We will continue to work with the Excel file you prepared last week. Each student – Three tasks to do and to post: Prepare the common-size balance sheets and common-size income statements of your...

Document and Entity Information
    Document and Entity Information - USD ($) $ in Billions    12 Months Ended
        Dec. 26, 2020    Feb. 04, 2021    Jun. 12, 2020
    Document and Entity Information [Line Items]
    Document Type    10-K
    Document Annual Report    true
    Document Period End Date    Dec. 26,
        2020
    Document Transition Report    false
    Entity File Number    1-1183
    Entity Registrant Name    PepsiCo, Inc.
    Entity Incorporation, State or Country Code    NC
    Entity Tax Identification Number    13-1584302
    Entity Address, Address Line One    700 Anderson Hill Road
    Entity Address, City or Town    Purchase
    Entity Address, State or Province    NY
    Entity Address, Postal Zip Code    10577
    City Area Code    (914)
    Local Phone Number    253-2000
    Entity Well-known Seasoned Issuer    Yes
    Entity Voluntary Filers    No
    Entity Cu
ent Reporting Status    Yes
    Entity Interactive Data Cu
ent    Yes
    Entity Filer Category    Large Accelerated File
    Entity Small Business    false
    Entity Emerging Growth Company    false
    Entity Shell Company    false
    Entity Public Float            $ 178.5
    Entity Common Stock, Shares Outstanding        1,379,608,641
    Documents Incorporated by Reference [Text Block]    Portions of the Proxy Statement relating to PepsiCo, Inc.’s 2021 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K.
    Amendment Flag    false
    Entity Central Index Key    0000077476
    Document Fiscal Year Focus    2020
    Document Fiscal Period Focus    FY
    Cu
ent Fiscal Year End Date    --12-26
    ICFR Auditor Attestation Flag    true
    Common stock, par value 1-2/3 cents per share
    Document and Entity Information [Line Items]
    Title of 12(b) Security    Common Stock, par value 1-2/3 cents per share
    Trading Symbol    PEP
    Security Exchange Name    NASDAQ
    One Point Seven Five Percent Notes Due 2021
    Document and Entity Information [Line Items]
    Title of 12(b) Security    1.750% Senior Notes Due 2021
    Trading Symbol    PEP21a
    Security Exchange Name    NASDAQ
    Two Point Five Percent Notes Due 2022
    Document and Entity Information [Line Items]
    Title of 12(b) Security    2.500% Senior Notes Due 2022
    Trading Symbol    PEP22a
    Security Exchange Name    NASDAQ
    Zero Point Two Five Percent Notes Due 2024
    Document and Entity Information [Line Items]
    Title of 12(b) Security    0.250% Senior Notes Due 2024
    Trading Symbol    PEP24
    Security Exchange Name    NASDAQ
    Two Point Six Two Five Percent Notes Due 2026
    Document and Entity Information [Line Items]
    Title of 12(b) Security    2.625% Senior Notes Due 2026
    Trading Symbol    PEP26
    Security Exchange Name    NASDAQ
    Zero Point Seven Five Percent Notes Due 2027
    Document and Entity Information [Line Items]
    Title of 12(b) Security    0.750% Senior Notes Due 2027
    Trading Symbol    PEP27
    Security Exchange Name    NASDAQ
    Zero Point Eight Seven Five Percent Notes Due 2028
    Document and Entity Information [Line Items]
    Title of 12(b) Security    0.875% Senior Notes Due 2028
    Trading Symbol    PEP28
    Security Exchange Name    NASDAQ
    Zero Point Five Percent Notes Due 2028
    Document and Entity Information [Line Items]
    Title of 12(b) Security    0.500% Senior Notes Due 2028
    Trading Symbol    PEP28a
    Security Exchange Name    NASDAQ
    One Point One Two Five Percent Notes Due 2031
    Document and Entity Information [Line Items]
    Title of 12(b) Security    1.125% Senior Notes Due 2031
    Trading Symbol    PEP31
    Security Exchange Name    NASDAQ
    Zero Point Four Percent Notes Due 2032
    Document and Entity Information [Line Items]
    Title of 12(b) Security    0.400% Senior Notes Due 2032
    Trading Symbol    PEP32
    Security Exchange Name    NASDAQ
    Zero Point Eight Seven Five Notes Due 2039
    Document and Entity Information [Line Items]
    Title of 12(b) Security    0.875% Senior Notes Due 2039
    Trading Symbol    PEP39
    Security Exchange Name    NASDAQ
    One Point Zero Five Percent Notes Due 2050
    Document and Entity Information [Line Items]
    Title of 12(b) Security    1.050% Senior Notes Due 2050
    Trading Symbol    PEP50
    Security Exchange Name    NASDAQ
Consolidated Statement of Incom
    Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions    12 Months Ended                Common Size Income Statement
        Dec. 26, 2020    Dec. 28, 2019    Dec. 29, 2018        Dec.26, 2020    Dec.28,2019    Dec.29, 2018
    Income Statement [Abstract]
    Net Revenue    $ 70,372    $ 67,161    $ 64,661        100%    100%    100%
    Cost of sales    31,797    30,132    29,381        45.18%    44.87%    45.44%
    Gross profit    38,575    37,029    35,280        54.82%    55.13%    54.56%
    Selling, general and administrative expenses    28,495    26,738    25,170        40.49%    39.81%    38.93%
    Operating Profit    10,080    10,291    10,110        14.32%    15.32%    15.64%
    Other pension and retiree medical benefits income/(expense)    117    (44)    298        0.17%    -0.07%    0.46%
    Net interest expense and other    (1,128)    (935)    (1,219)        -1.60%    -1.39%    -1.89%
    Income before income taxes    9,069    9,312    9,189        12.89%    13.87%    14.21%
    Provision fo
(benefit from) income taxes (See Note 5)    1,894    1,959    (3,370)        2.69%    2.92%    -5.21%
    Net income    7,175    7,353    12,559        10.20%    10.95%    19.42%
    Less: Net income attributable to noncontrolling interests    55    39    44        0.08%    0.06%    0.07%
    Net Income Attributable to PepsiCo    $ 7,120    $ 7,314    $ 12,515        10.12%    10.89%    19.35%
    Net Income Attributable to PepsiCo per Common Share
    Basic    $ 5.14    $ 5.23    $ 8.84        Net Profit of the PepsiCo has been decreased significantly from year ended 2018. For Year ending Dec 29 2018, Profit margin was 19.35% but it has been decrease by 8.5% for the year ending Dec 28 2019 even after increase in the Sales. Major Reason for the same is Provision fo
(benefit from) income taxes. For year ending Dec 26 2020, the Profit Margin was decreased slightly by 0.77%. However in Overall, From 2018 to 2020, the Profit margin has been decreased by 9.24%.
    Diluted    $ 5.12    $ 5.20    $ 8.78
    Weighted-average common shares outstanding
    Basic    1,385    1,399    1,415
    Diluted    1,392    1,407    1,425
Consolidated Statement of Comp
    Consolidated Statement of Comprehensive Income - USD ($) $ in Millions    12 Months Ended
        Dec. 26, 2020    Dec. 28, 2019    Dec. 29, 2018
    Net income    $ 7,175    $ 7,353    $ 12,559
    Other Comprehensive Income (Loss), Foreign Cu
ency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax    (650)    628    (1,641)
    Other comprehensive loss
    Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax    7    (90)    40
    Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax    (532)    283    (467)
    Pension and retiree medical:
    Other Comprehensive Income, Other, Net of Tax    (1)    (2)    6
    Other Comprehensive Income/(Loss), after-tax amount    (1,176)    819    (2,062)
    Comprehensive income    5,999    8,172    10,497
    Comprehensive income attributable to noncontrolling interests    55    39    44
    Comprehensive Income Attributable to PepsiCo    $ 5,944    $ 8,133    $ 10,453
Consolidated Statement of Cash
    Consolidated Statement of Cash Flows - USD ($) $ in Millions    12 Months Ended
        Dec. 26, 2020    Dec. 28, 2019    Dec. 29, 2018
    Operating Activities
    Net income    $ 7,175    $ 7,353    $ 12,559
    Depreciation and amortization    2,548    2,432    2,399
    Share-based compensation expense    264    237    256
    Restructuring and impairment charges    289    370    308
    Cash payments for restructuring charges    (255)    (350)    (255)
    Inventory fair value adjustments and merger and integration costs    255    55    75
    Payments for Merger Related Costs    (131)    (10)    (73)
    Pension and retiree medical plan expenses    408    519    221
    Pension and retiree medical plan contributions    (562)    (716)    (1,708)
    Defe
ed income taxes and other tax charges and credits    361    453    (531)
    Tax Cuts and Jobs Act, Income Tax Expense (Benefit)    0    (8)    (28)
    Tax payments related to the TCJ Act    (78)    (423)    (115)
    Other net tax benefits related to international reorganizations    0    (2)    (4,347)
    Change in assets and liabilities [Abstract]
    Accounts and notes receivable    (420)    (650)    (253)
    Inventories    (516)    (190)    (174)
    Prepaid expenses and other cu
ent assets    26    (87)    9
    Accounts payable and other cu
ent liabilities    766    735    882
    Income taxes payable    (159)    (287)    448
    Other, net    642    218    (258)
    Net Cash Provided by (Used in) Operating Activities    10,613    9,649    9,415
    Investing Activities
    Capital spending    (4,240)    (4,232)    (3,282)
    Sales of property, plant and equipment    55    170    134
    Acquisitions, net of cash acquired, and investments in noncontrolled affiliates    (6,372)    (2,717)    (1,496)
    Divestitures    4    253    505
    Short-term investments, by original maturity:
    More than three months - purchases    (1,135)    0    (5,637)
    More than three months - maturities    0    16    12,824
    More than three months - sales    0    62    1,498
    Three months or less, net    27    19    16
    Other investing, net    42    (8)    2
    Net Cash (Used for)/Provided by Investing Activities    (11,619)    (6,437)    4,564
    Financing Activities
    Proceeds from issuances of long-term debt    13,809    4,621    0
    Payments of long-term debt    (1,830)    (3,970)    (4,007)
    Proceeds from (Repayments of) Other Long-term Debt    (1,100)    (1,007)    (1,589)
    Short-term bo
owings, by original maturity
    More than three months - proceeds    4,077    6    3
    More than three months - payments    (3,554)    (2)    (17)
    Three months or less, net    (109)    (3)    (1,352)
    Cash dividends paid    (5,509)    (5,304)    (4,930)
    Share repurchases - common    (2,000)    (3,000)    (2,000)
    Proceeds from exercises of stock options    179    329    281
    Withholding tax payments on RSUs, PSUs and PEPunits converted    (96)    (114)    (103)
    Other financing    (48)    (45)    (55)
    Net Cash Provided by/(Used for) Financing Activities    3,819    (8,489)    (13,769)
    Effect of exchange rate changes on cash and cash equivalents and restricted cash    (129)    78    (98)
    Cash and Cash Equivalents and Restricted Cash, Period Increase (Decrease)    2,684    (5,199)    112
    Cash and cash equivalents and restricted cash    $ 8,254    $ 5,570    $ 10,769
Consolidated Balance Sheet
    Consolidated Balance Sheet - USD ($) shares in Millions, $ in Millions    Dec. 26, 2020    Dec. 28, 2019    Dec.29, 2018        Common Size Balance Sheet
    ASSETS                    Dec. 26,2020    Dec.28,2019    Dec.29, 2018
    Cash and cash equivalents    $ 8,185    $ 5,509    $8,721        8.81%    7.01%    11.23%
    Short-term Investments    1,366    229    272        1.47%    0.29%    0.35%        Asset Structure of PepsiCo over the 3 years is remains somewhat similar with no significant changes. Total cu
ent asset has been remained ~ 23% to 28% of Total Assets, Property, Plant and Equipment, net remained ~23%-24% of Total Assets, Indefinite-Lived Intangible Assets remained ~37-39% of Total Assets and Other assets remained 10-12% of Total Asset. Even though, Total Assets has been Increased from 77,648 million in 2018 to 92,918 million in 2020, the asset Structure remains almost same.
    Accounts and notes receivable, net    8,404    7,822    7,124        9.04%    9.96%    9.17%
    Inventories    4,172    3,338    3,128        4.49%    4.25%    4.03%
    Prepaid expenses and other cu
ent assets    874    747    633        0.94%    0.95%    0.82%
    Assets, Cu
ent    23,001    17,645    21,893        24.75%    22.46%    28.20%
    Property, Plant and Equipment, net    21,369    19,305    17,589        23.00%    24.58%    22.65%
    Amortizable Intangible Assets, net    1,703    1,433    1,644        1.83%    1.82%    2.12%
    Goodwill    18,757    15,501    14,808        20.19%    19.73%    19.07%
    Indefinite-lived Intangible Assets (Excluding Goodwill)    17,612    14,610    14,818        18.95%    18.60%    19.08%
    Indefinite-Lived Intangible Assets    36,369    30,111    28,989        39.14%    38.34%    37.33%
    Equity Method Investments    2,792    2,683    2,409        3.00%    3.42%    3.10%
    Defe
ed Income Tax Assets, Net    4,372    4,359    4,364        4.71%    5.55%    5.62%
    Other Assets    3,312    3,011    760        3.56%    3.83%    0.98%
    Total Assets    92,918    78,547    77,648        100.00%    100.00%    100.00%
    LIABILITIES AND EQUITY
    Short-term debt obligations    3,780    2,920    4,026        4.07%    3.72%    5.18%
    Accounts payable and other cu
ent liabilities    19,592    17,541    18,112        21.09%    22.33%    23.33%
    Liabilities, Cu
ent    23,372    20,461    22,138        25.15%    26.05%    28.51%        As Asset Structure, Capital Structure of PepsiCo over the 3 years is remains somewhat similar with no significant changes. Total Liabilities has been remained ~ 81% to 85% of Total Liabilities and Equity, Common Stock remained ~0.02%-24% of Liabilities and Equity, Additional Paid Up Capital remained ~4-5% of Liabilities and Equity, and Retained Earning remained 68-78% of Liabilities and Equity. Total Equity is also ranging between 15% to 18%.
    Long-Term Debt Obligations    40,370    29,148    28,295        43.45%    37.11%    36.44%
    Defe
ed Income Tax Liabilities, Net    4,284    4,091    3,499        4.61%    5.21%    4.51%
    Other Liabilities, Noncu
ent    11,340    9,979    9,114        12.20%    12.70%    11.74%
    Liabilities    79,366    63,679    63,046        85.42%    81.07%    81.19%
    Commitments and contingencies         
    PepsiCo Common Shareholders’ Equity
    Common stock, par value 12/3¢ per share (authorized 3,600 shares, issued, net of repurchased common stock at par value: 1,380 and 1,391 shares, respectively)    $ 23    $ 23    $23        0.02%    0.03%    0.03%
    Common stock, par value    $ 0.0167    $ 0.0167    $0.0167        0.00%    0.00%    0.00%
    Common stock, authorized    3,600    3,600    3,600        3.87%    4.58%    4.64%
    Common stock, issued    1,380    1,391    1,420        1.49%    1.77%    1.83%
    Additional Paid in Capital, Common Stock    $ 3,910    $ 3,886    $3,953        4.21%    4.95%    5.09%
    Retained Earnings (Accumulated Deficit)    63,443    61,946    59,947        68.28%    78.86%    77.20%
    Accumulated Other Comprehensive Income (Loss), Net of Tax    (15,476.00)    (14,300.00)    (15,119.00)        -16.66%    -18.21%    -19.47%
    Repurchased common stock, shares    (38,446)    (36,769)    (34,286.00)        -41.38%    -46.81%    -44.16%
    Stockholders' Equity Attributable to Parent    $ 13,454    $ 14,786    14,518        14.48%    18.82%    18.70%
    Stockholders' Equity Attributable to Noncontrolling Interest    98    82    84        0.11%    0.10%    0.11%
    Total Equity    13,552    14,868    14,602        14.58%    18.93%    18.81%
    Liabilities and Equity    $ 92,918    $ 78,547    77,648        100.00%    100.00%    100.00%
    Common stock, authorized    3,600    3,600    3,600
    Repurchased common stock, shares    487    476    446
    Common stock, issued    1,380    1,391    1,420
    Retained Earnings [Member]
    PepsiCo Common Shareholders’ Equity
    Total Equity    $ 63,443    $ 61,946    $59,947
    AOCI Attributable to Parent [Member]
    PepsiCo Common Shareholders’ Equity
    Total Equity    (15,476.00)    (14,300.00)    (15,119.00)
    Treasury Stock [Member]
    PepsiCo Common Shareholders’ Equity
    Treasury Stock, Value    (38,446.00)    (36,769.00)    (15,119.00)
    Common Stock
    PepsiCo Common Shareholders’ Equity
    Stockholders' Equity Attributable to Parent    $ 23    $ 23    $23
Consolidated Statement of Equit
    Consolidated Statement of Equity - USD ($) shares in Thousands, $ in Millions        Total    Prefe
ed Stock    Prefe
ed StockRepurchased Prefe
ed Stock    Common Stock    Capital In Excess Of Par Value    Retained Earnings    Accumulated Other Comprehensive Loss    Repurchased Common Stock    Total Common Shareholders' Equity    Noncontrolling Interests
    Prefe
ed Stock, Value, Outstanding            $ 41    $ (197)
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets                            $ (145)
    Stockholders' Equity Attributable to Noncontrolling Interest                                            $ 92
    Common Stocks, Including Additional Paid in Capital                        $ 3,996
    Treasury Stock, Value                                    $ (32,757)
    Prefe
ed Stock, Shares Issued, Beginning of year at Dec. 30, 2017            800    (700)
    Stockholders' Equity Attributable to Parent at Dec. 30, 2017                    $ 24
    Stock Repurchased During Period, Value                                    $ (2,000)
    Conversion of Stock, Shares Converted            (100)
    Retirement of prefe
ed stock            (700)    700
    Convertible Prefe
ed Stock Converted to Other Securities            $ (6)        $ 0    6
    Retirement of prefe
ed stock, value            $ (35)    $ 199            (164)
    Prefe
ed Stock, Shares Issued, End of year at Dec. 29, 2018            0    0
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Redemptions (in shares)                0
    Redemptions                $ (2)
    Balance, beginning of year (in shares) at Dec. 30, 2017                                    (446,000)
    Balance, end of year (in shares) at Dec. 29, 2018                                    (458,000)
    Balance, outstanding, beginning of year (in shares) at Dec. 30, 2017                    1,420,000
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Stock Repurchased During Period, Shares                    (12,000)                (18,000)
    Balance, outstanding, end of year (in shares) at Dec. 29, 2018                    1,409,000
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Share-based compensation expense                        250
    Stock option exercises, RSUs, PSUs and PEPunits converted                        (193)            $ (469)
    Share-based Payment A
angement, Decrease for Tax Withholding Obligation                        (103)
    Other                        (3)
    Share repurchases                    $ 1
    Stock option exercises (in shares)                                    6,000
    Other (in shares)                                    0
    Other                                    $ 2        (3)
    Dividends, Common Stock, Cash    [1]                        (5,098)
    Balance, beginning of year at Dec. 30, 2017                            52,839    $ (13,057)
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Net Income (Loss) Attributable to Noncontrolling Interest        $ 44                                    44
    Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders                                            (49)
    Other comprehensive income/(loss) attributable to PepsiCo                                (2,062)
    Balance, end of year at Dec. 29, 2018        14,602                    59,947    (15,119)        $ 14,518
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Net income        $ 12,515                    12,515
    Stockholders' Equity Attributable to Parent at Dec. 29, 2018                    $ 23
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Stock Issued During Period, Shares, Conversion of Convertible Securities                    1,000
    Common Stock, Dividends, Per Share, Declared        $ 3.5875
    Acquisitions And Divestitures To Noncontrolling Interest                                            0
    Prefe
ed Stock, Value, Outstanding            $ 0    $ 0
    New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets                            8
    Stockholders' Equity Attributable to Noncontrolling Interest                                            84
    Common Stocks, Including Additional Paid in Capital                        3,953
    Treasury Stock, Value                                    (34,286)
    Stock Repurchased During Period, Value                                    $ (3,000)
    Conversion of Stock, Shares Converted            0
    Retirement of prefe
ed stock            0    0
    Convertible Prefe
ed Stock Converted to Other Securities            $ 0        $ 0    0
    Retirement of prefe
ed stock, value            $ 0    $ 0            0
    Prefe
ed Stock, Shares Issued, End of year at Dec. 28, 2019            0    0
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Redemptions (in shares)                0
    Redemptions                $ 0
    Balance, end of year (in shares) at Dec. 28, 2019                                    (476,000)
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Stock Repurchased During Period, Shares                    (18,000)                (24,000)
    Balance, outstanding, end of year (in shares) at Dec. 28, 2019                    1,391,000
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Share-based compensation expense                        235
    Stock option exercises, RSUs, PSUs and PEPunits converted                        (188)            $ (516)
    Share-based Payment A
angement, Decrease for Tax Withholding Obligation                        (114)
    Other                        0
    Share repurchases                    $ 0
    Stock option exercises (in shares)                                    6,000
    Other (in shares)                                    0
    Other                                    $ 1        1
    Dividends, Common Stock, Cash    [1]                        (5,323)
    Net Income (Loss) Attributable to Noncontrolling Interest        $ 39                                    39
    Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders                                            (42)
    Other comprehensive income/(loss) attributable to PepsiCo                                819
    Balance, end of year at Dec. 28, 2019        14,868                    61,946    (14,300)        14,786
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Net income        7,314                    7,314
    Stockholders' Equity Attributable to Parent at Dec. 28, 2019        $ 14,786            $ 23
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Stock Issued During Period, Shares, Conversion of Convertible Securities                    0
    Common Stock, Dividends, Per Share, Declared        $ 3.7925
    Acquisitions And Divestitures To Noncontrolling Interest                                            0
    Prefe
ed Stock, Value, Outstanding            $ 0    $ 0
    New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets                            (34)
    Stockholders' Equity Attributable to Noncontrolling Interest        $ 82                                    82
    Common Stocks, Including Additional Paid in Capital                        3,886
    Treasury Stock, Value                                    (36,769)
    Stock Repurchased During Period, Value                                    $ (2,000)
    Conversion of Stock, Shares Converted            0
    Retirement of prefe
ed stock            0    0
    Convertible Prefe
ed Stock Converted to Other Securities            $ 0        $ 0    0
    Retirement of prefe
ed stock, value            $ 0    $ 0            0
    Prefe
ed Stock, Shares Issued, End of year at Dec. 26, 2020            0    0
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Redemptions (in shares)                0
    Redemptions                $ 0
    Balance, end of year (in shares) at Dec. 26, 2020                                    (487,000)
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Stock Repurchased During Period, Shares                    (11,000)                (15,000)
    Balance, outstanding, end of year (in shares) at Dec. 26, 2020                    1,380,000
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Share-based compensation expense                        263
    Stock option exercises, RSUs, PSUs and PEPunits converted                        (143)            $ (322)
    Share-based Payment A
angement, Decrease for Tax Withholding Obligation                        (96)
    Other                        0
    Share repurchases                    $ 0
    Stock option exercises (in shares)        2,440                            4,000
    Other (in shares)                                    0
    Other                                    $ 1        0
    Dividends, Common Stock, Cash    [1]                        (5,589)
    Net Income (Loss) Attributable to Noncontrolling Interest        $ 55                                    55
    Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders                                            (44)
    Other comprehensive income/(loss) attributable to PepsiCo                                (1,176)
    Balance, end of year at Dec. 26, 2020        13,552                    63,443    $ (15,476)        $ 13,454
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Net income        7,120                    $ 7,120
    Stockholders' Equity Attributable to Parent at Dec. 26, 2020        $ 13,454            $ 23
    Increase (Decrease) in Stockholders' Equity [Roll Forward]
    Stock Issued During Period, Shares, Conversion of Convertible Securities                    0
    Common Stock, Dividends, Per Share, Declared        $ 4.0225
    Acquisitions And Divestitures To Noncontrolling Interest                                            5
    Prefe
ed Stock, Value, Outstanding            $ 0    $ 0
    Stockholders' Equity Attributable to Noncontrolling Interest        $ 98                                    $ 98
    Common Stocks, Including Additional Paid in Capital                        $ 3,910
    Treasury Stock, Value                                    $ (38,446)
    [1]    (a) Cash dividends declared per common share were $4.0225, $3.7925 and $3.5875 for 2020, 2019 and 2018, respectively.
