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 24 weeks ended June 12, 2010.


	(unaudited) 24 Weeks Ended
	6/12/10
Net Revenue	$	25,913
Net Income Attributable to PepsiCo	$	2,569
Net Income Attributable to PepsiCo per Common Share – Diluted	$	1.56

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 either have occurred or 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 acquired the ordinary shares, including shares underlying 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 in cash. The acquisition of those shares increased our total ownership of WBD to approximately 77%. Under the guidance on accounting for business combinations, 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 $4.9 billion; property, plant and equipment of $1.3 billion; debt obligations of $1.1 billion; and other net assets of $0.7 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 tender offers in Russia and the U.S. for all remaining outstanding ordinary shares and ADSs of WBD for 3,883.70 Russian rubles per ordinary share and 970.925 Russian rubles per ADS, respectively. The Russian offer was made to all holders of ordinary shares and the U.S. offer was made to all holders of ADSs. We completed the Russian offer on May 19, 2011 and the U.S. offer on May 16, 2011. After completion of the offers, we paid approximately $1.3 billion for WBD's ordinary shares (including shares underlying ADSs) and increased our total ownership of WBD to approximately 98.6%.

On June 30, 2011, we elected to exercise our squeeze-out rights under Russian law with respect to all remaining WBD ordinary shares not already owned by us. Therefore, under Russian law, all remaining WBD shareholders will be required to sell their ordinary shares (including those underlying ADSs) to us at the same price that was offered to WBD shareholders in the Russian tender offer. Accordingly, all registered holders of ordinary shares on August 15, 2011 (including the ADS depository) will be entitled to receive 3,883.70 Russian rubles per ordinary share. The ADS depository will convert the Russian rubles paid to it with respect to the ordinary shares underlying the ADSs (970.925 Russian rubles per ADS) to U.S. dollars at the spot market conversion rates available to it during the period it takes to complete such conversion. The squeeze-out process is expected to be concluded by mid-September 2011, after which time we expect to own 100% of WBD.

Intangible Assets

6 Months Ended

Jun. 11, 2011

Intangible Assets

Intangible Assets

Intangible Assets


	6/11/11			12/25/10
*Amortizable intangible assets, net*
Acquired franchise rights	$	974		$	949
Reacquired franchise rights		110			110
Brands		1,543			1,463
Other identifiable intangibles		1,170			747

		3,797			3,269
Accumulated amortization		(1,317	)		(1,244	)

	$	2,480		$	2,025

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


	Balance 12/25/10		Acquisitions		Translation and Other		Balance 6/11/11
*FLNA*
Goodwill	$	313	$	–	$	6	$	319
Brands		31		–		1		32

		344		–		7		351

*QFNA*
Goodwill		175		–		–		175

*LAF*
Goodwill		497		–		13		510
Brands		143		–		4		147

		640		–		17		657

*PAB*
Goodwill		9,946		26		22		9,994
Reacquired franchise rights		7,283		20		38		7,341
Acquired franchise rights		1,565		–		3		1,568
Brands		182		8		5		195
Other		10		–		1		11

		18,986		54		69		19,109

*Europe*^(a)
Goodwill		3,040		1,228		314		4,582
Reacquired franchise rights		793		–		62		855
Acquired franchise rights		227		–		19		246
Brands		1,380		3,300		296		4,976

		5,440		4,528		691		10,659

*AMEA*
Goodwill		690		–		29		719
Brands		169		–		8		177

		859		–		37		896

Total goodwill		14,661		1,254		384		16,299
Total reacquired franchise rights		8,076		20		100		8,196
Total acquired franchise rights		1,792		–		22		1,814
Total brands		1,905		3,308		314		5,527
Total other		10		–		1		11

	$	26,444	$	4,582	$	821	$	31,847

^(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

6 Months Ended

Jun. 11, 2011

Stock-Based Compensation

Stock-Based Compensation

Stock-Based Compensation

For the 12 weeks ended June 11, 2011, we recognized stock-based compensation expense of $76 million ($74 million recorded as stock-based compensation expense and $2 million included in merger and integration charges). For the 24 weeks ended June 11, 2011, we recognized stock-based compensation expense of $155 million ($146 million recorded as stock-based compensation expense and $9 million included in merger and integration charges). For the 12 weeks ended June 12, 2010, we recognized stock-based compensation expense of $85 million ($72 million recorded as stock-based compensation expense and $13 million included in merger and integration charges). For the 24 weeks ended June 12, 2010, we recognized stock-based compensation expense of $159 million ($119 million recorded as stock-based compensation expense and $40 million included in merger and integration charges).

For the 12 weeks ended June 11, 2011, our grants of stock options and restricted stock units (RSU) were nominal. For the 24 weeks ended June 11, 2011, we granted 6.4 million stock options at a weighted-average grant price of $63.78 and 5.2 million RSUs at a weighted-average grant price of $63.81, under the terms of our 2007 Long-Term Incentive Plan. For the 12 and 24 weeks ended June 12, 2010, we granted 12.0 million stock options and 4.6 million RSUs at weighted-average grant prices of $66.50 and $66.46, respectively, under the terms of our 2007 Long-Term Incentive Plan.

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


	24 Weeks Ended
	6/11/11			6/12/10
Expected life		6 yrs.			5 yrs.
Risk free interest rate		2.6	%		2.3	%
Expected volatility^(a)		16	%		17	%
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

6 Months Ended

Jun. 11, 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
	6/11/11			6/12/10			6/11/11			6/12/10			6/11/11			6/12/10
	U.S.						International
Service cost	$	80		$	69		$	23		$	19		$	11		$	14
Interest cost		126			120			28			26			21			23
Expected return on plan assets		(162	)		(150	)		(33	)		(31	)		(4	)		–
Amortization of prior service cost/(benefit)		4			2			1			1			(6	)		(4	)
Amortization of experience loss		34			25			9			6			3			1

		82			66			28			21			25			34

Settlement/Curtailment gain		–			(2	)		–			–			–			–
Special termination benefits		–			15			–			–			–			1

Total expense	$	82		$	79		$	28		$	21		$	25		$	35


	24 Weeks Ended
	Pension												Retiree Medical
	6/11/11			6/12/10			6/11/11			6/12/10			6/11/11			6/12/10
	U.S.						International
Service cost	$	162		$	130		$	40		$	33		$	23		$	26
Interest cost		252			218			49			44			41			43
Expected return on plan assets		(324	)		(275	)		(57	)		(53	)		(7	)		–
Amortization of prior service cost/(benefit)		7			5			1			1			(13	)		(8	)
Amortization of experience loss		67			50			16			10			6			2

