Item 1. Condensed Consolidated Financial Statements.

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Item 1. Condensed Consolidated Financial Statements.

Condensed Consolidated Statement of Income

PepsiCo, Inc. and Subsidiaries

(in millions, except per share amounts, unaudited)


	12 Weeks Ended				24 Weeks Ended
	6/14/2025		6/15/2024		6/14/2025		6/15/2024
Net Revenue	$	22,726	$	22,501	$	40,645	$	40,751
Cost of sales	10,304		9,919		18,230		18,167
Gross profit	12,422		12,582		22,415		22,584
Selling, general and administrative expenses	8,773		8,534		16,183		15,819

Impairment of intangible assets (see Notes 1 and 4)	1,860		—		1,860		—
Operating Profit	1,789		4,048		4,372		6,765
Other pension and retiree medical benefits income	42		56		65		114
Net interest expense and other	(260)		(234)		(524)		(436)
Income before income taxes	1,571		3,870		3,913		6,443
Provision for income taxes	292		776		791		1,296
Net income	1,279		3,094		3,122		5,147
Less: Net income attributable to noncontrolling interests	16		11		25		22
Net Income Attributable to PepsiCo	$	1,263	$	3,083	$	3,097	$	5,125
Net Income Attributable to PepsiCo per Common Share
Basic	$	0.92	$	2.24	$	2.26	3.73
Diluted	$	0.92	$	2.23	$	2.25	3.71
Weighted-average common shares outstanding
Basic	1,371		1,375		1,371		1,375
Diluted	1,373		1,379		1,374		1,380

See accompanying notes to the condensed consolidated financial statements.

Condensed Consolidated Statement of Comprehensive Income

PepsiCo, Inc. and Subsidiaries

(in millions, unaudited)


	12 Weeks Ended				24 Weeks Ended
	6/14/2025		6/15/2024		6/14/2025		6/15/2024
Net income	$	1,279	$	3,094	$	3,122	$	5,147
Other comprehensive income/(loss), net of taxes:
Net currency translation adjustment	961		(267)		1,397		(449)
Net change on cash flow hedges	(18)		42		4		45
Net pension and retiree medical adjustments	(19)		9		(9)		20

Net change on available-for-sale debt securities and other	64		(391)		130		132
Total other comprehensive income/(loss), net of taxes	988		(607)		1,522		(252)
Comprehensive income	2,267		2,487		4,644		4,895
Less: Comprehensive income attributable to noncontrolling interests	16		11		25		22
Comprehensive Income Attributable to PepsiCo	$	2,251	$	2,476	$	4,619	$	4,873

See accompanying notes to the condensed consolidated financial statements.

Condensed Consolidated Statement of Cash Flows

PepsiCo, Inc. and Subsidiaries

(in millions, unaudited)


	24 Weeks Ended
	6/14/2025		6/15/2024
Operating Activities
Net income	$	3,122	$	5,147
Depreciation and amortization	1,491		1,379
Impairment and other charges	1,860		—

Product recall-related impact	—		182
Cash payments for product recall-related impact	(2)		(135)
Operating lease right-of-use asset amortization	315		278
Share-based compensation expense	131		183
Restructuring and impairment charges	426		170
Cash payments for restructuring charges	(387)		(173)


Pension and retiree medical plan expense	99		67
Pension and retiree medical plan contributions	(354)		(263)
Deferred income taxes and other tax charges and credits	(260)		142

Tax payments related to the Tax Cuts and Jobs Act (TCJ Act)	(772)		(579)
Change in assets and liabilities:
Accounts and notes receivable	(1,582)		(1,138)
Inventories	(800)		(696)
Prepaid expenses and other current assets	(354)		(365)
Accounts payable and other current liabilities	(2,083)		(2,968)
Income taxes payable	415		287
Other, net	(269)		(203)
Net Cash Provided by Operating Activities	996		1,315

Investing Activities
Capital spending	(1,507)		(1,701)
Sales of property, plant and equipment	169		127
Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of intangible and other assets	(3,130)		(30)
Divestitures, sales of investments in noncontrolled affiliates and other assets	5		135
Short-term investments, by original maturity:

More than three months - maturities	425		—

Three months or less, net	22		1
Other investing, net	(111)		14
Net Cash Used for Investing Activities	(4,127)		(1,454)

(Continued on following page)

Condensed Consolidated Statement of Cash Flows (continued)

PepsiCo, Inc. and Subsidiaries

(in millions, unaudited)


	24 Weeks Ended
	6/14/2025		6/15/2024
Financing Activities
Proceeds from issuances of long-term debt	$	3,521	$	1,765
Payments of long-term debt	(2,543)		(2,882)

Short-term borrowings, by original maturity:
More than three months - proceeds	5,251		3,080
More than three months - payments	(2,492)		(2,138)
Three months or less, net	2,438		1,286
Cash dividends paid	(3,743)		(3,506)
Share repurchases	(494)		(461)
Proceeds from exercises of stock options	58		107
Withholding tax payments on restricted stock units (RSUs) and performance stock units (PSUs) converted	(111)		(131)
Other financing	(17)		(20)
Net Cash Provided by/(Used for) Financing Activities	1,868		(2,900)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	422		(304)
Net Decrease in Cash and Cash Equivalents and Restricted Cash	(841)		(3,343)
Cash and Cash Equivalents and Restricted Cash, Beginning of Year	8,553		9,761
Cash and Cash Equivalents and Restricted Cash, End of Period	$	7,712	$	6,418

Supplemental Non-Cash Activity
Right-of-use assets obtained in exchange for lease obligations	$	329	$	541

See accompanying notes to the condensed consolidated financial statements.

Condensed Consolidated Balance Sheet

PepsiCo, Inc. and Subsidiaries

(in millions, except per share amounts)


	(Unaudited)
	6/14/2025		12/28/2024
ASSETS
Current Assets
Cash and cash equivalents	$	7,631	$	8,505
Short-term investments	342		761
Accounts and notes receivable, less allowance ($231 and $356, respectively)	12,390		10,333
Inventories:
Raw materials and packaging	2,940		2,440
Work-in-process	135		104
Finished goods	3,412		2,762
	6,487		5,306
Prepaid expenses and other current assets	1,360		921
Total Current Assets	28,210		25,826
Property, plant and equipment	58,469		56,005
Accumulated depreciation	(29,672)		(27,997)
Property, Plant and Equipment, net	28,797		28,008
Amortizable Intangible Assets, net	1,311		1,102
Goodwill	18,952		17,534
Other Indefinite-Lived Intangible Assets	14,212		13,699

Investments in Noncontrolled Affiliates	2,061		1,985
Deferred Income Taxes	4,293		4,362
Other Assets	7,509		6,951
Total Assets	$	105,345	$	99,467

LIABILITIES AND EQUITY
Current Liabilities
Short-term debt obligations	$	12,056	$	7,082
Accounts payable and other current liabilities	24,340		24,454
Total Current Liabilities	36,396		31,536
Long-Term Debt Obligations	39,328		37,224
Deferred Income Taxes	3,102		3,484
Other Liabilities	7,960		9,052
Total Liabilities	86,786		81,296
Commitments and contingencies
PepsiCo Common Shareholders’ Equity
Common stock, par value 12/3¢ per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,370 and 1,372 shares, respectively)	23		23
Capital in excess of par value	4,299		4,385
Retained earnings	71,547		72,266
Accumulated other comprehensive loss	(16,090)		(17,612)
Repurchased common stock, in excess of par value (496 and 495 shares, respectively)	(41,361)		(41,021)
Total PepsiCo Common Shareholders’ Equity	18,418		18,041
Noncontrolling interests	141		130
Total Equity	18,559		18,171
Total Liabilities and Equity	$	105,345	$	99,467

See accompanying notes to the condensed consolidated financial statements.

Condensed Consolidated Statement of Equity

PepsiCo, Inc. and Subsidiaries

(in millions, except per share amounts, unaudited)


	12 Weeks Ended						24 Weeks Ended
	6/14/2025			6/15/2024			6/14/2025			6/15/2024
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount










Common Stock
Balance, beginning of period	1,372	$	23	1,375	$	23	1,371	$	23	1,374	$	23
Change in repurchased common stock	(2)	—		(1)	—		(1)	—		—	—
Balance, end of period	1,370	23		1,374	23		1,370	23		1,374	23
Capital in Excess of Par Value
Balance, beginning of period		4,274			4,132			4,385			4,261
Share-based compensation expense		53			87			129			179

Stock option exercises, RSUs and PSUs converted		(2)			9			(100)			(104)
Withholding tax on RSUs and PSUs converted		(22)			(23)			(111)			(131)
Other		(4)			(2)			(4)			(2)
Balance, end of period		4,299			4,203			4,299			4,203
Retained Earnings
Balance, beginning of period		72,238			70,331			72,266			70,035
Net income attributable to PepsiCo		1,263			3,083			3,097			5,125
Cash dividends declared (a)		(1,954)			(1,869)			(3,816)			(3,615)
Balance, end of period		71,547			71,545			71,547			71,545
Accumulated Other Comprehensive Loss
Balance, beginning of period		(17,078)			(15,179)			(17,612)			(15,534)
Other comprehensive income/(loss) attributable to PepsiCo		988			(607)			1,522			(252)
Balance, end of period		(16,090)			(15,786)			(16,090)			(15,786)
Repurchased Common Stock
Balance, beginning of period	(494)	(41,068)		(492)	(40,260)		(495)	(41,021)		(493)	(40,282)
Share repurchases	(2)	(302)		(2)	(310)		(3)	(497)		(3)	(468)
Stock option exercises, RSUs and PSUs converted	—	9		1	31		2	157		3	210
Other	—	—		—	—		—	—		—	1
Balance, end of period	(496)	(41,361)		(493)	(40,539)		(496)	(41,361)		(493)	(40,539)
Total PepsiCo Common Shareholders’ Equity		18,418			19,446			18,418			19,446
Noncontrolling Interests
Balance, beginning of period		140			143			130			134
Net income attributable to noncontrolling interests		16			11			25			22
Distributions to noncontrolling interests		(14)			(16)			(15)			(17)


Other, net		(1)			(4)			1			(5)
Balance, end of period		141			134			141			134
Total Equity		$	18,559		$	19,580		$	18,559		$	19,580

(a)Cash dividends declared per common share were $1.4225 and $1.3550 for the 12 weeks ended June 14, 2025 and June 15, 2024, respectively, and $2.7775 and $2.6200 for the 24 weeks ended June 14, 2025 and June 15, 2024, respectively.

See accompanying notes to the condensed consolidated financial statements.

Notes to the Condensed Consolidated Financial Statements

Note 1 - Basis of Presentation and Our Segments

Basis of Presentation

When used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its consolidated subsidiaries, collectively.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the rules and regulations for reporting the Quarterly Report on Form 10-Q (Form 10-Q). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. We have subsidiaries operating in highly inflationary economies, such as Argentina, Egypt and Turkey, and accordingly apply highly inflationary accounting for these subsidiaries. The condensed consolidated balance sheet at December 28, 2024 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements have been prepared on a basis that is substantially consistent with the accounting principles applied in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024 (2024 Form 10-K) and in Exhibit 99.2 to our Current Report on Form 8-K dated July 17, 2025 (Recast Segment Information). This report should be read in conjunction with our 2024 Form 10-K and our Recast Segment Information, in which we retrospectively recast historical segment reporting to reflect our current organizational structure. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation. The results for the 12 and 24 weeks ended June 14, 2025 are not necessarily indicative of the results expected for any future period or the full year.

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

While our financial results in the United States and Canada (North America) are reported on a 12-week basis, all of our international operations are reported on a monthly calendar basis for which the months of March, April and May are reflected in our results for the 12 weeks ended June 14, 2025 and June 15, 2024, and the months of January through May are reflected in our results for the 24 weeks ended June 14, 2025 and June 15, 2024.

The preparation of our condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and related disclosures. Additionally, the business and economic uncertainty resulting from volatile geopolitical conditions, an increasingly complex global tax environment, including changes in how existing laws are interpreted or enforced, expanded or retaliatory tariffs and changes in the interest rate and inflationary cost environment have made such estimates and assumptions more difficult to calculate. Accordingly, actual results and outcomes could differ from those estimates.

Our significant interim accounting policies include the recognition of a pro rata share of certain estimated annual sales incentives and certain advertising and marketing costs in proportion to revenue or volume, as applicable, and the recognition of income taxes using an estimated annual effective tax rate.

Unless otherwise noted, tabular dollars are in millions, except per share amounts. All per share amounts reflect common per share amounts, assume dilution unless otherwise noted, and are based on unrounded amounts. Certain reclassifications were made to the prior year’s financial statements to conform to the current year presentation.

Our Segments

As previously disclosed in our 2024 Form 10-K, effective beginning with our first quarter of 2025, we realigned certain of our reportable segments to conform with changes to our organizational structure and how our Chief Executive Officer regularly reviews the performance of, and allocates resources to, these segments. Our historical segment reporting has been recast to reflect our current organizational structure.

We are organized into six reportable segments, as follows:

1)PepsiCo Foods North America (PFNA), which includes all of our convenient food businesses in the United States and Canada;

2)PepsiCo Beverages North America (PBNA), which includes all of our beverage businesses in the United States and Canada;

3)International Beverages Franchise (IB Franchise), which includes our international franchise beverage businesses, as well as our SodaStream business;

4)Europe, Middle East and Africa (EMEA), which includes our convenient food businesses and beverage businesses with company-owned bottlers in Europe, the Middle East and Africa;

5)Latin America Foods (LatAm Foods), which includes all of our convenient food businesses in Latin America; and

6)Asia Pacific Foods, which consists of our convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.

Net Revenue, Significant Expenses and Operating Profit/(Loss) by Segment


	12 Weeks Ended 6/14/2025
	PFNA		PBNA		IB Franchise		EMEA		LatAm Foods		Asia Pacific Foods		Total
Net revenue	$	6,476	$	6,796	$	1,368	$	4,536	$	2,548	$	1,002	$	22,726
Segment cost of sales (a)	2,471		2,990		400		2,638		1,074		627
Segment selling, general and administrative expenses (a)	2,517		2,812		430		1,241		929		282
Restructuring and impairment charges (b)	91		48		3		36		12		3
Acquisition and divestiture-related charges (c)	6		56		—		—		—		—

Impairment and other charges (d)	—		1,529		—		251		—		80


Segment operating profit/(loss)	$	1,391	$	(639)	$	535	$	370	$	533	$	10	$	2,200
Corporate unallocated expenses													(411)
Operating profit													1,789
Other pension and retiree medical benefits income													42
Net interest expense and other													(260)
Income before income taxes													$	1,571


	12 Weeks Ended 6/15/2024
	PFNA		PBNA		IB Franchise		EMEA		LatAm Foods		Asia Pacific Foods		Total
Net revenue	$	6,435	$	6,811	$	1,326	$	4,183	$	2,749	$	997	$	22,501
Segment cost of sales (a)	2,330		3,052		400		2,406		1,145		597
Segment selling, general and administrative expenses (a)	2,400		2,767		424		1,173		1,054		293
Restructuring and impairment charges (b)	13		5		—		22		16		4


Product recall-related impact (e)	15		—		—		—		—		—

Segment operating profit	$	1,677	$	987	$	502	$	582	$	534	$	103	$	4,385
Corporate unallocated expenses (f)													(337)
Operating profit													4,048
Other pension and retiree medical benefits income													56
Net interest expense and other													(234)
Income before income taxes													$	3,870


	24 Weeks Ended 6/14/2025
	PFNA		PBNA		IB Franchise		EMEA		LatAm Foods		Asia Pacific Foods		Total
Net revenue	$	12,689	$	12,672	$	2,127	$	6,924	$	4,209	$	2,024	$	40,645
Segment cost of sales (a)	4,819		5,649		612		4,045		1,772		1,239
Segment selling, general and administrative expenses (a)	4,807		5,434		698		1,989		1,541		531
Restructuring and impairment charges (b)	115		173		5		49		19		4
Acquisition and divestiture-related charges (c)	21		66		—		—		—		—
Impairment and other charges (d)	—		1,529		—		251		—		80


Segment operating profit/(loss)	$	2,927	$	(179)	$	812	$	590	$	877	$	170	$	5,197
Corporate unallocated expenses													(825)
Operating profit													4,372
Other pension and retiree medical benefits expense													65
Net interest expense and other													(524)
Income before income taxes													$	3,913


	24 Weeks Ended 6/15/2024
	PFNA		PBNA		IB Franchise		EMEA		LatAm Foods		Asia Pacific Foods		Total
Net revenue	$	12,704	$	12,685	$	2,065	$	6,616	$	4,639	$	2,042	$	40,751
Segment cost of sales (a)	4,602		5,805		617		3,877		1,910		1,207
Segment selling, general and administrative expenses (a)	4,699		5,366		685		1,903		1,752		553
Restructuring and impairment charges (b)	39		15		—		40		21		4
Acquisition and divestiture-related charges (c)	—		2		—		—		—		—

Product recall-related impact (e)	182		—		—		—		—		—

Segment operating profit	$	3,182	$	1,497	$	763	$	796	$	956	$	278	$	7,472
Corporate unallocated expenses (f)													(707)
Operating profit													6,765
Other pension and retiree medical benefits expense													114
Net interest expense and other													(436)
Income before income taxes													$	6,443

(a)Does not include items recorded in the cost of sales or selling, general and administrative expenses lines on our income statement that are presented in the restructuring and impairment charges, acquisition and divestiture-related charges, impairment and other charges and product recall-related impact lines of these tables.

(b)See Note 3 for further information related to restructuring and impairment charges.

(c)See Note 12 for further information related to acquisitions and divestiture-related charges.

(d)In the 12 and 24 weeks ended June 14, 2025, we recorded pre-tax charges of $1,860 million ($1,447 million after-tax or $1.05 per share), of which $1,780 million is related to the impairment of the Rockstar brand in our PBNA and EMEA segments. The remaining $80 million is related to the impairment of the Be & Cheery brand in our Asia Pacific Foods segment. See Note 4 for further information.

(e)In the 12 weeks ended June 15, 2024, we recorded a pre-tax charge of $15 million ($11 million after-tax or $0.01 per share) associated with a previously announced voluntary recall of certain bars and cereals in our PFNA segment (Quaker Recall) with $8 million recorded in cost of sales and $7 million recorded in selling, general and administrative expenses. In the 24 weeks ended June 15, 2024, we recorded a pre-tax charge of $182 million ($139 million after-tax or $0.10 per share) associated with the Quaker Recall, with $175 million recorded in cost of sales related to property, plant and equipment write-offs, employee severance costs and other costs and $7 million recorded in selling, general and administrative expenses.

(f)In the 12 and 24 weeks ended June 15, 2024, we recorded a pre-tax gain of $76 million ($57 million after-tax or $0.04 per share) in selling, general and administrative expenses as a result of the sale of a corporate asset.

Disaggregation of Net Revenue

Our primary performance obligation is the distribution and sales of beverage and convenient food products to our customers. The following tables reflect the percentage of net revenue generated between our beverage business and our convenient food business:


	12 Weeks Ended
	6/14/2025				6/15/2024
	Beverages(a)		Convenient Foods		Beverages(a)		Convenient Foods




North America	51	%	49	%	51	%	49	%
International (b)	33	%	67	%	30	%	70	%
PepsiCo	43	%	57	%	43	%	57	%


	24 Weeks Ended
	6/14/2025				6/15/2024
	Beverages(a)		Convenient Foods		Beverages(a)		Convenient Foods




North America	50	%	50	%	50	%	50	%
International (b)	31	%	69	%	28	%	72	%
PepsiCo	43	%	57	%	42	%	58	%

(a)Beverage revenue from company-owned bottlers, which includes our consolidated bottling operations in our PBNA and EMEA segments, was 36% of our consolidated net revenue in the 12 and 24 weeks ended June 14, 2025 and 36% and 35% of our consolidated

net revenue in the 12 and 24 weeks ended June 15, 2024, respectively. Generally, our finished goods beverage operations produce higher net revenue but lower operating margins as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.

(b)Beverage and convenient foods revenue generated from our EMEA segment was 38% and 62% of EMEA net revenue, respectively, in the 12 weeks ended June 14, 2025, 36% and 64% of EMEA net revenue, respectively, in the 24 weeks ended June 14, 2025 and 35% and 65% of EMEA net revenue, respectively, in the 12 and 24 weeks ended June 15, 2024.

Other Segment Information

Capital spending, amortization of intangible assets, and depreciation and other amortization of each segment are as follows:


	12 Weeks Ended
	Capital Spending(a)				Amortization of Intangible Assets				Depreciation and Other Amortization
	6/14/2025		6/15/2024		6/14/2025		6/15/2024		6/14/2025		6/15/2024
PFNA	$	230	$	298	$	4	$	3	$	226	$	185
PBNA	283		298		5		5		236		243
IB Franchise	30		33		4		4		23		22
EMEA	137		177		4		4		131		110
LatAm Foods	115		145		1		1		99		102
Asia Pacific Foods	68		52		2		2		36		29
Total segment	863		1,003		20		19		751		691
Corporate	41		84		—		—		36		28
Total	$	904	$	1,087	$	20	$	19	$	787	$	719


	24 Weeks Ended
	Capital Spending(a)				Amortization of Intangible Assets				Depreciation and Other Amortization
	6/14/2025		6/15/2024		6/14/2025		6/15/2024		6/14/2025		6/15/2024
PFNA	$	425	$	535	$	8	$	6	$	432	$	374
PBNA	531		478		10		10		484		479
IB Franchise	46		44		7		7		39		37
EMEA	187		247		6		7		210		186
LatAm Foods	161		206		1		1		161		166
Asia Pacific Foods	92		71		3		3		58		49
Total segment	1,442		1,581		35		34		1,384		1,291
Corporate	65		120		—		—		72		54
Total	$	1,507	$	1,701	$	35	$	34	$	1,456	$	1,345

(a) Asset and other balance sheet information for segments is not provided to our chief operating decision maker.

Note 2 - Recently Issued Accounting Pronouncements

Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (FASB) issued guidance to improve the disclosure of expenses in commonly presented expense captions. The new guidance requires a public entity to provide tabular disclosure, on an annual and interim basis, of amounts for the following expense categories: (1) purchases of inventory, (2) employee compensation, (3) depreciation and (4) intangible asset amortization, as included in each relevant expense caption. A relevant expense caption is an expense caption presented on the face of the income statement that contains any of the expense categories noted. Additionally, on an annual and interim basis, a qualitative description is required for amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. The guidance also requires

certain amounts that are currently required to be disclosed to be included in the same tabular disclosure as these disaggregation requirements. Furthermore, on an annual and interim basis, a public entity is required to separately disclose selling expenses and annually, disclose a description of the selling expenses. The guidance is effective for 2027 annual reporting, and in the first quarter of 2028 for interim reporting, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted. We will adopt the guidance when it becomes effective, in our 2027 annual reporting and each quarter thereafter, on a prospective basis.

In December 2023, the FASB issued guidance to enhance transparency of income tax disclosures. On an annual basis, the new guidance requires a public entity to disclose: (1) specific categories in the rate reconciliation, (2) additional information for reconciling items that are equal to or greater than 5% of the amount computed by multiplying income (or loss) from continuing operations before income tax expense (or benefit) by the applicable statutory income tax rate, (3) income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes, with foreign taxes disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5% of total income taxes paid, (4) income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and (5) income tax expense (or benefit) from continuing operations disaggregated between federal (national), state and foreign. The guidance is effective for fiscal year 2025 annual reporting, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted. We will adopt the guidance when it becomes effective, in our 2025 annual reporting, on a prospective basis.

Note 3 - Restructuring and Impairment Charges

2019 Multi-Year Productivity Plan (2019 Productivity Plan)

The 2019 Productivity Plan leverages new technology and business models to further simplify, harmonize and automate processes; re-engineers our go-to-market and information systems, including deploying the right automation for each market; and simplifies our organization and optimizes our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 2024, we further expanded and extended the plan through the end of 2030 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $6.15 billion, including cash expenditures of approximately $5.1 billion. These pre-tax charges are expected to consist of approximately 55% of severance and other employee-related costs, 10% for asset impairments (all non-cash) resulting from plant closures and related actions, and 35% for other costs associated with the implementation of our initiatives.

The total plan pre-tax charges are expected to be incurred by segment approximately as follows:


			PFNA						PBNA						IB Franchise						EMEA						LatAm Foods						Asia Pacific Foods						Corporate
Expected pre-tax charges			15		%				25		%				1		%				30		%				10		%				4		%				15		%

A summary of our 2019 Productivity Plan charges is as follows:


	12 Weeks Ended				24 Weeks Ended
	6/14/2025		6/15/2024		6/14/2025		6/15/2024
Cost of sales	$	102	$	—	$	103	$	6
Selling, general and administrative expenses	113		66		309		149
Other pension and retiree medical benefits (income)/expense (a)	(2)		8		14		15
Total restructuring and impairment charges	$	213	$	74	$	426	$	170
After-tax amount	$	160	$	54	$	351	$	130
Impact on net income attributable to PepsiCo per common share	$	(0.12)	$	(0.04)	$	(0.26)	$	(0.09)


	12 Weeks Ended				24 Weeks Ended				Plan-to-Date
	6/14/2025		6/15/2024		6/14/2025		6/15/2024		through 6/14/2025
PFNA	$	91	$	13	$	115	$	39	$	547
PBNA	48		5		173		15		678
IB Franchise	3		—		5		—		56
EMEA	36		22		49		40		810
LatAm Foods	12		16		19		21		266
Asia Pacific Foods	3		4		4		4		91
Corporate	22		6		47		36		465
	215		66		412		155		2,913
Other pension and retiree medical benefits (income)/expense (a)	(2)		8		14		15		140
Total	$	213	$	74	$	426	$	170	$	3,053

(a)Income amount represents adjustments for changes in estimates of previously recorded amounts.


	12 Weeks Ended				24 Weeks Ended				Plan-to-Date
	6/14/2025		6/15/2024		6/14/2025		6/15/2024		through 6/14/2025
Severance and other employee costs	$	64	$	10	$	122	$	82	$	1,556
Asset impairments	85		3		87		4		393
Other costs	64		61		217		84		1,104
Total	$	213	$	74	$	426	$	170	$	3,053

Severance and other employee costs primarily include severance and other termination benefits, as well as voluntary separation arrangements. Other costs primarily include costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees.

A summary of our 2019 Productivity Plan activity for the 24 weeks ended June 14, 2025 is as follows:


	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
Liability as of December 28, 2024	$	338	$	—	$	26	$	364
2025 restructuring charges	122		87		217		426
Cash payments (a)	(153)		—		(234)		(387)
Non-cash charges and translation	(7)		(87)		1		(93)
Liability as of June 14, 2025	$	300	$	—	$	10	$	310

(a)Excludes cash expenditures of $3 million reported in the cash flow statement in pension and retiree medical contributions.

The majority of the restructuring accrual at June 14, 2025 is expected to be paid within a year.

Other Productivity Initiatives

There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2019 Productivity Plan.

We regularly evaluate different productivity initiatives beyond the productivity plan and other initiatives described above.

For information on additional impairment charges, see Notes 1 and 4 for impairment and other charges taken related to the impairments of the Rockstar and Be & Cheery brands.

Note 4 - Intangible Assets

A summary of our amortizable intangible assets is as follows:


	6/14/2025						12/28/2024
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Acquired franchise rights	$	835	$	(236)	$	599	$	821	$	(223)	$	598
Customer relationships (a)	812		(315)		497		565		(279)		286
Brands	1,077		(1,007)		70		1,051		(977)		74
Other identifiable intangibles	431		(286)		145		420		(276)		144
Total	$	3,155	$	(1,844)	$	1,311	$	2,857	$	(1,755)	$	1,102

(a)Increase is primarily related to acquisitions of VNGR Beverage, LLC (poppi) and Garza Food Ventures LLC (Siete). See Note 12 for further information on acquisitions.

The components of indefinite-lived intangible assets are as follows:


	6/14/2025		12/28/2024
Goodwill	$	18,952	$	17,534
Other indefinite-lived intangible assets
Reacquired franchise rights	7,535		7,437
Acquired franchise rights	1,878		1,858
Brands (a)	4,799		4,404
Total indefinite-lived intangible assets	$	33,164	$	31,233

(a)Increase is primarily related to acquisitions of poppi and Siete, partially offset by impairments to the Rockstar and Be & Cheery brands. See Note 12 for further information on acquisitions.

During the 12 weeks ended June 14, 2025, recent business performance in conjunction with lower expectations of future business performance compared to projections, as well as certain other market conditions, indicated a deterioration of the significant inputs used to determine the fair value of our indefinite-lived intangible assets in certain markets and required us to perform a quantitative assessment on certain assets. The fair value of our indefinite-lived intangible assets was estimated using discounted cash flows under the income approach, which we consider to be a Level 3 (significant unobservable inputs) measurement. We determined that the carrying value exceeded the fair value, which reflected our most current estimates of future sales and their contributions to operating profit and expected future cash flows (including perpetuity growth assumptions), as well as an increase in the weighted-average cost of capital. As a result of the quantitative assessment, we recorded pre-tax impairment charges of $1.9 billion ($1.4 billion after-tax or $1.05 per share) in impairment of intangible assets, primarily comprised of the Rockstar brand in our PBNA and EMEA segments. We continuously monitor the performance of all our indefinite-lived intangible assets and will perform our annual impairment assessment during our third quarter; for further information on our policies for indefinite-lived intangible assets, see Note 2 to our consolidated financial statements in our Recast Segment Information.

The change in the book value of goodwill is as follows:


	PFNA		PBNA		IB Franchise		EMEA(b)		LatAm Foods		Asia Pacific Foods		Total
Balance as of December 28, 2024	$	791	$	11,925	$	1,918	$	2,194	$	354	$	352	$	17,534
Acquisitions (a)	625		294		—		—		—		—		919

Translation and other	7		23		2		438		18		11		499
Balance as of June 14, 2025	$	1,423	$	12,242	$	1,920	$	2,632	$	372	$	363	$	18,952

(a)Related to the acquisitions of Siete in our PFNA segment and poppi in our PBNA segment. See Note 12 for further information on acquisitions.

(b)Translation and other primarily reflects the appreciation of the Russian ruble and the euro.

Note 5 - Income Taxes

Numerous countries, including European Union member states, have enacted, or are expected to enact, legislation incorporating the Organization for Economic Co-operation and Development (OECD) model rules for a global minimum tax rate of 15%. Widespread implementation is expected by the end of 2025, with certain countries that have not yet enacted potentially applying the legislation as of a retroactive date. Legislation enacted as of June 14, 2025 did not have a material impact on our financial statements for the 12 and 24 weeks ended June 14, 2025 and is not expected to have a material impact on our 2025 financial statements.

On July 4, 2025, the One Big Beautiful Bill (OBBB) Act, which includes a broad range of tax reform provisions, was signed into law in the United States and we continue to assess its impact. We currently do not expect the OBBB Act to have a material impact on our estimated annual effective tax rate in 2025.

Note 6 - Share-Based Compensation

The following table summarizes our total share-based compensation expense, which is primarily recorded in selling, general and administrative expenses:


	12 Weeks Ended				24 Weeks Ended
	6/14/2025		6/15/2024		6/14/2025		6/15/2024
Share-based compensation expense – equity awards	$	54	$	86	$	131	$	183
Share-based compensation expense – liability awards	(7)		5		(3)		10

Restructuring charges	(1)		1		(2)		(4)
Total	$	46	$	92	$	126	$	189

The following table summarizes share-based awards granted under the terms of the PepsiCo, Inc. Long-Term Incentive Plan:


	24 Weeks Ended
	6/14/2025			6/15/2024
	Granted(a)	Weighted-Average Grant Price		Granted(a)	Weighted-Average Grant Price
Stock options	1.4	$	153.75	1.8	$	164.25
RSUs and PSUs	2.1	$	153.71	2.3	$	164.25

(a)In millions. All grant activity is disclosed at target.

We granted long-term cash awards to certain executive officers and other senior executives with an aggregate target value of $22 million and $19 million during the 24 weeks ended June 14, 2025 and June 15, 2024, respectively.

For the 12 weeks ended June 14, 2025 and June 15, 2024, our grants of stock options, RSUs, PSUs and long-term cash awards were nominal.

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


	24 Weeks Ended
	6/14/2025		6/15/2024
Expected life	7 years		7 years
Risk-free interest rate	4.1	%	4.2	%
Expected volatility	16	%	16	%
Expected dividend yield	3.4	%	2.9	%

Note 7 - Pension and Retiree Medical Benefits

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


	12 Weeks Ended
	Pension								Retiree Medical
	U.S.				International
	6/14/2025		6/15/2024		6/14/2025		6/15/2024		6/14/2025		6/15/2024
Service cost	$	73	$	80	$	11	$	12	$	7	$	8
Other pension and retiree medical benefits income:
Interest cost	$	135	$	135	$	36	$	36	$	7	$	8
Expected return on plan assets	(186)		(202)		(47)		(50)		(3)		(3)
Amortization of prior service credits	—		(5)		—		(1)		(1)		(1)
Amortization of net losses/(gains)	20		18		6		5		(6)		(6)
Settlement/curtailment (gains)/losses	—		—		(1)		2		—		—
Special termination benefits	(2)		8		—		—		—		—
Total other pension and retiree medical benefits income	$	(33)	$	(46)	$	(6)	$	(8)	$	(3)	$	(2)
Total	$	40	$	34	$	5	$	4	$	4	$	6


	24 Weeks Ended
	Pension								Retiree Medical
	U.S.				International
	6/14/2025		6/15/2024		6/14/2025		6/15/2024		6/14/2025		6/15/2024
Service cost	$	145	$	160	$	19	$	21	$	14	$	15
Other pension and retiree medical benefits income:
Interest cost	$	270	$	270	$	62	$	63	$	14	$	15
Expected return on plan assets	(372)		(403)		(83)		(89)		(5)		(6)
Amortization of prior service cost/(credits)	1		(11)		—		(1)		(2)		(2)
Amortization of net losses/(gains)	39		36		10		9		(12)		(12)
Settlement/curtailment (gains)/losses	—		—		(1)		2		—		—
Special termination benefits	14		15		—		—		—		—
Total other pension and retiree medical benefits income	$	(48)	$	(93)	$	(12)	$	(16)	$	(5)	$	(5)
Total	$	97	$	67	$	7	$	5	$	9	$	10

We regularly evaluate opportunities to reduce risk and volatility associated with our pension and retiree medical plans.

In the 24 weeks ended June 14, 2025 and June 15, 2024, we made discretionary contributions of $250 million and $150 million, respectively, to our U.S. qualified defined benefit plans, and $29 million and $27 million, respectively, to our international defined benefit plans.

Note 8 - Debt Obligations

In the 24 weeks ended June 14, 2025, we issued the following notes:


Interest Rate		Maturity Date	Principal Amount(a)
4.400	%	February 2027	$	500
4.450	%	February 2028	$	750
4.600	%	February 2030	$	1,000
5.000	%	February 2035	$	1,250

(a)Excludes debt issuance costs, discounts and premiums.

The net proceeds from the issuances of the above notes were used for general corporate purposes, including the repayment of commercial paper.

In the 24 weeks ended June 14, 2025, $2.5 billion of U.S. dollar-denominated senior notes matured and were paid.

As of June 14, 2025, we had $7.7 billion of commercial paper outstanding, excluding discounts.

In the 12 and 24 weeks ended June 14, 2025, we entered into a new five-year unsecured revolving credit agreement (2025 Five-Year Credit Agreement), which expires on May 23, 2030. The 2025 Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to $5.0 billion in U.S. dollars and/or euros, including a $0.75 billion swing line subfacility for euro-denominated borrowings permitted to be borrowed on a same-day basis, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $5.75 billion (or the equivalent amount in euros). Additionally, we may, up to two times during the term of the 2025 Five-Year Credit Agreement, request renewal of the agreement for an additional one-year period. The 2025 Five-Year Credit Agreement replaced our $5.0 billion five-year credit agreement, dated as of May 24, 2024.

Also in the 12 and 24 weeks ended June 14, 2025, we entered into a new 364-day unsecured revolving credit agreement (2025 364-Day Credit Agreement), which expires on May 22, 2026. The 2025 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to $5.0 billion in U.S. dollars and/or euros, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $5.75 billion (or the equivalent amount in euros). We may request renewal of this facility for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to one year, which term loan would mature no later than the anniversary of the then effective termination date. The 2025 364-Day Credit Agreement replaced our $5.0 billion 364-day credit agreement, dated as of May 24, 2024.

Funds borrowed under the 2025 Five-Year Credit Agreement and the 2025 364-Day Credit Agreement may be used for general corporate purposes. Subject to certain conditions, we may borrow, prepay and reborrow amounts under these agreements. As of June 14, 2025, there were no outstanding borrowings under the 2025 Five-Year Credit Agreement or the 2025 364-Day Credit Agreement.

Note 9 - 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 rates and currency restrictions; and
interest rates.

There have been no material changes during the 24 weeks ended June 14, 2025 with respect to our risk management policies or strategies and valuation techniques used in measuring the fair value of the financial assets or liabilities disclosed in Note 9 to our consolidated financial statements in our Recast Segment Information.

Certain of our agreements with our counterparties require us to post full collateral on derivative instruments in a net liability position if our credit rating is at A2 (Moody’s Investors Service, Inc.) or A (S&P Global Ratings) and we have been placed on credit watch for possible downgrade or if our credit rating falls below either of these levels. The fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position as of June 14, 2025 was $110 million. We have posted no collateral under these contracts and no credit-risk-related contingent features were triggered as of June 14, 2025.

The notional amounts of our financial instruments used to hedge the above risks are as follows:


	Notional Amounts(a)
	6/14/2025		12/28/2024
Commodity contracts	$	1.3	$	1.4
Interest rate swap contracts	$	2.0	$	2.0
Foreign exchange contracts	$	3.1	$	3.1
Cross-currency contracts	$	1.2	$	1.2
Non-derivative debt instruments	$	3.2	$	2.9

(a)In billions.

As of June 14, 2025, approximately 22% of total debt was subject to variable rates, after the impact of the related interest rate swap contracts, compared to approximately 13% as of December 28, 2024.

Debt Securities

Available-for-Sale

The activity related to our Level 3 investments in certain available-for-sale debt securities is as follows:



	12 Weeks Ended				24 Weeks Ended

	6/14/2025		6/15/2024		6/14/2025		6/15/2024
Celsius Holdings, Inc. (Celsius):
Balance, beginning of period	$	888	$	1,847	$	785	$	1,156
Net unrealized gain/(loss)	77		(503)		187		188
Cash dividends received	(7)		(7)		(14)		(7)
Balance, end of period	$	958	$	1,337	$	958	$	1,337
Other:
Balance, beginning of period	$	242	$	—	$	256	$	—
Net unrealized gain/(loss)	19		—		5		—
Balance, end of period	$	261	$	—	$	261	$	—
Total available-for-sale balance, end of period	$	1,219	$	1,337	$	1,219	$	1,337

There were no impairment charges related to our investments in available-for-sale debt securities in both the 24 weeks ended June 14, 2025 and June 15, 2024. There were unrealized gains of $526 million and $800 million as of June 14, 2025 and June 15, 2024, respectively, associated with our available-for-sale debt securities.

Recurring Fair Value Measurements

The fair values of our financial assets and liabilities are categorized as follows:


		6/14/2025				12/28/2024
	Fair Value Hierarchy Levels(a)	Assets(a)		Liabilities(a)		Assets(a)		Liabilities(a)

Available-for-sale debt securities (b)	3	$	1,219	$	—	$	1,041	$	—
Index funds (c)	1	$	322	$	—	$	336	$	—
Prepaid forward contracts (d)	2	$	8	$	—	$	15	$	—
Deferred compensation (e)	2	$	—	$	481	$	—	$	503
Contingent consideration (f)	3	$	—	$	226	$	—	$	—
Derivatives designated as fair value hedging instruments:
Interest rate swap contracts (g)	2	$	7	$	10	$	—	$	46

Derivatives designated as cash flow hedging instruments:
Foreign exchange contracts (h)	2	$	5	$	40	$	55	$	3
Cross-currency contracts (h)	2	—		110		—		165
Commodity contracts (i)	2	74		14		27		6
		$	79	$	164	$	82	$	174
Derivatives designated as net investment hedging instruments:
Cross-currency contracts (h)	2	$	—	$	12	$	1	$	4

Derivatives not designated as hedging instruments:
Foreign exchange contracts (h)	2	$	10	$	28	$	28	$	12
Commodity contracts (i)	2	1		11		3		10
		$	11	$	39	$	31	$	22
Total derivatives at fair value (j)		$	97	$	225	$	114	$	246
Total		$	1,646	$	932	$	1,506	$	749

(a)Fair value hierarchy levels are categorized consistently by Level 1 (quoted prices in active markets for identical assets), Level 2 (significant other observable inputs) and Level 3 in both years. Unless otherwise noted, financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities.

(b)Classified as other assets. Includes $958 million and $785 million related to our investment in Celsius as of June 14, 2025 and December 28, 2024, respectively; also, includes $261 million and $256 million related to our other investment in available-for-sale debt securities as of June 14, 2025 and December 28, 2024, respectively. The fair value of our Level 3 investment in Celsius is estimated using probability-weighted discounted future cash flows based on a Monte Carlo simulation using significant unobservable inputs such as an 80% probability that a certain market-based condition will be met and an average estimated discount rate of 9.0% and 7.3% as of June 14, 2025 and December 28, 2024, respectively. The fair value of the other Level 3 investment is estimated using a lattice model primarily based on the underlying stock price, volatility and certain significant unobservable inputs, such as a discount rate of 8.3% based on an estimated synthetic credit rating. An increase in the probability that certain market-based conditions will be met or a decrease in the discount rate would result in a higher fair value measurement, while a decrease in the probability that certain market-based conditions will be met or an increase in the discount rate would result in a lower fair value measurement.

(c)Based on the price of index funds. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability.

(d)Based primarily on the price of our common stock.

(e)Based on the fair value of investments corresponding to employees’ investment elections.

(f)In connection with our acquisition of poppi, we recorded a liability at fair value for the contingent consideration payable upon achievement of certain performance milestones by the third quarter of 2027, with a maximum payment of $300 million. If these performance milestones are not met, no payment will be made. The fair value of the liability is estimated using discounted future cash flows based on a Monte Carlo simulation using significant unobservable inputs such as forecasts of net revenue and margin. An increase in the net revenue and margin forecasts would result in a higher fair value measurement, while a decrease in the net revenue and margin forecasts would result in a lower fair value measurement.

(g)Based on Secured Overnight Financing Rate forward rates. As of June 14, 2025, the carrying amount of hedged fixed-rate debt was $2.0 billion, which was classified on the balance sheet within long-term debt obligations.

(h)Based on recently reported market transactions of spot and forward rates.

(i)Primarily based on recently reported market transactions of swap arrangements.

(j)Derivative assets and liabilities are presented on a gross basis on our balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on our balance sheet as of June 14, 2025 and December 28, 2024 were not material. Collateral received or posted against our asset or liability positions was not material. Exchange-traded commodity futures are cash-settled on a daily basis and, therefore, not included in the table.

The carrying amounts of our cash and cash equivalents and short-term investments recorded at amortized cost approximate fair value (classified as Level 2 in the fair value hierarchy) due to their short-term maturity. The fair value of our debt obligations as of June 14, 2025 and December 28, 2024 was $47 billion and $40 billion, respectively, based upon prices of identical or similar instruments in the marketplace, which are considered Level 2 inputs.

Losses/(gains) on our fair value hedges recognized in the income statement are as follows:



	12 Weeks Ended				24 Weeks Ended

	6/14/2025		6/15/2024		6/14/2025		6/15/2024
Interest rate swap contracts (a)	$	(7)	$	—	$	(43)	$	—

(a)Interest rate derivative losses/(gains) are included in net interest expense and other. These losses/(gains) are substantially offset by decreases/increases in the value of the underlying debt, which are also included in net interest expense and other.

Losses/(gains) on our cash flow hedges are categorized as follows:


	12 Weeks Ended
	Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss				Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(a)
	6/14/2025		6/15/2024		6/14/2025		6/15/2024
Foreign exchange contracts	$	54	$	(1)	$	(8)	$	9
Cross-currency contracts	(36)		9		(34)		11
Commodity contracts	(45)		(11)		(11)		30
Total	$	(27)	$	(3)	$	(53)	$	50


		24 Weeks Ended
	Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss			Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(a)
		6/14/2025		6/15/2024		6/14/2025		6/15/2024
Foreign exchange contracts		$	70	$	(15)	$	(24)	$	18
Cross-currency contracts		(55)		34		(55)		35
Commodity contracts		(100)		28		(5)		51
Total		$	(85)	$	47	$	(84)	$	104

(a)Foreign exchange derivative losses/(gains) are included in net revenue and cost of sales. Cross-currency interest rate swap derivative losses/(gains) are included in selling, general and administrative expenses. Commodity derivative losses/(gains) are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. See Note 11 for further information.

As of June 14, 2025, we expect to reclassify net gains of $42 million related to our cash flow hedges from accumulated other comprehensive loss within common shareholders’ equity into net income during the next 12 months.

Losses/(gains) on our net investment hedges are categorized as follows:


		12 Weeks Ended
	Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss			Losses/(Gains) Recognized in Income Statement(a)
		6/14/2025		6/15/2024		6/14/2025		6/15/2024
Non-derivative debt instruments		$	174	$	(17)	$	—	$	—
Cross-currency contracts		12		—		(2)		—
Total		$	186	$	(17)	$	(2)	$	—


		24 Weeks Ended
	Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss			Losses/(Gains) Recognized in Income Statement(a)
		6/14/2025		6/15/2024		6/14/2025		6/15/2024
Non-derivative debt instruments		$	284	$	(69)	$	—	$	—
Cross-currency contracts		9		—		(4)		—
Total		$	293	$	(69)	$	(4)	$	—

(a)Amount excluded from the assessment of effectiveness recognized in earnings associated with cross-currency interest rate swaps.

Losses/(gains) recognized in the income statement related to our non-designated hedges are categorized as follows:


	12 Weeks Ended
	6/14/2025						6/15/2024
	Cost of sales		Selling, general and administrative expenses		Total		Cost of sales		Selling, general and administrative expenses		Total
Foreign exchange contracts	$	1	$	43	$	44	$	—	$	24	$	24
Commodity contracts	5		(8)		(3)		(14)		5		(9)
Total	$	6	$	35	$	41	$	(14)	$	29	$	15


	24 Weeks Ended
	6/14/2025						6/15/2024
	Cost of sales		Selling, general and administrative expenses		Total		Cost of sales		Selling, general and administrative expenses		Total
Foreign exchange contracts	$	1	$	54	$	55	$	—	$	42	$	42
Commodity contracts	(4)		(10)		(14)		(15)		(20)		(35)
Total	$	(3)	$	44	$	41	$	(15)	$	22	$	7

Note 10 - 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
	6/14/2025			6/15/2024
	Income		Shares(a)	Income		Shares(a)
Basic net income attributable to PepsiCo per common share	$	0.92		$	2.24
Net income available for PepsiCo common shareholders	$	1,263	1,371	$	3,083	1,375
Dilutive securities:
Stock options, RSUs, PSUs and other (b)	—		2	—		4
Diluted	$	1,263	1,373	$	3,083	1,379
Diluted net income attributable to PepsiCo per common share	$	0.92		$	2.23


	24 Weeks Ended
	6/14/2025			6/15/2024
	Income		Shares(a)	Income		Shares(a)





Basic net income attributable to PepsiCo per common share	$	2.26		$	3.73
Net income available for PepsiCo common shareholders	$	3,097	1,371	$	5,125	1,375
Dilutive securities:
Stock options, RSUs, PSUs and other (b)	—		3	—		5
Diluted	$	3,097	1,374	$	5,125	1,380
Diluted net income attributable to PepsiCo per common share	$	2.25		$	3.71

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

(b)The dilutive effect of these securities is calculated using the treasury stock method.

The weighted-average amount of antidilutive securities excluded from the calculation of diluted earnings per common share was 9 million and 8 million for the 12 and 24 weeks ended June 14, 2025, respectively, and 4 million for the 12 and 24 weeks ended June 15, 2024.

Note 11 - Accumulated Other Comprehensive Loss Attributable to PepsiCo

The changes in the balances of each component of accumulated other comprehensive loss attributable to PepsiCo are as follows:


	Currency Translation Adjustment		Cash Flow Hedges		Pension and Retiree Medical		Available-for-Sale Debt Securities and Other(a)		Accumulated Other Comprehensive Loss Attributable to PepsiCo
Balance as of December 28, 2024 (b)	$	(15,217)	$	82	$	(2,714)	$	237	$	(17,612)
Other comprehensive income/(loss) before reclassifications (c)	410		58		(4)		87		551
Amounts reclassified from accumulated other comprehensive loss	—		(31)		17		—		(14)
Net other comprehensive income	410		27		13		87		537
Tax amounts	26		(5)		(3)		(21)		(3)
Balance as of March 22, 2025 (b)	(14,781)		104		(2,704)		303		(17,078)
Other comprehensive income/(loss) before reclassifications (d)	915		27		(42)		84		984
Amounts reclassified from accumulated other comprehensive loss	—		(53)		18		—		(35)
Net other comprehensive income/(loss)	915		(26)		(24)		84		949
Tax amounts	46		8		5		(20)		39
Balance as of June 14, 2025 (b)	$	(13,820)	$	86	$	(2,723)	$	367	$	(16,090)

(a)The movements primarily represent fair value changes in available-for-sale debt securities, including our investment in Celsius convertible preferred stock. See Note 9 for further information.

(b)Pension and retiree medical amounts are net of taxes of $1,282 million as of December 28, 2024, $1,279 million as of March 22, 2025 and $1,284 million as of June 14, 2025.

(c)Currency translation adjustment primarily reflects appreciation of the Russian ruble and deprecation of the euro.

(d)Currency translation adjustment primarily reflects appreciation of the Russian ruble, Mexican peso and Canadian dollar.


	Currency Translation Adjustment		Cash Flow Hedges		Pension and Retiree Medical		Available-for-Sale Debt Securities and Other (a)		Accumulated Other Comprehensive Loss Attributable to PepsiCo
Balance as of December 30, 2023 (b)	$	(13,255)	$	(31)	$	(2,719)	$	471	$	(15,534)
Other comprehensive (loss)/income before reclassifications (c)	(168)		(47)		4		685		474
Amounts reclassified from accumulated other comprehensive loss	—		51		9		—		60
Net other comprehensive (loss)/income	(168)		4		13		685		534
Tax amounts	(14)		(1)		(2)		(162)		(179)
Balance as of March 23, 2024 (b)	(13,437)		(28)		(2,708)		994		(15,179)
Other comprehensive (loss)/income before reclassifications (d)	(295)		3		(1)		(511)		(804)
Amounts reclassified from accumulated other comprehensive loss	—		53		12		—		65
Net other comprehensive (loss)/income	(295)		56		11		(511)		(739)
Tax amounts	28		(14)		(2)		120		132
Balance as of June 15, 2024 (b)	$	(13,704)	$	14	$	(2,699)	$	603	$	(15,786)

(a)The movements primarily represent fair value changes in available-for-sale debt securities, including our investment in Celsius convertible preferred stock. See Note 9 for further information.

(b)Pension and retiree medical amounts are net of taxes of $1,282 million as of December 30, 2023 and $1,280 million as of March 23, 2024 and $1,278 million as of June 15, 2024.

(c)Currency translation adjustment primarily reflects depreciation of the South African rand, Canadian dollar and Russian ruble.

(d)Currency translation adjustment primarily reflects depreciation of the Egyptian pound.

The reclassifications from accumulated other comprehensive loss to the income statement are summarized as follows:


	12 Weeks Ended				24 Weeks Ended
	6/14/2025		6/15/2024		6/14/2025		6/15/2024		Affected Line Item in the Income Statement






Cash flow hedges:
Foreign exchange contracts	$	(2)	$	—	$	(2)	$	—	Net revenue
Foreign exchange contracts	(6)		9		(22)		18		Cost of sales
Cross-currency contracts	(34)		11		(55)		35		Selling, general and administrative expenses
Interest rate swap contracts	—		3		—		—		Selling, general and administrative expenses
Commodity contracts	(11)		30		(6)		51		Cost of sales
Commodity contracts	—		—		1		—		Selling, general and administrative expenses
Net (gains)/losses before tax	(53)		53		(84)		104
Tax amounts	13		(14)		22		(27)
Net (gains)/losses after tax	$	(40)	$	39	$	(62)	$	77

Pension and retiree medical items:
Amortization of net prior service credits	$	(1)	$	(7)	$	(1)	$	(14)	Other pension and retiree medical benefits income
Amortization of net losses	20		17		37		33		Other pension and retiree medical benefits income
Settlement/curtailment (gains)/losses	(1)		2		(1)		2		Other pension and retiree medical benefits income
Net losses before tax	18		12		35		21
Tax amounts	(4)		(2)		(8)		(4)
Net losses after tax	$	14	$	10	$	27	$	17






Total net (gains)/losses reclassified, net of tax	$	(26)	$	49	$	(35)	$	94

Note 12 - Acquisitions and Divestitures

Acquisition of Siete

On January 17, 2025, we acquired all of the outstanding equity interest in Siete, a Mexican-American foods business, for total consideration of $1.2 billion in cash.

We accounted for the transaction as a business combination in the first quarter of 2025. We recognized and measured the identifiable assets acquired and liabilities assumed at their estimated fair values on the date of acquisition, in our PFNA segment. The preliminary estimates of the fair value of the identifiable assets acquired and liabilities assumed in this transaction as of the acquisition date primarily include goodwill and other intangible assets of approximately $1.2 billion. These preliminary estimates include management’s assumptions and are subject to revision as additional information is obtained about the facts and circumstances that existed as of the acquisition date, primarily related to intangible assets, 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 the first quarter of 2026.

Acquisition of poppi

On May 19, 2025, we acquired all of the outstanding equity interest in poppi, a prebiotic soda business, for cash consideration of $1.95 billion and contingent consideration with an acquisition date fair value of

$0.2 billion. See Note 9 for further information on the contingent consideration. The purchase price will be adjusted for net working capital and net debt amounts as of the acquisition date. In connection with this acquisition, other payments may be incurred, subject to the achievement of certain conditions.

We accounted for the transaction as a business combination in the second quarter of 2025. We recognized and measured the identifiable assets acquired and liabilities assumed at their estimated fair values on the date of acquisition, in our PBNA segment. The preliminary estimates of the fair value of the identifiable assets acquired and liabilities assumed in this transaction as of the acquisition date primarily include goodwill and other intangible assets of approximately $2.1 billion. These preliminary estimates include management’s assumptions and are subject to revision as additional information is obtained about the facts and circumstances that existed as of the acquisition date, primarily related to intangible assets, 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 the second quarter of 2026.

Acquisition and Divestiture-Related Charges

Acquisition and divestiture-related charges primarily include transaction expenses, such as consulting, advisory and other professional fees, and merger and integration charges. Merger and integration charges include distribution agreement termination fees, employee-related costs, closing costs and other integration costs.

A summary of our acquisition and divestiture-related charges is as follows:


	12 Weeks Ended				24 Weeks Ended
	6/14/2025		6/15/2024		6/14/2025		6/15/2024
PFNA	$	6	$	—	$	21	$	—
PBNA	56		—		66		2





Total (a)	$	62	$	—	$	87	$	2


After-tax amount	$	48	$	—	$	67	$	1
Impact on net income attributable to PepsiCo per common share	$	(0.03)	$	—	$	(0.05)	$	—

(a)Recorded in selling, general and administrative expenses.

Note 13 - Supply Chain Financing Arrangements

We maintain voluntary supply chain finance agreements with several participating global financial institutions. Under these agreements, our suppliers, at their sole discretion, may elect to sell their accounts receivable with PepsiCo to these participating global financial institutions. As of both June 14, 2025 and December 28, 2024, $1.5 billion of our accounts payable are to suppliers participating in these financing arrangements. For further information on the key terms of these supply chain financing programs, see Note 14 to our consolidated financial statements in our Recast Segment Information.

Note 14 - Legal Contingencies

The Company is party to a variety of litigation, claims, legal or regulatory proceedings, inquiries and investigations. While the results of such litigation, claims, legal or regulatory proceedings, inquiries and investigations cannot be predicted with certainty, management believes that the final outcome of the foregoing is not expected to have a material adverse effect on our financial condition, results of operations or cash flows.

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