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Basis of Presentation and Our Divisions (Tables) | 8 Months Ended
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Sep. 09, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Summary of Segment Reporting Information By Net Revenue | Net revenue of each division is as follows:
| 12 Weeks Ended |  | 36 Weeks Ended
| 9/9/2023 |  | 9/3/2022 |  | 9/9/2023 |  | 9/3/2022
FLNA | $ | 5,954 |  |  | $ | 5,563 |  |  | $ | 17,441 |  |  | $ | 15,583 |
QFNA | 747 |  |  | 713 |  |  | 2,208 |  |  | 2,101 |
PBNA | 7,161 |  |  | 6,635 |  |  | 19,714 |  |  | 18,108 |
LatAm | 3,055 |  |  | 2,517 |  |  | 7,688 |  |  | 6,406 |
Europe | 3,704 |  |  | 3,646 |  |  | 9,018 |  |  | 8,466 |
AMESA | 1,615 |  |  | 1,726 |  |  | 4,202 |  |  | 4,426 |
APAC | 1,217 |  |  | 1,171 |  |  | 3,350 |  |  | 3,306 |
Total | $ | 23,453 |  |  | $ | 21,971 |  |  | $ | 63,621 |  |  | $ | 58,396 |
Summary of Segment Reporting Information by Percentage of Disaggregated Net Revenue | Our primary performance obligation is the distribution and sales of beverage and convenient food products to our customers. The following tables reflect 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:
| 12 Weeks Ended
| 9/9/2023 |  | 9/3/2022
| Beverages(a) |  | Convenient Foods |  | Beverages(a) |  | Convenient Foods
LatAm | 10 | % |  | 90 | % |  | 10 | % |  | 90 | %
Europe | 50 | % |  | 50 | % |  | 55 | % |  | 45 | %
AMESA | 30 | % |  | 70 | % |  | 35 | % |  | 65 | %
APAC | 25 | % |  | 75 | % |  | 25 | % |  | 75 | %
PepsiCo | 45 | % |  | 55 | % |  | 45 | % |  | 55 | %
| 36 Weeks Ended |  |  |  |  |
| 9/9/2023 |  | 9/3/2022 |  |  |  |  |
| Beverages(a) |  | Convenient Foods |  | Beverages(a) |  | Convenient Foods |  |  |  |  |
LatAm | 10 | % |  | 90 | % |  | 10 | % |  | 90 | % |  |  |  |  |
Europe | 50 | % |  | 50 | % |  | 50 | % |  | 50 | % |  |  |  |  |
AMESA | 30 | % |  | 70 | % |  | 35 | % |  | 65 | % |  |  |  |  |
APAC | 25 | % |  | 75 | % |  | 25 | % |  | 75 | % |  |  |  |  |
PepsiCo | 40 | % |  | 60 | % |  | 45 | % |  | 55 | % |  |  |  |  |
(a)Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and Europe divisions, is over 35% of our consolidated net revenue in the 12 weeks ended September 9, 2023, approximately 35% of our consolidated net revenue in the 36 weeks ended September 9, 2023, and approximately 40% of our consolidated net revenue in the 12 and 36 weeks ended September 3, 2022. Generally, our finished goods beverage operations produce higher net revenue but lower operating margin as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.
