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1、UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549FORM 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June 15,2024(24 weeks)ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHA

2、NGE ACT OF 1934For the transition period from to Commission file number 1-1183 PepsiCo,Inc.(Exact Name of Registrant as Specified in its Charter)North Carolina13-1584302(State or Other Jurisdiction ofIncorporation or Organization)(I.R.S.EmployerIdentification No.)700 Anderson Hill Road,Purchase,New

3、York 10577(Address of principal executive offices and Zip Code)(914)253-2000 Registrants telephone number,including area codeN/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

4、of each classTrading SymbolsName of each exchange on which registeredCommon Stock,par value 1-2/3 cents per sharePEPThe Nasdaq Stock Market LLC2.625%Senior Notes Due 2026PEP26The Nasdaq Stock Market LLC0.750%Senior Notes Due 2027PEP27The Nasdaq Stock Market LLC0.875%Senior Notes Due 2028PEP28The Nas

5、daq Stock Market LLC0.500%Senior Notes Due 2028PEP28AThe Nasdaq Stock Market LLC3.200%Senior Notes Due 2029PEP29The Nasdaq Stock Market LLC1.125%Senior Notes Due 2031PEP31The Nasdaq Stock Market LLC0.400%Senior Notes Due 2032PEP32The Nasdaq Stock Market LLC0.750%Senior Notes Due 2033PEP33The Nasdaq

6、Stock Market LLC3.550%Senior Notes Due 2034PEP34The Nasdaq Stock Market LLC0.875%Senior Notes Due 2039PEP39The Nasdaq Stock Market LLC1.050%Senior Notes Due 2050PEP50The Nasdaq Stock Market LLCIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or

7、 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 ele

8、ctronically 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 l

9、arge 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 accelerate

10、d filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf 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 purs

11、uant 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 July 5,2024 was 1,373,572,400.PepsiCo,Inc.and SubsidiariesTable of ContentsPage No.Part I

12、Financial InformationItem 1.Condensed Consolidated Financial Statements2Condensed Consolidated Statement of Income 12 and 24 Weeks Ended June 15,2024 and June 17,20232Condensed Consolidated Statement of Comprehensive Income 12 and 24 Weeks Ended June 15,2024 and June 17,20233Condensed Consolidated S

13、tatement of Cash Flows 24 Weeks Ended June 15,2024 and June 17,20234Condensed Consolidated Balance Sheet June 15,2024 and December 30,20236Condensed Consolidated Statement of Equity 12 and 24 Weeks Ended June 15,2024 and June 17,20237Notes to the Condensed Consolidated Financial Statements8Item 2.Ma

14、nagements Discussion and Analysis of Financial Condition and Results of Operations24Report of Independent Registered Public Accounting Firm44Item 3.Quantitative and Qualitative Disclosures About Market Risk45Item 4.Controls and Procedures45Part II Other InformationItem 1.Legal Proceedings46Item 1A.R

15、isk Factors46Item 2.Unregistered Sales of Equity Securities and Use of Proceeds46Item 5.Other Information47Item 6.Exhibits47Table of Contents1PART I FINANCIAL INFORMATIONITEM 1.Condensed Consolidated Financial Statements.Condensed Consolidated Statement of IncomePepsiCo,Inc.and Subsidiaries(in milli

16、ons except per share amounts,unaudited)12 Weeks Ended24 Weeks Ended 6/15/20246/17/20236/15/20246/17/2023Net Revenue$22,501$22,322$40,751$40,168 Cost of sales 9,919 10,121 18,167 18,109 Gross profit 12,582 12,201 22,584 22,059 Selling,general and administrative expenses 8,534 8,542 15,819 15,771 Oper

17、ating Profit 4,048 3,659 6,765 6,288 Other pension and retiree medical benefits income 56 60 114 121 Net interest expense and other(234)(201)(436)(401)Income before income taxes 3,870 3,518 6,443 6,008 Provision for income taxes 776 747 1,296 1,293 Net income 3,094 2,771 5,147 4,715 Less:Net income

18、attributable to noncontrolling interests 11 23 22 35 Net Income Attributable to PepsiCo$3,083$2,748$5,125$4,680 Net Income Attributable to PepsiCo per Common ShareBasic$2.24$1.99$3.73$3.40 Diluted$2.23$1.99$3.71$3.38 Weighted-average common shares outstandingBasic 1,375 1,378 1,375 1,378 Diluted 1,3

19、79 1,384 1,380 1,384 See accompanying notes to the condensed consolidated financial statements.Table of Contents2Condensed Consolidated Statement of Comprehensive IncomePepsiCo,Inc.and Subsidiaries(in millions,unaudited)12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023Net income$3,094

20、$2,771$5,147$4,715 Other comprehensive loss,net of taxes:Net currency translation adjustment(267)(198)(449)(433)Net change on cash flow hedges 42 24 45 (35)Net pension and retiree medical adjustments 9 (6)20 (10)Net change on available-for-sale debt securities and other (391)1 132 (607)(179)(252)(47

21、8)Comprehensive income 2,487 2,592 4,895 4,237 Less:Comprehensive income attributable tononcontrolling interests 11 23 22 35 Comprehensive Income Attributable to PepsiCo$2,476$2,569$4,873$4,202 See accompanying notes to the condensed consolidated financial statements.Table of Contents3Condensed Cons

22、olidated Statement of Cash FlowsPepsiCo,Inc.and Subsidiaries(in millions,unaudited)24 Weeks Ended6/15/20246/17/2023Operating ActivitiesNet income$5,147$4,715 Depreciation and amortization 1,379 1,268 Impairment and other charges 97 Product recall-related impact 182 Cash payments for product recall-r

23、elated impact(135)Operating lease right-of-use asset amortization 278 248 Share-based compensation expense 183 179 Restructuring and impairment charges 170 204 Cash payments for restructuring charges(173)(187)Pension and retiree medical plan expenses 67 62 Pension and retiree medical plan contributi

24、ons(263)(209)Deferred income taxes and other tax charges and credits 142 270 Tax payments related to the Tax Cuts and Jobs Act(TCJ Act)(579)(309)Change in assets and liabilities:Accounts and notes receivable(1,138)(1,330)Inventories(696)(851)Prepaid expenses and other current assets(365)(271)Account

25、s payable and other current liabilities(2,968)(1,960)Income taxes payable 287 100 Other,net(203)(7)Net Cash Provided by Operating Activities 1,315 2,019 Investing ActivitiesCapital spending(1,701)(1,513)Sales of property,plant and equipment 127 122 Acquisitions,net of cash acquired,investments in no

26、ncontrolled affiliates and purchases of intangible and other assets(30)(83)Other divestitures,sales of investments in noncontrolled affiliates and other assets 135 75 Short-term investments,by original maturity:More than three months-purchases (435)More than three months-maturities 363 Three months

27、or less,net 1 16 Other investing,net 14 32 Net Cash Used for Investing Activities(1,454)(1,423)(Continued on following page)Table of Contents4Condensed Consolidated Statement of Cash Flows(continued)PepsiCo,Inc.and Subsidiaries(in millions,unaudited)24 Weeks Ended6/15/20246/17/2023Financing Activiti

28、esProceeds from issuances of long-term debt$1,765$2,986 Payments of long-term debt(2,882)(2,252)Short-term borrowings,by original maturity:More than three months-proceeds 3,080 1,660 More than three months-payments(2,138)(26)Three months or less,net 1,286 2,023 Cash dividends paid(3,506)(3,199)Share

29、 repurchases(461)(453)Proceeds from exercises of stock options 107 86 Withholding tax payments on restricted stock units(RSUs)and performance stock units(PSUs)converted(131)(119)Other financing(20)(16)Net Cash(Used for)/Provided by Financing Activities(2,900)690 Effect of exchange rate changes on ca

30、sh and cash equivalents and restricted cash(304)(144)Net(Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash(3,343)1,142 Cash and Cash Equivalents and Restricted Cash,Beginning of Year 9,761 5,100 Cash and Cash Equivalents and Restricted Cash,End of Period$6,418$6,242 Supplemental No

31、n-Cash ActivityRight-of-use assets obtained in exchange for lease obligations$541$439 Debt discharged via legal defeasance$94 See accompanying notes to the condensed consolidated financial statements.Table of Contents5Condensed Consolidated Balance SheetPepsiCo,Inc.and Subsidiaries(in millions excep

32、t per share amounts)(Unaudited)6/15/202412/30/2023ASSETSCurrent AssetsCash and cash equivalents$6,353$9,711 Short-term investments 315 292 Accounts and notes receivable,less allowance($180 and$175,respectively)11,942 10,815 Inventories:Raw materials and packaging 2,635 2,388 Work-in-process 121 104

33、Finished goods 3,131 2,842 5,887 5,334 Prepaid expenses and other current assets 1,206 798 Total Current Assets 25,703 26,950 Property,plant and equipment 55,040 54,439 Accumulated depreciation(27,998)(27,400)Property,Plant and Equipment,net 27,042 27,039 Amortizable Intangible Assets,net 1,151 1,19

34、9 Goodwill 17,648 17,728 Other Indefinite-Lived Intangible Assets 13,675 13,730 Investments in Noncontrolled Affiliates 2,674 2,714 Deferred Income Taxes 4,465 4,474 Other Assets 7,175 6,661 Total Assets$99,533$100,495 LIABILITIES AND EQUITYCurrent LiabilitiesShort-term debt obligations$8,289$6,510

35、Accounts payable and other current liabilities 22,859 25,137 Total Current Liabilities 31,148 31,647 Long-Term Debt Obligations 36,638 37,595 Deferred Income Taxes 3,908 3,895 Other Liabilities 8,259 8,721 Total Liabilities 79,953 81,858 Commitments and contingenciesPepsiCo Common Shareholders Equit

36、yCommon stock,par value 12/3 per share(authorized 3,600 shares;issued,net of repurchased common stock at par value:1,374 shares)23 23 Capital in excess of par value 4,203 4,261 Retained earnings 71,545 70,035 Accumulated other comprehensive loss(15,786)(15,534)Repurchased common stock,in excess of p

