 $52,165 $49,390 $41,547 $41,234 
Mexico7,123 7,011 5,472 2,392 2,509 
Russia3,880 3,566 4,118 1,667 1,986 
Canada3,764 3,722 3,536 2,681 2,815 
China2,709 2,703 2,752 1,538 1,510 
United Kingdom2,063 1,946 1,844 871 868 
South Africa1,859 1,707 1,837 1,302 1,305 
Brazil1,765 1,779 1,617 497 573 
All other countries17,023 16,872 15,826 11,179 11,226 
Total$91,854 $91,471 $86,392 $63,674 $64,026 
(a)Long-lived assets represent property, plant and equipment, indefinite-lived intangible assets, amortizable intangible assets, investments in noncontrolled affiliates and other investments included in other assets. These assets are reported in the country where they are primarily used. See Notes 2 and 15 for further information on property, plant and equipment. See Notes 2 and 4 for further information on goodwill and other intangible assets. See Notes 9 and 15 for further information on other assets.