Selling, general and administrative expenses

$ 57,838

^[1]

$ 43,232

^[1]

$ 43,251

^[1]

Cost of sales

26,575

20,099

20,351

22,814

15,026

15,877

Amortization of intangible assets

117

Income before income taxes

8,332

^[2]

8,044

^[2]

6,959

^[2]

Bottling equity income

735

365

374

Interest expense

(903)

(397)

(329)

Interest income

8,232

8,079

7,045

Provision for income taxes

1,894

2,100

1,879

Net income

6,338

5,979

5,166

Less: Net income attributable to noncontrolling interests

Net Income Attributable to PepsiCo

$ 6,320

$ 5,946

$ 5,142

Net Income Attributable to PepsiCo per Common Share

Basic

$ 3.97

$ 3.81

$ 3.26

Diluted

$ 3.91

$ 3.77

$ 3.21

Cash dividends declared per common share

$ 1.89

$ 1.775

$ 1.65

[1]	Represents net revenue from businesses operating in these countries.
[2]	For information on the impact of restructuring, impairment and integration charges on our divisions, see Note 3.

Consolidated Statement of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Operating Activities
Net income	$ 6,338	$ 5,979	$ 5,166
Depreciation and amortization	2,327	1,635	1,543
Stock-based compensation expense	299	227	238
Restructuring and impairment charges		36	543
Cash payments for restructuring charges	(31)	(196)	(180)
Merger and integration costs	808	50
Cash payments for merger and integration costs	(385)	(49)
Gain on previously held equity interests in PBG and PAS	(958)
Asset write-off	145
Non-cash foreign exchange loss related to Venezuela devaluation	120
Excess tax benefits from share-based payment arrangements	(107)	(42)	(107)
Pension and retiree medical plan contributions	(1,734)	(1,299)	(219)
Pension and retiree medical plan expenses	453	423	459
Bottling equity income, net of dividends	42	(235)	(202)
Deferred income taxes and other tax charges and credits	500	284	573
Change in accounts and notes receivable	(268)	188	(549)
Change in inventories	276	17	(345)
Change in prepaid expenses and other current assets	144	(127)	(68)
Change in accounts payable and other current liabilities	488	(133)	718
Change in income taxes payable	123	319	(180)
Other, net	(132)	(281)	(391)
Net Cash Provided by Operating Activities	8,448	6,796	6,999
Investing Activities
Capital spending	(3,253)	(2,128)	(2,446)
Sales of property, plant and equipment	81	58	98
Acquisitions of PBG and PAS, net of cash and cash equivalents acquired	(2,833)
Acquisition of manufacturing and distribution rights from DPSG	(900)
Investment in WBD	(463)
Other acquisitions and investments in noncontrolled affiliates	(83)	(500)	(1,925)
Divestitures	12	99	6
Cash restricted for pending acquisitions		15	(40)
Cash proceeds from sale of PBG and PAS stock			358
Short-term investments, by original maturity
More than three months - purchases	(12)	(29)	(156)
More than three months - maturities	29	71	62
Three months or less, net	(229)	13	1,376
Other investing, net	(17)
Net Cash Used for Investing Activities	(7,668)	(2,401)	(2,667)
Financing Activities
Proceeds from issuances of long-term debt	6,451	1,057	3,719
Payments of long-term debt	(59)	(226)	(649)
Debt repurchase	(500)
Short-term borrowings, by original maturity
More than three months - proceeds	227	26	89
More than three months - payments	(96)	(81)	(269)
Three months or less, net	2,351	(963)	625
Cash dividends paid	(2,978)	(2,732)	(2,541)
Share repurchases - common	(4,978)		(4,720)
Share repurchases - preferred	(5)	(7)	(6)
Proceeds from exercises of stock options	1,038	413	620
Excess tax benefits from share-based payment arrangements	107	42	107
Acquisition of non-controlling interest in Lebedyansky from PBG	(159)
Other financing	(13)	(26)
Net Cash Provided by/(Used for) Financing Activities	1,386	(2,497)	(3,025)
Effect of exchange rate changes on cash and cash equivalents	(166)	(19)	(153)
Net Increase in Cash and Cash Equivalents	2,000	1,879	1,154
Cash and Cash Equivalents, Beginning of Year	3,943	2,064	910
Cash and Cash Equivalents, End of Year	5,943	3,943	2,064
Non-cash activity:
Issuance of common stock and equity awards in connection with our acquisitions of PBG and PAS, as reflected in investing and financing activities	$ 4,451

Consolidated Balance Sheet (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

ASSETS

Cash and cash equivalents

$ 5,943

$ 3,943

Short-term investments

426

192

Accounts and notes receivable, net

6,323

4,624

Inventories

3,372

^[1]

2,618

^[1]

Prepaid expenses and other current assets

1,505

1,194

Total Current Assets

17,569

12,571

Property, Plant and Equipment, net

19,058

12,671

Amortizable Intangible Assets, net

2,025

841

Goodwill

14,661

6,534

Other nonamortizable intangible assets

11,783

1,782

Nonamortizable Intangible Assets

26,444

8,316

Investments in Noncontrolled Affiliates

1,368

4,484

Other Assets

1,689

965

Accounts payable and other current liabilities

68,153

39,848

LIABILITIES AND EQUITY

Short-term obligations

4,898

464

10,923

8,127

Income taxes payable

165

Total Current Liabilities

15,892

8,756

Long-term Debt Obligations

19,999

7,400

Other Liabilities

6,729

5,591

Deferred Income Taxes

4,057

659

Commitments and Contingencies

46,677

22,406

Preferred Stock, no par value

Repurchased Preferred Stock

(150)

(145)

PepsiCo Common Shareholders' Equity

Common stock, par value 1 2/3 per share (authorized 3,600 shares, issued 1,865 and 1,782 shares, respectively)

Capital in excess of par value

4,527

250

Retained earnings

37,090

33,805

Accumulated other comprehensive loss

(3,630)

(3,794)

Repurchased common stock, at cost (284 and 217 shares, respectively)

(16,745)

(13,383)

Total PepsiCo Common Shareholders' Equity

21,273

16,908

Noncontrolling interests

312

638

Total Equity

21,476

17,442

Total Liabilities and Equity

$ 68,153

$ 39,848

[1]

Inventories are valued at the lower of cost or market. Cost is determined using the average, first-in, first-out (FIFO) or last-in, first-out (LIFO) methods. Approximately 8% in 2010 and 10% in 2009 of the inventory cost was computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material.

Consolidated Balance Sheet (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Dec. 25, 2010	Dec. 26, 2009
Preferred Stock, par value	$ 0	$ 0
Common stock, par value	$ 1.67	$ 1.67
Common stock, authorized	3,600	3,600
Common stock, issued	1,865	1,782
Repurchased common stock, shares	284	217

Consolidated Statement of Equity (USD $)
In Millions, unless otherwise specified

Total

Preferred Stock [Member]

Repurchased Preferred Stock [Member]

Common Stock [Member]

Repurchased Common Stock [Member]

Capital in Excess of Par Value [Member]

Retained Earnings [Member]

Accumulated Other Comprehensive Loss [Member]

Total Common Shareholders' Equity [Member]

Noncontrolling Interests [Member]

Balance, beginning of year at Dec. 29, 2007

$ 41

$ (132)

$ 30

$ (10,387)

$ 450

$ 28,184

$ (952)

$ 62

Balance, beginning of year (in shares) at Dec. 29, 2007

0.8

(0.5)

1,782.0

(177.0)

Redemptions

(6)

Share repurchases (in shares)

(68.0)

Share repurchases

(4,720)

Equity issued in connection with our acquisitions of PBG and PAS, in shares

Equity issued in connection with our acquisitions of PBG and PAS

Stock-based compensation expense

238

Stock option exercises (in shares)

15.0

Stock option exercises

883

Stock option excercises/RSUs converted

(280)

Withholding tax on RSUs converted

(57)

Other (in shares)

1.0

102

(6)

(12)

Cash dividends declared - common

5,166

5,142

(2,589)

Cash dividends declared - RSUs

(2)

(8)

(Distributions to)/contributions from noncontrolling interests, net

450

Net derivative (losses)/gains

(2,484)

(48)

Cash flow hedges, net of tax:

Pension and retiree medical, net of tax:

Net pension and retiree medical (losses)/gains

(1,358)

(1,376)

Unrealized gains/(losses) on securities, net of tax

(21)

Measurement date change

(89)

Adjusted balance, beginning of year

28,095

(901)

Balance, end of period at Dec. 27, 2008

12,582

(138)

(14,122)

351

30,638

(4,694)

12,203

476

Balance, end of period (in shares) at Dec. 27, 2008

(0.5)

1,782.0

(229.0)

Redemptions (in shares)

(0.1)

Redemptions

(7)

Share repurchases (in shares)

Share repurchases

Equity issued in connection with our acquisitions of PBG and PAS, in shares

Equity issued in connection with our acquisitions of PBG and PAS

Stock-based compensation expense

227

Stock option exercises (in shares)

11.0

Stock option exercises

649

Stock option excercises/RSUs converted

(292)

Withholding tax on RSUs converted

^[1]

(36)

Other (in shares)

1.0

(9)

Cash dividends declared - common

5,979

5,946

(2,768)

Cash dividends declared - RSUs

(1)

(2)

(9)

(Distributions to)/contributions from noncontrolling interests, net

150

Net derivative (losses)/gains

800

(12)

Cash flow hedges, net of tax:

(55)

Pension and retiree medical, net of tax:

Net pension and retiree medical (losses)/gains

110

Unrealized gains/(losses) on securities, net of tax

Adjusted balance, beginning of year

30,638

(4,694)

Balance, end of period at Dec. 26, 2009

17,442

(145)

(13,383)

250

33,805

(3,794)

16,908

638

Balance, end of period (in shares) at Dec. 26, 2009

0.8

(0.6)

1,782.0

(217.0)

Redemptions (in shares)

Redemptions

(5)

Share repurchases (in shares)

(76.0)

Share repurchases

(4,978)

Equity issued in connection with our acquisitions of PBG and PAS, in shares

^[1]

Equity issued in connection with our acquisitions of PBG and PAS

4,451

Stock-based compensation expense

299

Stock option exercises (in shares)

24.0

Stock option exercises

1,487

Stock option excercises/RSUs converted

(500)

Withholding tax on RSUs converted

(68)

Other (in shares)

(15.0)

129

Cash dividends declared - common

6,338

6,320

(3,028)

Cash dividends declared - RSUs

(1)

(12)

(Distributions to)/contributions from noncontrolling interests, net

(332)

Net derivative (losses)/gains

312

(13)

Cash flow hedges, net of tax:

(111)

Pension and retiree medical, net of tax:

Net pension and retiree medical (losses)/gains

(136)

(280)

Unrealized gains/(losses) on securities, net of tax

166

Adjusted balance, beginning of year

33,805

(3,794)

Balance, end of period at Dec. 25, 2010

$ 21,476

$ 41

$ (150)

$ 31

$ (16,745)

$ 4,527

$ 37,090

$ (3,630)

$ 21,273

$ 312

Balance, end of period (in shares) at Dec. 25, 2010

0.8

(0.6)

1,865.0

(284.0)

[1]	Includes total tax benefits of $75 million in 2010, $31 million in 2009 and $95 million in 2008.

Comprehensive Income (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Net income	$ 6,338	$ 5,979	$ 5,166
Other Comprehensive Income/(Loss)
Currency translation adjustment	299	788	(2,532)
Cash flow hedges, net of tax	(58)	(27)	21
Pension and retiree medical, net of tax:
Net prior service credit/(cost)	22	(3)	55
Net (losses)/gains	(136)	110	(1,358)
Unrealized gains/(losses) on securities, net of tax	23	20	(21)
Other	1		(6)
Comprehensive Income Subtotal	151	888	(3,841)
Comprehensive Income	6,489	6,867	1,325
Comprehensive (income)/loss attributable to noncontrolling interests	(5)	(21)	24
Comprehensive Income Attributable to PepsiCo	$ 6,484	$ 6,846	$ 1,349

Basis of Presentation and Our Divisions

12 Months Ended

Dec. 25, 2010

Basis of Presentation and Our Divisions

Note 1 — Basis of Presentation and Our Divisions

Basis of Presentation

Our financial statements include the consolidated accounts of PepsiCo, Inc. and the affiliates that we control. In addition, we include our share of the results of certain other affiliates based on our economic ownership interest. We do not control these other affiliates, as our ownership in these other affiliates is generally less than 50%. Intercompany balances and transactions are eliminated. Our fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six years.

On February 26, 2010, we completed our acquisitions of The Pepsi Bottling Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS). The results of the acquired companies in the U.S. and Canada are reflected in our consolidated results as of the acquisition date, and the international results of the acquired companies have been reported as of the beginning of our second quarter of 2010, consistent with our monthly international reporting calendar. The results of the acquired companies in the U.S., Canada and Mexico are reported within our PAB segment, and the results of the acquired companies in Europe, including Russia, are reported within our Europe segment. Prior to our acquisitions of PBG and PAS, we recorded our share of equity income or loss from the acquired companies in bottling equity income in our income statement. Our share of the net income of PBV is reflected in bottling equity income and our share of income or loss from other noncontrolled affiliates is reflected as a component of selling, general and administrative expenses. Additionally, in the first quarter of 2010, in connection with our acquisitions of PBG and PAS, we recorded a gain on our previously held equity interests of $958 million, comprising $735 million which is non-taxable and recorded in bottling equity income and $223 million related to the reversal of deferred tax liabilities associated with these previously held equity interests. See Notes 8 and 15 and for additional unaudited information on items affecting the comparability of our consolidated results, see "Items Affecting Comparability" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

As of the beginning of our 2010 fiscal year, the results of our Venezuelan businesses are reported under hyperinflationary accounting. See "Our Business Risks" and "Items Affecting Comparability" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw material handling facilities, are included in cost of sales. The costs of moving, storing and delivering finished product are included in selling, general and administrative expenses.

The preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Estimates are used in determining, among other items, sales incentives accruals, tax reserves, stock-based compensation, pension and retiree medical accruals, useful lives for intangible assets, and future cash flows associated with impairment testing for perpetual brands, goodwill and other long-lived assets. We evaluate our estimates on an ongoing basis using our historical experience, as well as other factors we believe appropriate under the circumstances, such as current economic conditions, and adjust or revise our estimates as circumstances change. As future events and their effect cannot be determined with precision, actual results could differ significantly from these estimates.

While the majority of our results are reported on a weekly calendar basis, most of our international operations report on a monthly calendar basis. The following chart details our quarterly reporting schedule:


Quarter	U.S. and Canada	International
First Quarter	12 weeks	January, February
Second Quarter	12 weeks	March, April and May
Third Quarter	12 weeks	June, July and August
Fourth Quarter	16 weeks	September, October, November and December

See "Our Divisions" below and for additional unaudited information on items affecting the comparability of our consolidated results, see "Items Affecting Comparability" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

Tabular dollars are in millions, except per share amounts. All per share amounts reflect common per share amounts, assume dilution unless noted, and are based on unrounded amounts. Certain reclassifications were made to prior years' amounts to conform to the 2010 presentation.

Our Divisions

We manufacture or use contract manufacturers, market and sell a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods in over 200 countries with our largest operations in North America (United States and Canada), Mexico, Russia and the United Kingdom. Division results are based on how our Chief Executive Officer assesses the performance of and allocates resources to our divisions. For additional unaudited information on our divisions, see "Our Operations" in Management's Discussion and Analysis of Financial Condition and Results of Operations. The accounting policies for the divisions are the same as those described in Note 2, except for the following allocation methodologies:

•

stock-based compensation expense,

•

pension and retiree medical expense, and

•

derivatives.

Stock-Based Compensation Expense

Our divisions are held accountable for stock-based compensation expense and, therefore, this expense is allocated to our divisions as an incremental employee compensation cost. The allocation of stock-based compensation expense in 2010 was approximately 17% to FLNA, 2% to QFNA, 5% to LAF, 32% to PAB, 11% to Europe, 8% to AMEA and 25% to corporate unallocated expenses. We had similar allocations of stock-based compensation expense to our divisions in 2009 and 2008. The expense allocated to our divisions excludes any impact of changes in our assumptions during the year which reflect market conditions over which division management has no control. Therefore, any variances between allocated expense and our actual expense are recognized in corporate unallocated expenses.

Pension and Retiree Medical Expense

Pension and retiree medical service costs measured at a fixed discount rate, as well as amortization of costs related to certain pension plan amendments and gains and losses due to demographics, including salary experience, are reflected in division results for North American employees. Division results also include interest costs, measured at a fixed discount rate, for retiree medical plans. Interest costs for the pension plans, pension asset returns and the impact of pension funding, and gains and losses other than those due to demographics, are all reflected in corporate unallocated expenses. In addition, corporate unallocated expenses include the difference between the service costs measured at a fixed discount rate (included in division results as noted above) and the total service costs determined using the plans' discount rates as disclosed in Note 7.

Derivatives

We centrally manage commodity derivatives on behalf of our divisions. These commodity derivatives include energy, fruit and other raw materials. Certain of these commodity derivatives do not qualify for hedge accounting treatment and are marked to market with the resulting gains and losses recognized in corporate unallocated expenses. These gains and losses are subsequently reflected in division results when the divisions take delivery of the underlying commodity. Therefore, the divisions realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in corporate unallocated expenses. These derivatives hedge underlying commodity price risk and were not entered into for speculative purposes.


	2010		2009		2008		2010			2009			2008
	*Net Revenue*						*Operating Profit^(a)*
FLNA	$	13,397	$	13,224	$	12,507	$	3,549		$	3,258		$	2,959
QFNA		1,832		1,884		1,902		568			628			582
LAF		6,315		5,703		5,895		1,004			904			897
PAB^(b)		20,401		10,116		10,937		2,776			2,172			2,026
Europe^(b)		9,254		6,727		6,891		1,020			932			910
AMEA		6,639		5,578		5,119		742			716			592

Total division		57,838		43,232		43,251		9,659			8,610			7,966
Corporate Unallocated
Net impact of mark-to-market on commodity hedges		—		—		—		91			274			(346	)
Merger and integration costs		—		—		—		(191	)		(49	)		—
Restructuring and impairment charges		—		—		—		—			—			(10	)
Venezuela currency devaluation		—		—		—		(129	)		—			—
Asset write-off		—		—		—		(145	)		—			—
Foundation contribution		—		—		—		(100	)		—			—
Other		—		—		—		(853	)		(791	)		(651	)

	$	57,838	$	43,232	$	43,251	$	8,332		$	8,044		$	6,959

(a)	For information on the impact of restructuring, impairment and integration charges on our divisions, see Note 3.

(b)	Changes in 2010 relate primarily to our acquisitions of PBG and PAS.

[CHART]
Net Revenue		Division Operating Profit
FLNA 23%		FLNA 37%
QFNA 3%		QFNA 6%
LAF 11%		LAF 10%
PAB 35%		PAB 29%
Europe 16%		Europe 10%
AMEA 12%		AMEA 8%

Corporate

Corporate includes costs of our corporate headquarters, centrally managed initiatives, such as our ongoing business transformation initiative and research and development projects, unallocated insurance and benefit programs, foreign exchange transaction gains and losses, certain commodity derivative gains and losses and certain other items.

Other Division Information


	2010		2009		2008		2010		2009		2008
	*Total Assets*						*Capital Spending*
FLNA	$	6,284	$	6,337	$	6,284	$	526	$	490	$	553
QFNA		960		997		1,035		37		33		43
LAF		4,053		3,575		3,023		370		310		351
PAB⁽ ^a ⁾		31,622		7,670		7,673		973		182		344
Europe⁽ ^a ⁾		12,853		9,321		8,840		503		357		401
AMEA		5,748		4,937		3,756		624		585		479

Total division		61,520		32,837		30,611		3,033		1,957		2,171
Corporate⁽ ^b ⁾		6,394		3,933		2,729		220		171		275
Investments in bottling affiliates⁽ ^a ⁾		239		3,078		2,654		—		—		—

	$	68,153	$	39,848	$	35,994	$	3,253	$	2,128	$	2,446

(a)	Changes in total assets in 2010 relate primarily to our acquisitions of PBG and PAS.

(b)	Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments and property, plant and equipment.

[CHART]
Total Assets		Capital Spending
FLNA 9%		FLNA 16%
QFNA 1%		QFNA 1%
LAF 6%		LAF 11%
PAB 46%		PAB 30%
Europe 19%		Europe 16%
AMEA 8%		AMEA 19%
Other 11%		Corporate 7%


	2010		2009		2008		2010		2009		2008
	Amortization of Intangible Assets						Depreciation and Other Amortization
FLNA	$	7	$	7	$	9	$	462	$	440	$	441
QFNA		—		—		—		38		36		34
LAF		6		5		6		213		189		194
PAB^(a)		56		18		16		749		345		334
Europe^(a)		35		22		23		343		227		210
AMEA		13		11		10		306		248		213

Total division		117		63		64		2,111		1,485		1,426
Corporate		—		—		—		99		87		53

	$	117	$	63	$	64	$	2,210	$	1,572	$	1,479


	2010		2009		2008		2010		2009		2008
	*Net Revenue^(b ⁾*						*Long-Lived Assets^(c ⁾*
U.S.^(a ⁾	$	30,618	$	22,446	$	22,525	$	28,631	$	12,496	$	12,095
Mexico^(a)		4,531		3,210		3,714		1,671		1,044		904
Canada^(a)		3,081		1,996		2,107		3,133		688		556
Russia^(a)		1,890		1,006		585		2,744		2,094		577
United Kingdom		1,888		1,826		2,099		1,019		1,358		1,509
All other countries		15,830		12,748		12,221		11,697		8,632		6,889

	$	57,838	$	43,232	$	43,251	$	48,895	$	26,312	$	22,530

(a)	Increases in 2010 relate primarily to our acquisitions of PBG and PAS.

(b)	Represents net revenue from businesses operating in these countries.

(c)	Long-lived assets represent property, plant and equipment, nonamortizable intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used.

[CHART]
NET Revenue	Long-Lived Assets
United States 53%	United States 59%
Mexico 8%	Mexico 3%
Canada 5%	Canada 6%
Russia 3%	Russia 6%
United Kingdom 3%	United Kingdom 2%
Other 28%	Other 24%

Our Significant Accounting Policies

Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References+ Details

Our Significant Accounting Policies

12 Months Ended

Dec. 25, 2010

Note 2 — Our Significant Accounting Policies

Revenue Recognition

We recognize revenue upon shipment or delivery to our customers based on written sales terms that do not allow for a right of return. However, our policy for DSD and certain chilled products is to remove and replace damaged and out-of-date products from store shelves to ensure that our consumers receive the product quality and freshness that they expect. Similarly, our policy for certain warehouse-distributed products is to replace damaged and out-of-date products. Based on our experience with this practice, we have reserved for anticipated damaged and out-of-date products. For additional unaudited information on our revenue recognition and related policies, including our policy on bad debts, see "Our Critical Accounting Policies" in Management's Discussion and Analysis of Financial Condition and Results of Operations. We are exposed to concentration of credit risk by our customers, including Wal-Mart. In 2010, Wal-Mart (including Sam's) represented approximately 12% of our total net revenue, including concentrate sales to our bottlers (including concentrate sales to PBG and PAS prior to the February 26, 2010 acquisition date) which are used in finished goods sold by them to Wal-Mart. We have not experienced credit issues with these customers.

Sales Incentives and Other Marketplace Spending

We offer sales incentives and discounts through various programs to our customers and consumers. Sales incentives and discounts are accounted for as a reduction of revenue and totaled $29.1 billion in 2010, $12.9 billion in 2009 and $12.5 billion in 2008. While most of these incentive arrangements have terms of no more than one year, certain arrangements, such as fountain pouring rights, may extend beyond one year. Costs incurred to obtain these arrangements are recognized over the shorter of the economic or contractual life, as a reduction of revenue, and the remaining balances of $296 million, as of both December 25, 2010 and December 26, 2009, are included in current assets and other assets on our balance sheet. For additional unaudited information on our sales incentives, see "Our Critical Accounting Policies" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

Other marketplace spending, which includes the costs of advertising and other marketing activities, totaled $3.4 billion in 2010, $2.8 billion in 2009 and $2.9 billion in 2008 and is reported as selling, general and administrative expenses. Included in these amounts were advertising expenses of $1.9 billion in 2010 and $1.7 billion in both 2009 and 2008. Deferred advertising costs are not expensed until the year first used and consist of:

•

media and personal service prepayments;

•

promotional materials in inventory; and

•

production costs of future media advertising.

Deferred advertising costs of $158 million and $143 million at year-end 2010 and 2009, respectively, are classified as prepaid expenses on our balance sheet.

Distribution Costs

Distribution costs, including the costs of shipping and handling activities, are reported as selling, general and administrative expenses. Shipping and handling expenses were $7.7 billion in 2010 and $5.6 billion in both 2009 and 2008.

Cash Equivalents

Cash equivalents are investments with original maturities of three months or less which we do not intend to rollover beyond three months.

Software Costs

We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project and (iii) interest costs incurred while developing internal-use computer software. Capitalized software costs are included in property, plant and equipment on our balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software, which approximate five to ten years. Software amortization totaled $137 million in 2010, $119 million in 2009 and $58 million in 2008. Net capitalized software and development costs were $1.1 billion as of both December 25, 2010 and December 26, 2009.

Commitments and Contingencies

We are subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as well as commitments under contractual and other commercial obligations. We recognize liabilities for contingencies and commitments when a loss is probable and estimable. For additional information on our commitments, see Note 9.

Research and Development

We engage in a variety of research and development activities. These activities principally involve the development of new products, improvement in the quality of existing products, improvement and modernization of production processes, and the development and implementation of new technologies to enhance the quality and value of both current and proposed product lines. Consumer research is excluded from research and development costs and included in other marketing costs. Research and development costs were $488 million in 2010, $414 million in 2009 and $388 million in 2008 and are reported within selling, general and administrative expenses.

Other Significant Accounting Policies

Our other significant accounting policies are disclosed as follows:

•

Property, Plant and Equipment and Intangible Assets – Note 4, and for additional unaudited information on goodwill and other intangible assets, see "Our Critical Accounting Policies" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

•

Income Taxes – Note 5, and for additional unaudited information, see "Our Critical Accounting Policies" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

•

Stock-Based Compensation – Note 6.

•

Pension, Retiree Medical and Savings Plans – Note 7, and for additional unaudited information, see "Our Critical Accounting Policies" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

•

Financial Instruments – Note 10, and for additional unaudited information, see "Our Business Risks" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

Recent Accounting Pronouncements

In December 2007, the Financial Accounting Standards Board (FASB) amended its guidance on accounting for business combinations to improve, simplify and converge internationally the accounting for business combinations. The new accounting guidance continues the movement toward the greater use of fair value in financial reporting and increased transparency through expanded disclosures. We adopted the provisions of the new guidance as of the beginning of our 2009 fiscal year. The new accounting guidance changes how business acquisitions are accounted for and will impact financial statements both on the acquisition date and in subsequent periods. Additionally, under the new guidance, transaction costs are expensed rather than capitalized. Future adjustments made to valuation allowances on deferred taxes and acquired tax contingencies associated with acquisitions that closed prior to the beginning of our 2009 fiscal year apply the new provisions and will be evaluated based on the outcome of these matters.

In June 2009, the FASB amended its accounting guidance on the consolidation of variable interest entities (VIE). Among other things, the new guidance requires a qualitative rather than a quantitative assessment to determine the primary beneficiary of a VIE based on whether the entity (1) has the power to direct matters that most significantly impact the activities of the VIE and (2) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. In addition, the amended guidance requires an ongoing reconsideration of the primary beneficiary. The provisions of this new guidance were effective as of the beginning of our 2010 fiscal year, and the adoption did not have a material impact on our financial statements.

In the second quarter of 2010, the Patient Protection and Affordable Care Act (PPACA) was signed into law. The PPACA changes the tax treatment related to an existing retiree drug subsidy (RDS) available to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under Medicare Part D. As a result of the PPACA, RDS payments will effectively become taxable in tax years beginning in 2013, by requiring the amount of the subsidy received to be offset against our deduction for health care expenses. The provisions of the PPACA required us to record the effect of this tax law change beginning in our second quarter of 2010, and consequently we recorded a one-time related tax charge of $41 million in the second quarter of 2010. We continue to evaluate the longer-term impacts of this new legislation.

Restructuring, Impairment and Integration Charges

12 Months Ended

Dec. 25, 2010

Restructuring, Impairment and Integration Charges

Note 3 – Restructuring, Impairment and Integration Charges

In 2010, we incurred merger and integration charges of $799 million related to our acquisitions of PBG and PAS, as well as advisory fees in connection with our acquisition of WBD. $467 million of these charges were recorded in the PAB segment, $111 million recorded in the Europe segment, $191 million recorded in corporate unallocated expenses and $30 million recorded in interest expense. All of these charges, other than the interest expense portion, were recorded in selling, general and administrative expenses. The merger and integration charges related to our acquisitions of PBG and PAS are being incurred to help create a more fully integrated supply chain and go-to-market business model, to improve the effectiveness and efficiency of the distribution of our brands and to enhance our revenue growth. These charges also include closing costs, one-time financing costs and advisory fees related to our acquisitions of PBG and PAS. In addition, we recorded $9 million of merger–related charges, representing our share of the respective merger costs of PBG and PAS, in bottling equity income. Substantially all cash payments related to the above charges are expected to be paid by the end of 2011. In total, these charges had an after-tax impact of $648 million or $0.40 per share.

In 2009, we incurred $50 million of charges related to the merger of PBG and PAS, of which substantially all was paid in 2009. In 2009, we also incurred charges of $36 million ($29 million after-tax or $0.02 per share) in conjunction with our Productivity for Growth program that began in 2008. The program includes actions in all divisions of the business, including the closure of six plants that we believe will increase cost competitiveness across the supply chain, upgrade and streamline our product portfolio, and simplify the organization for more effective and timely decision-making. These charges were recorded in selling, general and administrative expenses. These initiatives were completed in the second quarter of 2009 and substantially all cash payments related to these charges were paid by the end of 2010.

In 2008, we incurred charges of $543 million ($408 million after-tax or $0.25 per share) in conjunction with our Productivity for Growth program. Approximately $455 million of the charge was recorded in selling, general and administrative expenses, with the remainder recorded in cost of sales.

A summary of our merger and integration activity in 2010 is as follows:


	Severance and Other Employee Costs^(a)			Asset Impairment			Other Costs			Total
2010 merger and integration charges	$	396		$	132		$	280		$	808
Cash payments		(114	)		—			(271	)		(385	)
Non-cash charges		(103	)		(132	)		16			(219	)

Liability as of December 25, 2010	$	179		$	—		$	25		$	204

(a)	Primarily reflects termination costs for approximately 2,370 employees.

A summary of our restructuring and impairment charges in 2009 is as follows:


	Severance and Other Employee Costs^(a)		Other Costs		Total
FLNA	$	—	$	2	$	2
QFNA		—		1		1
LAF		3		—		3
PAB		6		10		16
Europe		1		—		1
AMEA		7		6		13

	$	17	$	19	$	36

(a)	Primarily reflects termination costs for approximately 410 employees.

A summary of our restructuring and impairment charges in 2008 is as follows:


	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	48	$	38	$	22	$	108
QFNA		14		3		14		31
LAF		30		8		2		40
PAB		68		92		129		289
Europe		39		6		5		50
AMEA		11		2		2		15
Corporate		2		—		8		10

	$	212	$	149	$	182	$	543

Severance and other employee costs primarily reflect termination costs for approximately 3,500 employees. Asset impairments relate to the closure of six plants and changes to our beverage product portfolio. Other costs include contract exit costs and third-party incremental costs associated with upgrading our product portfolio and our supply chain.

A summary of our Productivity for Growth program activity is as follows:


	Severance and Other Employee Costs			Asset Impairments			Other Costs			Total
2008 restructuring and impairment charges	$	212		$	149		$	182		$	543
Cash payments		(50	)		—			(109	)		(159	)
Non-cash charge		(27	)		(149	)		(9	)		(185	)
Currency translation		(1	)		—			—			(1	)

Liability as of December 27, 2008		134			—			64			198
2009 restructuring and impairment charges		17			12			7			36
Cash payments		(128	)		—			(68	)		(196	)
Currency translation		(14	)		(12	)		25			(1	)

Liability as of December 26, 2009		9			—			28			37
Cash payments		(6	)		—			(25	)		(31	)
Non-cash charge		(2	)		—			(1	)		(3	)
Currency translation		—			—			(1	)		(1	)

Liability as of December 25, 2010	$	1		$	—		$	1		$	2

Property, Plant and Equipment and Intangible Assets

12 Months Ended

Dec. 25, 2010

Property, Plant and Equipment and Intangible Assets

Note 4 — Property, Plant and Equipment and Intangible Assets


	Average Useful Life		2010			2009			2008
*Property, plant and equipment, net*
Land and improvements		10 – 34yrs.	$	1,976		$	1,208
Buildings and improvements		15 – 44		7,054			5,080
Machinery and equipment, including fleet and software		5 – 15		22,091			17,183
Construction in progress				1,920			1,441

				33,041			24,912
Accumulated depreciation				(13,983	)		(12,241	)

			$	19,058		$	12,671

Depreciation expense			$	2,124		$	1,500		$	1,422

*Amortizable intangible assets, net*
Acquired franchise rights		56 – 60	$	949		$	—
Reacquired franchise rights		1 – 14		110			—
Brands		5 – 40		1,463			1,465
Other identifiable intangibles		10 – 24		747			505

				3,269			1,970
Accumulated amortization				(1,244	)		(1,129	)

			$	2,025		$	841

Amortization expense			$	117		$	63		$	64

Property, plant and equipment is recorded at historical cost. Depreciation and amortization are recognized on a straight-line basis over an asset's estimated useful life. Land is not depreciated and construction in progress is not depreciated until ready for service. Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 25, 2010 and using average 2010 foreign exchange rates, is expected to be $121 million in 2011, $114 million in 2012, $106 million in 2013, $89 million in 2014 and $81 million in 2015.

Depreciable and amortizable assets are only evaluated for impairment upon a significant change in the operating or macroeconomic environment. In these circumstances, if an evaluation of the undiscounted cash flows indicates impairment, the asset is written down to its estimated fair value, which is based on discounted future cash flows. Useful lives are periodically evaluated to determine whether events or circumstances have occurred which indicate the need for revision. For additional unaudited information on our policies for amortizable brands, see "Our Critical Accounting Policies" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

Nonamortizable Intangible Assets

Perpetual brands and goodwill are assessed for impairment at least annually. If the carrying amount of a perpetual brand exceeds its fair value, as determined by its discounted cash flows, an impairment loss is recognized in an amount equal to that excess. No impairment charges resulted from these impairment evaluations. The change in the book value of nonamortizable intangible assets is as follows:


	Balance, Beginning 2009		Acquisitions		Translation and Other			Balance, End of 2009		Acquisitions		Translation and Other			Balance, End of 2010
*FLNA*
Goodwill	$	277	$	6	$	23		$	306	$	—	$	7		$	313
Brands		—		26		4			30		—		1			31

		277		32		27			336		—		8			344

*QFNA*
Goodwill		175		—		—			175		—		—			175

*LAF*
Goodwill		424		17		38			479		—		18			497
Brands		127		1		8			136		—		7			143

		551		18		46			615		—		25			640

*PAB*^(a)
Goodwill		2,355		62		14			2,431		7,476		39			9,946
Reacquired franchise rights		—		—		—			—		7,229		54			7,283
Acquired franchise rights		—		—		—			—		660		905	^(b)		1,565
Brands		59		48		5			112		66		4			182
Other		—		—		—			—		10		—			10

		2,414		110		19			2,543		15,441		1,002			18,986

*Europe*^(a)
Goodwill		1,469		1,291		(136	)		2,624		583		(168	)		3,039
Reacquired franchise rights		—		—		—			—		810		(17	)		793
Acquired franchise rights		—		—		—			—		232		(5	)		227
Brands		844		572		(38	)		1,378		88		(86	)		1,380

		2,313		1,863		(174	)		4,002		1,713		(276	)		5,439

*AMEA*
Goodwill		424		4		91			519		116		56			691
Brands		98		—		28			126		26		17			169

		522		4		119			645		142		73			860

Total goodwill		5,124		1,380		30			6,534		8,175		(48	)		14,661
Total reacquired franchise rights		—		—		—			—		8,039		37			8,076
Total acquired franchise rights		—		—		—			—		892		900			1,792
Total brands		1,128		647		7			1,782		180		(57	)		1,905
Total other		—		—		—			—		10		—			10

	$	6,252	$	2,027	$	37		$	8,316	$	17,296	$	832		$	26,444

(a)	Net increases in 2010 relate primarily to our acquisitions of PBG and PAS.

(b)	Includes $900 million related to our upfront payment to DPSG to manufacture and distribute Dr Pepper and certain other DPSG products.

Income Taxes

12 Months Ended

Dec. 25, 2010

Income Taxes

Note 5 — Income Taxes


		2010			2009			2008
*Income before income taxes*
U.S.		$	4,008		$	4,209		$	3,274
Foreign			4,224			3,870			3,771

		$	8,232		$	8,079		$	7,045

*Provision for income taxes*
Current:	U.S. Federal	$	932		$	1,238		$	815
	Foreign		728			473			732
	State		137			124			87

			1,797			1,835			1,634

Deferred:	U.S. Federal		78			223			313
	Foreign		18			21			(69	)
	State		1			21			1

			97			265			245

		$	1,894		$	2,100		$	1,879

*Tax rate reconciliation*
U.S. Federal statutory tax rate			35.0	%		35.0	%		35.0	%
State income tax, net of U.S. Federal tax benefit			1.1			1.2			0.8
Lower taxes on foreign results			(9.4	)		(7.9	)		(8.0	)
Acquisitions of PBG and PAS			(3.1	)		—			—
Other, net			(0.6	)		(2.3	)		(1.1	)

Annual tax rate			23.0	%		26.0	%		26.7	%

*Deferred tax liabilities*
Investments in noncontrolled affiliates		$	74		$	1,120
Debt guarantee of wholly owned subsidiary			828			—
Property, plant and equipment			1,984			1,056
Intangible assets other than nondeductible goodwill			3,726			417
Other			647			68

Gross deferred tax liabilities			7,259			2,661

*Deferred tax assets*
Net carryforwards			1,264			624
Stock-based compensation			455			410
Retiree medical benefits			579			508
Other employee-related benefits			527			442
Pension benefits			291			179
Deductible state tax and interest benefits			320			256
Long-term debt obligations acquired			291			—
Other			904			560

Gross deferred tax assets			4,631			2,979
Valuation allowances			(875	)		(586	)

Deferred tax assets, net			3,756			2,393

Net deferred tax liabilities		$	3,503		$	268


	2010		2009			2008
Deferred taxes included within:
Assets:
Prepaid expenses and other current assets	$	554	$	391
Other assets		—		—
Liabilities:
Deferred income taxes	$	4,057	$	659
*Analysis of valuation allowances*
Balance, beginning of year	$	586	$	657		$	695
Provision/(Benefit)		75		(78	)		(5	)
Other additions/(deductions)		214		7			(33	)

Balance, end of year	$	875	$	586		$	657

For additional unaudited information on our income tax policies, including our reserves for income taxes, see "Our Critical Accounting Policies" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

Reserves

A number of years may elapse before a particular matter, for which we have established a reserve, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. Our major taxing jurisdictions and the related open tax audits are as follows:

•

U.S. – continue to dispute one matter related to tax years 1998 through 2002. During 2010, all but three issues were resolved for tax years 2003 through 2005. These three issues are currently under review by the IRS Appeals Division. Our U.S. tax returns for the years 2006 through 2007 are currently under audit;

•

Mexico – audits have been substantially completed for all taxable years through 2005;

•

United Kingdom – audits have been completed for all taxable years prior to 2008; and

•

Canada – domestic audits have been substantially completed for all taxable years through 2007. International audits have been completed for all taxable years through 2003.

While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe that our reserves reflect the probable outcome of known tax contingencies. We adjust these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular issue would usually require the use of cash. Favorable resolution would be recognized as a reduction to our annual tax rate in the year of resolution. For further unaudited information on the impact of the resolution of open tax issues, see "Other Consolidated Results."

As of December 25, 2010, the total gross amount of reserves for income taxes, reported in other liabilities, was $2,023 million. Any prospective adjustments to these reserves will be recorded as an increase or decrease to our provision for income taxes and would impact our effective tax rate. In addition, we accrue interest related to reserves for income taxes in our provision for income taxes and any associated penalties are recorded in selling, general and administrative expenses. The gross amount of interest accrued, reported in other liabilities, was $570 million as of December 25, 2010, of which $135 million was recognized in 2010. The gross amount of interest accrued was $461 million as of December 26, 2009, of which $30 million was recognized in 2009.

A rollforward of our reserves for all federal, state and foreign tax jurisdictions, is as follows:


	2010			2009
Balance, beginning of year	$	1,731		$	1,711
Additions for tax positions related to the current year		204			238
Additions for tax positions from prior years		517			79
Reductions for tax positions from prior years		(391	)		(236	)
Settlement payments		(30	)		(64	)
Statute of limitations expiration		(7	)		(4	)
Translation and other		(2	)		7

Balance, end of year	$	2,022	^(a)	$	1,731

(a)	Includes amounts related to our acquisitions of PBG and PAS.

Carryforwards and Allowances

Operating loss carryforwards totaling $9.1 billion at year-end 2010 are being carried forward in a number of foreign and state jurisdictions where we are permitted to use tax operating losses from prior periods to reduce future taxable income. These operating losses will expire as follows: $0.4 billion in 2011, $6.5 billion between 2012 and 2030 and $2.2 billion may be carried forward indefinitely. We establish valuation allowances for our deferred tax assets if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Undistributed International Earnings

As of December 25, 2010, we had approximately $26.6 billion of undistributed international earnings. We intend to continue to reinvest earnings outside the U.S. for the foreseeable future and, therefore, have not recognized any U.S. tax expense on these earnings.

Stock-Based Compensation

12 Months Ended

Dec. 25, 2010

Stock-Based Compensation

Note 6 — Stock-Based Compensation

Our stock-based compensation program is designed to attract and retain employees while also aligning employees' interests with the interests of our shareholders. Stock options and restricted stock units (RSU) are granted to employees under the shareholder-approved 2007 Long-Term Incentive Plan (LTIP), the only stock-based plan under which we currently grant stock options and RSUs. Stock-based compensation expense was $352 million in 2010, $227 million in 2009 and $238 million in 2008. In 2010, $299 million was recorded as stock-based compensation expense and $53 million was included in merger and integration charges. $86 million of the $352 million recorded in 2010 was related to the unvested acquisition-related grants described below. Income tax benefits related to stock-based compensation expense and recognized in earnings were $89 million in 2010, $67 million in 2009 and $71 million in 2008. At year-end 2010, 154 million shares were available for future stock-based compensation grants.

In connection with our acquisition of PBG, we issued 13.4 million stock options and 2.7 million RSUs at weighted-average grant prices of $42.89 and $62.30, respectively, to replace previously held PBG equity awards. In connection with our acquisition of PAS, we issued 0.4 million stock options at a weighted-average grant price of $31.72 to replace previously held PAS equity awards. Our equity issuances included 8.3 million stock options and 0.6 million RSUs which were vested at the acquisition date and were included in the purchase price. The remaining 5.5 million stock options and 2.1 million RSUs issued are unvested and are being amortized over their remaining vesting period, up to 3 years.

As a result of our annual benefits review in 2010, the Company approved certain changes to our benefits programs to remain market competitive relative to other leading global companies. These changes included ending the Company's broad-based SharePower stock option program. Consequently, beginning in 2011, no new awards will be granted under the SharePower program. Outstanding SharePower awards from 2010 and earlier will continue to vest and be exercisable according to the terms and conditions of the program. See Note 7 for additional information regarding other related changes.

Method of Accounting and Our Assumptions

We account for our employee stock options under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. All stock option grants have an exercise price equal to the fair market value of our common stock on the date of grant and generally have a 10-year term. We do not backdate, reprice or grant stock-based compensation awards retroactively. Repricing of awards would require shareholder approval under the LTIP.

The fair value of stock option grants is amortized to expense over the vesting period, generally three years. Executives who are awarded long-term incentives based on their performance are generally offered the choice of stock options or RSUs. Executives who elect RSUs receive one RSU for every four stock options that would have otherwise been granted. Senior officers do not have a choice and are granted 50% stock options and 50% performance-based RSUs. Vesting of RSU awards for senior officers is contingent upon the achievement of pre-established performance targets approved by the Compensation Committee of the Board of Directors. RSU expense is based on the fair value of PepsiCo stock on the date of grant and is amortized over the vesting period, generally three years. Each RSU is settled in a share of our stock after the vesting period.

Our weighted-average Black-Scholes fair value assumptions are as follows:


	2010			2009			2008
Expected life		5 yrs.			6 yrs.			6 yrs.
Risk free interest rate		2.3	%		2.8	%		3.0	%
Expected volatility		17	%		17	%		16	%
Expected dividend yield		2.8	%		3.0	%		1.9	%

The expected life is the period over which our employee groups are expected to hold their options. It is based on our historical experience with similar grants. The risk free interest rate is based on the expected U.S. Treasury rate over the expected life. Volatility reflects movements in our stock price over the most recent historical period equivalent to the expected life. Dividend yield is estimated over the expected life based on our stated dividend policy and forecasts of net income, share repurchases and stock price.

A summary of our stock-based compensation activity for the year ended December 25, 2010 is presented below:

Our Stock Option Activity


	Options^(a)			Average Price^(b)		Average Life (years)^(c)		Aggregate Intrinsic Value^(d)
Outstanding at December 26, 2009		106,011		$	51.68
Granted		26,858			54.09
Exercised		(23,940	)		43.47
Forfeited/expired		(2,726	)		55.85

Outstanding at December 25, 2010		106,203		$	54.03		5.19	$	1,281,596


Exercisable at December 25, 2010		67,304		$	50.26		3.44	$	1,040,510

(a)	Options are in thousands and include options previously granted under PBG, PAS and Quaker plans. No additional options or shares may be granted under the PBG, PAS and Quaker plans.

(b)	Weighted-average exercise price.

(c)	Weighted-average contractual life remaining.

(d)	In thousands.

Our RSU Activity


	RSUs^(a)			Average Intrinsic Value^(b)		Average Life (years)^(c)		Aggregate Intrinsic Value^(d)
Outstanding at December 26, 2009		6,092		$	60.98
Granted		8,326			65.01
Converted		(3,183	)		63.58
Forfeited/expired		(573	)		62.50

Outstanding at December 25, 2010		10,662		$	63.27		1.69	$	700,397

(a)	RSUs are in thousands and include RSUs previously granted under a PBG plan. No additional RSUs or shares may be granted under the PBG plan.

(b)	Weighted-average intrinsic value at grant date.

(c)	Weighted-average contractual life remaining.

(d)	In thousands.

Other Stock-Based Compensation Data


	2010		2009		2008
*Stock Options*
Weighted-average fair value of options granted	$	13.93	$	7.02	$	11.24
Total intrinsic value of options exercised^(a)	$	502,354	$	194,545	$	410,152

*RSUs*
Total number of RSUs granted^(a)		8,326		2,653		2,135
Weighted-average intrinsic value of RSUs granted	$	65.01	$	53.22	$	68.73
Total intrinsic value of RSUs converted^(a)	$	202,717	$	124,193	$	180,563

(a)	In thousands.

As of December 25, 2010, there was $423 million of total unrecognized compensation cost related to nonvested share-based compensation grants. This unrecognized compensation is expected to be recognized over a weighted-average period of 2 years.

Pension, Retiree Medical and Savings Plans

12 Months Ended

Dec. 25, 2010

Pension, Retiree Medical and Savings Plans

Note 7 — Pension, Retiree Medical and Savings Plans

Our pension plans cover full-time employees in the U.S. and certain international employees. Benefits are determined based on either years of service or a combination of years of service and earnings. U.S. and Canada retirees are also eligible for medical and life insurance benefits (retiree medical) if they meet age and service requirements. Generally, our share of retiree medical costs is capped at specified dollar amounts, which vary based upon years of service, with retirees contributing the remainder of the costs.

Gains and losses resulting from actual experience differing from our assumptions, including the difference between the actual return on plan assets and the expected return on plan assets, and from changes in our assumptions are also determined at each measurement date. If this net accumulated gain or loss exceeds 10% of the greater of the market-related value of plan assets or plan liabilities, a portion of the net gain or loss is included in expense for the following year based upon the average remaining service period of active plan participants, which is approximately 11 years for pension expense and approximately 8 years for retiree medical expense. The cost or benefit of plan changes that increase or decrease benefits for prior employee service (prior service cost/(credit)) is included in earnings on a straight-line basis over the average remaining service period of active plan participants.

In connection with our acquisitions of PBG and PAS, we assumed sponsorship of pension and retiree medical plans that provide benefits to U.S. and certain international employees. Subsequently, during the third quarter of 2010, we merged the pension plan assets of the legacy PBG and PAS U.S. pension plans with those of PepsiCo into one master trust.

During 2010, the Compensation Committee of PepsiCo's Board of Directors approved certain changes to the U.S. pension and retiree medical plans, effective January 1, 2011. Pension plan design changes include implementing a new employer contribution to the 401(k) savings plan for all future salaried new hires of the Company, as salaried new hires are no longer eligible to participate in the defined benefit pension plan, as well as implementing a new defined benefit pension formula for certain hourly new hires of the Company. Pension plan design changes also include implementing a new employer contribution to the 401(k) savings plan for certain legacy PBG and PAS salaried employees (as such employees are also not eligible to participate in the defined benefit pension plan), as well as implementing a new defined benefit pension formula for certain legacy PBG and PAS hourly employees. The retiree medical plan design change includes phasing out Company subsidies of retiree medical benefits.

As a result of these changes, we remeasured our pension and retiree medical expenses and liabilities in the third quarter of 2010, which resulted in a one-time pre-tax curtailment gain of $62 million included in retiree medical expense.

The provisions of both the PPACA and the Health Care and Education Reconciliation Act are reflected in our retiree medical expenses and liabilities and were not material to our financial statements.