37、ar value(493 shares)(40,539)(40,282)Total PepsiCo Common Shareholders Equity 19,446 18,503 Noncontrolling interests 134 134 Total Equity 19,580 18,637 Total Liabilities and Equity$99,533$100,495 See accompanying notes to the condensed consolidated financial statements.Table of Contents6Condensed Con

38、solidated Statement of EquityPepsiCo,Inc.and Subsidiaries(in millions,except per share amounts,unaudited)12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023SharesAmountSharesAmountSharesAmountSharesAmountCommon StockBalance,beginning of period 1,375$23 1,378$23 1,374$23 1,377$23 Change

39、in repurchased common stock(1)(1)Balance,end of period 1,374 23 1,377 23 1,374 23 1,377 23 Capital in Excess of Par ValueBalance,beginning of period 4,132 3,996 4,261 4,134 Share-based compensation expense 87 85 179 179 Stock option exercises,RSUs and PSUs converted 9 5 (104)(111)Withholding tax on

40、RSUs and PSUs converted(23)(3)(131)(119)Other(2)(1)(2)(1)Balance,end of period 4,203 4,082 4,203 4,082 Retained EarningsBalance,beginning of period 70,331 68,142 70,035 67,800 Net income attributable to PepsiCo 3,083 2,748 5,125 4,680 Cash dividends declared(a)(1,869)(1,755)(3,615)(3,345)Balance,end

41、 of period 71,545 69,135 71,545 69,135 Accumulated Other Comprehensive LossBalance,beginning of period(15,179)(15,601)(15,534)(15,302)Other comprehensive loss attributable to PepsiCo(607)(179)(252)(478)Balance,end of period(15,786)(15,780)(15,786)(15,780)Repurchased Common StockBalance,beginning of

42、period(492)(40,260)(489)(39,518)(493)(40,282)(490)(39,506)Share repurchases(2)(310)(2)(292)(3)(468)(3)(466)Stock option exercises,RSUs and PSUs converted 1 31 1 35 3 210 3 197 Other 1 Balance,end of period(493)(40,539)(490)(39,775)(493)(40,539)(490)(39,775)Total PepsiCo Common Shareholders Equity 19

43、,446 17,685 19,446 17,685 Noncontrolling InterestsBalance,beginning of period 143 133 134 124 Net income attributable to noncontrolling interest 11 23 22 35 Distributions to noncontrolling interests(16)(14)(17)(15)Other,net(4)(2)(5)(4)Balance,end of period 134 140 134 140 Total Equity$19,580$17,825$

44、19,580$17,825(a)Cash dividends declared per common share were$1.355 and$1.265 for the 12 weeks ended June 15,2024 and June 17,2023,respectively,and$2.62 and$2.415 for the 24 weeks ended June 15,2024 and June 17,2023,respectively.See accompanying notes to the condensed consolidated financial statemen

45、ts.Table of Contents7Notes to the Condensed Consolidated Financial StatementsNote 1-Basis of Presentation and Our DivisionsBasis of PresentationWhen used in this report,the terms“we,”“us,”“our,”“PepsiCo”and the“Company”mean PepsiCo,Inc.and its consolidated subsidiaries,collectively.The accompanying

46、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 includ

47、e 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 b

48、y 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 conjunc

49、tion 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 and 24 weeks ended June 15,2024 are not necessarily indicative of the results expected for any future period or the full year.R

50、aw 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 merchandisin

51、g 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 March,April and May

52、are reflected in our results for the 12 weeks ended June 15,2024 and June 17,2023,and the months of January through May are reflected in our results for the 24 weeks ended June 15,2024 and June 17,2023.The preparation of our condensed consolidated financial statements requires management to make est

53、imates 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

54、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 market

55、ing 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 ot

56、herwise noted,and are based on unrounded amounts.Certain reclassifications were made to the prior years financial statements to conform to the current year presentation.Table of Contents8Our DivisionsWe are organized into seven reportable segments(also referred to as divisions),as follows:1)Frito-La

57、y North America(FLNA),which includes our branded convenient food businesses in the United States and Canada;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 No

58、rth 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

59、 and South Asia(AMESA),which includes all of our beverage and convenient food businesses in Africa,the Middle East and South Asia;and7)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 Zea

60、land,and China region.Net revenue of each division is as follows:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023FLNA$5,874$5,904$11,550$11,487 QFNA 561 684 1,154 1,461 PBNA 6,811 6,755 12,685 12,553 LatAm 3,045 2,856 5,112 4,633 Europe 3,515 3,428 5,451 5,314 AMESA 1,592 1,568 2,632

61、 2,587 APAC 1,103 1,127 2,167 2,133 Total$22,501$22,322$40,751$40,168 Our primary performance obligation is the distribution and sales of beverage and convenient food products to our customers.The following tables reflect the percentage of net revenue generated between our beverage business and our

62、convenient food business for each of our international divisions,as well as our consolidated net revenue:12 Weeks Ended6/15/20246/17/2023Beverages(a)Convenient FoodsBeverages(a)Convenient FoodsLatAm 10%90%9%91%Europe 48%52%49%51%AMESA 33%67%31%69%APAC 28%72%26%74%PepsiCo 43%57%42%58%Table of Content

63、s924 Weeks Ended6/15/20246/17/2023Beverages(a)Convenient FoodsBeverages(a)Convenient FoodsLatAm 9%91%9%91%Europe 47%53%48%52%AMESA 33%67%31%69%APAC 21%79%21%79%PepsiCo 42%58%42%58%(a)Beverage revenue from company-owned bottlers,which primarily includes our consolidated bottling operations in our PBN

64、A and Europe divisions,was 36%and 35%of our consolidated net revenue in the 12 and 24 weeks ended June 15,2024,respectively,and 37%and 36%of our consolidated net revenue in the 12 and 24 weeks ended June 17,2023,respectively.Generally,our finished goods beverage operations produce higher net revenue

65、 but lower operating margin as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.Operating profit of each division is as follows:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023FLNA$1,592$1,647$3,146$3,246 QFNA(a)85 129 36 31

66、7 PBNA(b)987 723 1,497 1,206 LatAm 637 592 1,122 956 Europe 620 476 822 547 AMESA 241 250 393 418 APAC 223 223 456 450 Total divisions 4,385 4,040 7,472 7,140 Corporate unallocated expenses(c)(337)(381)(707)(852)Total$4,048$3,659$6,765$6,288(a)In the 12 weeks ended June 15,2024,we recorded a pre-tax

67、 charge of$15 million($11 million after-tax or$0.01 per share)associated with a previously announced voluntary recall of certain bars and cereals in our QFNA division(Quaker Recall)with$8 million recorded in cost of sales and$7 million recorded in selling,general and administrative expenses.In the 2

68、4 weeks ended June 15,2024,we recorded a pre-tax charge of$182 million($139 million after-tax or$0.10 per share)associated with the Quaker Recall,with$175 million recorded in cost of sales related to property,plant and equipment write-offs,employee severance costs and other costs and$7 million recor

69、ded in selling,general and administrative expenses.(b)In the 12 and 24 weeks ended June 17,2023,we recorded our proportionate 39%share of Tropicana Brands Groups(TBG)impairment of indefinite-lived intangible assets,and recorded an other-than-temporary impairment of our equity method investment,both

70、of which resulted in pre-tax impairment charges of$113 million($86 million after-tax or$0.06 per share),recorded in selling,general and administrative expenses.See Note 9 for further information.(c)In both the 12 and 24 weeks ended June 15,2024 and June 17,2023,we recorded a pre-tax gain of$76 milli

71、on($57 million after-tax or$0.04 per share)and$85 million($65 million after-tax or$0.05 per share),respectively,in selling,general and administrative expenses as a result of the sale of corporate assets.Table of Contents10Note 2-Recently Issued Accounting PronouncementsAdoptedIn September 2022,the F

72、inancial 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 descr

73、iption 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 oblig

74、ations 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

75、in our 2024 annual reporting,on a prospective basis.See Note 12 for disclosures currently required under this guidance.Not Yet AdoptedIn 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:(

76、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)inc

77、ome 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 incom

78、e 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

79、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.In November 2023,the FASB issued guidance to enhance disclosure of expenses of a public entitys reportable segments.The new guidance r

80、equires 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

81、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 segments profi

82、t 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 clar

83、ifies that if the CODM uses more than one measure of a segments 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 disclosur

84、es.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 b

85、ecomes effective in our 2024 annual reporting.Table of Contents11Note 3-Restructuring and Impairment Charges2019 Multi-Year Productivity PlanWe publicly announced a multi-year productivity plan on February 15,2019(2019 Productivity Plan)that leverages new technology and business models to further si

86、mplify,harmonize and automate processes;re-engineers our go-to-market and information systems,including deploying the right automation for each market;and simplifies our organization and optimize our manufacturing and supply chain footprint.To build on the successful implementation of the 2019 Produ

87、ctivity 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.Th

88、ese 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 ch

89、arges are expected to be incurred by division approximately as follows:FLNAQFNAPBNALatAmEuropeAMESAAPACCorporateExpected pre-tax charges 10%1%30%10%25%5%4%15%A summary of our 2019 Productivity Plan charges is as follows:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023Cost of sales$3$

90、6$6 Selling,general and administrative expenses 66 89 149 199 Other pension and retiree medical benefits expense/(income)(a)8 15 (1)Total restructuring and impairment charges$74$92$170$204 After-tax amount$54$63$130$161 Impact on net income attributable to PepsiCo per common share$(0.04)$(0.05)$(0.0

91、9)$(0.12)12 Weeks Ended24 Weeks EndedPlan-to-Date6/15/20246/17/20236/15/20246/17/2023through 6/15/2024FLNA$13$6$35$13$287 QFNA 4 23 PBNA 5 5 15 10 282 LatAm 16 6 21 11 221 Europe 19 52 37 141 603 AMESA 3 3 5 100 APAC 4 4 4 5 89 Corporate 6 19 36 20 353 66 92 155 205 1,958 Other pension and retiree m

92、edical benefits expense/(income)(a)8 15 (1)112 Total$74$92$170$204$2,070(a)Income amount represents adjustments for changes in estimates of previously recorded amounts.Table of Contents1212 Weeks Ended24 Weeks EndedPlan-to-Date6/15/20246/17/20236/15/20246/17/2023through 6/15/2024Severance and other