Summary of Segment Reporting Information by Operating Profit | Operating profit of each division is as follows:
| 12 Weeks Ended |  | 36 Weeks Ended
| 9/9/2023 |  | 9/3/2022 |  | 9/9/2023 |  | 9/3/2022
FLNA | $ | 1,669 |  |  | $ | 1,588 |  |  | $ | 4,915 |  |  | $ | 4,332 |
QFNA | 135 |  |  | 122 |  |  | 452 |  |  | 416 |
PBNA (a) (b) (c) | 970 |  |  | 784 |  |  | 2,176 |  |  | 4,869 |
LatAm (d) | 593 |  |  | 463 |  |  | 1,549 |  |  | 1,206 |
Europe (a) (e) (f) | 659 |  |  | 564 |  |  | 1,206 |  |  | (369) |
AMESA | 238 |  |  | 268 |  |  | 656 |  |  | 738 |
APAC | 239 |  |  | 199 |  |  | 689 |  |  | 620 |
Total divisions | 4,503 |  |  | 3,988 |  |  | 11,643 |  |  | 11,812 |
Corporate unallocated expenses (g) (h) | (488) |  |  | (635) |  |  | (1,340) |  |  | (1,115) |
Total | $ | 4,015 |  |  | $ | 3,353 |  |  | $ | 10,303 |  |  | $ | 10,697 |
(a)In the 12 weeks ended September 3, 2022, we recorded a charge of $8 million and $6 million in our PBNA and Europe divisions, respectively, associated with the Juice Transaction. The total after-tax amount was $11 million or $0.01 per share. In the 36 weeks ended September 3, 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 $2,869 million or $2.07 per share. See Note 12 for further information. (b)In the 36 weeks ended September 3, 2022, we terminated our agreement with Vital Pharmaceuticals, Inc. (Vital) to distribute Bang Energy drinks in our PBNA division. As a result, in the 12 weeks ended September 3, 2022, we recognized pre-tax brand portfolio impairment charges of $9 million ($7 million after-tax or $0.01 per share) related to the write-down of inventory in cost of sales. In the 36 weeks ended September 3, 2022, we recognized pre-tax brand portfolio impairment charges of $150 million ($114 million after-tax or $0.08 per share) primarily related to the write-off of distribution rights, with $17 million recorded in cost of sales, $7 million recorded in selling, general and administrative expenses and $126 million recorded in impairment of intangible assets. (c)In the 36 weeks ended September 9, 2023, we recorded our proportionate share of TBG’s earnings, which includes an impairment of TBG’s indefinite-lived intangible assets, and recorded an other-than-temporary impairment of our investment, both of which resulted in pre-tax impairment charges of $113 million ($86 million after-tax or $0.06 per share), recorded in selling, general and administrative expenses. See Note 9 for further information. (d)In the 36 weeks ended September 3, 2022, we made the decision to sell or discontinue certain non-strategic brands in our LatAm division. As a result, we recognized pre-tax brand portfolio impairment charges of $83 million ($56 million after-tax or $0.04 per share) primarily related to property, plant and equipment and intangible assets, with $47 million recorded in selling, general and administrative expenses and $36 million recorded in impairment of intangible assets. (e)In the 12 weeks ended September 3, 2022, we recognized net pre-tax income of $4 million ($5 million after-tax with a nominal amount per share) as a result of the Russia-Ukraine conflict, with $5 million of income recorded in selling, general and administrative expenses, partially offset by $1 million of expense recorded in cost of sales. The amounts recorded in selling, general and administrative expenses represent recovery of previously recorded amounts for allowance for expected credit losses of $9 million, partially offset by pre-tax impairment charges related to property, plant and equipment of $2 million and other costs of $2 million. The amount recorded in cost of sales represents allowance for inventory write-downs. In the 36 weeks ended September 3, 2022, we recognized pre-tax charges of $1,402 million ($1,163 million after-tax or $0.84 per share) as a result of the Russia-Ukraine conflict, with $134 million recorded in cost of sales, $70 million recorded in selling, general and administrative expenses and $1,198 million recorded in impairment of intangible assets. The amounts recorded in cost of sales and selling, general and administrative expenses include impairment charges related to property, plant and equipment of $125 million, allowance for expected credit losses of $17 million, allowance for inventory write-downs of $26 million and other costs of $36 million. See Note 4 for further information. For information on indefinite-lived intangible assets, see Notes 2 and 4 to our consolidated financial statements in our 2022 Form 10-K. (f)In the 36 weeks ended September 3, 2022, we recognized pre-tax brand portfolio impairment charges of $241 million ($193 million after-tax or $0.14 per share) in impairment of intangible assets, related to the repositioning or discontinuation of certain juice and dairy brands in Russia. See Note 4 for further information. For information on indefinite-lived intangible assets, see Notes 2 and 4 to our consolidated financial statements in our 2022 Form 10-K. (g)In the 36 weeks ended September 9, 2023, we recorded a pre-tax gain of $85 million ($65 million after-tax or $0.05 per share) in selling, general and administrative expenses as a result of the sale of a corporate asset. (h)In the 36 weeks ended September 3, 2022, we recorded a pre-tax loss on certain equity investments of $68 million ($51 million after-tax or $0.04 per share) in selling, general and administrative expenses.

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