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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 23, 2024 (12 weeks)
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to             
Commission file number 1-1183
PepsiCo12-alt-300.jpg

PepsiCo, Inc.
(Exact Name of Registrant as Specified in its Charter)
North Carolina13-1584302
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
700 Anderson Hill Road, Purchase, New York 10577
(Address of principal executive offices and Zip Code)
(914) 253-2000
Registrant's telephone number, including area code
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading SymbolsName of each exchange on which registered
Common Stock, par value 1-2/3 cents per sharePEPThe Nasdaq Stock Market LLC
0.250% Senior Notes Due 2024PEP24The Nasdaq Stock Market LLC
2.625% Senior Notes Due 2026PEP26The Nasdaq Stock Market LLC
0.750% Senior Notes Due 2027PEP27The Nasdaq Stock Market LLC
0.875% Senior Notes Due 2028PEP28The Nasdaq Stock Market LLC
0.500% Senior Notes Due 2028PEP28AThe Nasdaq Stock Market LLC
3.200% Senior Notes Due 2029PEP29The Nasdaq Stock Market LLC
1.125% Senior Notes Due 2031PEP31The Nasdaq Stock Market LLC
0.400% Senior Notes Due 2032PEP32The Nasdaq Stock Market LLC
0.750% Senior Notes Due 2033PEP33The Nasdaq Stock Market LLC
3.550% Senior Notes Due 2034PEP34The Nasdaq Stock Market LLC
0.875% Senior Notes Due 2039PEP39The Nasdaq Stock Market LLC
1.050% Senior Notes Due 2050PEP50The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ☒    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes   ☒    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes       No  ☒
Number of shares of Common Stock outstanding as of April 16, 2024 was 1,374,785,980.


PepsiCo, Inc. and Subsidiaries

Table of Contents
Page No.
Part I Financial Information
Item 1.Condensed Consolidated Financial Statements
Item 2.
Report of Independent Registered Public Accounting Firm
Item 3.
Item 4.
Part II Other Information
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.

1

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

Condensed Consolidated Statement of Income
PepsiCo, Inc. and Subsidiaries
(in millions except per share amounts, unaudited) 
12 Weeks Ended
 3/23/20243/25/2023
Net Revenue$18,250 $17,846 
Cost of sales8,248 7,988 
Gross profit10,002 9,858 
Selling, general and administrative expenses7,285 7,229 
Operating Profit2,717 2,629 
Other pension and retiree medical benefits income58 61 
Net interest expense and other(202)(200)
Income before income taxes2,573 2,490 
Provision for income taxes520 546 
Net income2,053 1,944 
Less: Net income attributable to noncontrolling interests
11 12 
Net Income Attributable to PepsiCo$2,042 $1,932 
Net Income Attributable to PepsiCo per Common Share
Basic$1.49 $1.40 
Diluted$1.48 $1.40 
Weighted-average common shares outstanding
Basic1,375 1,378 
Diluted1,380 1,384 
See accompanying notes to the condensed consolidated financial statements.
2

Condensed Consolidated Statement of Comprehensive Income
PepsiCo, Inc. and Subsidiaries
(in millions, unaudited) 
12 Weeks Ended
3/23/20243/25/2023
Net income$2,053 $1,944 
Other comprehensive income/(loss), net of taxes:
Net currency translation adjustment(182)(235)
Net change on cash flow hedges3 (59)
Net pension and retiree medical adjustments11 (4)
Net change on available-for-sale debt securities and other523 (1)
355 (299)
Comprehensive income2,408 1,645 
Less: Comprehensive income attributable to
noncontrolling interests
11 12 
Comprehensive Income Attributable to PepsiCo$2,397 $1,633 
See accompanying notes to the condensed consolidated financial statements.
3

Condensed Consolidated Statement of Cash Flows
PepsiCo, Inc. and Subsidiaries
(in millions, unaudited)
 12 Weeks Ended
3/23/20243/25/2023
Operating Activities
Net income$2,053 $1,944 
Depreciation and amortization641 590 
Impairment and other charges/(credits) (13)
Product recall-related impact167  
Cash payments for product recall-related impact(108) 
Operating lease right-of-use asset amortization127 116 
Share-based compensation expense97 93 
Restructuring and impairment charges 96 112 
Cash payments for restructuring charges(60)(64)
Pension and retiree medical plan expense31 30 
Pension and retiree medical plan contributions(218)(175)
Deferred income taxes and other tax charges and credits116 78 
Change in assets and liabilities:
Accounts and notes receivable(96)(348)
Inventories(291)(542)
Prepaid expenses and other current assets(342)(288)
Accounts payable and other current liabilities(3,408)(2,259)
Income taxes payable222 290 
Other, net(68)44 
Net Cash Used for Operating Activities(1,041)(392)
Investing Activities
Capital spending(614)(581)
Sales of property, plant and equipment7 19 
Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of intangible and other assets(6)(16)
Other divestitures, sales of investments in noncontrolled affiliates and other assets
53 85 
Short-term investments, by original maturity:
More than three months - purchases (158)
More than three months - maturities 100 
Three months or less, net8 19 
Other investing, net(10) 
Net Cash Used for Investing Activities(562)(532)
    
(Continued on following page)
4

Condensed Consolidated Statement of Cash Flows (continued)
PepsiCo, Inc. and Subsidiaries
(in millions, unaudited)
12 Weeks Ended
3/23/20243/25/2023
Financing Activities
Proceeds from issuances of long-term debt$1,761 $2,986 
Payments of long-term debt(1,252)(1,251)
Short-term borrowings, by original maturity:
More than three months - proceeds2,313 393 
More than three months - payments(1,631)(1)
Three months or less, net774 491 
Cash dividends paid(1,767)(1,608)
Share repurchases(146)(160)
Proceeds from exercises of stock options66 46 
Withholding tax payments on restricted stock units (RSUs) and performance stock units (PSUs) converted(108)(116)
Other financing (3)
Net Cash Provided by Financing Activities10 777 
Effect of exchange rate changes on cash and cash equivalents and restricted cash(38)(116)
Net Decrease in Cash and Cash Equivalents and Restricted Cash(1,631)(263)
Cash and Cash Equivalents and Restricted Cash, Beginning of Year9,761 5,100 
Cash and Cash Equivalents and Restricted Cash, End of Period$8,130 $4,837 
Supplemental Non-Cash Activity
Right-of-use assets obtained in exchange for lease obligations$259 $213 
See accompanying notes to the condensed consolidated financial statements.
5

Condensed Consolidated Balance Sheet
PepsiCo, Inc. and Subsidiaries
(in millions except per share amounts)
(Unaudited)
3/23/202412/30/2023
ASSETS
Current Assets
Cash and cash equivalents$8,047 $9,711 
Short-term investments303 292 
Accounts and notes receivable, less allowance ($180 and $175, respectively)
10,938 10,815 
Inventories:
Raw materials and packaging2,465 2,388 
Work-in-process97 104 
Finished goods3,007 2,842 
5,569 5,334 
Prepaid expenses and other current assets1,148 798 
Total Current Assets26,005 26,950 
Property, plant and equipment54,510 54,439 
Accumulated depreciation(27,718)(27,400)
Property, Plant and Equipment, net26,792 27,039 
Amortizable Intangible Assets, net1,173 1,199 
Goodwill17,646 17,728 
Other Indefinite-Lived Intangible Assets13,680 13,730 
Investments in Noncontrolled Affiliates2,734 2,714 
Deferred Income Taxes4,444 4,474 
Other Assets7,566 6,661 
Total Assets$100,040 $100,495 
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt obligations$8,161 $6,510 
Accounts payable and other current liabilities22,073 25,137 
Total Current Liabilities30,234 31,647 
Long-Term Debt Obligations37,707 37,595 
Deferred Income Taxes4,087 3,895 
Other Liabilities8,822 8,721 
Total Liabilities80,850 81,858 
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: 1,375 and 1,374 shares, respectively)
23 23 
Capital in excess of par value4,132 4,261 
Retained earnings70,331 70,035 
Accumulated other comprehensive loss(15,179)(15,534)
Repurchased common stock, in excess of par value (492 and 493 shares, respectively)
(40,260)(40,282)
Total PepsiCo Common Shareholders’ Equity19,047 18,503 
Noncontrolling interests143 134 
Total Equity19,190 18,637 
Total Liabilities and Equity$100,040 $100,495 
See accompanying notes to the condensed consolidated financial statements.
6

Condensed Consolidated Statement of Equity
PepsiCo, Inc. and Subsidiaries
(in millions, except per share amounts, unaudited)
12 Weeks Ended
3/23/20243/25/2023
SharesAmountSharesAmount
Common Stock
Balance, beginning of period1,374 $23 1,377 $23 
Change in repurchased common stock1  1  
Balance, end of period1,375 23 1,378 23 
Capital in Excess of Par Value
Balance, beginning of period4,261 4,134 
Share-based compensation expense92 94 
Stock option exercises, RSUs and PSUs converted(113)(116)
Withholding tax on RSUs and PSUs converted(108)(116)
Balance, end of period4,132 3,996 
Retained Earnings
Balance, beginning of period70,035 67,800 
Net income attributable to PepsiCo2,042 1,932 
Cash dividends declared (a)
(1,746)(1,590)
Balance, end of period70,331 68,142 
Accumulated Other Comprehensive Loss
Balance, beginning of period(15,534)(15,302)
Other comprehensive income/(loss) attributable to PepsiCo355 (299)
Balance, end of period(15,179)(15,601)
Repurchased Common Stock
Balance, beginning of period(493)(40,282)(490)(39,506)
Share repurchases(1)(158)(1)(174)
Stock option exercises, RSUs and PSUs converted2 179 2 162 
Other 1   
Balance, end of period(492)(40,260)(489)(39,518)
Total PepsiCo Common Shareholders’ Equity19,047 17,042 
Noncontrolling Interests
Balance, beginning of period134 124 
Net income attributable to noncontrolling interest11 12 
Distributions to noncontrolling interests(1)(1)
Other, net(1)(2)
Balance, end of period143 133 
Total Equity$19,190 $17,175 
(a)Cash dividends declared per common share were $1.265 and $1.15 for the 12 weeks ended March 23, 2024 and March 25, 2023, respectively.

See accompanying notes to the condensed consolidated financial statements.
7

Notes to the Condensed Consolidated Financial Statements
Note 1 - Basis of Presentation and Our Divisions
Basis of Presentation
When used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its consolidated subsidiaries, collectively.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the rules and regulations for reporting the Quarterly Report on Form 10-Q (Form 10-Q). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated balance sheet at December 30, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements have been prepared on a basis that is substantially consistent with the accounting principles applied in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (2023 Form 10-K). This report should be read in conjunction with our 2023 Form 10-K. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation. The results for the 12 weeks ended March 23, 2024 are not necessarily indicative of the results expected for any future period or the full year.
Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw materials handling facilities, are included in cost of sales. The costs of moving, storing and delivering finished product, including merchandising activities, are included in selling, general and administrative expenses.
While our financial results in the United States and Canada (North America) are reported on a 12-week basis, all of our international operations are reported on a monthly calendar basis for which the months of January and February are reflected in our results for the 12 weeks ended March 23, 2024 and March 25, 2023.
The preparation of our condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and related disclosures. Additionally, the business and economic uncertainty resulting from volatile geopolitical conditions and the high interest rate and inflationary cost environment has made such estimates and assumptions more difficult to calculate. Accordingly, actual results and outcomes could differ from those estimates.
Our significant interim accounting policies include the recognition of a pro rata share of certain estimated annual sales incentives and certain advertising and marketing costs in proportion to revenue or volume, as applicable, and the recognition of income taxes using an estimated annual effective tax rate.
Unless otherwise noted, tabular dollars are in millions, except per share amounts. All per share amounts reflect common per share amounts, assume dilution unless otherwise noted, and are based on unrounded amounts. Certain reclassifications were made to the prior year’s financial statements to conform to the current year presentation.
Our Divisions
We are organized into seven reportable segments (also referred to as divisions), as follows:
1)Frito-Lay North America (FLNA), which includes our branded convenient food businesses in the United States and Canada;
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2)Quaker Foods North America (QFNA), which includes our branded convenient food businesses, such as cereal, rice, pasta and other branded food, in the United States and Canada;
3)PepsiCo Beverages North America (PBNA), which includes our beverage businesses in the United States and Canada;
4)Latin America (LatAm), which includes all of our beverage and convenient food businesses in Latin America;
5)Europe, which includes all of our beverage and convenient food businesses in Europe;
6)Africa, Middle East and South Asia (AMESA), which includes all of our beverage and convenient food businesses in Africa, the Middle East and South Asia; and
7)Asia Pacific, Australia and New Zealand and China region (APAC), which includes all of our beverage and convenient food businesses in Asia Pacific, Australia and New Zealand, and China region.
Net revenue of each division is as follows:
12 Weeks Ended
3/23/20243/25/2023
FLNA$5,676 $5,583 
QFNA593 777 
PBNA5,874 5,798 
LatAm2,067 1,777 
Europe1,936 1,886 
AMESA1,040 1,019 
APAC1,064 1,006 
Total$18,250 $17,846 
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 for each of our international divisions, as well as our consolidated net revenue:
12 Weeks Ended
3/23/20243/25/2023
Beverages(a)
Convenient Foods
Beverages(a)
Convenient Foods
LatAm9 %91 %9 %91 %
Europe45 %55 %46 %54 %
AMESA32 %68 %31 %69 %
APAC15 %85 %15 %85 %
PepsiCo41 %59 %41 %59 %
(a)Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and Europe divisions, was 35% and 36% of our consolidated net revenue in the 12 weeks ended March 23, 2024 and March 25, 2023, respectively. Generally, our finished goods beverage operations produce higher net revenue but lower operating margin as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.
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Operating profit/(loss) of each division is as follows:
12 Weeks Ended
3/23/20243/25/2023
FLNA$1,554 $1,599 
QFNA (a)
(49)188 
PBNA510 483 
LatAm
485 364 
Europe 202 71 
AMESA152 168 
APAC233 227 
Total divisions3,087 3,100 
Corporate unallocated expenses (370)(471)
Total$2,717 $2,629 
(a)In the 12 weeks ended March 23, 2024, operating loss included a pre-tax charge of $167 million ($128 million after-tax or $0.09 per share) in cost of sales for property, plant and equipment write-offs, employee severance costs and other costs associated with a previously announced voluntary recall of certain bars and cereals in our QFNA division (Quaker Recall).
Note 2 - Recently Issued Accounting Pronouncements
Adopted
In September 2022, the Financial Accounting Standards Board (FASB) issued guidance to enhance the transparency of supplier finance programs to allow financial statement users to understand the effect on working capital, liquidity and cash flows. The new guidance requires disclosure of key terms of the program, including a description of the payment terms, payment timing and assets pledged as security or other forms of guarantees provided to the finance provider or intermediary. Other requirements include the disclosure of the amount that remains unpaid as of the end of the reporting period, a description of where these obligations are presented in the balance sheet and a rollforward of the obligation during the annual period. We adopted the guidance in the first quarter of 2023, except for the rollforward, which is effective for the current fiscal year 2024. We will adopt the rollforward guidance when it becomes effective in our 2024 annual reporting, on a prospective basis. See Note 12 for disclosures currently required under this guidance.
Not Yet Adopted
In December 2023, the FASB issued guidance to enhance transparency of income tax disclosures. On an annual basis, the new guidance requires a public entity to disclose: (1) specific categories in the rate reconciliation, (2) additional information for reconciling items that are equal to or greater than 5% of the amount computed by multiplying income (or loss) from continuing operations before income tax expense (or benefit) by the applicable statutory income tax rate, (3) income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes, with foreign taxes disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5% of total income taxes paid, (4) income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and (5) income tax expense (or benefit) from continuing operations disaggregated between federal (national), state and foreign. The guidance is effective for fiscal year 2025 annual reporting, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted. We will adopt the guidance when it becomes effective, in our 2025 annual reporting, on a prospective basis.
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In November 2023, the FASB issued guidance to enhance disclosure of expenses of a public entity’s reportable segments. The new guidance requires a public entity to disclose: (1) on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, (2) on an annual and interim basis, an amount for other segment items (the difference between segment revenue less the significant expenses disclosed under the significant expense principle and each reported measure of segment profit or loss), including a description of its composition, (3) on an annual and interim basis, information about a reportable segment’s profit or loss and assets previously required to be disclosed only on an annual basis, and (4) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and how to allocate resources. The new guidance also clarifies that if the CODM uses more than one measure of a segment’s profit or loss, one or more of those measures may be reported and requires that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this update and all existing segment disclosures. The guidance is effective for the current fiscal year 2024 annual reporting, and in the first quarter of 2025 for interim period reporting, with early adoption permitted. Upon adoption, this guidance should be applied retrospectively to all prior periods presented. We will adopt the guidance when it becomes effective in our 2024 annual reporting.
Note 3 - Restructuring and Impairment Charges
2019 Multi-Year Productivity Plan
We publicly announced a multi-year productivity plan on February 15, 2019 (2019 Productivity Plan) that leverages new technology and business models to further simplify, harmonize and automate processes; re-engineer our go-to-market and information systems, including deploying the right automation for each market; and simplify our organization and optimize our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 2022, we expanded and extended the plan through the end of 2028 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $3.65 billion, including cash expenditures of approximately $2.9 billion. These pre-tax charges are expected to consist of approximately 55% of severance and other employee-related costs, 10% for asset impairments (all non-cash) resulting from plant closures and related actions, and 35% for other costs associated with the implementation of our initiatives.
The total plan pre-tax charges are expected to be incurred by division approximately as follows:
FLNAQFNAPBNALatAmEuropeAMESAAPACCorporate
Expected pre-tax charges10 %1 %30 %10 %25 %5 %4 %15 %
A summary of our 2019 Productivity Plan charges is as follows:
12 Weeks Ended
3/23/20243/25/2023
Cost of sales$6 $3 
Selling, general and administrative expenses 83 110 
Other pension and retiree medical benefits expense/(income) (a)
7 (1)
Total restructuring and impairment charges$96 $112 
After-tax amount$76 $98 
Impact on net income attributable to PepsiCo per common share$(0.05)$(0.07)
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12 Weeks EndedPlan to Date
3/23/20243/25/2023
through 3/23/2024
FLNA $22 $7 $274 
QFNA4  23 
PBNA10 5 277 
LatAm5 5 205 
Europe18 89 584 
AMESA  5 97 
APAC 1 85 
Corporate30 1 347 
89 113 1,892 
Other pension and retiree medical benefits expense/(income) (a)
7 (1)104 
Total$96 $112 $1,996 
(a)Income amount represents adjustments for changes in estimates of previously recorded amounts.

12 Weeks EndedPlan to Date
3/23/20243/25/2023
through 3/23/2024
Severance and other employee costs$72 $92 $1,122 
Asset impairments1  193 
Other costs23 20 681 
Total$96 $112 $1,996 
Severance and other employee costs primarily include severance and other termination benefits, as well as voluntary separation arrangements. Other costs primarily include costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees.
A summary of our 2019 Productivity Plan activity for the 12 weeks ended March 23, 2024 is as follows:
Severance and Other Employee CostsAsset
Impairments
Other CostsTotal
Liability as of December 30, 2023$188 $ $9 $197 
2024 restructuring charges
72 1 23 96 
Cash payments(39) (21)(60)
Non-cash charges and translation(5)(1)(1)(7)
Liability as of March 23, 2024$216 $ $10 $226 
Substantially all of the restructuring accrual at March 23, 2024 is expected to be paid by the end of 2024.
Other Productivity Initiatives
There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2019 Productivity Plan.
We regularly evaluate different productivity initiatives beyond the productivity plan and other initiatives described above.
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Note 4 - Intangible Assets
A summary of our amortizable intangible assets is as follows:
3/23/202412/30/2023
GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Acquired franchise rights
$835 $(216)$619 $840 $(214)$626 
Customer relationships553 (267)286 560 (265)295 
Brands
1,086 (987)99 1,093 (989)104 
Other identifiable intangibles445 (276)169 449 (275)174 
Total$2,919 $(1,746)$1,173 $2,942 $(1,743)$1,199 
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The change in the book value of indefinite-lived intangible assets is as follows:
Balance
12/30/2023
Translation
and Other
Balance
3/23/2024
FLNA
Goodwill$453 $(2)$451 
Brands251  251 
Total704 (2)702 
QFNA
Goodwill189  189 
Total189  189 
PBNA
Goodwill 11,961 (10)11,951 
Reacquired franchise rights7,114 (18)7,096 
Acquired franchise rights 1,737 (3)1,734 
Brands2,508  2,508 
Total23,320 (31)23,289 
LatAm
Goodwill460 (8)452 
Brands82 (1)81 
Total542 (9)533 
Europe
Goodwill 3,166 (30)3,136 
Reacquired franchise rights419 (6)413 
Acquired franchise rights 154 (4)150 
Brands1,124 (7)1,117 
Total4,863 (47)4,816 
AMESA
Goodwill991 (22)969 
Brands137 (5)132 
Total1,128 (27)1,101 
APAC
Goodwill508 (10)498 
Brands
204 (6)198 
Total712 (16)696 
Total goodwill17,728 (82)17,646 
Total reacquired franchise rights7,533 (24)7,509 
Total acquired franchise rights1,891 (7)1,884 
Total brands4,306 (19)4,287 
Total$31,458 $(132)$31,326 


