|
|
|
|
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbols
|
Name of each exchange on which registered
|
||
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
Exhibit No.
|
Description
|
|
|
||
104
|
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.
|
PEPSICO, INC.
|
|||
Date:
|
April 28, 2020
|
By:
|
/s/ David Yawman
|
Name:
|
David Yawman
|
||
Title:
|
Executive Vice President, Government Affairs, General Counsel and Corporate Secretary
|
First Quarter
|
|
Net revenue growth
|
7.7%
|
Foreign exchange impact on net revenue
|
—%
|
Earnings per share (EPS)
|
$0.96
|
EPS change
|
(4)%
|
Foreign exchange impact on EPS
|
—%
|
First Quarter
|
|
Organic revenue growth
|
7.9%
|
Core EPS
|
$1.07
|
Core constant currency EPS change
|
10%
|
Revenue
|
Volume
|
||||||
GAAP Reported
% Change |
Percentage Point Impact
|
Organic
% Change |
Organic Volume % Change
|
||||
Foreign Exchange Translation
|
Acquisitions, Divestitures, and Other Structural Changes
|
Food/Snacks
|
Beverages
|
||||
Frito-Lay North America
|
7
|
—
|
—
|
7
|
5
|
||
Quaker Foods North America
|
7
|
—
|
—
|
7
|
8
|
||
PepsiCo Beverages North America
|
7
|
—
|
(1)
|
6
|
6
|
||
Latin America
|
6
|
2
|
—
|
8
|
2.5
|
5
|
|
Europe
|
14
|
—
|
—
|
14
|
5
|
13
|
|
Africa, Middle East and South Asia
|
9
|
(1.5)
|
6
|
14
|
13
|
11
|
|
Asia Pacific, Australia and New Zealand and China Region
|
6
|
2
|
—
|
7
|
3.5
|
(2)
|
|
Total
|
8
|
—
|
—
|
8
|
5.5
|
6
|
Operating Profit and EPS
|
||||
GAAP Reported % Change
|
Percentage Point Impact
|
Core Constant Currency
% Change
|
||
Items Affecting Comparability
|
Foreign Exchange Translation
|
|||
Frito-Lay North America
|
4
|
2
|
—
|
6
|
Quaker Foods North America
|
8
|
0.5
|
—
|
9
|
PepsiCo Beverages North America
|
(24)
|
—
|
—
|
(24)
|
Latin America
|
1
|
2
|
—
|
3
|
Europe
|
28
|
(14)
|
—
|
13
|
Africa, Middle East and South Asia
|
26
|
(5)
|
(1)
|
20
|
Asia Pacific, Australia and New Zealand and China Region
|
33
|
(3)
|
1
|
32
|
Corporate unallocated expenses
|
61
|
(81)
|
—
|
(20)
|
Total
|
(4)
|
11
|
—
|
6
|
EPS
|
(4)
|
15
|
—
|
10
|
•
|
A core effective tax rate of approximately 21 percent; and
|
•
|
Total cash returns to shareholders of approximately $7.5 billion, comprised of dividends of $5.5 billion and share repurchases of $2 billion.
|
Contacts:
|
Investor Relations
|
Communications
|
|
investor@pepsico.com
|
pepsicomediarelations@pepsico.com
|
|
12 Weeks Ended
|
||||||
|
3/21/2020
|
|
3/23/2019
|
|
|||
Net Revenue
|
$
|
13,881
|
|
$
|
12,884
|
|
|
Cost of sales
|
6,127
|
|
5,688
|
|
|||
Gross profit
|
7,754
|
|
7,196
|
|
|||
Selling, general and administrative expenses
(a)
|
5,830
|
|
5,188
|
|
|||
Operating Profit
|
1,924
|
|
2,008
|
|
|||
Other pension and retiree medical benefits income
|
77
|
|
64
|
|
|||
Net interest expense and other
|
(290
|
)
|
(204
|
)
|
|||
Income before income taxes
|
1,711
|
|
1,868
|
|
|||
Provision for income taxes
|
360
|
|
446
|
|
|||
Net income
|
1,351
|
|
1,422
|
|
|||
Less: Net income attributable to noncontrolling interests
|
13
|
|
9
|
|
|||
Net Income Attributable to PepsiCo
|
$
|
1,338
|
|
$
|
1,413
|
|
|
Diluted
|
|||||||
Net income attributable to PepsiCo per common share
|
$
|
0.96
|
|
$
|
1.00
|
|
|
Weighted-average common shares outstanding
|
1,396
|
|
1,413
|
|
(a)
|
The increase in selling, general and administrative expenses for the 12 weeks ended March 21, 2020 as compared to the 12 weeks ended March 23, 2019, reflects the unfavorable mark-to-market net impact on commodity derivatives, certain charges taken as a result of the COVID-19 pandemic and higher advertising and marketing expenses.
|
|
12 Weeks Ended
|
||||||
|
3/21/2020
|
|
3/23/2019
|
|
|||
Net Revenue
|
|||||||
Frito-Lay North America
|
$
|
4,074
|
|
$
|
3,815
|
|
|
Quaker Foods North America
|
634
|
|
594
|
|
|||
PepsiCo Beverages North America
|
4,838
|
|
4,510
|
|
|||
Latin America
|
1,310
|
|
1,241
|
|
|||
Europe
|
1,839
|
|
1,620
|
|
|||
Africa, Middle East and South Asia
|
631
|
|
579
|
|
|||
Asia Pacific, Australia and New Zealand and China Region
|
555
|
|
525
|
|
|||
Total
|
$
|
13,881
|
|
$
|
12,884
|
|
|
Operating Profit
|
|||||||
Frito-Lay North America
|
$
|
1,202
|
|
$
|
1,159
|
|
|
Quaker Foods North America
|
150
|
|
138
|
|
|||
PepsiCo Beverages North America
|
297
|
|
389
|
|
|||
Latin America
|
231
|
|
230
|
|
|||
Europe
|
146
|
|
115
|
|
|||
Africa, Middle East and South Asia
|
134
|
|
105
|
|
|||
Asia Pacific, Australia and New Zealand and China Region
|
142
|
|
106
|
|
|||
Corporate unallocated expenses
|
(378
|
)
|
(234
|
)
|
|||
Total
|
$
|
1,924
|
|
$
|
2,008
|
|
PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(in millions, unaudited)
|
|||||||
|
12 Weeks Ended
|
||||||
|
3/21/2020
|
|
3/23/2019
|
|
|||
Operating Activities
|
|||||||
Net income
|
$
|
1,351
|
|
$
|
1,422
|
|
|
Depreciation and amortization
|
533
|
|
498
|
|
|||
Share-based compensation expense
|
61
|
|
57
|
|
|||
Restructuring and impairment charges
|
38
|
|
26
|
|
|||
Cash payments for restructuring charges
|
(60
|
)
|
(52
|
)
|
|||
Pension and retiree medical plan expenses
|
40
|
|
47
|
|
|||
Pension and retiree medical plan contributions
|
(234
|
)
|
(260
|
)
|
|||
Deferred income taxes and other tax charges and credits
|
25
|
|
216
|
|
|||
Net tax related to the Tax Cuts and Jobs Act (TCJ Act)
|
—
|
|
(29
|
)
|
|||
Change in assets and liabilities:
|
|||||||
Accounts and notes receivable
|
(784
|
)
|
(406
|
)
|
|||
Inventories
|
(312
|
)
|
(435
|
)
|
|||
Prepaid expenses and other current assets
|
(263
|
)
|
(382
|
)
|
|||
Accounts payable and other current liabilities
|
(1,419
|
)
|
(1,207
|
)
|
|||
Income taxes payable
|
204
|
|
120
|
|
|||
Other, net
|
71
|
|
40
|
|
|||
Net Cash Used for Operating Activities
|
(749
|
)
|
(345
|
)
|
|||
Investing Activities
|
|||||||
Capital spending
|
(484
|
)
|
(442
|
)
|
|||
Sales of property, plant and equipment
|
5
|
|
2
|
|
|||
Acquisition of SodaStream International Ltd. (SodaStream)
|
(9
|
)
|
(1,807
|
)
|
|||
Other acquisitions and investments in noncontrolled affiliates
|
(445
|
)
|
(56
|
)
|
|||
Short-term investments, by original maturity - three months or less, net
|
7
|
|
9
|
|
|||
Other investing, net
|
1
|
|
(6
|
)
|
|||
Net Cash Used for Investing Activities
|
(925
|
)
|
(2,300
|
)
|
|||
Financing Activities
|
|||||||
Proceeds from issuances of long-term debt
|
6,429
|
|
1,122
|
|
|||
Payments of long-term debt
|
(1
|
)
|
(1,851
|
)
|
|||
Short-term borrowings, by original maturity:
|
|||||||
More than three months - proceeds
|
164
|
|
2
|
|
|||
More than three months - payments
|
(2
|
)
|
—
|
|
|||
Three months or less, net
|
2,794
|
|
115
|
|
|||
Cash dividends paid
|
(1,349
|
)
|
(1,332
|
)
|
|||
Share repurchases - common
|
(573
|
)
|
(940
|
)
|
|||
Proceeds from exercises of stock options
|
78
|
|
103
|
|
|||
Withholding tax payments on restricted stock units and performance stock units converted
|
(76
|
)
|
(93
|
)
|
|||
Other financing
|
(2
|
)
|
(2
|
)
|
|||
Net Cash Provided by/(Used for) Financing Activities
|
7,462
|
|
(2,876
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
(66
|
)
|
57
|
|
|||
Net Increase/(Decrease) in Cash and Cash Equivalents and Restricted Cash
|
5,722
|
|
(5,464
|
)
|
|||
Cash and Cash Equivalents and Restricted Cash, Beginning of Year
|
5,570
|
|
10,769
|
|
|||
Cash and Cash Equivalents and Restricted Cash, End of Period
|
$
|
11,292
|
|
$
|
5,305
|
|
|
Supplemental Non-Cash Activity
|
|||||||
Right-of-use assets obtained in exchange for lease obligations
|
$
|
148
|
|
$
|
59
|
|
PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
(in millions except per share amounts)
|
|||||||
(unaudited)
|
|
||||||
3/21/2020
|
|
12/28/2019
|
|
||||
ASSETS
|
|||||||
Current Assets
|
|||||||
Cash and cash equivalents
|
$
|
11,089
|
|
$
|
5,509
|
|
|
Short-term investments
|
158
|
|
229
|
|
|||
Accounts and notes receivable, net
|
8,477
|
|
7,822
|
|
|||
Inventories:
|
|||||||
Raw materials and packaging
|
1,502
|
|
1,395
|
|
|||
Work-in-process
|
277
|
|
200
|
|
|||
Finished goods
|
1,821
|
|
1,743
|
|
|||
3,600
|
|
3,338
|
|
||||
Prepaid expenses and other current assets
|
944
|
|
747
|
|
|||
Total Current Assets
|
24,268
|
|
17,645
|
|
|||
Property, Plant and Equipment, net
|
18,980
|
|
19,305
|
|
|||
Amortizable Intangible Assets, net
|
1,443
|
|
1,433
|
|
|||
Goodwill
|
15,465
|
|
15,501
|
|
|||
Other indefinite-lived intangible assets
|
14,536
|
|
14,610
|
|
|||
Indefinite-Lived Intangible Assets
|
30,001
|
|
30,111
|
|
|||
Investments in Noncontrolled Affiliates
|
2,719
|
|
2,683
|
|
|||
Deferred Income Taxes
|
4,357
|
|
4,359
|
|
|||
Other Assets
|
3,294
|
|
3,011
|
|
|||
Total Assets
|
$
|
85,062
|
|
$
|
78,547
|
|
|
LIABILITIES AND EQUITY
|
|||||||
Current Liabilities
|
|||||||
Short-term debt obligations
|
$
|
5,882
|
|
$
|
2,920
|
|
|
Accounts payable and other current liabilities
|
16,196
|
|
17,541
|
|
|||
Total Current Liabilities
|
22,078
|
|
20,461
|
|
|||
Long-Term Debt Obligations
|
35,361
|
|
29,148
|
|
|||
Deferred Income Taxes
|
4,060
|
|
4,091
|
|
|||
Other Liabilities
|
10,004
|
|
9,979
|
|
|||
Total Liabilities
|
71,503
|
|
63,679
|
|
|||
Commitments and contingencies
|
|||||||
PepsiCo Common Shareholders’ Equity
|
|||||||
Common stock, par value 1
2
/
3
¢ per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,389 and 1,391 shares, respectively)
|
23
|
|
23
|
|
|||
Capital in excess of par value
|
3,741
|
|
3,886
|
|
|||
Retained earnings
|
61,920
|
|
61,946
|
|
|||
Accumulated other comprehensive loss
|
(15,057
|
)
|
(14,300
|
)
|
|||
Repurchased common stock, in excess of par value (478 and 476 shares, respectively)
|
(37,162
|
)
|
(36,769
|
)
|
|||
Total PepsiCo Common Shareholders’ Equity
|
13,465
|
|
14,786
|
|
|||
Noncontrolling interests
|
94
|
|
82
|
|
|||
Total Equity
|
13,559
|
|
14,868
|
|
|||
Total Liabilities and Equity
|
$
|
85,062
|
|
$
|
78,547
|
|
12 Weeks Ended 3/21/2020
|
||||||||||||||||
Impact of
|
Impact of
|
|||||||||||||||
Net Revenue Year over Year % Change
|
Reported
% Change, GAAP Measure
|
Foreign exchange translation
|
Acquisitions and divestitures
|
Organic
% Change, Non-GAAP Measure
(a)
|
Volume
(b)
|
Effective net pricing
|
||||||||||
Frito-Lay North America
|
7
|
%
|
|
—
|
|
|
—
|
|
|
7
|
%
|
5
|
2
|
|
||
Quaker Foods North America
|
7
|
%
|
|
—
|
|
|
—
|
|
|
7
|
%
|
8
|
(2
|
)
|
||
PepsiCo Beverages North America
|
7
|
%
|
|
—
|
|
|
(1
|
)
|
|
6
|
%
|
7
|
(0.5
|
)
|
||
Latin America
|
6
|
%
|
|
2
|
|
|
—
|
|
|
8
|
%
|
3
|
5
|
|
||
Europe
|
14
|
%
|
|
—
|
|
|
—
|
|
|
14
|
%
|
10
|
3
|
|
||
Africa, Middle East and South Asia
|
9
|
%
|
|
(1.5
|
)
|
|
6
|
|
|
14
|
%
|
10
|
3
|
|
||
Asia Pacific, Australia and New Zealand and China Region
|
6
|
%
|
2
|
|
—
|
|
7
|
%
|
1
|
7
|
|
|||||
Total
|
8
|
%
|
—
|
|
—
|
|
8
|
%
|
6
|
2
|
|
(a)
|
Organic revenue growth is a financial measure that is not in accordance with GAAP.
|
(b)
|
Excludes the impact of acquisitions and divestitures. In certain instances, volume growth varies from the amounts disclosed in the Summary
First-Quarter
2020
Performance table on page 2 due to nonconsolidated joint venture volume, and, for our beverage businesses, temporary timing differences between BCS and CSE, as well as the mix of beverage volume sold by our company-owned and franchise-owned bottlers. Our net revenue excludes nonconsolidated joint venture volume, and, for our franchise-owned beverage businesses, is based on CSE.
|
12 Weeks Ended 3/21/2020
|
||||||||||||||||||||||
|
Impact of Items Affecting Comparability
|
Impact of
|
||||||||||||||||||||
Year over Year % Change
|
Reported
% Change,
GAAP Measure
|
Mark-to-market net impact
|
Restructuring and impairment charges
|
Inventory fair value adjustments and merger and integration charges
|
Net tax related to the TCJ Act
|
Core
% Change, Non-GAAP Measure
(a)
|
Foreign exchange
translation
|
Core Constant Currency
% Change,
Non-GAAP Measure
(a)
|
||||||||||||||
Frito-Lay North America
|
4
|
%
|
—
|
|
—
|
|
2
|
|
—
|
6
|
%
|
—
|
|
6
|
%
|
|||||||
Quaker Foods North America
|
8
|
%
|
—
|
|
0.5
|
|
—
|
|
—
|
9
|
%
|
—
|
|
9
|
%
|
|||||||
PepsiCo Beverages North America
|
(24
|
)%
|
—
|
|
—
|
|
—
|
|
—
|
(24
|
)%
|
—
|
|
(24
|
)%
|
|||||||
Latin America
|
1
|
%
|
—
|
|
2
|
|
—
|
|
—
|
3
|
%
|
—
|
|
3
|
%
|
|||||||
Europe
|
28
|
%
|
—
|
|
1
|
|
(15
|
)
|
—
|
13
|
%
|
—
|
|
13
|
%
|
|||||||
Africa, Middle East and South Asia
|
26
|
%
|
—
|
|
(8
|
)
|
3
|
|
—
|
21
|
%
|
(1
|
)
|
20
|
%
|
|||||||
Asia Pacific, Australia and New Zealand and China Region
|
33
|
%
|
—
|
|
(3
|
)
|
—
|
|
—
|
31
|
%
|
1
|
|
32
|
%
|
|||||||
Corporate unallocated expenses
|
61
|
%
|
(82
|
)
|
—
|
|
—
|
|
—
|
(20
|
)%
|
—
|
|
(20
|
)%
|
|||||||
Total Operating Profit
|
(4
|
)%
|
10
|
|
—
|
|
0.5
|
|
—
|
6
|
%
|
—
|
|
6
|
%
|
|||||||
Net Income Attributable to PepsiCo
|
(5
|
)%
|
11
|
|
1
|
|
1
|
|
2
|
9
|
%
|
—
|
|
9
|
%
|
|||||||
Net Income Attributable to PepsiCo per common share – diluted
|
(4
|
)%
|
11
|
|
1
|
|
1
|
|
2
|
10
|
%
|
—
|
|
10
|
%
|
(a)
|
Core results and core constant currency results are financial measures that are not in accordance with GAAP and exclude the impact of the above items affecting comparability. See A-5 through A-6 for a discussion of each of these adjustments.
|
12 Weeks Ended 3/21/2020
|
||||||||||||||||||||||||||||||||||
Cost of sales
|
Gross profit
|
Selling, general and administrative expenses
|
Operating profit
|
Other pension and retiree medical benefits income
|
Provision for income taxes
(b)
|
Net income attributable to PepsiCo
|
Net income attributable to PepsiCo per common share - diluted
|
Effective tax rate
(c)
|
||||||||||||||||||||||||||
Reported, GAAP Measure
|
$
|
6,127
|
|
$
|
7,754
|
|
$
|
5,830
|
|
$
|
1,924
|
|
$
|
77
|
|
$
|
360
|
|
$
|
1,338
|
|
$
|
0.96
|
|
21.0
|
%
|
||||||||
Items Affecting Comparability
|
||||||||||||||||||||||||||||||||||
Mark-to-market net impact
|
(38
|
)
|
38
|
|
(104
|
)
|
142
|
|
—
|
|
35
|
|
107
|
|
0.08
|
|
0.3
|
|
||||||||||||||||
Restructuring and impairment charges
|
(2
|
)
|
2
|
|
(30
|
)
|
32
|
|
6
|
|
6
|
|
32
|
|
0.02
|
|
(0.1
|
)
|
||||||||||||||||
Merger and integration charges
|
—
|
|
—
|
|
(25
|
)
|
25
|
|
—
|
|
3
|
|
22
|
|
0.02
|
|
(0.2
|
)
|
||||||||||||||||
Core, Non-GAAP Measure
(a)
|
$
|
6,087
|
|
$
|
7,794
|
|
$
|
5,671
|
|
$
|
2,123
|
|
$
|
83
|
|
$
|
404
|
|
$
|
1,499
|
|
$
|
1.07
|
|
21.1
|
%
|
12 Weeks Ended 3/23/2019
|
||||||||||||||||||||||||||||||||||
Cost of sales
|
Gross profit
|
Selling, general and administrative expenses
|
Operating profit
|
Other pension and retiree medical benefits income
|
Provision for income taxes
(b)
|
Net income attributable to PepsiCo
|
Net income attributable to PepsiCo per common share - diluted
|
Effective tax rate
(c)
|
||||||||||||||||||||||||||
Reported, GAAP Measure
|
$
|
5,688
|
|
$
|
7,196
|
|
$
|
5,188
|
|
$
|
2,008
|
|
$
|
64
|
|
$
|
446
|
|
$
|
1,413
|
|
$
|
1.00
|
|
23.9
|
%
|
||||||||
Items Affecting Comparability
|
||||||||||||||||||||||||||||||||||
Mark-to-market net impact
|
19
|
|
(19
|
)
|
41
|
|
(60
|
)
|
—
|
|
(14
|
)
|
(46
|
)
|
(0.03
|
)
|
—
|
|
||||||||||||||||
Restructuring and impairment charges
|
(8
|
)
|
8
|
|
(23
|
)
|
31
|
|
(5
|
)
|
3
|
|
23
|
|
0.02
|
|
(0.2
|
)
|
||||||||||||||||
Inventory fair value adjustments and merger and integration charges
|
(14
|
)
|
14
|
|
(1
|
)
|
15
|
|
—
|
|
2
|
|
13
|
|
0.01
|
|
(0.1
|
)
|
||||||||||||||||
Net tax related to the TCJ Act
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
29
|
|
(29
|
)
|
(0.02
|
)
|
1.6
|
|
||||||||||||||||
Core, Non-GAAP Measure
(a)
|
$
|
5,685
|
|
$
|
7,199
|
|
$
|
5,205
|
|
$
|
1,994
|
|
$
|
59
|
|
$
|
466
|
|
$
|
1,374
|
|
$
|
0.97
|
|
25.2
|
%
|
(a)
|
Core results are financial measures that are not in accordance with GAAP and exclude the impact of the above items affecting comparability. See A-5 through A-6 for a discussion of each of these adjustments.
|
(b)
|
Provision for income taxes is the expected tax charge/benefit on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax jurisdiction.
|
(c)
|
The impact of items affecting comparability on our effective tax rate represents the difference in the effective tax rate resulting from a higher or lower tax rate applicable to the items affecting comparability.
|
12 Weeks Ended 3/21/2020
|
|||||||||||||||||||
Items Affecting Comparability
|
|||||||||||||||||||
Operating Profit
|
Reported, GAAP Measure
|
Mark-to-market net impact
|
Restructuring and impairment charges
|
Merger and integration charges
|
Core,
Non-GAAP Measure
(a)
|
||||||||||||||
Frito-Lay North America
|
$
|
1,202
|
|
$
|
—
|
|
$
|
5
|
|
$
|
23
|
|
$
|
1,230
|
|
||||
Quaker Foods North America
|
150
|
|
—
|
|
1
|
|
—
|
|
151
|
|
|||||||||
PepsiCo Beverages North America
|
297
|
|
—
|
|
3
|
|
—
|
|
300
|
|
|||||||||
Latin America
|
231
|
|
—
|
|
5
|
|
—
|
|
236
|
|
|||||||||
Europe
|
146
|
|
—
|
|
8
|
|
—
|
|
154
|
|
|||||||||
Africa, Middle East and South Asia
|
134
|
|
—
|
|
2
|
|
2
|
|
138
|
|
|||||||||
Asia Pacific, Australia and New Zealand and China Region
|
142
|
|
—
|
|
—
|
|
—
|
|
142
|
|
|||||||||
Corporate unallocated expenses
|
(378
|
)
|
142
|
|
8
|
|
—
|
|
(228
|
)
|
|||||||||
Total
|
$
|
1,924
|
|
$
|
142
|
|
$
|
32
|
|
$
|
25
|
|
$
|
2,123
|
|
12 Weeks Ended 3/23/2019
|
|||||||||||||||||||
Items Affecting Comparability
|
|||||||||||||||||||
Operating Profit
|
Reported,
GAAP Measure
|
Mark-to-market net impact
|
Restructuring and impairment charges
|
Inventory fair value adjustments and merger and integration charges
|
Core,
Non-GAAP Measure
(a)
|
||||||||||||||
Frito-Lay North America
|
$
|
1,159
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,159
|
|
||||
Quaker Foods North America
|
138
|
|
—
|
|
—
|
|
—
|
|
138
|
|
|||||||||
PepsiCo Beverages North America
|
389
|
|
—
|
|
6
|
|
—
|
|
395
|
|
|||||||||
Latin America
|
230
|
|
—
|
|
—
|
|
—
|
|
230
|
|
|||||||||
Europe
|
115
|
|
—
|
|
6
|
|
15
|
|
136
|
|
|||||||||
Africa, Middle East and South Asia
|
105
|
|
—
|
|
8
|
|
—
|
|
113
|
|
|||||||||
Asia Pacific, Australia and New Zealand and China Region
|
106
|
|
—
|
|
3
|
|
—
|
|
109
|
|
|||||||||
Corporate unallocated expenses
|
(234
|
)
|
(60
|
)
|
8
|
|
—
|
|
(286
|
)
|
|||||||||
Total
|
$
|
2,008
|
|
$
|
(60
|
)
|
$
|
31
|
|
$
|
15
|
|
$
|
1,994
|
|
(a)
|
Core results are financial measures that are not in accordance with GAAP and exclude the impact of the above items affecting comparability. See A-5 through A-6 for a discussion of each of these adjustments.
|
|
12 Weeks Ended
|
|
|
|
3/21/2020
|
|
|
Reported gross margin growth
|
1
|
|
bps
|
Mark-to-market net impact
|
41
|
|
|
Restructuring and impairment charges
|
(5
|
)
|
|
Inventory fair value adjustments and merger and integration charges
|
(10
|
)
|
|
Core gross margin growth
|
27
|
|
bps
|
12 Weeks Ended
|
|||
|
3/21/2020
|
||
Reported operating margin performance
|
(172
|
)
|
bps
|
Mark-to-market net impact
|
149
|
|
|
Restructuring and impairment charges
|
(1
|
)
|
|
Inventory fair value adjustments and merger and integration charges
|
6
|
|
|
Core operating margin performance
|
(18
|
)
|
bps
|