Selected financial information for our pension and retiree medical plans is as follows:


	Pension												Retiree Medical
	2010			2009			2010			2009			2010			2009
	U.S.						International
*Change in projected benefit liability*
Liability at beginning of year	$	6,606		$	6,217		$	1,709		$	1,270		$	1,359		$	1,370
Acquisitions		2,161			—			90			—			396			—
Service cost		299			238			81			54			54			44
Interest cost		506			373			106			82			93			82
Plan amendments		28			—			—			—			(132	)		—
Participant contributions		—			—			3			10			—			—
Experience loss/(gain)		583			70			213			221			95			(63	)
Benefit payments		(375	)		(296	)		(69	)		(50	)		(100	)		(80	)
Settlement/curtailment gain		(2	)		—			(3	)		(8	)		—			—
Special termination benefits		45			—			3			—			3			—
Foreign currency adjustment		—			—			(18	)		130			2			6
Other		—			4			27			—			—			—

Liability at end of year	$	9,851		$	6,606		$	2,142		$	1,709		$	1,770		$	1,359

*Change in fair value of plan assets*
Fair value at beginning of year	$	5,420		$	3,974		$	1,561		$	1,165		$	13		$	—
Acquisitions		1,633			—			52			—			—			—
Actual return on plan assets		943			697			164			159			7			2
Employer contributions/funding		1,249			1,041			215			167			270			91
Participant contributions		—			—			3			10			—			—
Benefit payments		(375	)		(296	)		(69	)		(50	)		(100	)		(80	)
Settlement		—			—			(2	)		(8	)		—			—
Foreign currency adjustment		—			—			(28	)		118			—			—
Other		—			4			—			—			—			—

Fair value at end of year	$	8,870		$	5,420		$	1,896		$	1,561		$	190		$	13

Funded status	$	(981	)	$	(1,186	)	$	(246	)	$	(148	)	$	(1,580	)	$	(1,346	)

	Pension												Retiree Medical
	2010			2009			2010			2009			2010			2009
	U.S.						International
*Amounts recognized*
Other assets	$	47		$	—		$	66		$	50		$	—		$	—
Other current liabilities		(54	)		(36	)		(10	)		(1	)		(145	)		(105	)
Other liabilities		(974	)		(1,150	)		(302	)		(197	)		(1,435	)		(1,241	)

Net amount recognized	$	(981	)	$	(1,186	)	$	(246	)	$	(148	)	$	(1,580	)	$	(1,346	)

*Amounts included in accumulated other comprehensive loss (pre-tax)*
Net loss	$	2,726		$	2,563		$	767		$	625		$	270		$	190
Prior service cost/(credit)		117			101			17			20			(150	)		(102	)

Total	$	2,843		$	2,664		$	784		$	645		$	120		$	88

*Components of the increase/(decrease) in net loss*
Change in discount rate	$	556		$	47		$	213		$	97		$	101		$	11
Employee-related assumption changes		4			—			(4	)		70			8			(38	)
Liability-related experience different from assumptions		43			23			5			51			(22	)		(36	)
Actual asset return different from expected return		(300	)		(235	)		(41	)		(54	)		(6	)		(2	)
Amortization of losses		(119	)		(111	)		(24	)		(9	)		(9	)		(11	)
Other, including foreign currency adjustments		(21	)		13			(7	)		49			8			—

Total	$	163		$	(263	)	$	142		$	204		$	80		$	(76	)

Liability at end of year for service to date	$	9,163		$	5,784		$	1,743		$	1,414

The components of benefit expense are as follows:


	Pension																		Retiree Medical
	2010			2009			2008			2010			2009			2008			2010			2009			2008
	U.S.									International
*Components of benefit expense*
Service cost	$	299		$	238		$	244		$	81		$	54		$	61		$	54		$	44		$	45
Interest cost		506			373			371			106			82			88			93			82			82
Expected return on plan assets		(643	)		(462	)		(416	)		(123	)		(105	)		(112	)		(1	)		—			—
Amortization of prior service cost/(credit)		12			12			19			2			2			3			(22	)		(17	)		(13	)
Amortization of net loss		119			110			55			24			9			19			9			11			7

		293			271			273			90			42			59			133			120			121
Settlement/curtailment (gain)/loss		(2	)		(13	)		3			1			3			3			(62	)		—			—
Special termination benefits		45			—			31			3			—			2			3			—			3

Total	$	336		$	258		$	307		$	94		$	45		$	64		$	74		$	120		$	124

The estimated amounts to be amortized from accumulated other comprehensive loss into benefit expense in 2011 for our pension and retiree medical plans are as follows:


	Pension				Retiree Medical
	U.S.		International
Net loss	$	144	$	39	$	12
Prior service cost/(credit)		15		2		(28	)

Total	$	159	$	41	$	(16	)

The following table provides the weighted-average assumptions used to determine projected benefit liability and benefit expense for our pension and retiree medical plans:


	Pension																		Retiree Medical
	2010			2009			2008			2010			2009			2008			2010			2009			2008
	U.S.									International
*Weighted-average assumptions*
Liability discount rate		5.7	%		6.1	%		6.2	%		5.5	%		5.9	%		6.3	%		5.2	%		6.1	%		6.2	%
Expense discount rate		6.0	%		6.2	%		6.5	%		6.0	%		6.3	%		5.6	%		5.8	%		6.2	%		6.5	%
Expected return on plan assets		7.8	%		7.8	%		7.8	%		7.1	%		7.1	%		7.2	%		7.8	%
Liability rate of salary increases		4.1	%		4.4	%		4.4	%		4.1	%		4.1	%		4.1	%
Expense rate of salary increases		4.4	%		4.4	%		4.6	%		4.1	%		4.2	%		3.9	%

The following table provides selected information about plans with liability for service to date and total benefit liability in excess of plan assets:


	Pension												Retiree Medical
	2010			2009			2010			2009			2010			2009
	U.S.						International
*Selected information for plans with liability for service to date in excess of plan assets*
Liability for service to date	$	(525	)	$	(2,695	)	$	(610	)	$	(342	)
Fair value of plan assets	$	—		$	2,220		$	474		$	309
*Selected information for plans with projected benefit liability in excess of plan assets*
Benefit liability	$	(5,806	)	$	(6,603	)	$	(1,949	)	$	(1,566	)	$	(1,770	)	$	(1,359	)
Fair value of plan assets	$	4,778		$	5,417		$	1,638		$	1,368		$	190		$	13

Of the total projected pension benefit liability at year-end 2010, $747 million relates to plans that we do not fund because the funding of such plans does not receive favorable tax treatment.

Future Benefit Payments and Funding

Our estimated future benefit payments are as follows:


	2011		2012		2013		2014		2015		2016-20
Pension	$	480	$	500	$	520	$	560	$	595	$	3,770
Retiree medical^(a)	$	155	$	155	$	160	$	165	$	170	$	875

(a)

Expected future benefit payments for our retiree medical plans do not reflect any estimated subsidies expected to be received under the 2003 Medicare Act. Subsidies are expected to be approximately $11 million for each of the years from 2011 through 2015 and approximately $90 million in total for 2016 through 2020.

These future benefits to beneficiaries include payments from both funded and unfunded pension plans.

In 2011, we expect to make pension contributions of approximately $160 million, with up to approximately $15 million expected to be discretionary. Our net cash payments for retiree medical are estimated to be approximately $145 million in 2011.

Plan Assets

Pension

Our pension plan investment strategy includes the use of actively-managed securities and is reviewed annually based upon plan liabilities, an evaluation of market conditions, tolerance for risk and cash requirements for benefit payments. Our investment objective is to ensure that funds are available to meet the plans' benefit obligations when they become due. Our overall investment strategy is to prudently invest plan assets in a well-diversified portfolio of equity and high-quality debt securities to achieve our long-term return expectations. Our investment policy also permits the use of derivative instruments which are primarily used to reduce risk. Our expected long-term rate of return on U.S. plan assets is 7.8%. Our target investment allocation is 40% for U.S. equity allocations, 20% for international equity allocations and 40% for fixed income allocations. Actual investment allocations may vary from our target investment allocations due to prevailing market conditions. We regularly review our actual investment allocations and periodically rebalance our investments to our target allocations. In an effort to enhance diversification, the pension plan divested its holdings of PepsiCo stock in the fourth quarter of 2010.

The expected return on pension plan assets is based on our pension plan investment strategy, our expectations for long-term rates of return by asset class, taking into account volatilities and correlation among asset classes, and our historical experience. We also review current levels of interest rates and inflation to assess the reasonableness of the long-term rates. We evaluate our expected return assumptions annually to ensure that they are reasonable. To calculate the expected return on pension plan assets, we use a market-related valuation method that recognizes investment gains or losses (the difference between the expected and actual return based on the market-related value of assets) for securities included in our equity strategies over a five-year period. This has the effect of reducing year-to-year volatility. For all other asset categories, the actual fair value is used for the market-related value of assets.

Retiree Medical

In 2010, we made nondiscretionary contributions of $100 million to fund the payment of U.S. retiree medical claims. During the fourth quarter of 2010, we made a discretionary contribution of $170 million to fund future U.S. retiree medical plan benefits. This contribution was invested consistent with the allocation of existing assets in the U.S. pension plan.

Fair Value

The guidance on fair value measurements defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.

Plan assets measured at fair value as of fiscal year-end 2010 and 2009 are categorized consistently by level in both years, and are as follows:


	2010*								2009
	Total		Level 1		Level 2		Level 3		Total
*U.S. plan assets*
Equity securities:
PepsiCo common stock^(a)	$	—	$	—	$	—	$	—	$	332
U.S. common stock^(a)		304		304		—		—		229
U.S. commingled funds^(b)		3,426		—		3,426		—		1,387
International common stock^(a)		834		834		—		—		700
International commingled fund^(c)		992		—		992		—		114
Preferred stock^(d)		4		—		4		—		4
Fixed income securities:
Government securities^(d)		950		—		950		—		741
Corporate bonds^(d)		2,374		—		2,374		—		1,214
Mortgage-backed securities^(d)		20		—		20		—		201
Other:
Contracts with insurance companies^(f)		28		—		—		28		9
Cash and cash equivalents		81		81		—		—		457

Sub-total U.S. plan assets		9,013	$	1,219	$	7,766	$	28		5,388

Dividends and interest receivable		47								32

Total U.S. plan assets	$	9,060							$	5,420


*International plan assets*
Equity securities:
U.S. commingled funds^(b)	$	193	$	—	$	193	$	—	$	180
International commingled funds^(c)		779		—		779		—		661
Fixed income securities:
Government securities^(d)		184		—		184		—		139
Corporate bonds^(d)		152		—		152		—		128
Fixed income commingled funds^(e)		393		—		393		—		363
Other:
Contracts with insurance companies^(f)		28		—		—		28		29
Currency commingled funds^(g)		42		—		42		—		44
Cash and cash equivalents		120		120		—		—		17

Sub-total international plan assets		1,891	$	120	$	1,743	$	28		1,561

Dividends and interest receivable		5								—

Total international plan assets	$	1,896							$	1,561

(a)	Based on quoted market prices in active markets.

(b)	Based on the fair value of the investments owned by these funds that track various U.S. large, mid-cap and small company indices. Includes one large-cap fund that represents 32% and 25%, respectively, of total U.S. plan assets for 2010 and 2009.

(c)	Based on the fair value of the investments owned by these funds that track various non-U.S. equity indices.

(d)	Based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes that are not observable. Corporate bonds of U.S.-based companies represent 22% and 18%, respectively, of total U.S. plan assets for 2010 and 2009.

(e)	Based on the fair value of the investments owned by these funds that track various government and corporate bond indices.

(f)	Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable.

(g)	Based on the fair value of the investments owned by these funds. Includes managed hedge funds that invest primarily in derivatives to reduce currency exposure.

*	2010 amounts include $190 million of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.

Retiree Medical Cost Trend Rates

An average increase of 7% in the cost of covered retiree medical benefits is assumed for 2011. This average increase is then projected to decline gradually to 5% in 2020 and thereafter. These assumed health care cost trend rates have an impact on the retiree medical plan expense and liability. However, the cap on our share of retiree medical costs limits the impact. In addition, beginning January 1, 2011, the Company will start phasing out company subsidies of retiree medical benefits. A 1-percentage-point change in the assumed health care trend rate would have the following effects:


	1% Increase		1% Decrease
2010 service and interest cost components	$	5	$	(4	)
2010 benefit liability	$	42	$	(50	)

Savings Plan

Our U.S. employees are eligible to participate in 401(k) savings plans, which are voluntary defined contribution plans. The plans are designed to help employees accumulate additional savings for retirement, and we make company matching contributions on a portion of eligible pay based on years of service. In 2010, in connection with our acquisitions of PBG and PAS, we also made company retirement contributions for certain employees on a portion of eligible pay based on years of service. In 2010 and 2009, our total contributions were $135 million and $72 million, respectively.

Beginning January 1, 2011, a new employer contribution to the 401(k) savings plan will become effective for certain eligible legacy PBG and PAS salaried employees as well as all future eligible salaried new hires of PepsiCo who are not eligible to participate in the defined benefit pension plan as a result of plan design changes approved during 2010.

For additional unaudited information on our pension and retiree medical plans and related accounting policies and assumptions, see "Our Critical Accounting Policies" in Management's Discussion and Analysis.

Noncontrolled Bottling Affiliates

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Noncontrolled Bottling Affiliates

12 Months Ended

Dec. 25, 2010

Note 8 — Noncontrolled Bottling Affiliates

On February 26, 2010, we completed our acquisitions of PBG and PAS, at which time we gained control over their operations and began to consolidate their results. See Note 1. Prior to these acquisitions, PBG and PAS represented our most significant noncontrolled bottling affiliates. Sales to PBG in 2010 (prior to the acquisition date) represented less than 1% of our total net revenue in 2010, 6% of our total net revenue in 2009 and 7% of our total net revenue in 2008.

See Note 15 for additional information regarding our acquisitions of PBG and PAS.

The Pepsi Bottling Group

In addition to approximately 32% of PBG's outstanding common stock that we owned at year-end 2009, we owned 100% of PBG's class B common stock and approximately 7% of the equity of Bottling Group, LLC, PBG's principal operating subsidiary.

PBG's summarized financial information is as follows:


	2009		2008
Current assets	$	3,412
Noncurrent assets		10,158

Total assets	$	13,570

Current liabilities	$	1,965
Noncurrent liabilities		7,896

Total liabilities	$	9,861

Our investment	$	1,775

Net revenue	$	13,219	$	13,796
Gross profit	$	5,840	$	6,210
Operating (loss)/income	$	1,048	$	649
Net (loss)/income attributable to PBG	$	612	$	162

Our investment in PBG, which included the related goodwill, was $463 million higher than our ownership interest in their net assets less noncontrolling interests at year-end 2009.

During 2008, together with PBG, we jointly acquired Russia's leading branded juice company, Lebedyansky. See Note 14 for further information on this acquisition.

PepsiAmericas

At year-end 2009, we owned approximately 43% of the outstanding common stock of PAS.

PAS's summarized financial information is as follows:


	2009		2008
Current assets	$	952
Noncurrent assets		4,141

Total assets	$	5,093

Current liabilities	$	669
Noncurrent liabilities		2,493

Total liabilities	$	3,162

Our investment	$	1,071

Net revenue	$	4,421	$	4,937
Gross profit	$	1,767	$	1,982
Operating (loss)/income	$	381	$	473
Net (loss)/income attributable to PAS	$	181	$	226

Our investment in PAS, which included the related goodwill, was $322 million higher than our ownership interest in their net assets less noncontrolling interests at year-end 2009.

Related Party Transactions

Our significant related party transactions are with our noncontrolled bottling affiliates, including PBG and PAS prior to our acquisitions on February 26, 2010. All such amounts are settled on terms consistent with other trade receivables and payables. The transactions primarily consist of (1) selling concentrate to these affiliates, which they use in the production of CSDs and non-carbonated beverages, (2) selling certain finished goods to these affiliates, (3) receiving royalties for the use of our trademarks for certain products and (4) paying these affiliates to act as our manufacturing and distribution agent for product associated with our national account fountain customers. Sales of concentrate and finished goods are reported net of bottler funding. For further unaudited information on these bottlers, see "Our Customers" in Management's Discussion and Analysis of Financial Condition and Results of Operations. These transactions with our bottling affiliates are reflected in our consolidated financial statements as follows:


	2010^(a)		2009		2008
Net revenue	$	993	$	3,922	$	4,049
Cost of sales	$	116	$	634	$	660
Selling, general and administrative expenses	$	6	$	24	$	30
Accounts and notes receivable	$	27	$	254	$	248
Accounts payable and other liabilities	$	42	$	285	$	198

(a)	Includes transactions with PBG and PAS in 2010 prior to the date of acquisition. 2010 balance sheet information for PBG and PAS is not applicable as we consolidated their balance sheets at the date of acquisition.

We also coordinate, on an aggregate basis, the contract negotiations of sweeteners and other raw material requirements, including aluminum cans and plastic bottles and closures for certain of our independent bottlers. Once we have negotiated the contracts, the bottlers order and take delivery directly from the supplier and pay the suppliers directly. Consequently, these transactions are not reflected in our consolidated financial statements. As the contracting party, we could be liable to these suppliers in the event of any nonpayment by our bottlers, but we consider this exposure to be remote.

In addition, our joint ventures with Unilever (under the Lipton brand name) and Starbucks sell finished goods (ready-to-drink teas, coffees and water products) to our noncontrolled bottling affiliates. Consistent with accounting for equity method investments, our joint venture revenue is not included in our consolidated net revenue and therefore is not included in the above table.

In 2010, we repurchased $357 million (5.5 million shares) of PepsiCo stock from the Master Trust which holds assets of PepsiCo's U.S. qualified pension plans at market value. See Note 7.

Debt Obligations and Commitments

12 Months Ended

Dec. 25, 2010

Debt Obligations and Commitments

Note 9 — Debt Obligations and Commitments


	2010			2009
*Short-term debt obligations*
Current maturities of long-term debt	$	113		$	102
Commercial paper (0.2%)		2,632			—
Notes due 2011 (4.4%)		1,513			—
Other borrowings (5.3% and 6.7%)		640			362

	$	4,898		$	464

*Long-term debt obligations*
Notes due 2012 (3.1% and 1.9%)	$	2,437		$	1,079
Notes due 2013 (3.0% and 3.7%)		2,110			999
Notes due 2014 (5.3% and 4.0%)		2,888			1,026
Notes due 2015 (2.6%)		1,617			—
Notes due 2016-2040 (4.9% and 5.4%)		10,828			4,056
Zero coupon notes, due 2011-2012 (13.3%)		136			192
Other, due 2011-2019 (4.8% and 8.4%)		96			150

		20,112			7,502
Less: current maturities of long-term debt obligations		(113	)		(102	)

	$	19,999		$	7,400

The interest rates in the above table reflect weighted-average rates at year-end.

In the first quarter of 2010, we issued $1.25 billion of floating rate notes maturing in 2011 which bear interest at a rate equal to the three-month London Inter-Bank Offered Rate (LIBOR) plus 3 basis points, $1.0 billion of 3.10% senior notes maturing in 2015, $1.0 billion of 4.50% senior notes maturing in 2020 and $1.0 billion of 5.50% senior notes maturing in 2040. A portion of the net proceeds from the issuance of these notes was used to finance our acquisitions of PBG and PAS and the remainder was used for general corporate purposes.

On February 26, 2010, in connection with the transactions contemplated by the PBG merger agreement, Pepsi-Cola Metropolitan Bottling Company, Inc. (Metro) assumed the due and punctual payment of the principal of (and premium, if any) and interest on PBG's 7.00% senior notes due March 1, 2029 ($1 billion principal amount of which are outstanding). These notes are guaranteed by Bottling Group, LLC and PepsiCo.

On February 26, 2010, in connection with the transactions contemplated by the PAS merger agreement, Metro assumed the due and punctual payment of the principal of (and premium, if any) and interest on PAS's 7.625% notes due 2015 ($9 million principal amount of which are outstanding), 7.29% notes due 2026 ($100 million principal amount of which are outstanding), 7.44% notes due 2026 ($25 million principal amount of which are outstanding), 4.50% notes due 2013 ($150 million principal amount of which are outstanding), 5.625% notes due 2011 ($250 million principal amount of which are outstanding), 5.75% notes due 2012 ($300 million principal amount of which are outstanding), 4.375% notes due 2014 ($350 million principal amount of which are outstanding), 4.875% notes due 2015 ($300 million principal amount of which are outstanding), 5.00% notes due 2017 ($250 million principal amount of which are outstanding) and 5.50% notes due 2035 ($250 million principal amount of which are outstanding). These notes are guaranteed by PepsiCo.

On February 26, 2010, as a result of the transactions contemplated by the PBG merger agreement, Bottling Group, LLC became a wholly owned subsidiary of Metro. Bottling Group, LLC's 4.625% senior notes due 2012 ($1 billion principal amount of which are outstanding), 4.125% senior notes due 2015 ($250 million principal amount of which are outstanding), 5.00% senior notes due 2013 ($400 million principal amount of which are outstanding), 5.50% senior notes due 2016 ($800 million principal amount of which are outstanding), 6.95% senior notes due 2014 ($1.3 billion principal amount of which are outstanding) and 5.125% senior notes due 2019 ($750 million principal amount of which are outstanding) are guaranteed by PepsiCo.

As of December 25, 2010, the long-term debt acquired from our anchor bottlers (including debt previously issued by PBG, Bottling Group, LLC and PAS) in connection with our acquisitions of PBG and PAS has a total face value of approximately $7,484 million (fair value of $8,472 million) with a weighted-average stated interest rate of 5.7%. This acquired debt has a remaining weighted-average maturity of 6.6 years. See Note 15.

In the third quarter of 2010, we entered into a $2,575 million 364-day unsecured revolving credit agreement which expires in June 2011. We may request renewal of this facility for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to one year, which would mature no later than June 2012. This agreement replaced our $1,975 million 364-day unsecured revolving credit agreement and a $540 million amended PAS credit facility and is in addition to our existing $2,000 million unsecured revolving credit agreement and the $1,080 million amended PBG credit facility, both of which expire in 2012. Funds borrowed under these agreements may be used for general corporate purposes, including but not limited to repayment of our outstanding commercial paper, working capital, capital investments and/or acquisitions. Borrowings under the amended PBG credit facility are guaranteed by PepsiCo. Our lines of credit remain unused as of December 25, 2010.

In the fourth quarter of 2010, we paid $672 million in a cash tender offer to repurchase $500 million (aggregate principal amount) of our 7.90% senior unsecured notes maturing in 2018. As a result of this debt repurchase, we recorded a $178 million charge to interest expense, primarily representing the premium paid in the tender offer.

In the fourth quarter of 2010, we issued $500 million of 0.875% senior unsecured notes maturing in 2013, $1.0 billion of 3.125% senior unsecured notes maturing in 2020 and $750 million of 4.875% senior unsecured notes maturing in 2040. A portion of the net proceeds from the issuance of these notes was used to finance the debt repurchase and the remainder was used for general corporate purposes.

In addition, as of December 25, 2010, $657 million of our debt related to borrowings from various lines of credit that are maintained for our international divisions. These lines of credit are subject to normal banking terms and conditions and are fully committed at least to the extent of our borrowings.

Long-Term Contractual Commitments^(a)


	Payments Due by Period
	Total		2011		2012 – 2013		2014 – 2015		2016 and beyond
Long-term debt obligations^(b)	$	19,337	$	—	$	4,569	$	4,322	$	10,446
Interest on debt obligations^(c)		7,746		809		1,480		1,075		4,382
Operating leases		1,676		390		543		320		423
Purchasing commitments		2,433		765		1,159		481		28
Marketing commitments		824		294		268		151		111

	$	32,016	$	2,258	$	8,019	$	6,349	$	15,390

(a)	Reflects non-cancelable commitments as of December 25, 2010 based on year-end foreign exchange rates and excludes any reserves for uncertain tax positions as we are unable to reasonably predict the ultimate amount or timing of settlement.

(b)	Excludes $662 million related to the fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS, as well as $113 million related to current maturities of long-term debt.

(c)	Interest payments on floating-rate debt are estimated using interest rates effective as of December 25, 2010.

Most long-term contractual commitments, except for our long-term debt obligations, are not recorded on our balance sheet. Non-cancelable operating leases primarily represent building leases. Non-cancelable purchasing commitments are primarily for packaging materials, oranges and orange juice. Non-cancelable marketing commitments are primarily for sports marketing. Bottler funding to independent bottlers is not reflected in our long-term contractual commitments as it is negotiated on an annual basis. Accrued liabilities for pension and retiree medical plans are not reflected in our long-term contractual commitments because they do not represent expected future cash outflows. See Note 7 for additional information regarding our pension and retiree medical obligations.

Off-Balance-Sheet Arrangements

It is not our business practice to enter into off-balance-sheet arrangements, other than in the normal course of business. See Note 8 regarding contracts related to certain of our bottlers.

See "Our Liquidity and Capital Resources" in Management's Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our borrowings.

Financial Instruments

12 Months Ended

Dec. 25, 2010

Financial Instruments

Note 10 — Financial Instruments

We are exposed to market risks arising from adverse changes in:

•

commodity prices, affecting the cost of our raw materials and energy,

•

foreign exchange risks, and

•

interest rates.

In the normal course of business, we manage these risks through a variety of strategies, including the use of derivatives. Certain derivatives are designated as either cash flow or fair value hedges and qualify for hedge accounting treatment, while others do not qualify and are marked to market through earnings. Cash flows from derivatives used to manage commodity, foreign exchange or interest risks are classified as operating activities. See "Our Business Risks" in Management's Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our business risks.

For cash flow hedges, changes in fair value are deferred in accumulated other comprehensive loss within common shareholders' equity until the underlying hedged item is recognized in net income. For fair value hedges, changes in fair value are recognized immediately in earnings, consistent with the underlying hedged item. Hedging transactions are limited to an underlying exposure. As a result, any change in the value of our derivative instruments would be substantially offset by an opposite change in the value of the underlying hedged items. Hedging ineffectiveness and a net earnings impact occur when the change in the value of the hedge does not offset the change in the value of the underlying hedged item. Ineffectiveness of our hedges is not material. If the derivative instrument is terminated, we continue to defer the related gain or loss and then include it as a component of the cost of the underlying hedged item. Upon determination that the underlying hedged item will not be part of an actual transaction, we recognize the related gain or loss in net income immediately.

We also use derivatives that do not qualify for hedge accounting treatment. We account for such derivatives at market value with the resulting gains and losses reflected in our income statement. We do not use derivative instruments for trading or speculative purposes. We perform assessments of our counterparty credit risk regularly, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Based on our most recent assessment of our counterparty credit risk, we consider this risk to be low. In addition, we enter into derivative contracts with a variety of financial institutions that we believe are creditworthy in order to reduce our concentration of credit risk and generally settle with these financial institutions on a net basis.

Commodity Prices

We are subject to commodity price risk because our ability to recover increased costs through higher pricing may be limited in the competitive environment in which we operate. This risk is managed through the use of fixed-price purchase orders, pricing agreements, geographic diversity and derivatives. We use derivatives, with terms of no more than three years, to economically hedge price fluctuations related to a portion of our anticipated commodity purchases, primarily for natural gas, diesel fuel and aluminum. For those derivatives that qualify for hedge accounting, any ineffectiveness is recorded immediately in corporate unallocated expenses. We classify both the earnings and cash flow impact from these derivatives consistent with the underlying hedged item. During the next 12 months, we expect to reclassify net gains of $12 million related to these hedges from accumulated other comprehensive loss into net income. Derivatives used to hedge commodity price risk that do not qualify for hedge accounting are marked to market each period and reflected in our income statement.

Our open commodity derivative contracts that qualify for hedge accounting had a face value of $590 million as of December 25, 2010 and $151 million as of December 26, 2009. These contracts resulted in net unrealized gains of $46 million as of December 25, 2010 and net unrealized losses of $29 million as of December 26, 2009.

Our open commodity derivative contracts that do not qualify for hedge accounting had a face value of $266 million as of December 25, 2010 and $231 million as of December 26, 2009. These contracts resulted in net gains of $26 million in 2010 and net losses of $57 million in 2009.

Foreign Exchange

Financial statements of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. Adjustments resulting from translating net assets are reported as a separate component of accumulated other comprehensive loss within common shareholders' equity as currency translation adjustment.

Our operations outside of the U.S. generate over 45% of our net revenue, with Mexico, Canada, Russia and the United Kingdom comprising approximately 20% of our net revenue. As a result, we are exposed to foreign currency risks. We also enter into derivatives, primarily forward contracts with terms of no more than two years, to manage our exposure to foreign currency transaction risk. Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses in our income statement as incurred.

Our foreign currency derivatives had a total face value of $1.7 billion as of December 25, 2010 and $1.2 billion as of December 26, 2009. The contracts that qualify for hedge accounting resulted in net unrealized losses of $15 million as of December 25, 2010 and $20 million as of December 26, 2009. During the next 12 months, we expect to reclassify net losses of $14 million related to these hedges from accumulated other comprehensive loss into net income. The contracts that do not qualify for hedge accounting resulted in net losses of $6 million in 2010 and a net gain of $1 million in 2009. All losses and gains were offset by changes in the underlying hedged items, resulting in no net material impact on earnings.

Interest Rates

We centrally manage our debt and investment portfolios considering investment opportunities and risks, tax consequences and overall financing strategies. We use various interest rate derivative instruments including, but not limited to, interest rate swaps, cross currency interest rate swaps, Treasury locks and swap locks to manage our overall interest expense and foreign exchange risk. These instruments effectively change the interest rate and currency of specific debt issuances. Certain of our fixed rate indebtedness has been swapped to floating rates. The notional amount, interest payment and maturity date of the interest rate and cross currency swaps match the principal, interest payment and maturity date of the related debt. Our Treasury locks and swap locks are entered into to protect against unfavorable interest rate changes relating to forecasted debt transactions.

The notional amounts of the interest rate derivative instruments outstanding as of December 25, 2010 and December 26, 2009 were $9.23 billion and $5.75 billion, respectively. For those interest rate derivative instruments that qualify for cash flow hedge accounting, any ineffectiveness is recorded immediately. We classify both the earnings and cash flow impact from these interest rate derivative instruments consistent with the underlying hedged item. During the next 12 months, we expect to reclassify net losses of $13 million related to these hedges from accumulated other comprehensive loss into net income.

As of December 25, 2010, approximately 43% of total debt (including indebtedness acquired in our acquisitions of PBG and PAS), after the impact of the related interest rate derivative instruments, was exposed to variable rates compared to 57% as of December 26, 2009.

Fair Value Measurements

The fair values of our financial assets and liabilities as of December 25, 2010 and December 26, 2009 are categorized as follows:


	2010				2009
	Assets^(a)		Liabilities^(a)		Assets^(a)		Liabilities^(a)
Available-for-sale securities^(b)	$	636	$	—	$	71	$	—
Short-term investments – index funds^(c)	$	167	$	—	$	120	$	—
Deferred compensation^(d)	$	—	$	559	$	—	$	461
Derivatives designated as hedging instruments:
Forward exchange contracts^(e)	$	8	$	23	$	11	$	31
Interest rate derivatives^(f)		284		12		177		43
Commodity contracts – other^(g)		70		2		8		5
Commodity contracts – futures^(h)		1		23		—		32

	$	363	$	60	$	196	$	111
Derivatives not designated as hedging instruments:
Forward exchange contracts^(e)	$	1	$	7	$	4	$	2
Interest rate derivatives^(f)		6		45		—		—
Commodity contracts – other^(g)		28		1		7		60
Commodity contracts – futures^(h)		—		1		—		3
Prepaid forward contracts⁽ⁱ⁾		48		—		46		—

	$	83	$	54	$	57	$	65

Total derivatives at fair value	$	446	$	114	$	253	$	176

Total	$	1,249	$	673	$	444	$	637

Financial assets are classified on our balance sheet within other assets, with the exception of short-term investments. Financial liabilities are classified on our balance sheet within other current liabilities and other liabilities. Unless specifically indicated, all financial assets and liabilities are categorized as Level 2 assets or liabilities.

b)	Based on the price of common stock. Categorized as a Level 1 asset.

c)	Based on price changes in index funds used to manage a portion of market risk arising from our deferred compensation liability. Categorized as a Level 1 asset.

d)	Based on the fair value of investments corresponding to employees' investment elections. At December 25, 2010 and December 26, 2009, $170 million and $121 million, respectively, are categorized as Level 1 liabilities. The remaining balances are categorized as Level 2 liabilities.

e)	Based on observable market transactions of spot and forward rates.

f)	Based on LIBOR and recently reported transactions in the marketplace.

g)	Based on recently reported transactions in the marketplace, primarily swap arrangements.

h)	Based on average prices on futures exchanges. Categorized as a Level 1 asset or liability.

i)	Based primarily on the price of our common stock.

The effective portion of the pre-tax (gains)/losses on our derivative instruments are categorized in the tables below.


	Fair Value/Non- designated Hedges						Cash Flow Hedges
	Losses/(Gains) Recognized in Income Statement^(a)						Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss						Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement^(b)
	2010			2009			2010			2009			2010		2009
Forward exchange contracts	$	6		$	(29	)	$	26		$	75		$	40	$	(64	)
Interest rate derivatives		(104	)		206			75			32			7		—
Prepaid forward contracts		(4	)		(5	)		—			—			—		—
Commodity contracts		(30	)		(274	)		(32	)		(1	)		28		90

Total	$	(132	)	$	(102	)	$	69		$	106		$	75		26

(a)	Interest rate gains/losses are included in interest expense in our income statement. All other gains/losses are included in corporate unallocated expenses.

(b)	Interest rate losses are included in interest expense in our income statement. All other gains/losses are included in cost of sales in our income statement.

The carrying amounts of our cash and cash equivalents and short-term investments approximate fair value due to the short-term maturity. Short-term investments consist principally of short-term time deposits and index funds used to manage a portion of market risk arising from our deferred compensation liability. The fair value of our debt obligations as of December 25, 2010 and December 26, 2009 was $25.9 billion and $8.6 billion, respectively, based upon prices of similar instruments in the marketplace.

The above table excludes guarantees. See Note 9 for additional information on our guarantees.

Net Income Attributable to PepsiCo per Common Share

12 Months Ended

Dec. 25, 2010

Net Income Attributable to PepsiCo per Common Share

Note 11 — Net Income Attributable to PepsiCo per Common Share

Basic net income attributable to PepsiCo per common share is net income available for PepsiCo common shareholders divided by the weighted average of common shares outstanding during the period. Diluted net income attributable to PepsiCo per common share is calculated using the weighted average of common shares outstanding adjusted to include the effect that would occur if in-the-money employee stock options were exercised and RSUs and preferred shares were converted into common shares. Options to purchase 24.4 million shares in 2010, 39.0 million shares in 2009 and 9.8 million shares in 2008 were not included in the calculation of diluted earnings per common share because these options were out-of-the-money. Out-of-the-money options had average exercise prices of $67.26 in 2010, $61.52 in 2009 and $67.59 in 2008.

The computations of basic and diluted net income attributable to PepsiCo per common share are as follows:


	2010					2009					2008
	Income			Shares^(a)		Income			Shares^(a)		Income			Shares^(a)
Net income attributable to PepsiCo	$	6,320				$	5,946				$	5,142
Preferred shares:
Dividends		(1	)				(1	)				(2	)
Redemption premium		(5	)				(5	)				(6	)

Net income available for PepsiCo common shareholders	$	6,314			1,590	$	5,940			1,558	$	5,134			1,573


Basic net income attributable to PepsiCo per common share	$	3.97				$	3.81				$	3.26

Net income available for PepsiCo common shareholders	$	6,314			1,590	$	5,940			1,558	$	5,134			1,573
Dilutive securities:
Stock options and RSUs		—			23		—			17		—			27
ESOP convertible preferred stock		6			1		6			2		8			2

Diluted	$	6,320			1,614	$	5,946			1,577	$	5,142			1,602

Diluted net income attributable to PepsiCo per common share	$	3.91				$	3.77				$	3.21

(a)	Weighted-average common shares outstanding (in millions).

Preferred Stock

12 Months Ended

Dec. 25, 2010

Preferred Stock

Note 12 — Preferred Stock

As of December 25, 2010 and December 26, 2009, there were 3 million shares of convertible preferred stock authorized. The preferred stock was issued for an ESOP established by Quaker and these shares are redeemable for common stock by the ESOP participants. The preferred stock accrues dividends at an annual rate of $5.46 per share. At year-end 2010 and 2009, there were 803,953 preferred shares issued and 227,653 and 243,553 shares outstanding, respectively. The outstanding preferred shares had a fair value of $74 million as of December 25, 2010 and $73 million as of December 26, 2009. Each share is convertible at the option of the holder into 4.9625 shares of common stock. The preferred shares may be called by us upon written notice at $78 per share plus accrued and unpaid dividends. Quaker made the final award to its ESOP plan in June 2001.


	2010				2009				2008
	Shares^(a)		Amount		Shares^(a)		Amount		Shares^(a)		Amount
*Preferred stock*		0.8	$	41		0.8	$	41		0.8	$	41

*Repurchased preferred stock*
Balance, beginning of year		0.6	$	145		0.5	$	138		0.5	$	132
Redemptions		—		5		0.1		7		—		6

Balance, end of year		0.6	$	150		0.6	$	145		0.5	$	138

(a)	In millions.

Accumulated Other Comprehensive Loss Attributable to PepsiCo

12 Months Ended

Dec. 25, 2010

Accumulated Other Comprehensive Loss Attributable to PepsiCo

Note 13 — Accumulated Other Comprehensive Loss Attributable to PepsiCo

Comprehensive income is a measure of income which includes both net income and other comprehensive income or loss. Other comprehensive income or loss results from items deferred from recognition into our income statement. Accumulated other comprehensive loss is separately presented on our balance sheet as part of common shareholders' equity. Other comprehensive income/(loss) attributable to PepsiCo was $164 million in 2010, $900 million in 2009 and $(3,793) million in 2008. The accumulated balances for each component of other comprehensive loss attributable to PepsiCo were as follows:


	2010			2009			2008
Currency translation adjustment	$	(1,159	)	$	(1,471	)	$	(2,271	)
Cash flow hedges, net of tax^(a)		(100	)		(42	)		(14	)
Unamortized pension and retiree medical, net of tax^(b)		(2,442	)		(2,328	)		(2,435	)
Unrealized gain on securities, net of tax		70			47			28
Other		1			—			(2	)

Accumulated other comprehensive loss attributable to PepsiCo	$	(3,630	)	$	(3,794	)	$	(4,694	)

(a)	Includes $23 million after-tax gain in 2009 and $17 million after-tax loss in 2008 for our share of our equity investees' accumulated derivative activity.

(b)	Net of taxes of $1,322 million in 2010, $1,211 million in 2009 and $1,288 million in 2008. Includes $51 million decrease to the opening balance of accumulated other comprehensive loss attributable to PepsiCo in 2008 due to a change in measurement date for our pension and retiree medical plans.

Supplemental Financial Information

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Supplemental Financial Information

12 Months Ended

Dec. 25, 2010

Note 14 — Supplemental Financial Information


	2010			2009			2008
*Accounts receivable*
Trade receivables	$	5,514		$	4,026
Other receivables		953			688

		6,467			4,714

Allowance, beginning of year		90			70		$	69
Net amounts charged to expense		12			40			21
Deductions ^(a)		(37	)		(21	)		(16	)
Other ^(b)		79			1			(4	)

Allowance, end of year		144			90		$	70

Net receivables	$	6,323		$	4,624

*Inventories* ^(c)
Raw materials	$	1,654		$	1,274
Work-in-process		128			165
Finished goods		1,590			1,179

	$	3,372		$	2,618

(a)	Includes accounts written off.

(b)	Includes adjustments related to our acquisitions of PBG and PAS, currency translation effects and other adjustments.

(c)


	2010		2009
*Other assets*
Noncurrent notes and accounts receivable	$	165	$	118
Deferred marketplace spending		203		182
Unallocated purchase price for recent acquisitions		—		143
Pension plans		121		64
Other investments ^(a)		653		89
Other		547		369

	$	1,689	$	965

*Accounts payable and other current liabilities*
Accounts payable	$	3,865	$	2,881
Accrued marketplace spending		1,841		1,656
Accrued compensation and benefits		1,779		1,291
Dividends payable		766		706
Other current liabilities		2,672		1,593

	$	10,923	$	8,127

(a)	In 2010, includes our investment in WBD of $549 million. This investment is accounted for as an available-for-sale security with any unrealized gains or losses recorded in other comprehensive income.


	2010			2009			2008
*Other supplemental information*
Rent expense	$	526		$	412		$	357
Interest paid	$	1,043		$	456		$	359
Income taxes paid, net of refunds	$	1,495		$	1,498		$	1,477
Acquisitions^(a)
Fair value of assets acquired	$	27,665		$	851		$	2,907
Cash paid, net of cash acquired		(3,044	)		(466	)		(1,925	)
Equity issued		(4,451	)		—			—
Previously held equity interests in PBG and PAS		(4,293	)		—			—

Liabilities and noncontrolling interests assumed	$	15,877		$	385		$	982

(a)	In 2010, amounts primarily reflect our acquisitions of PBG and PAS. During 2008, together with PBG, we jointly acquired Lebedyansky, for a total purchase price of $1.8 billion.

Acquisitions

12 Months Ended

Dec. 25, 2010

Acquisitions

Note 15 — Acquisitions

PBG and PAS

On August 3, 2009, we entered into a Merger Agreement (the PBG Merger Agreement) with PBG and Metro pursuant to which PBG merged with and into Metro, with Metro continuing as the surviving corporation and a wholly owned subsidiary of PepsiCo. Also on August 3, 2009, we entered into a Merger Agreement (the PAS Merger Agreement and together with the PBG Merger Agreement, the Merger Agreements) with PAS and Metro pursuant to which PAS merged with and into Metro, with Metro continuing as the surviving corporation and a wholly owned subsidiary of PepsiCo. On February 26, 2010, we acquired PBG and PAS to create a more fully integrated supply chain and go-to-market business model, improving the effectiveness and efficiency of the distribution of our brands and enhancing our revenue growth. The total purchase price was approximately $12.6 billion, which included $8.3 billion of cash and equity and the fair value of our previously held equity interests in PBG and PAS of $4.3 billion.

Under the terms of the PBG Merger Agreement, each outstanding share of common stock of PBG not held by Metro, PepsiCo or a subsidiary of PepsiCo or held by PBG as treasury stock (each, a "PBG Share") was canceled and converted into the right to receive, at the holder's election, either 0.6432 shares of common stock of PepsiCo (the "PBG Per Share Stock Consideration") or $36.50 in cash, without interest (the "PBG Cash Election Price"), subject to proration provisions which provide that an aggregate 50% of such outstanding PBG Shares were converted into the right to receive common stock of PepsiCo and an aggregate 50% of such outstanding PBG Shares were converted into the right to receive cash and each PBG Share and share of Class B common stock of PBG held by Metro, PepsiCo or a subsidiary of PepsiCo was canceled or converted to the right to receive 0.6432 shares of common stock of PepsiCo. Under the terms of the PAS Merger Agreement, each outstanding share of common stock of PAS not held by Metro, PepsiCo or a subsidiary of PepsiCo or held by PAS as treasury stock (each, a "PAS Share") was canceled and converted into the right to receive, at the holder's election, either 0.5022 shares of common stock of PepsiCo (the "PAS Per Share Stock Consideration") or $28.50 in cash, without interest (the "PAS Cash Election Price"), subject to proration provisions which provide that an aggregate 50% of such outstanding PAS Shares were converted into the right to receive common stock of PepsiCo and an aggregate 50% of such outstanding PAS Shares were converted into the right to receive cash and each PAS Share held by Metro, PepsiCo or a subsidiary of PepsiCo was canceled or converted into the right to receive 0.5022 shares of common stock of PepsiCo.

Under the terms of the applicable Merger Agreement, each PBG or PAS stock option was converted into an adjusted PepsiCo stock option to acquire a number of shares of PepsiCo common stock, determined by multiplying the number of shares of PBG or PAS common stock subject to the PBG or PAS stock option by an exchange ratio (the "Closing Exchange Ratio") equal to the closing price of a share of PBG or PAS common stock on the business day immediately before the acquisition date divided by the closing price of a share of PepsiCo common stock on the business day immediately before the acquisition date. The exercise price per share of PepsiCo common stock subject to the adjusted PepsiCo stock option is equal to the per share exercise price of PBG or PAS stock option divided by the Closing Exchange Ratio.

Under the terms of the PBG Merger Agreement, each PBG restricted stock unit (RSU) was adjusted so that its holder is entitled to receive, upon settlement, a number of shares of PepsiCo common stock equal to the number of shares of PBG common stock subject to the PBG RSU multiplied by the PBG Per Share Stock Consideration. PBG performance-based RSUs were converted into PepsiCo RSUs based on 100% target achievement, and, following conversion, remain subject to continued service of the holder. Each PBG RSU held by a non-employee director was vested and canceled at the acquisition date, and, in exchange for cancellation of the PBG RSU, the holder received the PBG Per Share Stock Consideration for each share of PBG common stock subject to the PBG RSU.

Under the terms of the PAS Merger Agreement, each cash-settled PAS RSU was canceled in exchange for a cash payment equal to the closing price of a share of PAS common stock on the business day immediately before the closing of the PAS merger for each share of PAS common stock subject to each PAS RSU. Each PAS restricted share was converted into either the PAS Per Share Stock Consideration or the PAS Cash Election Price, at the election of the holder, with the same proration procedures applicable to PAS stockholders described above.

Pursuant to the terms of PBG's executive retention arrangements, PBG equity awards granted to certain executives prior to the PBG merger vest immediately upon a qualifying termination of the executive's employment except for certain PBG executives whose equity awards vested immediately at the effective time of the PBG merger pursuant to the terms of PepsiCo's executive retention agreements. Each PAS equity award granted prior to the PAS merger vested immediately at the effective time of the PAS merger pursuant to the original terms of the awards.

Prior to the acquisitions, we had equity investments in PBG and PAS. In addition to approximately 32% of PBG's outstanding common stock that we owned at year-end 2009, we owned 100% of PBG's class B common stock and approximately 7% of the equity of Bottling Group, LLC, PBG's principal operating subsidiary. At year-end 2009, we owned approximately 43% of the outstanding common stock of PAS.

The guidance on accounting for business combinations requires that an acquirer remeasure its previously held equity interest in an acquiree at its acquisition date fair value and recognize the resulting gain or loss in earnings. Thus, in connection with our acquisitions of PBG and PAS, the carrying amounts of our previously held equity interests in PBG and PAS were revalued to fair value at the acquisition date, resulting in a gain in the first quarter of 2010 of $958 million, comprising $735 million which is non-taxable and recorded in bottling equity income and $223 million related to the reversal of deferred tax liabilities associated with these previously held equity interests.

As discussed in Note 9, in January 2010, we issued $4.25 billion of fixed and floating rate notes. A portion of the net proceeds from the issuance of these notes was used to finance our acquisitions of PBG and PAS.

Our actual stock price on February 25, 2010 (the last trading day prior to the closing of the acquisitions) was used to determine the value of stock, stock options and RSUs issued as consideration in connection with our acquisitions of PBG and PAS and thus to calculate the actual purchase price.

The table below represents the computation of the purchase price excluding assumed debt and the fair value of our previously held equity interests in PBG and PAS as of the acquisition date:


	Total Number of Shares/Awards Issued		Total Fair Value
Payment in cash, for the remaining (not owned by PepsiCo and its subsidiaries) outstanding shares of PBG and PAS common stock and equity awards vested at consummation of merger		—	$	3,813
Payment to PBG and PAS of shares of PepsiCo common stock for the remaining (not owned by PepsiCo and its subsidiaries) outstanding shares of PBG and PAS common stock and equity awards vested at consummation of merger		67		4,175
Issuance of PepsiCo equity awards (vested and unvested) to replace existing PBG and PAS equity awards		16		276

Total purchase price		83	$	8,264

The following table summarizes the fair value of identifiable assets acquired and liabilities assumed in the acquisitions of PBG and PAS and the resulting goodwill as of the acquisition date:


	Acquisition Date Fair Value
Inventory	$	1,006
Property, plant and equipment		5,574
Amortizable intangible assets		1,298
Nonamortizable intangible assets, primarily reacquired franchise rights		9,036
Other current assets and current liabilities^(a)		751
Other noncurrent assets		281
Debt obligations		(8,814	)
Pension and retiree medical benefits		(962	)
Other noncurrent liabilities		(744	)
Deferred income taxes		(3,246	)

Total identifiable net assets		4,180
Goodwill		8,059

Subtotal		12,239
Fair value of acquisition of noncontrolling interest		317

Total purchase price	$	12,556

(a)	Includes cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and other current liabilities.

Goodwill is calculated as the excess of the purchase price paid over the net assets recognized. The goodwill recorded as part of the acquisitions of PBG and PAS primarily reflects the value of adding PBG and PAS to PepsiCo to create a more fully integrated supply chain and go-to-market business model, as well as any intangible assets that do not qualify for separate recognition. Goodwill is not amortizable nor deductible for tax purposes. Substantially all of the goodwill is recorded in our PAB segment.

In connection with our acquisitions of PBG and PAS, we reacquired certain franchise rights which had previously provided PBG and PAS with the exclusive and perpetual rights to manufacture and/or distribute beverages for sale in specified territories. Reacquired franchise rights totaling $8.0 billion were assigned a perpetual life and are, therefore, not amortizable. Amortizable acquired franchise rights of $0.9 billion have weighted-average estimated useful lives of 56 years. Other amortizable intangible assets, primarily customer relationships, have weighted-average estimated useful lives of 20 years.

Under the guidance on accounting for business combinations, merger and integration costs are not included as components of consideration transferred but are accounted for as expenses in the period in which the costs are incurred. See Note 3 for details on the expenses incurred during 2010.

The following table presents unaudited consolidated pro forma financial information as if the closing of our acquisitions of PBG and PAS had occurred on December 27, 2009 for purposes of the financial information presented for the year ended December 25, 2010; and as if the closing of our acquisitions of PBG and PAS had occurred on December 28, 2008 for purposes of the financial information presented for the year ended December 26, 2009.


	2010		2009
Net Revenue	$	59,582	$	57,471
Net Income Attributable to PepsiCo	$	5,856	$	6,752
Net Income Attributable to PepsiCo per Common Share – Diluted	$	3.60	$	4.09

The unaudited consolidated pro forma financial information was prepared in accordance with the acquisition method of accounting under existing standards, and the regulations of the U.S. Securities and Exchange Commission, and is not necessarily indicative of the results of operations that would have occurred if our acquisitions of PBG and PAS had been completed on the dates indicated, nor is it indicative of the future operating results of PepsiCo.

The historical unaudited consolidated financial information has been adjusted to give effect to pro forma events that are (1) directly attributable to the acquisitions, (2) factually supportable, and (3) expected to have a continuing impact on the combined results of PepsiCo, PBG and PAS.

The unaudited pro forma results have been adjusted with respect to certain aspects of our acquisitions of PBG and PAS to reflect:

•

the consummation of the acquisitions;

•

consolidation of PBG and PAS which are now owned 100% by PepsiCo and the corresponding gain resulting from the remeasurement of our previously held equity interests in PBG and PAS;

•

the elimination of related party transactions between PepsiCo and PBG, and PepsiCo and PAS;

•

changes in assets and liabilities to record their acquisition date fair values and changes in certain expenses resulting therefrom; and

•

additional indebtedness, including, but not limited to, debt issuance costs and interest expense, incurred in connection with the acquisitions.

The unaudited pro forma results do not reflect future events that may occur after the acquisitions, including, but not limited to, the anticipated realization of ongoing savings from operating synergies in subsequent periods. They also do not give effect to certain one-time charges we expect to incur in connection with the acquisitions, including, but not limited to, charges that are expected to achieve ongoing cost savings and synergies.

WBD

On February 3, 2011, we announced that we had completed the previously announced acquisition of ordinary shares, American Depositary Shares and Global Depositary Shares of WBD, a company incorporated in the Russian Federation, which represent in the aggregate approximately 66% of WBD's outstanding ordinary shares, pursuant to the purchase agreement dated December 1, 2010 between PepsiCo and certain selling shareholders of WBD for approximately $3.8 billion. The acquisition increased PepsiCo's total ownership of WBD to approximately 77%.

PepsiCo expects to make an offer in Russia (Russian Offer) on or before March 11, 2011 to acquire all of the remaining ordinary shares, in accordance with the mandatory tender offer rules of the Russian Federation. The price to be paid in the Russian Offer will be 3,883.70 Russian rubles per ordinary share. This price is $132, which is the price per share PepsiCo paid to the selling shareholders pursuant to the purchase agreement, converted to Russian rubles at the Central Bank of Russia exchange rate established for February 3, 2011. Concurrently with the Russian Offer, we expect to make an offer (U.S. Offer) to all holders of American Depositary Shares at a price per American Depositary Share equal to 970.925 Russian rubles (which is one-fourth of 3,883.70 Russian rubles since each American Depositary Share represents one-fourth of an ordinary share), without interest and less any fees, conversion expenses and applicable taxes. This amount will be converted to U.S. dollars at the spot market rate on or about the date that PepsiCo pays for the American Depositary Shares tendered in the U.S. Offer.