93、employee costs$10$50$82$142$1,132 Asset impairments 3 4 196 Other costs 61 42 84 62 742 Total$74$92$170$204$2,070 Severance and other employee costs primarily include severance and other termination benefits,as well as voluntary separation arrangements.Other costs primarily include costs associated

94、with the implementation of our initiatives,including consulting and other professional fees,as well as contract termination costs.A summary of our 2019 Productivity Plan activity for the 24 weeks ended June 15,2024 is as follows:Severance and Other Employee CostsAsset ImpairmentsOther CostsTotalLiab

95、ility as of December 30,2023$188$9$197 2024 restructuring charges 82 4 84 170 Cash payments(84)(89)(173)Non-cash charges and translation(11)(4)14 (1)Liability as of June 15,2024$175$18$193 The majority of the restructuring accrual at June 15,2024 is expected to be paid by the end of 2024.Other Produ

96、ctivity InitiativesThere 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.Note 4-Intangible Ass

97、etsA summary of our amortizable intangible assets is as follows:6/15/202412/30/2023GrossAccumulated AmortizationNetGrossAccumulated AmortizationNetAcquired franchise rights$832$(219)$613$840$(214)$626 Customer relationships 553 (274)279 560 (265)295 Brands 1,081 (986)95 1,093 (989)104 Other identifi

98、able intangibles 440 (276)164 449 (275)174 Total$2,906$(1,755)$1,151$2,942$(1,743)$1,199 Table of Contents13The change in the book value of indefinite-lived intangible assets is as follows:Balance12/30/2023Translationand OtherBalance6/15/2024FLNAGoodwill$453$(5)$448 Brands 251 251 Total 704 (5)699 Q

99、FNAGoodwill 189 189 Total 189 189 PBNA Goodwill 11,961 (16)11,945 Reacquired franchise rights 7,114 (29)7,085 Acquired franchise rights 1,737 (5)1,732 Brands 2,508 2,508 Total 23,320 (50)23,270 LatAmGoodwill 460 (11)449 Brands 82 (2)80 Total 542 (13)529 EuropeGoodwill 3,166 (21)3,145 Reacquired fran

100、chise rights 419 (4)415 Acquired franchise rights 154 (4)150 Brands 1,124 (5)1,119 Total 4,863 (34)4,829 AMESA Goodwill 991 (16)975 Brands 137 (2)135 Total 1,128 (18)1,110 APAC Goodwill 508 (11)497 Brands 204 (4)200 Total 712 (15)697 Total goodwill 17,728 (80)17,648 Total reacquired franchise rights

101、 7,533 (33)7,500 Total acquired franchise rights 1,891 (9)1,882 Total brands 4,306 (13)4,293 Total$31,458$(135)$31,323 Table of Contents14Note 5-Income TaxesNumerous countries have agreed to a statement in support of the Organization for Economic Co-operation and Development(OECD)model rules that pr

102、opose 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 June 15,2024 did not have a material impact on our financial statements for the 12 and 24 weeks ended June 15,2024 and is not expe

103、cted to have a material impact on our 2024 financial statements.Note 6-Share-Based CompensationThe following table summarizes our total share-based compensation expense,which is primarily recorded in selling,general and administrative expenses:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246

104、/17/2023Share-based compensation expense equity awards$86$86$183$179 Share-based compensation expense liability awards 5 6 10 12 Restructuring charges 1 (1)(4)Total$92$91$189$191 The following table summarizes share-based awards granted under the terms of the PepsiCo,Inc.Long-Term Incentive Plan:24

105、Weeks Ended6/15/20246/17/2023Granted(a)Weighted-Average Grant PriceGranted(a)Weighted-Average Grant PriceStock options 1.8$164.25 2.0$171.00 RSUs and PSUs 2.3$164.25 2.1$171.11(a)In millions.All grant activity is disclosed at target.We granted long-term cash awards to certain executive officers and

106、other senior executives with an aggregate target value of$19 million and$20 million during the 24 weeks ended June 15,2024 and June 17,2023,respectively.For the 12 weeks ended June 15,2024 and June 17,2023,our grants of stock options,RSUs,PSUs and long-term cash awards were nominal.Our weighted-aver

107、age Black-Scholes fair value assumptions are as follows:24 Weeks Ended 6/15/20246/17/2023Expected life7 years7 yearsRisk-free interest rate 4.2%4.2%Expected volatility 16%16%Expected dividend yield 2.9%2.7%Table of Contents15Note 7-Pension and Retiree Medical BenefitsThe components of net periodic b

108、enefit cost/(income)for pension and retiree medical plans are as follows:12 Weeks EndedPensionRetiree MedicalU.S.International6/15/20246/17/20236/15/20246/17/20236/15/20246/17/2023Service cost$80$75$12$10$8$7 Other pension and retiree medical benefits income:Interest cost 135 137 36 34 8 9 Expected

109、return on plan assets(202)(196)(50)(46)(3)(3)Amortization of prior service credits(5)(6)(1)(1)(2)Amortization of net losses/(gains)18 16 5 3 (6)(6)Settlement losses 2 Special termination benefits 8 Total other pension and retiree medical benefits income(46)(49)(8)(9)(2)(2)Total$34$26$4$1$6$5 24 Week

110、s Ended PensionRetiree Medical U.S.International 6/15/20246/17/20236/15/20246/17/20236/15/20246/17/2023Service cost$160$151$21$18$15$13 Other pension and retiree medical benefits income:Interest cost 270 274 63 59 15 17 Expected return on plan assets(403)(393)(89)(81)(6)(6)Amortization of prior serv

111、ice credits(11)(12)(1)(2)(3)Amortization of net losses/(gains)36 32 9 5 (12)(12)Settlement losses 2 Special termination benefits 15 (1)Total other pension and retiree medical benefits income(93)(100)(16)(17)(5)(4)Total$67$51$5$1$10$9 We regularly evaluate opportunities to reduce risk and volatility

112、associated with our pension and retiree medical plans.In the 24 weeks ended June 15,2024 and June 17,2023,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

113、 benefit plans.Table of Contents16Note 8-Debt Obligations In the 24 weeks ended June 15,2024,we issued,through our wholly-owned consolidated finance subsidiary,PepsiCo Singapore Financing I Pte.Ltd.,the following notes:(a)Interest RateMaturity DatePrincipal Amount(b)Floating rateFebruary 2027$300 4.

114、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

115、 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 no

116、tes were used for general corporate purposes,including the repayment of commercial paper.In the 24 weeks ended June 15,2024,$1.3 billion of U.S.dollar-denominated senior notes,1.0 billion of euro-denominated senior notes and C$0.8 billion of Canadian dollar-denominated senior notes matured and were

117、paid.As of June 15,2024,we had$4.4 billion of commercial paper outstanding,excluding discounts.In the 12 and 24 weeks ended June 15,2024,we entered into a new five-year unsecured revolving credit agreement(Five-Year Credit Agreement),which expires on May 24,2029.The Five-Year Credit Agreement enable

118、s us and our borrowing subsidiaries to borrow up to$5.0 billion in U.S.dollars and/or euros,including a$0.75 billion swing line subfacility for euro-denominated borrowings permitted to be borrowed on a same-day basis,subject to customary terms and conditions.We may request that commitments under thi

119、s agreement be increased up to$5.75 billion(or the equivalent amount in euros).Additionally,we may,up to two times during the term of the 2024 Five-Year Credit Agreement,request renewal of the agreement for an additional one-year period.The Five-Year Credit Agreement replaced our$4.2 billion five-ye

120、ar credit agreement,dated as of May 26,2023.Also in the 12 and 24 weeks ended June 15,2024,we entered into a new 364-day unsecured revolving credit agreement(364-Day Credit Agreement),which expires on May 23,2025.The 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to$

121、5.0 billion in U.S.dollars and/or euros,subject to customary terms and conditions.We may request that commitments under this agreement be increased up to$5.75 billion(or the equivalent amount in euros).We may request renewal of this facility for an additional 364-day period or convert any amounts ou

122、tstanding into a term loan for a period of up to one year,which term loan would mature no later than the anniversary of the then effective termination date.The 364-Day Credit Agreement replaced our$4.2 billion 364-day credit agreement,dated as of May 26,2023.Funds borrowed under the Five-Year Credit

123、 Agreement and the 364-Day Credit Agreement may be used for general corporate purposes.Subject to certain conditions,we may borrow,prepay and reborrow amounts under these agreements.As of June 15,2024,there were no outstanding borrowings under the Five-Year Credit Agreement or the 364-Day Credit Agr

124、eement.Table of Contents17Note 9-Financial InstrumentsWe 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;andinterest rates.There have been no material changes during the 2

125、4 weeks ended June 15,2024 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

126、 counterparties require us to post full collateral on derivative instruments in a net liability position if our credit rating is at A2(Moodys 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 th

127、ese levels.The fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position as of June 15,2024 was$141 million.We have posted no collateral under these contracts and no credit-risk-related contingent features were triggered as of June 15

128、,2024.The notional amounts of our financial instruments used to hedge the above risks as of June 15,2024 and December 30,2023 are as follows:Notional Amounts(a)6/15/202412/30/2023Commodity$1.4$1.7 Foreign exchange$3.0$3.8 Interest rate$0.7$1.3 Net investment(b)$2.9$3.0(a)In billions.(b)The total not

129、ional amount of our net investment hedges consists of non-derivative debt instruments.As of June 15,2024,approximately 14%of total debt was subject to variable rates,compared to 9%as of December 30,2023.Debt SecuritiesHeld-to-MaturityAs of June 15,2024,we had no investments in held-to-maturity debt

130、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 ea

131、rnings.As of December 30,2023,gross unrecognized gains and losses and the allowance for expected credit losses were not material.Available-for-SaleThere were no material impairment charges related to investments in available-for-sale debt securities in both the 24 weeks ended June 15,2024 and June 1

132、7,2023.There were unrealized gains of$800 million as of June 15,2024 and no unrealized gains or losses as of June 17,2023 related to investments in available-for-sale debt securities.Related to our Level 3(significant unobservable inputs)investment in Celsius Holdings,Inc.(Celsius),we recorded an un

133、realized loss of$503 million and an unrealized gain of$188 million in other comprehensive income during the 12 and 24 weeks ended June 15,2024,respectively.Additionally,we recorded a decrease in the investment of$7 million due to cash dividends Table of Contents18received during the 12 and 24 weeks

134、ended June 15,2024.There were no Level 3 investments in available-for-sale debt securities during the 24 weeks ended June 17,2023.TBG InvestmentIn the 12 and 24 weeks ended June 17,2023,we recorded our proportionate 39%share of TBGs impairment of indefinite-lived intangible assets,and recorded an ot

135、her-than-temporary impairment of our equity method investment,both of which resulted in pre-tax impairment charges of$113 million($86 million after-tax or$0.06 per share),recorded in selling,general and administrative expenses in our PBNA division.We estimated the fair value of our ownership in TBG

136、using discounted cash flows and an option pricing model related to our liquidation preference in TBG,which we categorized as Level 3 in the fair value hierarchy.There were no impairment charges recorded in the 24 weeks ended June 15,2024.Recurring Fair Value MeasurementsThe fair values of our financ

137、ial assets and liabilities as of June 15,2024 and December 30,2023 are categorized as follows:6/15/202412/30/2023 Fair Value Hierarchy Levels(a)Assets(a)Liabilities(a)Assets(a)Liabilities(a)Available-for-sale debt securities(b)2,3$1,519$1,334$Index funds(c)1$315$292$Prepaid forward contracts(d)2$13$

138、13$Deferred compensation(e)2$493$477 Derivatives designated as cash flow hedging instruments:Foreign exchange(f)2$14$13$3$31 Interest rate(f)2 152 5 135 Commodity(g)2 23 8 10 24$37$173$18$190 Derivatives not designated as hedging instruments:Foreign exchange(f)2$14$14$33$38 Commodity(g)2 7 3 5 13$21

139、$17$38$51 Total derivatives at fair value(h)$58$190$56$241 Total$1,905$683$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 note

140、d,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$182 million and

141、 Level 3 assets of$1,337 million as of June 15,2024,and Level 2 assets of$178 million and Level 3 assets of$1,156 million as of December 30,2023.As of June 15,2024 and December 30,2023,$1,519 million and$1,334 million were classified as other assets,respectively.The fair values of our Level 2 invest

142、ments 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

143、%probability that a certain market-based condition will be met and an average estimated discount rate of 5.8%and 8.1%as of June 15,2024 and December 30,2023,respectively,based on Celsius estimated synthetic credit rating.An increase in the probability that certain market-based conditions will be met

144、 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.Table of Contents19(c)Based on the price of inde

145、x 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 elec

146、tions.(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 ar

147、rangements or similar agreements which are not offset on our balance sheet as of June 15,2024 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,therefo

148、re,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 June 15,2024

149、 and December 30,2023 was$41 billion,based upon prices of identical or similar instruments in the marketplace,which are considered Level 2 inputs.Losses/(gains)on our cash flow and net investment hedges are categorized as follows:12 Weeks EndedLosses/(Gains)Recognized inAccumulated OtherComprehensiv

150、e LossLosses/(Gains)Reclassified fromAccumulated OtherComprehensive Lossinto Income Statement(a)6/15/20246/17/20236/15/20246/17/2023Foreign exchange$(1)$43$9$14 Interest rate 9 (37)11 (30)Commodity(11)(15)30 28 Net investment(17)71 Total$(20)$62$50$12 24 Weeks Ended Losses/(Gains)Recognized inAccumu

151、lated OtherComprehensive LossLosses/(Gains)Reclassified fromAccumulated OtherComprehensive Lossinto Income Statement(a)6/15/20246/17/20236/15/20246/17/2023Foreign exchange$(15)$59$18$15 Interest rate 34 (26)35 (27)Commodity 28 50 51 37 Net investment(69)108 Total$(22)$191$104$25(a)Foreign exchange d

152、erivative 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

153、 the underlying commodity.See Note 11 for further information.Based on current market conditions,we expect to reclassify net losses of$55 million related to our cash flow hedges from accumulated other comprehensive loss within common shareholders equity into net income during the next 12 months.Tabl

154、e of Contents20Losses/(gains)recognized in the income statement related to our non-designated hedges are categorized as follows:12 Weeks Ended6/15/20246/17/2023Cost of salesSelling,general and administrative expensesTotalCost of salesSelling,general and administrative expensesTotalForeign exchange$2

155、4$24$44$44 Commodity(14)5 (9)5 3 8 Total$(14)$29$15$5$47$52 24 Weeks Ended6/15/20246/17/2023Cost of salesSelling,general and administrative expensesTotalCost of salesSelling,general and administrative expensesTotalForeign exchange$42$42$(1)$39$38 Commodity(15)(20)(35)36 53 89 Total$(15)$22$7$35$92$1

156、27 Note 10-Net Income Attributable to PepsiCo per Common ShareThe computations of basic and diluted net income attributable to PepsiCo per common share are as follows:12 Weeks Ended6/15/20246/17/2023IncomeShares(a)IncomeShares(a)Basic net income attributable to PepsiCo per common share$2.24$1.99 Net

157、 income available for PepsiCo common shareholders$3,083 1,375$2,748 1,378 Dilutive securities:Stock options,RSUs,PSUs and other(b)4 6 Diluted$3,083 1,379$2,748 1,384 Diluted net income attributable to PepsiCo per common share$2.23$1.99 24 Weeks Ended 6/15/20246/17/2023 IncomeShares(a)IncomeShares(a)

158、Basic net income attributable to PepsiCo per common share$3.73$3.40 Net income available for PepsiCo common shareholders$5,125 1,375$4,680 1,378 Dilutive securities:Stock options,RSUs,PSUs and other(b)5 6 Diluted$5,125 1,380$4,680 1,384 Diluted net income attributable to PepsiCo per common share$3.7

159、1$3.38(a)Weighted-average common shares outstanding(in millions).(b)The dilutive effect of these securities is calculated using the treasury stock method.Table of Contents21The weighted-average amount of antidilutive securities excluded from the calculation of diluted earnings per common share was 4

160、 million for the 12 and 24 weeks ended June 15,2024,and was immaterial for the 12 and 24 weeks ended June 17,2023.Note 11-Accumulated Other Comprehensive Loss Attributable to PepsiCoThe changes in the balances of each component of accumulated other comprehensive loss attributable to PepsiCo are as f

161、ollows:Currency Translation AdjustmentCash Flow HedgesPension and Retiree MedicalAvailable-for-Sale Debt Securities and Other(a)Accumulated Other Comprehensive Loss Attributable to PepsiCoBalance as of December 30,2023(b)$(13,255)$(31)$(2,719)$471$(15,534)Other comprehensive(loss)/income before recl

162、assifications(c)(168)(47)4 685 474 Amounts reclassified from accumulated other comprehensive loss 51 9 60 Net other comprehensive(loss)/income(168)4 13 685 534 Tax amounts(14)(1)(2)(162)(179)Balance as of March 23,2024(b)(13,437)(28)(2,708)994 (15,179)Other comprehensive(loss)/income before reclassi

163、fications(d)(295)3 (1)(511)(804)Amounts reclassified from accumulated other comprehensive loss 53 12 65 Net other comprehensive(loss)/income(295)56 11 (511)(739)Tax amounts 28 (14)(2)120 132 Balance as of June 15,2024(b)$(13,704)$14$(2,699)$603$(15,786)(a)The movements during the quarters primarily

164、represent fair value changes in available-for-sale debt securities,including our investment in Celsius convertible preferred stock.See Note 9 for further information.(b)Pension and retiree medical amounts are net of taxes of$1,282 million as of December 30,2023,$1,280 million as of March 23,2024 and

165、$1,278 million as of June 15,2024.(c)Currency translation adjustment primarily reflects depreciation of the South African rand,Canadian dollar and Russian ruble.(d)Currency translation adjustment primarily reflects depreciation of the Egyptian pound.Currency Translation AdjustmentCash Flow HedgesPen

166、sion and Retiree MedicalAvailable-for-Sale Debt Securities and OtherAccumulated Other Comprehensive Loss Attributableto PepsiCoBalance as of December 31,2022(a)$(12,948)$1$(2,361)$6$(15,302)Other comprehensive(loss)before reclassifications(b)(350)(92)(9)(1)(452)Amounts reclassified from accumulated

167、other comprehensive loss(c)108 13 5 126 Net other comprehensive(loss)(242)(79)(4)(1)(326)Tax amounts 7 20 27 Balance as of March 25,2023(a)(13,183)(58)(2,365)5 (15,601)Other comprehensive(loss)/income before reclassifications(d)(215)19 (14)1 (209)Amounts reclassified from accumulated other comprehen

168、sive loss 12 5 17 Net other comprehensive(loss)/income(215)31 (9)1 (192)Tax amounts 17 (7)3 13 Balance as of June 17,2023(a)$(13,381)$(34)$(2,371)$6$(15,780)(a)Pension and retiree medical amounts are net of taxes of$1,184 million as of both December 31,2022 and March 25,2023 and$1,187 million as of

169、June 17,2023.(b)Currency translation adjustment primarily reflects depreciation of the Egyptian pound and Russian ruble.(c)Release of currency translation adjustment is in relation to the sale of a non-strategic brand and an investment within our AMESA division.(d)Currency translation adjustment pri

170、marily reflects depreciation of the Russian ruble.Table of Contents22The reclassifications from accumulated other comprehensive loss to the income statement are summarized as follows:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023Affected Line Item in the Income StatementCurrency tr

171、anslation:Divestitures$108 Selling,general and administrative expensesCash flow hedges:Foreign exchange contracts$(1)$(3)Net revenueForeign exchange contracts 9 15 18 18 Cost of salesInterest rate derivatives 14 (30)35 (27)Selling,general and administrative expensesCommodity contracts 30 28 51 38 Co

172、st of salesCommodity contracts (1)Selling,general and administrative expensesNet losses before tax 53 12 104 25 Tax amounts(14)(3)(27)(7)Net losses after tax$39$9$77$18 Pension and retiree medical items:Amortization of prior service credits$(7)$(8)$(14)$(15)Other pension and retiree medical benefits

173、 incomeAmortization of net losses 17 13 33 25 Other pension and retiree medical benefits incomeSettlement losses 2 2 Other pension and retiree medical benefits incomeNet losses before tax 12 5 21 10 Tax amounts(2)(1)(4)(2)Net losses after tax$10$4$17$8 Total net losses reclassified,net of tax$49$13$

174、94$134 Note 12-Supply Chain Financing ArrangementsWe maintain voluntary supply chain finance agreements with several participating global financial institutions.Under these agreements,our suppliers,at their sole discretion,may elect to sell their accounts receivable with PepsiCo to these participati

175、ng global financial institutions.As of June 15,2024 and December 30,2023,$1.6 billion and$1.7 billion,respectively,of our accounts payable are to suppliers participating in these financing arrangements.For further information on the key terms of these supply chain financing programs,see Note 14 to o

176、ur consolidated financial statements in our 2023 Form 10-K.Table of Contents23Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations.FINANCIAL REVIEWOur discussion and analysis is intended to help the reader understand our results of operations and financial cond

177、ition and is provided as an addition to,and should be read in connection with,our condensed consolidated financial statements and the accompanying notes.Unless otherwise noted,tabular dollars are presented in millions,except per share amounts.All per share amounts reflect common stock per share amou

178、nts,assume dilution unless otherwise noted,and are based on unrounded amounts.Percentage changes are based on unrounded amounts.Our Critical Accounting Policies and EstimatesThe critical accounting policies and estimates below should be read in conjunction with those outlined in our 2023 Form 10-K.T

179、otal Marketplace SpendingWe offer sales incentives and discounts through various programs to customers and consumers.Total marketplace spending includes sales incentives,discounts,advertising and other marketing activities.Sales incentives and discounts are primarily accounted for as a reduction of

180、revenue.A number of our sales incentives,such as bottler funding to independent bottlers and customer volume rebates,are based on annual targets,and accruals are established during the year,as products are delivered,for the expected payout,which may occur after year end once reconciled and settled.T

181、hese accruals are based on contract terms and our historical experience with similar programs and require management judgment with respect to estimating customer and consumer participation and performance levels.Differences between estimated expense and actual incentive costs are normally insignific

182、ant and are recognized in earnings in the period such differences are determined.In addition,certain advertising and marketing costs are also based on annual targets and recognized during the year as incurred.For interim reporting,our policy is to allocate our forecasted full-year sales incentives f

183、or most of our programs to each of our interim reporting periods in the same year that benefits from the programs.The allocation methodology is based on our forecasted sales incentives for the full year and the proportion of each interim periods actual gross revenue or volume,as applicable,to our fo

184、recasted annual gross revenue or volume,as applicable.Based on our review of the forecasts at each interim period,any changes in estimates and the related allocation of sales incentives are recognized beginning in the interim period that they are identified.In addition,we apply a similar allocation

185、methodology for interim reporting purposes for certain advertising and other marketing activities.Income TaxesIn determining our quarterly provision for income taxes,we use an estimated annual effective tax rate which is based on our expected annual income,statutory tax rates and tax structure and t

186、ransactions,including transfer pricing arrangements,available to us in the various jurisdictions in which we operate.Significant judgment is required in determining our annual tax rate and in evaluating our tax positions.Subsequent recognition,derecognition and measurement of a tax position taken in

187、 a previous period are separately recognized in the quarter in which they occur.Our Business RisksThis Form 10-Q contains statements reflecting our views about our future performance that constitute“forward-looking statements”within the meaning of the Private Securities Litigation Reform Act of 1995

188、(Reform Act).Statements that constitute forward-looking statements within the meaning of the Reform Act Table of Contents24are generally identified through the inclusion of words such as“aim,”“anticipate,”“believe,”“drive,”“estimate,”“expect,”“expressed confidence,”“forecast,”“future,”“goal,”“guidan

189、ce,”“intend,”“may,”“objective,”“outlook,”“plan,”“position,”“potential,”“project,”“seek,”“should,”“strategy,”“target,”“will”or similar statements or variations of such words and other similar expressions.All statements addressing our future operating performance,and statements addressing events and d

190、evelopments that we expect or anticipate will occur in the future,are forward-looking statements within the meaning of the Reform Act.These forward-looking statements are based on currently available information,operating plans and projections about future events and trends.They inherently involve r

191、isks and uncertainties that could cause actual results to differ materially from those predicted in any such forward-looking statement.Such risks and uncertainties include,but are not limited to:the risks associated with the deadly conflict in Ukraine;future demand for PepsiCos products;damage to Pe

192、psiCos reputation or brand image;product recalls or other issues or concerns with respect to product quality and safety;PepsiCos ability to compete effectively;PepsiCos ability to attract,develop and maintain a highly skilled and diverse workforce or effectively manage changes in our workforce;water

193、 scarcity;changes in the retail landscape or in sales to any key customer;disruption of PepsiCos manufacturing operations or supply chain,including continued increased commodity,packaging,transportation,labor and other input costs;political,social or geopolitical conditions in the markets where Peps

194、iCos products are made,manufactured,distributed or sold;PepsiCos ability to grow its business in developing and emerging markets;changes in economic conditions in the countries in which PepsiCo operates;future cyber incidents and other disruptions to our information systems;failure to successfully c

195、omplete or manage strategic transactions;PepsiCos reliance on third-party service providers and enterprise-wide systems;climate change or measures to address climate change and other sustainability matters;strikes or work stoppages;failure to realize benefits from PepsiCos productivity initiatives;d

196、eterioration in estimates and underlying assumptions regarding future performance of our business or investments that can result in impairment charges;fluctuations or other changes in exchange rates;any downgrade or potential downgrade of PepsiCos credit ratings;imposition or proposed imposition of

197、new or increased taxes aimed at PepsiCos products;imposition of limitations on the marketing or sale of PepsiCos products;changes in laws and regulations related to the use or disposal of plastics or other packaging materials;failure to comply with personal data protection and privacy laws;increase

198、in income tax rates,changes in income tax laws or disagreements with tax authorities;failure to adequately protect PepsiCos intellectual property rights or infringement on intellectual property rights of others;failure to comply with applicable laws and regulations;potential liabilities and costs fr

199、om litigation,claims,legal or regulatory proceedings,inquiries or investigations;and other risks and uncertainties including those described in“Item 1A.Risk Factors”and“Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations Our Business Risks,”included in our 202

200、3 Form 10-K and in“Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations Our Business Risks”of this Form 10-Q.Investors are cautioned not to place undue reliance on any such forward-looking statements,which speak only as of the date they are made.We undertake no

201、 obligation to update any forward-looking statement,whether as a result of new information,future events or otherwise.Risks Associated with Commodities and Our Supply ChainDuring the 12 and 24 weeks ended June 15,2024,we continued to experience higher operating costs,including on transportation and

202、labor costs,which may continue for the remainder of 2024.Many of the commodities used in the production and transportation of our products are purchased in the open market.The prices we pay for such items are subject to fluctuation,and we manage this risk through the use of fixed-price contracts and

203、 purchase orders,pricing agreements and derivative instruments,including swaps and futures.A number of external factors,including the ongoing conflict in Ukraine,the inflationary cost environment,adverse weather conditions,supply chain disruptions and labor shortages,have impacted and Table of Conte

204、nts25may continue to impact transportation and labor costs.When prices increase,we may or may not pass on such increases to our customers,which may result in reduced volume,revenue,margins and operating results.See Note 9 to our condensed consolidated financial statements in this Form 10-Q and Note

205、9 to our consolidated financial statements in our 2023 Form 10-K for further information on how we manage our exposure to commodity prices.Risks Associated with Climate ChangeCertain jurisdictions in which our products are made,manufactured,distributed or sold have either imposed,or are considering

206、imposing,new or increased legal and regulatory requirements to reduce or mitigate the potential effects of climate change,including regulation of greenhouse gas emissions and potential carbon pricing programs.These new or increased legal or regulatory requirements,along with initiatives to meet our

207、sustainability goals,could result in significant increased costs and additional investments in facilities and equipment.However,we are unable to predict the scope,nature and timing of any new or increased environmental laws and regulations and therefore cannot predict the ultimate impact of such law

208、s and regulations on our business or financial results.We continue to monitor existing and proposed laws and regulations in the jurisdictions in which our products are made,manufactured,distributed and sold and to consider actions we may take to potentially mitigate the unfavorable impact,if any,of

209、such laws or regulations.Risks Associated with International Operations In the 12 weeks ended June 15,2024,our financial results outside of North America reflect the months of March,April and May.In the 24 weeks ended June 15,2024,our financial results outside of North America reflect the months of

210、January through May.In the 24 weeks ended June 15,2024,our operations outside of the United States generated 42%of our consolidated net revenue,with Mexico,Canada,Russia,China,the United Kingdom,Brazil and South Africa comprising approximately 24%of our consolidated net revenue.As a result,we are ex

211、posed to foreign exchange risk in the international markets in which our products are made,manufactured,distributed or sold.In the 12 and 24 weeks ended June 15,2024,unfavorable foreign exchange reduced net revenue growth by 1 percentage point primarily due to declines in the Russian ruble and Egypt

212、ian pound,partially offset by an appreciation of the Mexican peso.Currency declines against the U.S.dollar which are not offset could adversely impact our future financial results.In addition,volatile economic,political,social and geopolitical conditions,civil unrest and wars and other military conf

213、licts,acts of terrorism and natural disasters and other catastrophic events in certain markets in which our products are made,manufactured,distributed or sold,including in Argentina,Brazil,China,Mexico,the Middle East,Pakistan,Russia,Turkey and Ukraine,continue to result in challenging operating env

214、ironments and have resulted in and could continue to result in changes in how we operate in certain of these markets.Debt and credit issues,currency controls or fluctuations in certain of these international markets(including restrictions on the transfer of funds to and from certain markets),as well

215、 as the threat or imposition of new or expanded tariffs,sanctions or export controls have also continued to impact our operations in certain of these international markets.We continue to closely monitor the economic,operating and political environment in the markets in which we operate,including ris

216、ks of additional impairments or write-offs and currency devaluation,and to identify actions to potentially mitigate any unfavorable impacts on our future results.Our operations in Russia accounted for 4%of our consolidated net revenue for both the 12 and 24 weeks ended June 15,2024.Russia accounted

217、for 4%of our consolidated assets,including 11%of our consolidated cash and cash equivalents,and 34%of our accumulated currency translation adjustment loss as of June 15,2024.Table of Contents26See Note 9 to our condensed consolidated financial statements in this Form 10-Q for the fair values of our

218、financial instruments as of June 15,2024 and December 30,2023 and Note 9 to our consolidated financial statements in our 2023 Form 10-K for a discussion of these items.Imposition of Taxes and Regulations on our ProductsCertain jurisdictions in which our products are made,manufactured,distributed or

219、sold have either imposed,or are considering imposing,new or increased taxes or regulations on the manufacture,distribution or sale of our products or their packaging,ingredients or substances contained in,or attributes of,our products or their packaging,commodities used in the production of our prod

220、ucts or their packaging or the recyclability or recoverability of our packaging.These taxes and regulations vary in scope and form.For example,some taxes apply to all beverages,including non-caloric beverages,while others apply only to beverages with a caloric sweetener(e.g.,sugar).Further,some regu

221、lations apply to all products using certain types of packaging(e.g.,plastic),while others are designed to increase the sustainability of packaging,encourage waste reduction and increased recycling rates or facilitate the waste management process or restrict the sale of products in certain packaging.