Basis of Presentation and Our D
    Basis of Presentation and Our Divisions    12 Months Ended
        Dec. 26, 2020
    Organization, Consolidation and Presentation of Financial Statements [Abstract]
    Basis Of Presentation and Our Divisions    Basis of Presentation and Our Divisions Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and 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 using the equity method based on our economic ownership interest, our ability to exercise significant influence over the operating or financial decisions of these affiliates or our ability to direct their economic resources. We do not control these other affiliates, as our ownership in these other affiliates is generally 50% or less. Intercompany balances and transactions are eliminated. As a result of exchange restrictions and other operating restrictions, we do not have control over our Venezuelan subsidiaries. As such, our Venezuelan subsidiaries are not included within our consolidated financial results for any period presented. Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw materials handling facilities, are included in cost of sales. The costs of moving, storing and delivering finished product, including merchandising activities, are included in selling, general and administrative expenses. The preparation of our consolidated financial statements 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, share-based compensation, pension and retiree medical accruals, amounts and useful lives for intangible assets and future cash flows associated with impairment testing for indefinite-lived
ands, goodwill and other long-lived assets. We evaluate our estimates on an ongoing basis using our historical experience, as well as other factors we believe appropriate under the circumstances, such as cu
ent economic conditions, and adjust or revise our estimates as circumstances change. The business and economic uncertainty resulting from the COVID-19 pandemic has made such estimates and assumptions more difficult to calculate. As future events and their effect cannot be determined with precision, actual results could differ significantly from those estimates. 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, Fe
uary 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 Unless otherwise noted, tabular dollars are in millions, except per share amounts. All per share amounts reflect common per share amounts, assume dilution unless otherwise noted, and are based on unrounded amounts. Certain reclassifications were made to the prior year’s consolidated financial statements to conform to the cu
ent year presentation. Our Divisions We are organized into seven reportable segments (also refe
ed to as divisions), as follows: 1) FLNA, which includes our
anded food and snack businesses in the United States and Canada; 2) QFNA, which includes our cereal, rice, pasta and other
anded food businesses in the United States and Canada; 3) PBNA, which includes our beverage businesses in the United States and Canada; 4) LatAm, which includes all of our beverage, food and snack businesses in Latin America; 5) Europe, which includes all of our beverage, food and snack businesses in Europe; 6) AMESA, which includes all of our beverage, food and snack businesses in Africa, the Middle East and South Asia; and 7) APAC, which includes all of our beverage, food and snack businesses in Asia Pacific, Australia and New Zealand and China region. Through our operations, authorized bottlers, contract manufacturers and other third parties, we make, market, distribute and sell a wide variety of convenient beverages, foods and snacks, serving customers and consumers in more than 200 countries and te
itories with our largest operations in the United States, Mexico, Russia, Canada, the United Kingdom, China and South Africa. The accounting policies for the divisions are the same as those described in Note 2, except for the following allocation methodologies: • share-based compensation expense; • pension and retiree medical expense; and • derivatives. 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. Pension and Retiree Medical Expense Pension and retiree medical service costs measured at fixed discount rates are reflected in division results. The variance between the fixed discount rate used to determine the service cost reflected in division results and the discount rate as disclosed in Note 7 is reflected in corporate unallocated expenses. Derivatives We centrally manage commodity derivatives on behalf of our divisions. These commodity derivatives include agricultural products, energy and metals. Commodity derivatives that do not qualify for hedge accounting treatment are marked to market each period with the resulting gains and losses recorded in corporate unallocated expenses as either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. These gains and losses are subsequently reflected in division results when the divisions recognize the cost of the underlying commodity in operating profit. Therefore, the divisions realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in corporate unallocated expenses. These derivatives hedge underlying commodity price risk and were not entered into for trading or speculative purposes. Net Revenue and Operating Profit 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. Corporate Unallocated Expenses Corporate unallocated expenses include costs of our corporate headquarters, centrally managed initiatives such as commodity derivative gains and losses, foreign exchange transaction gains and losses, our ongoing business transformation initiatives, unallocated research and development costs, unallocated insurance and benefit programs, tax-related contingent consideration and certain other items. Other Division Information 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. Amortization of intangible assets and depreciation and other amortization of each division are as follows: Amortization of Depreciation and 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 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.
Our Significant Accounting Poli
    Our Significant Accounting Policies    12 Months Ended
        Dec. 26, 2020
    Accounting Policies [Abstract]
    Our Significant Accounting Policies    Our Significant Accounting Policies Revenue Recognition We recognize revenue when our performance obligation is satisfied. Our primary performance obligation (the distribution and sales of beverage products and food and snack products) is satisfied upon the shipment or delivery of products to our customers, which is also when control is transfe
ed. Merchandising activities are performed after a customer obtains control of the product, are accounted for as fulfillment of our performance obligation to ship or deliver product to our customers and are recorded in selling, general and administrative expenses. Merchandising activities are immaterial in the context of our contracts. In addition, we exclude from net revenue all sales, use, value-added and certain excise taxes assessed by government authorities on revenue producing transactions. The transfer of control of products to our customers is typically based on written sales terms that do not allow for a right of return. However, our policy for DSD, including certain chilled products, is to remove and replace damaged and out-of-date products from store shelves to ensure that consumers receive the product quality and freshness they expect. Similarly, our policy for certain warehouse-distributed products is to replace damaged and out-of-date products. As a result, we record reserves, based on estimates, for anticipated damaged and out-of-date produc ts. We recorded $20 million of reserves for product returns in 2020 as a result of the COVID-19 pandemic . See Note 1 for further information. As a result of the implementation of the revenue recognition guidance adopted in the first quarter of 2018, which did not have a material impact on our accounting policies, we recorded an adjustment in the first quarter of 2018 of $137 million to beginning retained earnings to reflect marketplace spending that our customers and independent bottlers expected to be entitled to in line with revenue recognition. Our products are sold for cash or on credit terms. Our credit terms, which are established in accordance with local and industry practices, typically require payment within 30 days of delivery in the United States, and generally within 30 to 90 days internationally, and may allow discounts for early payment. There were no material changes in credit terms as a result of the COVID-19 pandemic. We estimate and reserve for our expected credit loss exposure based on our experience with past due accounts and collectibility, write-off history, the aging of accounts receivable, our analysis of customer data, and forward-looking information (including the expected impact of the global economic uncertainty related to the COVID-19 pandemic), leveraging estimates of creditworthiness and projections of default and recovery rates for certain of our customers (including foodservice and vending businesses). We recorded an allowance for expected credit losses of $56 million in 2020 as a result of the COVID-19 pandemic. See Note 1 for further information. Expected credit loss expense is classified within selling, general and administrative expenses on our income statement. We are exposed to concentration of credit risk from our major customers, including Walmart. In 2020, sales to Walmart and its affiliates (including Sam’s) represented approximately 14% of our consolidated net revenue, including concentrate sales to our independent bottlers, which were used in finished goods sold by them to Walmart. We have not experienced credit issues with these customers. Total Marketplace Spending We offer sales incentives and discounts through various programs to customers and consumers. Total marketplace spending includes sales incentives, discounts, advertising and other marketing activities. Sales incentives and discounts are primarily accounted for as a reduction of revenue and include payments to customers for performing activities on our behalf, such as payments for in-store displays, payments to gain distribution of new products, payments for shelf space and discounts to promote lower retail prices. Sales incentives and discounts also include support provided to our independent bottlers through funding of advertising and other marketing activities. A number of our sales incentives, such as bottler funding to independent bottlers and customer volume rebates, are based on annual targets, and accruals are established during the year, as products are delivered, for the expected payout, which may occur after year end once reconciled and settled. These accruals are based on contract terms and our historical experience with similar programs and require management judgment with respect to estimating customer and consumer participation and performance levels. Differences between estimated expense and actual incentive costs are normally insignificant and are recognized in earnings in the period such differences are determined. In addition, certain advertising and marketing costs are also based on annual targets and recognized during the year as incu
