Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 14, 2014 | Jul. 16, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 14-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'PEP | ' |
Entity Registrant Name | 'PEPSICO INC | ' |
Entity Central Index Key | '0000077476 | ' |
Current Fiscal Year End Date | '--12-27 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 1,506,789,240 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 | ||||
Net Revenue | $16,894 | $16,807 | $29,517 | $29,388 | ||||
Cost of sales | 7,778 | 7,898 | 13,525 | 13,732 | ||||
Selling, general and administrative expenses | 6,198 | 6,013 | 11,246 | 11,079 | ||||
Amortization of intangible assets | 22 | 27 | 43 | 50 | ||||
Operating Profit | 2,896 | 2,869 | 4,703 | 4,527 | ||||
Interest expense | -209 | -208 | -410 | -422 | ||||
Interest income and other | 18 | 18 | 28 | 45 | ||||
Income before income taxes | 2,705 | 2,679 | 4,321 | 4,150 | ||||
Provision for income taxes | 718 | 654 | 1,107 | 1,040 | ||||
Net income | 1,987 | 2,025 | 3,214 | 3,110 | ||||
Less: Net income attributable to noncontrolling interests | 9 | 15 | 20 | 25 | ||||
Net Income Attributable to PepsiCo | $1,978 | $2,010 | $3,194 | $3,085 | ||||
Net Income Attributable to PepsiCo per Common Share | ' | ' | ' | ' | ||||
Basic | $1.30 | $1.30 | $2.10 | $1.99 | ||||
Diluted | $1.29 | $1.28 | $2.08 | $1.97 | ||||
Weighted-average common shares outstanding | ' | ' | ' | ' | ||||
Basic | 1,515 | [1] | 1,548 | [1] | 1,519 | [1] | 1,546 | [1] |
Diluted | 1,532 | [1] | 1,567 | [1] | 1,536 | [1] | 1,565 | [1] |
Cash dividends declared per common share | $0.66 | $0.57 | $1.22 | $1.10 | ||||
[1] | Weighted-average common shares outstanding (in millions). |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 |
Net income | $1,987 | $2,025 | $3,214 | $3,110 |
Other Comprehensive Gain/(Loss) | ' | ' | ' | ' |
Currency translation adjustment, pre-tax amount | 460 | -718 | -414 | -953 |
Currency translation adjustment, tax amounts | 0 | 0 | 0 | 0 |
Currency translation adjustment, after-tax amounts | 460 | -718 | -414 | -953 |
Cash flow hedges: | ' | ' | ' | ' |
Reclassification of net losses to net income, pre-tax amounts | 11 | -8 | 21 | 51 |
Reclassification of net losses to net income, tax amounts | -5 | 2 | -9 | -19 |
Reclassification of net losses to net income, after-tax amounts | 6 | -6 | 12 | 32 |
Net derivative gains/(losses), pre-tax amounts | -41 | 5 | -25 | -18 |
Net derivative gains/(losses), tax amounts | 12 | -1 | 7 | 16 |
Net derivative gains/(losses), after-tax amounts | -29 | 4 | -18 | -2 |
Pension and retiree medical: | ' | ' | ' | ' |
Reclassification of net losses to net income, pre-tax amounts | 53 | 84 | 101 | 163 |
Reclassification of net losses to net income, tax amounts | -17 | -27 | -33 | -54 |
Reclassification of net losses to net income, after-tax amounts | 36 | 57 | 68 | 109 |
Remeasurement of net liabilities and translation, pre-tax amounts | -13 | 2 | -10 | 45 |
Remeasurement of net liabilities and translation, tax amounts | 4 | -1 | 3 | -13 |
Remeasurement of net liabilities and translation, after-tax amounts | -9 | 1 | -7 | 32 |
Unrealized (losses)/gains on securities, pre-tax amounts | -7 | 20 | 11 | 19 |
Unrealized (losses)/gains on securities, tax amounts | 3 | -10 | -6 | -10 |
Unrealized (losses)/gains on securities, after-tax amounts | -4 | 10 | 5 | 9 |
Other Comprehensive Income, Other, before Tax | ' | -1 | ' | -1 |
Other Comprehensive Income, Other, Tax | ' | -16 | ' | -16 |
Other Comprehensive Income, Other, Net of Tax | ' | -17 | 0 | -17 |
Total Other Comprehensive Gain / (Loss), pre-tax amounts | 463 | -616 | -316 | -694 |
Total Other Comprehensive Gain / (Loss), tax amounts | -3 | -53 | -38 | -96 |
Total Other Comprehensive Gain / (Loss), after-tax amounts | 460 | -669 | -354 | -790 |
Comprehensive income | 2,447 | 1,356 | 2,860 | 2,320 |
Comprehensive income attributable to noncontrolling interests | -10 | -14 | -20 | -23 |
Comprehensive Income Attributable to PepsiCo | $2,437 | $1,342 | $2,840 | $2,297 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 |
Operating Activities | ' | ' |
Net income | $3,214 | $3,110 |
Depreciation and amortization | 1,162 | 1,185 |
Stock-based compensation expense | 140 | 149 |
Cash payments for merger and integration charges | 0 | -17 |
Restructuring and impairment charges | 190 | 30 |
Payments for Restructuring | -112 | -74 |
Cash payments for restructuring and other charges related to the transaction with Tingyi (Cayman Islands) Holding Corp. (Tingyi) | 0 | -18 |
Non-cash foreign exchange loss related to Venezuela devaluation | 0 | 111 |
Excess tax benefits from share-based payment arrangements | -64 | -83 |
Pension and retiree medical plan expenses | 243 | 306 |
Pension and retiree medical plan contributions | -155 | -180 |
Deferred income taxes and other tax charges and credits | 35 | -189 |
Change in accounts and notes receivable | -1,554 | -1,088 |
Change in inventories | -822 | -659 |
Change in prepaid expenses and other current assets | -152 | -241 |
Change in accounts payable and other current liabilities | 120 | 400 |
Change in income taxes payable | 636 | 543 |
Other, net | -209 | -270 |
Net Cash Provided by Operating Activities | 2,672 | 3,015 |
Investing Activities | ' | ' |
Capital spending | -921 | -911 |
Sales of property, plant and equipment | 42 | 30 |
Cash payments related to the transaction with Tingyi | 0 | -3 |
Acquisitions and investments in noncontrolled affiliates | -31 | -59 |
Divestitures | 123 | 174 |
More than three months – purchases | 118 | -4 |
Payments for (Proceeds from) Short-term investments - More Than Three Months | 3,498 | ' |
Other investing, net | 5 | -13 |
Net Cash Used for Investing Activities | -4,162 | -786 |
Financing Activities | ' | ' |
Proceeds from issuances of long-term debt | 3,364 | 2,491 |
Payments of long-term debt | -1,655 | -1,945 |
Short-term borrowings, by original maturity | ' | ' |
More than three months – proceeds | 1 | 6 |
More than three months – payments | -9 | -481 |
Three months or less, net | 1,556 | 1,228 |
Cash dividends paid | -1,752 | -1,677 |
Share repurchases – common | -2,199 | -1,028 |
Share repurchases – preferred | -3 | -4 |
Proceeds from exercises of stock options | 381 | 823 |
Excess tax benefits from share-based payment arrangements | 64 | 83 |
Acquisition of noncontrolling interests | 0 | -20 |
Other financing | -3 | -3 |
Net Cash Used for Financing Activities | -255 | -527 |
Effect of exchange rate changes on cash and cash equivalents | -23 | -206 |
Net (Decrease)/Increase in Cash and Cash Equivalents | -1,768 | 1,496 |
Cash and Cash Equivalents, Beginning of Year | 9,375 | 6,297 |
Cash and Cash Equivalents, End of Period | $7,607 | $7,793 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Jun. 14, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $7,607 | $9,375 |
Short-term investments | 3,692 | 303 |
Accounts and notes receivable, less allowance: 6/14 - $156 and 12/13 - $145 | 8,470 | 6,954 |
Inventories | ' | ' |
Raw materials | 1,965 | 1,732 |
Work-in-process | 341 | 168 |
Finished goods | 1,888 | 1,509 |
Inventory, Net, Total | 4,194 | 3,409 |
Prepaid expenses and other current assets | 1,832 | 2,162 |
Total Current Assets | 25,795 | 22,203 |
Property, Plant and Equipment | 37,376 | 36,961 |
Accumulated Depreciation | -19,202 | -18,386 |
Property, Plant and Equipment, Net, Total | 18,174 | 18,575 |
Amortizable Intangible Assets, net | 1,585 | 1,638 |
Goodwill | 16,457 | 16,613 |
Other Nonamortizable Intangible Assets | 14,205 | 14,401 |
Nonamortizable Intangible Assets | 30,662 | 31,014 |
Investments in Noncontrolled Affiliates | 1,902 | 1,841 |
Other Assets | 2,315 | 2,207 |
Total Assets | 80,433 | 77,478 |
Current Liabilities | ' | ' |
Short-term obligations | 7,242 | 5,306 |
Accounts payable and other current liabilities | 12,986 | 12,533 |
Total Current Liabilities | 20,228 | 17,839 |
Long-term Debt Obligations | 25,606 | 24,333 |
Other Liabilities | 4,927 | 4,931 |
Deferred Income Taxes | 6,072 | 5,986 |
Total Liabilities | 56,833 | 53,089 |
Commitments and Contingencies | ' | ' |
Preferred Stock, no par value | 41 | 41 |
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: 1,511 and 1,529 shares, respectively) | 25 | 25 |
Capital in excess of par value | 3,978 | 4,095 |
Retained earnings | 47,748 | 46,420 |
Accumulated other comprehensive loss | -5,481 | -5,127 |
Total PepsiCo Common Shareholders’ Equity | 23,604 | 24,409 |
Noncontrolling interests | 129 | 110 |
Total Equity | 23,600 | 24,389 |
Total Liabilities and Equity | 80,433 | 77,478 |
Preferred Stock | ' | ' |
Current Liabilities | ' | ' |
Repurchased Preferred Stock | -174 | -171 |
PepsiCo Common Shareholders' Equity | ' | ' |
Repurchased common stock, in excess of par value (355 and 337 shares, respectively) | -174 | -171 |
Total Equity | 41 | ' |
Common Stock | ' | ' |
Current Liabilities | ' | ' |
Repurchased Preferred Stock | -22,666 | -21,004 |
PepsiCo Common Shareholders' Equity | ' | ' |
Repurchased common stock, in excess of par value (355 and 337 shares, respectively) | -22,666 | -21,004 |
Total Equity | $25 | $25 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Jun. 14, 2014 | Dec. 28, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Accounts and notes receivable, allowance | $156 | $145 |
Preferred Stock, no par value | ' | ' |
Common stock, Par value | $0.02 | $0.02 |
Common stock, Authorized | 3,600 | 3,600 |
Common stock, Issued | 1,511 | 1,529 |
Repurchased common stock, shares | 355 | 337 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Preferred Stock | Redeemable Preferred Stock [Member] | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Repurchased Common Stock | Equity [Member] | Noncontrolling Interests | |
In Millions, unless otherwise specified | |||||||||||
Balance, beginning of year at Dec. 29, 2012 | ' | ' | ($164) | $26 | $4,178 | $43,158 | ($5,487) | ($19,458) | ' | $105 | |
Shares issued at Dec. 29, 2012 | ' | ' | 0.6 | ' | ' | ' | ' | 322 | ' | ' | |
Balance, beginning of year, shares at Dec. 29, 2012 | ' | ' | ' | 1,544 | ' | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Redemptions, shares | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | |
Redemptions | ' | ' | -4 | ' | ' | ' | ' | ' | ' | ' | |
Stock-based compensation expense | ' | ' | ' | ' | 149 | ' | ' | ' | ' | ' | |
Other | ' | ' | ' | ' | -13 | ' | ' | ' | ' | ' | |
Net income attributable to PepsiCo | 3,085 | ' | ' | ' | ' | 3,085 | ' | ' | ' | ' | |
Cash dividends declared - common | ' | ' | ' | ' | ' | -1,710 | ' | ' | ' | ' | |
Cash dividends declared - RSUs | ' | ' | ' | ' | ' | -10 | ' | ' | ' | ' | |
Currency translation adjustment | ' | ' | ' | ' | ' | ' | -951 | ' | ' | -2 | |
Cash flow hedges: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net derivative losses | -2 | ' | ' | ' | ' | ' | -2 | ' | ' | ' | |
Reclassification of net losses to net income | 32 | ' | ' | ' | ' | ' | 32 | ' | ' | ' | |
Pension and retiree medical: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification of net losses to net income | ' | ' | ' | ' | ' | ' | 109 | ' | ' | ' | |
Remeasurement of net liabilities and translation | ' | ' | ' | ' | ' | ' | 32 | ' | ' | ' | |
Unrealized gains on securities, net of tax | 9 | ' | ' | ' | ' | ' | 9 | ' | ' | ' | |
Share repurchases, shares | ' | ' | ' | 3 | ' | ' | ' | -15 | ' | ' | |
Share repurchases | ' | ' | ' | 0 | ' | ' | ' | -1,123 | ' | ' | |
Stock option exercises, shares | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | |
Stock option exercises | ' | ' | ' | ' | -249 | [1] | ' | ' | 962 | ' | ' |
Payments Related to Tax Withholding for Share-based Compensation | ' | ' | ' | ' | -70 | ' | ' | ' | ' | ' | |
Other (in shares) | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | |
Other | ' | ' | ' | ' | ' | ' | ' | 136 | ' | ' | |
Net income attributable to noncontrolling interests | -25 | ' | ' | ' | ' | ' | ' | ' | ' | 25 | |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | -15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Acquisitions and divestitures | -7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Noncontrolling Interest-Other, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Other Comprehensive Income, Other, Net of Tax | -17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Balance, end of period at Jun. 15, 2013 | 22,765 | 41 | -168 | 26 | 3,995 | 44,523 | -6,275 | -19,483 | ' | 106 | |
Total PepsiCo Common Shareholders’ Equity at Jun. 15, 2013 | 22,786 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Shares issued at Jun. 15, 2013 | ' | 0.8 | 0.6 | ' | ' | ' | ' | 319 | ' | ' | |
Balance, end of year, shares at Jun. 15, 2013 | ' | ' | ' | 1,547 | ' | ' | ' | ' | ' | ' | |
Balance, beginning of year at Dec. 28, 2013 | 24,389 | ' | -171 | 25 | 4,095 | 46,420 | -5,127 | -21,004 | ' | 110 | |
Shares issued at Dec. 28, 2013 | ' | ' | 0.6 | ' | ' | ' | ' | 337 | ' | ' | |
Balance, beginning of year, shares at Dec. 28, 2013 | ' | ' | ' | 1,529 | ' | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Redemptions, shares | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | |
Redemptions | ' | ' | -3 | ' | ' | ' | ' | ' | ' | ' | |
Stock-based compensation expense | ' | ' | ' | ' | 140 | ' | ' | ' | ' | ' | |
Other | ' | ' | ' | ' | 16 | ' | ' | ' | ' | ' | |
Net income attributable to PepsiCo | 3,194 | ' | ' | ' | ' | 3,194 | ' | ' | ' | ' | |
Cash dividends declared - common | ' | ' | ' | ' | ' | -1,855 | ' | ' | ' | ' | |
Cash dividends declared - RSUs | ' | ' | ' | ' | ' | -11 | ' | ' | ' | ' | |
Currency translation adjustment | ' | ' | ' | ' | ' | ' | -414 | ' | ' | ' | |
Cash flow hedges: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net derivative losses | -18 | ' | ' | ' | ' | ' | -18 | ' | ' | ' | |
Reclassification of net losses to net income | 12 | ' | ' | ' | ' | ' | 12 | ' | ' | ' | |
Pension and retiree medical: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification of net losses to net income | ' | ' | ' | ' | ' | ' | 68 | ' | ' | ' | |
Remeasurement of net liabilities and translation | ' | ' | ' | ' | ' | ' | -7 | ' | ' | ' | |
Unrealized gains on securities, net of tax | 5 | ' | ' | ' | ' | ' | 5 | ' | ' | ' | |
Share repurchases, shares | ' | ' | ' | -18 | ' | ' | ' | -27 | ' | ' | |
Share repurchases | ' | ' | ' | 0 | ' | ' | ' | -2,262 | ' | ' | |
Stock option exercises, shares | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | |
Stock option exercises | ' | ' | ' | ' | -193 | [1] | ' | ' | 441 | ' | ' |
Payments Related to Tax Withholding for Share-based Compensation | ' | ' | ' | ' | -80 | ' | ' | ' | ' | ' | |
Other (in shares) | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | |
Other | ' | ' | ' | ' | ' | ' | ' | 159 | ' | ' | |
Net income attributable to noncontrolling interests | -20 | ' | ' | ' | ' | ' | ' | ' | ' | 20 | |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Acquisitions and divestitures | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Noncontrolling Interest-Other, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | |
Other Comprehensive Income, Other, Net of Tax | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Balance, end of period at Jun. 14, 2014 | 23,600 | 41 | -174 | 25 | 3,978 | 47,748 | -5,481 | -22,666 | 23,600 | 129 | |
Total PepsiCo Common Shareholders’ Equity at Jun. 14, 2014 | 23,604 | ' | ' | ' | ' | ' | ' | ' | 23,604 | ' | |
Shares issued at Jun. 14, 2014 | ' | 0.8 | 0.6 | ' | ' | ' | ' | 355 | ' | ' | |
Balance, end of year, shares at Jun. 14, 2014 | ' | ' | ' | 1,511 | ' | ' | ' | ' | ' | ' | |
Balance, beginning of year at Mar. 22, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income attributable to PepsiCo | 1,978 | ' | ' | ' | ' | 1,978 | ' | ' | ' | ' | |
Cash flow hedges: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net derivative losses | -29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reclassification of net losses to net income | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Pension and retiree medical: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Unrealized gains on securities, net of tax | -4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income attributable to noncontrolling interests | -9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Balance, end of period at Jun. 14, 2014 | 23,600 | 41 | ' | ' | ' | 47,748 | ' | ' | 23,600 | ' | |
Total PepsiCo Common Shareholders’ Equity at Jun. 14, 2014 | $23,604 | ' | ' | ' | ' | ' | ' | ' | $23,604 | ' | |
Shares issued at Jun. 14, 2014 | ' | 0.8 | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Includes total tax benefits of $26 million in 2014 and $31 million in 2013. |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 |
Stock option exercises/RSUs converted, tax benefits | $26 | $31 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | |||||||||||||||
Jun. 14, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Basis of Presentation and Our Divisions | ' | |||||||||||||||
Basis of Presentation | ||||||||||||||||
When used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its consolidated subsidiaries. | ||||||||||||||||
Our Condensed Consolidated Balance Sheet as of June 14, 2014, Condensed Consolidated Statements of Income and Comprehensive Income for the 12 and 24 weeks ended June 14, 2014 and June 15, 2013, and the Condensed Consolidated Statements of Cash Flows and Equity for the 24 weeks ended June 14, 2014 and June 15, 2013 have not been audited. These 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, 2013. 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, 2014 and June 15, 2013 are not necessarily indicative of the results expected for the full year. | ||||||||||||||||
The results of our Venezuelan businesses have been reported under highly inflationary accounting since the beginning of 2010. See further unaudited information in “Our Business Risks,” “Items Affecting Comparability” and “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. | ||||||||||||||||
While our North America (United States and Canada) results are reported on a 12-week basis, most of our international operations report on a monthly calendar basis for which the months of March, April and May are reflected in our second quarter results. | ||||||||||||||||
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. Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw material handling facilities, are included in cost of sales. The costs of moving, storing and delivering finished product are included in selling, general and administrative expenses. | ||||||||||||||||
The following information is unaudited. 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. This report should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 28, 2013. | ||||||||||||||||
Our Divisions | ||||||||||||||||
We are organized into four business units, as follows: | ||||||||||||||||
1 | PepsiCo Americas Foods, which includes Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and all of our Latin American food and snack businesses (LAF); | |||||||||||||||
2 | PepsiCo Americas Beverages (PAB), which includes all of our North American and Latin American beverage businesses; | |||||||||||||||
3 | PepsiCo Europe (Europe), which includes all beverage, food and snack businesses in Europe and South Africa; and | |||||||||||||||
4 | PepsiCo Asia, Middle East and Africa (AMEA), which includes all beverage, food and snack businesses in AMEA, excluding South Africa. | |||||||||||||||
Our four business units comprise six reportable segments (also referred to as divisions), as follows: | ||||||||||||||||
• | FLNA, | |||||||||||||||
• | QFNA, | |||||||||||||||
• | LAF, | |||||||||||||||
• | PAB, | |||||||||||||||
• | Europe, and | |||||||||||||||
• | AMEA. | |||||||||||||||
Net revenue and operating profit of each division are as follows: | ||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | |||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||
Net Revenue | ||||||||||||||||
FLNA | $ | 3,387 | $ | 3,332 | $ | 6,606 | $ | 6,455 | ||||||||
QFNA | 564 | 577 | 1,198 | 1,211 | ||||||||||||
LAF | 2,122 | 2,116 | 3,460 | 3,483 | ||||||||||||
PAB | 5,281 | 5,260 | 9,707 | 9,680 | ||||||||||||
Europe | 3,657 | 3,653 | 5,618 | 5,595 | ||||||||||||
AMEA | 1,883 | 1,869 | 2,928 | 2,964 | ||||||||||||
$ | 16,894 | $ | 16,807 | $ | 29,517 | $ | 29,388 | |||||||||
12 Weeks Ended | 24 Weeks Ended | |||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||
Operating Profit | ||||||||||||||||
FLNA | $ | 937 | $ | 906 | $ | 1,799 | $ | 1,734 | ||||||||
QFNA | 139 | 133 | 299 | 313 | ||||||||||||
LAF | 323 | 318 | 555 | 534 | ||||||||||||
PAB | 868 | 882 | 1,297 | 1,447 | ||||||||||||
Europe | 451 | 425 | 603 | 513 | ||||||||||||
AMEA | 381 | 524 | 575 | 708 | ||||||||||||
Total division | 3,099 | 3,188 | 5,128 | 5,249 | ||||||||||||
Corporate Unallocated | ||||||||||||||||
Mark-to-market net gains/(losses) | 31 | (39 | ) | 65 | (55 | ) | ||||||||||
Restructuring and impairment charges | (8 | ) | (1 | ) | (5 | ) | (2 | ) | ||||||||
Venezuela currency devaluation | — | — | — | (124 | ) | |||||||||||
Other | (226 | ) | (279 | ) | (485 | ) | (541 | ) | ||||||||
$ | 2,896 | $ | 2,869 | $ | 4,703 | $ | 4,527 | |||||||||
Total assets of each division are as follows: | ||||||||||||||||
Total Assets | ||||||||||||||||
6/14/14 | 12/28/13 | |||||||||||||||
FLNA | $ | 5,476 | $ | 5,308 | ||||||||||||
QFNA | 1,017 | 983 | ||||||||||||||
LAF | 5,167 | 4,829 | ||||||||||||||
PAB | 31,152 | 30,350 | ||||||||||||||
Europe | 18,819 | 18,702 | ||||||||||||||
AMEA | 6,124 | 5,754 | ||||||||||||||
Total division | 67,755 | 65,926 | ||||||||||||||
Corporate (a) | 12,678 | 11,552 | ||||||||||||||
$ | 80,433 | $ | 77,478 | |||||||||||||
(a) | Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments, property, plant and equipment and certain pension and tax assets. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 14, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance on revenue recognition, which provides for a single five-step model to be applied to all revenue contracts with customers. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. There is no option for early adoption. The provisions of the new guidance will be effective as of the beginning of our 2017 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements and have not yet selected a transition approach to implement the standard. | |
In July 2013, the FASB issued new accounting guidance that requires an entity to net its liability for unrecognized tax positions against a net operating loss carryforward, a similar tax loss or a tax credit carryforward when settlement in this manner is available under the tax law. The provisions of this new guidance were effective as of the beginning of our 2014 fiscal year and did not have a material impact on our financial statements. | |
In December 2011, the FASB issued new disclosure requirements that were intended to enhance current disclosures on offsetting financial assets and liabilities. The disclosures required an entity to disclose both gross and net information about derivative instruments accounted for in accordance with the guidance on derivatives and hedging that are eligible for offset on the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. The provisions of the disclosure requirements were effective as of the beginning of our 2014 fiscal year. Accordingly, we included enhanced footnote disclosure in Note 10. |
Restructuring_Impairment_and_I
Restructuring, Impairment and Integration Charges | 6 Months Ended | ||||||||||||||||
Jun. 14, 2014 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Restructuring, Impairment and Integration Charges | ' | ||||||||||||||||
Restructuring, Impairment and Integration Charges | |||||||||||||||||
2014 Multi-Year Productivity Plan | |||||||||||||||||
The multi-year productivity plan we publicly announced on February 13, 2014 (2014 Productivity Plan) includes the next generation of productivity initiatives that we believe will strengthen our food, snack and beverage businesses by accelerating our investment in manufacturing automation; further optimizing our global manufacturing footprint, including closing certain manufacturing facilities; re-engineering our go-to-market systems in developed markets; expanding shared services; and implementing simplified organization structures to drive efficiency. The 2014 Productivity Plan is in addition to the productivity plan we began implementing in 2012 and is expected to continue the benefits of that plan. | |||||||||||||||||
In the 12 weeks ended June 14, 2014, we incurred restructuring and impairment charges of $77 million ($55 million after-tax or $0.04 per share) in conjunction with the 2014 Productivity Plan. In the 24 weeks ended June 14, 2014, we incurred restructuring and impairment charges of $173 million ($128 million after-tax or $0.08 per share) in conjunction with the 2014 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses. The majority of the restructuring accrual at June 14, 2014 is expected to be paid by the end of 2014. | |||||||||||||||||
A summary of our 2014 Productivity Plan charges is as follows: | |||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | ||||||||||||||||
6/14/14 | 6/14/14 | ||||||||||||||||
FLNA | $ | 12 | $ | 24 | |||||||||||||
QFNA | — | 2 | |||||||||||||||
LAF | 5 | 6 | |||||||||||||||
PAB | 33 | 115 | |||||||||||||||
Europe | 13 | 15 | |||||||||||||||
AMEA | 7 | 9 | |||||||||||||||
Corporate | 7 | 2 | |||||||||||||||
$ | 77 | $ | 173 | ||||||||||||||
A summary of our 2014 Productivity Plan activity in 2014 is as follows: | |||||||||||||||||
Severance and Other | Asset Impairments | Other Costs | Total | ||||||||||||||
Employee Costs | |||||||||||||||||
Liability as of December 28, 2013 | $ | 30 | $ | — | $ | 1 | $ | 31 | |||||||||
2014 restructuring charges | 66 | 52 | 55 | 173 | |||||||||||||
Cash payments | (16 | ) | — | (53 | ) | (69 | ) | ||||||||||
Non-cash charges | (6 | ) | (52 | ) | — | (58 | ) | ||||||||||
Liability as of June 14, 2014 | $ | 74 | $ | — | $ | 3 | $ | 77 | |||||||||
2012 Multi-Year Productivity Plan | |||||||||||||||||
The multi-year productivity plan we publicly announced on February 9, 2012 (2012 Productivity Plan) includes actions in every aspect of our business that we believe will strengthen our complementary food, snack and beverage businesses by leveraging new technologies and processes across PepsiCo’s operations, go-to-market and information systems; heightening the focus on best practice sharing across the globe; consolidating manufacturing, warehouse and sales facilities; and implementing simplified organization structures, with wider spans of control and fewer layers of management. The 2012 Productivity Plan continues to enhance PepsiCo’s cost-competitiveness and provide a source of funding for future brand-building and innovation initiatives. | |||||||||||||||||
In the 12 weeks ended June 14, 2014, we incurred restructuring and impairment charges of $15 million ($14 million after-tax or $0.01 per share) in conjunction with our 2012 Productivity Plan. In the 24 weeks ended June 14, 2014, we incurred restructuring and impairment charges of $17 million ($17 million after-tax or $0.01 per share) in conjunction with our 2012 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses. Substantially all of the restructuring accrual at June 14, 2014 is expected to be paid by the end of 2014. | |||||||||||||||||
In the 12 weeks ended June 15, 2013, we incurred restructuring and impairment charges of $19 million ($15 million after-tax or $0.01 per share) in conjunction with the 2012 Productivity Plan. In the 24 weeks ended June 15, 2013, we incurred restructuring and impairment charges of $30 million ($23 million after-tax or $0.01 per share) in conjunction with the 2012 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses. | |||||||||||||||||
A summary of our 2012 Productivity Plan charges is as follows: | |||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | ||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | ||||||||||||||
FLNA | $ | 1 | $ | 2 | $ | 2 | $ | 4 | |||||||||
QFNA | — | 1 | — | — | |||||||||||||
LAF (a) | — | 1 | (5 | ) | 5 | ||||||||||||
PAB | 3 | 5 | 7 | 5 | |||||||||||||
Europe | 10 | 8 | 8 | 12 | |||||||||||||
AMEA | — | 1 | 2 | 2 | |||||||||||||
Corporate | 1 | 1 | 3 | 2 | |||||||||||||
$ | 15 | $ | 19 | $ | 17 | $ | 30 | ||||||||||
(a) Income amount represents adjustments of previously recorded amounts. | |||||||||||||||||
A summary of our 2012 Productivity Plan activity in 2014 is as follows: | |||||||||||||||||
Severance and Other | Asset Impairments | Other Costs | Total | ||||||||||||||
Employee Costs | |||||||||||||||||
Liability as of December 28, 2013 | $ | 68 | $ | — | $ | 17 | $ | 85 | |||||||||
2014 restructuring charges | 10 | 4 | 3 | 17 | |||||||||||||
Cash payments | (27 | ) | — | (16 | ) | (43 | ) | ||||||||||
Non-cash charges | (5 | ) | (4 | ) | 2 | (7 | ) | ||||||||||
Liability as of June 14, 2014 | $ | 46 | $ | — | $ | 6 | $ | 52 | |||||||||
Intangible_Assets
Intangible Assets | 6 Months Ended | ||||||||||||||||||||||||
Jun. 14, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||
A summary of our amortizable intangible assets, net is as follows: | |||||||||||||||||||||||||
6/14/14 | 12/28/13 | ||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||
Acquired franchise rights | $ | 905 | $ | (90 | ) | $ | 815 | $ | 910 | $ | (83 | ) | $ | 827 | |||||||||||
Reacquired franchise rights | 107 | (92 | ) | 15 | 108 | (86 | ) | 22 | |||||||||||||||||
Brands | 1,397 | (1,009 | ) | 388 | 1,400 | (996 | ) | 404 | |||||||||||||||||
Other identifiable intangibles | 680 | (313 | ) | 367 | 686 | (301 | ) | 385 | |||||||||||||||||
$ | 3,089 | $ | (1,504 | ) | $ | 1,585 | $ | 3,104 | $ | (1,466 | ) | $ | 1,638 | ||||||||||||
The change in the book value of nonamortizable intangible assets is as follows: | |||||||||||||||||||||||||
Balance | Translation | Balance | |||||||||||||||||||||||
12/28/13 | and Other | 6/14/14 | |||||||||||||||||||||||
FLNA | |||||||||||||||||||||||||
Goodwill | $ | 305 | $ | (3 | ) | $ | 302 | ||||||||||||||||||
Brands | 29 | (1 | ) | 28 | |||||||||||||||||||||
334 | (4 | ) | 330 | ||||||||||||||||||||||
QFNA | |||||||||||||||||||||||||
Goodwill | 175 | — | 175 | ||||||||||||||||||||||
LAF | |||||||||||||||||||||||||
Goodwill | 660 | 11 | 671 | ||||||||||||||||||||||
Brands | 206 | 6 | 212 | ||||||||||||||||||||||
866 | 17 | 883 | |||||||||||||||||||||||
PAB | |||||||||||||||||||||||||
Goodwill | 9,943 | (6 | ) | 9,937 | |||||||||||||||||||||
Reacquired franchise rights | 7,281 | (24 | ) | 7,257 | |||||||||||||||||||||
Acquired franchise rights | 1,551 | 1 | 1,552 | ||||||||||||||||||||||
Brands | 146 | 3 | 149 | ||||||||||||||||||||||
18,921 | (26 | ) | 18,895 | ||||||||||||||||||||||
Europe | |||||||||||||||||||||||||
Goodwill | 5,027 | (176 | ) | 4,851 | |||||||||||||||||||||
Reacquired franchise rights | 760 | (28 | ) | 732 | |||||||||||||||||||||
Acquired franchise rights | 230 | (3 | ) | 227 | |||||||||||||||||||||
Brands | 4,071 | (156 | ) | 3,915 | |||||||||||||||||||||
10,088 | (363 | ) | 9,725 | ||||||||||||||||||||||
AMEA | |||||||||||||||||||||||||
Goodwill | 503 | 18 | 521 | ||||||||||||||||||||||
Brands | 127 | 6 | 133 | ||||||||||||||||||||||
630 | 24 | 654 | |||||||||||||||||||||||
Total goodwill | 16,613 | (156 | ) | 16,457 | |||||||||||||||||||||
Total reacquired franchise rights | 8,041 | (52 | ) | 7,989 | |||||||||||||||||||||
Total acquired franchise rights | 1,781 | (2 | ) | 1,779 | |||||||||||||||||||||
Total brands | 4,579 | (142 | ) | 4,437 | |||||||||||||||||||||
$ | 31,014 | $ | (352 | ) | $ | 30,662 | |||||||||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended | |||||||
Jun. 14, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
A rollforward of our reserves for all federal, state and foreign tax jurisdictions is as follows: | ||||||||
6/14/14 | 12/28/13 | |||||||
Balance, beginning of year | $ | 1,268 | $ | 2,425 | ||||
Additions for tax positions related to the current year | 153 | 238 | ||||||
Additions for tax positions from prior years | 19 | 273 | ||||||
Reductions for tax positions from prior years | (12 | ) | (327 | ) | ||||
Settlement payments | (62 | ) | (1,306 | ) | ||||
Statute of limitations expiration | (34 | ) | (30 | ) | ||||
Translation and other | (5 | ) | (5 | ) | ||||
Balance, end of period | $ | 1,327 | $ | 1,268 | ||||
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||||||||||
Jun. 14, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The following table summarizes our total stock-based compensation expense: | |||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | ||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | ||||||||||||||
Stock-based compensation expense | $ | 68 | $ | 72 | $ | 140 | $ | 149 | |||||||||
Restructuring and impairment benefits | — | — | (3 | ) | — | ||||||||||||
Total | $ | 68 | $ | 72 | $ | 137 | $ | 149 | |||||||||
Our weighted-average Black-Scholes fair value assumptions are as follows: | |||||||||||||||||
24 Weeks Ended | |||||||||||||||||
6/14/14 | 6/15/13 | ||||||||||||||||
Expected life | 6 years | 6 years | |||||||||||||||
Risk free interest rate | 1.8 | % | 1 | % | |||||||||||||
Expected volatility (a) | 16 | % | 17 | % | |||||||||||||
Expected dividend yield | 2.9 | % | 2.7 | % | |||||||||||||
(a) | Reflects movements in our stock price over the most recent historical period equivalent to the expected life. | ||||||||||||||||
For the 12 weeks ended June 14, 2014 and June 15, 2013, our grants of stock options, restricted stock units (RSUs) and PepsiCo equity performance units (PEPUnits) were nominal. | |||||||||||||||||
The following table summarizes awards granted under the terms of our 2007 Long-Term Incentive Plan: | |||||||||||||||||
24 Weeks Ended | |||||||||||||||||
6/14/14 | 6/15/13 | ||||||||||||||||
Granted (a) | Weighted-Average Grant Price | Granted (a) | Weighted-Average Grant Price | ||||||||||||||
Stock options | 3 | $ | 79.75 | 2.5 | $ | 75.75 | |||||||||||
RSUs | 4.2 | $ | 79.76 | 3.9 | $ | 75.75 | |||||||||||
PEPUnits | 0.4 | $ | 79.75 | 0.4 | $ | 75.75 | |||||||||||
(a) | In millions. |
Pension_and_Retiree_Medical_Be
Pension and Retiree Medical Benefits | 6 Months Ended | |||||||||||||||||||||||
Jun. 14, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||||||||
U.S. | International | |||||||||||||||||||||||
Service cost | $ | 90 | $ | 108 | $ | 24 | $ | 27 | $ | 8 | $ | 11 | ||||||||||||
Interest cost | 134 | 122 | 33 | 30 | 14 | 12 | ||||||||||||||||||
Expected return on plan assets | (181 | ) | (190 | ) | (44 | ) | (40 | ) | (6 | ) | (6 | ) | ||||||||||||
Amortization of prior service cost/(credit) | 4 | 5 | — | 1 | (5 | ) | (5 | ) | ||||||||||||||||
Amortization of net losses/(gains) | 41 | 66 | 13 | 16 | (1 | ) | — | |||||||||||||||||
88 | 111 | 26 | 34 | 10 | 12 | |||||||||||||||||||
Settlement loss | — | — | — | 1 | — | — | ||||||||||||||||||
Special termination benefits | — | 2 | — | — | 1 | — | ||||||||||||||||||
Total expense | $ | 88 | $ | 113 | $ | 26 | $ | 35 | $ | 11 | $ | 12 | ||||||||||||
24 Weeks Ended | ||||||||||||||||||||||||
Pension | Retiree Medical | |||||||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||||||||
U.S. | International | |||||||||||||||||||||||
Service cost | $ | 181 | $ | 216 | $ | 43 | $ | 49 | $ | 16 | $ | 21 | ||||||||||||
Interest cost | 268 | 243 | 57 | 52 | 28 | 25 | ||||||||||||||||||
Expected return on plan assets | (362 | ) | (380 | ) | (76 | ) | (70 | ) | (12 | ) | (12 | ) | ||||||||||||
Amortization of prior service cost/(credit) | 9 | 9 | — | 1 | (10 | ) | (10 | ) | ||||||||||||||||
Amortization of net losses/(gains) | 81 | 133 | 22 | 29 | (2 | ) | — | |||||||||||||||||
177 | 221 | 46 | 61 | 20 | 24 | |||||||||||||||||||
Settlement loss | — | — | — | 1 | — | — | ||||||||||||||||||
Special termination benefits | 8 | 3 | — | — | 1 | — | ||||||||||||||||||
Total expense | $ | 185 | $ | 224 | $ | 46 | $ | 62 | $ | 21 | $ | 24 | ||||||||||||
During the second quarter of 2014, we made discretionary contributions of $19 million to our international pension plans. During the first quarter of 2013, we made discretionary contributions of $13 million to our international pension plans. |
Debt_Obligations_and_Commitmen
Debt Obligations and Commitments | 6 Months Ended | |
Jun. 14, 2014 | ||
Debt Obligations and Commitments [Abstract] | ' | |
Debt Obligations and Commitments | ' | |
Debt Obligations | ||
In the first quarter of 2014, we issued: | ||
• | $750 million of 0.950% senior notes maturing in February 2017; and | |
• | $1.250 billion of 3.600% senior notes maturing in March 2024. | |
In the second quarter of 2014, we issued: | ||
• | €500 million of 1.750% senior notes maturing in April 2021; and | |
• | €500 million of 2.625% senior notes maturing in April 2026. | |
The net proceeds from the issuances of the above notes were used for general corporate purposes, including the repayment of commercial paper. | ||
Also in the first quarter of 2014, $1.7 billion of senior notes matured and were paid. | ||
In the second quarter of 2014, we entered into a new five-year unsecured revolving credit agreement (Five-Year Credit Agreement) which expires on June 9, 2019. Subsequent to the end of the second quarter, we increased commitments under this agreement. The Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.7725 billion, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $4.5 billion. Additionally, we may, once a year, request renewal of the agreement for an additional one-year period. | ||
Also in the second quarter of 2014, we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit Agreement) which expires on June 8, 2015. Subsequent to the end of the second quarter, we increased commitments under this agreement. The 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.7725 billion, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $4.5 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 the then effective termination date. The Five-Year Credit Agreement and the 364-Day Credit Agreement together replaced our $2.925 billion five-year credit agreement dated as of June 10, 2013 and our $2.925 billion 364-Day credit agreement dated as of June 10, 2013. Funds borrowed under the Five-Year Credit Agreement and the 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, 2014, there were no outstanding borrowings under the Five-Year Credit Agreement or the 364-Day Credit Agreement. | ||
As of June 14, 2014, we had $4.3 billion of commercial paper outstanding. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 6 Months Ended | ||||||||||||||||||
Jun. 14, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||
The reclassifications from Accumulated Other Comprehensive Loss to the Condensed Consolidated Statement of Income are summarized as follows: | |||||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | ||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | ||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Loss | Affected Line Item in the Condensed Consolidated Statement of Income | ||||||||||||||||||
Losses/(gains) on cash flow hedges: | |||||||||||||||||||
Foreign exchange contracts | $ | (5 | ) | $ | 1 | $ | (11 | ) | $ | 4 | Cost of sales | ||||||||
Interest rate derivatives | 9 | (18 | ) | 14 | 33 | Interest expense | |||||||||||||
Commodity contracts | 7 | 8 | 19 | 14 | Cost of sales | ||||||||||||||
Commodity contracts | — | 1 | (1 | ) | — | Selling, general and administrative expenses | |||||||||||||
Net losses/(gains) before tax | 11 | (8 | ) | 21 | 51 | ||||||||||||||
Tax amounts | (5 | ) | 2 | (9 | ) | (19 | ) | ||||||||||||
Net losses/(gains) after tax | $ | 6 | $ | (6 | ) | $ | 12 | $ | 32 | ||||||||||
Amortization of pension and retiree medical items: | |||||||||||||||||||
Net prior service cost (a) | $ | — | $ | 1 | $ | — | $ | — | |||||||||||
Net actuarial losses (a) | 53 | 83 | 101 | 163 | |||||||||||||||
Net losses before tax | 53 | 84 | 101 | 163 | |||||||||||||||
Tax amounts | (17 | ) | (27 | ) | (33 | ) | (54 | ) | |||||||||||
Net losses after tax | $ | 36 | $ | 57 | $ | 68 | $ | 109 | |||||||||||
Total net losses reclassified for the period, net of tax | $ | 42 | $ | 51 | $ | 80 | $ | 141 | |||||||||||
(a) | These items are included in the components of net periodic benefit cost for pension and retiree medical plans (see Note 7 for additional details). |
Financial_Instruments
Financial Instruments | 6 Months Ended | |||||||||||||||||||||||
Jun. 14, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
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 currency restrictions; and | |||||||||||||||||||||||
• | interest rates. | |||||||||||||||||||||||
In the normal course of business, we manage commodity price, foreign exchange and interest rate risks through a variety of strategies, including productivity initiatives, global purchasing programs and hedging strategies. Ongoing productivity initiatives involve the identification and effective implementation of meaningful cost-saving opportunities or efficiencies. Our global purchasing programs include fixed-price purchase orders and pricing agreements. | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Our hedging strategies include the use of derivatives. Certain derivatives are designated as either cash flow or fair value hedges and qualify for hedge accounting treatment, while others do not qualify and are marked to market through earnings. Cash flows from derivatives used to manage commodity price, foreign exchange or interest rate risks are classified as operating activities in the Condensed Consolidated Statement of Cash Flows. We classify both the earnings and cash flow impact from these derivatives consistent with the underlying hedged item. See “Our Business Risks” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our business risks. | ||||||||||||||||||||||||
For cash flow hedges, the effective portion of changes in fair value are deferred in accumulated other comprehensive loss within common shareholders’ equity until the underlying hedged item is recognized in net income. For fair value hedges, changes in fair value are recognized immediately in earnings, consistent with the underlying hedged item. Hedging transactions are limited to an underlying exposure. As a result, any change in the value of our derivative instruments would be substantially offset by an opposite change in the value of the underlying hedged items. Hedging ineffectiveness and a net earnings impact occur when the change in the value of the hedge does not fully offset the change in the value of the underlying hedged item. If the derivative instrument related to a cash flow hedge is terminated, we continue to defer the related gain or loss as part of accumulated other comprehensive loss and then include it as a component of the cost of the underlying hedged item. Upon determination that the underlying hedged item will not be part of an actual transaction, we recognize the related gain or loss on the hedge in net income immediately. | ||||||||||||||||||||||||
We also use derivatives that do not qualify for hedge accounting treatment. We account for such derivatives at market value with the resulting gains and losses reflected in our income statement. We do not use derivative instruments for trading or speculative purposes. We perform assessments of our counterparty credit risk regularly, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Based on our most recent assessment of our counterparty credit risk, we consider this risk to be low. In addition, we enter into derivative contracts with a variety of financial institutions that we believe are creditworthy in order to reduce our concentration of credit risk. | ||||||||||||||||||||||||
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 contracts and purchase orders, pricing agreements and derivatives. In addition, risk to our supply of certain raw materials is mitigated through purchases from multiple geographies and suppliers. 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 agricultural products, energy and metals. For those derivatives that qualify for hedge accounting treatment, any ineffectiveness is recorded immediately in corporate unallocated expenses. Ineffectiveness was not material for all periods presented. 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. Derivatives used to hedge commodity price risk that do not qualify for hedge accounting treatment are marked to market each period with the resulting gains and losses recorded in corporate unallocated expenses as either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. These gains and losses are subsequently reflected in division results when the divisions recognize the cost of the underlying commodity in operating profit. | ||||||||||||||||||||||||
Our open commodity derivative contracts that qualify for hedge accounting had a face value of $334 million as of June 14, 2014 and $506 million as of June 15, 2013. | ||||||||||||||||||||||||
Our open commodity derivative contracts that do not qualify for hedge accounting had a face value of $816 million as of June 14, 2014 and $988 million as of June 15, 2013. | ||||||||||||||||||||||||
Foreign Exchange | ||||||||||||||||||||||||
We are exposed to foreign exchange risk from foreign currency purchases and foreign currency assets and liabilities created in the normal course of business. We manage this risk through sourcing purchases from local suppliers, negotiating contracts in local currencies with foreign suppliers and through the use of derivatives, primarily forward contracts with terms of no more than two years. 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 $2.5 billion as of June 14, 2014 and $3.0 billion as of June 15, 2013. During the next 12 months, we expect to reclassify net losses of $11 million related to foreign currency derivative contracts that qualify for hedge accounting from accumulated other comprehensive loss into net income. Ineffectiveness was not material for all periods presented. For foreign currency derivatives that do not qualify for hedge accounting treatment, 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 interest rate 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 14, 2014 and June 15, 2013 were $9.3 billion and $7.7 billion, respectively. For those interest rate derivative instruments that qualify for cash flow hedge accounting, any ineffectiveness is recorded immediately. Ineffectiveness was not material for all periods presented. During the next 12 months, we expect to reclassify net losses of $21 million related to these hedges from accumulated other comprehensive loss into net income. | ||||||||||||||||||||||||
As of June 14, 2014, approximately 33% of total debt, after the impact of the related interest rate derivative instruments, was exposed to variable rates, compared to 31% as of December 28, 2013. | ||||||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||||||
Investments in debt and equity marketable securities, other than investments accounted for under the equity method, are classified as available-for-sale. All highly liquid investments with original maturities of three months or less are classified as cash equivalents. Our investments in available-for-sale securities are reported at fair value. Unrealized gains and losses related to changes in the fair value of available-for-sale securities are recognized in accumulated other comprehensive loss within common shareholders’ equity. Unrealized gains and losses on our investments in marketable debt securities as of June 14, 2014 were not material. Unrealized gains on our investments in marketable equity securities were $133 million and $83 million as of June 14, 2014 and June 15, 2013, respectively. | ||||||||||||||||||||||||
Changes in the fair value of available-for-sale securities impact net income only when such securities are sold or an other-than-temporary impairment is recognized. We regularly review our investment portfolio to determine if any security is other-than-temporarily impaired. In making this judgment, we evaluate, among other things, the duration and extent to which the fair value of a security is less than its cost; the financial condition of the issuer and any changes thereto; and our intent to sell, or whether we will more likely than not be required to sell, the security before recovery of its amortized cost basis. Our assessment on whether a security is other-than-temporarily impaired could change in the future due to new developments or changes in assumptions related to any particular security. We recorded no other-than-temporary impairment charges for the 12 and 24 weeks ended June 14, 2014 and June 15, 2013. | ||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||
The fair values of our financial assets and liabilities as of June 14, 2014 and June 15, 2013 are categorized as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Assets (a) | Liabilities (a) | Assets (a) | Liabilities (a) | |||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Equity securities (b) | $ | 148 | $ | — | $ | 95 | $ | — | ||||||||||||||||
Debt securities (c) | 6,286 | — | — | — | ||||||||||||||||||||
$ | 6,434 | $ | — | $ | 95 | $ | — | |||||||||||||||||
Short-term investments – index funds (d) | $ | 191 | $ | — | $ | 172 | $ | — | ||||||||||||||||
Prepaid forward contracts (e) | $ | 25 | $ | — | $ | 39 | $ | — | ||||||||||||||||
Deferred compensation (f) | $ | — | $ | 506 | $ | — | $ | 489 | ||||||||||||||||
Derivatives designated as fair value hedging instruments: | ||||||||||||||||||||||||
Interest rate (g) | $ | 167 | $ | — | $ | 224 | $ | 1 | ||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||
Foreign exchange (h) | $ | 12 | $ | 30 | $ | 28 | $ | 5 | ||||||||||||||||
Interest rate (g) | 36 | 22 | — | 6 | ||||||||||||||||||||
Commodity (i) | 2 | 15 | 3 | 38 | ||||||||||||||||||||
$ | 50 | $ | 67 | $ | 31 | $ | 49 | |||||||||||||||||
Derivatives not designated as hedging | ||||||||||||||||||||||||
instruments: | ||||||||||||||||||||||||
Foreign exchange (h) | $ | 7 | $ | 6 | $ | 16 | $ | 26 | ||||||||||||||||
Interest rate (g) | 69 | 89 | 98 | 124 | ||||||||||||||||||||
Commodity (i) | 15 | 35 | 6 | 71 | ||||||||||||||||||||
$ | 91 | $ | 130 | $ | 120 | $ | 221 | |||||||||||||||||
Total derivatives at fair value (j) | $ | 308 | $ | 197 | $ | 375 | $ | 271 | ||||||||||||||||
Total | $ | 6,958 | $ | 703 | $ | 681 | $ | 760 | ||||||||||||||||
(a) | Unless otherwise noted, financial assets are classified on our condensed consolidated balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our condensed consolidated balance sheet within accounts payable and 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 quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of June 14, 2014, $2.8 billion and $3.5 billion of debt securities were classified as cash equivalents and short-term investments, respectively. All of the Company’s available-for-sale debt securities have contractual maturities of one year or less. | |||||||||||||||||||||||
(d) | Based on the price of index funds. Categorized as a Level 1 asset. | |||||||||||||||||||||||
(e) | Based primarily on the price of our common stock. | |||||||||||||||||||||||
(f) | Based on the fair value of investments corresponding to employees’ investment elections. As of June 14, 2014, all balances are categorized as Level 2 liabilities. As of June 15, 2013, $7 million are categorized as Level 1 liabilities and the remaining balances are categorized as Level 2 liabilities. | |||||||||||||||||||||||
(g) | Based on LIBOR forward rates and recently reported market transactions of spot and forward rates. As of June 14, 2014 and June 15, 2013, amounts related to non-designated instruments are presented as a net liability on our condensed consolidated balance sheet. | |||||||||||||||||||||||
(h) | Based on recently reported market transactions of spot and forward rates. | |||||||||||||||||||||||
(i) | Based on recently reported market transactions, primarily swap arrangements. | |||||||||||||||||||||||
(j) | Unless otherwise noted, derivative assets and liabilities are presented on a gross basis on our condensed consolidated balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on the condensed consolidated balance sheet as of June 14, 2014 and June 15, 2013 were immaterial. Collateral received against any of our asset positions was immaterial. | |||||||||||||||||||||||
The fair value of our debt obligations as of June 14, 2014 was $34 billion, based upon prices of similar instruments in the marketplace. | ||||||||||||||||||||||||
Pre-tax losses/(gains) on our derivative instruments are categorized as follows: | ||||||||||||||||||||||||
12 Weeks Ended | ||||||||||||||||||||||||
Fair Value/Non- | Cash Flow Hedges | |||||||||||||||||||||||
designated Hedges | ||||||||||||||||||||||||
Losses/(Gains) | Losses/(Gains) | Losses/(Gains) | ||||||||||||||||||||||
Recognized in | Recognized in | Reclassified from | ||||||||||||||||||||||
Income Statement (a) | Accumulated Other | Accumulated Other | ||||||||||||||||||||||
Comprehensive Loss | Comprehensive Loss | |||||||||||||||||||||||
into Income | ||||||||||||||||||||||||
Statement (b) | ||||||||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||||||||
Foreign exchange | $ | 16 | $ | 5 | $ | 30 | $ | (5 | ) | $ | (5 | ) | $ | 1 | ||||||||||
Interest rate | (5 | ) | 24 | 10 | (18 | ) | 9 | (18 | ) | |||||||||||||||
Commodity | (2 | ) | 38 | 1 | 18 | 7 | 9 | |||||||||||||||||
Total | $ | 9 | $ | 67 | $ | 41 | $ | (5 | ) | $ | 11 | $ | (8 | ) | ||||||||||
24 Weeks Ended | ||||||||||||||||||||||||
Fair Value/Non- | Cash Flow Hedges | |||||||||||||||||||||||
designated Hedges | ||||||||||||||||||||||||
(Gains)/Losses | Losses/(Gains) | Losses/(Gains) | ||||||||||||||||||||||
Recognized in | Recognized in | Reclassified from | ||||||||||||||||||||||
Income Statement (a) | Accumulated Other | Accumulated Other | ||||||||||||||||||||||
Comprehensive Loss | Comprehensive Loss | |||||||||||||||||||||||
into Income | ||||||||||||||||||||||||
Statement (b) | ||||||||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||||||||
Foreign exchange | $ | (1 | ) | $ | 5 | $ | 12 | $ | (33 | ) | $ | (11 | ) | $ | 4 | |||||||||
Interest rate | (4 | ) | 51 | 5 | 12 | 14 | 33 | |||||||||||||||||
Commodity | (11 | ) | 49 | 8 | 39 | 18 | 14 | |||||||||||||||||
Total | $ | (16 | ) | $ | 105 | $ | 25 | $ | 18 | $ | 21 | $ | 51 | |||||||||||
(a) | Foreign exchange derivative gains/losses are primarily included in selling, general and administrative expenses. Interest rate derivative gains/losses are primarily from fair value hedges and are included in interest expense. These gains/losses are substantially offset by increases/decreases in the value of the underlying debt, which are also included in interest expense. Commodity derivative gains/losses are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. | |||||||||||||||||||||||
(b) | Foreign exchange derivative gains/losses are primarily included in cost of sales. Interest rate derivative gains/losses are included in interest expense. Commodity derivative gains/losses are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. |
Net_Income_Attributable_to_Pep
Net Income Attributable to PepsiCo per Common Share | 6 Months Ended | |||||||||||||
Jun. 14, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
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 | ||||||||||||||
6/14/14 | 6/15/13 | |||||||||||||
Income | Shares (a) | Income | Shares (a) | |||||||||||
Net income attributable to PepsiCo | $ | 1,978 | $ | 2,010 | ||||||||||
Preferred shares: | ||||||||||||||
Dividends | — | (1 | ) | |||||||||||
Redemption premium | (2 | ) | (2 | ) | ||||||||||
Net income available for PepsiCo common shareholders | $ | 1,976 | 1,515 | $ | 2,007 | 1,548 | ||||||||
Basic net income attributable to PepsiCo per common share | $ | 1.3 | $ | 1.3 | ||||||||||
Net income available for PepsiCo common shareholders | $ | 1,976 | 1,515 | $ | 2,007 | 1,548 | ||||||||
Dilutive securities: | ||||||||||||||
Stock options, RSUs, and PEPUnits (b) | — | 16 | — | 18 | ||||||||||
Employee stock ownership plan (ESOP) convertible preferred stock | 2 | 1 | 3 | 1 | ||||||||||
Diluted | $ | 1,978 | 1,532 | $ | 2,010 | 1,567 | ||||||||
Diluted net income attributable to PepsiCo per common share | $ | 1.29 | $ | 1.28 | ||||||||||
24 Weeks Ended | ||||||||||||||
6/14/14 | 6/15/13 | |||||||||||||
Income | Shares (a) | Income | Shares (a) | |||||||||||
Net income attributable to PepsiCo | $ | 3,194 | $ | 3,085 | ||||||||||
Preferred shares: | ||||||||||||||
Dividends | — | (1 | ) | |||||||||||
Redemption premium | (3 | ) | (4 | ) | ||||||||||
Net income available for PepsiCo common shareholders | $ | 3,191 | 1,519 | $ | 3,080 | 1,546 | ||||||||
Basic net income attributable to PepsiCo per common share | $ | 2.1 | $ | 1.99 | ||||||||||
Net income available for PepsiCo common shareholders | $ | 3,191 | 1,519 | $ | 3,080 | 1,546 | ||||||||
Dilutive securities: | ||||||||||||||
Stock options, RSUs, and PEPUnits (b) | — | 16 | — | 18 | ||||||||||
ESOP convertible preferred stock | 3 | 1 | 5 | 1 | ||||||||||
Diluted | $ | 3,194 | 1,536 | $ | 3,085 | 1,565 | ||||||||
Diluted net income attributable to PepsiCo per common share | $ | 2.08 | $ | 1.97 | ||||||||||
(a) | Weighted-average common shares outstanding (in millions). | |||||||||||||
(b) | For the 12 weeks in 2014 and 2013, the calculation of diluted earnings per common share was unadjusted because there were no out-of-the-money options during the period. For the 24 weeks, options to purchase 0.1 million shares in 2014 and 1.3 million shares in 2013 were not included in the calculation of diluted earnings per common share because these options were out-of-the-money. These out-of-the-money options had average exercise prices of $82.25 in 2014 and $75.69 in 2013. |
Divestitures_Notes
Divestitures (Notes) | 6 Months Ended |
Jun. 15, 2013 | |
Suntory Holdings [Abstract] | ' |
Business Combination Disclosure [Text Block] | ' |
Note 12 - Divestitures | |
Suntory Holdings Limited | |
During our second quarter of 2013, as part of the refranchising of our beverage business in Vietnam, we completed a transaction with Suntory Holdings Limited. Under the terms of the agreement, we sold a controlling interest in our Vietnam bottling operations. The alliance serves as the franchise bottler for both companies. In the 12 and 24 weeks ended June 15, 2013, we recorded a pre- and after-tax gain of $137 million (or $0.09 per share) associated with this transaction. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 6 Months Ended | |||||||||||||||
Jun. 14, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Segment Reporting Information, By Segment | ' | |||||||||||||||
Our four business units comprise six reportable segments (also referred to as divisions), as follows: | ||||||||||||||||
• | FLNA, | |||||||||||||||
• | QFNA, | |||||||||||||||
• | LAF, | |||||||||||||||
• | PAB, | |||||||||||||||
• | Europe, and | |||||||||||||||
• | AMEA. | |||||||||||||||
Net revenue and operating profit of each division are as follows: | ||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | |||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||
Net Revenue | ||||||||||||||||
FLNA | $ | 3,387 | $ | 3,332 | $ | 6,606 | $ | 6,455 | ||||||||
QFNA | 564 | 577 | 1,198 | 1,211 | ||||||||||||
LAF | 2,122 | 2,116 | 3,460 | 3,483 | ||||||||||||
PAB | 5,281 | 5,260 | 9,707 | 9,680 | ||||||||||||
Europe | 3,657 | 3,653 | 5,618 | 5,595 | ||||||||||||
AMEA | 1,883 | 1,869 | 2,928 | 2,964 | ||||||||||||
$ | 16,894 | $ | 16,807 | $ | 29,517 | $ | 29,388 | |||||||||
12 Weeks Ended | 24 Weeks Ended | |||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||
Operating Profit | ||||||||||||||||
FLNA | $ | 937 | $ | 906 | $ | 1,799 | $ | 1,734 | ||||||||
QFNA | 139 | 133 | 299 | 313 | ||||||||||||
LAF | 323 | 318 | 555 | 534 | ||||||||||||
PAB | 868 | 882 | 1,297 | 1,447 | ||||||||||||
Europe | 451 | 425 | 603 | 513 | ||||||||||||
AMEA | 381 | 524 | 575 | 708 | ||||||||||||
Total division | 3,099 | 3,188 | 5,128 | 5,249 | ||||||||||||
Corporate Unallocated | ||||||||||||||||
Mark-to-market net gains/(losses) | 31 | (39 | ) | 65 | (55 | ) | ||||||||||
Restructuring and impairment charges | (8 | ) | (1 | ) | (5 | ) | (2 | ) | ||||||||
Venezuela currency devaluation | — | — | — | (124 | ) | |||||||||||
Other | (226 | ) | (279 | ) | (485 | ) | (541 | ) | ||||||||
$ | 2,896 | $ | 2,869 | $ | 4,703 | $ | 4,527 | |||||||||
Segment Reporting Information By Total Assets | ' | |||||||||||||||
Total Assets | ||||||||||||||||
6/14/14 | 12/28/13 | |||||||||||||||
FLNA | $ | 5,476 | $ | 5,308 | ||||||||||||
QFNA | 1,017 | 983 | ||||||||||||||
LAF | 5,167 | 4,829 | ||||||||||||||
PAB | 31,152 | 30,350 | ||||||||||||||
Europe | 18,819 | 18,702 | ||||||||||||||
AMEA | 6,124 | 5,754 | ||||||||||||||
Total division | 67,755 | 65,926 | ||||||||||||||
Corporate (a) | 12,678 | 11,552 | ||||||||||||||
$ | 80,433 | $ | 77,478 | |||||||||||||
(a) | Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments, property, plant and equipment and certain pension and tax assets. |
Restructuring_Impairment_and_I1
Restructuring, Impairment and Integration Charges (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 14, 2014 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
2014 Schedule of Restructuring Related Costs | ' | ||||||||||||||||
A summary of our 2014 Productivity Plan charges is as follows: | |||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | ||||||||||||||||
6/14/14 | 6/14/14 | ||||||||||||||||
FLNA | $ | 12 | $ | 24 | |||||||||||||
QFNA | — | 2 | |||||||||||||||
LAF | 5 | 6 | |||||||||||||||
PAB | 33 | 115 | |||||||||||||||
Europe | 13 | 15 | |||||||||||||||
AMEA | 7 | 9 | |||||||||||||||
Corporate | 7 | 2 | |||||||||||||||
$ | 77 | $ | 173 | ||||||||||||||
Summary Of 2014 Productivity Plan Activity | ' | ||||||||||||||||
A summary of our 2014 Productivity Plan activity in 2014 is as follows: | |||||||||||||||||
Severance and Other | Asset Impairments | Other Costs | Total | ||||||||||||||
Employee Costs | |||||||||||||||||
Liability as of December 28, 2013 | $ | 30 | $ | — | $ | 1 | $ | 31 | |||||||||
2014 restructuring charges | 66 | 52 | 55 | 173 | |||||||||||||
Cash payments | (16 | ) | — | (53 | ) | (69 | ) | ||||||||||
Non-cash charges | (6 | ) | (52 | ) | — | (58 | ) | ||||||||||
Liability as of June 14, 2014 | $ | 74 | $ | — | $ | 3 | $ | 77 | |||||||||
2012 Schedule of Restructuring and Related Costs | ' | ||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | ||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | ||||||||||||||
FLNA | $ | 1 | $ | 2 | $ | 2 | $ | 4 | |||||||||
QFNA | — | 1 | — | — | |||||||||||||
LAF (a) | — | 1 | (5 | ) | 5 | ||||||||||||
PAB | 3 | 5 | 7 | 5 | |||||||||||||
Europe | 10 | 8 | 8 | 12 | |||||||||||||
AMEA | — | 1 | 2 | 2 | |||||||||||||
Corporate | 1 | 1 | 3 | 2 | |||||||||||||
$ | 15 | $ | 19 | $ | 17 | $ | 30 | ||||||||||
Summary Of 2012 Productivity Plan Activity | ' | ||||||||||||||||
A summary of our 2012 Productivity Plan activity in 2014 is as follows: | |||||||||||||||||
Severance and Other | Asset Impairments | Other Costs | Total | ||||||||||||||
Employee Costs | |||||||||||||||||
Liability as of December 28, 2013 | $ | 68 | $ | — | $ | 17 | $ | 85 | |||||||||
2014 restructuring charges | 10 | 4 | 3 | 17 | |||||||||||||
Cash payments | (27 | ) | — | (16 | ) | (43 | ) | ||||||||||
Non-cash charges | (5 | ) | (4 | ) | 2 | (7 | ) | ||||||||||
Liability as of June 14, 2014 | $ | 46 | $ | — | $ | 6 | $ | 52 | |||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 14, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | ' | ||||||||||||||||||||||||
6/14/14 | 12/28/13 | ||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||
Acquired franchise rights | $ | 905 | $ | (90 | ) | $ | 815 | $ | 910 | $ | (83 | ) | $ | 827 | |||||||||||
Reacquired franchise rights | 107 | (92 | ) | 15 | 108 | (86 | ) | 22 | |||||||||||||||||
Brands | 1,397 | (1,009 | ) | 388 | 1,400 | (996 | ) | 404 | |||||||||||||||||
Other identifiable intangibles | 680 | (313 | ) | 367 | 686 | (301 | ) | 385 | |||||||||||||||||
$ | 3,089 | $ | (1,504 | ) | $ | 1,585 | $ | 3,104 | $ | (1,466 | ) | $ | 1,638 | ||||||||||||
Schedule Of Change In Book Value Of Nonamortizable Intangible Assets | ' | ||||||||||||||||||||||||
The change in the book value of nonamortizable intangible assets is as follows: | |||||||||||||||||||||||||
Balance | Translation | Balance | |||||||||||||||||||||||
12/28/13 | and Other | 6/14/14 | |||||||||||||||||||||||
FLNA | |||||||||||||||||||||||||
Goodwill | $ | 305 | $ | (3 | ) | $ | 302 | ||||||||||||||||||
Brands | 29 | (1 | ) | 28 | |||||||||||||||||||||
334 | (4 | ) | 330 | ||||||||||||||||||||||
QFNA | |||||||||||||||||||||||||
Goodwill | 175 | — | 175 | ||||||||||||||||||||||
LAF | |||||||||||||||||||||||||
Goodwill | 660 | 11 | 671 | ||||||||||||||||||||||
Brands | 206 | 6 | 212 | ||||||||||||||||||||||
866 | 17 | 883 | |||||||||||||||||||||||
PAB | |||||||||||||||||||||||||
Goodwill | 9,943 | (6 | ) | 9,937 | |||||||||||||||||||||
Reacquired franchise rights | 7,281 | (24 | ) | 7,257 | |||||||||||||||||||||
Acquired franchise rights | 1,551 | 1 | 1,552 | ||||||||||||||||||||||
Brands | 146 | 3 | 149 | ||||||||||||||||||||||
18,921 | (26 | ) | 18,895 | ||||||||||||||||||||||
Europe | |||||||||||||||||||||||||
Goodwill | 5,027 | (176 | ) | 4,851 | |||||||||||||||||||||
Reacquired franchise rights | 760 | (28 | ) | 732 | |||||||||||||||||||||
Acquired franchise rights | 230 | (3 | ) | 227 | |||||||||||||||||||||
Brands | 4,071 | (156 | ) | 3,915 | |||||||||||||||||||||
10,088 | (363 | ) | 9,725 | ||||||||||||||||||||||
AMEA | |||||||||||||||||||||||||
Goodwill | 503 | 18 | 521 | ||||||||||||||||||||||
Brands | 127 | 6 | 133 | ||||||||||||||||||||||
630 | 24 | 654 | |||||||||||||||||||||||
Total goodwill | 16,613 | (156 | ) | 16,457 | |||||||||||||||||||||
Total reacquired franchise rights | 8,041 | (52 | ) | 7,989 | |||||||||||||||||||||
Total acquired franchise rights | 1,781 | (2 | ) | 1,779 | |||||||||||||||||||||
Total brands | 4,579 | (142 | ) | 4,437 | |||||||||||||||||||||
$ | 31,014 | $ | (352 | ) | $ | 30,662 | |||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | |||||||
Jun. 14, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Reserves Rollforward | ' | |||||||
A rollforward of our reserves for all federal, state and foreign tax jurisdictions is as follows: | ||||||||
6/14/14 | 12/28/13 | |||||||
Balance, beginning of year | $ | 1,268 | $ | 2,425 | ||||
Additions for tax positions related to the current year | 153 | 238 | ||||||
Additions for tax positions from prior years | 19 | 273 | ||||||
Reductions for tax positions from prior years | (12 | ) | (327 | ) | ||||
Settlement payments | (62 | ) | (1,306 | ) | ||||
Statute of limitations expiration | (34 | ) | (30 | ) | ||||
Translation and other | (5 | ) | (5 | ) | ||||
Balance, end of period | $ | 1,327 | $ | 1,268 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 14, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | ||||||||||||||||
The following table summarizes our total stock-based compensation expense: | |||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | ||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | ||||||||||||||
Stock-based compensation expense | $ | 68 | $ | 72 | $ | 140 | $ | 149 | |||||||||
Restructuring and impairment benefits | — | — | (3 | ) | — | ||||||||||||
Total | $ | 68 | $ | 72 | $ | 137 | $ | 149 | |||||||||
Schedule Of Weighted-Average Black-Scholes Fair Value Assumptions | ' | ||||||||||||||||
Our weighted-average Black-Scholes fair value assumptions are as follows: | |||||||||||||||||
24 Weeks Ended | |||||||||||||||||
6/14/14 | 6/15/13 | ||||||||||||||||
Expected life | 6 years | 6 years | |||||||||||||||
Risk free interest rate | 1.8 | % | 1 | % | |||||||||||||
Expected volatility (a) | 16 | % | 17 | % | |||||||||||||
Expected dividend yield | 2.9 | % | 2.7 | % | |||||||||||||
Schedule of Share-based Payment Award, 2007 Long-Term Incentive Plan | ' | ||||||||||||||||
The following table summarizes awards granted under the terms of our 2007 Long-Term Incentive Plan: | |||||||||||||||||
24 Weeks Ended | |||||||||||||||||
6/14/14 | 6/15/13 | ||||||||||||||||
Granted (a) | Weighted-Average Grant Price | Granted (a) | Weighted-Average Grant Price | ||||||||||||||
Stock options | 3 | $ | 79.75 | 2.5 | $ | 75.75 | |||||||||||
RSUs | 4.2 | $ | 79.76 | 3.9 | $ | 75.75 | |||||||||||
PEPUnits | 0.4 | $ | 79.75 | 0.4 | $ | 75.75 | |||||||||||
Pension_and_Retiree_Medical_Be1
Pension and Retiree Medical Benefits (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 14, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | ' | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||||||||
U.S. | International | |||||||||||||||||||||||
Service cost | $ | 90 | $ | 108 | $ | 24 | $ | 27 | $ | 8 | $ | 11 | ||||||||||||
Interest cost | 134 | 122 | 33 | 30 | 14 | 12 | ||||||||||||||||||
Expected return on plan assets | (181 | ) | (190 | ) | (44 | ) | (40 | ) | (6 | ) | (6 | ) | ||||||||||||
Amortization of prior service cost/(credit) | 4 | 5 | — | 1 | (5 | ) | (5 | ) | ||||||||||||||||
Amortization of net losses/(gains) | 41 | 66 | 13 | 16 | (1 | ) | — | |||||||||||||||||
88 | 111 | 26 | 34 | 10 | 12 | |||||||||||||||||||
Settlement loss | — | — | — | 1 | — | — | ||||||||||||||||||
Special termination benefits | — | 2 | — | — | 1 | — | ||||||||||||||||||
Total expense | $ | 88 | $ | 113 | $ | 26 | $ | 35 | $ | 11 | $ | 12 | ||||||||||||
24 Weeks Ended | ||||||||||||||||||||||||
Pension | Retiree Medical | |||||||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||||||||
U.S. | International | |||||||||||||||||||||||
Service cost | $ | 181 | $ | 216 | $ | 43 | $ | 49 | $ | 16 | $ | 21 | ||||||||||||
Interest cost | 268 | 243 | 57 | 52 | 28 | 25 | ||||||||||||||||||
Expected return on plan assets | (362 | ) | (380 | ) | (76 | ) | (70 | ) | (12 | ) | (12 | ) | ||||||||||||
Amortization of prior service cost/(credit) | 9 | 9 | — | 1 | (10 | ) | (10 | ) | ||||||||||||||||
Amortization of net losses/(gains) | 81 | 133 | 22 | 29 | (2 | ) | — | |||||||||||||||||
177 | 221 | 46 | 61 | 20 | 24 | |||||||||||||||||||
Settlement loss | — | — | — | 1 | — | — | ||||||||||||||||||
Special termination benefits | 8 | 3 | — | — | 1 | — | ||||||||||||||||||
Total expense | $ | 185 | $ | 224 | $ | 46 | $ | 62 | $ | 21 | $ | 24 | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 14, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||
The reclassifications from Accumulated Other Comprehensive Loss to the Condensed Consolidated Statement of Income are summarized as follows: | |||||||||||||||||||
12 Weeks Ended | 24 Weeks Ended | ||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | ||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Loss | Affected Line Item in the Condensed Consolidated Statement of Income | ||||||||||||||||||
Losses/(gains) on cash flow hedges: | |||||||||||||||||||
Foreign exchange contracts | $ | (5 | ) | $ | 1 | $ | (11 | ) | $ | 4 | Cost of sales | ||||||||
Interest rate derivatives | 9 | (18 | ) | 14 | 33 | Interest expense | |||||||||||||
Commodity contracts | 7 | 8 | 19 | 14 | Cost of sales | ||||||||||||||
Commodity contracts | — | 1 | (1 | ) | — | Selling, general and administrative expenses | |||||||||||||
Net losses/(gains) before tax | 11 | (8 | ) | 21 | 51 | ||||||||||||||
Tax amounts | (5 | ) | 2 | (9 | ) | (19 | ) | ||||||||||||
Net losses/(gains) after tax | $ | 6 | $ | (6 | ) | $ | 12 | $ | 32 | ||||||||||
Amortization of pension and retiree medical items: | |||||||||||||||||||
Net prior service cost (a) | $ | — | $ | 1 | $ | — | $ | — | |||||||||||
Net actuarial losses (a) | 53 | 83 | 101 | 163 | |||||||||||||||
Net losses before tax | 53 | 84 | 101 | 163 | |||||||||||||||
Tax amounts | (17 | ) | (27 | ) | (33 | ) | (54 | ) | |||||||||||
Net losses after tax | $ | 36 | $ | 57 | $ | 68 | $ | 109 | |||||||||||
Total net losses reclassified for the period, net of tax | $ | 42 | $ | 51 | $ | 80 | $ | 141 | |||||||||||
(a) | These items are included in the components of net periodic benefit cost for pension and retiree medical plans (see Note 7 for additional details). |
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 14, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Fair Values of Financial Assets and Liabilities | ' | |||||||||||||||||||||||
The fair values of our financial assets and liabilities as of June 14, 2014 and June 15, 2013 are categorized as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Assets (a) | Liabilities (a) | Assets (a) | Liabilities (a) | |||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Equity securities (b) | $ | 148 | $ | — | $ | 95 | $ | — | ||||||||||||||||
Debt securities (c) | 6,286 | — | — | — | ||||||||||||||||||||
$ | 6,434 | $ | — | $ | 95 | $ | — | |||||||||||||||||
Short-term investments – index funds (d) | $ | 191 | $ | — | $ | 172 | $ | — | ||||||||||||||||
Prepaid forward contracts (e) | $ | 25 | $ | — | $ | 39 | $ | — | ||||||||||||||||
Deferred compensation (f) | $ | — | $ | 506 | $ | — | $ | 489 | ||||||||||||||||
Derivatives designated as fair value hedging instruments: | ||||||||||||||||||||||||
Interest rate (g) | $ | 167 | $ | — | $ | 224 | $ | 1 | ||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||
Foreign exchange (h) | $ | 12 | $ | 30 | $ | 28 | $ | 5 | ||||||||||||||||
Interest rate (g) | 36 | 22 | — | 6 | ||||||||||||||||||||
Commodity (i) | 2 | 15 | 3 | 38 | ||||||||||||||||||||
$ | 50 | $ | 67 | $ | 31 | $ | 49 | |||||||||||||||||
Derivatives not designated as hedging | ||||||||||||||||||||||||
instruments: | ||||||||||||||||||||||||
Foreign exchange (h) | $ | 7 | $ | 6 | $ | 16 | $ | 26 | ||||||||||||||||
Interest rate (g) | 69 | 89 | 98 | 124 | ||||||||||||||||||||
Commodity (i) | 15 | 35 | 6 | 71 | ||||||||||||||||||||
$ | 91 | $ | 130 | $ | 120 | $ | 221 | |||||||||||||||||
Total derivatives at fair value (j) | $ | 308 | $ | 197 | $ | 375 | $ | 271 | ||||||||||||||||
Total | $ | 6,958 | $ | 703 | $ | 681 | $ | 760 | ||||||||||||||||
(a) | Unless otherwise noted, financial assets are classified on our condensed consolidated balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our condensed consolidated balance sheet within accounts payable and 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 quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of June 14, 2014, $2.8 billion and $3.5 billion of debt securities were classified as cash equivalents and short-term investments, respectively. All of the Company’s available-for-sale debt securities have contractual maturities of one year or less. | |||||||||||||||||||||||
(d) | Based on the price of index funds. Categorized as a Level 1 asset. | |||||||||||||||||||||||
(e) | Based primarily on the price of our common stock. | |||||||||||||||||||||||
(f) | Based on the fair value of investments corresponding to employees’ investment elections. As of June 14, 2014, all balances are categorized as Level 2 liabilities. As of June 15, 2013, $7 million are categorized as Level 1 liabilities and the remaining balances are categorized as Level 2 liabilities. | |||||||||||||||||||||||
(g) | Based on LIBOR forward rates and recently reported market transactions of spot and forward rates. As of June 14, 2014 and June 15, 2013, amounts related to non-designated instruments are presented as a net liability on our condensed consolidated balance sheet. | |||||||||||||||||||||||
(h) | Based on recently reported market transactions of spot and forward rates. | |||||||||||||||||||||||
(i) | Based on recently reported market transactions, primarily swap arrangements. | |||||||||||||||||||||||
(j) | Unless otherwise noted, derivative assets and liabilities are presented on a gross basis on our condensed consolidated balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on the condensed consolidated balance sheet as of June 14, 2014 and June 15, 2013 were immaterial. Collateral received against any of our asset positions was immaterial. | |||||||||||||||||||||||
Effective Portion Of Pre-Tax (Gains)/Losses On Derivative Instruments | ' | |||||||||||||||||||||||
The fair value of our debt obligations as of June 14, 2014 was $34 billion, based upon prices of similar instruments in the marketplace. | ||||||||||||||||||||||||
Pre-tax losses/(gains) on our derivative instruments are categorized as follows: | ||||||||||||||||||||||||
12 Weeks Ended | ||||||||||||||||||||||||
Fair Value/Non- | Cash Flow Hedges | |||||||||||||||||||||||
designated Hedges | ||||||||||||||||||||||||
Losses/(Gains) | Losses/(Gains) | Losses/(Gains) | ||||||||||||||||||||||
Recognized in | Recognized in | Reclassified from | ||||||||||||||||||||||
Income Statement (a) | Accumulated Other | Accumulated Other | ||||||||||||||||||||||
Comprehensive Loss | Comprehensive Loss | |||||||||||||||||||||||
into Income | ||||||||||||||||||||||||
Statement (b) | ||||||||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||||||||
Foreign exchange | $ | 16 | $ | 5 | $ | 30 | $ | (5 | ) | $ | (5 | ) | $ | 1 | ||||||||||
Interest rate | (5 | ) | 24 | 10 | (18 | ) | 9 | (18 | ) | |||||||||||||||
Commodity | (2 | ) | 38 | 1 | 18 | 7 | 9 | |||||||||||||||||
Total | $ | 9 | $ | 67 | $ | 41 | $ | (5 | ) | $ | 11 | $ | (8 | ) | ||||||||||
24 Weeks Ended | ||||||||||||||||||||||||
Fair Value/Non- | Cash Flow Hedges | |||||||||||||||||||||||
designated Hedges | ||||||||||||||||||||||||
(Gains)/Losses | Losses/(Gains) | Losses/(Gains) | ||||||||||||||||||||||
Recognized in | Recognized in | Reclassified from | ||||||||||||||||||||||
Income Statement (a) | Accumulated Other | Accumulated Other | ||||||||||||||||||||||
Comprehensive Loss | Comprehensive Loss | |||||||||||||||||||||||
into Income | ||||||||||||||||||||||||
Statement (b) | ||||||||||||||||||||||||
6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | 6/14/14 | 6/15/13 | |||||||||||||||||||
Foreign exchange | $ | (1 | ) | $ | 5 | $ | 12 | $ | (33 | ) | $ | (11 | ) | $ | 4 | |||||||||
Interest rate | (4 | ) | 51 | 5 | 12 | 14 | 33 | |||||||||||||||||
Commodity | (11 | ) | 49 | 8 | 39 | 18 | 14 | |||||||||||||||||
Total | $ | (16 | ) | $ | 105 | $ | 25 | $ | 18 | $ | 21 | $ | 51 | |||||||||||
(a) | Foreign exchange derivative gains/losses are primarily included in selling, general and administrative expenses. Interest rate derivative gains/losses are primarily from fair value hedges and are included in interest expense. These gains/losses are substantially offset by increases/decreases in the value of the underlying debt, which are also included in interest expense. Commodity derivative gains/losses are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. | |||||||||||||||||||||||
(b) | Foreign exchange derivative gains/losses are primarily included in cost of sales. Interest rate derivative gains/losses are included in interest expense. Commodity derivative gains/losses are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. |
Net_Income_Attributable_to_Pep1
Net Income Attributable to PepsiCo per Common Share (Tables) | 6 Months Ended | |||||||||||||
Jun. 14, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Basic And Diluted 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 | ||||||||||||||
6/14/14 | 6/15/13 | |||||||||||||
Income | Shares (a) | Income | Shares (a) | |||||||||||
Net income attributable to PepsiCo | $ | 1,978 | $ | 2,010 | ||||||||||
Preferred shares: | ||||||||||||||
Dividends | — | (1 | ) | |||||||||||
Redemption premium | (2 | ) | (2 | ) | ||||||||||
Net income available for PepsiCo common shareholders | $ | 1,976 | 1,515 | $ | 2,007 | 1,548 | ||||||||
Basic net income attributable to PepsiCo per common share | $ | 1.3 | $ | 1.3 | ||||||||||
Net income available for PepsiCo common shareholders | $ | 1,976 | 1,515 | $ | 2,007 | 1,548 | ||||||||
Dilutive securities: | ||||||||||||||
Stock options, RSUs, and PEPUnits (b) | — | 16 | — | 18 | ||||||||||
Employee stock ownership plan (ESOP) convertible preferred stock | 2 | 1 | 3 | 1 | ||||||||||
Diluted | $ | 1,978 | 1,532 | $ | 2,010 | 1,567 | ||||||||
Diluted net income attributable to PepsiCo per common share | $ | 1.29 | $ | 1.28 | ||||||||||
24 Weeks Ended | ||||||||||||||
6/14/14 | 6/15/13 | |||||||||||||
Income | Shares (a) | Income | Shares (a) | |||||||||||
Net income attributable to PepsiCo | $ | 3,194 | $ | 3,085 | ||||||||||
Preferred shares: | ||||||||||||||
Dividends | — | (1 | ) | |||||||||||
Redemption premium | (3 | ) | (4 | ) | ||||||||||
Net income available for PepsiCo common shareholders | $ | 3,191 | 1,519 | $ | 3,080 | 1,546 | ||||||||
Basic net income attributable to PepsiCo per common share | $ | 2.1 | $ | 1.99 | ||||||||||
Net income available for PepsiCo common shareholders | $ | 3,191 | 1,519 | $ | 3,080 | 1,546 | ||||||||
Dilutive securities: | ||||||||||||||
Stock options, RSUs, and PEPUnits (b) | — | 16 | — | 18 | ||||||||||
ESOP convertible preferred stock | 3 | 1 | 5 | 1 | ||||||||||
Diluted | $ | 3,194 | 1,536 | $ | 3,085 | 1,565 | ||||||||
Diluted net income attributable to PepsiCo per common share | $ | 2.08 | $ | 1.97 | ||||||||||
(a) | Weighted-average common shares outstanding (in millions). | |||||||||||||
(b) | For the 12 weeks in 2014 and 2013, the calculation of diluted earnings per common share was unadjusted because there were no out-of-the-money options during the period. For the 24 weeks, options to purchase 0.1 million shares in 2014 and 1.3 million shares in 2013 were not included in the calculation of diluted earnings per common share because these options were out-of-the-money. These out-of-the-money options had average exercise prices of $82.25 in 2014 and $75.69 in 2013. |
Basis_of_Presentation_and_Our_
Basis of Presentation and Our Divisions - Additional Information (Detail) | 6 Months Ended |
Jun. 14, 2014 | |
segment | |
business_unit | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Business Units | 4 |
Reportable Business Segment | 6 |
Segment_Reporting_Information_
Segment Reporting Information by Segment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Revenue | $16,894 | $16,807 | $29,517 | $29,388 |
Operating Profit | 2,896 | 2,869 | 4,703 | 4,527 |
FLNA | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Revenue | 3,387 | 3,332 | 6,606 | 6,455 |
Operating Profit | 937 | 906 | 1,799 | 1,734 |
QFNA | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Revenue | 564 | 577 | 1,198 | 1,211 |
Operating Profit | 139 | 133 | 299 | 313 |
LAF | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Revenue | 2,122 | 2,116 | 3,460 | 3,483 |
Operating Profit | 323 | 318 | 555 | 534 |
PAB | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Revenue | 5,281 | 5,260 | 9,707 | 9,680 |
Operating Profit | 868 | 882 | 1,297 | 1,447 |
Europe | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Revenue | 3,657 | 3,653 | 5,618 | 5,595 |
Operating Profit | 451 | 425 | 603 | 513 |
AMEA | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Revenue | 1,883 | 1,869 | 2,928 | 2,964 |
Operating Profit | 381 | 524 | 575 | 708 |
Total Division | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Revenue | 16,894 | 16,807 | 29,517 | 29,388 |
Operating Profit | 3,099 | 3,188 | 5,128 | 5,249 |
Corporate Unallocated Net Impact Of Mark To Market On Commodity Hedges | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Profit | 31 | -39 | 65 | -55 |
Corporate Unallocated Restructuring And Impairment Charges | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Profit | -8 | -1 | -5 | -2 |
Corporate Unallocated Venezuela Currency Devaluation | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Profit | 0 | 0 | 0 | -124 |
Corporate Unallocated Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Profit | ($226) | ($279) | ($485) | ($541) |
Segment_Reporting_Information_1
Segment Reporting Information by Total Assets (Detail) (USD $) | Jun. 14, 2014 | Dec. 28, 2013 | ||
In Millions, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | $80,433 | $77,478 | ||
FLNA | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 5,476 | 5,308 | ||
QFNA | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 1,017 | 983 | ||
LAF | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 5,167 | 4,829 | ||
PAB | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 31,152 | 30,350 | ||
Europe | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 18,819 | 18,702 | ||
AMEA | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 6,124 | 5,754 | ||
Total Division | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 67,755 | 65,926 | ||
Corporate | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 12,678 | [1] | 11,552 | [1] |
Assets, Total [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | $80,433 | $77,478 | ||
[1] | Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments, property, plant and equipment and certain pension and tax assets. |
Restructuring_Impairment_and_I2
Restructuring, Impairment and Integration Charges 2014 Productivity Plan Charges (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
2014 Restructuring Benefit | $0 | $0 | ($3) | $0 |
2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Charges After Tax Impact Per Share | $0.04 | ' | $0.08 | ' |
2014 Restructuring Benefit | 77 | ' | 173 | ' |
Restructuring Charges After Tax | 55 | ' | 128 | ' |
FLNA | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
2014 Restructuring Benefit | 12 | ' | 24 | ' |
QFNA | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
2014 Restructuring Benefit | 0 | ' | 2 | ' |
LAF | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
2014 Restructuring Benefit | 5 | ' | 6 | ' |
PAB | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
2014 Restructuring Benefit | 33 | ' | 115 | ' |
Europe | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
2014 Restructuring Benefit | 13 | ' | 15 | ' |
AMEA | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
2014 Restructuring Benefit | 7 | ' | 9 | ' |
Corporate Unallocated [Member] | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
2014 Restructuring Benefit | $7 | ' | $2 | ' |
Restructuring_Impairment_and_I3
Restructuring, Impairment and Integration Charges 2014 Productivity Plan Activity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | $0 | $0 | ($3) | $0 |
Payments for Restructuring | ' | ' | -112 | -74 |
2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve - Period Start | ' | ' | 31 | ' |
Restructuring, Settlement and Impairment Provisions | 77 | ' | 173 | ' |
Payments for Restructuring | ' | ' | -69 | ' |
Restructuring Reserve, Settled without Cash | ' | ' | -58 | ' |
Restructuring Reserve - Period End | 77 | ' | 77 | ' |
Employee Severance [Member] | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve - Period Start | ' | ' | 30 | ' |
Restructuring, Settlement and Impairment Provisions | ' | ' | 66 | ' |
Payments for Restructuring | ' | ' | -16 | ' |
Restructuring Reserve, Settled without Cash | ' | ' | -6 | ' |
Restructuring Reserve - Period End | 74 | ' | 74 | ' |
Asset Impairment [Member] | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve - Period Start | ' | ' | 0 | ' |
Restructuring, Settlement and Impairment Provisions | ' | ' | 52 | ' |
Restructuring Reserve, Settled without Cash | ' | ' | -52 | ' |
Restructuring Reserve - Period End | 0 | ' | 0 | ' |
Other Costs [Member] | 2014 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve - Period Start | ' | ' | 1 | ' |
Restructuring, Settlement and Impairment Provisions | ' | ' | 55 | ' |
Payments for Restructuring | ' | ' | -53 | ' |
Restructuring Reserve, Settled without Cash | ' | ' | ' | ' |
Restructuring Reserve - Period End | $3 | ' | $3 | ' |
Restructuring_Impairment_and_I4
Restructuring, Impairment and Integration Charges 2012 Productivity Plan Charges (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | $0 | $0 | ($3) | $0 |
2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | 15 | 19 | 17 | 30 |
Restructuring Charges After Tax | 14 | 15 | 17 | 23 |
Restructuring Charges After Tax Impact Per Share | $0.01 | $0.01 | $0.01 | $0.01 |
FLNA | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | 1 | 2 | 2 | 4 |
QFNA | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | 0 | 1 | 0 | 0 |
LAF | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | 0 | 1 | -5 | 5 |
PAB | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | 3 | 5 | 7 | 5 |
Europe | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | 10 | 8 | 8 | 12 |
AMEA | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | 0 | 1 | 2 | 2 |
Corporate Unallocated Expenses | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | $1 | $1 | $3 | $2 |
Restructuring_Impairment_and_I5
Restructuring, Impairment and Integration Charges 2012 Productivity Plan Activity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | $0 | $0 | ($3) | $0 |
Payments for Restructuring | ' | ' | -112 | -74 |
2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve - Period Start | ' | ' | 85 | ' |
Restructuring, Settlement and Impairment Provisions | 15 | 19 | 17 | 30 |
Payments for Restructuring | ' | ' | -43 | ' |
Restructuring Reserve, Settled without Cash | ' | ' | -7 | ' |
Restructuring Reserve - Period End | 52 | ' | 52 | ' |
Employee Severance [Member] | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve - Period Start | ' | ' | 68 | ' |
Restructuring, Settlement and Impairment Provisions | ' | ' | 10 | ' |
Payments for Restructuring | ' | ' | -27 | ' |
Restructuring Reserve, Settled without Cash | ' | ' | -5 | ' |
Restructuring Reserve - Period End | 46 | ' | 46 | ' |
Asset Impairment [Member] | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve - Period Start | ' | ' | ' | ' |
Restructuring, Settlement and Impairment Provisions | ' | ' | 4 | ' |
Restructuring Reserve, Settled without Cash | ' | ' | -4 | ' |
Restructuring Reserve - Period End | 0 | ' | 0 | ' |
Other Costs [Member] | 2012 Productivity Plan | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Reserve - Period Start | ' | ' | 17 | ' |
Restructuring, Settlement and Impairment Provisions | ' | ' | 3 | ' |
Payments for Restructuring | ' | ' | -16 | ' |
Restructuring Reserve, Settled without Cash | ' | ' | 2 | ' |
Restructuring Reserve - Period End | $6 | ' | $6 | ' |
Intangible_Assets_Amortizable_
Intangible Assets Amortizable Intangible Assets, net (Detail) (USD $) | Jun. 14, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | $3,089 | $3,104 |
Finite-Lived Intangible Assets, Accumulated Amortization | -1,504 | -1,466 |
Amortizable Intangible Assets, net | 1,585 | 1,638 |
Other Identifiable Intangibles | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 680 | 686 |
Finite-Lived Intangible Assets, Accumulated Amortization | -313 | -301 |
Amortizable Intangible Assets, net | 367 | 385 |
Brands | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,397 | 1,400 |
Finite-Lived Intangible Assets, Accumulated Amortization | -1,009 | -996 |
Amortizable Intangible Assets, net | 388 | 404 |
Reacquired Franchise Rights | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 107 | 108 |
Finite-Lived Intangible Assets, Accumulated Amortization | -92 | -86 |
Amortizable Intangible Assets, net | 15 | 22 |
Acquired Franchise Rights | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 905 | 910 |
Finite-Lived Intangible Assets, Accumulated Amortization | -90 | -83 |
Amortizable Intangible Assets, net | $815 | $827 |
Change_in_Book_Value_of_Nonamo
Change in Book Value of Nonamortizable Intangible Assets (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 14, 2014 |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | $31,014 |
Translation and Other | -352 |
Balance, End | 30,662 |
FLNA | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 334 |
Translation and Other | -4 |
Balance, End | 330 |
LAF | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 866 |
Translation and Other | 17 |
Balance, End | 883 |
PAB | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 18,921 |
Translation and Other | -26 |
Balance, End | 18,895 |
Europe | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 10,088 |
Translation and Other | -363 |
Balance, End | 9,725 |
AMEA | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 630 |
Translation and Other | 24 |
Balance, End | 654 |
Goodwill | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 16,613 |
Translation and Other | -156 |
Balance, End | 16,457 |
Goodwill | FLNA | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 305 |
Translation and Other | -3 |
Balance, End | 302 |
Goodwill | QFNA | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 175 |
Translation and Other | ' |
Balance, End | 175 |
Goodwill | LAF | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 660 |
Translation and Other | 11 |
Balance, End | 671 |
Goodwill | PAB | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 9,943 |
Translation and Other | -6 |
Balance, End | 9,937 |
Goodwill | Europe | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 5,027 |
Translation and Other | -176 |
Balance, End | 4,851 |
Goodwill | AMEA | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 503 |
Translation and Other | 18 |
Balance, End | 521 |
Brands | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 4,579 |
Translation and Other | -142 |
Balance, End | 4,437 |
Brands | FLNA | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 29 |
Translation and Other | -1 |
Balance, End | 28 |
Brands | LAF | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 206 |
Translation and Other | 6 |
Balance, End | 212 |
Brands | PAB | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 146 |
Translation and Other | 3 |
Balance, End | 149 |
Brands | Europe | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 4,071 |
Translation and Other | -156 |
Balance, End | 3,915 |
Brands | AMEA | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 127 |
Translation and Other | 6 |
Balance, End | 133 |
Reacquired Franchise Rights | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 8,041 |
Translation and Other | -52 |
Balance, End | 7,989 |
Reacquired Franchise Rights | PAB | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 7,281 |
Translation and Other | -24 |
Balance, End | 7,257 |
Reacquired Franchise Rights | Europe | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 760 |
Translation and Other | -28 |
Balance, End | 732 |
Acquired franchise rights | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 1,781 |
Translation and Other | -2 |
Balance, End | 1,779 |
Acquired franchise rights | PAB | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 1,551 |
Translation and Other | 1 |
Balance, End | 1,552 |
Acquired franchise rights | Europe | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' |
Balance, Beginning | 230 |
Translation and Other | -3 |
Balance, End | $227 |
Rollforward_of_Reserves_for_Fe
Rollforward of Reserves for Federal State and Foreign Tax Jurisdictions (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Balance, beginning of year | $1,268 | $2,425 |
Additions for tax positions related to the current year | 153 | 238 |
Additions for tax positions from prior years | 19 | 273 |
Reductions for tax positions from prior years | -12 | -327 |
Settlement payments | -62 | -1,306 |
Statute of limitations expiration | -34 | -30 |
Translation and other | -5 | -5 |
Balance, end of period | $1,327 | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | ' | 3 | 2.5 |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | 4.2 | 3.9 |
Stock-based compensation expense | $68 | $72 | $140 | $149 |
Restructuring, Settlement and Impairment Provisions | 0 | 0 | -3 | 0 |
Recognized stock-based compensation expense | $68 | $72 | $137 | $149 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Price | ' | ' | $79.75 | $75.75 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Grants in Period, Weighted Average Grant Price | ' | ' | $79.76 | $75.75 |
Performance Stock Unit [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Grants in Period, Weighted Average Grant Price | ' | ' | $79.75 | $75.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | 0.4 | 0.4 |
Weighted_Average_Black_Scholes
Weighted Average Black Scholes Fair Value Assumptions (Detail) | 6 Months Ended | |
Jun. 14, 2014 | Jun. 15, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Expected life | '6 years | '6 years |
Risk free interest rate | 1.80% | 1.00% |
Expected volatility | 16.00% | 17.00% |
Expected dividend yield | 2.90% | 2.70% |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost for Pension and Retiree Medical Plans (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 |
U.S. | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $90 | $108 | $181 | $216 |
Interest cost | 134 | 122 | 268 | 243 |
Expected return on plan assets | -181 | -190 | -362 | -380 |
Amortization of prior service cost/(credit) | 4 | 5 | 9 | 9 |
Amortization of net losses/(gains) | 41 | 66 | 81 | 133 |
Gross total | 88 | 111 | 177 | 221 |
Defined Benefit Plan, Settlements and Curtailments, Benefit Obligation | ' | ' | ' | ' |
Special termination benefits | ' | 2 | 8 | 3 |
Total expense | 88 | 113 | 185 | 224 |
International | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 24 | 27 | 43 | 49 |
Interest cost | 33 | 30 | 57 | 52 |
Expected return on plan assets | -44 | -40 | -76 | -70 |
Amortization of prior service cost/(credit) | ' | 1 | ' | 1 |
Amortization of net losses/(gains) | 13 | 16 | 22 | 29 |
Gross total | 26 | 34 | 46 | 61 |
Defined Benefit Plan, Settlements and Curtailments, Benefit Obligation | ' | ' | ' | ' |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | ' | 1 | ' | 1 |
Special termination benefits | ' | ' | ' | ' |
Total expense | 26 | 35 | 46 | 62 |
Retiree Medical | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 8 | 11 | 16 | 21 |
Interest cost | 14 | 12 | 28 | 25 |
Expected return on plan assets | -6 | -6 | -12 | -12 |
Amortization of prior service cost/(credit) | -5 | -5 | -10 | -10 |
Amortization of net losses/(gains) | -1 | ' | -2 | ' |
Gross total | 10 | 12 | 20 | 24 |
Defined Benefit Plan, Settlements and Curtailments, Benefit Obligation | ' | ' | ' | ' |
Special termination benefits | 1 | ' | 1 | ' |
Total expense | $11 | $12 | $21 | $24 |
Pension_and_Retiree_Medical_Be2
Pension and Retiree Medical Benefits - Additional Information (Detail) (Discretionary, International, USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 |
Discretionary | International | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discretionary, pension contributions | $19 | $13 |
Debt_Obligations_and_Commitmen1
Debt Obligations and Commitments - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||||||||
Mar. 22, 2014 | Jun. 14, 2014 | Dec. 28, 2013 | Mar. 22, 2014 | Mar. 22, 2014 | Mar. 22, 2014 | Mar. 22, 2014 | Jun. 14, 2014 | Jun. 14, 2014 | Jun. 14, 2014 | Jun. 14, 2014 | Jun. 14, 2014 | Jun. 10, 2013 | Jun. 14, 2014 | Jun. 10, 2013 | Jun. 14, 2014 | Jun. 14, 2014 | Jun. 14, 2014 | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 | |
USD ($) | USD ($) | USD ($) | Notes Due 2017 [Member] | Notes Due 2017 [Member] | Notes Due 2024 [Member] | Notes Due 2024 [Member] | Notes Due 2021 [Member] | Notes Due 2021 [Member] | Notes Due 2026 [Member] | Notes Due 2026 [Member] | Five Year Unsecured Revolving Credit Agreement [Member] | Five Year Unsecured Revolving Credit Agreement [Member] | 364 Day Unsecured Revolving Credit Agreement [Member] [Member] | 364 Day Unsecured Revolving Credit Agreement [Member] [Member] | Cash and Cash Equivalents [Member] | Short-term Investments [Member] | Commodity Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | |
USD ($) | Zero Point Ninety Five Notes Due 2017 [Member] [Member] | USD ($) | Three Point Six Notes Due 2024 [Member] | EUR (€) | One Point Seventy Five Notes Due 2021 [Member] | EUR (€) | Two Point Six Two Five Notes 2026 [Member] [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | ||||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($16,000,000) | ($11,000,000) | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000,000 | 3,000,000,000 | 334,000,000 | 506,000,000 | 816,000,000 | 988,000,000 |
Short-term Debt | ' | 7,242,000,000 | 5,306,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000,000 | 3,500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | 750,000,000 | ' | 1,250,000,000 | ' | 500,000,000 | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | 0.95% | ' | 3.60% | ' | 1.75% | ' | 2.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-Term Debt Instruments, Matured | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Unsecured Lines of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,772,500,000 | ' | 3,772,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,500,000,000 | ' | 4,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Line of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,925,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit, Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,925,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial paper outstanding | ' | $4,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 | ||||
Losses/(gains) on cash flow hedges: | ' | ' | ' | ' | ||||
Total before tax | $11 | ($8) | $21 | $51 | ||||
Tax amounts | -5 | 2 | -9 | -19 | ||||
Net losses/(gains) after tax | 6 | -6 | 12 | 32 | ||||
Amortization of pension and retiree medical items: | ' | ' | ' | ' | ||||
Net prior service cost (a) | 0 | [1] | 1 | 0 | [1] | 0 | ||
Net actuarial losses | 53 | 83 | 101 | 163 | ||||
Total before tax | 53 | 84 | 101 | 163 | ||||
Tax amounts | -17 | -27 | -33 | -54 | ||||
Net losses after tax | 36 | 57 | 68 | 109 | ||||
Total net losses reclassified for the period, net of tax | 42 | 51 | 80 | 141 | ||||
Cash Flow Hedges | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges: | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges | 11 | -8 | 21 | 51 | ||||
Cash Flow Hedges | Foreign exchange contracts | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges: | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges | -5 | [2] | 1 | [2] | -11 | [2] | 4 | [2] |
Cash Flow Hedges | Foreign exchange contracts | Cost of Sales | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges: | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges | -5 | 1 | -11 | 4 | ||||
Cash Flow Hedges | Interest rate derivatives | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges: | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges | 9 | [2] | -18 | [2] | 14 | [2] | 33 | [2] |
Cash Flow Hedges | Interest rate derivatives | Interest Expense | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges: | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges | 9 | -18 | 14 | 33 | ||||
Cash Flow Hedges | Commodity contracts | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges: | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges | 7 | [2] | 9 | [2] | 18 | [2] | 14 | [2] |
Cash Flow Hedges | Commodity contracts | Cost of Sales | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges: | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges | 7 | 8 | 19 | 14 | ||||
Cash Flow Hedges | Commodity contracts | Selling, General and Administrative Expenses | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges: | ' | ' | ' | ' | ||||
Losses/(gains) on cash flow hedges | ' | $1 | ($1) | $0 | ||||
[1] | These items are included in the components of net periodic benefit cost for pension and retiree medical plans (see Note 7 for additional details). | |||||||
[2] | Foreign exchange derivative gains/losses are primarily included in cost of sales. Interest rate derivative gains/losses are included in interest expense. Commodity derivative gains/losses are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 6 Months Ended | 6 Months Ended | ||||||||||
Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Dec. 28, 2013 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 | |
Commodity contracts | Foreign Exchange Contract | Foreign Exchange Contract | Interest rate derivatives | Interest rate derivatives | Interest rate derivatives | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | |||
Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative maturity term, maximum | ' | ' | '3 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Expected reclassification of net gains (losses) related to hedge from accumulated OCI into net income within the next 12 months | ' | ' | ($16,000,000) | ($11,000,000) | ' | ($21,000,000) | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | ' | 2,500,000,000 | 3,000,000,000 | 9,300,000,000 | ' | 7,700,000,000 | 334,000,000 | 506,000,000 | 816,000,000 | 988,000,000 |
Percentage of total debt, net of related interest rate derivatives, exposed to variable interest rates | ' | ' | ' | ' | ' | 33.00% | 31.00% | ' | ' | ' | ' | ' |
Debt obligations | 34,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable Securities, Unrealized Gain (Loss) | $133,000,000 | $83,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Values_of_Financial_Asset
Fair Values of Financial Assets and Liabilities (Detail) (USD $) | Jun. 14, 2014 | Dec. 28, 2013 | Jun. 15, 2013 | ||
In Millions, unless otherwise specified | |||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Short-term Debt | $7,242 | $5,306 | ' | ||
Available-for-sale securities | 6,434 | ' | 95 | ||
Short-term investments - index funds | 191 | [1],[2] | ' | 172 | [1],[2] |
Prepaid forward contracts | 25 | [2],[3] | ' | 39 | [2],[3] |
Deferred compensation | 506 | [2],[4] | ' | 489 | [2],[4] |
Deferred Compensation Assets, Current and Noncurrent | 0 | ' | 0 | ||
Derivatives not designated as hedging instruments: | ' | ' | ' | ||
Total derivatives at fair value | 308 | [2],[5] | ' | 375 | [2],[5] |
Total Financial Assets at fair value | 6,958 | [2] | ' | 681 | [2] |
Derivatives not designated as hedging instruments: | ' | ' | ' | ||
Total derivatives at fair value | 197 | [2],[5] | ' | 271 | [2],[5] |
Total Financial Liabilities at fair Value | 703 | [2] | ' | 760 | [2] |
Derivatives Designated As Fair Value Hedging Instruments Assets | ' | ' | ' | ||
Derivatives designated as fair value hedging instruments: | ' | ' | ' | ||
Interest rate derivatives | 167 | [2],[6] | ' | 224 | [2],[6] |
Derivatives Designated As Hedging Instruments Assets | ' | ' | ' | ||
Derivatives designated as cash flow hedging instruments: | ' | ' | ' | ||
Foreign exchange contracts | 12 | [2],[7] | ' | 28 | [2],[7] |
Interest rate derivatives | 36 | [2],[6] | ' | ' | [2],[6] |
Commodity contracts | 2 | [2],[8] | ' | 3 | [2],[8] |
Derivatives designated as hedging instruments, Assets, Total | 50 | [2] | ' | 31 | [2] |
Derivatives Not Designated As Hedging Instruments Assets | ' | ' | ' | ||
Derivatives not designated as hedging instruments: | ' | ' | ' | ||
Foreign exchange contracts | 7 | [2],[7] | ' | 16 | [2],[7] |
Interest rate derivatives | 69 | [2],[6] | ' | 98 | [2],[6] |
Commodity contracts | 15 | [2],[8] | ' | 6 | [2],[8] |
Derivatives not designated as hedging instruments, Assets, Total | 91 | [2] | ' | 120 | [2] |
Derivatives Designated As Fair Value Hedging Instruments Liabilities | ' | ' | ' | ||
Derivatives designated as fair value hedging instruments: | ' | ' | ' | ||
Interest rate derivatives | 0 | [2],[6] | ' | 1 | [2],[6] |
Derivatives Designated As Hedging Instruments Liabilities | ' | ' | ' | ||
Derivatives designated as cash flow hedging instruments: | ' | ' | ' | ||
Foreign exchange contracts | 30 | [2],[7] | ' | 5 | [2],[7] |
Interest rate derivatives | 22 | [2],[6] | ' | 6 | [2],[6] |
Commodity contracts | 15 | [2],[8] | ' | 38 | [2],[8] |
Derivatives designated as hedging instruments, Liabilities, Total | 67 | [2] | ' | 49 | [2] |
Derivatives Not Designated As Hedging Instruments Liabilities | ' | ' | ' | ||
Derivatives not designated as hedging instruments: | ' | ' | ' | ||
Foreign exchange contracts | 6 | [2],[7] | ' | 26 | [2],[7] |
Interest rate derivatives | 89 | [2],[6] | ' | 124 | [2],[6] |
Commodity contracts | 35 | [2],[8] | ' | 71 | [2],[8] |
Derivatives not designated as hedging instruments, Liabilities, Total | 130 | [2] | ' | 221 | [2] |
Designated as Hedging Instrument [Member] | Commodity contracts | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Derivative, Notional Amount | 334 | ' | 506 | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Derivative, Notional Amount | 816 | ' | 988 | ||
Level 1 Fair Values Of Assets And Liabilities [Member] | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Deferred compensation | ' | ' | 7 | ||
Short-term Investments [Member] | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Short-term Debt | 3,500 | ' | ' | ||
Cash and Cash Equivalents [Member] | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Short-term Debt | 2,800 | ' | ' | ||
Liability [Member] | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Available-for-sale securities | 0 | ' | 0 | ||
Assets [Member] | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Available-for-sale securities | 6,286 | ' | 0 | ||
Assets [Member] | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Available-for-sale securities | 148 | ' | 95 | ||
Liability [Member] | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ||
Available-for-sale securities | $0 | ' | $0 | ||
[1] | Based on the price of index funds. Categorized as a Level 1 asset. | ||||
[2] | inancial assets are classified on our condensed consolidated balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our condensed consolidated balance sheet within accounts payable and other current liabilities and other liabilities. Unless specifically indicated, all financial assets and liabilities are categorized as Level 2 assets or liabilities. | ||||
[3] | Based primarily on the price of our common stock. | ||||
[4] | Based on the fair value of investments corresponding to employees’ investment elections. As of June 14, 2014, all balances are categorized as Level 2 liabilities. As of June 15, 2013, $7 million are categorized as Level 1 liabilities and the remaining balances are categorized as Level 2 liabilities. | ||||
[5] | Unless otherwise noted, derivative assets and liabilities are presented on a gross basis on our condensed consolidated balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on the condensed consolidated balance sheet as of June 14, 2014 and June 15, 2013 were immaterial. Collateral received against any of our asset positions was immaterial. | ||||
[6] | Based on LIBOR forward rates and recently reported market transactions of spot and forward rates. | ||||
[7] | Based on recently reported market transactions of spot and forward rates. | ||||
[8] | Based on recently reported market transactions, primarily swap arrangements. |
Effective_Portion_of_Pre_Tax_G
Effective Portion of Pre Tax Gains and Losses on Derivative Instruments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 | ||||
Fair Value/Non-designated Hedges | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ||||
(Gains)/Losses Recognized in Income Statement (a) | $9 | $67 | ($16) | $105 | ||||
Fair Value/Non-designated Hedges | Foreign exchange contracts | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ||||
(Gains)/Losses Recognized in Income Statement (a) | 16 | [1] | 5 | [1] | -1 | [1] | 5 | [1] |
Fair Value/Non-designated Hedges | Interest rate derivatives | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ||||
(Gains)/Losses Recognized in Income Statement (a) | -5 | [1] | 24 | [1] | -4 | [1] | 51 | [1] |
Fair Value/Non-designated Hedges | Commodity contracts | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ||||
(Gains)/Losses Recognized in Income Statement (a) | -2 | [1] | 38 | [1] | -11 | [1] | 49 | [1] |
Cash Flow Hedges | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | 41 | -5 | 25 | 18 | ||||
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) | 11 | -8 | 21 | 51 | ||||
Cash Flow Hedges | Foreign exchange contracts | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | 30 | -5 | 12 | -33 | ||||
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) | -5 | [2] | 1 | [2] | -11 | [2] | 4 | [2] |
Cash Flow Hedges | Interest rate derivatives | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | 10 | -18 | 5 | 12 | ||||
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) | 9 | [2] | -18 | [2] | 14 | [2] | 33 | [2] |
Cash Flow Hedges | Commodity contracts | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | 1 | 18 | 8 | 39 | ||||
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) | $7 | [2] | $9 | [2] | $18 | [2] | $14 | [2] |
[1] | Foreign exchange derivative gains/losses are primarily included in selling, general and administrative expenses. Interest rate derivative gains/losses are primarily from fair value hedges and are included in interest expense. These gains/losses are substantially offset by increases/decreases in the value of the underlying debt, which are also included in interest expense. Commodity derivative gains/losses are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. | |||||||
[2] | Foreign exchange derivative gains/losses are primarily included in cost of sales. Interest rate derivative gains/losses are included in interest expense. Commodity derivative gains/losses are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. |
Basic_and_Diluted_Net_Income_A
Basic and Diluted Net Income Attributable to PepsiCo (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 14, 2014 | Jun. 15, 2013 | ||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | 0.1 | 1.3 | ||||
Net income attributable to PepsiCo | $1,978 | $2,010 | $3,194 | $3,085 | ||||
Preferred Stock [Abstract] | ' | ' | ' | ' | ||||
Dividends | ' | -1 | ' | -1 | ||||
Redemption premium | -2 | -2 | -3 | -4 | ||||
Net income available for PepsiCo common shareholders - Value | 1,976 | 2,007 | 3,191 | 3,080 | ||||
Net income available for PepsiCo common shareholders - Shares | 1,515 | [1] | 1,548 | [1] | 1,519 | [1] | 1,546 | [1] |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | 0 | 0 | 0 | 0 | ||||
Basic net income attributable to PepsiCo per common share (in dollars per share) | $1.30 | $1.30 | $2.10 | $1.99 | ||||
Dilutive Securities [Abstract] | ' | ' | ' | ' | ||||
Stock options and RSUs - Shares | 16 | [1],[2] | 18 | [1],[2] | 16 | [1],[2] | 18 | [1],[2] |
ESOP convertible preferred stock - Value | 2 | 3 | 3 | 5 | ||||
ESOP convertible preferred stock - Shares | 1 | [1] | 1 | [1] | 1 | [1] | 1 | [1] |
Diluted shares - Value | $1,978 | $2,010 | $3,194 | $3,085 | ||||
Diluted shares - Shares | 1,532 | [1] | 1,567 | [1] | 1,536 | [1] | 1,565 | [1] |
Diluted net income attributable to PepsiCo per common share (in dollars per share) | $1.29 | $1.28 | $2.08 | $1.97 | ||||
Out-of-the-money options average exercise price | ' | ' | $82.25 | $75.69 | ||||
[1] | Weighted-average common shares outstanding (in millions). | |||||||
[2] | ptions to purchase 0.1 million shares in 2014 and 1.3 million shares in 2013 were not included in the calculation of diluted earnings per common share because these options were out-of-the-money. These out-of-the-money options had average exercise prices of $82.25 in 2014 and $75.69 in 2013. |
Basic_and_Diluted_Net_Income_A1
Basic and Diluted Net Income Attributable to PepsiCo (Parenthetical) (Detail) (USD $) | 6 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 14, 2014 | Jun. 15, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Out-of-the-money options | 0.1 | 1.3 |
Out-of-the-money options average exercise price | $82.25 | $75.69 |
Divestitures_Details
Divestitures (Details) (Subsidiary, Vietnam Bottling Operations [Member], USD $) | 3 Months Ended | 6 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Jun. 15, 2013 | Jun. 15, 2013 |
Subsidiary, Vietnam Bottling Operations [Member] | ' | ' |
Noncash or Part Noncash Divestitures [Line Items] | ' | ' |
Gain (Loss) on Sale of Stock in Subsidiary, After-Tax | $137 | $137 |
Gain(loss) on sale of stock in subsidiary, after-tax per share | $0.09 | $0.09 |