Our Significant Accounting Policies (Policy)

12 Months Ended

Dec. 25, 2010

Revenue Recognition

Revenue Recognition

Sales Incentives and Other Marketplace Spending

Sales Incentives and Other Marketplace Spending

•

media and personal service prepayments;

•

promotional materials in inventory; and

•

production costs of future media advertising.

Deferred advertising costs of $158 million and $143 million at year-end 2010 and 2009, respectively, are classified as prepaid expenses on our balance sheet.

Distribution Costs

Distribution Costs

Cash Equivalents

Cash Equivalents

Cash equivalents are investments with original maturities of three months or less which we do not intend to rollover beyond three months.

Software Costs

Software Costs

Commitments and Contingencies

Commitments and Contingencies

Research and Development

Research and Development

Other Significant Accounting Policies

Other Significant Accounting Policies

Our other significant accounting policies are disclosed as follows:

•

Income Taxes – Note 5, and for additional unaudited information, see "Our Critical Accounting Policies" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

•

Stock-Based Compensation – Note 6.

•

Financial Instruments – Note 10, and for additional unaudited information, see "Our Business Risks" in Management's Discussion and Analysis of Financial Condition and Results of Operations.

A description of a company's cash and cash equivalents accounting policy. An entity shall disclose its policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value. Cash includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. In addition, cash equivalents include short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three-years ago does not become a cash equivalent when its remaining maturity is three months. For a bank, may include explanation and amount of requirement to maintain reserves against deposits.

+ References+ Details

Quarterly Reporting Schedule

Describes an entity's accounting policy for its research and development and computer software activities including the accounting treatment for costs incurred for (1) research and development activities, (2) development of computer software for internal use, (3) computer software to be sold, leased or otherwise marketed as a separate product or as part of a product or process and (4) in-process research and development acquired in a purchase business combination.

+ References+ Details

Basis of Presentation and Our Divisions (Tables)

12 Months Ended

Dec. 25, 2010

Quarter	U.S. and Canada	International
First Quarter	12 weeks	January, February
Second Quarter	12 weeks	March, April and May
Third Quarter	12 weeks	June, July and August
Fourth Quarter	16 weeks	September, October,
		November and December

Schedule Of Segment Reporting Information, By Segment


	2010		2009		2008		2010			2009			2008
	*Net Revenue*						*Operating Profit^(a)*
FLNA	$	13,397	$	13,224	$	12,507	$	3,549		$	3,258		$	2,959
QFNA		1,832		1,884		1,902		568			628			582
LAF		6,315		5,703		5,895		1,004			904			897
PAB^(b)		20,401		10,116		10,937		2,776			2,172			2,026
Europe^(b)		9,254		6,727		6,891		1,020			932			910
AMEA		6,639		5,578		5,119		742			716			592

Total division		57,838		43,232		43,251		9,659			8,610			7,966
Corporate Unallocated
Net impact of mark-to-market on commodity hedges		—		—		—		91			274			(346	)
Merger and integration costs		—		—		—		(191	)		(49	)		—
Restructuring and impairment charges		—		—		—		—			—			(10	)
Venezuela currency devaluation		—		—		—		(129	)		—			—
Asset write-off		—		—		—		(145	)		—			—
Foundation contribution		—		—		—		(100	)		—			—
Other		—		—		—		(853	)		(791	)		(651	)

	$	57,838	$	43,232	$	43,251	$	8,332		$	8,044		$	6,959

(a)	For information on the impact of restructuring, impairment and integration charges on our divisions, see Note 3.

(b)	Changes in 2010 relate primarily to our acquisitions of PBG and PAS.

Segment Reporting Information By Total Assets And Capital Spending


	2010		2009		2008		2010		2009		2008
	*Total Assets*						*Capital Spending*
FLNA	$	6,284	$	6,337	$	6,284	$	526	$	490	$	553
QFNA		960		997		1,035		37		33		43
LAF		4,053		3,575		3,023		370		310		351
PAB^(a)		31,622		7,670		7,673		973		182		344
Europe^(a)		12,853		9,321		8,840		503		357		401
AMEA		5,748		4,937		3,756		624		585		479

Total division		61,520		32,837		30,611		3,033		1,957		2,171
Corporate^(b)		6,394		3,933		2,729		220		171		275
Investments in bottling affiliates^(a)		239		3,078		2,654		—		—		—

	$	68,153	$	39,848	$	35,994	$	3,253	$	2,128	$	2,446

(a)	Changes in total assets in 2010 relate primarily to our acquisitions of PBG and PAS.

(b)	Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments and property, plant and equipment.

Segment Reporting Information By Amortization Of Intangible Assets And Depreciation And Other Amortization


	2010		2009		2008		2010		2009		2008
	Amortization of Intangible Assets						*Depreciation and* *Other Amortization*
FLNA	$	7	$	7	$	9	$	462	$	440	$	441
QFNA		—		—		—		38		36		34
LAF		6		5		6		213		189		194
PAB^(a)		56		18		16		749		345		334
Europe^(a)		35		22		23		343		227		210
AMEA		13		11		10		306		248		213

Total division		117		63		64		2,111		1,485		1,426
Corporate		—		—		—		99		87		53

	$	117	$	63	$	64	$	2,210	$	1,572	$	1,479

Segment Reporting Information By Net Revenue And Long-lived Assets


	2010		2009		2008		2010		2009		2008
	*Net Revenue^(b)*						*Long-Lived Assets^(c)*
U.S.^(a)	$	30,618	$	22,446	$	22,525	$	28,631	$	12,496	$	12,095
Mexico^(a)		4,531		3,210		3,714		1,671		1,044		904
Canada^(a)		3,081		1,996		2,107		3,133		688		556
Russia^(a)		1,890		1,006		585		2,744		2,094		577
United Kingdom		1,888		1,826		2,099		1,019		1,358		1,509
All other countries		15,830		12,748		12,221		11,697		8,632		6,889

	$	57,838	$	43,232	$	43,251	$	48,895	$	26,312	$	22,530

(a)	Increases in 2010 relate primarily to our acquisitions of PBG and PAS.

(b)	Represents net revenue from businesses operating in these countries.

(c)	Long-lived assets represent property, plant and equipment, nonamortizable intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used.

Restructuring, Impairment and Integration Charges (Tables)

12 Months Ended

Dec. 25, 2010

Schedule of Merger and Integration Activity


	Severance and Other Employee Costs^(a)			Asset Impairment			Other Costs			Total
2010 merger and integration charges	$	396		$	132		$	280		$	808
Cash payments		(114	)		—			(271	)		(385	)
Non-cash charges		(103	)		(132	)		16			(219	)

Liability as of December 25, 2010	$	179		$	—		$	25		$	204

(a)	Primarily reflects termination costs for approximately 2,370 employees.

A summary of our restructuring and impairment charges in 2009 is as follows:

Productivity for Growth program activity

A summary of our restructuring and impairment charges in 2009 is as follows:


	Severance and Other Employee Costs^(a)		Other Costs		Total
FLNA	$	—	$	2	$	2
QFNA		—		1		1
LAF		3		—		3
PAB		6		10		16
Europe		1		—		1
AMEA		7		6		13

	$	17	$	19	$	36

(a)	Primarily reflects termination costs for approximately 410 employees.

A summary of our restructuring and impairment charges in 2008 is as follows:


	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	48	$	38	$	22	$	108
QFNA		14		3		14		31
LAF		30		8		2		40
PAB		68		92		129		289
Europe		39		6		5		50
AMEA		11		2		2		15
Corporate		2		—		8		10

	$	212	$	149	$	182	$	543


	Severance and Other Employee Costs			Asset Impairments			Other Costs			Total
2008 restructuring and impairment charges	$	212		$	149		$	182		$	543
Cash payments		(50	)		—			(109	)		(159	)
Non-cash charge		(27	)		(149	)		(9	)		(185	)
Currency translation		(1	)		—			—			(1	)

Liability as of December 27, 2008		134			—			64			198
2009 restructuring and impairment charges		17			12			7			36
Cash payments		(128	)		—			(68	)		(196	)
Currency translation		(14	)		(12	)		25			(1	)

Liability as of December 26, 2009		9			—			28			37
Cash payments		(6	)		—			(25	)		(31	)
Non-cash charge		(2	)		—			(1	)		(3	)
Currency translation		—			—			(1	)		(1	)

Liability as of December 25, 2010	$	1		$	—		$	1		$	2

Property, Plant and Equipment and Intangible Assets (Tables)

12 Months Ended

Dec. 25, 2010

Property, Plant and Equipment and Intangible Assets


	Average Useful Life		2010			2009			2008
*Property, plant and equipment, net*
Land and improvements		10 – 34yrs.	$	1,976		$	1,208
Buildings and improvements		15 – 44		7,054			5,080
Machinery and equipment, including fleet and software		5 – 15		22,091			17,183
Construction in progress				1,920			1,441

				33,041			24,912
Accumulated depreciation				(13,983	)		(12,241	)

			$	19,058		$	12,671

Depreciation expense			$	2,124		$	1,500		$	1,422

*Amortizable intangible assets, net*
Acquired franchise rights		56 – 60	$	949		$	—
Reacquired franchise rights		1 – 14		110			—
Brands		5 – 40		1,463			1,465
Other identifiable intangibles		10 – 24		747			505

				3,269			1,970
Accumulated amortization				(1,244	)		(1,129	)

			$	2,025		$	841

Amortization expense			$	117		$	63		$	64

Change in book value of nonamortizable intangible assets


	Balance, Beginning 2009		Acquisitions		Translation and Other			Balance, End of 2009		Acquisitions		Translation and Other			Balance, End of 2010
*FLNA*
Goodwill	$	277	$	6	$	23		$	306	$	—	$	7		$	313
Brands		—		26		4			30		—		1			31

		277		32		27			336		—		8			344

*QFNA*
Goodwill		175		—		—			175		—		—			175

*LAF*
Goodwill		424		17		38			479		—		18			497
Brands		127		1		8			136		—		7			143

		551		18		46			615		—		25			640

*PAB*^(a)
Goodwill		2,355		62		14			2,431		7,476		39			9,946
Reacquired franchise rights		—		—		—			—		7,229		54			7,283
Acquired franchise rights		—		—		—			—		660		905	^(b)		1,565
Brands		59		48		5			112		66		4			182
Other		—		—		—			—		10		—			10

		2,414		110		19			2,543		15,441		1,002			18,986

*Europe*^(a)
Goodwill		1,469		1,291		(136	)		2,624		583		(168	)		3,039
Reacquired franchise rights		—		—		—			—		810		(17	)		793
Acquired franchise rights		—		—		—			—		232		(5	)		227
Brands		844		572		(38	)		1,378		88		(86	)		1,380

		2,313		1,863		(174	)		4,002		1,713		(276	)		5,439

*AMEA*
Goodwill		424		4		91			519		116		56			691
Brands		98		—		28			126		26		17			169

		522		4		119			645		142		73			860

Total goodwill		5,124		1,380		30			6,534		8,175		(48	)		14,661
Total reacquired franchise rights		—		—		—			—		8,039		37			8,076
Total acquired franchise rights		—		—		—			—		892		900			1,792
Total brands		1,128		647		7			1,782		180		(57	)		1,905
Total other		—		—		—			—		10		—			10

	$	6,252	$	2,027	$	37		$	8,316	$	17,296	$	832		$	26,444

Income Taxes (Tables)

12 Months Ended

Dec. 25, 2010

Income Taxes


		2010			2009			2008
*Income before income taxes*
U.S.		$	4,008		$	4,209		$	3,274
Foreign			4,224			3,870			3,771

		$	8,232		$	8,079		$	7,045

*Provision for income taxes*
Current:	U.S. Federal	$	932		$	1,238		$	815
	Foreign		728			473			732
	State		137			124			87

			1,797			1,835			1,634

Deferred:	U.S. Federal		78			223			313
	Foreign		18			21			(69	)
	State		1			21			1

			97			265			245

		$	1,894		$	2,100		$	1,879

*Tax rate reconciliation*
U.S. Federal statutory tax rate			35.0	%		35.0	%		35.0	%
State income tax, net of U.S. Federal tax benefit			1.1			1.2			0.8
Lower taxes on foreign results			(9.4	)		(7.9	)		(8.0	)
Acquisitions of PBG and PAS			(3.1	)		—			—
Other, net			(0.6	)		(2.3	)		(1.1	)

Annual tax rate			23.0	%		26.0	%		26.7	%

*Deferred tax liabilities*
Investments in noncontrolled affiliates		$	74		$	1,120
Debt guarantee of wholly owned subsidiary			828			—
Property, plant and equipment			1,984			1,056
Intangible assets other than nondeductible goodwill			3,726			417
Other			647			68

Gross deferred tax liabilities			7,259			2,661

*Deferred tax assets*
Net carryforwards			1,264			624
Stock-based compensation			455			410
Retiree medical benefits			579			508
Other employee-related benefits			527			442
Pension benefits			291			179
Deductible state tax and interest benefits			320			256
Long-term debt obligations acquired			291			—
Other			904			560

Gross deferred tax assets			4,631			2,979
Valuation allowances			(875	)		(586	)

Deferred tax assets, net			3,756			2,393

Net deferred tax liabilities		$	3,503		$	268

Reserves for Federal, State And Foreign Jurisdictions


	2010			2009
Balance, beginning of year	$	1,731		$	1,711
Additions for tax positions related to the current year		204			238
Additions for tax positions from prior years		517			79
Reductions for tax positions from prior years		(391	)		(236	)
Settlement payments		(30	)		(64	)
Statute of limitations expiration		(7	)		(4	)
Translation and other		(2	)		7

Balance, end of year	$	2,022	^(a)	$	1,731

Parent Company [Member]

Income Taxes


	2010		2009			2008
Deferred taxes included within:
Assets:
Prepaid expenses and other current assets	$	554	$	391
Other assets		—		—
Liabilities:
Deferred income taxes	$	4,057	$	659
*Analysis of valuation allowances*
Balance, beginning of year	$	586	$	657		$	695
Provision/(Benefit)		75		(78	)		(5	)
Other additions/(deductions)		214		7			(33	)

Balance, end of year	$	875	$	586		$	657

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 25, 2010

Table of Weighted-Average Black-Scholes Fair Value Assumptions


	2010			2009			2008
Expected life		5 yrs.			6 yrs.			6 yrs.
Risk free interest rate		2.3	%		2.8	%		3.0	%
Expected volatility		17	%		17	%		16	%
Expected dividend yield		2.8	%		3.0	%		1.9	%

Stock-Based Compensation Activity


	Options^(a)			Average Price^(b)		Average Life (years)^(c)		Aggregate Intrinsic Value^(d)
Outstanding at December 26, 2009		106,011		$	51.68
Granted		26,858			54.09
Exercised		(23,940	)		43.47
Forfeited/expired		(2,726	)		55.85

Outstanding at December 25, 2010		106,203		$	54.03		5.19	$	1,281,596


Exercisable at December 25, 2010		67,304		$	50.26		3.44	$	1,040,510

(a)	Options are in thousands and include options previously granted under PBG, PAS and Quaker plans. No additional options or shares may be granted under the PBG, PAS and Quaker plans.

(b)	Weighted-average exercise price.

(c)	Weighted-average contractual life remaining.

(d)	In thousands.

RSU Activity


	RSUs^(a)			Average Intrinsic Value^(b)		Average Life (years)^(c)		Aggregate Intrinsic Value^(d)
Outstanding at December 26, 2009		6,092		$	60.98
Granted		8,326			65.01
Converted		(3,183	)		63.58
Forfeited/expired		(573	)		62.50

Outstanding at December 25, 2010		10,662		$	63.27		1.69	$	700,397

(a)	RSUs are in thousands and include RSUs previously granted under a PBG plan. No additional RSUs or shares may be granted under the PBG plan.

(b)	Weighted-average intrinsic value at grant date.

(c)	Weighted-average contractual life remaining.

(d)	In thousands.

Other Stock-Based Compensation Data


	2010		2009		2008
*Stock Options*
Weighted-average fair value of options granted	$	13.93	$	7.02	$	11.24
Total intrinsic value of options exercised^(a)	$	502,354	$	194,545	$	410,152

*RSUs*
Total number of RSUs granted^(a)		8,326		2,653		2,135
Weighted-average intrinsic value of RSUs granted	$	65.01	$	53.22	$	68.73
Total intrinsic value of RSUs converted^(a)	$	202,717	$	124,193	$	180,563

(a)	In thousands.

Pension, Retiree Medical and Savings Plans (Tables)

12 Months Ended

Dec. 25, 2010

Selected financial information for pension and retiree medical plans


	Pension												Retiree Medical
	2010			2009			2010			2009			2010			2009
	U.S.						International
*Change in projected benefit liability*
Liability at beginning of year	$	6,606		$	6,217		$	1,709		$	1,270		$	1,359		$	1,370
Acquisitions		2,161			—			90			—			396			—
Service cost		299			238			81			54			54			44
Interest cost		506			373			106			82			93			82
Plan amendments		28			—			—			—			(132	)		—
Participant contributions		—			—			3			10			—			—
Experience loss/(gain)		583			70			213			221			95			(63	)
Benefit payments		(375	)		(296	)		(69	)		(50	)		(100	)		(80	)
Settlement/curtailment gain		(2	)		—			(3	)		(8	)		—			—
Special termination benefits		45			—			3			—			3			—
Foreign currency adjustment		—			—			(18	)		130			2			6
Other		—			4			27			—			—			—

Liability at end of year	$	9,851		$	6,606		$	2,142		$	1,709		$	1,770		$	1,359

*Change in fair value of plan assets*
Fair value at beginning of year	$	5,420		$	3,974		$	1,561		$	1,165		$	13		$	—
Acquisitions		1,633			—			52			—			—			—
Actual return on plan assets		943			697			164			159			7			2
Employer contributions/funding		1,249			1,041			215			167			270			91
Participant contributions		—			—			3			10			—			—
Benefit payments		(375	)		(296	)		(69	)		(50	)		(100	)		(80	)
Settlement		—			—			(2	)		(8	)		—			—
Foreign currency adjustment		—			—			(28	)		118			—			—
Other		—			4			—			—			—			—

Fair value at end of year	$	8,870		$	5,420		$	1,896		$	1,561		$	190		$	13

Funded status	$	(981	)	$	(1,186	)	$	(246	)	$	(148	)	$	(1,580	)	$	(1,346	)

	Pension												Retiree Medical
	2010			2009			2010			2009			2010			2009
	U.S.						International
*Amounts recognized*
Other assets	$	47		$	—		$	66		$	50		$	—		$	—
Other current liabilities		(54	)		(36	)		(10	)		(1	)		(145	)		(105	)
Other liabilities		(974	)		(1,150	)		(302	)		(197	)		(1,435	)		(1,241	)

Net amount recognized	$	(981	)	$	(1,186	)	$	(246	)	$	(148	)	$	(1,580	)	$	(1,346	)

*Amounts included in accumulated other comprehensive loss (pre-tax)*
Net loss	$	2,726		$	2,563		$	767		$	625		$	270		$	190
Prior service cost/(credit)		117			101			17			20			(150	)		(102	)

Total	$	2,843		$	2,664		$	784		$	645		$	120		$	88

*Components of the increase/(decrease) in net loss*
Change in discount rate	$	556		$	47		$	213		$	97		$	101		$	11
Employee-related assumption changes		4			—			(4	)		70			8			(38	)
Liability-related experience different from assumptions		43			23			5			51			(22	)		(36	)
Actual asset return different from expected return		(300	)		(235	)		(41	)		(54	)		(6	)		(2	)
Amortization of losses		(119	)		(111	)		(24	)		(9	)		(9	)		(11	)
Other, including foreign currency adjustments		(21	)		13			(7	)		49			8			—

Total	$	163		$	(263	)	$	142		$	204		$	80		$	(76	)

Liability at end of year for service to date	$	9,163		$	5,784		$	1,743		$	1,414

Estimated amounts to be amortized from accumulated other comprehensive loss into benefit expense in 2011 for pension and retiree medical plans


	Pension				Retiree Medical
	U.S.		International
Net loss	$	144	$	39	$	12
Prior service cost/(credit)		15		2		(28	)

Total	$	159	$	41	$	(16	)

Weighted average assumptions to determine projected benefit liability and benefit expense for pension and retiree medical plans


	Pension																		Retiree Medical
	2010			2009			2008			2010			2009			2008			2010			2009			2008
	U.S.									International
*Weighted-average assumptions*
Liability discount rate		5.7	%		6.1	%		6.2	%		5.5	%		5.9	%		6.3	%		5.2	%		6.1	%		6.2	%
Expense discount rate		6.0	%		6.2	%		6.5	%		6.0	%		6.3	%		5.6	%		5.8	%		6.2	%		6.5	%
Expected return on plan assets		7.8	%		7.8	%		7.8	%		7.1	%		7.1	%		7.2	%		7.8	%
Liability rate of salary increases		4.1	%		4.4	%		4.4	%		4.1	%		4.1	%		4.1	%
Expense rate of salary increases		4.4	%		4.4	%		4.6	%		4.1	%		4.2	%		3.9	%

Selected information about plans with liability for service to date and total benefit liability in excess of plan assets


	Pension												Retiree Medical
	2010			2009			2010			2009			2010			2009
	U.S.						International
*Selected information for plans with liability for service to date in excess of plan assets*
Liability for service to date	$	(525	)	$	(2,695	)	$	(610	)	$	(342	)
Fair value of plan assets	$	—		$	2,220		$	474		$	309
*Selected information for plans with projected benefit liability in excess of plan assets*
Benefit liability	$	(5,806	)	$	(6,603	)	$	(1,949	)	$	(1,566	)	$	(1,770	)	$	(1,359	)
Fair value of plan assets	$	4,778		$	5,417		$	1,638		$	1,368		$	190		$	13

Estimated future benefit payments


	2011		2012		2013		2014		2015		2016-20
Pension	$	480	$	500	$	520	$	560	$	595	$	3,770
Retiree medical^(a)	$	155	$	155	$	160	$	165	$	170	$	875

(a)

Categorized plan assets measured at fair value


	2010*								2009
	Total		Level 1		Level 2		Level 3		Total
*U.S. plan assets*
Equity securities:
PepsiCo common stock^(a)	$	—	$	—	$	—	$	—	$	332
U.S. common stock^(a)		304		304		—		—		229
U.S. commingled funds^(b)		3,426		—		3,426		—		1,387
International common stock^(a)		834		834		—		—		700
International commingled fund^(c)		992		—		992		—		114
Preferred stock^(d)		4		—		4		—		4
Fixed income securities:
Government securities^(d)		950		—		950		—		741
Corporate bonds^(d)		2,374		—		2,374		—		1,214
Mortgage-backed securities^(d)		20		—		20		—		201
Other:
Contracts with insurance companies^(f)		28		—		—		28		9
Cash and cash equivalents		81		81		—		—		457

Sub-total U.S. plan assets		9,013	$	1,219	$	7,766	$	28		5,388

Dividends and interest receivable		47								32

Total U.S. plan assets	$	9,060							$	5,420


*International plan assets*
Equity securities:
U.S. commingled funds^(b)	$	193	$	—	$	193	$	—	$	180
International commingled funds^(c)		779		—		779		—		661
Fixed income securities:
Government securities^(d)		184		—		184		—		139
Corporate bonds^(d)		152		—		152		—		128
Fixed income commingled funds^(e)		393		—		393		—		363
Other:
Contracts with insurance companies^(f)		28		—		—		28		29
Currency commingled funds^(g)		42		—		42		—		44
Cash and cash equivalents		120		120		—		—		17

Sub-total international plan assets		1,891	$	120	$	1,743	$	28		1,561

Dividends and interest receivable		5								—

Total international plan assets	$	1,896							$	1,561

(a)	Based on quoted market prices in active markets.

(b)	Based on the fair value of the investments owned by these funds that track various U.S. large, mid-cap and small company indices. Includes one large-cap fund that represents 32% and 25%, respectively, of total U.S. plan assets for 2010 and 2009.

(c)	Based on the fair value of the investments owned by these funds that track various non-U.S. equity indices.

(d)	Based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes that are not observable. Corporate bonds of U.S.-based companies represent 22% and 18%, respectively, of total U.S. plan assets for 2010 and 2009.

(e)	Based on the fair value of the investments owned by these funds that track various government and corporate bond indices.

(f)	Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable.

(g)	Based on the fair value of the investments owned by these funds. Includes managed hedge funds that invest primarily in derivatives to reduce currency exposure.

*	2010 amounts include $190 million of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.

Effects of one percentage point change in the assumed health care trend rate


	1% Increase		1% Decrease
2010 service and interest cost components	$	5	$	(4	)
2010 benefit liability	$	42	$	(50	)

Components of Benefit Expense [Member]

Selected financial information for pension and retiree medical plans


	Pension																		Retiree Medical
	2010			2009			2008			2010			2009			2008			2010			2009			2008
	U.S.									International
*Components of benefit expense*
Service cost	$	299		$	238		$	244		$	81		$	54		$	61		$	54		$	44		$	45
Interest cost		506			373			371			106			82			88			93			82			82
Expected return on plan assets		(643	)		(462	)		(416	)		(123	)		(105	)		(112	)		(1	)		—			—
Amortization of prior service cost/(credit)		12			12			19			2			2			3			(22	)		(17	)		(13	)
Amortization of net loss		119			110			55			24			9			19			9			11			7

		293			271			273			90			42			59			133			120			121
Settlement/curtailment (gain)/loss		(2	)		(13	)		3			1			3			3			(62	)		—			—
Special termination benefits		45			—			31			3			—			2			3			—			3

Total	$	336		$	258		$	307		$	94		$	45		$	64		$	74		$	120		$	124

Noncontrolled Bottling Affiliates (Tables)

12 Months Ended

Dec. 25, 2010

Summarized Financial Information

PBG's summarized financial information is as follows:


	2009		2008
Current assets	$	3,412
Noncurrent assets		10,158

Total assets	$	13,570

Current liabilities	$	1,965
Noncurrent liabilities		7,896

Total liabilities	$	9,861

Our investment	$	1,775

Net revenue	$	13,219	$	13,796
Gross profit	$	5,840	$	6,210
Operating income	$	1,048	$	649
Net income attributable to PBG	$	612	$	162

PAS summarized financial information is as follows:


	2009		2008
Current assets	$	952
Noncurrent assets		4,141

Total assets	$	5,093

Current liabilities	$	669
Noncurrent liabilities		2,493

Total liabilities	$	3,162

Our investment	$	1,071

Net revenue	$	4,421	$	4,937
Gross profit	$	1,767	$	1,982
Operating income	$	381	$	473
Net income attributable to PAS	$	181	$	226

Related Party Transactions


	2010^(a)		2009		2008
Net revenue	$	993	$	3,922	$	4,049
Cost of sales	$	116	$	634	$	660
Selling, general and administrative expenses	$	6	$	24	$	30
Accounts and notes receivable	$	27	$	254	$	248
Accounts payable and other liabilities	$	42	$	285	$	198

(a)	Includes transactions with PBG and PAS in 2010 prior to the date of acquisition. 2010 balance sheet information for PBG and PAS is not applicable as we consolidated their balance sheets at the date of acquisition.

Schedule Of Long And Short-term Debt Contractual Commitments

This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

Debt Obligations and Commitments (Tables)

12 Months Ended

Dec. 25, 2010


	2010			2009
*Short-term debt obligations*
Current maturities of long-term debt	$	113		$	102
Commercial paper (0.2%)		2,632			—
Notes due 2011 (4.4%)		1,513			—
Other borrowings (5.3% and 6.7%)		640			362

	$	4,898		$	464

*Long-term debt obligations*
Notes due 2012 (3.1% and 1.9%)	$	2,437		$	1,079
Notes due 2013 (3.0% and 3.7%)		2,110			999
Notes due 2014 (5.3% and 4.0%)		2,888			1,026
Notes due 2015 (2.6%)		1,617			—
Notes due 2016-2040 (4.9% and 5.4%)		10,828			4,056
Zero coupon notes, due 2011-2012 (13.3%)		136			192
Other, due 2011-2019 (4.8% and 8.4%)		96			150

		20,112			7,502
Less: current maturities of long-term debt obligations		(113	)		(102	)

	$	19,999		$	7,400

Long-term Contractual Commitments


	Payments Due by Period
	Total		2011		2012 – 2013		2014 – 2015		2016 and beyond
Long-term debt obligations^(b)	$	19,337	$	—	$	4,569	$	4,322	$	10,446
Interest on debt obligations^(c)		7,746		809		1,480		1,075		4,382
Operating leases		1,676		390		543		320		423
Purchasing commitments		2,433		765		1,159		481		28
Marketing commitments		824		294		268		151		111

	$	32,016	$	2,258	$	8,019	$	6,349	$	15,390

(a)	Reflects non-cancelable commitments as of December 25, 2010 based on year-end foreign exchange rates and excludes any reserves for uncertain tax positions as we are unable to reasonably predict the ultimate amount or timing of settlement.

(b)	Excludes $662 million related to the fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS, as well as $113 million related to current maturities of long-term debt.

(c)	Interest payments on floating-rate debt are estimated using interest rates effective as of December 25, 2010.

Financial Instruments (Tables)

12 Months Ended

Dec. 25, 2010

Fair Value Of Financial Instruments


	2010				2009
	Assets^(a)		Liabilities^(a)		Assets^(a)		Liabilities^(a)
Available-for-sale securities^(b)	$	636	$	—	$	71	$	—
Short-term investments – index funds^(c)	$	167	$	—	$	120	$	—
Deferred compensation^(d)	$	—	$	559	$	—	$	461
Derivatives designated as hedging instruments:
Forward exchange contracts^(e)	$	8	$	23	$	11	$	31
Interest rate derivatives^(f)		284		12		177		43
Commodity contracts – other^(g)		70		2		8		5
Commodity contracts – futures^(h)		1		23		—		32

	$	363	$	60	$	196	$	111
Derivatives not designated as hedging instruments:
Forward exchange contracts^(e)	$	1	$	7	$	4	$	2
Interest rate derivatives^(f)		6		45		—		—
Commodity contracts – other^(g)		28		1		7		60
Commodity contracts – futures^(h)		—		1		—		3
Prepaid forward contracts⁽ⁱ⁾		48		—		46		—

	$	83	$	54	$	57	$	65

Total derivatives at fair value	$	446	$	114	$	253	$	176

Total	$	1,249	$	673	$	444	$	637

Effective Portion of Pre-tax (gains)/losses on Derivative Instruments


	Fair Value/Non- designated Hedges						Cash Flow Hedges
	Losses/(Gains) Recognized in Income Statement^(a)						Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss						Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement^(b)
	2010			2009			2010			2009			2010		2009
Forward exchange contracts	$	6		$	(29	)	$	26		$	75		$	40	$	(64	)
Interest rate derivatives		(104	)		206			75			32			7		—
Prepaid forward contracts		(4	)		(5	)		—			—			—		—
Commodity contracts		(30	)		(274	)		(32	)		(1	)		28		90

Total	$	(132	)	$	(102	)	$	69		$	106		$	75		26

Net Income Attributable to PepsiCo per Common Share (Tables)

12 Months Ended

Dec. 25, 2010

Schedule of Basic and Diluted Earnings Per Share


	2010					2009					2008
	Income			Shares^(a)		Income			Shares^(a)		Income			Shares^(a)
Net income attributable to PepsiCo	$	6,320				$	5,946				$	5,142
Preferred shares:
Dividends		(1	)				(1	)				(2	)
Redemption premium		(5	)				(5	)				(6	)

Net income available for PepsiCo common shareholders	$	6,314			1,590	$	5,940			1,558	$	5,134			1,573


Basic net income attributable to PepsiCo per common share	$	3.97				$	3.81				$	3.26

Net income available for PepsiCo common shareholders	$	6,314			1,590	$	5,940			1,558	$	5,134			1,573
Dilutive securities:
Stock options and RSUs		—			23		—			17		—			27
ESOP convertible preferred stock		6			1		6			2		8			2

Diluted	$	6,320			1,614	$	5,946			1,577	$	5,142			1,602

Diluted net income attributable to PepsiCo per common share	$	3.91				$	3.77				$	3.21

(a)	Weighted-average common shares outstanding (in millions).

Accumulated Other Comprehensive Loss Attributable to PepsiCo (Tables)

12 Months Ended

Dec. 25, 2010

Accumulated balances for each component of other comprehensive loss attributable to PepsiCo


	2010			2009			2008
Currency translation adjustment	$	(1,159	)	$	(1,471	)	$	(2,271	)
Cash flow hedges, net of tax^(a)		(100	)		(42	)		(14	)
Unamortized pension and retiree medical, net of tax^(b)		(2,442	)		(2,328	)		(2,435	)
Unrealized gain on securities, net of tax		70			47			28
Other		1			—			(2	)

Accumulated other comprehensive loss attributable to PepsiCo	$	(3,630	)	$	(3,794	)	$	(4,694	)

(a)	Includes $23 million after-tax gain in 2009 and $17 million after-tax loss in 2008 for our share of our equity investees' accumulated derivative activity.

(b)	Net of taxes of $1,322 million in 2010, $1,211 million in 2009 and $1,288 million in 2008. Includes $51 million decrease to the opening balance of accumulated other comprehensive loss attributable to PepsiCo in 2008 due to a change in measurement date for our pension and retiree medical plans.

Supplemental Financial Information (Tables)

12 Months Ended

Dec. 25, 2010

Schedule of supplemental balance sheet information


	2010			2009			2008
*Accounts receivable*
Trade receivables	$	5,514		$	4,026
Other receivables		953			688

		6,467			4,714

Allowance, beginning of year		90			70		$	69
Net amounts charged to expense		12			40			21
Deductions ^(a)		(37	)		(21	)		(16	)
Other ^(b)		79			1			(4	)

Allowance, end of year		144			90		$	70

Net receivables	$	6,323		$	4,624

*Inventories* ^(c)
Raw materials	$	1,654		$	1,274
Work-in-process		128			165
Finished goods		1,590			1,179

	$	3,372		$	2,618

(a) Includes accounts written off. (b) Includes adjustments related to our acquisitions of PBG and PAS, currency translation effects and other adjustments. (c) Inventories are valued at the lower of cost or market. Cost is determined using the average, first-in, first-out (FIFO) or last-in, first-out (LIFO) methods. Approximately 8% in 2010 and 10% in 2009 of the inventory cost was computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material.
	2010			2009
*Other assets*
Noncurrent notes and accounts receivable	$	165		$	118
Deferred marketplace spending		203			182
Unallocated purchase price for recent acquisitions		—			143
Pension plans		121			64
Other investments ^(a)		653			89
Other		547			369

	$	1,689		$	965

*Accounts payable and other current liabilities*
Accounts payable	$	3,865		$	2,881
Accrued marketplace spending		1,841			1,656
Accrued compensation and benefits		1,779			1,291
Dividends payable		766			706
Other current liabilities		2,672			1,593

	$	10,923		$	8,127

(a)	In 2010, includes our investment in WBD of $549 million. This investment is accounted for as an available-for-sale security with any unrealized gains or losses recorded in other comprehensive income.

Other supplemental information


	2010			2009			2008
*Other supplemental information*
Rent expense	$	526		$	412		$	357
Interest paid	$	1,043		$	456		$	359
Income taxes paid, net of refunds	$	1,495		$	1,498		$	1,477
Acquisitions^(a)
Fair value of assets acquired	$	27,665		$	851		$	2,907
Cash paid, net of cash acquired		(3,044	)		(466	)		(1,925	)
Equity issued		(4,451	)		—			—
Previously held equity interests in PBG and PAS		(4,293	)		—			—

Liabilities and noncontrolling interests assumed	$	15,877		$	385		$	982

(a)	In 2010, amounts primarily reflect our acquisitions of PBG and PAS. During 2008, together with PBG, we jointly acquired Lebedyansky, for a total purchase price of $1.8 billion.

Acquisitions (Tables)

12 Months Ended

Dec. 25, 2010

Computation Of Purchase Price

	Total Number of Shares/Awards Issued		Total Fair Value
Payment in cash, for the remaining (not owned by PepsiCo and its subsidiaries) outstanding shares of PBG and PAS common stock and equity awards vested at consummation of merger		—	$	3,813
Payment to PBG and PAS of shares of PepsiCo common stock for the remaining (not owned by PepsiCo and its subsidiaries) outstanding shares of PBG and PAS common stock and equity awards vested at consummation of merger		67		4,175
Issuance of PepsiCo equity awards (vested and unvested) to replace existing PBG and PAS equity awards		16		276

Total purchase price		83	$	8,264

Fair Value Of Identifiable Assets Acquired And Liabilities Assumed

	Acquisition Date Fair Value
Inventory	$	1,006
Property, plant and equipment		5,574
Amortizable intangible assets		1,298
Nonamortizable intangible assets, primarily reacquired franchise rights		9,036
Other current assets and current liabilities^(a)		751
Other noncurrent assets		281
Debt obligations		(8,814	)
Pension and retiree medical benefits		(962	)
Other noncurrent liabilities		(744	)
Deferred income taxes		(3,246	)

Total identifiable net assets		4,180
Goodwill		8,059

Subtotal		12,239
Fair value of acquisition of noncontrolling interest		317

Total purchase price	$	12,556

(a)	Includes cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and other current liabilities.

Business Acquisition, Pro Forma Information

	2010		2009
Net Revenue	$	59,582	$	57,471
Net Income Attributable to PepsiCo	$	5,856	$	6,752
Net Income Attributable to PepsiCo per Common Share – Diluted	$	3.60	$	4.09

Basis of Presentation and Our Divisions (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 20, 2010	Dec. 25, 2010
Ownership percentage		50.00%
Gain on previously held equity interests in PBG and PAS	$ 958	$ 958
Non-taxable portion of gain on previously held equity investments bottling equity income	735
Reversal of deferred tax liability associated with previously held equity interests	$ 223
Manufacture and sell in (number of countries)		200
FLNA [Member]
Stock Based Compensation Percentage		17.00%
QFNA [Member]
Stock Based Compensation Percentage		2.00%
LAF [Member]
Stock Based Compensation Percentage		5.00%
PAB [Member]
Stock Based Compensation Percentage		32.00%
Europe [Member]
Stock Based Compensation Percentage		11.00%
AMEA [Member]
Stock Based Compensation Percentage		8.00%
Corporate Unallocated [Member]
Stock Based Compensation Percentage		25.00%

Basis of Presentation and Our Divisions (Net Revenue and Operating Profit by Division) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

$ 57,838

^[1]

$ 43,232

^[1]

$ 43,251

^[1]

8,332

^[2]

8,044

^[2]

6,959

^[2]

FLNA [Member]

13,397

13,224

12,507

3,549

^[2]

3,258

^[2]

2,959

^[2]

23.00%

37.00%

QFNA [Member]

1,832

1,884

1,902

568

^[2]

628

^[2]

582

^[2]

3.00%

6.00%

LAF [Member]

6,315

5,703

5,895

1,004

^[2]

904

^[2]

897

^[2]

11.00%

10.00%

PAB [Member]

20,401

^[3]

10,116

^[3]

10,937

^[3]

2,776

^[2],[3]

2,172

^[2],[3]

2,026

^[2],[3]

35.00%

29.00%

Europe [Member]

9,254

^[3]

6,727

^[3]

6,891

^[3]

1,020

^[2],[3]

932

^[2],[3]

910

^[2],[3]

16.00%

10.00%

AMEA [Member]

6,639

5,578

5,119

742

^[2]

716

^[2]

592

^[2]

12.00%

8.00%

Total Division [Member]

57,838

43,232

43,251

9,659

^[2]

8,610

^[2]

7,966

^[2]

Corporate Unallocated Net Impact Of Mark-To-Market On Commodity Hedges [Member]

^[2]

274

^[2]

(346)

^[2]

Merger and Intergration Costs [Member]

(191)

^[2]

(49)

^[2]

Corporate Unallocated Restructuring and Impairment Charges [Member]

^[2]

(10)

^[2]

Corporate Unallocated Venezuela Currency Devaluation [Member]

(129)

^[2]

Corporate Unallocated Asset Write-Off [Member]

(145)

^[2]

Corporate Unallocated Foundation Contribution [Member]

(100)

^[2]

Corporate Unallocated Other [Member]

$ (853)

^[2]

$ (791)

^[2]

$ (651)

^[2]

[1]	Represents net revenue from businesses operating in these countries.
[2]	For information on the impact of restructuring, impairment and integration charges on our divisions, see Note 3.
[3]	Changes in 2010 relate primarily to our acquisitions of PBG and PAS.

Basis of Presentation and Our Divisions (Total Assets and Capital Spending by Division) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

$ 68,153

$ 39,848

$ 35,994

3,253

2,128

2,446

FLNA [Member]

6,284

6,337

6,284

526

490

553

9.00%

16.00%

QFNA [Member]

960

997

1,035

1.00%

1.00%

LAF [Member]

4,053

3,575

3,023

370

310

351

6.00%

11.00%

PAB [Member]

31,622

^[1]

7,670

^[1]

7,673

^[1]

973

^[1]

182

^[1]

344

^[1]

46.00%

30.00%

Europe [Member]

12,853

^[1]

9,321

^[1]

8,840

^[1]

503

^[1]

357

^[1]

401

^[1]

19.00%

16.00%

AMEA [Member]

5,748

4,937

3,756

624

585

479

8.00%

19.00%

Total Division [Member]

61,520

32,837

30,611

3,033

1,957

2,171

Corporate [Member]

6,394

^[2]

3,933

^[2]

2,729

^[2]

220

^[2]

171

^[2]

275

^[2]

7.00%

Investments In Bottling Affiliates [Member]

$ 239

^[1]

$ 3,078

^[1]

$ 2,654

^[1]

Corporate Unallocated Other [Member]

Amortization of intangible assets

11.00%

[1]	Changes in total assets in 2010 relate primarily to our acquisitions of PBG and PAS.
[2]	Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments and property, plant and equipment.

Basis of Presentation and Our Divisions (Amortization of Intangible Assets and Depreciation and Other Amortization) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

$ 117

$ 63

$ 64

2,210

1,572

1,479

FLNA [Member]

462

440

441

QFNA [Member]

LAF [Member]

213

189

194

PAB [Member]

^[1]

749

^[1]

345

^[1]

334

^[1]

Europe [Member]

^[1]

343

^[1]

227

^[1]

210

^[1]

AMEA [Member]

306

248

213

Total Division [Member]

117

2,111

1,485

1,426

Corporate [Member]

$ 99

$ 87

$ 53

[1]	Increases in 2010 relate primarily to our acquisitions of PBG and PAS.

Basis of Presentation and Our Divisions (Net Revenue and Long-Lived Assets) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

$ 57,838

^[1]

$ 43,232

^[1]

$ 43,251

^[1]

Long Lived Assets

48,895

^[2]

26,312

^[2]

22,530

^[2]

United States [Member]

30,618

^[1],[3]

22,446

^[1],[3]

22,525

^[1],[3]

28,631

^[2],[3]

12,496

^[2],[3]

12,095

^[2],[3]

53.00%

59.00%

Mexico [Member]

4,531

^[1],[3]

3,210

^[1],[3]

3,714

^[1],[3]

1,671

^[2],[3]

1,044

^[2],[3]

904

^[2],[3]

8.00%

3.00%

Canada [Member]

3,081

^[1],[3]

1,996

^[1],[3]

2,107

^[1],[3]

3,133

^[2],[3]

688

^[2],[3]

556

^[2],[3]

5.00%

6.00%

Russia [Member]

1,890

^[1],[3]

1,006

^[1],[3]

585

^[1],[3]

2,744

^[2],[3]

2,094

^[2],[3]

577

^[2],[3]

3.00%

6.00%

United Kingdom [Member]

1,888

^[1]

1,826

^[1]

2,099

^[1]

1,019

^[2]

1,358

^[2]

1,509

^[2]

3.00%

2.00%

All Other Countries [Member]

15,830

^[1],[3]

12,748

^[1],[3]

12,221

^[1],[3]

$ 11,697

^[2],[3]

$ 8,632

^[2],[3]

$ 6,889

^[2],[3]

28.00%

24.00%

[1]	Represents net revenue from businesses operating in these countries.
[2]	Long-lived assets represent property, plant and equipment, nonamortizable intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used.
[3]	Increases in 2010 relate primarily to our acquisitions of PBG and PAS.

Our Significant Accounting Policies (Narrative) (Details) (USD $)	3 Months Ended	12 Months Ended
	Jun. 12, 2010	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Concentration of credit risk by our customers		12.00%
Sales incentives and discounts accounted for as a reduction of revenue		$ 29,100,000,000	$ 12,900,000,000	$ 12,500,000,000
Incentive arrangements		296,000,000	296,000,000
Advertising and other marketing activities		3,400,000,000	2,800,000,000	2,900,000,000
Advertising expenses		1,900,000,000	1,700,000,000	1,700,000,000
Deferred advertising costs		158,000,000	143,000,000
Shipping and handling expenses		7,700,000,000	5,600,000,000	5,600,000,000
Software amortization		137,000,000	119,000,000	58,000,000
Net capitalized software and development costs		1,100,000,000	1,100,000,000
Research and development costs		488,000,000	414,000,000	388,000,000
One-time related tax charge	$ 41,000,000
Software [Member]
Software estimated useful lives minimum		5
Software estimated useful lives maximum		10

Restructuring, Impairment and Integration Charges (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Merger and integration costs	$ 808	$ 50
Merger and integration charges, after-tax impact per share	$ 0.40	$ 0.02	$ 0.25
Merger and integration charges recorded within corporate unallocated expenses	191
Restructuring and impairment charges		36	543
Interest Expense	903	397	329
Selling, general and administrative expenses	22,814	15,026	15,877
Number of employees terminated	2,370	410	3,500
Bottling Equity Income [Member]
Merger and integration costs	9
PBG PAS and WBD Acquistions [Member]
Merger and integration costs	799
Merger and integration charges, after-tax impact	648
Interest Expense	30
PAB [Member]
Merger and integration costs	467
Europe [Member]
Merger and integration costs	111
Productivity for Growth Program [Member]
Restructuring and impairment charges, after tax		29	408
Selling, general and administrative expenses			$ 455

Restructuring, Impairment and Integration Charges (Merger and Integration Activity) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

$ (385)

$ (49)

Number of employees terminated

(808)

(50)

2,370

410

3,500

Asset Impairment [Member]

132

(132)

Severance and Other Employee Costs [Member]

396

^[1]

(114)

^[1]

Liability as of December 25, 2010

(103)

^[1]

179

^[1]

Other Costs [Member]

280

(271)

Liability as of December 25, 2010

Total [Member]

808

(385)

Liability as of December 25, 2010

(219)

$ 204

[1]	Primarily reflects termination costs for approximately 2,370 employees.

Restructuring, Impairment and Integration Charges (Restructuring and Impairment Charges) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 26, 2009

Dec. 27, 2008

Dec. 25, 2010

Number of employees terminated

$ 36

$ 543

410

3,500

2,370

Severance and Other Employee Costs [Member]

^[1]

212

Asset Impairment [Member]

149

Other Costs [Member]

182

Total [Member]

543

FLNA [Member] | Severance and Other Employee Costs [Member]

FLNA [Member] | Asset Impairment [Member]

FLNA [Member] | Other Costs [Member]

FLNA [Member] | Total [Member]

108

QFNA [Member] | Severance and Other Employee Costs [Member]

QFNA [Member] | Asset Impairment [Member]

QFNA [Member] | Other Costs [Member]

QFNA [Member] | Total [Member]

LAF [Member] | Severance and Other Employee Costs [Member]

^[1]

LAF [Member] | Asset Impairment [Member]

LAF [Member] | Other Costs [Member]

LAF [Member] | Total [Member]

PAB [Member] | Severance and Other Employee Costs [Member]

^[1]

PAB [Member] | Asset Impairment [Member]

PAB [Member] | Other Costs [Member]

129

PAB [Member] | Total [Member]

289

Europe [Member] | Severance and Other Employee Costs [Member]

^[1]

Europe [Member] | Asset Impairment [Member]

Europe [Member] | Other Costs [Member]

Europe [Member] | Total [Member]

AMEA [Member] | Severance and Other Employee Costs [Member]

^[1]

AMEA [Member] | Asset Impairment [Member]

AMEA [Member] | Other Costs [Member]

AMEA [Member] | Total [Member]

Corporate [Member] | Severance and Other Employee Costs [Member]

Corporate [Member] | Other Costs [Member]

Corporate [Member] | Total [Member]

$ 10

[1]	Primarily reflects termination costs for approximately 410 employees.

Restructuring, Impairment and Integration Charges (Productivity for Growth Program Activity) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

$ 36

$ 543

(3)

Severance and Other Employee Costs [Member]

^[1]

212

(2)

Asset Impairment [Member]

149

Other Costs [Member]

182

(1)

Total [Member]

543

Productivity for Growth Program [Member]

543

Cash payments

(31)

(196)

(159)

(185)

(1)

Liability

198

Productivity for Growth Program [Member] | Severance and Other Employee Costs [Member]

212

Cash payments

(6)

(128)

(50)

(27)

(14)

Liability

134

Productivity for Growth Program [Member] | Asset Impairment [Member]

149

(149)

(12)

Productivity for Growth Program [Member] | Other Costs [Member]

182

Cash payments

(25)

(68)

(109)

(9)

Balance, beginning of year

(1)

Liability

$ 1

$ 28

$ 64

[1]	Primarily reflects termination costs for approximately 410 employees.

Property, Plant and Equipment and Intangible Assets (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010
2011	$ 121
2012	114
2013	106
2014	89
2015	$ 81

Property, Plant and Equipment and Intangible Assets (Property, Plant and Equipment and Intangible Assets) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Property, plant and equipment, gross	$ 33,041	$ 24,912
Accumulated depreciation	(13,983)	(12,241)
Property, Plant and Equipment, net	19,058	12,671
Depreciation expense	2,124	1,500	1,422
Amortizable of intangible assets, gross	3,269	1,970
Accumulated amortization	(1,244)	(1,129)
Amortizable of intangible assets, net	2,025	841
Amortization expense	117	63	64
Acquired Franchise Rights [Member]
Amortizable of intangible assets, gross	949
Amortizable intangible assets life minimum	56
Amortizable intangible assets life maximum	60
Reacquired Franchise Rights [Member]
Amortizable of intangible assets, gross	110
Amortizable intangible assets life minimum	1
Amortizable intangible assets life maximum	14
Brands [Member]
Amortizable of intangible assets, gross	1,463	1,465
Amortizable intangible assets life minimum	5
Amortizable intangible assets life maximum	40
Other Identifiable Intangibles [Member]
Amortizable of intangible assets, gross	747	505
Amortizable intangible assets life minimum	10
Amortizable intangible assets life maximum	24
Land and Improvements [Member]
Property, plant and equipment, gross	1,976	1,208
Property, plant and equipment life minimum	10
Property, plant and equipment life maximum	34
Building and Improvements [Member]
Property, plant and equipment, gross	7,054	5,080
Property, plant and equipment life minimum	15
Property, plant and equipment life maximum	44
Machinery and Equipment [Member]
Property, plant and equipment, gross	22,091	17,183
Property, plant and equipment life minimum	5
Property, plant and equipment life maximum	15
Construction in Progress [Member]
Property, plant and equipment, gross	$ 1,920	$ 1,441

Property, Plant and Equipment and Intangible Assets (Change in Book Value of Nonamortizable Assets) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009
Balance Beginning	$ 8,316	$ 6,252
Acquisitions	17,296	2,027
Translation and Other	832	37
Balance End	26,444	8,316
FLNA [Member]
Balance Beginning	336	277
Acquisitions		32
Translation and Other	8	27
Balance End	344	336
LAF [Member]
Balance Beginning	615	551
Acquisitions		18
Translation and Other	25	46
Balance End	640	615
PAB [Member]
Balance Beginning	2,543	2,414
Acquisitions	15,441	110
Translation and Other	1,002	19
Balance End	18,986	2,543
Europe [Member]
Balance Beginning	4,002	2,313
Acquisitions	1,713	1,863
Translation and Other	(276)	(174)
Balance End	5,439	4,002
AMEA [Member]
Balance Beginning	645	522
Acquisitions	142	4
Translation and Other	73	119
Balance End	860	645
Goodwill [Member]
Balance Beginning	6,534	5,124
Acquisitions	8,175	1,380
Translation and Other	(48)	30
Balance End	14,661	6,534
Goodwill [Member] \| FLNA [Member]
Balance Beginning	306	277
Acquisitions		6
Translation and Other	7	23
Balance End	313	306
Goodwill [Member] \| QFNA [Member]
Balance Beginning		175
Acquisitions
Balance End	175	175
Goodwill [Member] \| LAF [Member]
Balance Beginning	479	424
Acquisitions		17
Translation and Other	18	38
Balance End	497	479
Goodwill [Member] \| PAB [Member]
Balance Beginning	2,431	2,355
Acquisitions	7,476	62
Translation and Other	39	14
Balance End	9,946	2,431
Goodwill [Member] \| Europe [Member]
Balance Beginning	2,624	1,469
Acquisitions	583	1,291
Translation and Other	(168)	(136)
Balance End	3,039	2,624
Goodwill [Member] \| AMEA [Member]
Balance Beginning	519	424
Acquisitions	116	4
Translation and Other	56	91
Balance End	691	519
Brands [Member]
Balance Beginning	1,782	1,128
Acquisitions	180	647
Translation and Other	(57)	7
Balance End	1,905	1,782
Brands [Member] \| FLNA [Member]
Balance Beginning	30
Acquisitions		26
Translation and Other	1	4
Balance End	31	30
Brands [Member] \| LAF [Member]
Balance Beginning	136	127
Acquisitions		1
Translation and Other	7	8
Balance End	143	136
Brands [Member] \| PAB [Member]
Balance Beginning	112	59
Acquisitions	66	48
Translation and Other	4	5
Balance End	182	112
Brands [Member] \| Europe [Member]
Balance Beginning	1,378	844
Acquisitions	88	572
Translation and Other	(86)	(38)
Balance End	1,380	1,378
Brands [Member] \| AMEA [Member]
Balance Beginning	126	98
Acquisitions	26
Translation and Other	17	28
Balance End	169	126
Reacquired Franchise Rights [Member]
Balance Beginning
Acquisitions	8,039
Translation and Other	37
Balance End	8,076
Reacquired Franchise Rights [Member] \| PAB [Member]
Balance Beginning
Acquisitions	7,229
Translation and Other	54
Balance End	7,283
Reacquired Franchise Rights [Member] \| Europe [Member]
Balance Beginning
Acquisitions	810
Translation and Other	(17)
Balance End	793
Acquired Franchise Rights [Member]
Balance Beginning
Acquisitions	892
Translation and Other	900
Balance End	1,792
Acquired Franchise Rights [Member] \| PAB [Member]
Balance Beginning
Acquisitions	660
Translation and Other	905
Balance End	1,565
Acquired Franchise Rights [Member] \| Europe [Member]
Balance Beginning
Acquisitions	232
Translation and Other	(5)
Balance End	227
Other Intangible Assets [Member]
Balance Beginning
Acquisitions	10
Balance End	10
Other Intangible Assets [Member] \| PAB [Member]
Balance Beginning
Acquisitions	10
Balance End	$ 10

Income Taxes (Narrative) (Details) (USD $)	12 Months Ended
Income Taxes (Narrative) (Details) (USD $)	Dec. 25, 2010	Dec. 26, 2009
Total gross amount of reserves for income taxes	$ 2,023,000,000
Interest accrued	570,000,000	461,000,000
Interest accrued recognized	135,000,000	30,000,000
Operating loss carryforwards	9,100,000,000
Income tax undistributed international earnings	26,600,000,000
Expire 2011 [Member]
Operating loss carryforwards	400,000,000
Expire 2012-2030 [Member]
Operating loss carryforwards	6,500,000,000
Carried Forward Indefinitely [Member]
Operating loss carryforwards	$ 2,200,000,000

Income Taxes (Income Taxes) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Income before income taxes in U.S	$ 4,008	$ 4,209	$ 3,274
Income before income taxes in Foreign	4,224	3,870	3,771
Income before income taxes	8,232	8,079	7,045
Current: U.S. Federal	932	1,238	815
Foreign	728	473	732
State	137	124	87
Provision for income taxes, Current total	1,797	1,835	1,634
Deferred: U.S. Federal	78	223	313
Foreign	18	21	(69)
State	1	21	1
Provision for income taxes, Deferred total	97	265	245
Provision for income taxes	1,894	2,100	1,879
U.S. Federal statutory tax rate	35.00%	35.00%	35.00%
State income tax, net of U.S. Federal tax benefit	1.10%	1.20%	0.80%
Lower taxes on foreign results	(9.40%)	(7.90%)	(8.00%)
Acquisitions of PBG and PAS	(3.10%)
Other, net	(0.60%)	(2.30%)	(1.10%)
Annual tax rate	23.00%	26.00%	26.70%
Investments in noncontrolled affiliates	74	1,120
Debt guarantee of wholly owned subsidiary	828
Property, plant and equipment	1,984	1,056
Intangible assets other than nondeductible goodwill	3,726	417
Other	647	68
Gross deferred tax liabilities	7,259	2,661
Net carryforwards	1,264	624
Stock-based compensation	455	410
Retiree medical benefits	579	508
Other employee-related benefits	527	442
Pension benefits	291	179
Deductible state tax and interest benefits	320	256
Financing Activities	291
Other	904	560
Gross deferred tax assets	4,631	2,979
Valuation allowances	(875)	(586)
Deferred tax assets, net	3,756	2,393
Net deferred tax liabilities	3,503	268
Prepaid expenses and other current assets	554	391
Other assets
Deferred income taxes	4,057	659
Balance, beginning of year	586	657	695
Provision/(Benefit)	75	(78)	(5)
Other additions/(deductions)	214	7	(33)
Balance, end of year	$ 875	$ 586	$ 657

Income Taxes (Reserve Rollforward) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

$ 1,731

$ 1,711

Additions for tax positions related to the current year

204

238

Additions for tax positions from prior years

517

Reductions for tax positions from prior years

(391)

(236)

Settlement payments

(30)

(64)

Statute of limitations expiration

(7)

(4)

Translation and other

(2)

Balance, end of period

$ 2,022

^[1]

$ 1,731

[1]	Includes amounts related to our acquisitions of PBG and PAS.

Stock-Based Compensation (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008	Feb. 26, 2010
Stock-based compensation expense	$ 299	$ 227	$ 238
Merger and Integration Costs included in Stock-Based Compensation	53
Unvested acquisition-related grants	86
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	89	67	71
Common Stock, Capital Shares Reserved for Future Issuance	154
Stock option equity issuances, vested at acquisition				8.3
RSU equity issuances, vested at acquisition				0.6
Stock options, unvested				5.5
RSUs, unvested				2.1
Acquisition-related awards remaining vesting period, in years				3
Stock option exercisable life	10
Percent of equity awards granted to senior officers as stock options	50.00%
The percentage of equity awards granted to senior officers as performance-based RSUs	50.00%
Unrecognized compensation cost related to nonvested share-based compensation grants	423
Weighted-average period for recognizing unrecognized compensation	2
Total stock-based compensation expense	$ 352	$ 227	$ 238
PBG [Member]
Weighted-average grant price, stock options				$ 42.89
Weighted-average grant price, RSUs				$ 62.30
Stock options issued				13.4
RSUs issued				2.7
PAS [Member]
Weighted-average grant price, stock options				$ 31.72
Stock options issued				0.4

Stock-Based Compensation (Table of Weighted-Average Black-Scholes Fair Value Assumptions) (Details)	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Expected life, in years	5	6	6
Risk free interest rate	2.30%	2.80%	3.00%
Expected volatility	17.00%	17.00%	16.00%
Expected dividend yield	2.80%	3.00%	1.90%

Stock-Based Compensation (Stock-Based Compensation Activity ) (Details) (USD $)

12 Months Ended

Dec. 25, 2010

Outstanding at December 26, 2009, Options

106,011

^[1]

Granted Options

26,858

^[1]

Exercised Options

(23,940)

^[1]

Forfeited/expired Options

(2,726)

^[1]

Outstanding at December 25, 2010, Options

106,203

^[1]

Exercisable at December 25, 2010, Options

67,304

^[1]

Outstanding Average Price, at December 26, 2009

$ 51.68

^[2]

Granted Average Price

$ 54.09

^[2]

Exercised Average Price

$ 43.47

^[2]

Forfeited/expired Average Price

$ 55.85

^[2]

Outstanding Average Price, at December 25, 2010

$ 54.03

^[2]

Exercisable Average Price, at December 25, 2010

$ 50.26

^[2]

Outstanding Average Life, at December 25, 2010

5.19

^[3]

Exercisable Average Life, at December 25, 2010

3.44

^[3]

Outstanding Aggregate Intrinsic Value, at December 25, 2010

$ 1,281,596

^[4]

Exercisable Aggregate Intrinsic Value, at December 25, 2010

$ 1,040,510

^[4]

[1]	Options are in thousands and include options previously granted under PBG, PAS and Quaker plans. No additional options or shares may be granted under the PBG, PAS and Quaker plans.
[2]	Weighted-average exercise price.
[3]	Weighted-average contractual life remaining.
[4]	In thousands.

Stock-Based Compensation (Restricted Stock Units Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

Outstanding RSU, at December 26, 2009

6,092

^[1]

Granted RSU

8,326

^[1]

2,653

2,135

Converted RSU

(3,183)

^[1]

Forfeited/expired RSU

(573)

^[1]

Outstanding RSU, at December 25, 2010

10,662

^[1]

6,092

^[1]

Outstanding Average Intrinsic Value, Beginning

$ 60.98

^[2]

Granted Average Intrinsic Value

$ 65.01

^[2]

$ 53.22

$ 68.73

Converted Average Intrinsic Value

$ 63.58

^[2]

Forfeited/expired Average Intrinsic Value

$ 62.50

^[2]

Outstanding Average Intrinsic Value, Ending

$ 63.27

^[2]

$ 60.98

^[2]

Outstanding Aggregate Intrinsic Value, at December 25, 2010

$ 700,397

^[3]

Outstanding Average Life, at December 25, 2010

1.69

^[4]

[1]	RSUs are in thousands and include RSUs previously granted under a PBG plan. No additional RSUs or shares may be granted under the PBG plan.
[2]	Weighted-average intrinsic value at grant date.
[3]	In thousands.
[4]	Weighted-average contractual life remaining.

Stock-Based Compensation (Other Stock-Based Compensation Data) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

Weighted-average fair value of options granted

$ 13.93

$ 7.02

$ 11.24

Total intrinsic value of options exercised

$ 502,354

$ 194,545

$ 410,152

Total number of RSUs granted

8,326

^[1]

2,653

2,135

Weighted-average intrinsic value of RSUs granted

$ 65.01

^[2]

$ 53.22

$ 68.73

Total intrinsic value of RSUs converted

$ 202,717

$ 124,193

$ 180,563

[1]	RSUs are in thousands and include RSUs previously granted under a PBG plan. No additional RSUs or shares may be granted under the PBG plan.
[2]	Weighted-average intrinsic value at grant date.

Pension, Retiree Medical and Savings Plans (Narrative) (Details) (USD $)	3 Months Ended	4 Months Ended	12 Months Ended
	Sep. 04, 2010	Dec. 25, 2010	Dec. 24, 2011	Dec. 25, 2010	Dec. 26, 2009
Lower limit of net accumulated gain or loss				10.00%
Average remaining service period of active plan participants for pension expense				11
Average remaining service period of active plan participants for retiree medical expense				8
Merger of the pension plan assets of the legacy PBG and PAS U.S. pension plans with those of PepsiCo in one trust	1
Unfunded plans included in total projected benefit liability				$ 747,000,000
Pension contributions			160,000,000,000
Discretionary, pension contributions			15,000,000,000
Expected long-term rate of return on U.S. plan assets				7.80%
Target investment allocation, for fixed income allocations				40.00%
Pension strategy investment term				5
Contribution retiree medical plan		170,000,000	145,000,000,000	100,000,000
Average increase in the cost of covered retiree medical benefits			7.00%
Matching contributions				135,000,000	72,000,000
Retiree Medical Plan [Member]
Pre-tax curtailment gain	$ 62,000,000
U.S. Equity Allocation [Member]
Target investment allocation				40.00%
International Equity Allocation [Member]
Target investment allocation				20.00%
2020 and Thereafter [Member]
Average increase is then projected to decline			5.00%

Pension, Retiree Medical and Savings Plans (Selected Financial Information for Pension and Retiree Medical Plans) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Retiree Medical Plan [Member]
Liability at beginning of year	$ 1,359	$ 1,370
Acquisitions	396
Service cost	54	44	45
Interest cost	93	82	82
Plan amendments	(132)
Experience [loss/(gain)]	95	(63)
Special termination benefits	3
Foreign currency adjustment	2	6
Liability at end of year	1,770	1,359	1,370
Fair value at beginning of year	13
Actual return on plan assets	7	2
Employer contributions/funding	270	91
Benefit payments	(100)	(80)
Fair value at end of year	190	13
Funded status	(1,580)	(1,346)
Other current liabilities	(145)	(105)
Other liabilities	(1,435)	(1,241)
Net amount recognized	(1,580)	(1,346)
Net loss	270	190
Prior service cost/(credit)	(150)	(102)
Total	120	88
Change in discount rate	101	11
Employee-related assumption changes	8	(38)
Liability-related experience different from assumptions	(22)	(36)
Actual asset return different from expected return	(6)	(2)
Amortization of losses	(9)	(11)
Other, including foreign currency adjustments	8
Total	80	(76)
U.S. [Member]
Liability at beginning of year	6,606	6,217
Acquisitions	2,161
Service cost	299	238	244
Interest cost	506	373	371
Plan amendments	28
Experience [loss/(gain)]	583	70
Settlement/curtailment gain	(2)
Special termination benefits	45
Other		4
Liability at end of year	9,851	6,606	6,217
Fair value at beginning of year	5,420	3,974
Acquisitions	1,633
Actual return on plan assets	943	697
Employer contributions/funding	1,249	1,041
Benefit payments	(375)	(296)
Other		4
Fair value at end of year	8,870	5,420	3,974
Funded status	(981)	(1,186)
Other assets	47
Other current liabilities	(54)	(36)
Other liabilities	(974)	(1,150)
Net amount recognized	(981)	(1,186)
Net loss	2,726	2,563
Prior service cost/(credit)	117	101
Total	2,843	2,664
Change in discount rate	556	47
Employee-related assumption changes	4
Liability-related experience different from assumptions	43	23
Actual asset return different from expected return	(300)	(235)
Amortization of losses	(119)	(111)
Other, including foreign currency adjustments	(21)	13
Total	163	(263)
Liability at end of year for service to date	9,163	5,784
International [Member]
Liability at beginning of year	1,709	1,270
Acquisitions	90
Service cost	81	54	61
Interest cost	106	82	88
Participant contributions	3	10
Experience [loss/(gain)]	213	221
Settlement/curtailment gain	(3)	(8)
Special termination benefits	3
Foreign currency adjustment	(18)	130
Other	27
Liability at end of year	2,142	1,709	1,270
Fair value at beginning of year	1,561	1,165
Acquisitions	52
Actual return on plan assets	164	159
Employer contributions/funding	215	167
Participant contributions	3	10
Benefit payments	(69)	(50)
Settlement/curtailment [gain/(loss)]	(2)	(8)
Foreign currency adjustment	(28)	118
Fair value at end of year	1,896	1,561	1,165
Funded status	(246)	(148)
Other assets	66	50
Other current liabilities	(10)	(1)
Other liabilities	(302)	(197)
Net amount recognized	(246)	(148)
Net loss	767	625
Prior service cost/(credit)	17	20
Total	784	645
Change in discount rate	213	97
Employee-related assumption changes	(4)	70
Liability-related experience different from assumptions	5	51
Actual asset return different from expected return	(41)	(54)
Amortization of losses	(24)	(9)
Other, including foreign currency adjustments	(7)	49
Total	142	204
Liability at end of year for service to date	$ 1,743	$ 1,414

Pension, Retiree Medical and Savings Plans (Components of Benefit Expense) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Retiree Medical Plan [Member]
Service cost	$ 54	$ 44	$ 45
Interest cost	93	82	82
Expected return on plan assets	(1)
Amortization of prior service cost/(credit)	(22)	(17)	(13)
Amortization of net loss	9	11	7
Gross total	133	120	121
Settlement/curtailment (gain)/loss	(62)
Special termination benefits	3		3
Total	74	120	124
U.S. [Member]
Service cost	299	238	244
Interest cost	506	373	371
Expected return on plan assets	(643)	(462)	(416)
Amortization of prior service cost/(credit)	12	12	19
Amortization of net loss	119	110	55
Gross total	293	271	273
Settlement/curtailment (gain)/loss	(2)	(13)	3
Special termination benefits	45		31
Total	336	258	307
International [Member]
Service cost	81	54	61
Interest cost	106	82	88
Expected return on plan assets	(123)	(105)	(112)
Amortization of prior service cost/(credit)	2	2	3
Amortization of net loss	24	9	19
Gross total	90	42	59
Settlement/curtailment (gain)/loss	1	3	3
Special termination benefits	3		2
Total	$ 94	$ 45	$ 64

Pension, Retiree Medical and Savings Plans (Estimated Amounts to be Amortized from Accumulated Other Comprehensive Loss into Benefit Expense In 2011 for Pension and Retiree Medical Plans) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010
U.S. [Member]
Net loss	$ 144
Prior service cost/(credit)	15
Total	159
International [Member]
Net loss	39
Prior service cost/(credit)	2
Total	41
Retiree Medical Plan [Member]
Net loss	12
Prior service cost/(credit)	(28)
Total	$ (16)

Pension, Retiree Medical and Savings Plans (Weighted Average Assumptions to Determine Projected Benefit Liability and Benefit Expense for Pension and Retiree Medical Plans) (Details)	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
U.S. [Member]
Liability discount rate	5.70%	6.10%	6.20%
Expense discount rate	6.00%	6.20%	6.50%
Expected return on plan assets	7.80%	7.80%	7.80%
Liability rate of salary increases	4.10%	4.40%	4.40%
Expense rate of salary increases	4.40%	4.40%	4.60%
International [Member]
Liability discount rate	5.50%	5.90%	6.30%
Expense discount rate	6.00%	6.30%	5.60%
Expected return on plan assets	7.10%	7.10%	7.20%
Liability rate of salary increases	4.10%	4.10%	4.10%
Expense rate of salary increases	4.10%	4.20%	3.90%
Retiree Medical Plan [Member]
Liability discount rate	5.20%	6.10%	6.20%
Expense discount rate	5.80%	6.20%	6.50%
Expected return on plan assets	7.80%

Pension, Retiree Medical and Savings Plans (Selected Information about Plans with Liability for Service to Date and Total Benefit Liability in Excess of Plan Assets) (Details) (USD $) In Millions, unless otherwise specified	Dec. 25, 2010	Dec. 26, 2009
U.S. [Member]
Benefit liability	$ (5,806)	$ (6,603)
Fair value of plan assets	4,778	5,417
Liability for service to date	(525)	(2,695)
Fair value of plan assets		2,220
International [Member]
Benefit liability	(1,949)	(1,566)
Fair value of plan assets	1,638	1,368
Liability for service to date	(610)	(342)
Fair value of plan assets	474	309
Retiree Medical Plan [Member]
Benefit liability	(1,770)	(1,359)
Fair value of plan assets	$ 190	$ 13

Pension, Retiree Medical and Savings Plans (Estimated Future Benefit Payments ) (Details) (USD $)
In Millions, unless otherwise specified

Dec. 25, 2010

Pension [Member]

$ 480

500

520

560

595

3,770

Retiree Medical Plan [Member]

2011

155

^[1]

2012

155

^[1]

2013

160

^[1]

2014

165

^[1]

2015

170

^[1]

2016-20

$ 875

^[1]

[1]

Pension, Retiree Medical and Savings Plans (Categorized Plan Assets Measured at Fair Value) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Representation of one fund in total U.S. plan assets

32.00%

25.00%

U.S. Plan Assets [Member]

$ 9,060

^[1]

$ 5,420

U.S. Plan Assets [Member] | Cash and Cash Equivalents [Member]

^[1]

457

U.S. Plan Assets [Member] | Cash and Cash Equivalents [Member] | Level 1 [Member]

^[1]

U.S. Plan Assets [Member] | Sub Total International Plan Assets [Member]

9,013

^[1]

5,388

U.S. Plan Assets [Member] | Sub Total International Plan Assets [Member] | Level 1 [Member]

1,219

^[1]

U.S. Plan Assets [Member] | Sub Total International Plan Assets [Member] | Level 2 [Member]

7,766

^[1]

U.S. Plan Assets [Member] | Sub Total International Plan Assets [Member] | Level 3 [Member]

^[1]

U.S. Plan Assets [Member] | Dividends And Interest Receivable [Member]

^[1]

U.S. Plan Assets [Member] | Pepsi Co Common Stock [Member]

332

^[2]

U.S. Plan Assets [Member] | U.S. Common Stock [Member]

304

^[1],[2]

229

^[2]

U.S. Plan Assets [Member] | U.S. Common Stock [Member] | Level 1 [Member]

304

^[1],[2]

U.S. Plan Assets [Member] | U.S. Commingled Funds [Member]

3,426

^[1],[3]

1,387

^[3]

U.S. Plan Assets [Member] | U.S. Commingled Funds [Member] | Level 2 [Member]

3,426

^[1],[3]

U.S. Plan Assets [Member] | International Common Stock [Member]

834

^[1],[2]

700

^[2]

U.S. Plan Assets [Member] | International Common Stock [Member] | Level 1 [Member]

834

^[1],[2]

U.S. Plan Assets [Member] | International Commingled Fund [Member]

992

^[1],[4]

114

^[4]

U.S. Plan Assets [Member] | International Commingled Fund [Member] | Level 2 [Member]

992

^[1],[4]

U.S. Plan Assets [Member] | Preferred Stock [Member]

^[1],[5]

^[5]

U.S. Plan Assets [Member] | Preferred Stock [Member] | Level 2 [Member]

^[1],[5]

U.S. Plan Assets [Member] | Government Securities [Member]

950

^[1],[5]

741

^[5]

U.S. Plan Assets [Member] | Government Securities [Member] | Level 2 [Member]

950

^[1],[5]

U.S. Plan Assets [Member] | Corporate Bonds [Member]

Representation of one fund in total U.S. plan assets

2,374

^[1],[5]

1,214

^[5]

22.00%

18.00%

U.S. Plan Assets [Member] | Corporate Bonds [Member] | Level 2 [Member]

2,374

^[1],[5]

U.S. Plan Assets [Member] | Mortgage Backed Securities [Member]

^[1],[5]

201

^[5]

U.S. Plan Assets [Member] | Mortgage Backed Securities [Member] | Level 2 [Member]

^[1],[5]

U.S. Plan Assets [Member] | Contracts with Insurance Companies [Member]

^[1],[6]

^[6]

U.S. Plan Assets [Member] | Contracts with Insurance Companies [Member] | Level 3 [Member]

^[1],[6]

International Plan Assets [Member]

1,896

^[1]

1,561

International Plan Assets [Member] | Cash and Cash Equivalents [Member]

120

^[1]

International Plan Assets [Member] | Cash and Cash Equivalents [Member] | Level 1 [Member]

120

^[1]

International Plan Assets [Member] | Sub Total International Plan Assets [Member]

1,891

^[1]

1,561

International Plan Assets [Member] | Sub Total International Plan Assets [Member] | Level 1 [Member]

120

^[1]

International Plan Assets [Member] | Sub Total International Plan Assets [Member] | Level 2 [Member]

1,743

^[1]

International Plan Assets [Member] | Sub Total International Plan Assets [Member] | Level 3 [Member]

^[1]

International Plan Assets [Member] | Dividends And Interest Receivable [Member]

^[1]

International Plan Assets [Member] | U.S. Commingled Funds [Member]

193

^[1],[3]

180

^[3]

International Plan Assets [Member] | U.S. Commingled Funds [Member] | Level 2 [Member]

193

^[1],[3]

International Plan Assets [Member] | International Commingled Fund [Member]

779

^[1],[4]

661

^[4]

International Plan Assets [Member] | International Commingled Fund [Member] | Level 2 [Member]

779

^[1],[4]

International Plan Assets [Member] | Currency Commingled Funds [Member]

^[1],[7]

^[7]

International Plan Assets [Member] | Currency Commingled Funds [Member] | Level 2 [Member]

^[1],[7]

International Plan Assets [Member] | Fixed Income Commingled Fund [Member]

393

^[1],[8]

363

^[8]

International Plan Assets [Member] | Fixed Income Commingled Fund [Member] | Level 2 [Member]

393

^[1],[8]

International Plan Assets [Member] | Government Securities [Member]

184

^[1],[5]

139

^[5]

International Plan Assets [Member] | Government Securities [Member] | Level 2 [Member]

184

^[1],[5]

International Plan Assets [Member] | Corporate Bonds [Member]

152

^[1],[5]

128

^[5]

International Plan Assets [Member] | Corporate Bonds [Member] | Level 2 [Member]

152

^[1],[5]

International Plan Assets [Member] | Contracts with Insurance Companies [Member]

^[1],[6]

^[6]

International Plan Assets [Member] | Contracts with Insurance Companies [Member] | Level 3 [Member]

^[1],[6]

Retiree Medical Plan [Member]

Retiree medical plan assets

190

$ 190

[1]	2010 amounts include $190 million of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.
[2]	Based on quoted market prices in active markets.
[3]	Based on the fair value of the investments owned by these funds that track various U.S. large, mid-cap and small company indices. Includes one large-cap fund that represents 32% and 25%, respectively, of total U.S. plan assets for 2010 and 2009.
[4]	Based on the fair value of the investments owned by these funds that track various non-U.S. equity indices.
[5]	Based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes that are not observable. Corporate bonds of U.S.-based companies represent 22% and 18%, respectively, of total U.S. plan assets for 2010 and 2009.
[6]	Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable.
[7]	Based on the fair value of the investments owned by these funds. Includes managed hedge funds that invest primarily in derivatives to reduce currency exposure.
[8]	Based on the fair value of the investments owned by these funds that track various government and corporate bond indices.

Pension, Retiree Medical and Savings Plans (Effects of One Percentage Point Change in the Assumed Health Care Trend Rate) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010
One percent increase in 2010 service and interest cost components	$ 5
One percent decrease in 2010 service and interest cost components	(4)
One percent increase in 2010 benefit liability	42
One percent decrease in 2010 benefit liability	$ (50)

Noncontrolled Bottling Affiliates (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Share repurchases (in millions of dollars)
Share repurchases (in millions of shares)
PBG
Percentage of total net revenue	1.00%	6.00%	7.00%
Noncontrolling interest ownership percentage by noncontrolling owners		32.00%
Investment including goodwill		463
PBG \| Common Class B [Member]
Outstanding common stock ownership percentage		100.00%
PAS [Member]
Noncontrolling interest ownership percentage by noncontrolling owners		43.00%
Investment including goodwill		322
Bottling Group, LLC [Member]
Noncontrolling interest ownership percentage by noncontrolling owners	7.00%
Trust for Benefit of Employees [Member]
Share repurchases (in millions of dollars)	$ 357
Share repurchases (in millions of shares)	5.5

Noncontrolled Bottling Affiliates (Summarized Financial Information) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

Current assets

$ 17,569

$ 12,571

68,153

39,848

35,994

Current liabilities

15,892

8,756

46,677

22,406

Net (loss)/income attributable to PAS

57,838

^[1]

43,232

^[1]

43,251

^[1]

Operating (loss)/income

8,332

^[2]

8,044

^[2]

6,959

^[2]

(18)

(33)

(24)

PBG

3,412

10,158

13,570

1,965

Noncurrent liabilities

7,896

9,861

Our investment

1,775

Net (loss)/income attributable to PAS

13,219

13,796

Gross profit

5,840

6,210

Operating (loss)/income

1,048

649

612

162

PAS [Member]

952

4,141

5,093

669

Noncurrent liabilities

2,493

3,162

Our investment

1,071

Net (loss)/income attributable to PAS

4,421

4,937

Gross profit

1,767

1,982

Operating (loss)/income

381

473

$ 181

$ 226

[1]	Represents net revenue from businesses operating in these countries.
[2]	For information on the impact of restructuring, impairment and integration charges on our divisions, see Note 3.

Noncontrolled Bottling Affiliates (Related Party Transactions) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

Selling, general and administrative expenses

$ 57,838

^[1]

$ 43,232

^[1]

$ 43,251

^[1]

Cost of sales

26,575

20,099

20,351

22,814

15,026

15,877

Accounts and notes receivable

6,323

4,624

Accounts payable and other liabilities

10,923

8,127

Related Party Transactions [Member]

Selling, general and administrative expenses

993

^[2]

3,922

4,049

Cost of sales

116

^[2]

634

660

^[2]

Accounts and notes receivable

^[2]

254

248

Accounts payable and other liabilities

$ 42

^[2]

$ 285

$ 198

[1]	Represents net revenue from businesses operating in these countries.
[2]	Includes transactions with PBG and PAS in 2010 prior to the date of acquisition. 2010 balance sheet information for PBG and PAS is not applicable as we consolidated their balance sheets at the date of acquisition.

Debt Obligations and Commitments (Narrative) (Details) (USD $)	4 Months Ended				12 Months Ended																						4 Months Ended				12 Months Ended
	Dec. 25, 2010	Jan. 31, 2010	Dec. 26, 2009	Dec. 25, 2010 International Divisions [Member]	Dec. 25, 2010 Bottling Group [Member]	Mar. 20, 2010 LIBOR Plus 3 Basis Points [Member]	Mar. 20, 2010 Three Point One Percent Senior Unsecured Notes [Member]	Mar. 20, 2010 Four Point Five Percent Senior Unsecured Notes [Member]	Mar. 20, 2010 Five Point Five Percent Senior Unsecured Notes [Member]	Dec. 25, 2010 Seven Percent Senior Notes [Member] Metro [Member]	Dec. 25, 2010 Seven Point Six Two Five Percent Notes [Member] Metro [Member]	Dec. 25, 2010 Seven Point Two Nine Percent Notes [Member] Metro [Member]	Dec. 25, 2010 Seven Point Four Four Percent Notes [Member] Metro [Member]	Dec. 25, 2010 Four Point Five Percent [Member] Metro [Member]	Dec. 25, 2010 Five Point Six Two Five Percent Notes [Member] Metro [Member]	Dec. 25, 2010 Five Point Seven Five Percent [Member] Metro [Member]	Dec. 25, 2010 Four Point Three Seven Five Percent [Member] Metro [Member]	Dec. 25, 2010 Four Point Eight Seven Five Percent [Member] Metro [Member]	Dec. 25, 2010 Five Percent Notes [Member] Metro [Member]	Dec. 25, 2010 Five Point Five Percent [Member] Metro [Member]	Dec. 25, 2010 Four Point Six Two Five Percent Senior Notes [Member] Bottling Group [Member]	Dec. 25, 2010 Four Point One Two Five Percent Senior Notes [Member] Bottling Group [Member]	Dec. 25, 2010 Five Percent Senior Notes [Member] Bottling Group [Member]	Dec. 25, 2010 Five Point Five Percent Senior Notes [Member] Bottling Group [Member]	Dec. 25, 2010 Six Point Nine Five Percent Senior Notes [Member] Bottling Group [Member]	Dec. 25, 2010 Five Point One Two Five Percent Senior Notes [Member] Bottling Group [Member]	Dec. 25, 2010 Seven Point Nine Zero Percent Senior Unsecured Notes [Member]	Dec. 25, 2010 Zero Point Eight Seven Five Percent Senior Unsecured Notes [Member]	Dec. 25, 2010 Three Point One Two Five Percent Senior Unsecured Notes [Member]	Dec. 25, 2010 Four Point Eight Seven Five Percent Senior Unsecured Notes [Member]	Dec. 25, 2010 Replaced Pas Credit Facility [Member]	Dec. 25, 2010 Replaced Unsecured Revolving Credit Facility 2012 [Member]	Dec. 25, 2010 Replaced Unsecured Revolving Credit Facility 2012 [Member] Parent Company [Member]	Dec. 25, 2010 Replaced Unsecured Revolving Credit Facility 2012 [Member] Bottling Group [Member]
Fixed and floating rate notes issued		$ 4,250,000,000				$ 1,250,000,000	$ 1,000,000,000	$ 1,000,000,000	$ 1,000,000,000																			$ 500,000,000	$ 1,000,000,000	$ 750,000,000
Interest rate on debt							3.10%	4.50%	5.50%	7.00%	7.625%	7.29%	7.44%	4.50%	5.625%	5.75%	4.375%	4.875%	5.00%	5.50%	4.625%	4.125%	5.00%	5.50%	6.95%	5.125%	7.90%	0.875%	3.125%	4.875%
Outstanding principal amount				657,000,000	7,484,000,000					1,000,000,000	9,000,000	100,000,000	25,000,000	150,000,000	250,000,000	300,000,000	350,000,000	300,000,000	250,000,000	250,000,000	1,000,000,000	250,000,000	400,000,000	800,000,000	1,300,000,000	750,000,000
Aggregate Principal Amount of Debt Repurchased																											500,000,000
Debt Instrument, Fair Value	25,900,000,000		8,600,000,000		8,472,000,000
Debt Acquired In Connection With PBG And PAS Acquisitions Weighted-Average Stated Interest Rate					5.70%
Debt Acquired In Connection With PBG and PAS Acquisitions Weighted-Average Maturity In Years					6.6
Payment of tender offer																											672,000,000
Interest expense incurred related to debt repurchase	178,000,000
Line of credit facility, maximum borrowing capacity	2,575,000,000																																2,000,000,000	1,080,000,000
Replaced Line Of Credit Facility																															$ 540,000,000	$ 1,975,000,000

Debt Obligations and Commitments (Debt Obligations and Commitments) (Details) (USD $) In Millions, unless otherwise specified	Dec. 25, 2010	Dec. 26, 2009
Current maturities of long-term debt obligations	$ 113	$ 102
Short-term debt obligations	4,898	464
Long-term debt obligations gross	20,112	7,502
Less: current maturities of long-term debt obligations	(113)	(102)
Long-term debt obligations	19,999	7,400
Note Due Two Thousand Twelve Three Point One Percentage and One Point Nine Percentage [Member]
Notes due	2,437	1,079
Interest rate on debt	3.10%	1.90%
Note Due Two Thousand Thirteen Three Point Zero Percentage and Three Point Seven Percentage [Member]
Notes due	2,110	999
Interest rate on debt	3.00%	3.70%
Note Due Two Thousand Fourteen Five Point Three Percentage and Four Point Zero Percentage [Member]
Notes due	2,888	1,026
Interest rate on debt	5.30%	4.00%
Note Due Two Thousand Fifteen Two Point Six Percentage [Member]
Notes due	1,617
Interest rate on debt	2.60%
Note Due Two Thousand Sixteen Through Two Thousand Forty Four Point Nine Percentage and Five Point Four Percentage [Member]
Notes due	10,828	4,056
Interest rate on debt	4.90%	5.40%
Zero Coupon Notes Due Two Thousand Eleven Through Two Thousand Twelve Thirteen Point Three Percentage [Member]
Notes due	136	192
Interest rate on debt	13.30%	13.30%
Other Notes Due Two Thousand Eleven Through Two Thousand Nineteen Four Point Eight Percentage and Eight Point Four Percentage [Member]
Notes due	96	150
Interest rate on debt	4.80%	8.40%
Other Borrowings Five Point Three Percentage and Six Point Seven Percentage [Member]
Other borrowings (5.3% and 6.7%)	640	362
Interest rate on debt	5.30%	6.70%
Commercial Paper (0.2%) [Member]
Commercial paper (0.2%)	2,632
Interest rate on debt	0.20%
Notes Due Two Thousand Eleven Four Point Four Percentage [Member]
Notes due	1,513
Interest rate on debt	4.40%
Current Maturities of Long-Term Debt [Member]
Current maturities of long-term debt obligations	113	102
Less: current maturities of long-term debt obligations	$ (113)	$ (102)

Debt Obligations and Commitments (Long-term Contractual Commitments) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Fair Value Step-up Of Debt Acquired In Connection With Our Acquisitions Of PBG and PAS

$ 32,016

^[1]

662

Long-term Debt, Current Maturities

113

102

Payments Due By Period 2011 [Member]

2,258

^[1]

Payments Due By Period 2012-2013 [Member]

8,019

^[1]

Payments Due By Period 2014-2015 [Member]

6,349

^[1]

Payments Due By Period 2016 And Beyond [Member]

Long-term debt obligations, 2012-2013

15,390

^[1]

Long-Term Debt Obligations [Member]

19,337

^[1],[2]

Long-Term Debt Obligations [Member] | Payments Due By Period 2012-2013 [Member]

Long-term debt obligations, 2012-2013

4,569

^[1],[2]

Long-Term Debt Obligations [Member] | Payments Due By Period 2014-2015 [Member]

Long-term debt obligations, 2014-2015

4,322

^[1],[2]

Long-Term Debt Obligations [Member] | Payments Due By Period 2016 And Beyond [Member]

Long-term debt obligations, 2016 and beyond

10,446

^[1],[2]

Interest On Debt Obligations [Member]

7,746

^[1],[3]

Interest On Debt Obligations [Member] | Payments Due By Period 2011 [Member]

809

^[1],[3]

Interest On Debt Obligations [Member] | Payments Due By Period 2012-2013 [Member]

1,480

^[1],[3]

Interest On Debt Obligations [Member] | Payments Due By Period 2014-2015 [Member]

1,075

^[1],[3]

Interest On Debt Obligations [Member] | Payments Due By Period 2016 And Beyond [Member]

4,382

^[1],[3]

Operating Leases [Member]

1,676

^[1]

Operating Leases [Member] | Payments Due By Period 2011 [Member]

390

^[1]

Operating Leases [Member] | Payments Due By Period 2012-2013 [Member]

543

^[1]

Operating Leases [Member] | Payments Due By Period 2014-2015 [Member]

320

^[1]

Operating Leases [Member] | Payments Due By Period 2016 And Beyond [Member]

423

^[1]

Purchasing Commitments [Member]

2,433

^[1]

Purchasing Commitments [Member] | Payments Due By Period 2011 [Member]

765

^[1]

Purchasing Commitments [Member] | Payments Due By Period 2012-2013 [Member]

1,159

^[1]

Purchasing Commitments [Member] | Payments Due By Period 2014-2015 [Member]

481

^[1]

Purchasing Commitments [Member] | Payments Due By Period 2016 And Beyond [Member]

^[1]

Marketing Commitments [Member]

824

^[1]

Marketing Commitments [Member] | Payments Due By Period 2011 [Member]

294

^[1]

Marketing Commitments [Member] | Payments Due By Period 2012-2013 [Member]

268

^[1]

Marketing Commitments [Member] | Payments Due By Period 2014-2015 [Member]

151

^[1]

Marketing Commitments [Member] | Payments Due By Period 2016 And Beyond [Member]

Available-for-sale securities

$ 111

^[1]

[1]	Reflects non-cancelable commitments as of December 25, 2010 based on year-end foreign exchange rates and excludes any reserves for uncertain tax positions as we are unable to reasonably predict the ultimate amount or timing of settlement.
[2]	Excludes $662 million related to the fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS, as well as $113 million related to current maturities of long-term debt.
[3]	Interest payments on floating-rate debt are estimated using interest rates effective as of December 25, 2010.

Financial Instruments (Narrative) (Details) (USD $)	12 Months Ended
Financial Instruments (Narrative) (Details) (USD $)	Dec. 25, 2010	Dec. 26, 2009
Percentage of revenue from outside operations net	45.00%
Specified percentage of revenue from total outside operations net	20.00%
Debt Instrument, Fair Value	$ 25,900,000,000	$ 8,600,000,000
Interest Rate Contract [Member]
Expected reclassification of net gain (loss) related to hedge from accumulated OCI into net income	(13,000,000)
Notional amount of interest rate derivatives	9,230,000,000	5,750,000,000
Percentage of total debt, net of related interest rate derivatives, exposed to variable interest rates	43.00%	57.00%
Foreign Exchange Contract [Member]
Expected reclassification of net gain (loss) related to hedge from accumulated OCI into net income	(14,000,000)
Foreign currency derivatives at face value, net	1,700,000,000	1,200,000,000
Unrealized gain (loss) on derivatives and commodity contracts	(15,000,000)	(20,000,000)
Derivative instruments not designated as hedging instruments, gain		1,000,000
Derivative instruments not designated as hedging instruments, loss	6,000,000
Commodity Contract [Member]
Expected reclassification of net gain (loss) related to hedge from accumulated OCI into net income	12,000,000
Face value of open commodity derivative contracts qualifying for hedging	590,000,000	151,000,000
Derivative asset not designated as hedging instrument, face value	266,000,000	231,000,000
Unrealized gain (loss) on derivatives and commodity contracts	46,000,000	(29,000,000)
Derivative instruments not designated as hedging instruments, gain	26,000,000
Derivative instruments not designated as hedging instruments, loss		$ 57,000,000

Financial Instruments (Fair Values of financial assets and liabilities) (Details) (USD $)
In Millions, unless otherwise specified

Dec. 25, 2010

Dec. 26, 2009

$ 636

^[1],[2]

$ 71

^[1],[2]

Short-term investments - index funds, at fair value

167

^[1],[3]

120

^[1],[3]

Derivatives designated as hedging instruments, Assets, Total

363

^[1]

196

^[1]

Derivatives not designated as hedging instruments, Assets, Total

^[1]

Total asset derivatives at fair value

446

^[1]

253

^[1]

Total Financial Assets at Fair Value

1,249

^[1]

444

^[1]

Deferred compensation

559

^[1],[4]

461

^[1],[4]

Derivatives designated as hedging instruments, Liabilities, Total

^[1]

111

^[1]

Derivatives not designated as hedging instruments, Liabilities, Total

^[1]

Total liability derivatives at fair value

114

^[1]

176

^[1]

Total Financial Liabilities at Fair Value

673

^[1]

637

^[1]

Derivatives Not Designated As Hedging Instruments Liabilities [Member]

^[1],[5]

Forward exchange contracts

^[1],[6]

^[1],[7]

Commodity contracts - futures

^[1],[8]

Derivatives Designated As Hedging Instruments Liabilities [Member]

Forward exchange contract

^[1],[7]

^[1],[6]

Commodity contracts - futures

^[1],[5]

^[1],[8]

Derivatives Not Designated As Hedging Instruments Assets [Member]

Prepaid forward contracts

^[1],[9]

Forward exchange contracts

^[1],[7]

^[1],[5]

Forward exchange contracts

^[1],[6]

Derivatives Designated As Hedging Instruments Assets [Member]

^[1],[7]

284

^[1],[5]

177

^[1],[5]

Commodity contracts - futures

^[1],[6]

^[1],[8]

Level 1 Fair Values Of Assets And Liabilities [Member]

Deferred compensation

$ 170

$ 121

[1]	Financial assets are classified on our balance sheet within other assets, with the exception of short-term investments. Financial liabilities are classified on our balance sheet within other current liabilities and other liabilities. Unless specifically indicated, all financial assets and liabilities are categorized as Level 2 assets or liabilities.
[2]	Based on the price of common stock. Categorized as a Level 1 asset.
[3]	Based on price changes in index funds used to manage a portion of market risk arising from our deferred compensation liability. Categorized as a Level 1 asset.
[4]	Based on the fair value of investments corresponding to employees' investment elections. At December 25, 2010 and December 26, 2009, $170 million and $121 million, respectively, are categorized as Level 1 liabilities. The remaining balances are categorized as Level 2 liabilities.
[5]	Based on LIBOR and recently reported transactions in the marketplace.
[6]	Based on recently reported transactions in the marketplace, primarily swap arrangements.
[7]	Based on observable market transactions of spot and forward rates.
[8]	Based on average prices on futures exchanges. Categorized as a Level 1 asset or liability.
[9]	Based primarily on the price of our common stock.

Financial Instruments (Effective Portion of Pre-Tax (Gains)/Losses on Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Fair Value/Non-designated Hedges [Member]

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

$ (132)

^[1]

$ (102)

^[1]

Cash Flow Hedging [Member]

106

Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement

^[2]

Commodity Contract [Member] | Fair Value/Non-designated Hedges [Member]

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

(30)

^[1]

(274)

^[1]

Commodity Contract [Member] | Cash Flow Hedging [Member]

(32)

(1)

Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement

^[2]

Prepaid Forward Contracts [Member] | Fair Value/Non-designated Hedges [Member]

(4)

^[1]

(5)

^[1]

Forward Exchange Contracts [Member] | Fair Value/Non-designated Hedges [Member]

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

^[1]

(29)

^[1]

Forward Exchange Contracts [Member] | Cash Flow Hedging [Member]

Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement

^[2]

(64)

^[2]

Interest Rate Contract [Member] | Fair Value/Non-designated Hedges [Member]

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

(104)

^[1]

206

^[1]

Interest Rate Contract [Member] | Cash Flow Hedging [Member]

Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement

$ 7

^[2]

[1]	Interest rate gains/losses are included in interest expense in our income statement. All other gains/losses are included in corporate unallocated expenses.
[2]	Interest rate losses are included in interest expense in our income statement. All other gains/losses are included in cost of sales in our income statement.

Net Income Attributable to PepsiCo per Common Share (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008
Out-of-the money options excluded from earnings per share	24.4	39.0	9.8
Out-of-the money options average exercise price	$ 67.26	$ 61.52	$ 67.59

Net Income Attributable to PepsiCo per Common Share (Basic and Diluted Net Income attributable to PepsiCo per common share) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

$ 6,320

$ 5,946

$ 5,142

Net income available for PepsiCo common shareholders

(1)

(2)

Redemption premium

(5)

(6)

6,314

5,940

5,134

Basic net income attributable to PepsiCo per common share

$ 3.97

$ 3.81

$ 3.26

Net income available for PepsiCo common stockholders-shares

1,590

^[1]

1,558

^[1]

1,573

^[1]

Stock options and RSUs-shares

^[1]

ESOP convertible preferred stock-value

ESOP convertible preferred stock-shares

^[1]

Diluted shares-value

$ 6,320

$ 5,946

$ 5,142

Diluted-shares

1,614

^[1]

1,577

^[1]

1,602

^[1]

Diluted net income attributable to PepsiCo per common share

$ 3.91

$ 3.77

$ 3.21

[1]	Weighted-average common shares outstanding (in millions).

Preferred Stock (Narrative) (Details) (USD $) In Millions, except Share data, unless otherwise specified				12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008	Dec. 25, 2010 ESOP [Member]	Dec. 26, 2009 ESOP [Member]	Dec. 25, 2010 Convertible Preferred Stock [Member]	Dec. 26, 2009 Convertible Preferred Stock [Member]
Preferred stock, authorized						3,000,000	3,000,000
Preferred stock, dividends per share				$ 5.46
Preferred shares, issued	803,953	803,953	803,953
Preferred shares, outstanding				227,653	243,553
Outstanding preferred shares, Fair value	$ 41	$ 41	$ 41	$ 74	$ 73
Preferred stock convertible at the option of the holder				4.9625
Preferred stock call price				$ 78

Preferred Stock (Schedule of Preferred Shares) (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended			12 Months Ended		12 Months Ended
	Dec. 25, 2010	Dec. 26, 2009	Dec. 27, 2008	Dec. 25, 2010 Preferred Stock [Member]	Dec. 29, 2007 Preferred Stock [Member]	Dec. 25, 2010 Repurchased Preferred Stock [Member]	Dec. 26, 2009 Repurchased Preferred Stock [Member]	Dec. 27, 2008 Repurchased Preferred Stock [Member]
Preferred Stock, Shares	803,953	803,953	803,953
Preferred stock, Amount	$ 41	$ 41	$ 41
Balance, beginning of year (in shares)				(800,000)	(800,000)	600,000	500,000	500,000
Balance, beginning of year	(17,442)		(12,582)	(41)	(41)	145	138	132
Redemptions (in shares)							100,000
Redemptions						5	7	6
Balance, end of period (in shares)				(800,000)	(800,000)	600,000	600,000	500,000
Balance, end of period	(21,476)		(12,582)	(41)	(41)	150	145	138
Stock Redeemed or Called During Period, Value						$ 5	$ 7	$ 6

Accumulated Other Comprehensive Loss Attributable to PepsiCo (Accumulated Balances for Each Component of Other Comprehensive Loss Attributable to PepsiCo) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

Cash flow hedges, net of tax

$ (1,159)

$ (1,471)

$ (2,271)

(100)

^[1]

(42)

^[1]

(14)

^[1]

Unamortized pension and retiree medical, net of tax

(2,442)

^[2]

(2,328)

^[2]

(2,435)

^[2]

Unrealized gain on securities, net of tax

Accumulated other comprehensive loss attributable to PepsiCo

(2)

(3,630)

(3,794)

(4,694)

After tax gain/loss for our equity investees accumulated derivative activity

(17)

Net of taxes decrease to opening balance of accumulated other comprehensive loss attributable to PepsiCo

1,322

1,211

1,288

Decrease in opening balance of accumulated other comprehensive loss due to pension and retiree medical plan measurement date change

$ 51

[1]	Includes $23 million after-tax gain in 2009 and $17 million after-tax loss in 2008 for our share of our equity investees' accumulated derivative activity.
[2]	Net of taxes of $1,322 million in 2010, $1,211 million in 2009 and $1,288 million in 2008. Includes $51 million decrease to the opening balance of accumulated other comprehensive loss attributable to PepsiCo in 2008 due to a change in measurement date for our pension and retiree medical plans.

Supplemental Financial Information (Schedule of Supplemental Balance Sheet Information) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 25, 2010

Dec. 26, 2009

Dec. 27, 2008

Trade receivables

$ 5,514

$ 4,026

Other receivables

953

688

Total receivables

6,467

4,714

Allowance, beginning of year

Net amounts charged to expense

Deductions

(37)

^[1]

(21)

^[1]

(16)

^[1]

Percent of Inventory Cost Calculated Using the LIFO method

^[2]

(4)

^[2]

Allowance, end of year

144

Net receivables

6,323

4,624

Raw materials

1,654

^[3]

1,274

^[3]

Work-in-process

128

^[3]

165

^[3]

Finished goods

1,590

^[3]

1,179

^[3]

Inventories

3,372

^[3]

2,618

^[3]

8.00%

10.00%

Noncurrent notes and accounts receivable

165

118

Deferred marketplace spending

203

182

Unallocated purchase price for recent acquisitions

143

Pension plans

121

Other investments

653

^[4]