ed. The terms of most of our incentive a
angements do not exceed a year, and, therefore, do not require highly uncertain long-term estimates. Certain a
angements, such as fountain pouring rights, may extend beyond one year. Upfront payments to customers under these a
angements are recognized over the shorter of the economic or contractual life, primarily as a reduction of revenue, and the remaining balances of $299 million as of December 26, 2020 and $272 million as of December 28, 2019 are included in prepaid expenses and other cu
ent assets and other assets on our balance sheet. We recorded reserves of $59 million for upfront payments to customers in 2020 as a result of the COVID-19 pandemic . See Note 1 for further information. For interim reporting, our policy is to allocate our forecasted full-year sales incentives for most of our programs to each of our interim reporting periods in the same year that benefits from the programs. The allocation methodology is based on our forecasted sales incentives for the full year and the proportion of each interim period’s actual gross revenue or volume, as applicable, to our forecasted annual gross revenue or volume, as applicable. Based on our review of the forecasts at each interim period, any changes in estimates and the related allocation of sales incentives are recognized beginning in the interim period that they are identified. In addition, we apply a similar allocation methodology for interim reporting purposes for certain advertising and other marketing activities. Our annual consolidated financial statements are not impacted by this interim allocation methodology. Advertising and other marketing activities, reported as selling, general and administrative expenses, totaled $4.6 billion in 2020, $4.7 billion in 2019 and $4.2 billion in 2018, including advertising expenses of $3.0 billion in both 2020 and 2019, and $2.6 billion in 2018. Defe
ed 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. Defe
ed advertising costs of $48 million and $55 million as of December 26, 2020 and December 28, 2019, respectively, are classified as prepaid expenses and other cu
ent assets on our balance sheet. Distribution Costs Distribution costs, including the costs of shipping and handling activities, which include certain merchandising activities, are reported as selling, general and administrative expenses. Shipping and handling expenses were $11.9 billion in 2020, $10.9 billion in 2019 and $10.5 billion in 2018. Software Costs We capitalize certain computer software and software development costs incu
ed in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include (1) external direct costs of materials and services utilized in developing or obtaining computer software, (2) compensation and related benefits for employees who are directly associated with the software projects and (3) interest costs incu
ed while developing internal-use computer software. Capitalized software costs are included in property, plant and equipment on our balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software, which approximate five and December 28, 2019, respectively. Commitments and Contingencies We are subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as well as commitments under contractual and other commercial obligations. We recognize liabilities for contingencies and commitments when a loss is probable and estimable. Research and Development We engage in a variety of research and development activities and continue to invest to accelerate growth and to drive innovation globally. Consumer research is excluded from research and development costs and included in other marketing costs. Research and development costs were $719 million, $711 million and $680 million in 2020, 2019 and 2018, respectively, and are reported within selling, general and administrative expenses. Goodwill and Other Intangible Assets Indefinite-lived intangible assets and goodwill are not amortized and, as a result, are assessed for impairment at least annually, using either a qualitative or quantitative approach. We perform this annual assessment during our third quarter, or more frequently if circumstances indicate that the ca
ying value may not be recoverable. Where we use the qualitative assessment, first we determine if, based on qualitative factors, it is more likely than not that an impairment exists. Factors considered include macroeconomic (including those related to the COVID-19 pandemic), industry and competitive conditions, legal and regulatory environment, historical financial performance and significant changes in the
and or reporting unit. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. In the quantitative assessment for indefinite-lived intangible assets and goodwill, an assessment is performed to determine the fair value of the indefinite-lived intangible asset and the reporting unit, respectively. Estimated fair value is determined using discounted cash flows and requires an analysis of several estimates including future cash flows or income consistent with management’s strategic business plans, annual sales growth rates, perpetuity growth assumptions and the selection of assumptions underlying a discount rate (weighted-average cost of capital) based on market data available at the time. Significant management judgment is necessary to estimate the impact of competitive operating, macroeconomic and other factors (including those related to the COVID-19 pandemic) to estimate future levels of sales, operating profit or cash flows. All assumptions used in our impairment evaluations for indefinite-lived intangible assets and goodwill, such as forecasted growth rates (including perpetuity growth assumptions) and weighted-average cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. A deterioration in these assumptions could adversely impact our results. Amortizable intangible assets are only evaluated for impairment upon a significant change in the operating or macroeconomic environment. If an evaluation of the undiscounted future cash flows indicates impairment, the asset is written down to its estimated fair value, which is based on its discounted future cash flows. See Note 4 for further information. Other Significant Accounting Policies Our other significant accounting policies are disclosed as follows: • Basis of Presentation – Note 1 includes a description of our policies regarding use of estimates, basis of presentation and consolidation. • Income Taxes – Note 5. • Share-Based Compensation – Note 6. • Pension, Retiree Medical and Savings Plans – Note 7. • Financial Instruments – Note 9. • Cash Equivalents – Cash equivalents are highly liquid investments with original maturities of three months or less. • Inventories – Note 15. Inventories are valued at the lower of cost or net realizable value. Cost is determined using the average; first-in, first-out (FIFO); or, in limited instances, last-in, first-out (LIFO) methods. • Property, Plant and Equipment – Note 15. Property, plant and equipment is recorded at historical cost. Depreciation is recognized on a straight-line basis over an asset’s estimated useful life. Land is not depreciated and construction in progress is not depreciated until ready for service. • Translation of Financial Statements of Foreign Subsidiaries – Financial statements of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. Adjustments resulting from translating net assets are reported as a separate component of accumulated other comprehensive loss within common shareholders’ equity as cu
ency translation adjustment. Recently Issued Accounting Pronouncements - Adopted In 2016, the Financial Accounting Standards Board (FASB) issued guidance that changes the impairment model used to measure credit losses for most financial assets. Under the new model we are required to estimate expected credit losses over the life of our trade receivables, certain other receivables and certain other financial instruments. The new model replaced the existing incu
ed credit loss model and generally results in earlier recognition of allowances for credit losses. We adopted this guidance in the first quarter of 2020 and the adoption did not have a material impact on our consolidated financial statements or disclosures. On initial recognition, we recorded an after-tax cumulative effect decrease to retained earnings of $34 million ($44 million pre-tax) as of the beginning of 2020. Recently Issued Accounting Pronouncements - Not Yet Adopted In 2019, the FASB issued guidance to simplify the accounting for income taxes. The guidance primarily addresses how to (1) recognize a defe
ed tax liability after we transition to or from the equity method of accounting, (2) evaluate if a step-up in the tax basis of goodwill is related to a business combination or is a separate transaction, (3) recognize all of the effects of a change in tax law in the period of enactment, including adjusting the estimated annual tax rate, and (4) include the amount of tax based on income in the income tax provision and any incremental amount as a tax not based on income for hy
id tax regimes. The guidance is effective in the first quarter of 2021 with early adoption permitted. We will adopt the guidance when it becomes effective in the first quarter of 2021. The guidance is not expected to have a material impact on our consolidated financial statements or related disclosures.