222、We sell a wide variety of beverages and convenient foods in more than 200 countries and territories and the profile of the products we sell,the amount of revenue attributable to such products and the type of packaging used vary by jurisdiction.Because of this,we cannot predict the scope or form pote

223、ntial taxes,regulations or other limitations on our products or their packaging may take,and therefore cannot predict the impact of such taxes,regulations or limitations on our financial results.In addition,taxes,regulations and limitations may impact us and our competitors differently.We continue t

224、o monitor existing and proposed taxes and regulations in the jurisdictions in which our products are made,manufactured,distributed and sold and to consider actions we may take to potentially mitigate the unfavorable impact,if any,of such taxes,regulations or limitations,including advocating alternat

225、ive measures with respect to the imposition,form and scope of any such taxes,regulations or limitations.OECD Global Minimum TaxNumerous countries have agreed to a statement in support of the OECD model rules that propose a global minimum tax rate of 15%.Certain countries have enacted legislation inc

226、orporating the agreed global minimum tax effective in 2024.Legislation enacted as of June 15,2024 is not expected to have a material impact on our 2024 financial statements.More countries are expected to enact similar legislation,with widespread implementation of a global minimum tax by 2025.As legi

227、slation becomes effective in more countries in which we do business,our taxes could increase and negatively impact our provision for income taxes.We will continue to monitor pending legislation and implementation by countries and evaluate the potential impact on our business in future periods.Retail

228、 LandscapeOur industry continues to be affected by disruption of the retail landscape,including the continued growth in sales through e-commerce websites and mobile commerce applications,including through subscription services,the integration of physical and digital operations among retailers and th

229、e international expansion of hard discounters.We have seen and expect to continue to see a further shift to e-commerce,online-to-offline and other online purchasing by consumers.We continue to monitor changes in the retail landscape and seek to identify actions we may take to build our global e-comm

230、erce and digital capabilities,such as expanding our direct-to-consumer business,and distribute our products effectively through all existing and emerging channels of trade and potentially mitigate any unfavorable impacts on our future results.The retail industry also continues to be impacted by the

231、actions and increasing power of retailers,including as a result consolidation of ownership resulting in large retailers or buying groups with increased purchasing power,particularly in North America,Europe and Latin America.We have seen and Table of Contents27expect to continue to see retailers and

232、buying groups impact our ability to compete in these jurisdictions.We continue to monitor our relationships with retailers and buying groups and seek to identify actions we may take to maintain mutually beneficial relationships and resolve any significant disputes and potentially mitigate any unfavo

233、rable impacts on our future results.Cautionary statements included above and in“Item 1A.Risk Factors”and“Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations Our Business Risks”in our 2023 Form 10-K should be considered when evaluating our trends and future res

234、ults.Results of Operations Consolidated ReviewConsolidated ResultsVolumePhysical or unit volume is one of the key metrics management uses internally to make operating and strategic decisions,including the preparation of our annual operating plan and the evaluation of our business performance.We beli

235、eve volume provides additional information to facilitate the comparison of our historical operating performance and underlying trends and provides additional transparency on how we evaluate our business because it measures demand for our products at the consumer level.See“Item 7.Managements Discussi

236、on and Analysis of Financial Condition and Results of Operations Our Financial Results Volume”included in our 2023 Form 10-K for further information on volume.Unit volume growth adjusts for the impacts of acquisitions and divestitures.Acquisitions and divestitures,when used in this report,reflect me

237、rgers and acquisitions activity,as well as divestitures and other structural changes,including changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees.Further,unit volume growth excludes the impact of an additional week of results every five or six years(53r

238、d reporting week),where applicable.We report all of our international operations on a monthly calendar basis.The 12 weeks ended June 15,2024 and June 17,2023 include volume outside of North America for the months of March,April and May.The 24 weeks ended June 15,2024 and June 17,2023 include volume

239、outside of North America for the months of January through May.Consolidated Net Revenue and Operating Profit 12 Weeks Ended24 Weeks Ended 6/15/20246/17/2023Change6/15/20246/17/2023ChangeNet revenue$22,501$22,322 1%$40,751$40,168 1.5%Operating profit$4,048$3,659 11%$6,765$6,288 8%Operating margin 18.

240、0%16.4%1.6 16.6%15.7%0.9 See“Results of Operations Division Review”for a tabular presentation and discussion of key drivers of net revenue.12 Weeks Operating profit increased 11%and operating margin increased 1.6 percentage points.Operating profit growth was primarily driven by effective net pricing

241、,productivity savings and a 3-percentage-point impact of prior-year impairment charges related to our TBG investment.These impacts were partially offset by certain operating cost increases and a decline in organic volume.Table of Contents2824 WeeksOperating profit increased 8%and operating margin in

242、creased 0.9 percentage points.Operating profit growth was primarily driven by effective net pricing and productivity savings.These impacts were partially offset by certain operating cost increases and a decline in organic volume.Other Consolidated Results 12 Weeks Ended24 Weeks Ended 6/15/2024 6/17/

243、2023Change6/15/20246/17/2023ChangeOther pension and retiree medical benefits income$56$60$(4)$114$121$(7)Net interest expense and other$234$201$33$436$401$35 Tax rate 20.1%21.3%20.1%21.5%Net income attributable to PepsiCo$3,083$2,748 12%$5,125$4,680 10%Net income attributable to PepsiCo per common s

244、hare diluted$2.23$1.99 13%$3.71$3.38 10%12 WeeksOther pension and retiree medical benefits income decreased$4 million,primarily reflecting the recognition of special termination benefits due to restructuring actions as part of our 2019 Productivity Plan,partially offset by the recognition of gains o

245、n plan assets and impact of discretionary plan contributions.Net interest expense and other increased$33 million,due to higher interest rates on debt,higher average debt balances and lower gains on the market value of investments used to economically hedge a portion of our deferred compensation liab

246、ility,partially offset by higher average cash balances and higher interest rates on average cash balances.The reported tax rate decreased 1.2 percentage points,primarily as a result of the release of a valuation allowance in a foreign jurisdiction in the current year,partially offset by the unfavora

247、ble impact of reserves for international unrecognized tax benefits.24 WeeksOther pension and retiree medical benefits income decreased$7 million,primarily reflecting the recognition of special termination benefits due to restructuring actions as part of our 2019 Productivity Plan,partially offset by

248、 the recognition of gains on plan assets and impact of discretionary plan contributions.Net interest expense and other increased$35 million,due to higher interest rates on debt,higher average debt balances and lower gains on the market value of investments used to economically hedge a portion of our

249、 deferred compensation liability,partially offset by higher average cash balances and higher interest rates on average cash balances.The reported tax rate decreased 1.4 percentage points,primarily reflecting the release of a valuation allowance in a foreign jurisdiction in the current year.Results o

250、f Operations Division ReviewWhile our financial results in 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 March,April and May are reflected in our results for the 12 weeks ended June 15,2024 and June

251、17,2023,and the months January through May are reflected in our results for the 24 weeks ended June 15,2024 and June 17,2023.Table of Contents29In the discussions of net revenue and operating profit below,“effective net pricing”reflects the year-over-year impact of discrete pricing actions,sales inc

252、entive activities and mix resulting from selling varying products in different package sizes and in different countries.See“Our Business Risks,”“Non-GAAP Measures”and“Items Affecting Comparability”for a discussion of items to consider when evaluating our results and related information regarding mea

253、sures not in accordance with GAAP.Net Revenue and Organic Revenue GrowthOrganic revenue growth is a non-GAAP financial measure.For further information on this measure,see“Non-GAAP Measures.”12 Weeks Ended 6/15/2024Impact ofImpact ofReported%Change,GAAP MeasureForeign exchange translationAcquisitions

254、 and divestituresOrganic%Change,Non-GAAP Measure(a)Organic volume(b)Effective net pricingFLNA(0.5)%(4)3 QFNA(c)(18)%(18)%(17)(1)PBNA 1%1%(3.5)5 LatAm 7%(5)2%(5)6 Europe 2.5%5 7%2 5 AMESA 2%11 (1)12%1 11 APAC(2)%3 1%1.5 Total 1%1 2%(3)5 24 Weeks Ended 6/15/2024Impact ofImpact ofReported%Change,GAAP M

255、easureForeign exchange translationAcquisitions and divestituresOrganic%Change,Non-GAAP Measure(a)Organic volume(b)Effective net pricingFLNA 0.5%1%(3)3 QFNA(c)(21)%(21)%(20)(1)PBNA 1%1%(4)5 LatAm 10%(6)4%(3)7 Europe 3%5.5 8%2 6 AMESA 2%8 10%2 7 APAC 2%4 6%5 0.5 Total 1.5%1 2%(2)5(a)Amounts may not su

256、m due to rounding.(b)Excludes the impact of acquisitions and divestitures.In certain instances,the impact of organic volume on net revenue growth differs from the unit volume change disclosed in the following divisional discussions due to the impacts of product mix,nonconsolidated joint venture volu

257、me,and,for our franchise-owned beverage businesses,temporary timing differences between bottler case sales and concentrate shipments and equivalents(CSE).We report net revenue from our franchise-owned beverage businesses based on CSE.The volume sold by our nonconsolidated joint ventures has no direc

258、t impact on our net revenue.(c)Net revenue decline was impacted by the Quaker Recall.Table of Contents30Operating Profit,Operating Profit Adjusted for Items Affecting Comparability and Operating Profit Performance Adjusted for Items Affecting Comparability on a Constant Currency BasisOperating profi

259、t adjusted for items affecting comparability and operating profit performance adjusted for items affecting comparability on a constant currency basis are both non-GAAP financial measures.For further information on these measures,see“Non-GAAP Measures”and“Items Affecting Comparability.”Operating Prof

260、it and Operating Profit Adjusted for Items Affecting Comparability12 Weeks Ended 6/15/2024Items Affecting Comparability(a)Reported,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesProduct recall-related impactCore,Non-GAAP MeasureFLNA$1,592$13$1,605 QFNA 85 15 100 PBNA 987 5

261、992 LatAm 637 16 653 Europe 620 19 639 AMESA 241 3 244 APAC 223 4 227 Corporate unallocated expenses(337)(8)6 (339)Total$4,048$(8)$66$15$4,121 12 Weeks Ended 6/17/2023Items Affecting Comparability(a)Reported,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition and div

262、estiture-related charges(b)Impairment and other charges/credits(b)Core,Non-GAAP MeasureFLNA$1,647$6$1,653 QFNA 129 129 PBNA 723 5 8 113 849 LatAm 592 6 2 600 Europe 476 52 (2)(5)521 AMESA 250 1 251 APAC 223 4 227 Corporate unallocated expenses(381)(9)19 (371)Total$3,659$(9)$92$7$110$3,859 24 Weeks E

263、nded 6/15/2024Items Affecting Comparability(a)Reported,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition and divestiture-related chargesProduct recall-related impactCore,Non-GAAP MeasureFLNA$3,146$35$3,181 QFNA 36 4 182 222 PBNA 1,497 15 2 1,514 LatAm 1,122 21 1,14

264、3 Europe 822 37 859 AMESA 393 3 396 APAC 456 4 460 Corporate unallocated expenses(707)(44)36 (715)Total$6,765$(44)$155$2$182$7,060 Table of Contents3124 Weeks Ended 6/17/2023Items Affecting Comparability(a)Reported,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition

265、and divestiture-related charges(b)Impairment and other charges/credits(b)Core,Non-GAAP MeasureFLNA$3,246$13$3,259 QFNA 317 317 PBNA 1,206 10 10 113 1,339 LatAm 956 11 2 969 Europe 547 141 (2)(5)681 AMESA 418 5 1 (13)411 APAC 450 5 455 Corporate unallocated expenses(852)62 20 (770)Total$6,288$62$205$

266、9$97$6,661(a)See“Items Affecting Comparability”for further information.(b)Income amounts represent adjustments for changes in estimates of previously recorded amounts.Operating Profit Performance and Operating Profit Performance Adjusted for Items Affecting Comparability on a Constant Currency Basis

267、12 Weeks Ended 6/15/2024Impact of Items Affecting Comparability(a)Impact ofReported%Change,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition and divestiture-related chargesImpairment and other charges/creditsProduct recall-related impactCore%Change,Non-GAAP Measure

268、(b)Foreign exchangetranslationCore Constant Currency%Change,Non-GAAP Measure(b)FLNA(3)%(3)%(3)%QFNA(34)%(1)12 (23)%(23)%PBNA 37%(1)(18)17%17%LatAm 8%1 9%(7)2%Europe 30%(9)1.5 23%6 29%AMESA(4)%1 (3)%6 3%APAC%1%4 4%Corporate unallocated expenses(11)%3 (9)%(9)%Total 11%(1)(3)0.5 7%0.5 7%24 Weeks Ended

269、6/15/2024Impact of Items Affecting Comparability(a)Impact ofReported%Change,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition and divestiture-related chargesImpairment and other charges/creditsProduct recall-related impactCore%Change,Non-GAAP Measure(b)Foreign exch

270、angetranslationCore Constant Currency%Change,Non-GAAP Measure(b)FLNA(3)%1 (2)%(2)%QFNA(89)%1 58 (30)%(30)%PBNA 24%0.5 (1)(11)13%13%LatAm 17%1 18%(8)10%Europe 50%(26)1 26%8 34%AMESA(6)%(0.5)3 (4)%5 1%APAC 1%1%4 6%Corporate unallocated expenses(17)%12 (2)(7)%(7)%Total 8%(2)(1)(2)4 6%6%(a)See“Items Aff

271、ecting Comparability”for further information.(b)Amounts may not sum due to rounding.Table of Contents32FLNA12 WeeksNet revenue decreased 0.5%,primarily driven by a decrease in organic volume,partially offset by effective net pricing.Unit volume declined 4%,primarily driven by mid-single-digit declin

272、es in trademark Cheetos,trademark Doritos and trademark Lays,partially offset by double-digit growth in trademark Chesters.Operating profit decreased 3%,primarily reflecting certain operating cost increases,including strategic initiatives,and the decrease in organic volume.These impacts were partial

273、ly offset by the effective net pricing,productivity savings,and a 2-percentage-point favorable impact of lower commodity costs,primarily driven by cooking oil.24 WeeksNet revenue increased 0.5%,primarily driven by effective net pricing,partially offset by a decrease in organic volume.Unit volume dec

274、lined 3%,primarily driven by mid-single-digit declines in trademark Lays,trademark Cheetos and trademark Tostitos,partially offset by double-digit growth in trademark Chesters.Operating profit decreased 3%,primarily reflecting certain operating cost increases,including strategic initiatives,and the

275、decrease in organic volume.These impacts were partially offset by the effective net pricing and productivity savings.QFNA12 WeeksNet revenue decreased 18%,primarily driven by a decrease in organic volume,which was negatively impacted by the loss of sales from products included in the Quaker Recall.U

276、nit volume declined 17%,primarily driven by double-digit declines in bars,pancake syrup and mix,oatmeal and ready-to-eat cereals.The unit volume decline in bars and ready-to-eat cereals was negatively impacted by the loss of sales from products included in the Quaker Recall.Operating profit decrease

277、d 34%,primarily reflecting the net revenue performance,certain operating cost increases,a 12-percentage-point impact of charges associated with the Quaker Recall and a 6-percentage-point unfavorable impact of commodity costs,partially offset by productivity savings and lower advertising and marketin

278、g expenses.24 WeeksNet revenue decreased 21%,primarily driven by a decrease in organic volume,which was negatively impacted by the loss of sales from products included in the Quaker Recall.Unit volume declined 20%,primarily driven by double-digit declines in bars,ready-to-eat cereals,pancake syrup a

279、nd mix and oatmeal.The unit volume decline in bars and ready-to-eat cereals was negatively impacted by the loss of sales from products included in the Quaker Recall.Operating profit decreased 89%,reflecting a 58-percentage-point impact of charges associated with the Quaker Recall,the net revenue per

280、formance,certain operating cost increases and a 4-percentage-point unfavorable impact of commodity costs,partially offset by productivity savings and lower advertising and marketing expenses.Table of Contents33PBNA12 WeeksNet revenue increased 1%,primarily driven by effective net pricing,partially o

281、ffset by a decrease in organic volume.Unit volume declined 3%,driven by a 5%decline in non-carbonated beverage(NCB)volume and a 2%decline in carbonated soft drink(CSD)volume.The NCB volume decline primarily reflected mid-single-digit declines in our overall water portfolio and our juice and juice dr

282、inks portfolio,a low-single-digit decline in Gatorade sports drinks and a high-single-digit decline in our Lipton ready-to-drink tea portfolio,partially offset by double-digit growth in our energy portfolio.Operating profit increased 37%,primarily driven by productivity savings,the effective net pri

283、cing and an 18-percentage-point impact of prior-year impairment charges related to our TBG investment.These impacts were partially offset by certain operating cost increases and the decrease in organic volume.24 WeeksNet revenue increased 1%,primarily driven by effective net pricing,partially offset

284、 by a decrease in organic volume.Unit volume declined 4%,driven by a 6%decline in NCB volume and a 2%decline in CSD volume.The NCB volume decline primarily reflected mid-single-digit declines in Gatorade sports drinks and our overall water portfolio and a high-single-digit decline in our Lipton read

285、y-to-drink tea portfolio,partially offset by double-digit growth in our energy portfolio.Operating profit increased 24%,primarily driven by the effective net pricing and productivity savings.Additionally,impairment charges related to our TBG investment and net unfavorable insurance adjustments in th

286、e prior year contributed 11 percentage points and 4 percentage points,respectively,to operating profit growth.These impacts were partially offset by certain operating cost increases,the decrease in organic volume and a 4-percentage-point impact of higher commodity costs.LatAm12 WeeksNet revenue incr

287、eased 7%,primarily reflecting effective net pricing and a 5-percentage-point impact of favorable foreign exchange,partially offset by a net decline in organic volume.Convenient foods unit volume declined 6%,primarily reflecting double-digit declines in Peru and Argentina,partially offset by low-sing

288、le-digit growth in Brazil.Additionally,Mexico experienced a mid-single-digit decline.Beverage unit volume grew 2%,primarily reflecting mid-single-digit growth in Mexico and Brazil and high-single-digit growth in Guatemala,partially offset by double-digit declines in Colombia,Argentina and Peru and a

289、 mid-single-digit decline in Chile.Operating profit increased 8%,primarily reflecting the effective net pricing,productivity savings and a 7-percentage-point impact of favorable foreign exchange.These impacts were partially offset by certain operating cost increases,the net decline in organic volume

290、 and higher advertising and marketing expenses.24 WeeksNet revenue increased 10%,primarily reflecting effective net pricing and a 6-percentage-point impact of favorable foreign exchange,partially offset by a net decline in organic volume.Table of Contents34Convenient foods unit volume declined 4%,pr

291、imarily reflecting double-digit declines in Peru and Argentina,partially offset by low-single-digit growth in Brazil.Additionally,Mexico experienced a low-single-digit decline.Beverage unit volume grew 2%,primarily reflecting mid-single-digit growth in Mexico and Brazil and high-single-digit growth

292、in Guatemala,partially offset by a double-digit decline in Colombia,a high-single-digit decline in Argentina,a mid-single-digit decline in Peru and a low-single-digit decline in Chile.Operating profit increased 17%,primarily reflecting the effective net pricing,productivity savings,an 8-percentage-p

293、oint impact of favorable foreign exchange and a 3-percentage-point favorable impact of lower commodity costs.These impacts were partially offset by certain operating cost increases,the net decline in organic volume and higher advertising and marketing expenses.Europe12 WeeksNet revenue increased 2.5

294、%,primarily reflecting effective net pricing and organic volume growth,partially offset by a 5-percentage-point impact of unfavorable foreign exchange.Convenient foods unit volume grew 5%,primarily reflecting double-digit growth in Russia and high-single-digit growth in Turkey,partially offset by a

295、low-single-digit decline in the Netherlands.Additionally,the United Kingdom experienced low-single-digit growth and France experienced mid-single-digit growth.Beverage unit volume grew 1%,primarily reflecting mid-single-digit growth in Russia and low-single-digit growth in the United Kingdom,partial

296、ly offset by mid-single-digit declines in Germany and France and a low-single-digit decline in Turkey.Operating profit increased 30%,primarily reflecting the net revenue growth,productivity savings and a 9-percentage-point favorable impact of lower restructuring charges.These impacts were partially

297、offset by certain operating cost increases,a 6-percentage-point impact of unfavorable foreign exchange and a 6-percentage-point impact of higher commodity costs.24 WeeksNet revenue increased 3%,primarily reflecting effective net pricing and organic volume growth,partially offset by a 5.5-percentage-

298、point impact of unfavorable foreign exchange.Convenient foods unit volume grew 4%,primarily reflecting double-digit growth in Russia and high-single-digit growth in Turkey,partially offset by a high-single-digit decline in France and a low-single-digit decline in the Netherlands.Additionally,the Uni

299、ted Kingdom experienced low-single-digit growth.Beverage unit volume grew 3%,primarily reflecting double-digit growth in Russia and mid-single-digit growth in Turkey and the United Kingdom,partially offset by a double-digit decline in France and a slight decline in Germany.Operating profit increased

300、 50%,primarily reflecting the net revenue growth,a 26-percentage-point favorable impact of lower restructuring charges and productivity savings.These impacts were partially offset by certain operating cost increases,a 9-percentage-point impact of higher commodity costs and an 8-percentage-point impa

301、ct of unfavorable foreign exchange.Table of Contents35AMESA12 WeeksNet revenue increased 2%,primarily reflecting effective net pricing and organic volume growth,partially offset by an 11-percentage-point impact of unfavorable foreign exchange,driven primarily by the weakening of the Egyptian pound.C

302、onvenient foods unit volume grew 1%,primarily reflecting double-digit growth in India and low-single-digit growth in South Africa,partially offset by a double-digit decline in the Middle East and a low-single-digit decline in Pakistan.Beverage unit volume grew 2%,primarily reflecting double-digit gr

303、owth in India,partially offset by a high-single-digit decline in Pakistan,a low-single-digit decline in the Middle East and a mid-single-digit decline in Nigeria.Operating profit decreased 4%,primarily reflecting certain operating cost increases,a 28-percentage-point impact of higher commodity costs

304、,primarily packaging materials,potatoes and sweeteners,largely driven by transaction-related foreign exchange,and a 6-percentage-point impact of unfavorable foreign exchange translation.These impacts were partially offset by the net revenue growth and productivity savings.24 WeeksNet revenue increas

305、ed 2%,primarily reflecting effective net pricing and organic volume growth,partially offset by an 8-percentage-point impact of unfavorable foreign exchange.Convenient foods unit volume grew 2%,primarily reflecting double-digit growth in India and low-single-digit growth in South Africa,partially off

306、set by a double-digit decline in the Middle East.Additionally,Pakistan experienced slight growth.Beverage unit volume grew 2%,primarily reflecting double-digit growth in India,partially offset by a double-digit decline in Pakistan and a low-single-digit decline in Nigeria.Additionally,the Middle Eas

307、t experienced low-single-digit growth.Operating profit decreased 6%,primarily reflecting certain operating cost increases,a 24-percentage-point impact of higher commodity costs,primarily packaging materials,potatoes and sweeteners,largely driven by transaction-related foreign exchange,and a 5-percen

308、tage-point impact of unfavorable foreign exchange translation.These impacts were partially offset by the net revenue growth and productivity savings.APAC12 WeeksNet revenue decreased 2%,primarily reflecting a 3-percentage-point impact of unfavorable foreign exchange,partially offset by effective net

309、 pricing.Convenient foods unit volume declined 1%,primarily reflecting a mid-single-digit decline in China,partially offset by mid-single-digit growth in Australia and Thailand.Beverage unit volume grew 1%,primarily reflecting mid-single-digit growth in Vietnam and the Philippines and high-single-di

310、git growth in Thailand,partially offset by a low-single-digit decline in China.Operating profit decreased slightly,primarily reflecting certain operating cost increases,partially offset by productivity savings.Table of Contents3624 WeeksNet revenue increased 2%,primarily reflecting organic volume gr

311、owth and effective net pricing,partially offset by a 4-percentage-point impact of unfavorable foreign exchange.Convenient foods unit volume grew 6%,primarily reflecting high-single-digit growth in China and mid-single-digit growth in Australia.Additionally,Thailand experienced mid-single-digit growt

312、h.Beverage unit volume grew slightly,primarily reflecting high-single-digit growth in Vietnam,double-digit growth in Thailand and mid-single-digit growth in the Philippines,partially offset by a low-single-digit decline in China.Operating profit increased 1%,primarily reflecting the net revenue grow

313、th,productivity savings and a 3-percentage-point favorable impact of lower commodity costs.These impacts were partially offset by certain operating cost increases,higher advertising and marketing expenses and a 4-percentage-point impact of unfavorable foreign exchange.Non-GAAP MeasuresCertain financ

314、ial measures contained in this Form 10-Q adjust for the impact of specified items and are not in accordance with GAAP.We use non-GAAP financial measures internally to make operating and strategic decisions,including the preparation of our annual operating plan,evaluation of our overall business perf

315、ormance and as a factor in determining compensation for certain employees.We believe presenting non-GAAP financial measures in this Form 10-Q provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results and provides addit

316、ional transparency on how we evaluate our business.We also believe presenting these measures in this Form 10-Q allows investors to view our performance using the same measures that we use in evaluating our financial and business performance and trends.We consider quantitative and qualitative factors

317、 in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends.Examples of items for which we may make adjustments include:amounts related to mark-to-market gains or losses(non-cash);ch

318、arges related to restructuring plans;charges associated with acquisitions and divestitures;gains associated with divestitures;asset impairment charges(non-cash);product recall-related impact;pension and retiree medical-related amounts,including all settlement and curtailment gains and losses;charges

319、 or adjustments related to the enactment of new laws,rules or regulations,such as tax law changes;amounts related to the resolution of tax positions;tax benefits related to reorganizations of our operations;debt redemptions,cash tender or exchange offers;and remeasurements of net monetary assets.See

320、 below and“Items Affecting Comparability”for a description of adjustments to our GAAP financial measures in this Form 10-Q.Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepa

321、red in accordance with GAAP.In addition,our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.The following non-GAAP financial measures contained in this Form 10-Q are discussed below:Cost of sales,gross profit,selling,general

322、and administrative expenses,other pension and retiree medical benefits income,provision for income taxes,net income attributable to noncontrolling interests and net income attributable to PepsiCo,each adjusted for items affecting comparability,operating profit and net income attributable to PepsiCo

323、per common share diluted,each adjusted for items affecting comparability and the corresponding constant currency growth ratesThese measures exclude the net impact of mark-to-market gains and losses on centrally managed Table of Contents37commodity derivatives that do not qualify for hedge accounting

324、,restructuring and impairment charges related to our 2019 Productivity Plan,charges associated with our acquisitions and divestitures,impairment and other charges/credits,product recall-related impact and the impact of settlement losses related to pension and retiree medical plans(see“Items Affectin

325、g Comparability”for a detailed description of each of these items).We also evaluate performance on operating profit and net income attributable to PepsiCo per common share diluted,each adjusted for items affecting comparability on a constant currency basis,which measure our financial results assumin

326、g constant foreign currency exchange rates used for translation based on the rates in effect for the comparable prior-year period.In order to compute our constant currency results,we multiply or divide,as appropriate,our current-year U.S.dollar results by the current-year average foreign exchange ra

327、tes and then multiply or divide,as appropriate,those amounts by the prior-year average foreign exchange rates.We believe these measures provide useful information in evaluating the results of our business because they exclude items that we believe are not indicative of our ongoing performance or tha

328、t we believe impact comparability with the prior year.Organic revenue growthWe define organic revenue growth as a measure that adjusts for the impacts of foreign exchange translation,acquisitions and divestitures and where applicable,the impact of the 53rd reporting week.We believe organic revenue g

329、rowth provides useful information in evaluating the results of our business because it excludes items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior year.See“Net Revenue and Organic Revenue Growth”in“Results of Operations Division Rev

330、iew”for further information.Free cash flowWe define free cash flow as net cash from operating activities less capital spending,plus sales of property,plant and equipment.Since net capital spending is essential to our product innovation initiatives and maintaining our operational capabilities,we beli

331、eve that it is a recurring and necessary use of cash.As such,we believe investors should also consider net capital spending when evaluating our cash from operating activities.Free cash flow is used by us primarily for acquisitions and financing activities,including debt repayments,dividends and shar

332、e repurchases.Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure.See“Free Cash Flow”in“Our Liquidity and Capital Resources”for further information.Items Affec

333、ting ComparabilityOur reported financial results in this Form 10-Q are impacted by the following items in each of the following periods:12 Weeks Ended 6/15/2024Cost of salesGross profitSelling,general and administrative expensesOperating profitOther pension and retiree medical benefits incomeProvision for income taxes(a)Net income attributable to noncontrolling interestsNet income attributable to