Pension and Retiree Medical Benefits

Acquisitions

PBG and PAS

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. The acquisitions were accounted for as business combinations, and, accordingly, the identifiable assets acquired and liabilities assumed were recorded at their estimated fair values at the date of acquisition. Our fair market valuations of the identifiable assets acquired and liabilities assumed have been completed and the final valuations did not materially differ from those fair values reported as of December 25, 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 12 weeks ended March 20, 2010.


	(unaudited) 12 Weeks Ended
	3/20/10
Net Revenue	$	11,112
Net Income Attributable to PepsiCo	$	966
Net Income Attributable to PepsiCo per Common Share – Diluted	$	0.58

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 date 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 completed the previously announced acquisition of ordinary shares, American Depositary Shares (ADSs) and Global Depositary Shares (GDSs) of WBD, a company incorporated in the Russian Federation, which represented 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 our total ownership of WBD to approximately 77%. The total consideration transferred was approximately $5.8 billion, which included the $3.8 billion of cash (or $2.4 billion, net of cash and cash equivalents acquired), the fair value of our previously held equity interest in WBD of $0.7 billion and the fair value of the remaining noncontrolling interests in WBD of $1.3 billion. The preliminary estimates of the fair value of the identifiable assets acquired and liabilities assumed in WBD as of the acquisition date include goodwill and other intangible assets of $4.8 billion; property, plant and equipment of $1.2 billion; debt obligations of $1.1 billion; and other net assets of $0.9 billion, all of which are recorded in our Europe segment. The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in adjustments to the preliminary values discussed above as valuations are finalized. We expect to finalize these amounts as soon as possible but no later than by the end of 2011.

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 Merger and Integration Charges for details on the expenses incurred during 2011.

On March 10, 2011, we commenced our previously announced tender offers in Russia and the United States for all outstanding ordinary shares and ADSs of WBD for 3,883.70 Russian rubles per ordinary share and 970.925 Russian rubles per ADS. The Russian offer is being made to all holders of ordinary shares and the U.S. offer is being made to all holders of ADSs. The U.S. offer price is equal to the Russian offer share price after adjustment for the four-to-one ratio of ADSs to shares. The U.S. offer price will be converted to U.S. dollars at the spot market conversion rates available to the ADS depositary during the conversion period and paid to tendering ADS holders using the weighted average of the conversion rates, less certain fees under the ADS depositary agreement and applicable taxes, if any. The Russian offer will expire on May 19, 2011 and the U.S. offer is scheduled to expire on May 16, 2011.

Intangible Assets

3 Months Ended

Mar. 19, 2011

Intangible Assets

Intangible Assets

Intangible Assets


	3/19/11			12/25/10
*Amortizable intangible assets, net*
Acquired franchise rights	$	968		$	949
Reacquired franchise rights		110			110
Brands		1,526			1,463
Other identifiable intangibles		1,142			747

		3,746			3,269
Accumulated amortization		(1,269	)		(1,244	)

	$	2,477		$	2,025

The change in the book value of nonamortizable intangible assets is as follows:


	Balance 12/25/10		Acquisitions		Translation and Other			Balance 3/19/11
*FLNA*
Goodwill	$	313	$	–	$	4		$	317
Brands		31		–		1			32

		344		–		5			349

*QFNA*
Goodwill		175		–		–			175


*LAF*
Goodwill		497		–		1			498
Brands		143		–		1			144

		640		–		2			642

*PAB*
Goodwill		9,946		24		9			9,979
Reacquired franchise rights		7,283		20		26			7,329
Acquired franchise rights		1,565		–		2			1,567
Brands		182		8		1			191
Other		10		–		–			10

		18,986		52		38			19,076

*Europe*^(a)
Goodwill		3,040		978		150			4,168
Reacquired franchise rights		793		–		32			825
Acquired franchise rights		227		–		9			236
Brands		1,380		3,400		134			4,914

		5,440		4,378		325			10,143

*AMEA*
Goodwill		690		–		(3	)		687
Brands		169		–		1			170

		859		–		(2	)		857


Total goodwill		14,661		1,002		161			15,824
Total reacquired franchise rights		8,076		20		58			8,154
Total acquired franchise rights		1,792		–		11			1,803
Total brands		1,905		3,408		138			5,451
Total other		10		–		–			10

	$	26,444	$	4,430	$	368		$	31,242

^(a)	Net increases in 2011 relate primarily to our acquisition of WBD.

- Definition

Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

+ References+ Details

Stock-Based Compensation

3 Months Ended

Mar. 19, 2011

Stock-Based Compensation

Stock-Based Compensation

Stock-Based Compensation

For the 12 weeks ended March 19, 2011, we recognized stock-based compensation expense of $79 million ($72 million recorded as stock-based compensation expense and $7 million included in merger and integration charges). For the 12 weeks ended March 20, 2010, we recognized stock-based compensation expense of $74 million ($47 million recorded as stock-based compensation expense and $27 million included in merger and integration charges).

For the 12 weeks ended March 19, 2011, we granted 6.4 million stock options and 5.1 million RSUs at a weighted-average grant price of $63.75, under the terms of our 2007 Long-Term Incentive Plan. We did not grant any stock options or RSUs in the 12 weeks ended March 20, 2010, as our annual equity award was delayed until the second quarter in the prior year, in connection with our acquisitions of PBG and PAS.

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


	12 Weeks Ended
	3/19/11			3/20/10
Expected life		6 yrs.			4 yrs.
Risk free interest rate		2.6	%		1.6	%
Expected volatility^(a)		16	%		18	%
Expected dividend yield		2.9	%		2.8	%

⁽ ^a ⁾

Reflects movements in our stock price over the most recent historical period equivalent to the expected life.

Pension and Retiree Medical Benefits

3 Months Ended

Mar. 19, 2011

Pension and Retiree Medical Benefits

Pension and Retiree Medical Benefits

The components of net periodic benefit cost for pension and retiree medical plans are as follows:


	12 Weeks Ended
	Pension												Retiree Medical
	3/19/11			3/20/10			3/19/11			3/20/10			3/19/11			3/20/10
	U.S.						International
Service cost	$	82		$	61		$	17		$	14		$	12		$	12
Interest cost		126			98			21			18			20			20
Expected return on plan assets		(162	)		(125	)		(24	)		(22	)		(3	)		–
Amortization of prior service cost/(benefit)		3			3			–			–			(7	)		(4	)
Amortization of experience loss		33			25			7			4			3			1

		82			62			21			14			25			29

Settlement/Curtailment (gain)/loss		(9	)		–			–			–			–			–
Special termination benefits		10			8			–			–			1			–

Total expense	$	83		$	70		$	21		$	14		$	26		$	29

- Definition

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

Income Taxes

3 Months Ended

Mar. 19, 2011

Income Taxes

Income Taxes

Income Taxes

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


	3/19/11			12/25/10
Balance, beginning of year	$	2,022		$	1,731
Additions for tax positions related to the current year		41			204
Additions for tax positions from prior years		–			517
Reductions for tax positions from prior years		(29	)		(391	)
Settlement payments		(87	)		(30	)
Statute of limitations expiration		(4	)		(7	)
Translation and other		1			(2	)

Balance, end of period	$	1,944		$	2,022

Net Income Attributable to PepsiCo per Common Share

3 Months Ended

Mar. 19, 2011

Net Income Attributable to PepsiCo per Common Share

Net Income Attributable to PepsiCo per Common Share

Net Income Attributable to PepsiCo per Common Share

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


	12 Weeks Ended
	3/19/11					3/20/10
	Income			Shares^(a)		Income			Shares^(a)
Net income attributable to PepsiCo	$	1,143				$	1,430
Preferred shares:
Dividends		–					–
Redemption premium		(2	)				(1	)

Net income available for PepsiCo common shareholders	$	1,141			1,583	$	1,429			1,582

Basic net income attributable to PepsiCo per common share	$	0.72				$	0.90

Net income available for PepsiCo common shareholders	$	1,141			1,583	$	1,429			1,582
Dilutive securities:
Stock options and RSUs^(b)		–			21		–			23
ESOP convertible preferred stock		2			1		1			1

Diluted	$	1,143			1,605	$	1,430			1,606

Diluted net income attributable to PepsiCo per common share	$	0.71				$	0.89

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

^(b)	Options to purchase 31.3 million shares in 2011 and 20.7 million shares in 2010 were not included in the calculation of earnings per share because these options were out-of-the-money. Out-of-the-money options had an average exercise price of $66.85 in 2011 and $67.02 in 2010_.

Merger and Integration Charges

3 Months Ended

Mar. 19, 2011

Merger and Integration Charges

Merger and Integration Charges

Merger and Integration Charges

In the 12 weeks ended March 19, 2011, we incurred merger and integration charges of $55 million ($49 million after-tax or $0.03 per share) related to our acquisitions of PBG, PAS and WBD, including $21 million recorded in the PAB segment, $42 million recorded in corporate unallocated expenses and a credit of $8 million recorded in the Europe segment, primarily reflecting a gain on our previously held equity interest in WBD. All of these net charges were recorded in selling, general and administrative expenses. These charges also include closing costs and advisory fees related to our acquisition of WBD. Substantially all cash payments related to the above charges are expected to be paid by the end of 2011.

In the 12 weeks ended March 20, 2010, we incurred merger and integration charges of $312 million related to our acquisitions of PBG and PAS, including $193 million recorded in the PAB segment, $1 million recorded in the Europe segment, $88 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. 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 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 $261 million or $0.16 per share.