Restructuring, Impairment and I
    Restructuring, Impairment and Integration Charges    12 Months Ended
        Dec. 26, 2020
    Restructuring and Related Activities [Abstract]
    Restructuring, Impairment, and Other Activities Disclosure [Text Block]    Restructuring and Impairment Charges A summary of our restructuring and impairment charges and other productivity initiatives is as follows: 2020 2019 2018 2019 Productivity Plan $ 289 $ 370 $ 138 2014 Productivity Plan — — 170 Total restructuring and impairment charges 289 370 308 Other productivity initiatives — 3 8 Total restructuring and impairment charges and other productivity initiatives $ 289 $ 373 $ 316 2019 Multi-Year Productivity Plan The 2019 Productivity Plan, publicly announced on Fe
uary 15, 2019, will leverage new technology and business models to further simplify, harmonize and automate processes; re-engineer our go-to-market and information systems, including deploying the right automation for each market; and simplify our organization and optimize our manufacturing and supply chain footprint. In connection with this plan, we expect to incur pre-tax charges of approximately $2.5 billion, including cash expenditures of approximately $1.6 billion. These pre-tax charges are expected to consist of approximately 65% of severance and other employee-related costs, 15% for asset impairments (all non-cash) resulting from plant closures and related actions and 20% for other costs associated with the implementation of our initiatives. We expect to complete this plan by 2023. The total expected plan pre-tax charges are expected to be incu
ed by division approximately as follows: FLNA QFNA PBNA LatAm Europe AMESA APAC Corporate Expected pre-tax charges 15 % 1 % 30 % 10 % 25 % 5 % 3 % 11 % A summary of our 2019 Productivity Plan charges is as follows: 2020 2019 2018 Cost of sales $ 30 $ 115 $ 3 Selling, general and administrative expenses 239 253 100 Other pension and retiree medical benefits expense 20 2 35 Total restructuring and impairment charges $ 289 $ 370 $ 138 After-tax amount $ 231 $ 303 $ 109 Net income attributable to PepsiCo per common share $ 0.17 $ 0.21 $ 0.08 2020 2019 2018 Plan to Date through 12/26/2020 FLNA $ 83 $ 22 $ 31 $ 136 QFNA 5 2 5 12 PBNA 47 51 40 138 LatAm 31 62 9 102 Europe 48 99 6 153 AMESA 14 38 3 55 APAC 5 47 2 54 Corporate 36 47 7 90 269 368 103 740 Other pension and retiree medical benefits expense 20 2 35 57 Total $ 289 $ 370 $ 138 $ 797 Plan to Date through 12/26/2020 Severance and other employee costs $ 444 Asset impairments 125 Other costs 228 Total $ 797 Severance and other employee costs primarily include severance and other termination benefits, as well as voluntary separation a
angements. Other costs primarily include costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees. A summary of our 2019 Productivity Plan activity is as follows: Severance and Other Employee Costs Asset Other Costs Total 2018 restructuring charges $ 137 $ — $ 1 $ 138 Non-cash charges and translation (32) — — (32) Liability as of December 29, 2018 105 — 1 106 2019 restructuring charges 149 92 129 370 Cash payments (a) (138) — (119) (257) Non-cash charges and translation 12 (92) 10 (70) Liability as of December 28, 2019 128 — 21 149 2020 restructuring charges 158 33 98 289 Cash payments (a) (138) — (117) (255) Non-cash charges and translation (26) (33) 3 (56) Liability as of December 26, 2020 $ 122 $ — $ 5 $ 127 (a) Excludes cash expenditures of $2 million and $4 million for 2020 and 2019, respectively, reported in the cash flow statement in pension and retiree medical contributions. Substantially all of the restructuring accrual at December 26, 2020 is expected to be paid by the end of 2021. 2014 Multi-Year Productivity Plan The 2014 Productivity Plan, publicly announced on Fe
uary 13, 2014, included the next generation of productivity initiatives that we believed would strengthen our beverage, food and snack businesses by: accelerating our investment in manufacturing automation; further optimizing our global manufacturing footprint, including closing certain manufacturing facilities; re-engineering our go-to-market systems in developed markets; expanding shared services; and implementing simplified organization structures to drive efficiency. To build on the 2014 Productivity Plan, in the fourth quarter of 2017, we expanded and extended the plan through the end of 2019 to take advantage of additional opportunities within the initiatives described above that further strengthened our beverage, food and snack businesses. The 2014 Productivity Plan was completed in 2019. In 2019, there were no material pre-tax charges related to this plan and all cash payments were paid at year end. The total plan pre-tax charges and cash expenditures approximated the previously disclosed plan estimates of $1.3 billion and $960 million, respectively. These total plan pre-tax charges consisted of 59% of severance and other employee costs, 15% of asset impairments and 26% of other costs, including costs associated with the implementation of our initiatives, including certain consulting and other contract termination costs. These total plan pre-tax charges were incu
ed by division as follows: FLNA 14%, QFNA 3%, PBNA 29%, LatAm 15%, Europe 23%, AMESA 3%, APAC 3% and Corporate 10%. A summary of our 2014 Productivity Plan charges is as follows: 2018 Selling, general and administrative expenses $ 169 Other pension and retiree medical benefits expense 1 Total restructuring and impairment charges $ 170 After-tax amount $ 143 Net income attributable to PepsiCo per common share $ 0.10 2018 FLNA $ 8 QFNA 2 PBNA 51 LatAm 30 Europe 53 AMESA 15 APAC 12 Corporate (a) (1) Total $ 170 (a) Income amount primarily relates to other pension and retiree medical benefits. A summary of our 2014 Productivity Plan activity is as follows: Severance and Other Employee Costs Asset Other Costs Total Liability as of December 30, 2017 $ 212 $ — $ 14 $ 226 2018 restructuring charges 86 28 56 170 Cash payments (a) (203) — (52) (255) Non-cash charges and translation (4) (28) 5 (27) Liability as of December 29, 2018 91 — 23 114 Cash payments (77) — (16) (93) Non-cash charges and translation (14) — (7) (21) Liability as of December 28, 2019 $ — $ — $ — $ — (a) Excludes cash expenditures of $11 million reported in the cash flow statement in pension and retiree medical plan contributions. Other Productivity Initiatives There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2019 and 2014 Productivity Plans.
Intangible Assets
    Intangible Assets    12 Months Ended
        Dec. 26, 2020
    Intangible Assets [Abstract]
    Intangible Assets Disclosure [Text Block]    Intangible Assets A summary of our amortizable intangible assets is as follows: 2020 2019 2018 Average Gross Accumulated Net Gross Accumulated Net Acquired franchise rights (a) 56 – 60 $ 976 $ (173) $ 803 $ 846 $ (158) $ 688 Customer relationships (b) 10 – 24 642 (204) 438 457 (177) 280 Brands 20 – 40 1,348 (1,099) 249 1,326 (1,066) 260 Other identifiable intangibles 10 – 24 474 (261) 213 459 (254) 205 Total $ 3,440 $ (1,737) $ 1,703 $ 3,088 $ (1,655) $ 1,433 Amortization expense $ 90 $ 81 $ 69 (a) The change in 2020 primarily reflects our distribution agreement with Vital Pharmaceuticals, Inc., with an expected residual value higher than our ca
ying value. The distribution agreement’s useful life is three (b) The change in 2020 primarily reflects our acquisitions of Pioneer Foods and Be & Cheery. See Note 14 for further information. Amortization is recognized on a straight-line basis over an intangible asset’s estimated useful life. Amortization of intangible assets for each of the next five 2021 2022 2023 2024 2025 Five-year projected amortization $ 92 $ 89 $ 87 $ 87 $ 84 Depreciable and amortizable assets are 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 occu
ed which indicate the need for revision. Indefinite-Lived Intangible Assets We did not recognize any impairment charges for goodwill in each of the years ended December 26, 2020, December 28, 2019 and December 29, 2018. In 2020, we recognized a pre-tax impairment charge of $41 million related to a coconut water
and in PBNA. We did not recognize any material impairment charges for indefinite-lived intangible assets in each of the years ended December 28, 2019 and December 29, 2018. As of December 26, 2020, the estimated fair values of our indefinite-lived reacquired and acquired franchise rights recorded at PBNA exceeded their ca
ying values. However, there could be an impairment of the ca
ying value of PBNA’s reacquired and acquired franchise rights if future revenues and their contribution to the operating results of PBNA’s CSD business do not achieve our expected future cash flows or if macroeconomic conditions result in a future increase in the weighted-average cost of capital used to estimate fair value. We have also analyzed the impact of the macroeconomic conditions in Russia on the estimated fair value of our indefinite-lived intangible assets in Russia and have concluded that there are no impairments for the year ended December 26, 2020. However, there could be an impairment of the ca