		164			128			49			35			50			63

Settlement/Curtailment gain		(9	)		(2	)		–			–			–			–
Special termination benefits		10			23			–			–			1			1

Total expense	$	165		$	149		$	49		$	35		$	51		$	64

- 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

6 Months Ended

Jun. 11, 2011

Income Taxes

Income Taxes

Income Taxes

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


	6/11/11			12/25/10
Balance, beginning of year	$	2,022		$	1,731
Additions for tax positions related to the current year		85			204
Additions for tax positions from prior years		4			517
Reductions for tax positions from prior years		(54	)		(391	)
Settlement payments		(87	)		(30	)
Statute of limitations expiration		(5	)		(7	)
Translation and other		(2	)		(2	)

Balance, end of period	$	1,963		$	2,022

Net Income Attributable to PepsiCo per Common Share

6 Months Ended

Jun. 11, 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
	6/11/11					6/12/10
	Income			Shares^(a)		Income			Shares^(a)
Net income attributable to PepsiCo	$	1,885				$	1,603
Preferred shares:
Dividends		(1	)				(1	)
Redemption premium		(1	)				(1	)

Net income available for PepsiCo common shareholders	$	1,883			1,583	$	1,601			1,608

Basic net income attributable to PepsiCo per common share	$	1.19				$	1.00

Net income available for PepsiCo common shareholders	$	1,883			1,583	$	1,601			1,608
Dilutive securities:
Stock options and RSUs^(b)		–			21		–			25
ESOP convertible preferred stock		2			1		2			1

Diluted	$	1,885			1,605	$	1,603			1,634

Diluted net income attributable to PepsiCo per common share	$	1.17				$	0.98


	24 Weeks Ended
	6/11/11					6/12/10
	Income			Shares^(a)		Income			Shares^(a)
Net income attributable to PepsiCo	$	3,028				$	3,033
Preferred shares:
Dividends		(1	)				(1	)
Redemption premium		(3	)				(2	)

Net income available for PepsiCo common shareholders	$	3,024			1,583	$	3,030			1,595

Basic net income attributable to PepsiCo per common share	$	1.91				$	1.90

Net income available for PepsiCo common shareholders	$	3,024			1,583	$	3,030			1,595
Dilutive securities:
Stock options and RSUs^(b)		–			21		–			24
ESOP convertible preferred stock		4			1		3			1

Diluted	$	3,028			1,605	$	3,033			1,620

Diluted net income attributable to PepsiCo per common share	$	1.89				$	1.87

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

^(b)

Options to purchase 10.1 million and 20.7 million shares, respectively, for the 12 and 24 weeks in 2011 were not included in the calculation of earnings per share because these options were out-of-the-money. These out-of-the-money options had average exercise prices of $68.88 and $67.35, respectively. Options to purchase 22.9 million and 21.8 million shares, respectively, for the 12 and 24 weeks 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 for the 12 and 24 weeks in 2010 had average exercise prices of $67.60 and $67.33, respectively.

Debt Obligations and Commitments

6 Months Ended

Jun. 11, 2011

Debt Obligations and Commitments

Debt Obligations and Commitments

Debt Obligations and Commitments

In the second quarter of 2011, we issued $750 million of floating rate notes maturing in 2013, which bear interest at a rate equal to the three-month London Inter-Bank Offered Rate (LIBOR) plus 8 basis points, and $1.0 billion of 2.50% senior notes maturing in 2016. The net proceeds from the issuance of these notes were used for general corporate purposes.

Subsequent to the end of the second quarter of 2011, we entered into a new four-year unsecured revolving credit agreement (Four-Year Credit Agreement) which enables us to borrow up to $2.875 billion, subject to customary terms and conditions, and expires in June 2015. We may request to increase the commitments under this agreement to up to $3.5 billion. Additionally, we may, once a year, request renewal of the agreement for an additional one-year period.

Also, subsequent to the end of the second quarter of 2011, we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit Agreement) which enables us to borrow up to $2.875 billion, subject to customary terms and conditions, and expires in June 2012. We may request to increase the commitments under this agreement to up to $3.5 billion. 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 2013.

The Four-Year Credit Agreement and the 364-Day Credit Agreement, together replaced our $2 billion unsecured revolving credit agreement, our $2.575 billion 364-day unsecured revolving credit agreement and our $1.080 billion amended PBG credit facility. Funds borrowed under the Four-Year Credit Agreement and the 364-Day Credit Agreement may be used for general corporate purposes, including but not limited to repayment of outstanding commercial paper issued by us and our subsidiaries, working capital, capital investments and/or acquisitions.

Subsequent to the end of the second quarter of 2011, we paid $784 million in a cash tender offer to repurchase $766 million (aggregate principal amount) of certain WBD debt obligations. As a result of this debt repurchase, we will record a $16 million charge to interest expense in the third quarter, primarily representing the premium paid in the tender offer.

As of June 11, 2011, we had $2.2 billion of commercial paper outstanding.

Long-Term Contractual Commitments^(a)


Payments Due by Period
	Total		2011		2012 – 2013		2014 – 2015		2016 and beyond

Long-term debt obligations^(b)	$	21,016	$	–	$	5,167	$	4,353	$	11,496
Interest on debt obligations^(c)		7,556		467		1,574		1,125		4,390
Operating leases		1,901		253		678		406		564
Purchasing commitments		3,496		931		2,077		406		82
Marketing commitments		2,555		102		562		543		1,348

	$	36,524	$	1,753	$	10,058	$	6,833	$	17,880

^(a)	Reflects non-cancelable commitments as of June 11, 2011 based on foreign exchange rates in effect on that date and excludes any reserves for uncertain tax positions as we are unable to reasonably predict the ultimate amount or timing of settlement.

^(b)	Excludes $2.4 billion related to current maturities of long-term debt, as well as $591 million related to the fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS.

^(c)	Interest payments on floating-rate debt are estimated using interest rates effective as of June 11, 2011.

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, sugar and other sweeteners, 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 Pension and Retiree Medical Benefits for additional information regarding our pension and retiree medical obligations.

Merger and Integration Charges

6 Months Ended

Jun. 11, 2011

Merger and Integration Charges

Merger and Integration Charges

Merger and Integration Charges

In the 12 weeks ended June 11, 2011, we incurred merger and integration charges of $58 million ($45 million after-tax or $0.03 per share) related to our acquisitions of PBG, PAS and WBD, including $32 million recorded in the PAB segment, $14 million recorded in the Europe segment and $12 million recorded in corporate unallocated expenses. In the 24 weeks ended June 11, 2011, we incurred merger and integration charges of $113 million ($94 million after-tax or $0.06 per share) related to our acquisitions of PBG, PAS and WBD, including $53 million recorded in the PAB segment, $6 million recorded in the Europe segment and $54 million recorded in corporate unallocated expenses. 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 June 12, 2010, we incurred merger and integration charges of $155 million related to our acquisitions of PBG and PAS, including $103 million recorded in the PAB segment, $28 million recorded in the Europe segment and $24 million recorded in corporate unallocated expenses. In the 24 weeks ended June 12, 2010, we incurred merger and integration charges of $467 million related to our acquisitions of PBG and PAS, including $296 million recorded in the PAB segment, $29 million recorded in the Europe segment, $112 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, in the first quarter of 2010, 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 $119 million ($0.07 per share) and $380 million ($0.23 per share) for the 12 and 24 weeks ended June 12, 2010, respectively.

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		36			77			113
Cash payments		(101	)		(106	)		(207	)
Non-cash charges		(35	)		14			(21	)

Liability as of June 11, 2011	$	79		$	10		$	89

Financial Instruments

6 Months Ended

Jun. 11, 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.

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 $30 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 June 11, 2011 and $587 million as of June 12, 2010. These contracts resulted in net unrealized gains of $61 million as of June 11, 2011 and net unrealized losses of $15 million as of June 12, 2010.

Our open commodity derivative contracts that do not qualify for hedge accounting had a face value of $356 million as of June 11, 2011 and $246 million as of June 12, 2010. These contracts resulted in net gains of $45 million as of June 11, 2011 and net losses of $14 million as of June 12, 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 June 11, 2011 and $1.3 billion as of June 12, 2010. The contracts that qualify for hedge accounting resulted in net unrealized losses of $29 million as of June 11, 2011 and net unrealized gains of $5 million as of June 12, 2010. During the next 12 months, we expect to reclassify net losses of $28 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 $7 million as of June 11, 2011 and net gains of $6 million as of June 12, 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 June 11, 2011 and June 12, 2010 were $8.73 billion and $8.60 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 $16 million related to these hedges from accumulated other comprehensive loss into net income.

As of June 11, 2011, approximately 42% 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 June 11, 2011 and June 12, 2010 are categorized as follows:


	2011				2010
	Assets^(a)		Liabilities^(a)		Assets^(a)		Liabilities^(a)
Available-for-sale securities^(b)	$	85	$	–	$	79	$	–
Short-term investments – index funds^(c)	$	176	$	–	$	144	$	–
Deferred compensation^(d)	$	–	$	547	$	–	$	554

Derivatives designated as hedging instruments:
Forward exchange contracts^(e)	$	7	$	36	$	24	$	19
Interest rate derivatives^(f)		345		14		268		27
Commodity contracts – other^(g)		73		3		37		27
Commodity contracts – futures^(h)		1		10		–		26

	$	426	$	63	$	329	$	99

Derivatives not designated as hedging instruments:
Forward exchange contracts^(e)	$	8	$	15	$	12	$	6
Interest rate derivatives^(f)		44		81		7		48
Commodity contracts – other^(g)		47		2		5		19
Commodity contracts – futures^(h)		–		–		–		1
Prepaid forward contracts⁽ⁱ⁾		41		–		61		–

	$	140	$	98	$	85	$	74


Total derivatives at fair value	$	566	$	161	$	414	$	173

Total	$	827	$	708	$	637	$	727

^(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 June 11, 2011 and June 12, 2010, $46 million and $144 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 June 11, 2011 was $29.2 billion, based upon prices of similar instruments in the marketplace.

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


	12 Weeks Ended
	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)
		6/11/11			6/12/10			6/11/11			6/12/10			6/11/11			6/12/10

Forward exchange contracts	$	2		$	(11	)	$	12		$	(21	)	$	16		$	11
Interest rate derivatives		(56	)		(70	)		35			23			3			–
Prepaid forward contracts		(4	)		3			–			–			–			–
Commodity contracts		(7	)		3			(15	)		70			(19	)		–

Total	$	(65	)	$	(75	)	$	32		$	72		$	–		$	11


	24 Weeks Ended
	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)
		6/11/11			6/12/10			6/11/11			6/12/10			6/11/11			6/12/10

Forward exchange contracts	$	1		$	(5	)	$	37		$	(8	)	$	21		$	22
Interest rate derivatives		(78	)		(60	)		29			36			6			–
Prepaid forward contracts		(2	)		(15	)		–			–			–			–
Commodity contracts		(46	)		(43	)		(55	)		58			(25	)		16

Total	$	(125	)	$	(123	)	$	11		$	86		$	2		$	38

^(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.

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Jun. 11, 2011
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2011, the Financial Accounting Standards Board (FASB) amended its guidance on the presentation of comprehensive income in financial statements to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items that are recorded in other comprehensive income. The new accounting guidance requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. The provisions of this new guidance are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. We are currently evaluating the impact of adopting this guidance on our financial statements.

Basis of Presentation and Our Divisions (Policy)	6 Months Ended
Basis of Presentation and Our Divisions (Policy)	Jun. 11, 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)

6 Months Ended

Jun. 11, 2011

Net Revenue And Operating Profit [Member]

Schedule Of Segment Reporting Information, By Segment

	12 Weeks Ended						24 Weeks Ended
	6/11/11			6/12/10			6/11/11			6/12/10
Net Revenue
FLNA	$	3,090		$	2,992		$	5,994		$	5,856
QFNA		583			582			1,223			1,265
LAF		1,808			1,538			2,916			2,521
PAB		5,629			5,548			10,160			8,313
Europe^(a)		3,794			2,498			5,420			3,542
AMEA		1,923			1,643			3,051			2,672

	$	16,827		$	14,801		$	28,764		$	24,169


	12 Weeks Ended						24 Weeks Ended
	6/11/11			6/12/10			6/11/11			6/12/10
Operating Profit
FLNA	$	853		$	800		$	1,627		$	1,528
QFNA		167			159			381			354
LAF		274			233			445			378
PAB		983			952			1,541			1,025
Europe		407			276			470			394
AMEA		299			267			445			422

Total division		2,983			2,687			4,909			4,101
Corporate Unallocated
Net impact of mark-to-market on commodity hedges		(9	)		(4	)		22			42
Merger and integration costs		(12	)		(24	)		(54	)		(112	)
Venezuela currency devaluation		–			–			–			(129	)
Asset write-off		–			–			–			(145	)
Foundation contribution		–			–			–			(100	)
Other		(208	)		(198	)		(397	)		(356	)

	$	2,754		$	2,461		$	4,480		$	3,301

^(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.

