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Basis of Presentation and Our Divisions (Tables) | 12 Months Ended
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Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Fiscal Period | Our fiscal year ends on the last Saturday of each December, resulting in a 53 rd reporting week every five or six years, including in our 2022 financial results. While our North America financial results are reported on a weekly calendar basis, substantially all of our international operations reported on a monthly calendar basis prior to the fourth quarter of 2021. Beginning in the fourth quarter of 2021, all of our international operations reported on a monthly calendar basis. This change did not have a material impact on our consolidated financial statements. The following chart details our quarterly reporting schedule for 2022, reflecting the additional week in the fourth quarter:
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 |  | 17 weeks |  | September, October, November and December
Share Based Compensation Percentage Allocation by Division [Table Text Block] | The allocation of share-based compensation expense of each division is as follows:
| 2022 |  | 2021 |  | 2020
FLNA | 13 | % |  | 13 | % |  | 13 | %
QFNA | 1 | % |  | 1 | % |  | 1 | %
PBNA | 20 | % |  | 19 | % |  | 18 | %
LatAm | 6 | % |  | 5 | % |  | 6 | %
Europe | 11 | % |  | 13 | % |  | 16 | %
AMESA | 5 | % |  | 6 | % |  | 6 | %
APAC | 3 | % |  | 2 | % |  | 2 | %
Corporate unallocated expenses | 41 | % |  | 41 | % |  | 38 | %
Schedule of Segment Reporting Information, by Segment | Net revenue and operating profit/(loss) of each division are as follows:
| Net Revenue |  | Operating Profit/(Loss)
| 2022 |  | 2021 |  | 2020 |  | 2022(a) |  | 2021 |  | 2020
FLNA | $ | 23,291 |  |  | $ | 19,608 |  |  | $ | 18,189 |  |  | $ | 6,135 |  |  | $ | 5,633 |  |  | $ | 5,340 |
QFNA | 3,160 |  |  | 2,751 |  |  | 2,742 |  |  | 604 |  |  | 578 |  |  | 669 |
PBNA (b) | 26,213 |  |  | 25,276 |  |  | 22,559 |  |  | 5,426 |  |  | 2,442 |  |  | 1,937 |
LatAm | 9,779 |  |  | 8,108 |  |  | 6,942 |  |  | 1,627 |  |  | 1,369 |  |  | 1,033 |
Europe (b) | 12,724 |  |  | 13,038 |  |  | 11,922 |  |  | (1,380) |  |  | 1,292 |  |  | 1,353 |
AMESA (c) | 6,438 |  |  | 6,078 |  |  | 4,573 |  |  | 666 |  |  | 858 |  |  | 600 |
APAC (c) | 4,787 |  |  | 4,615 |  |  | 3,445 |  |  | 537 |  |  | 673 |  |  | 590 |
Total division | 86,392 |  |  | 79,474 |  |  | 70,372 |  |  | 13,615 |  |  | 12,845 |  |  | 11,522 |
Corporate unallocated expenses | — |  |  | — |  |  | — |  |  | (2,103) |  |  | (1,683) |  |  | (1,442) |
Total | $ | 86,392 |  |  | $ | 79,474 |  |  | $ | 70,372 |  |  | $ | 11,512 |  |  | $ | 11,162 |  |  | $ | 10,080 |
(a)See below for impairment and other charges taken related to the Russia-Ukraine conflict, brand portfolio impairment and other impairment. (b)In 2022, we recorded a gain of $3,029 million and $292 million in our PBNA and Europe divisions, respectively, associated with the Juice Transaction. The total after-tax amount was $2,888 million or $2.08 per share. See Note 13 for further information. (c)In 2021, the increase in net revenue in our AMESA and APAC divisions reflect our acquisitions of Pioneer Foods and Be & Cheery, respectively. See Note 13 for further information. Disaggregation of Net Revenue Our primary performance obligation is the distribution and sales of beverage and convenient food products to our customers. The following table reflects the approximate percentage of net revenue generated between our beverage business and our convenient food business for each of our international divisions, as well as our consolidated net revenue:
| 2022 |  | 2021 |  | 2020
| Beverages(a) |  | Convenient Foods |  | Beverages(a) |  | Convenient Foods |  | Beverages(a) |  | Convenient Foods
LatAm | 10 | % |  | 90 | % |  | 10 | % |  | 90 | % |  | 10 | % |  | 90 | %
Europe | 50 | % |  | 50 | % |  | 55 | % |  | 45 | % |  | 55 | % |  | 45 | %
AMESA | 30 | % |  | 70 | % |  | 30 | % |  | 70 | % |  | 30 | % |  | 70 | %
APAC | 25 | % |  | 75 | % |  | 20 | % |  | 80 | % |  | 25 | % |  | 75 | %
PepsiCo | 40 | % |  | 60 | % |  | 45 | % |  | 55 | % |  | 45 | % |  | 55 | %
(a)Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and Europe divisions, is approximately 35% of our consolidated net revenue in 2022 and approximately 40% of our consolidated net revenue in 2021 and 2020. 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
Schedule of Unusual or Infrequent Items, or Both | Operating profit includes certain pre-tax charges taken as a result of the COVID-19 pandemic related to incremental employee compensation costs, such as certain leave benefits and labor costs, employee protection costs, allowances for expected credit losses and upfront payments to customers and their related adjustments for changes in estimates as conditions improve, inventory write-downs, product returns and other expenses. These pre-tax charges by division are as follows:
| COVID-19 charges
| 2022 |  | 2021 |  | 2020
FLNA | $ | 25 |  |  | $ | 56 |  |  | $ | 229 |
QFNA | 1 |  |  | 2 |  |  | 15 |
PBNA (a) | 23 |  |  | (11) |  |  | 304 |
LatAm | 15 |  |  | 64 |  |  | 102 |
Europe | 5 |  |  | 21 |  |  | 88 |
AMESA | 5 |  |  | 7 |  |  | 33 |
APAC | 21 |  |  | 9 |  |  | 3 |
Total | $ | 95 |  |  | $ | 148 |  |  | $ | 774 |
(a)Income amount primarily relates to adjustments for changes in estimates of allowances for expected credit losses and upfront payments to customers, due to improved projected default rates and lower at-risk balances.