ying value of certain
ands in Russia, including juice and dairy
ands, if there is a deterioration in these conditions, if future revenues and their contributions to the operating results do not achieve our expected future cash flows (including perpetuity growth assumptions), if there are significant changes in the decisions regarding assets that do not perform consistent with our expectations, or if macroeconomic conditions result in a future increase in the weighted-average cost of capital used to estimate fair value. For further information on our policies for indefinite-lived intangible assets, see Note 2. The change in the book value of indefinite-lived intangible assets is as follows: Balance, Acquisitions Translation Balance, Acquisitions Translation Balance, FLNA (a) Goodwill $ 297 $ (3) $ 5 $ 299 $ 164 $ 2 $ 465 Brands 161 — 1 162 179 (1) 340 Total 458 (3) 6 461 343 1 805 QFNA Goodwill 184 6 (1) 189 — — 189 Brands 25 (14) — 11 — (11) — Total 209 (8) (1) 200 — (11) 189 PBNA (b) Goodwill 9,813 66 19 9,898 2,280 11 12,189 Reacquired franchise rights 7,058 — 31 7,089 — 18 7,107 Acquired franchise rights 1,510 — 7 1,517 16 3 1,536 Brands 353 418 (8) 763 2,400 (41) 3,122 Total 18,734 484 49 19,267 4,696 (9) 23,954 LatAm Goodwill 509 — (8) 501 — (43) 458 Brands 127 — (2) 125 — (17) 108 Total 636 — (10) 626 — (60) 566 Europe (c) (d) Goodwill 3,361 440 160 3,961 (2) (153) 3,806 Reacquired franchise rights 497 — 8 505 — (9) 496 Acquired franchise rights 161 — (4) 157 — 15 172 Brands 4,188 (139) 132 4,181 — (109) 4,072 Total 8,207 301 296 8,804 (2) (256) 8,546 AMESA (e) Goodwill 437 11 (2) 446 560 90 1,096 Brands — — — — 183 31 214 Total 437 11 (2) 446 743 121 1,310 APAC (f) Goodwill 207 — — 207 306 41 554 Brands 101 — (1) 100 309 36 445 Total 308 — (1) 307 615 77 999 Total goodwill 14,808 520 173 15,501 3,308 (52) 18,757 Total reacquired franchise rights 7,555 — 39 7,594 — 9 7,603 Total acquired franchise rights 1,671 — 3 1,674 16 18 1,708 Total
ands 4,955 265 122 5,342 3,071 (112) 8,301 Total $ 28,989 $ 785 $ 337 $ 30,111 $ 6,395 $ (137) $ 36,369 (a) The change in acquisitions in 2020 primarily reflects our acquisition of BFY Brands. (b) The change in acquisitions in 2020 primarily reflects our acquisition of Rockstar. See Note 14 for further information. The change in acquisitions in 2019 primarily reflects our acquisition of CytoSport Inc. (c) The change in translation and other in 2020 primarily reflects the depreciation of the Russian ruble. The change in translation and other in 2019 primarily reflects the appreciation of the Russian ruble. (d) The change in acquisitions in 2019 primarily reflects our acquisition of SodaStream. See Note 14 for further information. (e) The change in acquisitions in 2020 primarily reflects our acquisition of Pioneer Foods. See Note 14 for further information.
Income Taxes
    Income Taxes    12 Months Ended
        Dec. 26, 2020
    Income Tax Disclosure [Abstract]
    Income Taxes    Income Taxes The components of income before income taxes are as follows: 2020 2019 2018 United States $ 4,070 $ 4,123 $ 3,864 Foreign 4,999 5,189 5,325 $ 9,069 $ 9,312 $ 9,189 The provision fo
(benefit from) income taxes consisted of the following: 2020 2019 2018 Cu
ent: U.S. Federal $ 715 $ 652 $ 437 Foreign 932 807 378 State 110 196 63 1,757 1,655 878 Defe
ed: U.S. Federal 273 325 140 Foreign (167) (31) (4,379) State 31 10 (9) 137 304 (4,248) $ 1,894 $ 1,959 $ (3,370) A reconciliation of the U.S. Federal statutory tax rate to our annual tax rate is as follows: 2020 2019 2018 U.S. Federal statutory tax rate 21.0 % 21.0 % 21.0 % State income tax, net of U.S. Federal tax benefit 1.2 1.6 0.5 Lower taxes on foreign results (0.8) (0.9) (2.2) One-time mandatory transition tax - TCJ Act — (0.1) 0.1 Remeasurement of defe
ed taxes - TCJ Act — — (0.4) International reorganizations — — (47.3) Tax settlements — — (7.8) Other, net (0.5) (0.6) (0.6) Annual tax rate 20.9 % 21.0 % (36.7) % Tax Cuts and Jobs Act During the fourth quarter of 2017, the TCJ Act was enacted in the United States. Among its many provisions, the TCJ Act imposed a mandatory one-time transition tax on undistributed international earnings and reduced the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018. In 2017, the SEC issued guidance related to the TCJ Act which allowed recording of provisional tax expense using a measurement period, not to exceed one year, when information necessary to complete the accounting for the effects of the TCJ Act is not available. We elected to apply the measurement period provisions of this guidance to certain income tax effects of the TCJ Act when it became effective in the fourth quarter of 2017. As a result of the enactment of the TCJ Act, we recognized a provisional net tax expense of $2.5 billion ($1.70 per share) in the fourth quarter of 2017. The provisional measurement period allowed by the SEC ended in the fourth quarter of 2018. As a result, in 2018, we recognized a net tax benefit of $28 million ($0.02 per share) related to the TCJ Act. While our accounting for the recorded impact of the TCJ Act was deemed to be complete, additional guidance issued by the IRS impacted our recorded amounts after December 29, 2018. In 2019, we recognized a net tax benefit totaling $8 million ($0.01 per share) related to the TCJ Act. There were no tax amounts recognized in 2020 related to the TCJ Act. As of December 26, 2020, our mandatory transition tax liability was $3.2 billion, which must be paid through 2026 under the provisions of the TCJ Act. We reduced our liability through cash payments and application of tax overpayments by $78 million in 2020, $663 million in 2019 and $150 million in 2018. We cu
ently expect to pay approximately $309 million of this liability in 2021. The TCJ Act also created a requirement that certain income earned by foreign subsidiaries, known as global intangible low-tax income (GILTI), must be included in the gross income of their U.S. shareholder. The FASB allows an accounting policy election of either recognizing defe
ed taxes for temporary differences expected to reverse as GILTI in future years or recognizing such taxes as a cu
ent-period expense when incu
ed. During the first quarter of 2018, we elected to treat the tax effect of GILTI as a cu
ent-period expense when incu
ed. Coronavirus Aid, Relief, and Economic Security Act The CARES Act was enacted on March 27, 2020 in the United States. The CARES Act and related notices include several significant provisions, such as delaying certain payroll tax payments, mandatory transition tax payments under the TCJ Act and estimated income tax payments. The CARES Act did not have a material impact on our financial results in 2020, including on our annual estimated effective tax rate or on our liquidity. We will continue to monitor and assess the impact similar legislation in other countries may have on our business and financial results. Other Tax Matters On May 19, 2019, a public referendum held in Switzerland passed the TRAF, effective January 1, 2020. The enactment of certain provisions of the TRAF resulted in adjustments to our defe
ed taxes. During 2020, we recorded a net tax benefit of $72 million related to the adoption of the TRAF in the Swiss Canton of Bern. During 2019, we recorded net tax expense of $24 million related to the impact of the TRAF. While the accounting for the impacts of the TRAF are deemed to be complete, further adjustments to our financial statements and related disclosures could be made in future quarters, including in connection with final tax return filings. In 2018, we reorganized certain of our international operations, including the intercompany transfer of certain intangible assets. As a result, we recognized other net tax benefits of $4.3 billion ($3.05 per share) in 2018. The related defe
ed tax asset of $4.4 billion is being amortized over a period of 15 years beginning in 2019. Additionally, the reorganization generated significant net operating loss ca
yforwards and related defe
ed tax assets that are not expected to be realized, resulting in the recording of a full valuation allowance. Defe
ed tax liabilities and assets are comprised of the following: 2020 2019 Defe
ed tax liabilities Debt guarantee of wholly-owned subsidiary $ 578 $ 578 Property, plant and equipment 1,851 1,583 Recapture of net operating losses 504 335 Right-of-use assets 371 345 Other 159 167 Gross defe
ed tax liabilities 3,463 3,008 Defe
ed tax assets Net ca
yforwards 5,008 4,168 Intangible assets other than nondeductible goodwill 1,146 793 Share-based compensation 90 94 Retiree medical benefits 153 154 Other employee-related benefits 373 350 Pension benefits 80 104 Deductible state tax and interest benefits 150 126 Lease liabilities 371 345 Other 866 741 Gross defe
ed tax assets 8,237 6,875 Valuation allowances (4,686) (3,599) Defe
ed tax assets, net 3,551 3,276 Net defe