Total Assets [Member]

Schedule Of Segment Reporting Information, By Segment


	Total Assets
	6/11/11		12/25/10
FLNA	$	6,217	$	6,027
QFNA		1,194		1,217
LAF		4,327		4,053
PAB		33,006		31,622
Europe^(a)		21,637		13,032
AMEA		5,906		5,569

Total division		72,287		61,520
Corporate^(b ⁾		3,393		6,394
Investments in bottling affiliates		–		239

	$	75,680	$	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)

6 Months Ended

Jun. 11, 2011

Acquisitions

Pro Forma Financial Information


	(unaudited) 24 Weeks Ended
	6/12/10
Net Revenue	$	25,913
Net Income Attributable to PepsiCo	$	2,569
Net Income Attributable to PepsiCo per Common Share – Diluted	$	1.56

Intangible Assets (Tables)

6 Months Ended

Jun. 11, 2011

Intangible Assets

Amortizable Intangible Assets, Net


	6/11/11			12/25/10
*Amortizable intangible assets, net*
Acquired franchise rights	$	974		$	949
Reacquired franchise rights		110			110
Brands		1,543			1,463
Other identifiable intangibles		1,170			747

		3,797			3,269
Accumulated amortization		(1,317	)		(1,244	)

	$	2,480		$	2,025

Change in Book Value of Nonamortizable Intangible Assets


	Balance 12/25/10		Acquisitions		Translation and Other		Balance 6/11/11
*FLNA*
Goodwill	$	313	$	–	$	6	$	319
Brands		31		–		1		32

		344		–		7		351

*QFNA*
Goodwill		175		–		–		175

*LAF*
Goodwill		497		–		13		510
Brands		143		–		4		147

		640		–		17		657

*PAB*
Goodwill		9,946		26		22		9,994
Reacquired franchise rights		7,283		20		38		7,341
Acquired franchise rights		1,565		–		3		1,568
Brands		182		8		5		195
Other		10		–		1		11

		18,986		54		69		19,109

*Europe*^(a)
Goodwill		3,040		1,228		314		4,582
Reacquired franchise rights		793		–		62		855
Acquired franchise rights		227		–		19		246
Brands		1,380		3,300		296		4,976

		5,440		4,528		691		10,659

*AMEA*
Goodwill		690		–		29		719
Brands		169		–		8		177

		859		–		37		896

Total goodwill		14,661		1,254		384		16,299
Total reacquired franchise rights		8,076		20		100		8,196
Total acquired franchise rights		1,792		–		22		1,814
Total brands		1,905		3,308		314		5,527
Total other		10		–		1		11

	$	26,444	$	4,582	$	821	$	31,847

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

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 11, 2011

Stock-Based Compensation

Table of Weighted-Average Black-Scholes Fair Value Assumptions


	24 Weeks Ended
	6/11/11			6/12/10
Expected life		6 yrs.			5 yrs.
Risk free interest rate		2.6	%		2.3	%
Expected volatility^(a)		16	%		17	%
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)

6 Months Ended

Jun. 11, 2011

Pension and Retiree Medical Benefits

Components of Benefit Expense


	12 Weeks Ended
	Pension												Retiree Medical
	6/11/11			6/12/10			6/11/11			6/12/10			6/11/11			6/12/10
	U.S.						International
Service cost	$	80		$	69		$	23		$	19		$	11		$	14
Interest cost		126			120			28			26			21			23
Expected return on plan assets		(162	)		(150	)		(33	)		(31	)		(4	)		–
Amortization of prior service cost/(benefit)		4			2			1			1			(6	)		(4	)
Amortization of experience loss		34			25			9			6			3			1

		82			66			28			21			25			34

Settlement/Curtailment gain		–			(2	)		–			–			–			–
Special termination benefits		–			15			–			–			–			1

Total expense	$	82		$	79		$	28		$	21		$	25		$	35


	24 Weeks Ended
	Pension												Retiree Medical
	6/11/11			6/12/10			6/11/11			6/12/10			6/11/11			6/12/10
	U.S.						International
Service cost	$	162		$	130		$	40		$	33		$	23		$	26
Interest cost		252			218			49			44			41			43
Expected return on plan assets		(324	)		(275	)		(57	)		(53	)		(7	)		–
Amortization of prior service cost/(benefit)		7			5			1			1			(13	)		(8	)
Amortization of experience loss		67			50			16			10			6			2

		164			128			49			35			50			63

Settlement/Curtailment gain		(9	)		(2	)		–			–			–			–
Special termination benefits		10			23			–			–			1			1

Total expense	$	165		$	149		$	49		$	35		$	51		$	64

Income Taxes (Tables)

6 Months Ended

Jun. 11, 2011

Income Taxes

Reserves Rollforward


	6/11/11			12/25/10
Balance, beginning of year	$	2,022		$	1,731
Additions for tax positions related to the current year		85			204
Additions for tax positions from prior years		4			517
Reductions for tax positions from prior years		(54	)		(391	)
Settlement payments		(87	)		(30	)
Statute of limitations expiration		(5	)		(7	)
Translation and other		(2	)		(2	)

Balance, end of period	$	1,963		$	2,022

Net Income Attributable to PepsiCo per Common Share (Tables)

6 Months Ended

Jun. 11, 2011

Net Income Attributable to PepsiCo per Common Share

Basic and Diluted Net Income Attributable to PepsiCo Per Common Share


	12 Weeks Ended
	6/11/11					6/12/10
	Income			Shares^(a)		Income			Shares^(a)
Net income attributable to PepsiCo	$	1,885				$	1,603
Preferred shares:
Dividends		(1	)				(1	)
Redemption premium		(1	)				(1	)

Net income available for PepsiCo common shareholders	$	1,883			1,583	$	1,601			1,608

Basic net income attributable to PepsiCo per common share	$	1.19				$	1.00

Net income available for PepsiCo common shareholders	$	1,883			1,583	$	1,601			1,608
Dilutive securities:
Stock options and RSUs^(b)		–			21		–			25
ESOP convertible preferred stock		2			1		2			1

Diluted	$	1,885			1,605	$	1,603			1,634

Diluted net income attributable to PepsiCo per common share	$	1.17				$	0.98


	24 Weeks Ended
	6/11/11					6/12/10
	Income			Shares^(a)		Income			Shares^(a)
Net income attributable to PepsiCo	$	3,028				$	3,033
Preferred shares:
Dividends		(1	)				(1	)
Redemption premium		(3	)				(2	)

Net income available for PepsiCo common shareholders	$	3,024			1,583	$	3,030			1,595

Basic net income attributable to PepsiCo per common share	$	1.91				$	1.90

Net income available for PepsiCo common shareholders	$	3,024			1,583	$	3,030			1,595
Dilutive securities:
Stock options and RSUs^(b)		–			21		–			24
ESOP convertible preferred stock		4			1		3			1

Diluted	$	3,028			1,605	$	3,033			1,620

Diluted net income attributable to PepsiCo per common share	$	1.89				$	1.87

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

^(b)

Debt Obligations and Commitments (Tables)

6 Months Ended

Jun. 11, 2011

Debt Obligations and Commitments

Long-term Contractual Commitments


Payments Due by Period
	Total		2011		2012 – 2013		2014 – 2015		2016 and beyond

Long-term debt obligations^(b)	$	21,016	$	–	$	5,167	$	4,353	$	11,496
Interest on debt obligations^(c)		7,556		467		1,574		1,125		4,390
Operating leases		1,901		253		678		406		564
Purchasing commitments		3,496		931		2,077		406		82
Marketing commitments		2,555		102		562		543		1,348

	$	36,524	$	1,753	$	10,058	$	6,833	$	17,880

^(a)	Reflects non-cancelable commitments as of June 11, 2011 based on foreign exchange rates in effect on that date and excludes any reserves for uncertain tax positions as we are unable to reasonably predict the ultimate amount or timing of settlement.

^(b)	Excludes $2.4 billion related to current maturities of long-term debt, as well as $591 million related to the fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS.

^(c)	Interest payments on floating-rate debt are estimated using interest rates effective as of June 11, 2011.

Financial Instruments (Tables)

6 Months Ended

Jun. 11, 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)	$	85	$	–	$	79	$	–
Short-term investments – index funds^(c)	$	176	$	–	$	144	$	–
Deferred compensation^(d)	$	–	$	547	$	–	$	554

Derivatives designated as hedging instruments:
Forward exchange contracts^(e)	$	7	$	36	$	24	$	19
Interest rate derivatives^(f)		345		14		268		27
Commodity contracts – other^(g)		73		3		37		27
Commodity contracts – futures^(h)		1		10		–		26

	$	426	$	63	$	329	$	99

Derivatives not designated as hedging instruments:
Forward exchange contracts^(e)	$	8	$	15	$	12	$	6
Interest rate derivatives^(f)		44		81		7		48
Commodity contracts – other^(g)		47		2		5		19
Commodity contracts – futures^(h)		–		–		–		1
Prepaid forward contracts⁽ⁱ⁾		41		–		61		–

	$	140	$	98	$	85	$	74


Total derivatives at fair value	$	566	$	161	$	414	$	173

Total	$	827	$	708	$	637	$	727

^(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 June 11, 2011 and June 12, 2010, $46 million and $144 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
	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)
		6/11/11			6/12/10			6/11/11			6/12/10			6/11/11			6/12/10

Forward exchange contracts	$	2		$	(11	)	$	12		$	(21	)	$	16		$	11
Interest rate derivatives		(56	)		(70	)		35			23			3			–
Prepaid forward contracts		(4	)		3			–			–			–			–
Commodity contracts		(7	)		3			(15	)		70			(19	)		–

Total	$	(65	)	$	(75	)	$	32		$	72		$	–		$	11


	24 Weeks Ended
	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)
		6/11/11			6/12/10			6/11/11			6/12/10			6/11/11			6/12/10

Forward exchange contracts	$	1		$	(5	)	$	37		$	(8	)	$	21		$	22
Interest rate derivatives		(78	)		(60	)		29			36			6			–
Prepaid forward contracts		(2	)		(15	)		–			–			–			–
Commodity contracts		(46	)		(43	)		(55	)		58			(25	)		16

Total	$	(125	)	$	(123	)	$	11		$	86		$	2		$	38

^(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		6 Months Ended
	Mar. 19, 2011	Mar. 20, 2010	Jun. 12, 2010
Basis of Presentation and Our Divisions
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
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

6 Months Ended

Jun. 11, 2011

Jun. 12, 2010

Jun. 11, 2011

Jun. 12, 2010

$ 16,827

$ 14,801

$ 28,764

$ 24,169

2,754

2,461

4,480

3,301

FLNA [Member]

3,090

2,992

5,994

5,856

853

800

1,627

1,528

QFNA [Member]

583

582

1,223

1,265

167

159

381

354

LAF [Member]

1,808

1,538

2,916

2,521

274

233

445

378

PAB [Member]

5,629

5,548

10,160

8,313

983

952

1,541

1,025

Europe [Member]

3,794

^[1]

2,498

^[1]

5,420

^[1]

3,542

^[1]

407

276

470

394

AMEA [Member]

1,923

1,643

3,051

2,672

299

267

445

422

Total Division [Member]

2,983

2,687

4,909

4,101

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

(9)

(4)

Corporate Unallocated Merger and Integration Costs [Member]

(12)

(24)

(54)

(112)

Corporate Unallocated Venezuela Currency Devaluation [Member]

(129)

Corporate Unallocated Asset Write-Off [Member]

(145)

Corporate Unallocated Foundation Contribution [Member]

(100)

Corporate Unallocated Other [Member]

$ (208)

$ (198)

$ (397)

$ (356)

[1]	Change in 2011 relates primarily to our acquisition of WBD.