Segment Reporting Information By Total Assets And Capital Spending | Total assets and capital spending of each division are as follows:
| Total Assets |  | Capital Spending
| 2022 |  | 2021 |  | 2022 |  | 2021 |  | 2020
FLNA | $ | 11,042 |  |  | $ | 9,763 |  |  | $ | 1,464 |  |  | $ | 1,411 |  |  | $ | 1,189 |
QFNA | 1,245 |  |  | 1,101 |  |  | 93 |  |  | 92 |  |  | 85 |
PBNA | 40,286 |  |  | 37,801 |  |  | 1,714 |  |  | 1,275 |  |  | 1,245 |
LatAm | 7,886 |  |  | 7,272 |  |  | 581 |  |  | 461 |  |  | 390 |
Europe | 16,230 |  |  | 18,472 |  |  | 668 |  |  | 752 |  |  | 730 |
AMESA | 6,143 |  |  | 6,125 |  |  | 307 |  |  | 325 |  |  | 252 |
APAC | 5,452 |  |  | 5,654 |  |  | 241 |  |  | 203 |  |  | 230 |
Total division | 88,284 |  |  | 86,188 |  |  | 5,068 |  |  | 4,519 |  |  | 4,121 |
Corporate (a) | 3,903 |  |  | 6,189 |  |  | 139 |  |  | 106 |  |  | 119 |
Total | $ | 92,187 |  |  | $ | 92,377 |  |  | $ | 5,207 |  |  | $ | 4,625 |  |  | $ | 4,240 |
(a)Corporate assets consist principally of certain cash and cash equivalents, restricted cash, short-term investments, derivative instruments, property, plant and equipment, pension plan assets and tax assets. In 2022, the change in assets was primarily due to a decrease in cash and cash equivalents.
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
| 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
FLNA | $ | 11 |  |  | $ | 11 |  |  | $ | 10 |  |  | $ | 653 |  |  | $ | 594 |  |  | $ | 550 |
QFNA | — |  |  | — |  |  | — |  |  | 47 |  |  | 46 |  |  | 41 |
PBNA | 22 |  |  | 25 |  |  | 28 |  |  | 930 |  |  | 926 |  |  | 899 |
LatAm | 3 |  |  | 4 |  |  | 4 |  |  | 306 |  |  | 283 |  |  | 251 |
Europe | 30 |  |  | 37 |  |  | 40 |  |  | 357 |  |  | 364 |  |  | 350 |
AMESA | 4 |  |  | 5 |  |  | 3 |  |  | 179 |  |  | 181 |  |  | 149 |
APAC | 8 |  |  | 9 |  |  | 5 |  |  | 92 |  |  | 102 |  |  | 91 |
Total division | 78 |  |  | 91 |  |  | 90 |  |  | 2,564 |  |  | 2,496 |  |  | 2,331 |
Corporate | — |  |  | — |  |  | — |  |  | 121 |  |  | 123 |  |  | 127 |
Total | $ | 78 |  |  | $ | 91 |  |  | $ | 90 |  |  | $ | 2,685 |  |  | $ | 2,619 |  |  | $ | 2,458 |
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)
| 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021
United States | $ | 49,390 |  |  | $ | 44,545 |  |  | $ | 40,800 |  |  | $ | 38,240 |  |  | $ | 36,324 |
Mexico | 5,472 |  |  | 4,580 |  |  | 3,924 |  |  | 1,933 |  |  | 1,720 |
Russia | 4,118 |  |  | 3,426 |  |  | 3,009 |  |  | 2,538 |  |  | 3,751 |
Canada | 3,536 |  |  | 3,405 |  |  | 2,989 |  |  | 2,678 |  |  | 2,846 |
China (b) | 2,752 |  |  | 2,679 |  |  | 1,732 |  |  | 1,517 |  |  | 1,745 |
United Kingdom | 1,844 |  |  | 2,102 |  |  | 1,882 |  |  | 847 |  |  | 906 |
South Africa (c) | 1,837 |  |  | 2,008 |  |  | 1,282 |  |  | 1,327 |  |  | 1,389 |
All other countries | 17,443 |  |  | 16,729 |  |  | 14,754 |  |  | 12,885 |  |  | 13,399 |
Total | $ | 86,392 |  |  | $ | 79,474 |  |  | $ | 70,372 |  |  | $ | 61,965 |  |  | $ | 62,080 |
(a)Long-lived assets represent property, plant and equipment, indefinite-lived intangible assets, amortizable intangible assets, investments in noncontrolled affiliates and other investments included in other assets. See Notes 2 and 14 for further information on property, plant and equipment. See Notes 2 and 4 for further information on goodwill and other intangible assets. See Note 14 for further information on other 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 2021, the increase in net revenue reflects our acquisition of Be & Cheery. See Note 13 for further information. (c)
