Document and Entity Information
Document and Entity Information - shares | 8 Months Ended | |
Sep. 05, 2015 | Sep. 30, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 5, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PEP | |
Entity Registrant Name | PEPSICO INC | |
Entity Central Index Key | 77,476 | |
Current Fiscal Year End Date | --12-26 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,456,850,777 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 8 Months Ended | |||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | ||
Net Revenue | $ 16,331 | $ 17,218 | $ 44,471 | $ 46,735 | |
Cost of sales | 7,395 | 7,995 | 20,004 | 21,520 | |
Gross Profit | 8,936 | 9,223 | 24,467 | 25,215 | |
Selling, general and administrative expenses | 6,143 | 6,354 | 16,942 | 17,600 | |
Venezuela impairment charges | 1,359 | 1,359 | 0 | ||
Amortization of intangible assets | 18 | 22 | 53 | 65 | |
Operating Profit | 1,416 | 2,847 | 6,113 | 7,550 | |
Interest expense | (225) | (215) | (653) | (625) | |
Interest income and other | 2 | 23 | 31 | 51 | |
Income before income taxes | 1,193 | 2,655 | 5,491 | 6,976 | |
Provision for income taxes | 650 | 637 | 1,723 | 1,744 | |
Net income | 543 | 2,018 | 3,768 | 5,232 | |
Less: Net income attributable to noncontrolling interests | 10 | 10 | 34 | 30 | |
Net Income (Loss) Attributable to Parent | $ 533 | $ 2,008 | $ 3,734 | $ 5,202 | |
Net Income Attributable to PepsiCo per Common Share | |||||
Basic | $ 0.36 | $ 1.33 | $ 2.53 | $ 3.43 | |
Diluted net income attributable to PepsiCo per common share (in dollars per share) | $ 0.36 | $ 1.32 | $ 2.50 | $ 3.40 | |
Weighted-average common shares outstanding | |||||
Basic | [1] | 1,467 | 1,507 | 1,475 | 1,515 |
Diluted | [1] | 1,483 | 1,525 | 1,492 | 1,532 |
Cash dividends declared per common share | $ 0.7025 | $ 0.655 | $ 2.06 | $ 1.8775 | |
[1] | Weighted-average common shares outstanding (in millions). |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 543 | $ 2,018 | $ 3,768 | $ 5,232 |
Other Comprehensive Loss | ||||
Currency translation adjustment, pre-tax amount | (1,600) | (737) | (2,107) | (1,151) |
Currency translation adjustment, tax amounts | 0 | 0 | 0 | 0 |
Currency translation adjustment, after-tax amounts | (1,600) | (737) | (2,107) | (1,151) |
Reclassification associated with Venezuela impairment charges | (111) | 0 | (111) | 0 |
Reclassification associated with Venezuela impairment charges, tax amount | 0 | 0 | ||
Reclassification associated with Venezuela impairment charges, after-tax | (111) | (111) | ||
Cash flow hedges: | ||||
Reclassification of net losses to net income, pre-tax amounts | (6) | (109) | (88) | (130) |
Reclassification of net losses to net income, tax amounts | (3) | (37) | (40) | (46) |
Net losses after tax | (3) | (72) | (48) | (84) |
Net derivative gains/(losses), pre-tax amounts | 13 | (42) | (94) | (67) |
Net derivative gains/(losses), tax amounts | 1 | (16) | (43) | (23) |
Net derivative gains/(losses), after-tax amounts | 12 | (26) | (51) | (44) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ||||
Reclassification of net losses to net income, pre-tax amounts | 58 | 55 | 167 | 156 |
Reclassification of net losses to net income, tax amounts | 18 | 18 | 53 | 51 |
Net losses after tax | 40 | 37 | 114 | 105 |
Reclassification associated with Venezuela impairment charges - Pension | 20 | 0 | 20 | 0 |
Reclassification associated with Venezuela impairment charge, tax amount - Pension | 4 | 0 | 4 | 0 |
Reclassification associated with Venezuela impairment charges, net of tax - pension | 16 | 0 | 16 | 0 |
Remeasurement of net liabilities and translation, pre-tax amounts | (16) | 10 | (31) | 20 |
Remeasurement of net liabilities and translation, tax amounts | (5) | 5 | (7) | 8 |
Remeasurement of net liabilities and translation, after-tax amounts | (11) | 5 | (24) | 12 |
Unrealized (losses)/gains on securities, pre-tax amounts | (11) | (13) | (2) | (2) |
Unrealized (losses)/gains on securities, tax amounts | (5) | (7) | (1) | (1) |
Unrealized (losses)/gains on securities, after-tax amounts | (6) | (6) | (1) | (1) |
Total Other Comprehensive Gain / (Loss), pre-tax amounts | (1,387) | (638) | (1,786) | (954) |
Total Other Comprehensive Gain / (Loss), tax amounts | 26 | 27 | 60 | 65 |
Total Other Comprehensive Gain / (Loss), after-tax amounts | (1,413) | (665) | (1,846) | (1,019) |
Comprehensive Income | (870) | 1,353 | 1,922 | 4,213 |
Comprehensive income attributable to noncontrolling interests | 10 | 10 | 33 | 30 |
Comprehensive Income Attributable to PepsiCo | $ (880) | $ 1,343 | $ 1,889 | $ 4,183 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 8 Months Ended | |
Sep. 05, 2015 | Sep. 06, 2014 | |
Operating Activities | ||
Net income | $ 3,768 | $ 5,232 |
Depreciation and amortization | 1,644 | 1,794 |
Stock-based compensation expense | 208 | 207 |
Restructuring and impairment charges | 113 | 258 |
Cash payments for restructuring charges | (149) | (169) |
Tingyi Charge | 73 | 0 |
Venezuela impairment charges | 1,359 | 0 |
Excess tax benefits from share-based payment arrangements | (85) | (86) |
Pension and retiree medical plan expenses | 326 | 368 |
Pension and retiree medical plan contributions | (165) | (196) |
Deferred income taxes and other tax charges and credits | 186 | (8) |
Accounts and notes receivable | (1,553) | (1,582) |
Inventories | (574) | (481) |
Prepaid expenses and other current assets | (157) | (18) |
Accounts payable and other current liabilities | 1,014 | 537 |
Income taxes payable | 1,002 | 1,115 |
Other, net | (235) | (278) |
Net Cash Provided by Operating Activities | 6,775 | 6,693 |
Investing Activities | ||
Capital spending | (1,463) | (1,540) |
Sales of property, plant and equipment | 63 | 60 |
Acquisitions and investments in noncontrolled affiliates | (24) | (81) |
Reduction of cash due to Venezuela deconsolidation | (568) | 0 |
Divestitures | 75 | 186 |
More than three months - purchases | (2,391) | (5,423) |
More than three months - maturities | 3,005 | 0 |
More than three months - purchases | 0 | 117 |
Other investing, net | (3) | 3 |
Net Cash Used for Investing Activities | (1,306) | (6,678) |
Financing Activities | ||
Proceeds from issuances of long-term debt | 5,719 | 3,364 |
Payments of long-term debt | (4,066) | (2,186) |
Short-term borrowings, by original maturity | ||
More than three months - proceeds | 13 | 32 |
More than three months - payments | (31) | (10) |
Three months or less, net | 1,431 | 2,117 |
Cash dividends paid | (3,008) | (2,745) |
Share repurchases - common | (3,199) | (3,207) |
Share repurchases - preferred | (3) | (7) |
Proceeds from exercises of stock options | 327 | 561 |
Excess tax benefits from share-based payment arrangements | 85 | 86 |
Other financing | (26) | (32) |
Net Cash Used for Financing Activities | (2,758) | (2,027) |
Effect of exchange rate changes on cash and cash equivalents | (147) | (81) |
Net Increase/(Decrease) in Cash and Cash Equivalents | 2,564 | (2,093) |
Cash and Cash Equivalents, Beginning of Year | 6,134 | 9,375 |
Cash and Cash Equivalents, End of Period | $ 8,698 | $ 7,282 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Sep. 05, 2015 | Dec. 27, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 8,698 | $ 6,134 |
Short-term investments | 1,981 | 2,592 |
Accounts and notes receivable, less allowance: 9/15 - $140 and 12/14 - $137 | 7,666 | 6,651 |
Inventories | ||
Raw materials | 1,410 | 1,593 |
Work-in-process | 279 | 173 |
Finished goods | 1,435 | 1,377 |
Inventory, Net, Total | 3,124 | 3,143 |
Prepaid expenses and other current assets | 1,345 | 2,143 |
Total Current Assets | 22,814 | 20,663 |
Property, Plant and Equipment | 35,390 | 36,300 |
Accumulated Depreciation | (19,259) | (19,056) |
Property, Plant and Equipment, Net, Total | 16,131 | 17,244 |
Amortizable Intangible Assets, net | 1,312 | 1,449 |
Goodwill | 14,407 | 14,965 |
Other Nonamortizable Intangible Assets | 12,081 | 12,639 |
Nonamortizable Intangible Assets | 26,488 | 27,604 |
Investments in Noncontrolled Affiliates | 2,285 | 2,689 |
Other Assets | 872 | 860 |
Total Assets | 69,902 | 70,509 |
Current Liabilities | ||
Short-term obligations | 5,525 | 5,076 |
Accounts payable and other current liabilities | 13,546 | 13,016 |
Total Current Liabilities | 19,071 | 18,092 |
Long-term Debt Obligations | 26,318 | 23,821 |
Other Liabilities | 5,915 | 5,744 |
Deferred Income Taxes | 5,019 | 5,304 |
Total Liabilities | 56,323 | 52,961 |
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: 1,462 and 1,488 shares, respectively) | 24 | 25 |
Capital in excess of par value | 4,021 | 4,115 |
Retained earnings | 49,767 | 49,092 |
Accumulated other comprehensive loss | (12,514) | (10,669) |
Total PepsiCo Common Shareholders’ Equity | 13,604 | 17,578 |
Noncontrolling interests | 118 | 110 |
Total Equity | 13,579 | 17,548 |
Total Liabilities and Equity | 69,902 | 70,509 |
Preferred Stock | ||
Current Liabilities | ||
Repurchased Preferred Stock | (184) | (181) |
PepsiCo Common Shareholders' Equity | ||
Repurchased common stock, in excess of par value (404 and 378 shares, respectively) | (184) | (181) |
Total Equity | 41 | |
Common Stock | ||
Current Liabilities | ||
Repurchased Preferred Stock | (27,694) | (24,985) |
PepsiCo Common Shareholders' Equity | ||
Repurchased common stock, in excess of par value (404 and 378 shares, respectively) | (27,694) | (24,985) |
Total Equity | $ 24 | $ 25 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 05, 2015 | Dec. 27, 2014 |
Accounts and notes receivable, allowance | $ 140 | $ 137 |
Preferred Stock, no par value | ||
Common stock, Par value | $ 0.0167 | $ 0.0167 |
Common stock, Authorized | 3,600 | 3,600 |
Common stock, Issued | 1,462 | 1,488 |
Repurchased common stock, shares | 404 | 378 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock | Repurchased preferred stock [Member] | Common Stock | Repurchased Common Stock [Member] | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Equity [Member] | Noncontrolling Interests | |
Shares issued, beginning of year at Dec. 28, 2013 | (0.6) | (337) | |||||||||
Shares issued, end of period at Sep. 06, 2014 | 0.8 | (0.6) | (363) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Redemptions, shares | 0 | ||||||||||
Redemptions | $ (7) | ||||||||||
Balance, beginning of year, shares at Dec. 28, 2013 | 1,529 | ||||||||||
Balance, beginning of year at Dec. 28, 2013 | (171) | $ 25 | $ (21,004) | $ 4,095 | $ 46,420 | $ (5,127) | $ 110 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock Repurchased During Period, Shares | (26) | (38) | |||||||||
Stock Repurchased During Period, Value | $ 0 | $ (3,264) | |||||||||
Stock option exercises, shares | 10 | ||||||||||
Stock option exercises | $ 643 | (200) | [1] | ||||||||
Other (in shares) | 2 | ||||||||||
Other | $ 162 | ||||||||||
Stock-based compensation expense | 207 | ||||||||||
Payments Related to Tax Withholding for Share-based Compensation | (89) | ||||||||||
Other | 15 | ||||||||||
Net income attributable to PepsiCo | $ 5,202 | 5,202 | |||||||||
Cash dividends declared - common | (2,839) | ||||||||||
Dividends, Preferred Stock, Cash | 0 | ||||||||||
Cash dividends declared - RSUs | (19) | ||||||||||
Currency translation: | |||||||||||
Currency translation adjustment | (1,151) | ||||||||||
Reclassification associated with Venezuela impairment charges | 0 | ||||||||||
Cash flow hedges: | |||||||||||
Reclassification of net losses to net income | 84 | 84 | |||||||||
Net derivative losses | (44) | (44) | |||||||||
Pension and retiree medical: | |||||||||||
Reclassification of net losses to net income | 105 | ||||||||||
Reclassification associated with Venezuela impairment charges, net of tax - pension | 0 | ||||||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | (12) | (12) | |||||||||
Unrealized gains on securities, net of tax | (1) | (1) | |||||||||
Noncontrolling Interest Items [Abstract] | |||||||||||
Net income attributable to noncontrolling interests | 30 | 30 | |||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (23) | ||||||||||
Noncontrolling Interest-Other, net | (1) | ||||||||||
Balance, end of year, shares at Sep. 06, 2014 | 1,503 | ||||||||||
Balance, end of period at Sep. 06, 2014 | 23,187 | $ 41 | $ (178) | $ 25 | $ (23,463) | 4,028 | 48,764 | (6,146) | $ 23,208 | 116 | |
Noncontrolling Interest Items [Abstract] | |||||||||||
Stock option exercises/RSUs converted, tax benefits | 45 | ||||||||||
Shares issued, beginning of year at Dec. 27, 2014 | (0.7) | (378) | |||||||||
Shares issued, end of period at Sep. 05, 2015 | 0.8 | (0.7) | (404) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Redemptions, shares | 0 | ||||||||||
Redemptions | $ (3) | ||||||||||
Balance, beginning of year, shares at Dec. 27, 2014 | 1,488 | ||||||||||
Balance, beginning of year at Dec. 27, 2014 | 17,548 | (181) | $ 25 | $ (24,985) | 4,115 | 49,092 | (10,669) | 110 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock Repurchased During Period, Shares | (26) | (34) | |||||||||
Stock Repurchased During Period, Value | $ (1) | $ (3,273) | |||||||||
Stock option exercises, shares | 5 | ||||||||||
Stock option exercises | $ 382 | (175) | [1] | ||||||||
Other (in shares) | 3 | ||||||||||
Other | $ 182 | ||||||||||
Stock-based compensation expense | 208 | ||||||||||
Payments Related to Tax Withholding for Share-based Compensation | (125) | ||||||||||
Other | (2) | ||||||||||
Net income attributable to PepsiCo | 3,734 | 3,734 | |||||||||
Cash dividends declared - common | (3,034) | ||||||||||
Dividends, Preferred Stock, Cash | (1) | ||||||||||
Cash dividends declared - RSUs | (24) | ||||||||||
Currency translation: | |||||||||||
Currency translation adjustment | (2,106) | ||||||||||
Reclassification associated with Venezuela impairment charges | 111 | ||||||||||
Cash flow hedges: | |||||||||||
Reclassification of net losses to net income | 48 | 48 | |||||||||
Net derivative losses | (51) | (51) | |||||||||
Pension and retiree medical: | |||||||||||
Reclassification of net losses to net income | 114 | ||||||||||
Reclassification associated with Venezuela impairment charges, net of tax - pension | 16 | ||||||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 24 | 24 | |||||||||
Unrealized gains on securities, net of tax | (1) | (1) | |||||||||
Noncontrolling Interest Items [Abstract] | |||||||||||
Net income attributable to noncontrolling interests | 34 | 34 | |||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (23) | ||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | (1) | ||||||||||
Noncontrolling Interest-Other, net | (2) | ||||||||||
Balance, end of year, shares at Sep. 05, 2015 | 1,462 | ||||||||||
Balance, end of period at Sep. 05, 2015 | 13,579 | $ 41 | $ (184) | $ 24 | $ (27,694) | $ 4,021 | $ 49,767 | $ (12,514) | $ 13,604 | $ 118 | |
Noncontrolling Interest Items [Abstract] | |||||||||||
Stock option exercises/RSUs converted, tax benefits | $ 59 | ||||||||||
[1] | Includes total tax benefits of $59 million in 2015 and $45 million in 2014. |
Basis of Presentation
Basis of Presentation | 8 Months Ended |
Sep. 05, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 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, collectively. Our Condensed Consolidated Balance Sheet as of September 5, 2015 and Condensed Consolidated Statements of Income and Comprehensive Income for the 12 and 36 weeks ended September 5, 2015 and September 6, 2014 , and the Condensed Consolidated Statements of Cash Flows and Equity for the 36 weeks ended September 5, 2015 and September 6, 2014 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 27, 2014 , except as set forth in the following paragraph. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation. The results for the 12 and 36 weeks are not necessarily indicative of the results expected for the full year. Prior to the end of the third quarter of 2015, the financial position and results of operations of our Venezuelan snack and beverage businesses were included in our Condensed Consolidated Financial Statements. Effective as of the end of the third quarter of 2015, we do not meet the accounting criteria for control over our wholly-owned Venezuelan subsidiaries, and therefore we deconsolidated our Venezuelan subsidiaries from our Condensed Consolidated Financial Statements. See “Venezuela” below, and further unaudited information in “Our Business Risks” and “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. While our results in the United States and Canada (North America) are reported on a 12-week basis, most of our international operations report on a monthly calendar basis for which the months of June, July and August are reflected in our third 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 27, 2014 . Our Divisions As previously disclosed, effective beginning with our third quarter of 2015, we realigned certain of our reportable segments to be consistent with certain changes to our organizational structure and how the Chief Executive Officer monitors the performance of these segments. Our historical segment reporting has been retrospectively revised to reflect our current organizational structure. We are organized into six reportable segments (also referred to as divisions), as follows: 1) Frito-Lay North America (FLNA); 2) Quaker Foods North America (QFNA); 3) North America Beverages (NAB), which includes all of our beverage businesses in North America; 4) Latin America, which includes all of our beverage, food and snack businesses in Latin America; 5) Europe Sub-Saharan Africa (ESSA), which includes all of our beverage, food and snack businesses in Europe and Sub-Saharan Africa; and 6) Asia, Middle East and North Africa (AMENA), which includes all of our beverage, food and snack businesses in Asia, Middle East and North Africa. Net revenue and operating profit of each division are as follows: 12 Weeks Ended 36 Weeks Ended Net Revenue 9/5/2015 9/6/2014 9/5/2015 9/6/2014 FLNA $ 3,555 $ 3,526 $ 10,326 $ 10,132 QFNA 583 586 1,768 1,784 NAB 5,360 5,148 14,771 14,435 Latin America 2,283 2,413 5,921 6,293 ESSA 2,918 3,794 7,227 9,460 AMENA 1,632 1,751 4,458 4,631 Total division $ 16,331 $ 17,218 $ 44,471 $ 46,735 12 Weeks Ended 36 Weeks Ended Operating Profit 9/5/2015 9/6/2014 9/5/2015 9/6/2014 FLNA $ 1,085 $ 1,025 $ 3,012 $ 2,824 QFNA (a) 150 150 381 449 NAB (b) 860 753 2,146 1,854 Latin America (c) (994 ) 432 (420 ) 1,183 ESSA 398 481 860 1,111 AMENA (d) (e) (f) 199 293 802 841 Total division 1,698 3,134 6,781 8,262 Corporate Unallocated Mark-to-market net (losses)/gains (28 ) (33 ) 10 32 Restructuring and impairment charges (4 ) (15 ) (11 ) (20 ) Other (250 ) (239 ) (667 ) (724 ) $ 1,416 $ 2,847 $ 6,113 $ 7,550 (a) Operating profit for QFNA for the 36 weeks ended September 5, 2015 includes a pre-tax impairment charge of $65 million ( $50 million after-tax) associated with our Muller Quaker Dairy (MQD) joint venture investment. (b) Operating profit for NAB for 12 and 36 weeks ended September 5, 2015 includes a gain of $37 million ( $23 million after-tax) associated with the settlement of a pension-related liability from a previous acquisition. (c) Operating profit for Latin America for the 12 and 36 weeks ended September 5, 2015 includes a pre- and after-tax charge of $1.4 billion related to our change in accounting for our investments in our wholly-owned Venezuelan subsidiaries and our beverage joint venture. See “Venezuela” below. (d) Operating profit for AMENA for the 36 weeks ended September 5, 2015 includes a pre-tax gain of $39 million ( $28 million after-tax) associated with refranchising a portion of our beverage businesses in India. (e) Operating profit for AMENA for the 12 and 36 weeks ended September 5, 2015 includes a pre- and after-tax charge of $73 million related to a write-off of the recorded value of a call option to increase our holding in Tingyi-Asahi Beverages Holding Co. Ltd. (f) Operating profit for AMENA for the 12 and 36 weeks ended September 5, 2015 includes a pre- and after-tax impairment charge of $29 million associated with a joint venture in the Middle East. Total assets of each division are as follows: Total Assets 9/5/2015 12/27/2014 FLNA $ 5,430 $ 5,307 QFNA 921 982 NAB 29,223 28,665 Latin America (a) 4,432 6,283 ESSA 13,341 13,934 AMENA 5,866 5,855 Total division 59,213 61,026 Corporate (b) 10,689 9,483 $ 69,902 $ 70,509 (a) The change in total assets as of September 5, 2015 reflects a decrease of $1.7 billion related to the Venezuela impairment charges. (b) Corporate assets consist principally of certain cash and cash equivalents, short-term investments, derivative instruments, property, plant and equipment and pension and tax assets. Venezuela Prior to the end of the third quarter of 2015, the financial position and results of operations of our Venezuelan businesses were reported under highly inflationary accounting since the beginning of our 2010 fiscal year, at which time the functional currency of our Venezuelan entities, which consist of our wholly-owned subsidiaries and our beverage joint venture, was changed from the bolivar to the U.S. dollar. The Venezuelan government has maintained currency controls and a fixed exchange rate since 2003. In the last two years, the Venezuelan government has created additional exchange mechanisms and issued several exchange agreements governing the scope and applicability of each, while continuing to maintain control over the exchange rates and, to an increasingly significant extent, over the distribution of U.S. dollars under each mechanism. As of the end of the third quarter of 2015, there was a three-tiered exchange rate mechanism in Venezuela for exchanging bolivars into U.S. dollars: (1) the government-operated National Center of Foreign Commerce (CENCOEX), which has a fixed exchange rate of 6.3 bolivars per U.S. dollar, mainly intended for the import of essential goods and services by designated industry sectors; (2) the government-operated auction-based Supplementary Foreign Currency Administration System (SICAD), which is intended for certain transactions, including foreign investments, for which the rate has ranged from 10 to 14 bolivars per U.S. dollar; and (3) an open market Marginal Foreign Exchange System (SIMADI), which was trading at a rate of approximately 200 bolivars per U.S. dollar as of the end of the third quarter of 2015. These three mechanisms have become increasingly illiquid over time. We believe that significant uncertainty continues to exist regarding the exchange mechanisms in Venezuela, including the nature of transactions that are eligible to flow through CENCOEX, SICAD or SIMADI, or any other new exchange mechanism that may emerge, how any such mechanisms will operate in the future, as well as the availability of U.S. dollars under each mechanism. The amount of U.S. dollars made available to our Venezuelan entities through CENCOEX has declined significantly since 2014 and has worsened during the third quarter of 2015. In addition, our Venezuelan entities were not able to participate in SICAD auctions during 2015, as the auctions that were held were not for our industry, and have had limited access to the SIMADI market since its inception. The evolving conditions in Venezuela, including the increasingly restrictive exchange control regulations and reduced access to dollars through official currency exchange markets, have resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar, which is significantly impacting our ability to effectively manage our Venezuelan businesses, including restrictions on the ability of our Venezuelan businesses to import certain raw materials to maintain normal production and to settle U.S. dollar-denominated obligations. The exchange restrictions, combined with other regulations that have limited our ability to import certain raw materials, have also increasingly constrained our ability to make and execute operational decisions regarding our businesses in Venezuela. In addition, the inability of our Venezuelan businesses to pay dividends, which remain subject to Venezuelan government approvals, has restricted our ability to realize the earnings generated out of our Venezuelan businesses. We expect these conditions will continue for the foreseeable future. As a result of these factors, we concluded that effective as of the end of the third quarter of 2015, we do not meet the accounting criteria for control over our wholly-owned Venezuelan subsidiaries, and therefore we deconsolidated our wholly-owned Venezuelan subsidiaries effective as of the end of the third quarter of 2015. We also concluded that, effective as of the end of the third quarter of 2015, due to the above mentioned factors and other matters impacting the operation of our joint venture and the distribution of its products, we no longer have significant influence over our beverage joint venture with our franchise bottler in Venezuela, which was previously accounted for under the equity method. As a result of these conclusions, effective at the end of the third quarter of 2015, we began accounting for our investments in our wholly-owned Venezuelan subsidiaries and our joint venture using the cost method of accounting and recorded pre- and after-tax charges of $1.4 billion on our Condensed Consolidated Statement of Income to reduce the value of the cost method investments to their estimated fair values, resulting in a full impairment. The impairment charges primarily include approximately $1.2 billion related to our investments in previously consolidated Venezuelan subsidiaries and our joint venture, and $111 million related to the reclassification of cumulative translation losses. The estimated fair value of the investments in our Venezuelan entities was derived using discounted cash flow analyses, including U.S. dollar exchange and discount rate assumptions that reflect the inflation and economic uncertainty in Venezuela, and are considered non-recurring Level 3 measurements within the fair value hierarchy. During 2015 and prior to the end of the third quarter of 2015, we used the SICAD exchange rate to remeasure our net monetary assets in Venezuela, except for certain other net monetary assets that we believed qualified for the fixed exchange rate (including requests for remittance of dividends submitted to CENCOEX in certain prior years at the fixed exchange rate and payables for imports of essential goods approved by CENCOEX). In the 36 weeks ended September 5, 2015, which reflect the months of January through August, the results of our operations in Venezuela were included in our Condensed Consolidated Statement of Income using a combination of the fixed exchange and SICAD rates, as appropriate. As of the end of the third quarter of 2015, we did not consolidate the assets and liabilities of our Venezuelan subsidiaries in our Condensed Consolidated Balance Sheet. Beginning in the fourth quarter of 2015, we will not include the results of our Venezuelan businesses in our Condensed Consolidated Statement of Income. For future reporting periods, our financial results will only include revenue relating to the sales of inventory to our Venezuelan entities to the extent cash is received for those sales. Any dividends from our Venezuelan entities will be recorded as income upon receipt of the cash. See further unaudited information in “Our Business Risks” and “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 8 Months Ended |
Sep. 05, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (FASB) issued new accounting guidance that requires entities to measure inventory at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance is effective as of the beginning of our 2017 fiscal year and must be applied on a prospective basis with early adoption permitted. The guidance is not expected to have a material impact on our financial statements and we have not early adopted this standard. In April 2015, the FASB issued new accounting guidance intended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation for debt discounts. The guidance is effective as of the beginning of our 2016 fiscal year and must be applied on a retrospective basis with early adoption permitted. We early adopted the provisions of this guidance as of the beginning of our second quarter of 2015 and it did not have a material impact on our financial statements. In June 2014, the FASB issued new accounting guidance for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The guidance requires that a performance target that could be achieved after the requisite service period is treated as a performance condition that affects the vesting of the award rather than factored into the grant date fair value. The guidance is effective as of the beginning of our 2016 fiscal year and can be applied prospectively to all share-based payments granted or modified on or after the effective date with early adoption permissible. This guidance is not expected to have any impact on our financial statements and we have not early adopted this standard. In May 2014, the 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. In August 2015, the FASB issued a one-year deferral of the effective date of the new revenue standard. The new guidance will be effective as of the beginning of our 2018 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 this standard. |
Restructuring, Impairment and I
Restructuring, Impairment and Integration Charges | 8 Months Ended |
Sep. 05, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment and Integration Charges | Restructuring and Impairment 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 September 5, 2015 and September 6, 2014 , we incurred restructuring charges of $ 43 million ($ 33 million after-tax or $ 0.02 per share) and $54 million ( $39 million after-tax or $0.03 per share), respectively, in conjunction with our 2014 Productivity Plan. In the 36 weeks ended September 5, 2015 and September 6, 2014 , we incurred restructuring charges of $94 million ($ 73 million after-tax or $ 0.05 per share) and $227 million ( $167 million after-tax or $0.11 per share), respectively, in conjunction with our 2014 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses and primarily relate to severance and other employee-related costs, asset impairments (all non-cash) and contract termination costs. The majority of the restructuring accrual at September 5, 2015 is expected to be paid by the end of 2015 . A summary of our 2014 Productivity Plan charges is as follows: 12 Weeks Ended 36 Weeks Ended 9/5/2015 9/6/2014 9/5/2015 9/6/2014 FLNA $ 12 $ 9 $ 20 $ 33 QFNA 1 — 2 2 NAB 4 14 18 128 Latin America 5 10 11 17 ESSA 15 7 28 22 AMENA 3 2 7 11 Corporate 3 12 8 14 $ 43 $ 54 $ 94 $ 227 A summary of our 2014 Productivity Plan activity in 2015 is as follows: Severance and Other Employee Costs Asset Impairment Other Costs Total Liability as of December 27, 2014 $ 89 $ — $ 24 $ 113 2015 restructuring charges 37 4 53 94 Cash payments (56 ) — (59 ) (115 ) Non-cash charges (11 ) (4 ) (1 ) (16 ) Liability as of September 5, 2015 $ 59 $ — $ 17 $ 76 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 September 5, 2015 and September 6, 2014 , we incurred restructuring charges of $ 9 million ($ 8 million after-tax or $ 0.01 per share) and $14 million ( $12 million after-tax or $0.01 per share), respectively, in conjunction with our 2012 Productivity Plan. In the 36 weeks ended September 5, 2015 and September 6, 2014 , we incurred restructuring charges of $19 million ($ 16 million after-tax or $ 0.01 per share) and $31 million ( $29 million after-tax or $0.02 per share), respectively, in conjunction with our 2012 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses and primarily relate to severance and other employee-related costs, asset impairments (all non-cash) and contract termination costs. Substantially all of the restructuring accrual at September 5, 2015 is expected to be paid by the end of 2015 . A summary of our 2012 Productivity Plan charges is as follows: 12 Weeks Ended 36 Weeks Ended 9/5/2015 9/6/2014 9/5/2015 9/6/2014 FLNA $ — $ — $ — $ 2 QFNA — — — — NAB — — 1 7 Latin America (a) 5 (2 ) 5 (7 ) ESSA 3 7 9 15 AMENA — 6 1 8 Corporate 1 3 3 6 $ 9 $ 14 $ 19 $ 31 (a) Income amounts represent adjustments of previously recorded amounts. A summary of our 2012 Productivity Plan activity in 2015 is as follows: Severance and Other Employee Costs Asset Impairment Other Costs Total Liability as of December 27, 2014 $ 28 $ — $ 5 $ 33 2015 restructuring charges 5 1 13 19 Cash payments (18 ) — (16 ) (34 ) Non-cash charges (5 ) (1 ) — (6 ) Liability as of September 5, 2015 $ 10 $ — $ 2 $ 12 Other Productivity Initiatives In the 12 weeks ended September 5, 2015 , we incurred pre-tax charges of $44 million ( $29 million after-tax or $0.02 per share) related to productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans discussed above, including $5 million in Latin America, $1 million in ESSA, $8 million in AMENA and $30 million in Corporate. In the 36 weeks ended September 5, 2015 , we incurred pre-tax charges of $54 million ( $37 million after-tax or $0.02 per share) related to productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans discussed above, including $5 million in both Latin America and ESSA, $14 million in AMENA and $30 million in Corporate. These charges were recorded in selling, general and administrative expenses and primarily reflect severance and other employee-related costs. These initiatives were excluded from Items Affecting Comparability. See additional unaudited information in “Results of Operations – Division Review” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Intangible Assets
Intangible Assets | 8 Months Ended |
Sep. 05, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets A summary of our amortizable intangible assets is as follows: 9/5/2015 12/27/2014 Amortizable intangible assets, net Gross Accumulated Amortization Net Gross Accumulated Amortization Net Acquired franchise rights $ 831 $ (90 ) $ 741 $ 879 $ (89 ) $ 790 Reacquired franchise rights 106 (98 ) 8 107 (95 ) 12 Brands 1,309 (990 ) 319 1,361 (1,004 ) 357 Other identifiable intangibles 540 (296 ) 244 595 (305 ) 290 $ 2,786 $ (1,474 ) $ 1,312 $ 2,942 $ (1,493 ) $ 1,449 The change in the book value of nonamortizable intangible assets is as follows: Balance Translation Balance 12/27/2014 9/5/2015 FLNA Goodwill $ 291 $ (18 ) $ 273 Brands 27 (4 ) 23 318 (22 ) 296 QFNA Goodwill 175 — 175 NAB Goodwill 9,846 (69 ) 9,777 Reacquired franchise rights 7,193 (112 ) 7,081 Acquired franchise rights 1,538 (23 ) 1,515 Brands 108 — 108 18,685 (204 ) 18,481 Latin America (a) Goodwill 644 (97 ) 547 Brands 223 (78 ) 145 867 (175 ) 692 ESSA Goodwill 3,539 (310 ) 3,229 Reacquired franchise rights 571 (58 ) 513 Acquired franchise rights 199 (4 ) 195 Brands 2,663 (264 ) 2,399 6,972 (636 ) 6,336 AMENA Goodwill 470 (64 ) 406 Brands 117 (15 ) 102 587 (79 ) 508 Total goodwill 14,965 (558 ) 14,407 Total reacquired franchise rights 7,764 (170 ) 7,594 Total acquired franchise rights 1,737 (27 ) 1,710 Total brands 3,138 (361 ) 2,777 $ 27,604 $ (1,116 ) $ 26,488 (a) The change in 2015 includes a reduction of $41 million of nonamortizable brands arising from the Venezuela deconsolidation. |
Income Taxes
Income Taxes | 8 Months Ended |
Sep. 05, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes A rollforward of our reserves for all federal, state and foreign tax jurisdictions is as follows: 9/5/2015 12/27/2014 Balance, beginning of year $ 1,587 $ 1,268 Additions for tax positions related to the current year 180 349 Additions for tax positions from prior years 43 215 Reductions for tax positions from prior years (9 ) (81 ) Settlement payments (8 ) (70 ) Statutes of limitations expiration (30 ) (42 ) Translation and other (20 ) (52 ) Balance, end of period $ 1,743 $ 1,587 |
Stock-Based Compensation
Stock-Based Compensation | 8 Months Ended |
Sep. 05, 2015 | |
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 36 Weeks Ended 9/5/2015 9/6/2014 9/5/2015 9/6/2014 Stock-based compensation expense $ 64 $ 67 $ 208 $ 207 Restructuring and impairment charges/(credits) 1 (1 ) 2 (4 ) Total $ 65 $ 66 $ 210 $ 203 Our weighted-average Black-Scholes fair value assumptions are as follows: 36 Weeks Ended 9/5/2015 9/6/2014 Expected life 7 years 6 years Risk free interest rate 1.8 % 1.8 % Expected volatility (a) 15 % 16 % Expected dividend yield 2.7 % 2.9 % (a) Reflects movements in our stock price over the most recent historical period equivalent to the expected life. For the 12 weeks ended September 5, 2015 and September 6, 2014, our grants of stock options, restricted stock units (RSUs), performance stock units (PSUs) and PepsiCo equity performance units (PEPunits) were nominal. The following table summarizes awards granted under the terms of our 2007 Long-Term Incentive Plan: 36 Weeks Ended 9/5/2015 9/6/2014 Granted (a) Weighted-Average Grant Price Granted (a) Weighted-Average Grant Price Stock options 1.8 $ 98.76 3.3 $ 80.67 RSUs and PSUs 2.7 $ 99.15 4.2 $ 79.80 PEPunits 0.3 $ 99.25 0.4 $ 79.75 (a) In millions. |
Pension and Retiree Medical Ben
Pension and Retiree Medical Benefits | 8 Months Ended |
Sep. 05, 2015 | |
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 9/5/2015 9/6/2014 9/5/2015 9/6/2014 9/5/2015 9/6/2014 U.S. International Service cost $ 100 $ 91 $ 25 $ 24 $ 8 $ 8 Interest cost 126 134 30 33 12 14 Expected return on plan assets (195 ) (181 ) (44 ) (44 ) (6 ) (6 ) Amortization of prior service (credit)/cost (1 ) 5 — — (9 ) (5 ) Amortization of net losses/(gains) 47 40 18 14 — (2 ) 77 89 29 27 5 9 Settlement loss — — 3 3 — — Special termination benefits 4 3 — — — 1 Total expense $ 81 $ 92 $ 32 $ 30 $ 5 $ 10 36 Weeks Ended Pension Retiree Medical 9/5/2015 9/6/2014 9/5/2015 9/6/2014 9/5/2015 9/6/2014 U.S. International Service cost $ 301 $ 272 $ 70 $ 67 $ 24 $ 24 Interest cost 378 402 81 90 36 42 Expected return on plan assets (588 ) (543 ) (122 ) (120 ) (18 ) (18 ) Amortization of prior service (credit)/cost (2 ) 14 — — (27 ) (15 ) Amortization of net losses/(gains) 142 121 50 36 1 (4 ) 231 266 79 73 16 29 Settlement loss — — 3 3 — — Special termination benefits 9 11 — — 1 2 Total expense $ 240 $ 277 $ 82 $ 76 $ 17 $ 31 We regularly evaluate different opportunities to reduce risk and volatility associated with our pension and retiree medical plans. During the second quarter of 2014, we made discretionary contributions of $19 million to our international pension plans. |
Debt Obligations and Commitment
Debt Obligations and Commitments | 8 Months Ended |
Sep. 05, 2015 | |
Debt Obligations and Commitments [Abstract] | |
Debt Obligations and Commitments | Debt Obligations and Commitments In the second quarter of 2015, we issued: • $250 million of floating rate notes maturing in April 2018 ; • $500 million of 1.250% senior notes maturing in April 2018 ; • $750 million of 1.850% senior notes maturing in April 2020 ; and • $1 billion of 2.750% senior notes maturing in April 2025 . In the third quarter of 2015 , we issued: • $600 million of floating rate notes maturing in July 2017 ; • $650 million of 1.125% senior notes maturing in July 2017 ; • $800 million of 3.100% senior notes maturing in July 2022 ; • $700 million of 3.500% senior notes maturing in July 2025 ; and • $500 million of 4.600% senior notes maturing in July 2045 . The net proceeds from the issuances of the above notes were used for general corporate purposes, including the repayment of commercial paper. In the 36 weeks ended September 5, 2015, $4.1 billion of senior notes matured and were paid. In the second quarter of 2015 , we entered into a new five-year unsecured revolving credit agreement (Five-Year Credit Agreement) which expires on June 8, 2020. The Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.7225 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 2015 , we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit Agreement) which expires on June 6, 2016. The 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.7225 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 anniversary of the then effective termination date. The Five-Year Credit Agreement and the 364-Day Credit Agreement together replaced our $3.7725 billion five-year credit agreement dated as of June 9, 2014 and our $3.7725 billion 364-day credit agreement dated as of June 9, 2014. 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 September 5, 2015, there were no outstanding borrowings under the Five-Year Credit Agreement or the 364-Day Credit Agreement. As of September 5, 2015 , we had $2.2 billion of commercial paper outstanding and $1.5 billion of non-cancelable purchase commitments. For further information on our long-term contractual commitments, see Note 9 to our consolidated financial statements in our Annual Report on Form 10-K for the year-ended December 27, 2014 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 8 Months Ended |
Sep. 05, 2015 | |
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 36 Weeks Ended 9/5/2015 9/6/2014 9/5/2015 9/6/2014 Affected Line Item in the Condensed Consolidated Statement of Income Currency Translation: Venezuelan entities $ 111 $ — $ 111 $ — Venezuela impairment charges (Gains)/Losses on cash flow hedges: Foreign exchange contracts $ — $ — $ (2 ) $ — Net revenue Foreign exchange contracts (17 ) 5 (59 ) (6 ) Cost of sales Interest rate derivatives 21 98 133 112 Interest expense Commodity contracts — 5 8 24 Cost of sales Commodity contracts 2 1 8 — Selling, general and administrative expenses Net losses before tax 6 109 88 130 Tax amounts (3 ) (37 ) (40 ) (46 ) Net losses after tax $ 3 $ 72 $ 48 $ 84 Pension and retiree medical items: Amortization of prior service credit (a) $ (10 ) $ — $ (29 ) $ — Amortization of net losses (a) 65 52 193 153 Settlement loss (a) 3 3 3 3 Net losses before tax 58 55 167 156 Tax amounts (18 ) (18 ) (53 ) (51 ) Net losses after tax $ 40 $ 37 $ 114 $ 105 Venezuelan entities $ 20 $ — $ 20 $ — Venezuela impairment charges Tax amount (4 ) — (4 ) — Net losses after tax $ 16 $ — $ 16 $ — Total net losses reclassified for $ 170 $ 109 $ 289 $ 189 (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 | 8 Months Ended |
Sep. 05, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Derivatives We are exposed to market risks arising from adverse changes in: • commodity prices, affecting the cost of our raw materials and energy; • foreign exchange rates and currency restrictions; and • interest rates. 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. Ongoing productivity initiatives involve the identification and effective implementation of meaningful cost-saving opportunities or efficiencies, including the use of derivatives. Our global purchasing programs include fixed-price purchase orders and pricing agreements. 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. For cash flow hedges, the effective portion of changes in fair value is 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. We do not use derivative instruments for trading or speculative purposes. We perform assessments of our counterparty credit risk regularly, including reviewing netting agreements, if any, and 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 derivative instruments, which include swaps and futures. 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, metals and energy. Ineffectiveness for those derivatives that qualify for hedge accounting treatment was not material for all periods presented. 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 had a notional value of $1.0 billion as of September 5, 2015 and $1.2 billion as of December 27, 2014 . 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 notional value of $1.9 billion as of September 5, 2015 and $2.7 billion as of December 27, 2014 . Ineffectiveness for derivatives that qualify for hedge accounting treatment 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 material net 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 values of the interest rate derivative instruments outstanding as of September 5, 2015 and December 27, 2014 were $9.8 billion and $9.3 billion , respectively. Ineffectiveness for derivatives that qualify for cash flow hedge accounting treatment was not material for all periods presented. As of September 5, 2015 , approximately 29% of total debt, after the impact of the related interest rate derivative instruments, was exposed to variable rates, compared to approximately 25% as of December 27, 2014 . Available-for-Sale Securities Investments in debt and marketable equity 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 debt securities as of September 5, 2015 and December 27, 2014 were not material. The pre-tax unrealized gains on our investments in marketable equity securities were $109 million and $111 million as of September 5, 2015 and December 27, 2014 , 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 of 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 36 weeks ended September 5, 2015 and September 6, 2014 . Tingyi-Asahi Beverages Holding Co. Ltd. Call Option In connection with our transaction with Tingyi in the second quarter of 2012, we received a call option to increase our holding in Tingyi-Asahi Beverages Holding Co. Ltd. (TAB) to 20% that expires in the fourth quarter of 2015. During the third quarter of 2015, we concluded that the probability of exercising the option prior to its expiration was remote and, accordingly, we recorded a pre- and after-tax charge of $73 million ( $0.05 per share) to write off the recorded value of this call option. See “Items Affecting Comparability.” The write-off of this call option did not impact the recorded value of our 5% indirect equity interest in TAB, which was $538 million at the end of the third quarter. Fair Value Measurements The fair values of our financial assets and liabilities as of September 5, 2015 and December 27, 2014 are categorized as follows: 9/5/15 12/27/14 Assets (a) Liabilities (a) Assets (a) Liabilities (a) Available-for-sale securities: Equity securities (b) $ 122 $ — $ 124 $ — Debt securities (c) 5,927 — 3,167 — $ 6,049 $ — $ 3,291 $ — Short-term investments (d) $ 188 $ — $ 197 $ — Prepaid forward contracts (e) $ 24 $ — $ 26 $ — Deferred compensation (f) $ — $ 466 $ — $ 504 Derivatives designated as fair value hedging instruments: Interest rate (g) $ 165 $ — $ 140 $ — Derivatives designated as cash flow hedging instruments: Foreign exchange (h) $ 85 $ 15 $ 76 $ 12 Interest rate (g) — 280 1 117 Commodity (i) — 7 3 10 $ 85 $ 302 $ 80 $ 139 Derivatives not designated as hedging instruments: Foreign exchange (h) $ 8 $ 1 $ 12 $ 13 Interest rate (g) 55 68 57 75 Commodity (i) 12 143 18 166 $ 75 $ 212 $ 87 $ 254 Total derivatives at fair value (j) $ 325 $ 514 $ 307 $ 393 Total $ 6,586 $ 980 $ 3,821 $ 897 (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. These equity securities are classified as investments in noncontrolled affiliates. (c) Based on quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of September 5, 2015 , $4.1 billion and $1.8 billion of debt securities were classified as cash equivalents and short-term investments, respectively. As of December 27, 2014, $0.8 billion and $2.4 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 maturities of one year or less. (d) Based on the price of index funds. Categorized as a Level 1 asset. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability. (e) Based primarily on the price of our common stock. (f) Based on the fair value of investments corresponding to employees’ investment elections. (g) Based on LIBOR forward rates. As of September 5, 2015 and December 27, 2014, 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 September 5, 2015 and December 27, 2014 were immaterial. Collateral received against any of our asset positions was immaterial. The carrying amounts of our cash and cash equivalents and short-term investments approximate fair value due to their short-term maturity. The fair value of our debt obligations as of September 5, 2015 and December 27, 2014 was $33 billion and $31 billion , respectively, 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- designated Hedges Cash Flow Hedges Losses/(Gains) Recognized in Income Statement (a) Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) 9/5/2015 9/6/2014 9/5/2015 9/6/2014 9/5/2015 9/6/2014 Foreign exchange $ (28 ) $ 2 $ (52 ) $ (6 ) $ (17 ) $ 5 Interest rate (37 ) 10 35 39 21 98 Commodity 87 45 4 9 2 6 Total $ 22 $ 57 $ (13 ) $ 42 $ 6 $ 109 36 Weeks Ended Fair Value/Non- designated Hedges Cash Flow Hedges Losses/(Gains) Recognized in Income Statement (a) Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) 9/5/2015 9/6/2014 9/5/2015 9/6/2014 9/5/2015 9/6/2014 Foreign exchange $ (12 ) $ 1 $ (78 ) $ 6 $ (61 ) $ (6 ) Interest rate (30 ) 6 164 44 133 112 Commodity 154 34 8 17 16 24 Total $ 112 $ 41 $ 94 $ 67 $ 88 $ 130 (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. During the next 12 months, we expect to reclassify net gains of $38 million related to our cash flow hedges from accumulated other comprehensive loss into net income. |
Net Income Attributable to Peps
Net Income Attributable to PepsiCo per Common Share | 8 Months Ended |
Sep. 05, 2015 | |
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 9/5/2015 9/6/2014 Income Shares (a) Income Shares (a) Net income attributable to PepsiCo $ 533 (b) $ 2,008 Preferred shares: Dividends (1 ) — Redemption premium (1 ) (3 ) Net income available for PepsiCo common shareholders $ 531 1,467 $ 2,005 1,507 Basic net income attributable to PepsiCo per common share $ 0.36 $ 1.33 Net income available for PepsiCo common shareholders $ 531 1,467 $ 2,005 1,507 Dilutive securities: Stock options, RSUs, PSUs, PEPunits and Other (c) 1 15 — 17 Employee stock ownership plan (ESOP) convertible preferred stock 1 1 3 1 Diluted $ 533 1,483 $ 2,008 1,525 Diluted net income attributable to PepsiCo per common share $ 0.36 $ 1.32 36 Weeks Ended 9/5/2015 9/6/2014 Income Shares (a) Income Shares (a) Net income attributable to PepsiCo $ 3,734 (b) $ 5,202 Preferred shares: Dividends (1 ) — Redemption premium (3 ) (6 ) Net income available for PepsiCo common shareholders $ 3,730 1,475 $ 5,196 1,515 Basic net income attributable to PepsiCo per common share $ 2.53 $ 3.43 Net income available for PepsiCo common shareholders $ 3,730 1,475 $ 5,196 1,515 Dilutive securities: Stock options, RSUs, PSUs, PEPunits and Other (c) 1 16 — 16 ESOP convertible preferred stock 3 1 6 1 Diluted $ 3,734 1,492 $ 5,202 1,532 Diluted net income attributable to PepsiCo per common share $ 2.50 $ 3.40 (a) Weighted-average common shares outstanding (in millions). (b) Net income attributable to PepsiCo for the 12 and 36 weeks ended September 5, 2015 includes an after-tax charge of $1.4 billion related to our change in accounting for our investments in our wholly-owned Venezuelan subsidiaries and our beverage joint venture. (c) For the 12 weeks ended September 5, 2015 , options to purchase 1.5 million shares 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 an average exercise price of $99.25 . For the 12 weeks ended September 6, 2014 , the calculation of diluted earnings per common share was unadjusted because there were no out-of-the-money options during the period. For the 36 weeks ended September 5, 2015 and September 6, 2014 , options to purchase 1.6 million shares and 0.1 million shares, respectively, 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 $99.25 and $82.25 for the 36 weeks ended September 5, 2015 and September 6, 2014 , respectively. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 8 Months Ended |
Sep. 05, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Reporting Information, By Segment | Net revenue and operating profit of each division are as follows: 12 Weeks Ended 36 Weeks Ended Net Revenue 9/5/2015 9/6/2014 9/5/2015 9/6/2014 FLNA $ 3,555 $ 3,526 $ 10,326 $ 10,132 QFNA 583 586 1,768 1,784 NAB 5,360 5,148 14,771 14,435 Latin America 2,283 2,413 5,921 6,293 ESSA 2,918 3,794 7,227 9,460 AMENA 1,632 1,751 4,458 4,631 Total division $ 16,331 $ 17,218 $ 44,471 $ 46,735 12 Weeks Ended 36 Weeks Ended Operating Profit 9/5/2015 9/6/2014 9/5/2015 9/6/2014 FLNA $ 1,085 $ 1,025 $ 3,012 $ 2,824 QFNA (a) 150 150 381 449 NAB (b) 860 753 2,146 1,854 Latin America (c) (994 ) 432 (420 ) 1,183 ESSA 398 481 860 1,111 AMENA (d) (e) (f) 199 293 802 841 Total division 1,698 3,134 6,781 8,262 Corporate Unallocated Mark-to-market net (losses)/gains (28 ) (33 ) 10 32 Restructuring and impairment charges (4 ) (15 ) (11 ) (20 ) Other (250 ) (239 ) (667 ) (724 ) $ 1,416 $ 2,847 $ 6,113 $ 7,550 |
Segment Reporting Information By Total Assets | Total assets of each division are as follows: Total Assets 9/5/2015 12/27/2014 FLNA $ 5,430 $ 5,307 QFNA 921 982 NAB 29,223 28,665 Latin America (a) 4,432 6,283 ESSA 13,341 13,934 AMENA 5,866 5,855 Total division 59,213 61,026 Corporate (b) 10,689 9,483 $ 69,902 $ 70,509 (a) The change in total assets as of September 5, 2015 reflects a decrease of $1.7 billion related to the Venezuela impairment charges. (b) Corporate assets consist principally of certain cash and cash equivalents, short-term investments, derivative instruments, property, plant and equipment and pension and tax assets. |
Restructuring, Impairment and20
Restructuring, Impairment and Integration Charges Restructuring, Impairment and Integration Charges (Tables) | 8 Months Ended |
Sep. 05, 2015 | |
Restructuring and Related Activities [Abstract] | |
2014 Schedule of Restructuring Related Costs [Table Text Block] | A summary of our 2014 Productivity Plan charges is as follows: 12 Weeks Ended 36 Weeks Ended 9/5/2015 9/6/2014 9/5/2015 9/6/2014 FLNA $ 12 $ 9 $ 20 $ 33 QFNA 1 — 2 2 NAB 4 14 18 128 Latin America 5 10 11 17 ESSA 15 7 28 22 AMENA 3 2 7 11 Corporate 3 12 8 14 $ 43 $ 54 $ 94 $ 227 |
Summary Of 2014 Productivity Plan Activity [Table Text Block] | A summary of our 2014 Productivity Plan activity in 2015 is as follows: Severance and Other Employee Costs Asset Impairment Other Costs Total Liability as of December 27, 2014 $ 89 $ — $ 24 $ 113 2015 restructuring charges 37 4 53 94 Cash payments (56 ) — (59 ) (115 ) Non-cash charges (11 ) (4 ) (1 ) (16 ) Liability as of September 5, 2015 $ 59 $ — $ 17 $ 76 |
Restructuring and Related Costs [Table Text Block] | A summary of our 2012 Productivity Plan charges is as follows: 12 Weeks Ended 36 Weeks Ended 9/5/2015 9/6/2014 9/5/2015 9/6/2014 FLNA $ — $ — $ — $ 2 QFNA — — — — NAB — — 1 7 Latin America (a) 5 (2 ) 5 (7 ) ESSA 3 7 9 15 AMENA — 6 1 8 Corporate 1 3 3 6 $ 9 $ 14 $ 19 $ 31 (a) Income amounts represent adjustments of previously recorded amounts. |
Summary Of Productivity Plan Activity [Table Text Block] | A summary of our 2012 Productivity Plan activity in 2015 is as follows: Severance and Other Employee Costs Asset Impairment Other Costs Total Liability as of December 27, 2014 $ 28 $ — $ 5 $ 33 2015 restructuring charges 5 1 13 19 Cash payments (18 ) — (16 ) (34 ) Non-cash charges (5 ) (1 ) — (6 ) Liability as of September 5, 2015 $ 10 $ — $ 2 $ 12 Other Productivity Initiatives In the 12 weeks ended September 5, 2015 , we incurred pre-tax charges of $44 million ( $29 million after-tax or $0.02 per share) related to productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans discussed above, including $5 million in Latin America, $1 million in ESSA, $8 million in AMENA and $30 million in Corporate. In the 36 weeks ended September 5, 2015 , we incurred pre-tax charges of $54 million ( $37 million after-tax or $0.02 per share) related to productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans discussed above, including $5 million in both Latin America and ESSA, $14 million in AMENA and $30 million in Corporate. These charges were recorded in selling, general and administrative expenses and primarily reflect severance and other employee-related costs. These initiatives were excluded from Items Affecting Comparability. See additional unaudited information in “Results of Operations – Division Review” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 8 Months Ended |
Sep. 05, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | A summary of our amortizable intangible assets is as follows: 9/5/2015 12/27/2014 Amortizable intangible assets, net Gross Accumulated Amortization Net Gross Accumulated Amortization Net Acquired franchise rights $ 831 $ (90 ) $ 741 $ 879 $ (89 ) $ 790 Reacquired franchise rights 106 (98 ) 8 107 (95 ) 12 Brands 1,309 (990 ) 319 1,361 (1,004 ) 357 Other identifiable intangibles 540 (296 ) 244 595 (305 ) 290 $ 2,786 $ (1,474 ) $ 1,312 $ 2,942 $ (1,493 ) $ 1,449 |
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 12/27/2014 9/5/2015 FLNA Goodwill $ 291 $ (18 ) $ 273 Brands 27 (4 ) 23 318 (22 ) 296 QFNA Goodwill 175 — 175 NAB Goodwill 9,846 (69 ) 9,777 Reacquired franchise rights 7,193 (112 ) 7,081 Acquired franchise rights 1,538 (23 ) 1,515 Brands 108 — 108 18,685 (204 ) 18,481 Latin America (a) Goodwill 644 (97 ) 547 Brands 223 (78 ) 145 867 (175 ) 692 ESSA Goodwill 3,539 (310 ) 3,229 Reacquired franchise rights 571 (58 ) 513 Acquired franchise rights 199 (4 ) 195 Brands 2,663 (264 ) 2,399 6,972 (636 ) 6,336 AMENA Goodwill 470 (64 ) 406 Brands 117 (15 ) 102 587 (79 ) 508 Total goodwill 14,965 (558 ) 14,407 Total reacquired franchise rights 7,764 (170 ) 7,594 Total acquired franchise rights 1,737 (27 ) 1,710 Total brands 3,138 (361 ) 2,777 $ 27,604 $ (1,116 ) $ 26,488 (a) The change in 2015 includes a reduction of $41 million of nonamortizable brands arising from the Venezuela deconsolidation. |
Income Taxes (Tables)
Income Taxes (Tables) | 8 Months Ended |
Sep. 05, 2015 | |
Income Tax Disclosure [Abstract] | |
Reserves Rollforward | A rollforward of our reserves for all federal, state and foreign tax jurisdictions is as follows: 9/5/2015 12/27/2014 Balance, beginning of year $ 1,587 $ 1,268 Additions for tax positions related to the current year 180 349 Additions for tax positions from prior years 43 215 Reductions for tax positions from prior years (9 ) (81 ) Settlement payments (8 ) (70 ) Statutes of limitations expiration (30 ) (42 ) Translation and other (20 ) (52 ) Balance, end of period $ 1,743 $ 1,587 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 8 Months Ended |
Sep. 05, 2015 | |
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 36 Weeks Ended 9/5/2015 9/6/2014 9/5/2015 9/6/2014 Stock-based compensation expense $ 64 $ 67 $ 208 $ 207 Restructuring and impairment charges/(credits) 1 (1 ) 2 (4 ) Total $ 65 $ 66 $ 210 $ 203 |
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: 36 Weeks Ended 9/5/2015 9/6/2014 Granted (a) Weighted-Average Grant Price Granted (a) Weighted-Average Grant Price Stock options 1.8 $ 98.76 3.3 $ 80.67 RSUs and PSUs 2.7 $ 99.15 4.2 $ 79.80 PEPunits 0.3 $ 99.25 0.4 $ 79.75 (a) In millions. |
Schedule Of Weighted-Average Black-Scholes Fair Value Assumptions | Our weighted-average Black-Scholes fair value assumptions are as follows: 36 Weeks Ended 9/5/2015 9/6/2014 Expected life 7 years 6 years Risk free interest rate 1.8 % 1.8 % Expected volatility (a) 15 % 16 % Expected dividend yield 2.7 % 2.9 % (a) Reflects movements in our stock price over the most recent historical period equivalent to the expected life. |
Pension and Retiree Medical B24
Pension and Retiree Medical Benefits (Tables) | 8 Months Ended |
Sep. 05, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The components of net periodic benefit cost for pension and retiree medical plans are as follows: 12 Weeks Ended Pension Retiree Medical 9/5/2015 9/6/2014 9/5/2015 9/6/2014 9/5/2015 9/6/2014 U.S. International Service cost $ 100 $ 91 $ 25 $ 24 $ 8 $ 8 Interest cost 126 134 30 33 12 14 Expected return on plan assets (195 ) (181 ) (44 ) (44 ) (6 ) (6 ) Amortization of prior service (credit)/cost (1 ) 5 — — (9 ) (5 ) Amortization of net losses/(gains) 47 40 18 14 — (2 ) 77 89 29 27 5 9 Settlement loss — — 3 3 — — Special termination benefits 4 3 — — — 1 Total expense $ 81 $ 92 $ 32 $ 30 $ 5 $ 10 36 Weeks Ended Pension Retiree Medical 9/5/2015 9/6/2014 9/5/2015 9/6/2014 9/5/2015 9/6/2014 U.S. International Service cost $ 301 $ 272 $ 70 $ 67 $ 24 $ 24 Interest cost 378 402 81 90 36 42 Expected return on plan assets (588 ) (543 ) (122 ) (120 ) (18 ) (18 ) Amortization of prior service (credit)/cost (2 ) 14 — — (27 ) (15 ) Amortization of net losses/(gains) 142 121 50 36 1 (4 ) 231 266 79 73 16 29 Settlement loss — — 3 3 — — Special termination benefits 9 11 — — 1 2 Total expense $ 240 $ 277 $ 82 $ 76 $ 17 $ 31 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Loss (Tables) | 8 Months Ended |
Sep. 05, 2015 | |
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 36 Weeks Ended 9/5/2015 9/6/2014 9/5/2015 9/6/2014 Affected Line Item in the Condensed Consolidated Statement of Income Currency Translation: Venezuelan entities $ 111 $ — $ 111 $ — Venezuela impairment charges (Gains)/Losses on cash flow hedges: Foreign exchange contracts $ — $ — $ (2 ) $ — Net revenue Foreign exchange contracts (17 ) 5 (59 ) (6 ) Cost of sales Interest rate derivatives 21 98 133 112 Interest expense Commodity contracts — 5 8 24 Cost of sales Commodity contracts 2 1 8 — Selling, general and administrative expenses Net losses before tax 6 109 88 130 Tax amounts (3 ) (37 ) (40 ) (46 ) Net losses after tax $ 3 $ 72 $ 48 $ 84 Pension and retiree medical items: Amortization of prior service credit (a) $ (10 ) $ — $ (29 ) $ — Amortization of net losses (a) 65 52 193 153 Settlement loss (a) 3 3 3 3 Net losses before tax 58 55 167 156 Tax amounts (18 ) (18 ) (53 ) (51 ) Net losses after tax $ 40 $ 37 $ 114 $ 105 Venezuelan entities $ 20 $ — $ 20 $ — Venezuela impairment charges Tax amount (4 ) — (4 ) — Net losses after tax $ 16 $ — $ 16 $ — Total net losses reclassified for $ 170 $ 109 $ 289 $ 189 (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) | 8 Months Ended |
Sep. 05, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Financial Assets and Liabilities | Fair Value Measurements The fair values of our financial assets and liabilities as of September 5, 2015 and December 27, 2014 are categorized as follows: 9/5/15 12/27/14 Assets (a) Liabilities (a) Assets (a) Liabilities (a) Available-for-sale securities: Equity securities (b) $ 122 $ — $ 124 $ — Debt securities (c) 5,927 — 3,167 — $ 6,049 $ — $ 3,291 $ — Short-term investments (d) $ 188 $ — $ 197 $ — Prepaid forward contracts (e) $ 24 $ — $ 26 $ — Deferred compensation (f) $ — $ 466 $ — $ 504 Derivatives designated as fair value hedging instruments: Interest rate (g) $ 165 $ — $ 140 $ — Derivatives designated as cash flow hedging instruments: Foreign exchange (h) $ 85 $ 15 $ 76 $ 12 Interest rate (g) — 280 1 117 Commodity (i) — 7 3 10 $ 85 $ 302 $ 80 $ 139 Derivatives not designated as hedging instruments: Foreign exchange (h) $ 8 $ 1 $ 12 $ 13 Interest rate (g) 55 68 57 75 Commodity (i) 12 143 18 166 $ 75 $ 212 $ 87 $ 254 Total derivatives at fair value (j) $ 325 $ 514 $ 307 $ 393 Total $ 6,586 $ 980 $ 3,821 $ 897 (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. These equity securities are classified as investments in noncontrolled affiliates. (c) Based on quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of September 5, 2015 , $4.1 billion and $1.8 billion of debt securities were classified as cash equivalents and short-term investments, respectively. As of December 27, 2014, $0.8 billion and $2.4 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 maturities of one year or less. (d) Based on the price of index funds. Categorized as a Level 1 asset. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability. (e) Based primarily on the price of our common stock. (f) Based on the fair value of investments corresponding to employees’ investment elections. (g) Based on LIBOR forward rates. As of September 5, 2015 and December 27, 2014, 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 September 5, 2015 and December 27, 2014 were immaterial. Collateral received against any of our asset positions was immaterial. The carrying amounts of our cash and cash equivalents and short-term investments approximate fair value due to their short-term maturity. The fair value of our debt obligations as of September 5, 2015 and December 27, 2014 was $33 billion and $31 billion , respectively, based upon prices of similar instruments in the marketplace. |
Effective Portion Of Pre-Tax (Gains)/Losses On Derivative Instruments | Pre-tax losses/(gains) on our derivative instruments are categorized as follows: 12 Weeks Ended Fair Value/Non- designated Hedges Cash Flow Hedges Losses/(Gains) Recognized in Income Statement (a) Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) 9/5/2015 9/6/2014 9/5/2015 9/6/2014 9/5/2015 9/6/2014 Foreign exchange $ (28 ) $ 2 $ (52 ) $ (6 ) $ (17 ) $ 5 Interest rate (37 ) 10 35 39 21 98 Commodity 87 45 4 9 2 6 Total $ 22 $ 57 $ (13 ) $ 42 $ 6 $ 109 36 Weeks Ended Fair Value/Non- designated Hedges Cash Flow Hedges Losses/(Gains) Recognized in Income Statement (a) Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) 9/5/2015 9/6/2014 9/5/2015 9/6/2014 9/5/2015 9/6/2014 Foreign exchange $ (12 ) $ 1 $ (78 ) $ 6 $ (61 ) $ (6 ) Interest rate (30 ) 6 164 44 133 112 Commodity 154 34 8 17 16 24 Total $ 112 $ 41 $ 94 $ 67 $ 88 $ 130 (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. During the next 12 months, we expect to reclassify net gains of $38 million related to our cash flow hedges from accumulated other comprehensive loss into net income. |
Net Income Attributable to Pe27
Net Income Attributable to PepsiCo per Common Share (Tables) | 8 Months Ended |
Sep. 05, 2015 | |
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 9/5/2015 9/6/2014 Income Shares (a) Income Shares (a) Net income attributable to PepsiCo $ 533 (b) $ 2,008 Preferred shares: Dividends (1 ) — Redemption premium (1 ) (3 ) Net income available for PepsiCo common shareholders $ 531 1,467 $ 2,005 1,507 Basic net income attributable to PepsiCo per common share $ 0.36 $ 1.33 Net income available for PepsiCo common shareholders $ 531 1,467 $ 2,005 1,507 Dilutive securities: Stock options, RSUs, PSUs, PEPunits and Other (c) 1 15 — 17 Employee stock ownership plan (ESOP) convertible preferred stock 1 1 3 1 Diluted $ 533 1,483 $ 2,008 1,525 Diluted net income attributable to PepsiCo per common share $ 0.36 $ 1.32 36 Weeks Ended 9/5/2015 9/6/2014 Income Shares (a) Income Shares (a) Net income attributable to PepsiCo $ 3,734 (b) $ 5,202 Preferred shares: Dividends (1 ) — Redemption premium (3 ) (6 ) Net income available for PepsiCo common shareholders $ 3,730 1,475 $ 5,196 1,515 Basic net income attributable to PepsiCo per common share $ 2.53 $ 3.43 Net income available for PepsiCo common shareholders $ 3,730 1,475 $ 5,196 1,515 Dilutive securities: Stock options, RSUs, PSUs, PEPunits and Other (c) 1 16 — 16 ESOP convertible preferred stock 3 1 6 1 Diluted $ 3,734 1,492 $ 5,202 1,532 Diluted net income attributable to PepsiCo per common share $ 2.50 $ 3.40 (a) Weighted-average common shares outstanding (in millions). (b) Net income attributable to PepsiCo for the 12 and 36 weeks ended September 5, 2015 includes an after-tax charge of $1.4 billion related to our change in accounting for our investments in our wholly-owned Venezuelan subsidiaries and our beverage joint venture. (c) For the 12 weeks ended September 5, 2015 , options to purchase 1.5 million shares 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 an average exercise price of $99.25 . For the 12 weeks ended September 6, 2014 , the calculation of diluted earnings per common share was unadjusted because there were no out-of-the-money options during the period. For the 36 weeks ended September 5, 2015 and September 6, 2014 , options to purchase 1.6 million shares and 0.1 million shares, respectively, 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 $99.25 and $82.25 for the 36 weeks ended September 5, 2015 and September 6, 2014 , respectively. |
Segment Reporting Information b
Segment Reporting Information by Net Revenue and Operating Profit (Detail) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | |
Segment Reporting Information [Line Items] | ||||
Operating Profit | $ 1,416 | $ 2,847 | $ 6,113 | $ 7,550 |
Net Revenue | 16,331 | 17,218 | 44,471 | 46,735 |
Venezuela impairment charges | 1,359 | 1,359 | 0 | |
Tingyi Charge | 73 | 73 | 0 | |
FLNA | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 1,085 | 1,025 | 3,012 | 2,824 |
Net Revenue | 3,555 | 3,526 | 10,326 | 10,132 |
QFNA | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 150 | 150 | 381 | 449 |
Net Revenue | 583 | 586 | 1,768 | 1,784 |
Asset Impairment Charges | 65 | |||
Asset Impairment Charges, After Tax | 50 | |||
North America Beverages [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 860 | 753 | 2,146 | 1,854 |
Net Revenue | 5,360 | 5,148 | 14,771 | 14,435 |
Pension-related settlement | 37 | 37 | ||
Pension-related settlement, after-tax | 23 | 23 | ||
Latin America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | (994) | 432 | (420) | 1,183 |
Net Revenue | 2,283 | 2,413 | 5,921 | 6,293 |
Venezuela impairment charges | 1,400 | 1,400 | ||
Europe Sub-Saharan Africa | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 398 | 481 | 860 | 1,111 |
Net Revenue | 2,918 | 3,794 | 7,227 | 9,460 |
Asia Middle East and North Africa | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 199 | 293 | 802 | 841 |
Net Revenue | 1,632 | 1,751 | 4,458 | 4,631 |
Asset Impairment Charges | 29 | 29 | ||
Significant Acquisitions and Disposals, Gain/(Loss) on Sale of Disposal, Pretax | 39 | 39 | ||
Tingyi Charge | 73 | 73 | ||
Total Division | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 1,698 | 3,134 | 6,781 | 8,262 |
Net Revenue | 16,331 | 17,218 | 44,471 | 46,735 |
Corporate Unallocated Net Impact Of Mark To Market On Commodity Hedges | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | (28) | (33) | 10 | 32 |
Corporate Unallocated Restructuring And Impairment Charges | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | (4) | (15) | (11) | (20) |
Corporate Unallocated Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | (250) | $ (239) | (667) | $ (724) |
Pepsico Asia Middle East And Africa [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Significant Acquisitions and Disposals, Gain/(Loss) on Sale of Disposal, After Tax | $ 28 | $ 28 |
Segment Reporting Information29
Segment Reporting Information by Total Assets (Detail) - USD ($) $ in Millions | 8 Months Ended | ||
Sep. 05, 2015 | Dec. 27, 2014 | ||
Segment Reporting Information [Line Items] | |||
change in assets related to venezuela deconsolidation [Table Text Block] | 1.7 | ||
Assets | $ 69,902 | $ 70,509 | |
FLNA | |||
Segment Reporting Information [Line Items] | |||
Assets | 5,430 | 5,307 | |
QFNA | |||
Segment Reporting Information [Line Items] | |||
Assets | 921 | 982 | |
Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,432 | 6,283 | |
North America Beverages [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 29,223 | 28,665 | |
Europe Sub-Saharan Africa | |||
Segment Reporting Information [Line Items] | |||
Assets | 13,341 | 13,934 | |
Asia Middle East and North Africa | |||
Segment Reporting Information [Line Items] | |||
Assets | 5,866 | 5,855 | |
Total Division | |||
Segment Reporting Information [Line Items] | |||
Assets | 59,213 | 61,026 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 10,689 | 9,483 |
Assets, Total [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 69,902 | $ 70,509 | |
[1] | The change in total assets as of September 5, 2015 reflects a decrease of $1.7 billion related to the Venezuela impairment charges.(b)Corporate assets consist principally of certain cash and cash equivalents, short-term investment |
Basis of Presentation and Our D
Basis of Presentation and Our Divisions Venezuela (Details) - USD ($) $ in Billions | 3 Months Ended | 8 Months Ended |
Sep. 05, 2015 | Sep. 05, 2015 | |
Investments in previously consolidated Venezuelan subsidiaries [Line Items] | ||
Portion of Venezuela charge related to our investments in previously consolidated Venezuelan subsidiaries and our joint venture | $ 1.2 | $ 1.2 |
Restructuring, Impairment and31
Restructuring, Impairment and Integration Charges 2014 Productivity Plan Charges (Details) - 2014 Productivity Plan - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | $ 43 | $ 54 | $ 94 | $ 227 |
FLNA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 12 | 9 | 20 | 33 |
QFNA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 1 | 0 | 2 | 2 |
North America Beverages [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 4 | 14 | 18 | 128 |
Latin America [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 5 | 10 | 11 | 17 |
Europe Sub-Saharan Africa | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 15 | 7 | 28 | 22 |
Asia Middle East and North Africa | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 3 | 2 | 7 | 11 |
Corporate Unallocated [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | $ 3 | $ 12 | $ 8 | $ 14 |
Restructuring, Impairment and32
Restructuring, Impairment and Integration Charges 2014 Productivity Plan Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Cash payments for restructuring charges | $ (149) | $ (169) | ||
Restructuring Charges After Tax | $ 29 | $ 37 | ||
Restructuring, Settlement and Impairment Provisions, Net of Tax, Per Share Amount | $ 0.02 | $ 0.02 | ||
2014 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Period Start | $ 113 | |||
Restructuring, Settlement and Impairment Provisions | $ 43 | $ 54 | 94 | 227 |
Cash payments for restructuring charges | (115) | |||
Restructuring Reserve, Settled without Cash | (16) | |||
Restructuring Reserve - Period End | 76 | 76 | ||
Restructuring Charges After Tax | $ 33 | $ 39 | $ 73 | $ 167 |
Restructuring, Settlement and Impairment Provisions, Net of Tax, Per Share Amount | $ 0.02 | $ 0.03 | $ 0.05 | $ 0.11 |
Employee Severance [Member] | 2014 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Period Start | $ 89 | |||
Restructuring, Settlement and Impairment Provisions | 37 | |||
Cash payments for restructuring charges | (56) | |||
Restructuring Reserve, Settled without Cash | (11) | |||
Restructuring Reserve - Period End | $ 59 | 59 | ||
Asset Impairment [Member] | 2014 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Period Start | 0 | |||
Restructuring, Settlement and Impairment Provisions | 4 | |||
Cash payments for restructuring charges | 0 | |||
Restructuring Reserve, Settled without Cash | (4) | |||
Restructuring Reserve - Period End | 0 | 0 | ||
Other Costs [Member] | 2014 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Period Start | 24 | |||
Restructuring, Settlement and Impairment Provisions | 53 | |||
Cash payments for restructuring charges | (59) | |||
Restructuring Reserve, Settled without Cash | (1) | |||
Restructuring Reserve - Period End | $ 17 | $ 17 |
Restructuring, Impairment and33
Restructuring, Impairment and Integration Charges 2012 Productivity Plan Charges (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions, Net of Tax, Per Share Amount | $ 0.02 | $ 0.02 | ||
Payments for Restructuring | $ 149 | $ 169 | ||
2012 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | $ 9 | $ 14 | $ 19 | $ 31 |
Restructuring, Settlement and Impairment Provisions, Net of Tax, Per Share Amount | $ 0.01 | $ 0.01 | $ 0.02 | |
Payments for Restructuring | $ 34 | |||
2012 Productivity Plan | FLNA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 0 | $ 0 | 0 | $ 2 |
2012 Productivity Plan | QFNA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 0 | 0 | 0 | 0 |
2012 Productivity Plan | Latin America [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 5 | (2) | 5 | (7) |
2012 Productivity Plan | North America Beverages [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 0 | 0 | 1 | 7 |
2012 Productivity Plan | Europe Sub-Saharan Africa | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 3 | 7 | 9 | 15 |
2012 Productivity Plan | Asia Middle East and North Africa | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 0 | 6 | 1 | 8 |
2012 Productivity Plan | Corporate Unallocated Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | $ 1 | $ 3 | $ 3 | $ 6 |
Restructuring, Impairment and34
Restructuring, Impairment and Integration Charges 2012 Productivity Plan Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges After Tax | $ 29 | $ 37 | ||
Cash payments for restructuring charges | (149) | $ (169) | ||
2012 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Period Start | 33 | |||
Restructuring, Settlement and Impairment Provisions | 9 | $ 14 | 19 | 31 |
Restructuring Charges After Tax | 8 | $ 12 | 16 | $ 29 |
Cash payments for restructuring charges | (34) | |||
Restructuring Reserve, Settled without Cash | (6) | |||
Restructuring Reserve - Period End | 12 | 12 | ||
Employee Severance [Member] | 2012 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Period Start | 28 | |||
Restructuring, Settlement and Impairment Provisions | 5 | |||
Cash payments for restructuring charges | (18) | |||
Restructuring Reserve, Settled without Cash | (5) | |||
Restructuring Reserve - Period End | 10 | 10 | ||
Asset Impairment [Member] | 2012 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Period Start | 0 | |||
Restructuring, Settlement and Impairment Provisions | 1 | |||
Cash payments for restructuring charges | 0 | |||
Restructuring Reserve, Settled without Cash | (1) | |||
Restructuring Reserve - Period End | 0 | 0 | ||
Other Costs [Member] | 2012 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Period Start | 5 | |||
Restructuring, Settlement and Impairment Provisions | 13 | |||
Cash payments for restructuring charges | (16) | |||
Restructuring Reserve, Settled without Cash | 0 | |||
Restructuring Reserve - Period End | $ 2 | $ 2 |
Restructuring, Impairment and35
Restructuring, Impairment and Integration Charges Other Productivity Initiatives (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 8 Months Ended |
Sep. 05, 2015 | Sep. 05, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring Costs | $ 44 | $ 54 |
Restructuring Charges After Tax | $ 29 | $ 37 |
Restructuring, Settlement and Impairment Provisions, Net of Tax, Per Share Amount | $ 0.02 | $ 0.02 |
Europe Sub-Saharan Africa [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring Costs | $ 1 | $ 5 |
Latin America [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring Costs | 5 | 5 |
Asia Middle East and North Africa | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring Costs | 8 | 14 |
Corporate, Non-Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring Costs | $ 30 | $ 30 |
Intangible Assets Amortizable I
Intangible Assets Amortizable Intangible Assets, net (Detail) - USD ($) $ in Millions | Sep. 05, 2015 | Dec. 27, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
nonamortizable brands related to Venezuela | $ 41 | |
Finite-Lived Intangible Assets, Gross | 2,786 | $ 2,942 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,474) | (1,493) |
Amortizable Intangible Assets, net | 1,312 | 1,449 |
Other Identifiable Intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 540 | 595 |
Finite-Lived Intangible Assets, Accumulated Amortization | (296) | (305) |
Amortizable Intangible Assets, net | 244 | 290 |
Brands | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,309 | 1,361 |
Finite-Lived Intangible Assets, Accumulated Amortization | (990) | (1,004) |
Amortizable Intangible Assets, net | 319 | 357 |
Reacquired Franchise Rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 106 | 107 |
Finite-Lived Intangible Assets, Accumulated Amortization | (98) | (95) |
Amortizable Intangible Assets, net | 8 | 12 |
Acquired Franchise Rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 831 | 879 |
Finite-Lived Intangible Assets, Accumulated Amortization | (90) | (89) |
Amortizable Intangible Assets, net | $ 741 | $ 790 |
Change in Book Value of Nonamor
Change in Book Value of Nonamortizable Intangible Assets (Detail) $ in Millions | 8 Months Ended |
Sep. 05, 2015USD ($) | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | $ 27,604 |
Translation and Other | (1,116) |
Balance, End | 26,488 |
FLNA | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 318 |
Translation and Other | (22) |
Balance, End | 296 |
Latin America [Member] | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 867 |
Translation and Other | (175) |
Balance, End | 692 |
North America Beverages [Member] | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 18,685 |
Translation and Other | (204) |
Balance, End | 18,481 |
Europe Sub-Saharan Africa | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 6,972 |
Translation and Other | (636) |
Balance, End | 6,336 |
Asia Middle East and North Africa | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 587 |
Translation and Other | (79) |
Balance, End | 508 |
Goodwill | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 14,965 |
Translation and Other | (558) |
Balance, End | 14,407 |
Goodwill | FLNA | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 291 |
Translation and Other | (18) |
Balance, End | 273 |
Goodwill | QFNA | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 175 |
Translation and Other | 0 |
Balance, End | 175 |
Goodwill | Latin America [Member] | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 644 |
Translation and Other | (97) |
Balance, End | 547 |
Goodwill | North America Beverages [Member] | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 9,846 |
Translation and Other | (69) |
Balance, End | 9,777 |
Goodwill | Europe Sub-Saharan Africa | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 3,539 |
Translation and Other | (310) |
Balance, End | 3,229 |
Goodwill | Asia Middle East and North Africa | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 470 |
Translation and Other | (64) |
Balance, End | 406 |
Brands | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 3,138 |
Translation and Other | (361) |
Balance, End | 2,777 |
Brands | FLNA | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 27 |
Translation and Other | (4) |
Balance, End | 23 |
Brands | Latin America [Member] | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 223 |
Translation and Other | (78) |
Balance, End | 145 |
Brands | North America Beverages [Member] | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 108 |
Balance, End | 108 |
Brands | Europe Sub-Saharan Africa | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 2,663 |
Translation and Other | (264) |
Balance, End | 2,399 |
Brands | Asia Middle East and North Africa | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 117 |
Translation and Other | (15) |
Balance, End | 102 |
Reacquired Franchise Rights | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 7,764 |
Translation and Other | (170) |
Balance, End | 7,594 |
Reacquired Franchise Rights | North America Beverages [Member] | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 7,193 |
Translation and Other | (112) |
Balance, End | 7,081 |
Reacquired Franchise Rights | Europe Sub-Saharan Africa | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 571 |
Translation and Other | (58) |
Balance, End | 513 |
Acquired franchise rights | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 1,737 |
Translation and Other | (27) |
Balance, End | 1,710 |
Acquired franchise rights | North America Beverages [Member] | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 1,538 |
Translation and Other | (23) |
Balance, End | 1,515 |
Acquired franchise rights | Europe Sub-Saharan Africa | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance, Beginning | 199 |
Translation and Other | (4) |
Balance, End | $ 195 |
Rollforward of Reserves for Fed
Rollforward of Reserves for Federal State and Foreign Tax Jurisdictions (Detail) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended |
Sep. 05, 2015 | Dec. 27, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 1,587 | $ 1,268 |
Additions for tax positions related to the current year | 180 | 349 |
Additions for tax positions from prior years | 43 | 215 |
Reductions for tax positions from prior years | (9) | (81) |
Settlement payments | (8) | (70) |
Statute of limitations expiration | (30) | (42) |
Translation and other | (20) | (52) |
Balance, end of period | $ 1,743 | $ 1,587 |
Weighted Average Black Scholes
Weighted Average Black Scholes Fair Value Assumptions (Detail) | 8 Months Ended | ||
Sep. 05, 2015 | Sep. 06, 2014 | ||
Black Scholes valuation assumptions [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years | 6 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.80% | 1.80% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | [1] | 15.00% | 16.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 2.70% | 2.90% | |
[1] | Reflects movements in our stock price over the most recent historical period equivalent to the expected life. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 8 Months Ended | |||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 64 | $ 67 | $ 208 | $ 207 | |
Recognized stock-based compensation expense | 65 | 66 | $ 210 | $ 203 | |
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 | $ 98.76 | $ 80.67 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | [1] | 1.8 | 3.3 | ||
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 | $ 99.15 | $ 79.80 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | [1] | 2.7 | 4.2 | ||
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 | $ 99.25 | $ 79.75 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | [1] | 0.3 | 0.4 | ||
Share-based Compensation [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restructuring, Settlement and Impairment Provisions | $ 1 | $ (1) | $ 2 | $ (4) | |
[1] | In millions. |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost for Pension and Retiree Medical Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | |||
Sep. 05, 2015 | Sep. 06, 2014 | Jun. 14, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Contributions by Employer | $ 19 | ||||
U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 100 | $ 91 | $ 301 | $ 272 | |
Interest cost | 126 | 134 | 378 | 402 | |
Expected return on plan assets | (195) | (181) | (588) | (543) | |
Amortization of prior service (credit)/cost | (1) | 5 | (2) | 14 | |
Amortization of net losses/(gains) | 47 | 40 | 142 | 121 | |
Gross total | 77 | 89 | 231 | 266 | |
Special termination benefits | 4 | 3 | 9 | 11 | |
Total expense | 81 | 92 | 240 | 277 | |
International | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 25 | 24 | 70 | 67 | |
Interest cost | 30 | 33 | 81 | 90 | |
Expected return on plan assets | (44) | (44) | (122) | (120) | |
Amortization of net losses/(gains) | 18 | 14 | 50 | 36 | |
Gross total | 29 | 27 | 79 | 73 | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | (3) | (3) | (3) | (3) | |
Total expense | 32 | 30 | 82 | 76 | |
Retiree Medical | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 8 | 8 | 24 | 24 | |
Interest cost | 12 | 14 | 36 | 42 | |
Expected return on plan assets | (6) | (6) | (18) | (18) | |
Amortization of prior service (credit)/cost | (9) | (5) | (27) | (15) | |
Amortization of net losses/(gains) | (2) | 1 | (4) | ||
Gross total | 5 | 9 | 16 | 29 | |
Special termination benefits | 1 | 1 | 2 | ||
Total expense | $ 5 | $ 10 | $ 17 | $ 31 |
Debt Obligations and Commitme42
Debt Obligations and Commitments - Additional Information (Detail) - USD ($) $ in Millions | 8 Months Ended | ||
Sep. 05, 2015 | Jun. 13, 2015 | Jun. 09, 2014 | |
Debt Instrument [Line Items] | |||
Repayments of Debt | $ 4,100 | ||
Commercial Paper | 2,200 | ||
Unrecorded Unconditional Purchase Obligation | $ 1,500 | ||
Notes Due 2025 [Member] [Member] | Two Point Seven Five Zero Percent Notes Due 2025 [Member] [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | ||
Debt Instrument, Face Amount | $ 1,000 | ||
Notes Due 2025 [Member] [Member] | Three Point Five Zero Percent Notes Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||
Debt Instrument, Face Amount | $ 700 | ||
Notes Due 2045 [Member] | Four Point Six Zero Percent Notes Due 2045 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.60% | ||
Debt Instrument, Face Amount | $ 500 | ||
Notes Due 2020 [Member] | One Point Eight Five Zero Percent Notes Due 2020 [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.85% | ||
Debt Instrument, Face Amount | $ 750 | ||
Notes Due 2022 [Member] | Three Point One Zero Percent Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | ||
Debt Instrument, Face Amount | $ 800 | ||
Notes Due 2018 [Member] | Variable Rate | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 250 | ||
Notes Due 2018 [Member] | One Point Two Five Zero Percent Notes Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | ||
Debt Instrument, Face Amount | $ 500 | ||
Notes Due 2017 [Member] | Variable Rate | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 600 | ||
Notes Due 2017 [Member] | One Point One Two Five Percent Notes Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | ||
Debt Instrument, Face Amount | $ 650 | ||
Five-Year Unsecured Revolving Credit Agreement (Five-Year Credit Agreement) [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 4,500 | ||
Line of Credit Facility, Current Borrowing Capacity | 3,722.5 | $ 3,772.5 | |
364-Day Unsecured Revolving Credit Agreement (364-Day Credit Agreement) [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 4,500 | ||
Line of Credit Facility, Current Borrowing Capacity | $ 3,722.5 | $ 3,772.5 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | |||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | ||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification associated with Venezuela impairment charges | $ 111 | $ 0 | $ 111 | $ 0 | |
Losses/(gains) on cash flow hedges: | |||||
Total before tax | 6 | 109 | 88 | 130 | |
Tax amounts | (3) | (37) | (40) | (46) | |
Net losses after tax | 3 | 72 | 48 | 84 | |
Amortization of pension and retiree medical items: | |||||
Amortization of prior service credit (a) | [1] | (10) | 0 | (29) | 0 |
Net actuarial losses | [1] | 65 | 52 | 193 | 153 |
Settlement/Curtailment - Reclassifications from AOCI | [1] | 3 | 3 | 3 | 3 |
Total before tax | 58 | 55 | 167 | 156 | |
Tax amounts | (18) | (18) | (53) | (51) | |
Reclassification associated with Venezuela impairment charges, net of tax - pension | 16 | 0 | 16 | 0 | |
Net losses after tax | 40 | 37 | 114 | 105 | |
Reclassification associated with Venezuela impairment charges - Pension | 20 | 0 | 20 | 0 | |
Reclassification associated with Venezuela impairment charge, tax amount - Pension | (4) | 0 | (4) | 0 | |
Total net losses reclassified for the period, net of tax | 170 | 109 | 289 | 189 | |
Cash Flow Hedges | |||||
Losses/(gains) on cash flow hedges: | |||||
Losses/(gains) on cash flow hedges | [2] | 6 | 109 | 88 | 130 |
Cash Flow Hedges | Foreign exchange contracts | |||||
Losses/(gains) on cash flow hedges: | |||||
Losses/(gains) on cash flow hedges | [2] | (17) | 5 | (61) | (6) |
Cash Flow Hedges | Foreign exchange contracts | Sales Revenue, Net [Member] | |||||
Losses/(gains) on cash flow hedges: | |||||
Losses/(gains) on cash flow hedges | (2) | 0 | |||
Cash Flow Hedges | Foreign exchange contracts | Cost of Sales | |||||
Losses/(gains) on cash flow hedges: | |||||
Losses/(gains) on cash flow hedges | (17) | 5 | (59) | (6) | |
Cash Flow Hedges | Interest rate derivatives | |||||
Losses/(gains) on cash flow hedges: | |||||
Losses/(gains) on cash flow hedges | [2] | 21 | 98 | 133 | 112 |
Cash Flow Hedges | Interest rate derivatives | Interest Expense | |||||
Losses/(gains) on cash flow hedges: | |||||
Losses/(gains) on cash flow hedges | 21 | 98 | 133 | 112 | |
Cash Flow Hedges | Commodity contracts | |||||
Losses/(gains) on cash flow hedges: | |||||
Losses/(gains) on cash flow hedges | [2] | 2 | 6 | 16 | 24 |
Cash Flow Hedges | Commodity contracts | Cost of Sales | |||||
Losses/(gains) on cash flow hedges: | |||||
Losses/(gains) on cash flow hedges | 5 | 8 | 24 | ||
Cash Flow Hedges | Commodity contracts | Selling, General and Administrative Expenses | |||||
Losses/(gains) on cash flow hedges: | |||||
Losses/(gains) on cash flow hedges | $ 2 | $ 1 | $ 8 | $ 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 - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 8 Months Ended | ||
Sep. 05, 2015 | Sep. 05, 2015 | Sep. 06, 2014 | Dec. 27, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Expected reclassification of net gains (losses) related to hedge from accumulated OCI into net income within the next 12 months | $ 38 | |||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | $ 109 | 109 | $ 111 | |
Debt Instrument, Fair Value Disclosure | 33,000 | $ 33,000 | 31,000 | |
Call Option For Indirect Equity Percentage | 20.00% | |||
Tingyi Charge | $ 73 | $ 73 | $ 0 | |
Tingyi Charge per share | $ 0.05 | |||
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative maturity term, maximum | 3 years | |||
Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative maturity term, maximum | 2 years | |||
Derivative, Notional Amount | $ 1,900 | $ 1,900 | 2,700 | |
Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 9,800 | $ 9,800 | $ 9,300 | |
Percentage of total debt, net of related interest rate derivatives, exposed to variable interest rates | 29.00% | 29.00% | 25.00% | |
Designated as Hedging Instrument [Member] | Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 1,000 | $ 1,000 | $ 1,200 |
Fair Values of Financial Assets
Fair Values of Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 05, 2015 | Dec. 27, 2014 | |
Derivatives, Fair Value [Line Items] | |||
Short-term Investments | $ 1,981 | $ 2,592 | |
Prepaid forward contracts | [1],[2] | 24 | 26 |
Deferred Compensation Assets, Current and Noncurrent | [2],[3] | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Total derivatives at fair value | [2],[4] | 325 | 307 |
Total Financial Assets at fair value | [2] | 6,586 | 3,821 |
Derivatives not designated as hedging instruments: | |||
Total derivatives at fair value | [2],[4] | 514 | 393 |
Total Financial Liabilities at fair Value | [2] | 980 | 897 |
Derivatives Designated As Fair Value Hedging Instruments Assets | |||
Derivatives designated as fair value hedging instruments: | |||
Interest rate derivatives | [2],[5] | 165 | 140 |
Derivatives Designated As Hedging Instruments Assets | |||
Derivatives designated as cash flow hedging instruments: | |||
Foreign exchange contracts | [2],[6] | 85 | 76 |
Interest rate derivatives | [2],[6] | 1 | |
Commodity contracts | [2],[7] | 3 | |
Derivatives designated as hedging instruments, Assets, Total | [2] | 85 | 80 |
Derivatives Not Designated As Hedging Instruments Assets | |||
Derivatives not designated as hedging instruments: | |||
Foreign exchange contracts | [2],[6] | 8 | 12 |
Interest rate derivatives | [2],[5] | 55 | 57 |
Commodity contracts | [2],[7] | 12 | 18 |
Derivatives not designated as hedging instruments, Assets, Total | [2] | 75 | 87 |
Derivatives Designated As Fair Value Hedging Instruments Liabilities | |||
Derivatives designated as fair value hedging instruments: | |||
Interest rate derivatives | [2],[5] | 0 | 0 |
Derivatives Designated As Hedging Instruments Liabilities | |||
Derivatives designated as cash flow hedging instruments: | |||
Foreign exchange contracts | [2],[6] | 15 | 12 |
Interest rate derivatives | [2],[6] | 280 | 117 |
Commodity contracts | [2],[7] | 7 | 10 |
Derivatives designated as hedging instruments, Liabilities, Total | [2] | 302 | 139 |
Derivatives Not Designated As Hedging Instruments Liabilities | |||
Derivatives not designated as hedging instruments: | |||
Foreign exchange contracts | [2],[6] | 1 | 13 |
Interest rate derivatives | [2],[5] | 68 | 75 |
Commodity contracts | [2],[7] | 143 | 166 |
Derivatives not designated as hedging instruments, Liabilities, Total | [2] | 212 | 254 |
Liability [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Available-for-sale securities | [2] | 0 | 0 |
Trading Securities | [2],[8] | 0 | 0 |
Prepaid Forward Derivative Asset Fair Value | [1],[2] | 0 | 0 |
Deferred compensation | [2],[3] | 466 | 504 |
Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Available-for-sale securities | [2] | 6,049 | 3,291 |
Short-term Investments | [2],[8] | 188 | 197 |
Liability [Member] | Liability [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Available-for-sale securities | [2],[9] | 0 | 0 |
Assets [Member] | Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Available-for-sale securities | [2],[9] | 5,927 | 3,167 |
Assets [Member] | Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Available-for-sale securities | [2],[10] | 122 | 124 |
Liability [Member] | Liability [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Available-for-sale securities | [2],[10] | 0 | 0 |
Cash and Cash Equivalents [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Available-for-sale securities | 4,100 | 800 | |
Short-term Investments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Available-for-sale securities | $ 1,800 | $ 2,400 | |
[1] | Based primarily on the price of our common stock. | ||
[2] | 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. | ||
[3] | Based on the fair value of investments corresponding to employees’ investment elections. | ||
[4] | 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 September 5, 2015 and December 27, 2014 were immaterial. Collateral received against any of our asset positions was immaterial. | ||
[5] | Based on LIBOR forward rates. As of September 5, 2015 and December 27, 2014, amounts related to non-designated instruments are presented as a net liability on our Condensed Consolidated Balance Sheet. | ||
[6] | Based on recently reported market transactions of spot and forward rates. | ||
[7] | Based on recently reported market transactions, primarily swap arrangements. | ||
[8] | Based on the price of index funds. Categorized as a Level 1 asset. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability. | ||
[9] | Based on quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of September 5, 2015, $4.1 billion and $1.8 billion of debt securities were classified as cash equivalents and short-term investments, respectively. As of December 27, 2014, $0.8 billion and $2.4 billion of debt securities were classified as cash equivalents and short-term investments, respectively. All of the Company’s available-for-sale debt securities have maturities of one year or less. | ||
[10] | Based on the price of common stock. Categorized as a Level 1 asset. These equity securities are classified as investments in noncontrolled affiliates. |
Effective Portion of Pre Tax Ga
Effective Portion of Pre Tax Gains and Losses on Derivative Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | |||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | ||
Derivatives, Fair Value [Line Items] | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (38) | ||||
Fair Value/Non-designated Hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
(Gains)/Losses Recognized in Income Statement (a) | [1] | $ 22 | $ 57 | 112 | $ 41 |
Fair Value/Non-designated Hedges | Foreign exchange contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
(Gains)/Losses Recognized in Income Statement (a) | [1] | (28) | 2 | (12) | 1 |
Fair Value/Non-designated Hedges | Interest rate derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
(Gains)/Losses Recognized in Income Statement (a) | [1] | (37) | 10 | (30) | 6 |
Fair Value/Non-designated Hedges | Commodity contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
(Gains)/Losses Recognized in Income Statement (a) | [1] | 87 | 45 | 154 | 34 |
Cash Flow Hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | (13) | 42 | 94 | 67 | |
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) | [2] | 6 | 109 | 88 | 130 |
Cash Flow Hedges | Foreign exchange contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | (52) | (6) | (78) | 6 | |
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) | [2] | (17) | 5 | (61) | (6) |
Cash Flow Hedges | Interest rate derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | 35 | 39 | 164 | 44 | |
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) | [2] | 21 | 98 | 133 | 112 |
Cash Flow Hedges | Commodity contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | 4 | 9 | 8 | 17 | |
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) | [2] | $ 2 | $ 6 | $ 16 | $ 24 |
[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. |
Financial Instruments Tingyi (D
Financial Instruments Tingyi (Details) $ in Millions | 3 Months Ended |
Sep. 05, 2015USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
indirect equity investment percentage | 5.00% |
indirect equity investment [Table Text Block] | $ 538 |
Basic and Diluted Net Income At
Basic and Diluted Net Income Attributable to PepsiCo (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 8 Months Ended | |||
Sep. 05, 2015 | Sep. 06, 2014 | Sep. 05, 2015 | Sep. 06, 2014 | ||
Earnings Per Share [Abstract] | |||||
Venezuela charge | $ 1,400 | ||||
Net income attributable to PepsiCo | $ 533 | $ 2,008 | 3,734 | $ 5,202 | |
Preferred Stock [Abstract] | |||||
Dividends | (1) | (1) | |||
Redemption premium | (1) | (3) | (3) | (6) | |
Net income available for PepsiCo common shareholders - Value | $ 531 | $ 2,005 | $ 3,730 | $ 5,196 | |
Net income available for PepsiCo common shareholders - Shares | [1] | 1,467 | 1,507 | 1,475 | 1,515 |
Basic net income attributable to PepsiCo per common share (in dollars per share) | $ 0.36 | $ 1.33 | $ 2.53 | $ 3.43 | |
Dilutive Securities [Abstract] | |||||
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ 1 | $ 0 | $ 1 | $ 0 | |
Stock options and RSUs - Shares | [1],[2] | 15 | 17 | 16 | 16 |
ESOP convertible preferred stock - Value | $ 1 | $ 3 | $ 3 | $ 6 | |
ESOP convertible preferred stock - Shares | [1] | 1 | 1 | 1 | 1 |
Diluted shares - Value | $ 533 | $ 2,008 | $ 3,734 | $ 5,202 | |
Diluted shares - Shares | [1] | 1,483 | 1,525 | 1,492 | 1,532 |
Diluted net income attributable to PepsiCo per common share (in dollars per share) | $ 0.36 | $ 1.32 | $ 2.50 | $ 3.40 | |
Venezuela impairment charges | $ 1,359 | $ 1,359 | $ 0 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.5 | 1.6 | 0.1 | ||
Out-of-the-money options average exercise price | $ 99.25 | $ 99.25 | $ 82.25 | ||
[1] | Weighted-average common shares outstanding (in millions). | ||||
[2] | For the 12 weeks ended September 5, 2015, options to purchase 1.5 million shares 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 an average exercise price of $99.25. For the 12 weeks ended September 6, 2014, the calculation of diluted earnings per common share was unadjusted because there were no out-of-the-money options during the period. For the 36 weeks ended September 5, 2015 and September 6, 2014, options to purchase 1.6 million shares and 0.1 million shares, respectively, 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 $99.25 and $82.25 for the 36 weeks ended September 5, 2015 and September 6, 2014, respectively. |