A summary of our merger and integration activity in 2011 is as follows:


	Severance and Other Employee Costs			Other Costs			Total
Liability as of December 25, 2010	$	179		$	25		$	204
2011 merger and integration charges		8			47			55
Cash payments		(43	)		(74	)		(117	)
Non-cash charges		(20	)		17			(3	)

Liability as of March 19, 2011	$	124		$	15		$	139

Financial Instruments

3 Months Ended

Mar. 19, 2011

Financial Instruments

Financial Instruments

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. Ineffectiveness of our hedges is not material. 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 $34 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 $573 million as of March 19, 2011 and $582 million as of March 20, 2010. These contracts resulted in net unrealized gains of $73 million as of March 19, 2011 and $72 million as of March 20, 2010.

Our open commodity derivative contracts that do not qualify for hedge accounting had a face value of $300 million as of March 19, 2011 and $221 million as of March 20, 2010. These contracts resulted in net gains of $58 million as of March 19, 2011 and $20 million as of March 20, 2010.

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.

We may 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 $2.3 billion as of March 19, 2011 and $1.4 billion as of March 20, 2010. The contracts that qualify for hedge accounting resulted in net unrealized losses of $34 million as of March 19, 2011 and $29 million as of March 20, 2010. During the next 12 months, we expect to reclassify net losses of $30 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 $5 million as of both March 19, 2011 and March 20, 2010. 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 March 19, 2011 and March 20, 2010 were $9.23 billion and $8.35 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 March 19, 2011, approximately 44% of total debt, after the impact of the related interest rate derivative instruments, was exposed to variable rates, compared to 43% as of December 25, 2010.

Fair Value Measurements

The fair values of our financial assets and liabilities as of March 19, 2011 and March 20, 2010 are categorized as follows:


2011					2010
	Assets^(a)		Liabilities^(a)			Assets^(a)		Liabilities^(a)
Available-for-sale securities^(b)	$	70		–		$	69		–
Short-term investments – index funds^(c)	$	177		–		$	123		–
Deferred compensation^(d)		–	$	553			–	$	572

Derivatives designated as hedging instruments:
Forward exchange contracts^(e)	$	4	$	38		$	10	$	39
Interest rate derivatives^(f)		296		16			207		12
Commodity contracts – other^(g)		89		1			112		5
Commodity contracts – futures^(h)		1		16			–		35

	$	390	$	71		$	329	$	91

Derivatives not designated as hedging instruments:
Forward exchange contracts^(e)	$	6	$	11		$	2	$	7
Interest rate derivatives^(f)		14		52			–		42
Commodity contracts – other^(g)		59		1			12		30
Commodity contracts – futures^(h)		–		–			–		2
Prepaid forward contracts⁽ⁱ⁾		43		–			64		–

	$	122	$	64		$	78	$	81


Total derivatives at fair value	$	512	$	135		$	407	$	172


Total	$	759	$	688		$	599	$	744

(a)

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. As of March 19, 2011 and March 20, 2010, $63 million and $124 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 fair value of our debt obligations as of March 19, 2011 was $28.9 billion, based upon prices of similar instruments in the marketplace.

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


	12 Weeks Ended
	Fair Value/Non- designated Hedges						Cash Flow Hedges
	(Gains)/Losses 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)
	3/19/11			3/20/10			3/19/11			3/20/10			3/19/11			3/20/10
Forward exchange contracts	$	(1	)	$	6		$	25		$	13		$	5		$	11
Interest rate derivatives		(22	)		10			(6	)		48			3			–
Prepaid forward contracts		2			(18	)		–			–			–			–
Commodity contracts		(39	)		(46	)		(40	)		(12	)		(6	)		16

Total	$	(60	)	$	(48	)	$	(21	)	$	49		$	2		$	27

(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.

Basis of Presentation and Our Divisions (Policy)	3 Months Ended
Basis of Presentation and Our Divisions (Policy)	Mar. 19, 2011
Basis of Presentation and Our Divisions
Revenue Recognition	Our significant interim accounting policies include the recognition of a pro rata share of certain estimated annual sales incentives, and certain advertising and marketing costs, generally in proportion to revenue,
Income Tax, Policy	and the recognition of income taxes using an estimated annual effective tax rate.
Cost of Sales, Policy	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.
Selling, General and Administrative Expenses, Policy	The costs of moving, storing and delivering finished product are included in selling, general and administrative expenses.

Basis of Presentation and Our Divisions (Tables)

3 Months Ended

Mar. 19, 2011

Net Revenue And Operating Profit [Member]

Schedule Of Segment Reporting Information, By Segment


	12 Weeks Ended
	Net Revenue				Operating Profit
	3/19/11		3/20/10		3/19/11			3/20/10
FLNA	$	2,904	$	2,864	$	774		$	728
QFNA		640		683		214			195
LAF		1,108		983		171			145
PAB		4,531		2,765		558			73
Europe		1,626		1,044		63			118
AMEA		1,128		1,029		146			155

Total division		11,937		9,368		1,926			1,414
Corporate Unallocated
Net impact of mark-to-market on commodity hedges		–		–		31			46
Merger and integration costs		–		–		(42	)		(88	)
Venezuela currency devaluation		–		–		–			(129	)
Asset write-off		–		–		–			(145	)
Foundation contribution		–		–		–			(100	)
Other		–		–		(189	)		(158	)

	$	11,937	$	9,368	$	1,726		$	840

Total Assets [Member]

Schedule Of Segment Reporting Information, By Segment


	Total Assets
	3/19/11		12/25/10
FLNA	$	6,072	$	6,027
QFNA		1,204		1,217
LAF		4,041		4,053
PAB		31,981		31,622
Europe^(a)		19,824		13,032
AMEA		5,629		5,569

Total division		68,751		61,520
Corporate^(b ⁾		4,091		6,394
Investments in bottling affiliates		243		239

	$	73,085	$	68,153

^(a ⁾

Change in 2011 relates primarily to our acquisition of WBD.

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

Acquisitions (Tables)

3 Months Ended

Mar. 20, 2010

Acquisitions

Pro Forma Financial Information


	(unaudited) 12 Weeks Ended
	3/20/10
Net Revenue	$	11,112
Net Income Attributable to PepsiCo	$	966
Net Income Attributable to PepsiCo per Common Share – Diluted	$	0.58

Intangible Assets (Tables)

3 Months Ended

Mar. 19, 2011

Intangible Assets

Amortizable Intangible Assets, Net


	3/19/11			12/25/10
*Amortizable intangible assets, net*
Acquired franchise rights	$	968		$	949
Reacquired franchise rights		110			110
Brands		1,526			1,463
Other identifiable intangibles		1,142			747

		3,746			3,269
Accumulated amortization		(1,269	)		(1,244	)

	$	2,477		$	2,025

Change in Book Value of Nonamortizable Intangible Assets


	Balance 12/25/10		Acquisitions		Translation and Other			Balance 3/19/11
*FLNA*
Goodwill	$	313	$	–	$	4		$	317
Brands		31		–		1			32

		344		–		5			349

*QFNA*
Goodwill		175		–		–			175


*LAF*
Goodwill		497		–		1			498
Brands		143		–		1			144

		640		–		2			642

*PAB*
Goodwill		9,946		24		9			9,979
Reacquired franchise rights		7,283		20		26			7,329
Acquired franchise rights		1,565		–		2			1,567
Brands		182		8		1			191
Other		10		–		–			10

		18,986		52		38			19,076

*Europe*^(a)
Goodwill		3,040		978		150			4,168
Reacquired franchise rights		793		–		32			825
Acquired franchise rights		227		–		9			236
Brands		1,380		3,400		134			4,914

		5,440		4,378		325			10,143

*AMEA*
Goodwill		690		–		(3	)		687
Brands		169		–		1			170

		859		–		(2	)		857


Total goodwill		14,661		1,002		161			15,824
Total reacquired franchise rights		8,076		20		58			8,154
Total acquired franchise rights		1,792		–		11			1,803
Total brands		1,905		3,408		138			5,451
Total other		10		–		–			10

	$	26,444	$	4,430	$	368		$	31,242

^(a)	Net increases in 2011 relate primarily to our acquisition of WBD.

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 19, 2011

Stock-Based Compensation

Table of Weighted-Average Black-Scholes Fair Value Assumptions


	12 Weeks Ended
	3/19/11			3/20/10
Expected life		6 yrs.			4 yrs.
Risk free interest rate		2.6	%		1.6	%
Expected volatility^(a)		16	%		18	%
Expected dividend yield		2.9	%		2.8	%

⁽ ^a ⁾

Reflects movements in our stock price over the most recent historical period equivalent to the expected life.

Pension and Retiree Medical Benefits (Tables)

3 Months Ended

Mar. 19, 2011

Pension and Retiree Medical Benefits

Components of Benefit Expense


	12 Weeks Ended
	Pension												Retiree Medical
	3/19/11			3/20/10			3/19/11			3/20/10			3/19/11			3/20/10
	U.S.						International
Service cost	$	82		$	61		$	17		$	14		$	12		$	12
Interest cost		126			98			21			18			20			20
Expected return on plan assets		(162	)		(125	)		(24	)		(22	)		(3	)		–
Amortization of prior service cost/(benefit)		3			3			–			–			(7	)		(4	)
Amortization of experience loss		33			25			7			4			3			1

		82			62			21			14			25			29

Settlement/Curtailment (gain)/loss		(9	)		–			–			–			–			–
Special termination benefits		10			8			–			–			1			–

Total expense	$	83		$	70		$	21		$	14		$	26		$	29

Income Taxes (Tables)

3 Months Ended

Mar. 19, 2011

Income Taxes

Reserves Rollforward


	3/19/11			12/25/10
Balance, beginning of year	$	2,022		$	1,731
Additions for tax positions related to the current year		41			204
Additions for tax positions from prior years		–			517
Reductions for tax positions from prior years		(29	)		(391	)
Settlement payments		(87	)		(30	)
Statute of limitations expiration		(4	)		(7	)
Translation and other		1			(2	)

Balance, end of period	$	1,944		$	2,022

Net Income Attributable to PepsiCo per Common Share (Tables)

3 Months Ended

Mar. 19, 2011

Net Income Attributable to PepsiCo per Common Share

Basic and Diluted Net Income Attributable to PepsiCo Per Common Share


	12 Weeks Ended
	3/19/11					3/20/10
	Income			Shares^(a)		Income			Shares^(a)
Net income attributable to PepsiCo	$	1,143				$	1,430
Preferred shares:
Dividends		–					–
Redemption premium		(2	)				(1	)

Net income available for PepsiCo common shareholders	$	1,141			1,583	$	1,429			1,582

Basic net income attributable to PepsiCo per common share	$	0.72				$	0.90

Net income available for PepsiCo common shareholders	$	1,141			1,583	$	1,429			1,582
Dilutive securities:
Stock options and RSUs^(b)		–			21		–			23
ESOP convertible preferred stock		2			1		1			1

Diluted	$	1,143			1,605	$	1,430			1,606

Diluted net income attributable to PepsiCo per common share	$	0.71				$	0.89

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

^(b)	Options to purchase 31.3 million shares in 2011 and 20.7 million shares in 2010 were not included in the calculation of earnings per share because these options were out-of-the-money. Out-of-the-money options had an average exercise price of $66.85 in 2011 and $67.02 in 2010_.

Financial Instruments (Tables)

3 Months Ended

Mar. 19, 2011

Financial Instruments

Fair Values of Financial Assets and Liabilities


2011					2010
	Assets^(a)		Liabilities^(a)			Assets^(a)		Liabilities^(a)
Available-for-sale securities^(b)	$	70		–		$	69		–
Short-term investments – index funds^(c)	$	177		–		$	123		–
Deferred compensation^(d)		–	$	553			–	$	572

Derivatives designated as hedging instruments:
Forward exchange contracts^(e)	$	4	$	38		$	10	$	39
Interest rate derivatives^(f)		296		16			207		12
Commodity contracts – other^(g)		89		1			112		5
Commodity contracts – futures^(h)		1		16			–		35

	$	390	$	71		$	329	$	91

Derivatives not designated as hedging instruments:
Forward exchange contracts^(e)	$	6	$	11		$	2	$	7
Interest rate derivatives^(f)		14		52			–		42
Commodity contracts – other^(g)		59		1			12		30
Commodity contracts – futures^(h)		–		–			–		2
Prepaid forward contracts⁽ⁱ⁾		43		–			64		–

	$	122	$	64		$	78	$	81


Total derivatives at fair value	$	512	$	135		$	407	$	172


Total	$	759	$	688		$	599	$	744

(a)

(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. As of March 19, 2011 and March 20, 2010, $63 million and $124 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.

Effective Portion of Pre-tax (Gains)/Losses on Derivative Instruments


	12 Weeks Ended
	Fair Value/Non- designated Hedges						Cash Flow Hedges
	(Gains)/Losses 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)
	3/19/11			3/20/10			3/19/11			3/20/10			3/19/11			3/20/10
Forward exchange contracts	$	(1	)	$	6		$	25		$	13		$	5		$	11
Interest rate derivatives		(22	)		10			(6	)		48			3			–
Prepaid forward contracts		2			(18	)		–			–			–			–
Commodity contracts		(39	)		(46	)		(40	)		(12	)		(6	)		16

Total	$	(60	)	$	(48	)	$	(21	)	$	49		$	2		$	27

(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.

Basis of Presentation and Our Divisions (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 19, 2011	Mar. 20, 2010
Basis of Presentation and Our Divisions
Gain on previously held equity interests in PBG and PAS		$ 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
Change in accounting method (LIFO to average cost) effect on net income	$ 9
Number Of Business Units	4
Number Of Divisions	6

Basis of Presentation and Our Divisions (Net Revenue and Operating Profit by Division) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 19, 2011	Mar. 20, 2010
Net Revenue	$ 11,937	$ 9,368
Operating Profit	1,726	840
FLNA [Member]
Net Revenue	2,904	2,864
Operating Profit	774	728
QFNA [Member]
Net Revenue	640	683
Operating Profit	214	195
LAF [Member]
Net Revenue	1,108	983
Operating Profit	171	145
PAB [Member]
Net Revenue	4,531	2,765
Operating Profit	558	73
Europe [Member]
Net Revenue	1,626	1,044
Operating Profit	63	118
AMEA [Member]
Net Revenue	1,128	1,029
Operating Profit	146	155
Total Division [Member]
Net Revenue	11,937	9,368
Operating Profit	1,926	1,414
Corporate Unallocated Net Impact Of Mark-To-Market On Commodity Hedges [Member]
Operating Profit	31	46
Corporate Unallocated Merger and Integration Costs [Member]
Operating Profit	(42)	(88)
Corporate Unallocated Venezuela Currency Devaluation [Member]
Operating Profit		(129)
Corporate Unallocated Asset Write-Off [Member]
Operating Profit		(145)
Corporate Unallocated Foundation Contribution [Member]
Operating Profit		(100)
Corporate Unallocated Other [Member]
Operating Profit	$ (189)	$ (158)

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

Mar. 19, 2011

Dec. 25, 2010

$ 73,085

$ 68,153

FLNA [Member]

6,072

6,027

QFNA [Member]

1,204

1,217

LAF [Member]

4,041

4,053

PAB [Member]

31,981

31,622

Europe [Member]

19,824

^[1]

13,032

^[1]

AMEA [Member]

5,629

5,569

Total Division [Member]

68,751

61,520

Corporate [Member]

4,091

^[2]

6,394

^[2]

Investments In Bottling Affiliates [Member]

$ 243

$ 239

[1]	Change in 2011 relates primarily to our acquisition of WBD.
[2]	Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments and property, plant and equipment.

Acquisitions (Narrative) (Details) In Billions, except Per Share data, unless otherwise specified			0 Months Ended	3 Months Ended
	Mar. 19, 2011	Feb. 26, 2010 PBG and PAS Acquisition [Member] USD ($)	Feb. 03, 2011 Wimm-Bill-Dann [Member] USD ($)	Mar. 19, 2011 Wimm-Bill-Dann [Member] USD ($)	Mar. 10, 2011 Wimm-Bill-Dann [Member] RUB
Total purchase price		$ 12.6	$ 5.8
Cash and equity paid		8.3
Cash paid for entity			3.8
Fair value of previously held equity interests		4.3	0.7
Fair value of remaining noncontrolling interests			1.3
Fair value of goodwill and other intangible assets acquired			4.8
Purchase Agreement, Amount				3.8
Fair value of property plant and equipment acquired			1.2
Fair value of other net assets			0.9
Fair value of debt obligations acquired			$ 1.1
Ownership in PBG and PAS after acquisition	100.00%
Acquisition to obtain a controlling interest			66.00%
Ownership in WBD after acquisition			77.00%
Tender offer for all outstanding ordinary shares in Russian Rubles					3,883.70
Tender offer for all outstanding American Depositary Share in Russian Rubles					970.925

Acquisitions (Pro Forma Financial Information) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 20, 2010
Acquisitions
Net Revenue	$ 11,112
Net Income Attributable to PepsiCo	$ 966
Net Income Attributable to PepsiCo per Common Share - Diluted	$ 0.58

Intangible Assets (Amortizable Intangible Assets, Net) (Details) (USD $) In Millions, unless otherwise specified	Mar. 19, 2011	Dec. 25, 2010
Amortizable intangible assets, gross	$ 3,746	$ 3,269
Accumulated amortization	(1,269)	(1,244)
Amortizable of intangible assets, net	2,477	2,025
Acquired Franchise Rights [Member]
Amortizable intangible assets, gross	968	949
Reacquired Franchise Rights [Member]
Amortizable intangible assets, gross	110	110
Brands [Member]
Amortizable intangible assets, gross	1,526	1,463
Other Identifiable Intangibles [Member]
Amortizable intangible assets, gross	$ 1,142	$ 747

Intangible Assets (Change in Book Value of Nonamortizable Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified

3 Months Ended

Mar. 19, 2011

$ 26,444

4,430

368

31,242

FLNA [Member]

344

349

LAF [Member]

640

642

PAB [Member]

18,986

19,076

Europe [Member]

5,440

^[1]

4,378

^[1]

325

^[1]

10,143

^[1]

AMEA [Member]

859

(2)

857

Goodwill [Member]

14,661

1,002

161

15,824

Goodwill [Member] | FLNA [Member]

313

317

Goodwill [Member] | QFNA [Member]

175

175

Goodwill [Member] | LAF [Member]

497

498

Goodwill [Member] | PAB [Member]

9,946

9,979

Goodwill [Member] | Europe [Member]

3,040

^[1]

978

^[1]

150

^[1]

4,168

^[1]

Goodwill [Member] | AMEA [Member]

690

(3)

687

Brands [Member]

1,905

3,408

138

5,451

Brands [Member] | FLNA [Member]

Brands [Member] | LAF [Member]