Impairment Related to Russia-Ukraine conflict | Impairment and Other Charges We recognized Russia-Ukraine conflict charges, brand portfolio impairment charges and other impairment charges as described below. A summary of pre-tax charges taken in 2022 in our Europe division as a result of the Russia-Ukraine conflict is as follows:
| Russia-Ukraine conflict charges
| Cost of sales |  | Selling, general and administrative expenses |  | Impairment of intangible assets(a) |  | Total
Impairment charges related to intangible assets | $ | — |  |  | $ | — |  |  | $ | 1,198 |  |  | $ | 1,198 |
Impairment charges related to property, plant and equipment | 103 |  |  | 22 |  |  | — |  |  | 125 |
Allowance for expected credit losses | — |  |  | 12 |  |  | — |  |  | 12 |
Allowance for inventory write downs | 28 |  |  | 1 |  |  | — |  |  | 29 |
Other | 9 |  |  | 42 |  |  | — |  |  | 51 |
Total | $ | 140 |  |  | $ | 77 |  |  | $ | 1,198 |  |  | $ | 1,415 |
After-tax amount |  |  |  |  |  |  | $ | 1,124 |
Impact on net income attributable to PepsiCo per common share |  |  |  |  |  |  | $ | (0.81) |
(a)See Note 4 for further information. For information on our policies for indefinite-lived intangible assets, see Note 2.
Impairment Charges Related to Brand Portfolio | A summary of pre-tax charges taken in 2022 as a result of our decision to reposition or discontinue the sale/distribution of certain brands and to sell an investment is as follows:
| Brand portfolio impairment charges
| Cost of sales |  | Selling, general and administrative expenses |  | Impairment of intangible assets(a) |  | Total |
PBNA | $ | 26 |  |  | $ | 8 |  |  | $ | 126 |  |  | $ | 160 |  | Impairment and other charges associated with distribution rights and inventory due to the termination of Bang energy drinks distribution agreement
LatAm | — |  |  | 35 |  |  | 36 |  |  | 71 |  | Loss on sale and impairment of intangible assets related to the sale of certain non-strategic brands
Europe | 1 |  |  | 10 |  |  | 242 |  |  | 253 |  | Primarily impairment of intangible assets related to the discontinuation or repositioning of certain juice and dairy brands in Russia
AMESA | 29 |  |  | 121 |  |  | 9 |  |  | 159 |  | Primarily impairment of investment, property, plant and equipment and intangible assets related to the sale or discontinuation of non-strategic investment and brands
APAC | 5 |  |  | — |  |  | — |  |  | 5 |  | Impairment of property, plant and equipment related to the discontinuation of a non-strategic brand in China
Total | $ | 61 |  |  | $ | 174 |  |  | $ | 413 |  |  | $ | 648 |  |
After-tax amount |  |  |  |  |  |  | $ | 522 |  |
Impact on net income attributable to PepsiCo per common share |  |  |  |  |  |  | $ | (0.38) |  |
(a)See Note 4 for further information. For information on our policies for indefinite-lived intangible assets, see Note 2.
Other Impairment Charges | A summary of pre-tax impairment charges taken in 2022 as a result of our quantitative assessments of certain of our indefinite-lived intangible assets is as follows:
|  |  |  |  | Other impairment charges
|  |  |  |  | Impairment of intangible assets(a) |  |  |  |
FLNA |  |  |  |  | $ | 88 |  |  |  |  | Related to a baked fruit convenient food brand
Europe |  |  |  |  | 1,264 |  |  |  |  | Related to the SodaStream brand
AMESA |  |  |  |  | 31 |  |  |  |  | Primarily related to certain juice brands from the Pioneer Foods acquisition
APAC |  |  |  |  | 172 |  |  |  |  | Related to the Be & Cheery brand
Total |  |  |  |  | $ | 1,555 |  |  |  |  |
After-tax amount |  |  |  |  | $ | 1,301 |  |  |  |  |
Impact on net income attributable to PepsiCo per common share |  |  |  |  | $ | (0.94) |  |  |  |  |
(a)See Note 4 for further information. For information on our policies for indefinite-lived intangible assets, see Note 2.

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