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

Jun. 11, 2011

Dec. 25, 2010

$ 75,680

$ 68,153

FLNA [Member]

6,217

6,027

QFNA [Member]

1,194

1,217

LAF [Member]

4,327

4,053

PAB [Member]

33,006

31,622

Europe [Member]

21,637

^[1]

13,032

^[1]

AMEA [Member]

5,906

5,569

Total Division [Member]

72,287

61,520

Corporate [Member]

3,393

^[2]

6,394

^[2]

Investments In Bottling Affiliates [Member]

$ 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			6 Months Ended
	Jun. 11, 2011	Feb. 26, 2010 PBG and PAS Acquisition [Member] USD ($)	Mar. 10, 2011 Wimm-Bill-Dann [Member] USD ($)	Mar. 10, 2011 Wimm-Bill-Dann [Member] RUB	Feb. 03, 2011 Wimm-Bill-Dann [Member] USD ($)	Jun. 11, 2011 Wimm-Bill-Dann [Member]	Jul. 01, 2011 Wimm-Bill-Dann [Member] RUB
Total purchase price		$ 12.6			$ 5.8
Cash and equity paid		8.3
Cash paid for entity			1.3		3.8
Cash paid, net of cash acquired					2.4
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					4.9
Fair value of property plant and equipment acquired					1.3
Fair value of other net assets					0.7
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			98.60%	98.60%	77.00%
Tender offer for all outstanding ordinary shares in Russian Rubles				3,883.70			3,883.70
Tender offer for all outstanding American Depositary Share in Russian Rubles				970.925			970.925
Cash paid for WBD's ordinary shares			$ 1.3		$ 3.8
Cash payment per ordinary share				3,883.70			3,883.70
Cash entitled to receive per ADS				970.925			970.925
Expected ownership percentage after squeeze out process						100.00%

Acquisitions (Pro Forma Financial Information) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 12, 2010
Acquisitions
Net Revenue	$ 25,913
Net Income Attributable to PepsiCo	$ 2,569
Net Income Attributable to PepsiCo per Common Share - Diluted	$ 1.56

Intangible Assets (Amortizable Intangible Assets, Net) (Details) (USD $) In Millions, unless otherwise specified	Jun. 11, 2011	Dec. 25, 2010
Amortizable intangible assets, gross	$ 3,797	$ 3,269
Accumulated amortization	(1,317)	(1,244)
Amortizable of intangible assets, net	2,480	2,025
Acquired Franchise Rights [Member]
Amortizable intangible assets, gross	974	949
Reacquired Franchise Rights [Member]
Amortizable intangible assets, gross	110	110
Brands [Member]
Amortizable intangible assets, gross	1,543	1,463
Other Identifiable Intangibles [Member]
Amortizable intangible assets, gross	$ 1,170	$ 747

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

6 Months Ended

Jun. 11, 2011

$ 26,444

4,582

821

31,847

FLNA [Member]

344

351

LAF [Member]

640

657

PAB [Member]

18,986

19,109

Europe [Member]

5,440

^[1]

4,528

^[1]

691

^[1]

10,659

^[1]

AMEA [Member]

859

896

Goodwill [Member]

14,661

1,254

384

16,299

Goodwill [Member] | FLNA [Member]

313

319

Goodwill [Member] | QFNA [Member]

175

175

Goodwill [Member] | LAF [Member]

497

510

Goodwill [Member] | PAB [Member]

9,946

9,994

Goodwill [Member] | Europe [Member]

3,040

^[1]

1,228

^[1]

314

^[1]

4,582

^[1]

Goodwill [Member] | AMEA [Member]

690

719

Brands [Member]

1,905

3,308

314

5,527

Brands [Member] | FLNA [Member]

Brands [Member] | LAF [Member]

143

147

Brands [Member] | PAB [Member]

182

195

Brands [Member] | Europe [Member]

1,380

^[1]

3,300

^[1]

296

^[1]

4,976

^[1]

Brands [Member] | AMEA [Member]

169

177

Reacquired Franchise Rights [Member]

8,076

100

8,196

Reacquired Franchise Rights [Member] | PAB [Member]

7,283

7,341

Reacquired Franchise Rights [Member] | Europe [Member]

793

^[1]

^[1]

^[1]

855

^[1]

Acquired Franchise Rights [Member]

1,792

1,814

Acquired Franchise Rights [Member] | PAB [Member]

1,565

1,568

Acquired Franchise Rights [Member] | Europe [Member]

227

^[1]

^[1]

^[1]

246

^[1]

Other Intangible Assets [Member]

Other Intangible Assets [Member] | PAB [Member]

Net Income Attributable to PepsiCo per Common Share

$ 11

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

Stock-Based Compensation (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 11, 2011	Jun. 12, 2010	Jun. 11, 2011	Jun. 12, 2010
Stock-Based Compensation
Stock-based compensation expense	$ 74	$ 72	$ 146	$ 119
Merger and Integration Costs included in Stock-Based Compensation	2	13	9	40
Weighted-average grant price, stock options		$ 66.50	$ 63.78
Weighted-average grant price, RSUs			$ 63.81	$ 66.46
Stock options granted		12.0	6.4
RSUs issued			5.2	4.6
Total stock-based compensation expense	$ 76	$ 85	$ 155	$ 159

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

6 Months Ended

Jun. 11, 2011

years

Jun. 12, 2010

years

Stock-Based Compensation

Expected life, in years

Risk free interest rate

2.60%

2.30%

Expected volatility

16.00%

^[1]

17.00%

^[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		6 Months Ended
	Jun. 11, 2011	Jun. 12, 2010	Jun. 11, 2011	Jun. 12, 2010
Retiree Medical [Member]
Service cost	$ 11	$ 14	$ 23	$ 26
Interest cost	21	23	41	43
Expected return on plan assets	(4)		(7)
Amortization of prior service cost/(benefit)	(6)	(4)	(13)	(8)
Amortization of experience loss	3	1	6	2
Gross total	25	34	50	63
Settlement/Curtailment gain
Special termination benefits		1	1	1
Total expense	25	35	51	64
U.S. [Member]
Service cost	80	69	162	130
Interest cost	126	120	252	218
Expected return on plan assets	(162)	(150)	(324)	(275)
Amortization of prior service cost/(benefit)	4	2	7	5
Amortization of experience loss	34	25	67	50
Gross total	82	66	164	128
Settlement/Curtailment gain		(2)	(9)	(2)
Special termination benefits		15	10	23
Total expense	82	79	165	149
International [Member]
Service cost	23	19	40	33
Interest cost	28	26	49	44
Expected return on plan assets	(33)	(31)	(57)	(53)
Amortization of prior service cost/(benefit)	1	1	1	1
Amortization of experience loss	9	6	16	10
Gross total	28	21	49	35
Settlement/Curtailment gain
Special termination benefits
Total expense	$ 28	$ 21	$ 49	$ 35

Income Taxes (Reserves Rollforward) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 11, 2011	Dec. 25, 2010
Income Taxes
Balance, beginning of year	$ 2,022	$ 1,731
Additions for tax positions related to the current year	85	204
Additions for tax positions from prior years	4	517
Reductions for tax positions from prior years	(54)	(391)
Settlement payments	(87)	(30)
Statute of limitations expiration	(5)	(7)
Translation and other	(2)	(2)
Balance, end of period	$ 1,963	$ 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

6 Months Ended

Jun. 11, 2011

Jun. 12, 2010

Jun. 11, 2011

Jun. 12, 2010

Net income attributable to PepsiCo

$ 1,885

$ 1,603

$ 3,028

$ 3,033

Dividends, Preferred

(1)

Redemption premium

(1)

(3)

(2)

Net income available for PepsiCo common shareholders

1,883

1,601

3,024

3,030

Net income available for PepsiCo common stockholders-shares

1,583

^[1]

1,608

^[1]

1,583

^[1]

1,595

^[1]

Basic net income attributable to PepsiCo per common share

$ 1.19

$ 1.00

$ 1.91

$ 1.90

Stock options and RSUs-shares

^[1],[2]

ESOP convertible preferred stock-value

ESOP convertible preferred stock-shares

^[1]

Diluted shares-value

$ 1,885

$ 1,603

$ 3,028

$ 3,033

Diluted-shares

1,605

^[1]

1,634

^[1]

1,605

^[1]

1,620

^[1]

Diluted net income attributable to PepsiCo per common share

$ 1.17

$ 0.98

$ 1.89

$ 1.87

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

10.1

22.9

20.7

21.8

Out-of-the money options average exercise price

$ 68.88

$ 67.60

$ 67.35

$ 67.33

[1]

Weighted-average common shares outstanding (in millions).

[2]

Debt Obligations and Commitments (Narrative) (Details) (USD $)	6 Months Ended
	Jun. 11, 2011
Derivative, description of variable rate basis	three-month London Inter-Bank Offered Rate (LIBOR) plus 8 basis points
Interest expense incurred related to debt repurchase	$ 16,000,000
Line of credit facility, maximum borrowing capacity	2,575,000,000
Commercial paper outstanding	2,200,000,000
LIBOR Plus 8 Basis Points [Member]
Fixed and floating rate notes issued	750,000,000
Two Point Five Percent Senior Notes [Member]
Fixed and floating rate notes issued	1,000,000,000
Interest rate on debt	2.50%
Unsecured Revolving Credit Facility 2015 [Member]
Line of credit facility, maximum borrowing capacity	2,875,000,000
Line of credit facility, expiration date	June 2015
Line of credit facility increase additional borrowing capacity	3,500,000,000
364 Day Unsecured Revolving Credit Facility 2012 [Member]
Line of credit facility, maximum borrowing capacity	2,875,000,000
Line of credit facility, expiration date	June 2012
Line of credit facility increase additional borrowing capacity	3,500,000,000
Unsecured Revolving Credit Facility 2012 [Member]
Line of credit facility, maximum borrowing capacity	2,000,000,000
Unsecured Revolving Credit Facility 2012 [Member] \| Bottling Group [Member]
Line of credit facility, maximum borrowing capacity	1,080,000,000
Seven Point Nine Zero Percent Senior Unsecured Notes [Member]
Payment of tender offer	784,000,000
Aggregate principal amount of debt repurchased	$ 766,000,000

Debt Obligations and Commitments (Long-term Contractual Commitments) (Details) (USD $)	6 Months Ended
	Jun. 11, 2011
Total long term contractual commitments	$ 36,524,000,000
PBG and PAS Acquisition [Member]
Long-term debt obligations, current	2,400,000,000
Fair value step up of Debt acquired in connection with our acquisitions of PBG and PAS	591,000,000
Long-Term Debt Obligations [Member]
Long-term debt obligations, total	21,016,000,000
Interest On Debt Obligations [Member]
Interest on debt obligations	7,556,000,000
Operating Leases [Member]
Operating leases	1,901,000,000
Purchasing Commitments [Member]
Purchasing commitments	3,496,000,000
Marketing Commitments [Member]
Marketing commitments	2,555,000,000
Payments Due By Period 2011 [Member]
Total long term contractual commitments	1,753,000,000
Payments Due By Period 2011 [Member] \| Long-Term Debt Obligations [Member]
Long-term debt obligations, current
Payments Due By Period 2011 [Member] \| Interest On Debt Obligations [Member]
Interest on debt obligations	467,000,000
Payments Due By Period 2011 [Member] \| Operating Leases [Member]
Operating leases	253,000,000
Payments Due By Period 2011 [Member] \| Purchasing Commitments [Member]
Purchasing commitments	931,000,000
Payments Due By Period 2011 [Member] \| Marketing Commitments [Member]
Marketing commitments	102,000,000
Payments Due By Period 2012-2013 [Member]
Total long term contractual commitments	10,058,000,000
Payments Due By Period 2012-2013 [Member] \| Long-Term Debt Obligations [Member]
Long-term debt obligations, 2012-2013	5,167,000,000
Payments Due By Period 2012-2013 [Member] \| Interest On Debt Obligations [Member]
Interest on debt obligations	1,574,000,000
Payments Due By Period 2012-2013 [Member] \| Operating Leases [Member]
Operating leases	678,000,000
Payments Due By Period 2012-2013 [Member] \| Purchasing Commitments [Member]
Purchasing commitments	2,077,000,000
Payments Due By Period 2012-2013 [Member] \| Marketing Commitments [Member]
Marketing commitments	562,000,000
Payments Due By Period 2014-2015 [Member]
Total long term contractual commitments	6,833,000,000
Payments Due By Period 2014-2015 [Member] \| Long-Term Debt Obligations [Member]
Long-term debt obligations, 2014-2015	4,353,000,000
Payments Due By Period 2014-2015 [Member] \| Interest On Debt Obligations [Member]
Interest on debt obligations	1,125,000,000
Payments Due By Period 2014-2015 [Member] \| Operating Leases [Member]
Operating leases	406,000,000
Payments Due By Period 2014-2015 [Member] \| Purchasing Commitments [Member]
Purchasing commitments	406,000,000
Payments Due By Period 2014-2015 [Member] \| Marketing Commitments [Member]
Marketing commitments	543,000,000
Payments Due By Period 2016 And Beyond [Member]
Total long term contractual commitments	17,880,000,000
Payments Due By Period 2016 And Beyond [Member] \| Long-Term Debt Obligations [Member]
Long-term debt obligations, 2016 and beyond	11,496,000,000
Payments Due By Period 2016 And Beyond [Member] \| Interest On Debt Obligations [Member]
Interest on debt obligations	4,390,000,000
Payments Due By Period 2016 And Beyond [Member] \| Operating Leases [Member]
Operating leases	564,000,000
Payments Due By Period 2016 And Beyond [Member] \| Purchasing Commitments [Member]
Purchasing commitments	82,000,000
Payments Due By Period 2016 And Beyond [Member] \| Marketing Commitments [Member]
Marketing commitments	$ 1,348,000,000

Merger and Integration Charges (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 11, 2011	Jun. 12, 2010	Jun. 11, 2011	Jun. 12, 2010	Mar. 20, 2010 Bottling Equity Income [Member]	Jun. 12, 2010 PBG and PAS Acquisition [Member]	Jun. 12, 2010 PBG and PAS Acquisition [Member]	Jun. 11, 2011 PBG PAS and WBD Acquisitions [Member]	Jun. 11, 2011 PBG PAS and WBD Acquisitions [Member]	Jun. 11, 2011 PAB [Member]	Jun. 12, 2010 PAB [Member]	Jun. 11, 2011 PAB [Member]	Jun. 12, 2010 PAB [Member]	Jun. 11, 2011 Europe [Member]	Jun. 12, 2010 Europe [Member]	Jun. 11, 2011 Europe [Member]	Jun. 12, 2010 Europe [Member]	Jun. 11, 2011 Corporate Unallocated Expenses [Member]	Jun. 12, 2010 Corporate Unallocated Expenses [Member]	Jun. 11, 2011 Corporate Unallocated Expenses [Member]	Jun. 12, 2010 Corporate Unallocated Expenses [Member]
Merger and integration costs (credit)			$ 113	$ 476	$ 9	$ 155	$ 467	$ 58	$ 113	$ 32	$ 103	$ 53	$ 296	$ 14	$ 28	$ 6	$ 29	$ 12	$ 24	$ 54	$ 112
Merger and integration charges, after-tax impact						119	380	45	94
Merger and integration charges, after-tax impact per share						$ 0.07	$ 0.23	$ 0.03	$ 0.06
Interest expense	$ 199	$ 172	$ 379	$ 326			$ 30

Merger and Integration Charges (Merger and Integration Activity) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended			12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended
	Jun. 11, 2011	Jun. 12, 2010	Jun. 11, 2011 Severance and Other Employee Costs [Member]	Dec. 25, 2010 Severance and Other Employee Costs [Member]	Jun. 11, 2011 Other Costs [Member]	Dec. 25, 2010 Other Costs [Member]	Jun. 11, 2011 Total [Member]	Dec. 25, 2010 Total [Member]
2011 merger and integration charges			$ 36		$ 77		$ 113
Cash payments for merger and integration costs	(207)	(209)	(101)		(106)		(207)
Non-cash charges	(113)	(476)	(35)		14		(21)
Liability			$ 79	$ 179	$ 10	$ 25	$ 89	$ 204

Financial Instruments (Narrative) (Details) (USD $)	6 Months Ended
Financial Instruments (Narrative) (Details) (USD $)	Jun. 11, 2011	Jun. 12, 2010
Debt instrument, fair value	$ 29,200,000,000
Interest Rate Contract [Member]
Expected reclassification of net gain (loss) related to hedge from accumulated OCI into net income	(16,000,000)
Notional amount of interest rate derivatives	8,730,000,000	8,600,000,000
Percentage of total debt, net of related interest rate derivatives, exposed to variable interest rates	42.00%	43.00%
Foreign Exchange Contract [Member]
Expected reclassification of net gain (loss) related to hedge from accumulated OCI into net income	(28,000,000)
Unrealized gain (loss) on derivatives and commodity contracts	(29,000,000)	5,000,000
Derivative instruments not designated as hedging instruments inception to date gain		6,000,000
Derivative instruments not designated as hedging instruments, inception to date loss	7,000,000
Foreign currency derivatives at face value, net	2,300,000,000	1,300,000,000
Commodity Contract [Member]
Expected reclassification of net gain (loss) related to hedge from accumulated OCI into net income	30,000,000
Face value of open commodity derivative contracts qualifying for hedging	590,000,000	587,000,000
Unrealized gain (loss) on derivatives and commodity contracts	61,000,000	(15,000,000)
Derivative asset not designated as hedging instrument, face value	356,000,000	246,000,000
Derivative instruments not designated as hedging instruments inception to date gain	45,000,000
Derivative instruments not designated as hedging instruments, inception to date loss		$ 14,000,000

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

Jun. 11, 2011

Jun. 12, 2010

Available-for-sale securities

$ 85

^[1],[2]

$ 79

^[1],[2]

Short-term investments - index funds, at fair value

176

^[1],[3]

144

^[1],[3]

Derivatives designated as hedging instruments, Assets, Total

426

^[1]

329

^[1]

Derivatives not designated as hedging instruments, Assets, Total

140

^[1]

Total asset derivatives at fair value

566

^[1]

414

^[1]

Total Financial Assets at Fair Value

827

^[1]

637

^[1]

Deferred compensation

547

^[1],[4]

554

^[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

161

^[1]

173

^[1]

Total Financial Liabilities at Fair Value

708

^[1]

727

^[1]

Derivatives Not Designated As Hedging Instruments Liabilities [Member]

^[1],[5]

^[1],[6]

Commodity contracts - futures

^[1],[7]

^[1],[8]

Derivatives Designated As Hedging Instruments Liabilities [Member]

^[1],[7]

^[1],[6]

Commodity contracts - futures

^[1],[5]

^[1],[8]

Derivatives Not Designated As Hedging Instruments Assets [Member]

Prepaid forward contracts

^[1],[9]

^[1],[7]

^[1],[5]

^[1],[6]

Derivatives Designated As Hedging Instruments Assets [Member]

^[1],[7]

345

^[1],[5]

268

^[1],[5]

Commodity contracts - futures

^[1],[6]

^[1],[8]

Level 1 Fair Values Of Assets And Liabilities [Member]

Deferred compensation

$ 46

$ 144

[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 June 11, 2011 and June 12, 2010, $46 million and $144 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

6 Months Ended

Jun. 11, 2011

Jun. 12, 2010

Jun. 11, 2011

Jun. 12, 2010

Fair Value/Non-designated Hedges [Member]

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

$ (65)

^[1]

$ (75)

^[1]

$ (125)

^[1]

$ (123)

^[1]

Cash Flow Hedging [Member]

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

^[2]

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

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

^[1]

(11)

^[1]

(5)

^[1]

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

(21)

(8)

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

^[2]

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

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

(56)

^[1]

(70)

^[1]

(78)

^[1]

(60)

^[1]

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

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

^[2]

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

Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss

(4)

^[1]

(2)

^[1]

(15)

^[1]

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

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

^[2]

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