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Note 5 - Income Taxes
Numerous countries have agreed to a statement in support of the Organization for Economic Co-operation and Development (OECD) model rules that propose a global minimum tax rate of 15%. Certain countries have enacted legislation incorporating the agreed global minimum tax effective in 2024. Legislation enacted as of March 23, 2024 did not have a material impact on our financial statements for the 12 weeks ended March 23, 2024 and is not expected to have a material impact on our 2024 financial statements.
Note 6 - Share-Based Compensation
The following table summarizes our total share-based compensation expense, which is primarily recorded in selling, general and administrative expenses:
12 Weeks Ended
3/23/20243/25/2023
Share-based compensation expense – equity awards$97 $93 
Share-based compensation expense – liability awards5 6 
Restructuring charges(5)1 
Total$97 $100 
The following table summarizes share-based awards granted under the terms of the PepsiCo, Inc. Long-Term Incentive Plan:
12 Weeks Ended
3/23/20243/25/2023
Granted(a)
Weighted-Average Grant Price
Granted(a)
Weighted-Average Grant Price
Stock options1.8 $164.25 2.0 $171.00 
RSUs and PSUs2.3 $164.25 2.1 $171.00 
(a)In millions. All grant activity is disclosed at target.
We granted long-term cash awards to certain executive officers and other senior executives with an aggregate target value of $19 million for both the 12 weeks ended March 23, 2024 and March 25, 2023.
Our weighted-average Black-Scholes fair value assumptions are as follows: 
 12 Weeks Ended
 3/23/20243/25/2023
Expected life7 years7 years
Risk-free interest rate4.2 %4.2 %
Expected volatility16 %16 %
Expected dividend yield2.9 %2.7 %
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Note 7 - Pension and Retiree Medical Benefits
The components of net periodic benefit cost/(income) for pension and retiree medical plans are as follows:
 12 Weeks Ended
 PensionRetiree Medical
 U.S.International 
 3/23/20243/25/20233/23/20243/25/20233/23/20243/25/2023
Service cost$80 $76 $9 $8 $7 $6 
Other pension and retiree medical benefits income:
Interest cost135 137 27 25 7 8 
Expected return on plan assets(201)(197)(39)(35)(3)(3)
Amortization of prior service credits(6)(6)  (1)(1)
Amortization of net losses/(gains)18 16 4 2 (6)(6)
Special termination benefits7 (1)    
Total other pension and retiree medical benefits income(47)(51)(8)(8)(3)(2)
Total$33 $25 $1 $ $4 $4 
We regularly evaluate opportunities to reduce risk and volatility associated with our pension and retiree medical plans.
In the 12 weeks ended March 23, 2024 and March 25, 2023, we made discretionary contributions of $150 million and $125 million, respectively, to our U.S. qualified defined benefit plans, and $27 million and $17 million, respectively, to our international defined benefit plans.
Note 8 - Debt Obligations
In the 12 weeks ended March 23, 2024, we issued, through our wholly-owned consolidated finance subsidiary, PepsiCo Singapore Financing I Pte. Ltd., the following notes:(a)
Interest RateMaturity Date
Principal Amount(b)
Floating rateFebruary 2027$300 
4.650 %February 2027$550 
4.550 %February 2029$450 
4.700 %February 2034$450 
(a)PepsiCo Singapore Financing I Pte. Ltd. is a finance subsidiary and has no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the notes and any other notes that may be issued in the future. The notes are fully and unconditionally guaranteed by PepsiCo, Inc. on a senior unsecured basis and may be assumed at any time by PepsiCo, Inc. as the primary and sole obligor.
(b)Excludes debt issuance costs, discounts and premiums.
The net proceeds from the issuances of the above notes were used for general corporate purposes, including the repayment of commercial paper.
In the 12 weeks ended March 23, 2024, $1.3 billion of U.S. dollar-denominated senior notes matured and were paid.
As of March 23, 2024, we had $3.6 billion of commercial paper outstanding, excluding discounts.
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Note 9 - Financial Instruments
We are exposed to market risks arising from adverse changes in:
commodity prices, affecting the cost of our raw materials and energy;
foreign exchange rates and currency restrictions; and
interest rates.
There have been no material changes during the 12 weeks ended March 23, 2024 with respect to our risk management policies or strategies and valuation techniques used in measuring the fair value of the financial assets or liabilities disclosed in Note 9 to our consolidated financial statements in our 2023 Form 10-K.
Certain of our agreements with our counterparties require us to post full collateral on derivative instruments in a net liability position if our credit rating is at A2 (Moody’s Investors Service, Inc.) or A (S&P Global Ratings) and we have been placed on credit watch for possible downgrade or if our credit rating falls below either of these levels. The fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position as of March 23, 2024 was $178 million. We have posted no collateral under these contracts and no credit-risk-related contingent features were triggered as of March 23, 2024.
The notional amounts of our financial instruments used to hedge the above risks as of March 23, 2024 and December 30, 2023 are as follows:
 
Notional Amounts(a)
3/23/202412/30/2023
Commodity $1.5 $1.7 
Foreign exchange $3.9 $3.8 
Interest rate$1.3 $1.3 
Net investment (b)
$3.0 $3.0 
(a)In billions.
(b)The total notional amount of our net investment hedges consists of non-derivative debt instruments.
As of March 23, 2024, approximately 12% of total debt, after the impact of the related interest rate derivative instruments, was subject to variable rates, compared to 9% as of December 30, 2023.
Debt Securities
Held-to-Maturity
As of March 23, 2024, we had no investments in held-to-maturity debt securities. As of December 30, 2023, we had $309 million of investments in commercial paper held-to-maturity debt securities recorded in cash and cash equivalents. Held-to-maturity debt securities are recorded at amortized cost, which approximates fair value, and realized gains or losses are reported in earnings. As of December 30, 2023, gross unrecognized gains and losses and the allowance for expected credit losses were not material.
Available-for-Sale
There were no impairment charges related to investments in available-for-sale debt securities in both the 12 weeks ended March 23, 2024 and March 25, 2023. Related to our Level 3 (significant unobservable inputs) investment in Celsius Holdings, Inc. (Celsius), we recorded an unrealized gain of $691 million in other comprehensive income during the 12 weeks ended March 23, 2024. There were no Level 3 investments during the 12 weeks ended March 25, 2023.
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Recurring Fair Value Measurements
The fair values of our financial assets and liabilities as of March 23, 2024 and December 30, 2023 are categorized as follows:
 3/23/202412/30/2023
 
Fair Value Hierarchy Levels(a)
Assets(a)
Liabilities(a)
Assets(a)
Liabilities(a)
Available-for-sale debt securities (b)
2,3$2,027 $ $1,334 $ 
Index funds (c)
1$303 $ $292 $ 
Prepaid forward contracts (d)
2$13 $ $13 $ 
Deferred compensation (e)
2$ $491 $ $477 
Derivatives designated as cash flow hedging instruments:
Foreign exchange (f)
2$9 $16 $3 $31 
Interest rate (f)
2 155 5 135 
Commodity (g)
24 26 10 24 
$13 $197 $18 $190 
Derivatives not designated as hedging instruments:
Foreign exchange (f)
2$8 $17 $33 $38 
Commodity (g)
27 7 5 13 
$15 $24 $38 $51 
Total derivatives at fair value (h)
$28 $221 $56 $241 
Total$2,371 $712 $1,695 $718 
(a)Fair value hierarchy levels are categorized consistently by Level 1 (quoted prices in active markets for identical assets), Level 2 (significant other observable inputs) and Level 3 in both years. 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)Includes Level 2 assets of $180 million and Level 3 assets of $1,847 million as of March 23, 2024, and Level 2 assets of $178 million and Level 3 assets of $1,156 million as of December 30, 2023. As of March 23, 2024 and December 30, 2023, $2,027 million and $1,334 million were classified as other assets, respectively. The fair values of our Level 2 investments approximate the transaction price and any accrued returns, as well as the amortized cost. The fair value of our Level 3 investment in Celsius is estimated using probability-weighted discounted future cash flows based on a Monte Carlo simulation using significant unobservable inputs such as an 80% probability that a certain market-based condition will be met and an average estimated discount rate of 8.1% based on Celsius’ estimated synthetic credit rating. An increase in the probability that certain market-based conditions will be met or a decrease in the discount rate would result in a higher fair value measurement, while a decrease in the probability that certain market-based conditions will be met or an increase in the discount rate would result in a lower fair value measurement.
(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 recently reported market transactions of spot and forward rates.
(g)Primarily based on recently reported market transactions of swap arrangements.
(h)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 our balance sheet as of March 23, 2024 and December 30, 2023 were not material. Collateral received or posted against our asset or liability positions was not material. Exchange-traded commodity futures are cash-settled on a daily basis and, therefore, not included in the table.
The carrying amounts of our cash and cash equivalents and short-term investments recorded at amortized cost approximate fair value (classified as Level 2 in the fair value hierarchy) due to their short-term maturity. The fair value of our debt obligations as of March 23, 2024 and December 30, 2023 was $42 billion and $41 billion, respectively, based upon prices of identical or similar instruments in the marketplace, which are considered Level 2 inputs.
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Losses/(gains) on our cash flow and net investment hedges are categorized as follows:
 12 Weeks Ended
 Losses/(Gains)
Recognized in
Accumulated Other
Comprehensive Loss
Losses/(Gains)
Reclassified from
Accumulated Other
Comprehensive Loss
into Income Statement(a)
3/23/20243/25/20233/23/20243/25/2023
Foreign exchange
$(14)$16 $9 $1 
Interest rate 25 11 24 3 
Commodity 39 65 21 9 
Net investment(52)37   
Total$(2)$129 $54 $13 
(a)Foreign exchange derivative losses/(gains) are included in net revenue and cost of sales. Interest rate derivative losses/(gains) are included in selling, general and administrative expenses. Commodity derivative losses/(gains) are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. See Note 11 for further information.
Based on current market conditions, we expect to reclassify net losses of $107 million related to our cash flow hedges from accumulated other comprehensive loss within common shareholders’ equity into net income during the next 12 months.
Losses/(gains) recognized in the income statement related to our non-designated hedges are categorized as follows:
12 Weeks Ended
3/23/20243/25/2023
Cost of salesSelling, general and administrative expensesTotalCost of salesSelling, general and administrative expensesTotal
Foreign exchange$ $18 $18 $(1)$(5)$(6)
Commodity(1)(25)(26)31 50 81 
Total$(1)$(7)$(8)$30 $45 $75 
Note 10 - Net Income Attributable to PepsiCo per Common Share
The computations of basic and diluted net income attributable to PepsiCo per common share are as follows:
 12 Weeks Ended
 3/23/20243/25/2023
 Income
Shares(a)
Income
Shares(a)
Basic net income attributable to PepsiCo per common share
$1.49 $1.40 
Net income available for PepsiCo common shareholders
$2,042 1,375 $1,932 1,378 
Dilutive securities: