Statement Of Income Alternative
Statement Of Income Alternative (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Dec. 26, 2009 | 12 Months Ended
Dec. 27, 2008 | 12 Months Ended
Dec. 29, 2007 |
Net Revenue | $43,232 | $43,251 | $39,474 |
Cost of sales | 20,099 | 20,351 | 18,038 |
Selling, general and administrative expenses | 15,026 | 15,877 | 14,196 |
Amortization of intangible assets | 63 | 64 | 58 |
Operating Profit | 8,044 | 6,959 | 7,182 |
Bottling equity income | 365 | 374 | 560 |
Interest expense | (397) | (329) | (224) |
Interest income | 67 | 41 | 125 |
Income before Income Taxes | 8,079 | 7,045 | 7,643 |
Provision for Income Taxes | 2,100 | 1,879 | 1,973 |
Net Income | 5,979 | 5,166 | 5,670 |
Less: Net income attributable to noncontrolling interests | 33 | 24 | 12 |
Net Income Attributable to PepsiCo | $5,946 | $5,142 | $5,658 |
Net Income Attributable to PepsiCo per Common Share | |||
Basic | 3.81 | 3.26 | 3.48 |
Diluted | 3.77 | 3.21 | 3.41 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | |||
In Millions | 12 Months Ended
Dec. 26, 2009 | 12 Months Ended
Dec. 27, 2008 | 12 Months Ended
Dec. 29, 2007 |
Operating Activities | |||
Net income | $5,979 | $5,166 | $5,670 |
Depreciation and amortization | 1,635 | 1,543 | 1,426 |
Stock-based compensation expense | 227 | 238 | 260 |
Restructuring and impairment charges | 36 | 543 | 102 |
Cash payments for restructuring charges | (196) | (180) | (22) |
PBG/PAS merger costs | 50 | 0 | 0 |
Cash payments for PBG/PAS merger costs | (49) | 0 | 0 |
Excess tax benefits from share-based payment arrangements | (42) | (107) | (208) |
Pension and retiree medical plan contributions | (1,299) | (219) | (310) |
Pension and retiree medical plan expenses | 423 | 459 | 535 |
Bottling equity income, net of dividends | (235) | (202) | (441) |
Deferred income taxes and other tax charges and credits | 284 | 573 | 118 |
Change in accounts and notes receivable | 188 | (549) | (405) |
Change in inventories | 17 | (345) | (204) |
Change in prepaid expenses and other current assets | (127) | (68) | (16) |
Change in accounts payable and other current liabilities | (133) | 718 | 522 |
Change in income taxes payable | 319 | (180) | 128 |
Other, net | (281) | (391) | (221) |
Net Cash Provided by Operating Activities | 6,796 | 6,999 | 6,934 |
Investing Activities | |||
Capital spending | (2,128) | (2,446) | (2,430) |
Sales of property, plant and equipment | 58 | 98 | 47 |
Proceeds from finance assets | 0 | 0 | 27 |
Acquisitions and investments in noncontrolled affiliates | (500) | (1,925) | (1,320) |
Divestitures | 99 | 6 | 0 |
Cash restricted for pending acquisitions | 15 | (40) | 0 |
Cash proceeds from sale of PBG and PAS stock | 0 | 358 | 315 |
Short-term investments, by original maturity | |||
More than three months - purchases | (29) | (156) | (83) |
More than three months - maturities | 71 | 62 | 113 |
Three months or less, net | 13 | 1,376 | (413) |
Net Cash Used for Investing Activities | (2,401) | (2,667) | (3,744) |
Financing Activities | |||
Proceeds from issuances of long-term debt | 1,057 | 3,719 | 2,168 |
Payments of long-term debt | (226) | (649) | (579) |
Short-term borrowings, by original maturity | |||
More than three months - proceeds | 26 | 89 | 83 |
More than three months - payments | (81) | (269) | (133) |
Three months or less, net | (963) | 625 | (345) |
Cash dividends paid | (2,732) | (2,541) | (2,204) |
Share repurchases - common | 0 | (4,720) | (4,300) |
Share repurchases - preferred | (7) | (6) | (12) |
Proceeds from exercises of stock options | 413 | 620 | 1,108 |
Excess tax benefits from share-based payment arrangements | 42 | 107 | 208 |
Other financing | (26) | 0 | 0 |
Net Cash Used for Financing Activities | (2,497) | (3,025) | (4,006) |
Effect of exchange rate changes on cash and cash equivalents | (19) | (153) | 75 |
Net Increase/(Decrease) in Cash and Cash Equivalents | 1,879 | 1,154 | (741) |
Cash and Cash Equivalents, Beginning of Year | 2,064 | 910 | 1,651 |
Cash and Cash Equivalents, End of Year | $3,943 | $2,064 | $910 |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | Dec. 26, 2009
| Dec. 27, 2008
|
Current Assets | ||
Cash and cash equivalents | $3,943 | $2,064 |
Short-term investments | 192 | 213 |
Accounts and notes receivable, net | 4,624 | 4,683 |
Inventories | 2,618 | 2,522 |
Prepaid expenses and other current assets | 1,194 | 1,324 |
Total Current Assets | 12,571 | 10,806 |
Property, Plant and Equipment, net | 12,671 | 11,663 |
Amortizable Intangible Assets, net | 841 | 732 |
Goodwill | 6,534 | 5,124 |
Other nonamortizable intangible assets | 1,782 | 1,128 |
Nonamortizable Intangible Assets | 8,316 | 6,252 |
Investments in Noncontrolled Affiliates | 4,484 | 3,883 |
Other Assets | 965 | 2,658 |
Total Assets | 39,848 | 35,994 |
Current Liabilities | ||
Short-term obligations | 464 | 369 |
Accounts payable and other current liabilities | 8,127 | 8,273 |
Income taxes payable | 165 | 145 |
Total Current Liabilities | 8,756 | 8,787 |
Long-Term Debt Obligations | 7,400 | 7,858 |
Other Liabilities | 5,591 | 6,541 |
Deferred Income Taxes | 659 | 226 |
Total Liabilities | 22,406 | 23,412 |
Commitments and Contingencies | ||
Preferred Stock, no par value | 41 | 41 |
Repurchased Preferred Stock | (145) | (138) |
PepsiCo Common Shareholders' Equity | ||
Common stock, par value 12/3¢ per share (authorized 3,600 shares, issued 1,782 shares) | 30 | 30 |
Capital in excess of par value | 250 | 351 |
Retained earnings | 33,805 | 30,638 |
Accumulated other comprehensive loss | (3,794) | (4,694) |
Repurchased common stock, at cost (217 and 229 shares, respectively) | (13,383) | (14,122) |
Total PepsiCo Common Shareholders' Equity | 16,908 | 12,203 |
Noncontrolling interests | 638 | 476 |
Total Equity | 17,442 | 12,582 |
Total Liabilities and Equity | $39,848 | $35,994 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
Share data in Millions | Dec. 26, 2009
| Dec. 27, 2008
|
Preferred Stock, par value | $0 | $0 |
Common stock, par value | 0.016667 | 0.016667 |
Common stock, authorized | 3,600 | 3,600 |
Common stock, issued | 1,782 | 1,782 |
Repurchased common stock, shares | 217 | 229 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | |||||||||||||||||||
In Millions | Preferred Stock
| Repurchased Preferred Stock
| Common Stock
| Repurchased Common Stock
| Capital in Excess of Par Value
| Retained Earnings
| Accumulated Other Comprehensive Loss
| Total Common Shareholders' Equity
| Noncontrolling Interests
| Total
| |||||||||
Balance, beginning of year at Dec. 30, 2006 | ($120) | ($7,758) | $584 | $24,837 | ($2,246) | $45 | |||||||||||||
Balance, beginning of year (in shares) at Dec. 30, 2006 | -0.5 | (144) | |||||||||||||||||
Share repurchases (in shares) | (64) | ||||||||||||||||||
Redemptions (in shares) | 0 | ||||||||||||||||||
Stock option exercises (in shares) | 28 | ||||||||||||||||||
Other, primarily RSUs converted (in shares) | 3 | ||||||||||||||||||
Measurement date change | 0 | ||||||||||||||||||
Adoption of guidance on accounting for uncertainty in income taxes | 7 | ||||||||||||||||||
Share repurchases | (4,300) | ||||||||||||||||||
Stock-based compensation expense | 260 | ||||||||||||||||||
Redemptions | (12) | ||||||||||||||||||
Measurement date change | 0 | ||||||||||||||||||
Stock option exercises | 1,582 | ||||||||||||||||||
Stock option exercises/RSUs converted | (347) | [1] | |||||||||||||||||
Withholding tax on RSUs converted | (47) | ||||||||||||||||||
Adjusted balance, beginning of year | 24,844 | (2,246) | |||||||||||||||||
Net income | 5,658 | 12 | 5,670 | ||||||||||||||||
Cash dividends declared - common | (2,306) | ||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests, net | 9 | ||||||||||||||||||
Cash dividends declared - preferred | (2) | ||||||||||||||||||
Cash dividends declared - RSUs | (10) | ||||||||||||||||||
Currency translation adjustment | 719 | 2 | |||||||||||||||||
Cash flow hedges, net of tax: | |||||||||||||||||||
Net derivative (losses)/gains | (60) | ||||||||||||||||||
Reclassification of losses to net income | 21 | ||||||||||||||||||
Other | 89 | (6) | |||||||||||||||||
Pension and retiree medical, net of tax | |||||||||||||||||||
Net gains/(losses) | 464 | ||||||||||||||||||
Reclassification of net losses to net income | 135 | ||||||||||||||||||
Unrealized gains/(losses) on securities, net of tax | 9 | ||||||||||||||||||
Other | 6 | ||||||||||||||||||
Balance, end of period (in shares) at Dec. 29, 2007 | 0.8 | -0.5 | 1,782 | (177) | |||||||||||||||
Balance, end of period at Dec. 29, 2007 | 41 | (132) | 30 | (10,387) | 450 | 28,184 | (952) | 17,325 | 62 | 17,296 | |||||||||
Share repurchases (in shares) | (68) | ||||||||||||||||||
Redemptions (in shares) | 0 | ||||||||||||||||||
Stock option exercises (in shares) | 15 | ||||||||||||||||||
Other, primarily RSUs converted (in shares) | 1 | ||||||||||||||||||
Measurement date change | 51 | ||||||||||||||||||
Adoption of guidance on accounting for uncertainty in income taxes | 0 | ||||||||||||||||||
Share repurchases | (4,720) | ||||||||||||||||||
Stock-based compensation expense | 238 | ||||||||||||||||||
Redemptions | (6) | ||||||||||||||||||
Measurement date change | (89) | ||||||||||||||||||
Stock option exercises | 883 | ||||||||||||||||||
Stock option exercises/RSUs converted | (280) | [1] | |||||||||||||||||
Withholding tax on RSUs converted | (57) | ||||||||||||||||||
Adjusted balance, beginning of year | 28,095 | (901) | |||||||||||||||||
Net income | 5,142 | 24 | 5,166 | ||||||||||||||||
Cash dividends declared - common | (2,589) | ||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests, net | 450 | ||||||||||||||||||
Cash dividends declared - preferred | (2) | ||||||||||||||||||
Cash dividends declared - RSUs | (8) | ||||||||||||||||||
Currency translation adjustment | (2,484) | (48) | |||||||||||||||||
Cash flow hedges, net of tax: | |||||||||||||||||||
Net derivative (losses)/gains | 16 | ||||||||||||||||||
Reclassification of losses to net income | 5 | ||||||||||||||||||
Other | 102 | (12) | |||||||||||||||||
Pension and retiree medical, net of tax | |||||||||||||||||||
Net gains/(losses) | (1,376) | ||||||||||||||||||
Reclassification of net losses to net income | 73 | ||||||||||||||||||
Unrealized gains/(losses) on securities, net of tax | (21) | ||||||||||||||||||
Other | (6) | ||||||||||||||||||
Balance, end of period (in shares) at Dec. 27, 2008 | 0.8 | -0.5 | 1,782 | (229) | |||||||||||||||
Balance, end of period at Dec. 27, 2008 | 41 | (138) | 30 | (14,122) | 351 | 30,638 | (4,694) | 12,203 | 476 | 12,582 | |||||||||
Share repurchases (in shares) | 0 | ||||||||||||||||||
Redemptions (in shares) | -0.1 | ||||||||||||||||||
Stock option exercises (in shares) | 11 | ||||||||||||||||||
Other, primarily RSUs converted (in shares) | 1 | ||||||||||||||||||
Measurement date change | 0 | ||||||||||||||||||
Adoption of guidance on accounting for uncertainty in income taxes | 0 | ||||||||||||||||||
Share repurchases | 0 | ||||||||||||||||||
Stock-based compensation expense | 227 | ||||||||||||||||||
Redemptions | (7) | ||||||||||||||||||
Measurement date change | 0 | ||||||||||||||||||
Stock option exercises | 649 | ||||||||||||||||||
Stock option exercises/RSUs converted | (292) | [1] | |||||||||||||||||
Withholding tax on RSUs converted | (36) | ||||||||||||||||||
Adjusted balance, beginning of year | 30,638 | (4,694) | |||||||||||||||||
Net income | 5,946 | 33 | 5,979 | ||||||||||||||||
Cash dividends declared - common | (2,768) | ||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests, net | 150 | ||||||||||||||||||
Cash dividends declared - preferred | (2) | ||||||||||||||||||
Cash dividends declared - RSUs | (9) | ||||||||||||||||||
Currency translation adjustment | 800 | (12) | |||||||||||||||||
Cash flow hedges, net of tax: | |||||||||||||||||||
Net derivative (losses)/gains | (55) | ||||||||||||||||||
Reclassification of losses to net income | 28 | ||||||||||||||||||
Other | 90 | (9) | |||||||||||||||||
Pension and retiree medical, net of tax | |||||||||||||||||||
Net gains/(losses) | 86 | ||||||||||||||||||
Reclassification of net losses to net income | 21 | ||||||||||||||||||
Unrealized gains/(losses) on securities, net of tax | 20 | ||||||||||||||||||
Other | 0 | ||||||||||||||||||
Balance, end of period (in shares) at Dec. 26, 2009 | 0.8 | -0.6 | 1,782 | (217) | |||||||||||||||
Balance, end of period at Dec. 26, 2009 | $41 | ($145) | $30 | ($13,383) | $250 | $33,805 | ($3,794) | $16,908 | $638 | $17,442 | |||||||||
[1]Includes total tax benefits of $31 million in 2009, $95 million in 2008 and $216 million in 2007. |
2_Statement Of Shareholders Equ
Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $) | |||
In Millions | 12 Months Ended
Dec. 26, 2009 | 12 Months Ended
Dec. 27, 2008 | 12 Months Ended
Dec. 29, 2007 |
Stock option exercises/RSUs converted, tax benefits | $31 | $95 | $216 |
Basis of Presentation and Our D
Basis of Presentation and Our Divisions | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Basis of Presentation and Our Divisions | Note 1 Basis of Presentation and Our Divisions Basis of Presentation Our financial statements include the consolidated accounts of PepsiCo, Inc. and the affiliates that we control. In addition, we include our share of the results of certain other affiliates based on our economic ownership interest. We do not control these other affiliates, as our ownership in these other affiliates is generally less than 50%. Equity income or loss from our anchor bottlers is recorded as bottling equity income in our income statement. Bottling equity income also includes any changes in our ownership interests of our anchor bottlers. Bottling equity income includes $147 million of pre-tax gains on our sales of PBG and PAS stock in 2008 and $174 million of pre-tax gains on our sales of PBG stock in 2007. There were no sales of PBG or PAS stock in 2009. See Notes 8 and 15 for additional information on our significant noncontrolled bottling affiliates. Income or loss from other noncontrolled affiliates is recorded as a component of selling, general and administrative expenses. Intercompany balances and transactions are eliminated. Our fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six years. 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 preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Estimates are used in determining, among other items, sales incentives accruals, tax reserves, stock-based compensation, pension and retiree medical accruals, useful lives for intangible assets, and future cash flows associated with impairment testing for perpetual brands, goodwill and other long-lived assets. We evaluate our estimates on an on-going basis using our historical experience, as well as other factors we believe appropriate under the circumstances, such as current economic conditions, and adjust or revise our estimates as circumstances change. As future events and their effect cannot be determined with precision, actual results could differ significantly from these estimates. While the majority of our results are reported on a weekly calendar basis, most of our international operations report on a monthly calendar basis. The following chart details our quarterly reporting schedule: Quarter U.S. and Canada International First Quarter 12 weeks January, February Second Quarter 12 weeks March, April and May Third Quarter 12 weeks June, July and August Fourth Quarter 16 weeks September, October, November and December See Our Divisions below and for additional unaudited information on items affe |
Our Significant Accounting Poli
Our Significant Accounting Policies | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Our Significant Accounting Policies | Note 2 Our Significant Accounting Policies Revenue Recognition We recognize revenue upon shipment or delivery to our customers based on written sales terms that do not allow for a right of return. However, our policy for DSD and certain chilled products is to remove and replace damaged and out-of-date products from store shelves to ensure that our consumers receive the product quality and freshness that they expect. Similarly, our policy for certain warehouse-distributed products is to replace damaged and out-of-date products. Based on our experience with this practice, we have reserved for anticipated damaged and out-of-date products. For additional unaudited information on our revenue recognition and related policies, including our policy on bad debts, see Our Critical Accounting Policies in Managements Discussion and Analysis of Financial Condition and Results of Operations. We are exposed to concentration of credit risk by our customers, Wal-Mart and PBG. In 2009, Wal-Mart (including Sams) represented approximately 13% of our total net revenue, including concentrate sales to our bottlers which are used in finished goods sold by them to Wal-Mart; and PBG represented approximately 6%. We have not experienced credit issues with these customers. Sales Incentives and Other Marketplace Spending We offer sales incentives and discounts through various programs to our customers and consumers. Sales incentives and discounts are accounted for as a reduction of revenue and totaled $12.9 billion in 2009, $12.5 billion in 2008 and $11.3 billion in 2007. While most of these incentive arrangements have terms of no more than one year, certain arrangements, such as fountain pouring rights, may extend beyond one year. Costs incurred to obtain these arrangements are recognized over the shorter of the economic or contractual life, as a reduction of revenue, and the remaining balances of $296 million as of December26, 2009 and $333 million as of December27, 2008 are included in current assets and other assets on our balance sheet. For additional unaudited information on our sales incentives, see Our Critical Accounting Policies in Managements Discussion and Analysis of Financial Condition and Results of Operations. Other marketplace spending, which includes the costs of advertising and other marketing activities, totaled $2.8 billion in 2009 and $2.9 billion in both 2008 and 2007 and is reported as selling, general and administrative expenses. Included in these amounts were advertising expenses of $1.7 billion in both 2009 and 2008 and $1.8 billion in 2007. Deferred advertising costs are not expensed until the year first used and consist of: media and personal service prepayments, promotional materials in inventory, and production costs of future media advertising. Deferred advertising costs of $143 million and $172 million at year-end 2009 and 2008, respectively, are classified as prepaid expenses on our balance sheet. Distribution Costs Distribution costs, including the costs of shipping and handling activities, are reported as selling, general and administrative expenses. Shipping and handling ex |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Restructuring and Impairment Charges | Note 3 Restructuring and Impairment Charges 2009 and 2008 Restructuring and Impairment Charges In 2009, we incurred a charge of $36 million ($29 million after-tax or $0.02 per share) in conjunction with our Productivity for Growth program that began in 2008. The program includes actions in all divisions of the business, including the closure of six plants that we believe will increase cost competitiveness across the supply chain, upgrade and streamline our product portfolio, and simplify the organization for more effective and timely decision-making. These charges were recorded in selling, general and administrative expenses. These initiatives were completed in the second quarter of 2009, and substantially all cash payments related to these charges are expected to be paid by 2010. In 2008, we incurred a charge of $543 million ($408 million after-tax or $0.25 per share) in conjunction with our Productivity for Growth program. Approximately $455 million of the charge was recorded in selling, general and administrative expenses, with the remainder recorded in cost of sales. A summary of the restructuring and impairment charge in 2009 is as follows: SeveranceandOther Employee Costs(a) OtherCosts Total FLNA $ $ 2 $ 2 QFNA 1 1 LAF 3 3 PAB 6 10 16 Europe 1 1 AMEA 7 6 13 $ 17 $ 19 $ 36 (a) Primarily reflects termination costs for approximately 410 employees. A summary of the restructuring and impairment charge in 2008 is as follows: SeveranceandOther EmployeeCosts AssetImpairments OtherCosts Total FLNA $ 48 $ 38 $ 22 $ 108 QFNA 14 3 14 31 LAF 30 8 2 40 PAB 68 92 129 289 Europe 39 6 5 50 AMEA 11 2 2 15 Corporate 2 8 10 $ 212 $ 149 $ 182 $ 543 Severance and other employee costs primarily reflect termination costs for approximately 3,500 employees. Asset impairments relate to the closure of six plants and changes to our beverage product portfolio. Other costs include contract exit costs and third-party incremental costs associated with upgrading our product portfolio and our supply chain. A summary of our Productivity for Growth program activity is as follows: SeveranceandOther EmployeeCosts AssetImpairments OtherCosts Total 2008 restructuring and impairment charge $ 212 $ 149 $ 182 $ 543 Cash payments (50 ) (109 ) (159 ) Non-cash charge (27 ) (149 ) (9 ) (185 ) Currency translation (1 ) (1 ) Liability as of December27, 2008 134 64 198 2009 restructuring and impairment charge 17 12 7 36 Cash payments (128 ) (68 ) (196 ) Currency translation and other (14 ) |
Property, Plant and Equipment a
Property, Plant and Equipment and Intangible Assets | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Property, Plant and Equipment and Intangible Assets | Note 4 Property, Plant and Equipment and Intangible Assets Average UsefulLife 2009 2008 2007 Property, plant and equipment, net Land and improvements 1034yrs. $ 1,208 $ 868 Buildings and improvements 2044 5,080 4,738 Machinery and equipment, including fleet and software 514 17,183 15,173 Construction in progress 1,441 1,773 24,912 22,552 Accumulated depreciation (12,241 ) (10,889 ) $ 12,671 $ 11,663 Depreciation expense $ 1,500 $ 1,422 $ 1,304 Amortizable intangible assets, net Brands 540 $ 1,465 $ 1,411 Other identifiable intangibles 1024 505 360 1,970 1,771 Accumulated amortization (1,129 ) (1,039 ) $ 841 $ 732 Amortization expense $ 63 $ 64 $ 58 Property, plant and equipment is recorded at historical cost. Depreciation and amortization are recognized on a straight-line basis over an assets estimated useful life. Land is not depreciated and construction in progress is not depreciated until ready for service. Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December26, 2009 and using average 2009 foreign exchange rates, is expected to be $65 million in both 2010 and 2011, $61 million in 2012, $58 million in 2013 and $52 million in 2014. Depreciable and amortizable assets are only evaluated for impairment upon a significant change in the operating or macroeconomic environment. In these circumstances, if an evaluation of the undiscounted cash flows indicates impairment, the asset is written down to its estimated fair value, which is based on discounted future cash flows. Useful lives are periodically evaluated to determine whether events or circumstances have occurred which indicate the need for revision. For additional unaudited information on our amortizable brand policies, see Our Critical Accounting Policies in Managements Discussion and Analysis of Financial Condition and Results of Operations. Nonamortizable Intangible Assets Perpetual brands and goodwill are assessed for impairment at least annually. If the carrying amount of a perpetual brand exceeds its fair value, as determined by its discounted cash flows, an impairment loss is recognized in an amount equal to that excess. No impairment charges resulted from these impairment evaluations. The change in the book value of nonamortizable intangible assets is as follows: Balance, Beginning 2008 Acquisitions Translation andOther Balance, Endof 2008 Acquisitions Translation andOther Balance, End of 2009 FLNA Goodwill $ 311 $ $ (34 ) $ 277 $ 6 $ 23 $ 306 |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Income Taxes | Note 5 Income Taxes 2009 2008 2007 Income before income taxes U.S. $ 4,209 $ 3,274 $ 4,085 Foreign 3,870 3,771 3,558 $ 8,079 $ 7,045 $ 7,643 Provision for income taxes Current:U.S. Federal $ 1,238 $ 815 $ 1,422 Foreign 473 732 489 State 124 87 104 1,835 1,634 2,015 Deferred:U.S. Federal 223 313 22 Foreign 21 (69 ) (66 ) State 21 1 2 265 245 (42 ) $ 2,100 $ 1,879 $ 1,973 Tax rate reconciliation U.S. Federal statutory tax rate 35.0 % 35.0 % 35.0 % State income tax, net of U.S. Federal tax benefit 1.2 0.8 0.9 Lower taxes on foreign results (7.9 ) (8.0 ) (6.6 ) Tax settlements (1.7 ) Other, net (2.3 ) (1.1 ) (1.8 ) Annual tax rate 26.0 % 26.7 % 25.8 % Deferred tax liabilities Investments in noncontrolled affiliates $ 1,120 $ 1,193 Property, plant and equipment 1,056 881 Intangible assets other than nondeductible goodwill 417 295 Other 68 73 Gross deferred tax liabilities 2,661 2,442 Deferred tax assets Net carryforwards 624 682 Stock-based compensation 410 410 Retiree medical benefits 508 495 Other employee-related benefits 442 428 Pension benefits 179 345 Deductible state tax and interest benefits 256 230 Other 560 677 Gross deferred tax assets 2,979 3,267 Valuation allowances (586 ) (657 ) Deferred tax assets, net 2,393 2,610 Net deferred tax liabilities/(assets) $ 268 $ (168 ) 2009 2008 2007 Deferred taxes included within: Assets: Prepaid expenses and other current assets $ 391 $ 372 $ 325 Other assets $ 22 Liabilities: Deferred income taxes $ 659 $ 226 $ 646 Analysis of valuation allowances Balance, beginning of year $ 657 $ 695 $ 624 (Benefit)/provision (78 ) (5 ) 39 Other additions/(deductions) 7 (33 ) 32 Balance, end of year $ 586 $ 657 $ 695 For additional unaudited information on our income tax policies, including our reserves for income |
Stock-Based Compensation
Stock-Based Compensation | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Stock-Based Compensation | Note 6 Stock-Based Compensation Our stock-based compensation program is a broad-based program designed to attract and retain employees while also aligning employees interests with the interests of our shareholders. A majority of our employees participate in our stock-based compensation program. This program includes both our broad-based SharePower program which was established in 1989 to grant an annual award of stock options to eligible employees, based upon job level or classification and tenure (internationally), as well as our executive long-term awards program. Stock options and restricted stock units (RSU) are granted to employees under the shareholder-approved 2007 Long-Term Incentive Plan (LTIP), our only active stock-based plan. Stock-based compensation expense was $227 million in 2009, $238 million in 2008 and $260 million in 2007. Related income tax benefits recognized in earnings were $67 million in 2009, $71 million in 2008 and $77 million in 2007. Stock-based compensation cost capitalized in connection with our ongoing business transformation initiative was $2 million in 2009, $4 million in 2008 and $3 million in 2007. At year-end 2009, 42million shares were available for future stock-based compensation grants. Method of Accounting and Our Assumptions We account for our employee stock options, which include grants under our executive program and our broad-based SharePower program, under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. All stock option grants have an exercise price equal to the fair market value of our common stock on the date of grant and generally have a 10-year term. We do not backdate, reprice or grant stock-based compensation awards retroactively. Repricing of awards would require shareholder approval under the LTIP. The fair value of stock option grants is amortized to expense over the vesting period, generally three years. Executives who are awarded long-term incentives based on their performance are offered the choice of stock options or RSUs. Executives who elect RSUs receive one RSU for every four stock options that would have otherwise been granted. Senior officers do not have a choice and are granted 50% stock options and 50% performance-based RSUs. Vesting of RSU awards for senior officers is contingent upon the achievement of pre-established performance targets approved by the Compensation Committee of the Board of Directors. RSU expense is based on the fair value of PepsiCo stock on the date of grant and is amortized over the vesting period, generally three years. Each RSU is settled in a share of our stock after the vesting period. Our weighted-average Black-Scholes fair value assumptions are as follows: 2009 2008 2007 Expected life 6yrs. 6yrs. 6yrs. Risk free interest rate 2.8% 3.0% 4.8% Expected volatility 17% 16% 15% Expected dividend yield 3.0% 1.9% 1.9% The expected life is the period over which our employee groups are expected to hold their options. It is based on our historical experience with similar grants. The risk free inte |
Pension, Retiree Medical and Sa
Pension, Retiree Medical and Savings Plans | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Pension, Retiree Medical and Savings Plans | Note 7 Pension, Retiree Medical and Savings Plans Our pension plans cover full-time employees in the U.S. and certain international employees. Benefits are determined based on either years of service or a combination of years of service and earnings. U.S. and Canada retirees are also eligible for medical and life insurance benefits (retiree medical) if they meet age and service requirements. Generally, our share of retiree medical costs is capped at specified dollar amounts, which vary based upon years of service, with retirees contributing the remainder of the costs. Gains and losses resulting from actual experience differing from our assumptions, including the difference between the actual return on plan assets and the expected return on plan assets, and from changes in our assumptions are also determined at each measurement date. If this net accumulated gain or loss exceeds 10% of the greater of the market-related value of plan assets or plan liabilities, a portion of the net gain or loss is included in expense for the following year. The cost or benefit of plan changes that increase or decrease benefits for prior employee service (prior service cost/(credit)) is included in earnings on a straight-line basis over the average remaining service period of active plan participants, which is approximately 10 years for pension expense and approximately 12 years for retiree medical expense. Our adoption of the standard on accounting for defined benefit pension and other postretirement plans required that, no later than 2008, our assumptions used to measure our annual pension and retiree medical expense be determined as of the balance sheet date, and all plan assets and liabilities be reported as of that date. Accordingly, as of the beginning of our 2008 fiscal year, we changed the measurement date for our annual pension and retiree medical expense and all plan assets and liabilities from September30 to our year-end balance sheet date. As a result of this change in measurement date, we recorded an after-tax $39 million decrease to 2008 opening shareholders equity, as follows: Pension Retiree Medical Total Retained earnings $ (63 ) $ (20 ) $ (83 ) Accumulated other comprehensive loss 12 32 44 Total $ (51 ) $ 12 $ (39 ) Selected financial information for our pension and retiree medical plans is as follows: Pension Retiree Medical 2009 2008 2009 2008 2009 2008 U.S. International Change in projected benefit liability Liability at beginning of year $ 6,217 $ 6,048 $ 1,270 $ 1,595 $ 1,370 $ 1,354 Measurement date change (199 ) 113 (37 ) Service cost 238 244 54 61 44 45 Interest cost 373 371 82 88 82 82 Plan amendments (20 ) 2 (47 ) Participant contributions 10 17 |
Noncontrolled Bottling Affiliat
Noncontrolled Bottling Affiliates | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Noncontrolled Bottling Affiliates | Note 8 Noncontrolled Bottling Affiliates Our most significant noncontrolled bottling affiliates are PBG and PAS. Sales to PBG represented approximately 6% of our total net revenue in 2009 and 7% of our total net revenue in both 2008 and 2007. See Note 15 for information regarding our pending mergers with PBG and PAS. The Pepsi Bottling Group In addition to approximately 32% and 33% of PBGs outstanding common stock that we owned at year-end 2009 and 2008, respectively, we owned 100% of PBGs class B common stock and approximately 7% of the equity of Bottling Group, LLC, PBGs principal operating subsidiary. PBGs summarized financial information is as follows: 2009 2008 2007 Current assets $ 3,412 $ 3,141 Noncurrent assets 10,158 9,841 Total assets $ 13,570 $ 12,982 Current liabilities $ 1,965 $ 3,083 Noncurrent liabilities 7,896 7,408 Total liabilities $ 9,861 $ 10,491 Our investment $ 1,775 $ 1,457 Net revenue $ 13,219 $ 13,796 $ 13,591 Gross profit $ 5,840 $ 6,210 $ 6,221 Operating income $ 1,048 $ 649 $ 1,071 Net income attributable to PBG $ 612 $ 162 $ 532 Our investment in PBG, which includes the related goodwill, was $463 million and $536 million higher than our ownership interest in their net assets less noncontrolling interests at year-end 2009 and 2008, respectively. Based upon the quoted closing price of PBG shares at year-end 2009, the calculated market value of our shares in PBG exceeded our investment balance, excluding our investment in Bottling Group, LLC, by approximately $1.4 billion. Additionally, in 2007, we formed a joint venture with PBG, comprising our concentrate and PBGs bottling businesses in Russia. PBG holds a 60% majority interest in the joint venture and consolidates the entity. We account for our interest of 40% under the equity method of accounting. During 2008, together with PBG, we jointly acquired Russias leading branded juice company, Lebedyansky. Lebedyansky is owned 25% and 75% by PBG and us, respectively. See Note 14 for further information on this acquisition. PepsiAmericas At year-end 2009 and 2008, we owned approximately 43%, respectively, of the outstanding common stock of PAS. PAS summarized financial information is as follows: 2009 2008 2007 Current assets $ 952 $ 906 Noncurrent assets 4,141 4,148 Total assets $ 5,093 $ 5,054 Current liabilities $ 669 $ 1,048 Noncurrent liabilities 2,493 2,175 Total liabilities $ 3,162 $ 3,223 Our investment $ 1,071 $ 972 Net sales $ 4,421 $ 4,937 $ 4,480 Gross profit $ 1,767 $ 1,982 $ 1,823 Operating income $ 381 $ 473 $ 436 Net income attributable to PAS $ 181 $ 226 $ 212 Our investment in PAS, whi |
Debt Obligations and Commitment
Debt Obligations and Commitments | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Debt Obligations and Commitments | Note 9 Debt Obligations and Commitments 2009 2008 Short-term debt obligations Current maturities of long-term debt $ 102 $ 273 Commercial paper (0.7%) 846 Other borrowings (6.7% and 10.0%) 362 509 Amounts reclassified to long-term debt (1,259 ) $ 464 $ 369 Long-term debt obligations Short-term borrowings, reclassified $ $ 1,259 Notes due 2012-2026 (4.5% and 5.8%) 7,160 6,382 Zero coupon notes, $225 million due 2010-2012 (13.3%) 192 242 Other, due 2010-2019 (8.4% and 5.3%) 150 248 7,502 8,131 Less: current maturities of long-term debt obligations (102 ) (273 ) $ 7,400 $ 7,858 The interest rates in the above table reflect weighted-average rates at year-end. In the first quarter of 2009, we issued $1.0 billion of senior unsecured notes, bearing interest at 3.75%per year and maturing in 2014. We used the proceeds from the issuance of these notes for general corporate purposes. In the third quarter of 2009, we entered into a new 364-day unsecured revolving credit agreement which enables us to borrow up to $1.975 billion, subject to customary terms and conditions, and expires in June 2010. We may request renewal of this facility for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to one year, which would mature no later than June 2011. This agreement replaced a $1.8 billion 364-day unsecured revolving credit agreement we entered into during the fourth quarter of 2008. Funds borrowed under this agreement may be used to repay outstanding commercial paper issued by us or our subsidiaries and for other general corporate purposes, including working capital, capital investments and acquisitions. This agreement is in addition to our existing $2.0 billion unsecured revolving credit agreement which expires in 2012. Our lines of credit remain unused as of December26, 2009. In addition, as of December26, 2009, $396 million of our debt related to borrowings from various lines of credit that are maintained for our international divisions. These lines of credit are subject to normal banking terms and conditions and are fully committed to the extent of our borrowings. Subsequent to year-end 2009, we issued $4.25 billion of fixed and floating rate notes. The issuance was comprised of $1.25 billion of floating rate notes maturing in 2011 (the 2011 Floating Rates Notes), $1.0 billion of 3.10% senior unsecured notes maturing in 2015, $1.0 billion of 4.50% senior unsecured notes maturing in 2020 and $1.0 billion of 5.50% senior unsecured notes maturing in 2040. The 2011 Floating Rate Notes bear interest at a rate equal to the three-month London Inter-Bank Offered Rate (LIBOR) plus 3 basis points. We intend to use the net proceeds from this offering to finance a portion of the purchase price for the mergers with PBG and PAS and to pay related fees and expenses in connection with the mergers with PBG and |
Financial Instruments
Financial Instruments | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Financial Instruments | Note 10 Financial Instruments In March 2008, the FASB issued new disclosure guidance on derivative instruments and hedging activities, which amends and expands the disclosure requirements of previously issued guidance on accounting for derivative instruments and hedging activities, to provide an enhanced understanding of the use of derivative instruments, how they are accounted for and their effect on financial position, financial performance and cash flows. We adopted the disclosure provisions of the new guidance in the first quarter of 2009. We are exposed to market risks arising from adverse changes in: commodity prices, affecting the cost of our raw materials and energy, foreign exchange risks, and interest rates. In the normal course of business, we manage these risks through a variety of strategies, including the use of derivatives. Certain derivatives are designated as either cash flow or fair value hedges and qualify for hedge accounting treatment, while others do not qualify and are marked to market through earnings. Cash flows from derivatives used to manage commodity, foreign exchange or interest risks are classified as operating activities. See Our Business Risks in Managements Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our business risks. For cash flow hedges, changes in fair value are deferred in accumulated other comprehensive loss within common shareholders equity until the underlying hedged item is recognized in net income. For fair value hedges, changes in fair value are recognized immediately in earnings, consistent with the underlying hedged item. Hedging transactions are limited to an underlying exposure. As a result, any change in the value of our derivative instruments would be substantially offset by an opposite change in the value of the underlying hedged items. Hedging ineffectiveness and a net earnings impact occur when the change in the value of the hedge does not offset the change in the value of the underlying hedged item. Ineffectiveness of our hedges is not material. If the derivative instrument is terminated, we continue to defer the related gain or loss and then include it as a component of the cost of the underlying hedged item. Upon determination that the underlying hedged item will not be part of an actual transaction, we recognize the related gain or loss in net income immediately. We also use derivatives that do not qualify for hedge accounting treatment. We account for such derivatives at market value with the resulting gains and losses reflected in our income statement. We do not use derivative instruments for trading or speculative purposes. We perform assessments of our counterparty credit risk regularly, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Based on our most recent assessment of our counterparty credit risk, we consider this risk to be low. In addition, we enter into derivative contracts with a variety of financial institutions that we believe are creditworthy in order to reduce our concentration of credi |
Net Income Attributable to Peps
Net Income Attributable to PepsiCo per Common Share | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Net Income Attributable to PepsiCo per Common Share | Note 11 Net Income Attributable to PepsiCo per Common Share Basic net income attributable to PepsiCo per common share is net income available for PepsiCo common shareholders divided by the weighted average of common shares outstanding during the period. Diluted net income attributable to PepsiCo per common share is calculated using the weighted average of common shares outstanding adjusted to include the effect that would occur if in-the-money employee stock options were exercised and RSUs and preferred shares were converted into common shares. Options to purchase 39.0million shares in 2009, 9.8million shares in 2008 and 2.7million shares in 2007 were not included in the calculation of diluted earnings per common share because these options were out-of-the-money. Out-of-the-money options had average exercise prices of $61.52 in 2009, $67.59 in 2008 and $65.18 in 2007. The computations of basic and diluted net income attributable to PepsiCo per common share are as follows: 2009 2008 2007 Income Shares(a) Income Shares(a) Income Shares(a) Net income attributable to PepsiCo $ 5,946 $ 5,142 $ 5,658 Preferred shares: Dividends (1 ) (2 ) (2 ) Redemption premium (5 ) (6 ) (10 ) Net income available for PepsiCo common shareholders $ 5,940 1,558 $ 5,134 1,573 $ 5,646 1,621 Basic net income attributable to PepsiCo per common share $ 3.81 $ 3.26 $ 3.48 Net income available for PepsiCo common shareholders $ 5,940 1,558 $ 5,134 1,573 $ 5,646 1,621 Dilutive securities: Stock options and RSUs 17 27 35 ESOP convertible preferred stock 6 2 8 2 12 2 Diluted $ 5,946 1,577 $ 5,142 1,602 $ 5,658 1,658 Diluted net income attributable to PepsiCo per common share $ 3.77 $ 3.21 $ 3.41 (a) Weighted-average common shares outstanding. |
Preferred Stock
Preferred Stock | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Preferred Stock | Note 12 Preferred Stock As of December26, 2009 and December27, 2008, there were 3million shares of convertible preferred stock authorized. The preferred stock was issued only for an ESOP established by Quaker and these shares are redeemable for common stock by the ESOP participants. The preferred stock accrues dividends at an annual rate of $5.46 per share. At year-end 2009 and 2008, there were 803,953 preferred shares issued and 243,553 and 266,253 shares outstanding, respectively. The outstanding preferred shares had a fair value of $73 million as of December26, 2009 and $72 million as of December27, 2008. Each share is convertible at the option of the holder into 4.9625 shares of common stock. The preferred shares may be called by us upon written notice at $78 per share plus accrued and unpaid dividends. Quaker made the final award to its ESOP plan in June 2001. 2009 2008 2007 Shares Amount Shares Amount Shares Amount Preferred stock 0.8 $ 41 0.8 $ 41 0.8 $ 41 Repurchased preferred stock Balance, beginning of year 0.5 $ 138 0.5 $ 132 0.5 $ 120 Redemptions 0.1 7 6 12 Balance, end of year 0.6 $ 145 0.5 $ 138 0.5 $ 132 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss Attributable to PepsiCo | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Accumulated Other Comprehensive Loss Attributable to PepsiCo | Note 13 Accumulated Other Comprehensive Loss Attributable to PepsiCo Comprehensive income is a measure of income which includes both net income and other comprehensive income or loss. Other comprehensive income or loss results from items deferred from recognition into our income statement. Accumulated other comprehensive loss is separately presented on our balance sheet as part of common shareholders equity. Other comprehensive income/(loss) attributable to PepsiCo was $900 million in 2009, $(3,793) million in 2008 and $1,294 million in 2007. The accumulated balances for each component of other comprehensive loss attributable to PepsiCo were as follows: 2009 2008 2007 Currency translation adjustment $ (1,471 ) $ (2,271 ) $ 213 Cash flow hedges, net of tax(a) (42 ) (14 ) (35 ) Unamortized pension and retiree medical, net of tax(b) (2,328 ) (2,435 ) (1,183 ) Unrealized gain on securities, net of tax 47 28 49 Other (2 ) 4 Accumulated other comprehensive loss attributable to PepsiCo $ (3,794 ) $ (4,694 ) $ (952 ) (a) Includes $23 million after-tax gain in 2009, $17 million after-tax loss in 2008 and $3 million after-tax gain in 2007 for our share of our equity investees accumulated derivative activity. (b) Net of taxes of $1,211 million in 2009, $1,288 million in 2008 and $645 million in 2007. Includes $51 million decrease to the opening balance of accumulated other comprehensive loss attributable to PepsiCo in 2008 due to the change in measurement date. See Note 7. |
Supplemental Financial Informat
Supplemental Financial Information | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Supplemental Financial Information | Note 14 Supplemental Financial Information 2009 2008 2007 Accounts receivable Trade receivables $ 4,026 $ 3,784 Other receivables 688 969 4,714 4,753 Allowance, beginning of year 70 69 $ 64 Net amounts charged to expense 40 21 5 Deductions (a) (21 ) (16 ) (7 ) Other (b) 1 (4 ) 7 Allowance, end of year 90 70 $ 69 Net receivables $ 4,624 $ 4,683 Inventories (c) Raw materials $ 1,274 $ 1,228 Work-in-process 165 169 Finished goods 1,179 1,125 $ 2,618 $ 2,522 2009 2008 Other assets Noncurrent notes and accounts receivable $ 118 $ 115 Deferred marketplace spending 182 219 Unallocated purchase price for recent acquisitions 143 1,594 Pension plans 64 28 Other 458 702 $ 965 $ 2,658 Accounts payable and other current liabilities Accounts payable $ 2,881 $ 2,846 Accrued marketplace spending 1,656 1,574 Accrued compensation and benefits 1,291 1,269 Dividends payable 706 660 Other current liabilities 1,593 1,924 $ 8,127 $ 8,273 2009 2008 2007 Other supplemental information Rent expense $ 412 $ 357 $ 303 Interest paid $ 456 $ 359 $ 251 Income taxes paid, net of refunds $ 1,498 $ 1,477 $ 1,731 Acquisitions(a) Fair value of assets acquired $ 851 $ 2,907 $ 1,611 Cash paid (466 ) (1,925 ) (1,320 ) Liabilities and noncontrolling interests assumed $ 385 $ 982 $ 291 (a) During 2008, together with PBG, we jointly acquired Lebedyansky, for a total purchase price of $1.8 billion. Lebedyansky is owned 25% and 75% by PBG and us, respectively. |
Acquisition of Common Stock of
Acquisition of Common Stock of PBG and PAS | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Acquisition of Common Stock of PBG and PAS | Note 15 Acquisition of Common Stock of PBG and PAS On August3, 2009, we entered into the PBG Merger Agreement and the PAS Merger Agreement. The PBG Merger Agreement provides that, upon the terms and subject to the conditions set forth in the PBG Merger Agreement, PBG will be merged with and into Metro (the PBG Merger), with Metro continuing as the surviving corporation and our wholly owned subsidiary. At the effective time of the PBG Merger, each share of PBG common stock outstanding immediately prior to the effective time not held by us or any of our subsidiaries will be converted into the right to receive either 0.6432 of a share of PepsiCo common stock or, at the election of the holder, $36.50 in cash, without interest, and in each case subject to proration procedures which provide that we will pay cash for a number of shares equal to 50% of the PBG common stock outstanding immediately prior to the effective time of the PBG Merger not held by us or any of our subsidiaries and issue shares of PepsiCo common stock for the remaining 50% of such shares. Each share of PBG common stock held by PBG as treasury stock, held by us or held by Metro, and each share of PBG Class B common stock held by us or Metro, in each case immediately prior to the effective time of the PBG Merger, will be canceled, and no payment will be made with respect thereto. Each share of PBG common stock and PBG Class B common stock owned by any subsidiary of ours other than Metro immediately prior to the effective time of the PBG Merger will automatically be converted into the right to receive 0.6432 of a share of PepsiCo common stock. The PAS Merger Agreement provides that, upon the terms and subject to the conditions set forth in the PAS Merger Agreement, PAS will be merged with and into Metro (the PAS Merger, and together with the PBG Merger, the Mergers), with Metro continuing as the surviving corporation and our wholly owned subsidiary. At the effective time of the PAS Merger, each share of PAS common stock outstanding immediately prior to the effective time not held by us or any of our subsidiaries will be converted into the right to receive either 0.5022 of a share of PepsiCo common stock or, at the election of the holder, $28.50 in cash, without interest, and in each case subject to proration procedures which provide that we will pay cash for a number of shares equal to 50% of the PAS common stock outstanding immediately prior to the effective time of the PAS Merger not held by us or any of our subsidiaries and issue shares of PepsiCo common stock for the remaining 50% of such shares. Each share of PAS common stock held by PAS as treasury stock, held by us or held by Metro, in each case, immediately prior to the effective time of the PAS Merger, will be canceled, and no payment will be made with respect thereto. Each share of PAS common stock owned by any subsidiary of ours other than Metro immediately prior to the effective time of the PAS Merger will automatically be converted into the right to receive 0.5022 of a share of PepsiCo common stock. On February 17, 2010, the stockholders of PBG and PAS approved the PBG and PAS Mergers, respectively. Con |
Document Information
Document Information | |
12 Months Ended
Dec. 26, 2009 USD / shares | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-26 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 26, 2009 | Feb. 12, 2010
| Jun. 12, 2009
| |
Trading Symbol | PEP | ||
Entity Registrant Name | PEPSICO INC | ||
Entity Central Index Key | 0000077476 | ||
Current Fiscal Year End Date | --12-26 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,569,900,714 | ||
Entity Public Float | $94,258,682,675 |