143

144

Brands [Member] | PAB [Member]

182

191

Brands [Member] | Europe [Member]

1,380

^[1]

3,400

^[1]

134

^[1]

4,914

^[1]

Brands [Member] | AMEA [Member]

169

170

Reacquired Franchise Rights [Member]

8,076

8,154

Reacquired Franchise Rights [Member] | PAB [Member]

7,283

7,329

Reacquired Franchise Rights [Member] | Europe [Member]

793

^[1]

^[1]

^[1]

825

^[1]

Acquired Franchise Rights [Member]

1,792

1,803

Acquired Franchise Rights [Member] | PAB [Member]

1,565

1,567

Acquired Franchise Rights [Member] | Europe [Member]

227

^[1]

^[1]

^[1]

236

^[1]

Other Intangible Assets [Member]

Other Intangible Assets [Member] | PAB [Member]

Net Income Attributable to PepsiCo per Common Share

$ 10

[1]	Net increases in 2011 relate primarily to our acquisition of WBD.

Stock-Based Compensation (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 19, 2011	Mar. 20, 2010
Stock-Based Compensation
Stock-based compensation expense	$ 72	$ 47
Merger and Integration Costs included in Stock-Based Compensation	7	27
Weighted-average grant price, stock options	63.75
Weighted-average grant price, RSUs	63.75
Stock options issued	6.4
RSUs issued	5.1
Total stock-based compensation expense	$ 79	$ 74

Stock-Based Compensation (Table of Weighted-Average Black-Scholes Fair Value Assumptions) (Details)

3 Months Ended

Mar. 19, 2011

years

Mar. 20, 2010

years

Stock-Based Compensation

Expected life, in years

Risk free interest rate

2.60%

1.60%

Expected volatility

16.00%

^[1]

18.00%

^[1]

Expected dividend yield

2.90%

2.80%

[1]	Reflects movements in our stock price over the most recent historical period equivalent to the expected life.

Pension and Retiree Medical Benefits (Components of Benefit Expense) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 19, 2011	Mar. 20, 2010
Retiree Medical [Member]
Service cost	$ 12	$ 12
Interest cost	20	20
Expected return on plan assets	(3)
Amortization of prior service cost/(benefit)	(7)	(4)
Amortization of experience loss	3	1
Gross total	25	29
Special termination benefits	1
Total expense	26	29
U.S. [Member]
Service cost	82	61
Interest cost	126	98
Expected return on plan assets	(162)	(125)
Amortization of prior service cost/(benefit)	3	3
Amortization of experience loss	33	25
Gross total	82	62
Settlement/Curtailment (gain)/loss	(9)
Special termination benefits	10	8
Total expense	83	70
International [Member]
Service cost	17	14
Interest cost	21	18
Expected return on plan assets	(24)	(22)
Amortization of prior service cost/(benefit)
Amortization of experience loss	7	4
Gross total	21	14
Settlement/Curtailment (gain)/loss
Special termination benefits
Total expense	$ 21	$ 14

Income Taxes (Reserves Rollforward) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 19, 2011	Dec. 25, 2010
Income Taxes
Balance, beginning of year	$ 2,022	$ 1,731
Additions for tax positions related to the current year	41	204
Additions for tax positions from prior years		517
Reductions for tax positions from prior years	(29)	(391)
Settlement payments	(87)	(30)
Statute of limitations expiration	(4)	(7)
Translation and other	1	(2)
Balance, end of period	$ 1,944	$ 2,022

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

3 Months Ended

Mar. 19, 2011

Mar. 20, 2010

Net income attributable to PepsiCo

$ 1,143

$ 1,430

Dividends, Preferred

Redemption premium

(2)

(1)

Net income available for PepsiCo common shareholders

1,141

1,429

Net income available for PepsiCo common stockholders-shares

1,583

^[1]

1,582

^[1]

Basic net income attributable to PepsiCo per common share

$ 0.72

$ 0.90

Stock options and RSUs-value

^[2]

Stock options and RSUs-shares

^[1],[2]

ESOP convertible preferred stock-value

ESOP convertible preferred stock-shares

^[1]

Diluted shares-value

$ 1,143

$ 1,430

Diluted-shares

1,605

^[1]

1,606

^[1]

Diluted net income attributable to PepsiCo per common share

$ 0.71

$ 0.89

Out-of-the money options excluded from earnings per share

31.3

20.7

Out-of-the money options average exercise price

$ 66.85

$ 67.02

[1]	Weighted-average common shares outstanding (in millions).
[2]	Options to purchase 31.3 million shares in 2011 and 20.7 million shares in 2010 were not included in the calculation of earnings per share because these options were out-of-the-money. Out-of-the-money options had an average exercise price of $66.85 in 2011 and $67.02 in 2010.

Merger and Integration Charges (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 19, 2011	Mar. 20, 2010
Merger and integration costs (credit)	$ 55	$ 321
Merger and integration charges recorded within corporate unallocated expenses	42	88
Interest expense	180	154
Bottling Equity Income [Member]
Merger and integration costs (credit)		9
PBG and PAS Acquisition [Member]
Merger and integration costs (credit)		312
Interest expense		30
PBG PAS and WBD Acquisitions [Member]
Merger and integration costs (credit)	55
Merger and integration charges, after-tax impact	49	261
Merger and integration charges, after-tax impact per share	$ 0.03	$ 0.16
PAB [Member]
Merger and integration costs (credit)	21	193
Europe [Member]
Merger and integration costs (credit)	$ (8)	$ 1

Merger and Integration Charges (Merger and Integration Activity) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended			12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended
	Mar. 19, 2011	Mar. 20, 2010	Mar. 19, 2011 Severance and Other Employee Costs [Member]	Dec. 25, 2010 Severance and Other Employee Costs [Member]	Mar. 19, 2011 Other Costs [Member]	Dec. 25, 2010 Other Costs [Member]	Mar. 19, 2011 Total [Member]	Dec. 25, 2010 Total [Member]
2011 merger and integration charges			$ 8		$ 47		$ 55
Cash payments for merger and integration costs	(117)	(85)	(43)		(74)		(117)
Non-cash charges	(55)	(321)	(20)		17		(3)
Liability			$ 124	$ 179	$ 15	$ 25	$ 139	$ 204

Financial Instruments (Narrative) (Details) (USD $)		3 Months Ended			3 Months Ended
Financial Instruments (Narrative) (Details) (USD $)	Mar. 19, 2011	Mar. 19, 2011 Interest Rate Contract [Member]	Dec. 25, 2010 Interest Rate Contract [Member]	Mar. 20, 2010 Interest Rate Contract [Member]	Mar. 19, 2011 Foreign Exchange Contract [Member]	Mar. 20, 2010 Foreign Exchange Contract [Member]	Mar. 19, 2011 Commodity Contract [Member]	Mar. 20, 2010 Commodity Contract [Member]
Expected reclassification of net gain (loss) related to hedge from accumulated OCI into net income		$ (13,000,000)			$ (30,000,000)		$ 34,000,000
Face value of open commodity derivative contracts qualifying for hedging							573,000,000	582,000,000
Unrealized gain (loss) on derivatives and commodity contracts					(34,000,000)	(29,000,000)	73,000,000	72,000,000
Derivative asset not designated as hedging instrument, face value							300,000,000	221,000,000
Derivative instruments not designated as hedging instruments inception to date gain					5,000,000		58,000,000	20,000,000
Foreign currency derivatives at face value, net					2,300,000,000	1,400,000,000
Derivative instruments not designated as hedging instruments, loss						5,000,000
Notional amount of interest rate derivatives		9,230,000,000		8,350,000,000
Percentage of total debt, net of related interest rate derivatives, exposed to variable interest rates		44.00%	43.00%
Debt instrument, fair value	$ 28,900,000,000

Financial Instruments (Fair Values of Financial Assets and Liabilities) (Details) (USD $)
In Millions, unless otherwise specified

Mar. 19, 2011

Mar. 20, 2010

Available-for-sale securities

$ 70

^[1],[2]

$ 69

^[1],[2]

Short-term investments - index funds, at fair value

177

^[1],[3]

123

^[1],[3]

Derivatives designated as hedging instruments, Assets, Total

390

^[1]

329

^[1]

Derivatives not designated as hedging instruments, Assets, Total

122

^[1]

Total asset derivatives at fair value

512

^[1]

407

^[1]

Total Financial Assets at Fair Value

759

^[1]

599

^[1]

Deferred compensation

553

^[1],[4]

572

^[1],[4]

Derivatives designated as hedging instruments, Liabilities, Total

^[1]

Derivatives not designated as hedging instruments, Liabilities, Total

^[1]

Total liability derivatives at fair value

135

^[1]

172

^[1]

Total Financial Liabilities at Fair Value

688

^[1]

744

^[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]

296

^[1],[5]

207

^[1],[5]

Commodity contracts - futures

^[1],[6]

112

^[1],[6]

^[1],[8]

Level 1 Fair Values Of Assets And Liabilities [Member]

Deferred compensation

$ 63

$ 124

[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. As of March 19, 2011 and March 20, 2010, $63 million and $124 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

3 Months Ended

Mar. 19, 2011

Mar. 20, 2010

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

$ (60)

^[1]

$ (48)

(21)

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

^[2]

Commodity Contract [Member]

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

(39)

^[1]

(46)

(40)

(12)

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

(6)

^[2]

Prepaid Forward Contracts [Member]

^[1]

(18)

Forward Exchange Contracts [Member]

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

(1)

^[1]

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

^[2]

Interest Rate Contract [Member]