XML 34 R16.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Debt Obligations and Commitments | 12 Months Ended
--- | ---
Dec. 29, 2018
Debt Obligations and Commitments [Abstract] |
Debt Obligations And Commitments | Debt Obligations The following table summarizes the Company’s debt obligations:
| 2018(a) |  |  | 2017(a) |
Short-term debt obligations (b) |  |  |
Current maturities of long-term debt | $ | 3,953 |  |  | $ | 4,020 |
Commercial paper (1.3%) | — |  |  | 1,385 |
Other borrowings (6.0% and 4.7%) | 73 |  |  | 80 |
| $ | 4,026 |  |  | $ | 5,485 |
Long-term debt obligations (b) |  |  |
Notes due 2018 (2.4%) | $ | — |  |  | $ | 4,016 |
Notes due 2019 (3.1% and 2.1%) | 3,948 |  |  | 3,933 |
Notes due 2020 (3.9% and 3.1%) | 3,784 |  |  | 3,792 |
Notes due 2021 (3.1% and 2.4%) | 3,257 |  |  | 3,300 |
Notes due 2022 (2.8% and 2.6%) | 3,802 |  |  | 3,853 |
Notes due 2023 (2.9% and 2.4%) | 1,270 |  |  | 1,257 |
Notes due 2024-2047 (3.7% and 3.8%) | 16,161 |  |  | 17,634 |
Other, due 2018-2026 (1.3% and 1.3%) | 26 |  |  | 31 |
| 32,248 |  |  | 37,816 |
Less: current maturities of long-term debt obligations | (3,953 | ) |  | (4,020 | )
Total | $ | 28,295 |  |  | $ | 33,796 |
(a) | Amounts are shown net of unamortized net discounts of $119 million and $155 million for 2018 and 2017, respectively.
(b) | The interest rates presented reflect weighted-average effective interest rates at year-end. Certain of our fixed rate indebtedness have been swapped to floating rates through the use of interest rate derivative instruments. See Note 9 for additional information regarding our interest rate derivative instruments.
As of December 29, 2018, our international debt of $62 million was related to borrowings from external parties including various lines of credit. These lines of credit are subject to normal banking terms and conditions and are fully committed at least to the extent of our borrowings. In 2018, we completed a cash tender offer for certain notes issued by PepsiCo and predecessors to a PepsiCo subsidiary for $1.6 billion in cash to redeem the following amounts:
Interest Rate |  | Maturity Date |  | Amount Tendered
7.290 | % |  | September 2026 |  | $ | 11 |
7.440 | % |  | September 2026 |  | $ | 4 |
7.000 | % |  | March 2029 |  | $ | 357 |
5.500 | % |  | May 2035 |  | $ | 138 |
4.875 | % |  | November 2040 |  | $ | 410 |
5.500 | % |  | January 2040 |  | $ | 408 |
We also completed an exchange offer for certain notes issued by predecessors to a PepsiCo subsidiary for the following newly issued PepsiCo notes. These notes were issued in an aggregate principal amount equal to the exchanged notes:
Interest Rate |  | Maturity Date |  | Amount
7.290 | % |  | September 2026 |  | $ | 88 |
7.440 | % |  | September 2026 |  | $ | 21 |
7.000 | % |  | March 2029 |  | $ | 516 |
5.500 | % |  | May 2035 |  | $ | 107 |
As a result of the above transactions, we recorded a pre-tax charge of $253 million ($191 million after-tax or $0.13 per share) to interest expense, primarily representing the tender price paid over the carrying value of the tendered notes. See further unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. In 2018, we entered into a new five-year unsecured revolving credit agreement (Five-Year Credit Agreement) which expires on June 4, 2023. The Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.75 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 2018, we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit Agreement) which expires on June 3, 2019. The 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.75 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 $3.75 billion five-year credit agreement and our $3.75 billion 364-day credit agreement, both dated as of June 5, 2017. 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 December 29, 2018, there were no outstanding borrowings under the Five-Year Credit Agreement or the 364-Day Credit Agreement. In 2016, we paid $2.5 billion to redeem all of our outstanding 7.900% senior notes due 2018 and 5.125% senior notes due 2019 for the principal amounts of $1.5 billion and $750 million, respectively, and terminated certain interest rate swaps. As a result, we recorded a pre-tax charge of $233 million ($156 million after-tax or $0.11 per share) to interest expense, primarily representing the premium paid in accordance with the “make-whole” redemption provisions. See further unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. See “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our borrowings and long-term contractual commitments.

X
- Definition Debt obligations and commitments + References No definition available. + Details
Name: | pep_DebtObligationsAndCommitments
Namespace Prefix: | pep_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Debt Obligations and Commitments [Abstract] + References No definition available. + Details
Name: | pep_DebtObligationsAndCommitmentsAbstract
Namespace Prefix: | pep_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration