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Basis of Presentation and Our Divisions (Tables) | 12 Months Ended
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Dec. 26, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Fiscal Period | Our fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six years. While our North America results are reported on a weekly calendar basis, substantially all of our international operations report on a monthly calendar basis. Certain operations in our Europe segment report on a weekly calendar basis. The following chart details our quarterly reporting schedule for the three years presented:
Quarter |  | United States 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
Share Based Compensation Percentage Allocation by Division [Table Text Block] | Share-Based Compensation Expense Our divisions are held accountable for share-based compensation expense and, therefore, this expense is allocated to our divisions as an incremental employee compensation cost. The allocation of share-based compensation expense of each division is as follows:
| 2020 |  | 2019 |  | 2018
FLNA | 13 | % |  | 13 | % |  | 13 | %
QFNA | 1 | % |  | 1 | % |  | 1 | %
PBNA | 18 | % |  | 17 | % |  | 18 | %
LatAm | 6 | % |  | 7 | % |  | 8 | %
Europe | 16 | % |  | 17 | % |  | 9 | %
AMESA | 6 | % |  | 3 | % |  | 4 | %
APAC | 2 | % |  | 5 | % |  | 4 | %
Corporate unallocated expenses | 38 | % |  | 37 | % |  | 43 | %
The expense allocated to our divisions excludes any impact of changes in our assumptions during the year which reflect market conditions over which division management has no control. Therefore, any variances between allocated expense and our actual expense are recognized in corporate unallocated expenses.
Schedule of Segment Reporting Information, by Segment | Net revenue and operating profit of each division are as follows:
| Net Revenue |  | Operating Profit
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
FLNA | $ | 18,189 |  |  | $ | 17,078 |  |  | $ | 16,346 |  |  | $ | 5,340 |  |  | $ | 5,258 |  |  | $ | 5,008 |
QFNA | 2,742 |  |  | 2,482 |  |  | 2,465 |  |  | 669 |  |  | 544 |  |  | 637 |
PBNA | 22,559 |  |  | 21,730 |  |  | 21,072 |  |  | 1,937 |  |  | 2,179 |  |  | 2,276 |
LatAm | 6,942 |  |  | 7,573 |  |  | 7,354 |  |  | 1,033 |  |  | 1,141 |  |  | 1,049 |
Europe | 11,922 |  |  | 11,728 |  |  | 10,973 |  |  | 1,353 |  |  | 1,327 |  |  | 1,256 |
AMESA (a) | 4,573 |  |  | 3,651 |  |  | 3,657 |  |  | 600 |  |  | 671 |  |  | 661 |
APAC (b) | 3,445 |  |  | 2,919 |  |  | 2,794 |  |  | 590 |  |  | 477 |  |  | 619 |
Total division | 70,372 |  |  | 67,161 |  |  | 64,661 |  |  | 11,522 |  |  | 11,597 |  |  | 11,506 |
Corporate unallocated expenses | — |  |  | — |  |  | — |  |  | (1,442) |  |  | (1,306) |  |  | (1,396) |
Total | $ | 70,372 |  |  | $ | 67,161 |  |  | $ | 64,661 |  |  | $ | 10,080 |  |  | $ | 10,291 |  |  | $ | 10,110 |
(a)In 2020, the increase in net revenue primarily reflects our acquisition of Pioneer Foods. See Note 14 for further information. (b)In 2020, the increase in net revenue primarily reflects our acquisition of Be & Cheery. See Note 14 for further information. Our primary performance obligation is the distribution and sales of beverage and food and snack products to our customers. The following tables reflect the approximate percentage of net revenue generated between our beverage business and our food and snack business for each of our international divisions, as well as our consolidated net revenue:
| 2020 |  | 2019 |  | 2018
| Beverage(a) |  | Food/Snack |  | Beverage(a) |  | Food/Snack |  | Beverage(a) |  | Food/Snack
LatAm | 10 | % |  | 90 | % |  | 10 | % |  | 90 | % |  | 10 | % |  | 90 | %
Europe | 55 | % |  | 45 | % |  | 55 | % |  | 45 | % |  | 50 | % |  | 50 | %
AMESA (b) | 30 | % |  | 70 | % |  | 40 | % |  | 60 | % |  | 45 | % |  | 55 | %
APAC | 25 | % |  | 75 | % |  | 25 | % |  | 75 | % |  | 25 | % |  | 75 | %
PepsiCo | 45 | % |  | 55 | % |  | 45 | % |  | 55 | % |  | 45 | % |  | 55 | %
(a)Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and Europe segments, is approximately 40% of our consolidated net revenue in 2020, 2019 and 2018. Generally, our finished goods beverage operations produce higher net revenue, but lower operating margins as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages. (b)The increase in the approximate percentage of net revenue generated by our food and snack business primarily reflects our acquisition of Pioneer Foods. See Note 14 for further information. Operating profit in 2020 includes certain pre-tax charges taken as a result of the COVID-19 pandemic. These pre-tax charges by division are as follows:
| 2020
| Allowances for Expected Credit Losses(a) |  | Upfront Payments to Customers(b) |  | Inventory Write-Downs and Product Returns(c) |  | Employee Compensation Expense(d) |  | Employee Protection Costs(e) |  | Other(f) |  | Total
FLNA | $ | 17 |  |  | $ | — |  |  | $ | 8 |  |  | $ | 145 |  |  | $ | 59 |  |  | $ | — |  |  | $ | 229 |
QFNA | 2 |  |  | — |  |  | — |  |  | 9 |  |  | 3 |  |  | 1 |  |  | 15 |
PBNA | 29 |  |  | 56 |  |  | 28 |  |  | 115 |  |  | 50 |  |  | 26 |  |  | 304 |
LatAm | 1 |  |  | — |  |  | 19 |  |  | 56 |  |  | 18 |  |  | 8 |  |  | 102 |
Europe | 5 |  |  | 3 |  |  | 11 |  |  | 23 |  |  | 22 |  |  | 24 |  |  | 88 |
AMESA | 2 |  |  | — |  |  | 3 |  |  | 9 |  |  | 7 |  |  | 12 |  |  | 33 |
APAC (g) | — |  |  | — |  |  | 3 |  |  | (7) |  |  | 2 |  |  | 5 |  |  | 3 |
Total | $ | 56 |  |  | $ | 59 |  |  | $ | 72 |  |  | $ | 350 |  |  | $ | 161 |  |  | $ | 76 |  |  | $ | 774 |
(a)Reflects the expected impact of the global economic uncertainty caused by COVID-19, leveraging estimates of creditworthiness, projections of default and recovery rates for certain of our customers, including foodservice and vending businesses. (b)Relates to promotional spending for which benefit is not expected to be received. (c)Includes a reserve for product returns of $20 million. (d)Includes incremental frontline incentive pay, crisis child care and other leave benefits and labor costs. (e)Includes costs associated with personal protective equipment, temperature scans, cleaning and other sanitization services. (f)Includes reserves for property, plant and equipment, donations of cash and product and other costs. (g)Income amount includes a social welfare relief credit of $11 million.
Segment Reporting Information By Total Assets And Capital Spending | Total assets and capital spending of each division are as follows:
| Total Assets |  | Capital Spending
| 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2018
FLNA | $ | 8,730 |  |  | $ | 7,519 |  |  | $ | 1,189 |  |  | $ | 1,227 |  |  | $ | 840 |
QFNA | 1,021 |  |  | 941 |  |  | 85 |  |  | 104 |  |  | 53 |
PBNA (a) | 37,079 |  |  | 31,449 |  |  | 1,245 |  |  | 1,053 |  |  | 945 |
LatAm | 6,977 |  |  | 7,007 |  |  | 390 |  |  | 557 |  |  | 492 |
Europe | 17,917 |  |  | 17,814 |  |  | 730 |  |  | 613 |  |  | 466 |
AMESA (b) | 5,942 |  |  | 3,672 |  |  | 252 |  |  | 267 |  |  | 198 |
APAC (c) | 5,770 |  |  | 4,113 |  |  | 230 |  |  | 195 |  |  | 138 |
Total division | 83,436 |  |  | 72,515 |  |  | 4,121 |  |  | 4,016 |  |  | 3,132 |
Corporate (d) | 9,482 |  |  | 6,032 |  |  | 119 |  |  | 216 |  |  | 150 |
Total | $ | 92,918 |  |  | $ | 78,547 |  |  | $ | 4,240 |  |  | $ | 4,232 |  |  | $ | 3,282 |
(a)In 2020, the increase in assets was primarily related to our acquisition of Rockstar. See Note 14 for further information. (b)In 2020, the increase in assets was primarily related to our acquisition of Pioneer Foods. See Note 14 for further information. (c)In 2020, the increase in assets was primarily related to our acquisition of Be & Cheery. See Note 14 for further information. (d)Corporate assets consist principally of certain cash and cash equivalents, restricted cash, short-term investments, derivative instruments, property, plant and equipment and tax assets. In 2020, the change in assets was primarily due to an increase in cash and cash equivalents and short-term investments. Refer to the cash flow statement for further information.
Segment Reporting Information By Amortization Of Intangible Assets And Depreciation And Other Amortization | Amortization of intangible assets and depreciation and other amortization of each division are as follows:
| Amortization of Intangible Assets |  | Depreciation and Other Amortization
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
FLNA | $ | 10 |  |  | $ | 7 |  |  | $ | 7 |  |  | $ | 550 |  |  | $ | 492 |  |  | $ | 457 |
QFNA | — |  |  | — |  |  | — |  |  | 41 |  |  | 44 |  |  | 45 |
PBNA | 28 |  |  | 29 |  |  | 31 |  |  | 899 |  |  | 857 |  |  | 821 |
LatAm | 4 |  |  | 5 |  |  | 5 |  |  | 251 |  |  | 270 |  |  | 253 |
Europe | 40 |  |  | 37 |  |  | 23 |  |  | 350 |  |  | 341 |  |  | 319 |
AMESA | 3 |  |  | 2 |  |  | 2 |  |  | 149 |  |  | 116 |  |  | 169 |
APAC | 5 |  |  | 1 |  |  | 1 |  |  | 91 |  |  | 76 |  |  | 80 |
Total division | 90 |  |  | 81 |  |  | 69 |  |  | 2,331 |  |  | 2,196 |  |  | 2,144 |
Corporate | — |  |  | — |  |  | — |  |  | 127 |  |  | 155 |  |  | 186 |
Total | $ | 90 |  |  | $ | 81 |  |  | $ | 69 |  |  | $ | 2,458 |  |  | $ | 2,351 |  |  | $ | 2,330 |
Segment Reporting Information By Net Revenue And Long-Lived Assets | Net revenue and long-lived assets by country are as follows:
| Net Revenue |  | Long-Lived Assets(a)
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019
United States (b) | $ | 40,800 |  |  | $ | 38,644 |  |  | $ | 37,148 |  |  | $ | 36,657 |  |  | $ | 30,601 |
Mexico | 3,924 |  |  | 4,190 |  |  | 3,878 |  |  | 1,708 |  |  | 1,666 |
Russia | 3,009 |  |  | 3,263 |  |  | 3,191 |  |  | 3,644 |  |  | 4,314 |
Canada | 2,989 |  |  | 2,831 |  |  | 2,736 |  |  | 2,794 |  |  | 2,695 |
United Kingdom | 1,882 |  |  | 1,723 |  |  | 1,743 |  |  | 874 |  |  | 827 |
China (c) | 1,732 |  |  | 1,300 |  |  | 1,164 |  |  | 1,649 |  |  | 705 |
South Africa (d) | 1,282 |  |  | 405 |  |  | 432 |  |  | 1,484 |  |  | 137 |
All other countries | 14,754 |  |  | 14,805 |  |  | 14,369 |  |  | 13,423 |  |  | 12,587 |
Total | $ | 70,372 |  |  | $ | 67,161 |  |  | $ | 64,661 |  |  | $ | 62,233 |  |  | $ | 53,532 |
(a)Long-lived assets represent property, plant and equipment, indefinite-lived intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. See Note 2 and Note 15 for further information on property, plant and equipment. See Note 2 and Note 4 for further information on goodwill and other intangible assets. Investments in noncontrolled affiliates are evaluated for impairment upon a significant change in the operating or macroeconomic environment. These assets are reported in the country where they are primarily used. (b)In 2020, the increase in long-lived assets was primarily related to our acquisition of Rockstar. See Note 14 for further information. (c)In 2020, the increase in net revenue and long-lived assets was primarily related to our acquisition of Be & Cheery. See Note 14 for further information. (d)In 2020, the increase in net revenue and long-lived assets was primarily related to our acquisition of Pioneer Foods. See Note 14 for further information.

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