ed tax assets $ (88) $ (268) A summary of our valuation allowance activity is as follows: 2020 2019 2018 Balance, beginning of year $ 3,599 $ 3,753 $ 1,163 Provision 1,082 (124) 2,639 Other additions/(deductions) 5 (30) (49) Balance, end of year $ 4,686 $ 3,599 $ 3,753 Reserves A number of years may elapse before a particular matter, for which we have established a reserve, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. Our major taxing jurisdictions and the related open tax audits are as follows: Jurisdiction Years Open to Audit Years Cu
ently Under Audit United States 2014-2019 2014-2016 Mexico 2014-2019 2014-2016 United Kingdom 2017-2019 None Canada (Domestic) 2016-2019 2016-2017 Canada (International) 2010-2019 2010-2017 Russia 2017-2019 None In 2018, we recognized a non-cash tax benefit of $364 million ($0.26 per share) resulting from the conclusion of certain international tax audits. Additionally, in 2018, we recognized non-cash tax benefits of $353 million ($0.24 per share) as a result of our agreement with the IRS resolving all open matters related to the audits of taxable years 2012 and 2013, including the associated state impact. The conclusion of certain international tax audits and the resolution with the IRS, collectively, resulted in non-cash tax benefits totaling $717 million ($0.50 per share) in 2018. Our annual tax rate is based on our income, statutory tax rates and tax planning strategies and transactions, including transfer pricing a
angements, available to us in the various jurisdictions in which we operate. Significant judgment is required in determining our annual tax rate and in evaluating our tax positions. We establish reserves when, despite our belief that our tax return positions are fully supportable, we believe that certain positions are subject to challenge and that we likely will not succeed. We adjust these reserves, as well as the related interest, in light of changing facts and circumstances, such as the progress of a tax audit, new tax laws, relevant court cases or tax authority settlements. Settlement of any particular issue would usually require the use of cash. Favorable resolution would be recognized as a reduction to our annual tax rate in the year of resolution. As of December 26, 2020, the total gross amount of reserves for income taxes, reported in other liabilities, was $1.6 billion. We accrue interest related to reserves for income taxes in our provision for income taxes and any associated penalties are recorded in selling, general and administrative expenses. The gross amount of interest accrued, reported in other liabilities, was $338 million as of December 26, 2020, of which $93 million of tax expense was recognized in 2020. The gross amount of interest accrued, reported in other liabilities, was $250 million as of December 28, 2019, of which $84 million of tax expense was recognized in 2019. A reconciliation of unrecognized tax benefits is as follows: 2020 2019 Balance, beginning of year $ 1,395 $ 1,440 Additions for tax positions related to the cu
ent year 128 179 Additions for tax positions from prior years 153 93 Reductions for tax positions from prior years (22) (201) Settlement payments (13) (74) Statutes of limitations expiration (23) (47) Translation and other 3 5 Balance, end of year $ 1,621 $ 1,395 Ca
yforwards and Allowances Operating loss ca
yforwards totaling $28.3 billion as of December 26, 2020 are being ca
ied forward in a number of foreign and state jurisdictions where we are permitted to use tax operating losses from prior periods to reduce future taxable income. These operating losses will expire as follows: $0.2 billion in 2021, $25.2 billion between 2022 and 2040 and $2.9 billion may be ca
ied forward indefinitely. We establish valuation allowances for our defe
ed tax assets if, based on the available evidence, it is more likely than not that some portion or all of the defe
ed tax assets will not be realized. Undistributed International Earnings In 2018, we repatriated $20.4 billion of cash, cash equivalents and short-term investments held in our foreign subsidiaries without such funds being subject to further U.S. federal income tax liability, related to the TCJ Act. As of December 26, 2020, we had approximately $6 billion of undistributed international earnings. We intend to continue to reinvest $6 billion of earnings outside the United States for the
Share-Based Compensation
    Share-Based Compensation    12 Months Ended
        Dec. 26, 2020
    Share-based Payment A
angement, Noncash Expense [Abstract]
    Stock-Based Compensation    Share-Based Compensation Our share-based compensation program is designed to attract and retain employees while also aligning employees’ interests with the interests of our shareholders. PepsiCo has granted stock options, RSUs, PSUs, PEPunits and long-term cash awards to employees under the shareholder-approved PepsiCo, Inc. Long-Term Incentive Plan (LTIP). Executives who are awarded long-term incentives based on their performance may generally elect to receive their grant in the form of stock options or RSUs, or a combination thereof. Executives who elect stock options receive four stock options for every one RSU that would have otherwise been granted. Certain executive officers and other senior executives do not have a choice and are granted 66% PSUs and 34% long-term cash, each of which are subject to pre-established performance targets. The Company may use authorized and unissued shares to meet share requirements resulting from the exercise of stock options and the vesting of RSUs, PSUs and PEPunits. As of December 26, 2020, 52 million shares were available for future share-based compensation grants under the LTIP. The following table summarizes our total share-based compensation expense, which is primarily recorded in selling, general and administrative expenses, and excess tax benefits recognized: 2020 2019 2018 Share-based compensation expense - equity awards $ 264 $ 237 $ 256 Share-based compensation expense - liability awards 11 8 20 Restructuring charges (1) (2) (6) Total $ 274 $ 243 $ 270 Income tax benefits recognized in earnings related to share-based compensation $ 48 $ 39 $ 45 Excess tax benefits related to share-based compensation $ 35 $ 50 $ 48 As of December 26, 2020, there was $300 million of total unrecognized compensation cost related to nonvested share-based compensation grants. This unrecognized compensation cost is expected to be recognized over a weighted-average period of two years. Method of Accounting and Our Assumptions The fair value of share-based award grants is amortized to expense over the vesting period, primarily three years. Awards to employees eligible for retirement prior to the award becoming fully vested are amortized to expense over the period through the date that the employee first becomes eligible to retire and is no longer required to provide service to earn the award. In addition, we use historical data to estimate forfeiture rates and record share-based compensation expense only for those awards that are expected to vest. We do not backdate, reprice or grant share-based compensation awards retroactively. Repricing of awards would require shareholder approval under the LTIP. Stock Options A stock option permits the holder to purchase shares of PepsiCo common stock at a specified price. We account for our employee stock options 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. Our weighted-average Black-Scholes fair value assumptions are as follows: 2020 2019 2018 Expected life 6 years 5 years 5 years Risk-free interest rate 0.9 % 2.4 % 2.6 % Expected volatility 14 % 14 % 12 % Expected dividend yield 3.4 % 3.1 % 2.7 % 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 interest rate is based on the expected U.S. Treasury rate over the expected life. Volatility reflects movements in our stock price over the most recent historical period equivalent to the expected life. Dividend yield is estimated over the expected life based on our stated dividend policy and forecasts of net income, share repurchases and stock price. A summary of our stock option activity for the year ended December 26, 2020 is as follows: Options (a) Weighted-Average Exercise Weighted-Average Contractual Aggregate Intrinsic Value (a) Outstanding at December 28, 2019 11,625 $ 89.03 Granted 1,847 $ 131.79 Exercised (2,440) $ 73.37 Forfeited/expired (392) $ 102.69 Outstanding at December 26, 2020 10,640 $ 99.54 5.26 $ 484,362 Exercisable at December 26, 2020 6,545 $ 85.84 3.31 $ 387,625 Expected to vest as of December 26, 2020 3,719 $ 120.67 8.31 $ 90,725 (a) In thousands. Restricted Stock Units and Performance Stock Units Each RSU represents our obligation to deliver to the holder one share of PepsiCo common stock when the award vests at the end of the service period. PSUs are awards pursuant to which a number of shares are delivered to the holder upon vesting at the end of the service period based on PepsiCo’s performance against specified financial performance metrics. The number of shares may be increased to the maximum or reduced to the minimum threshold based on the results of these performance metrics in accordance with the terms established at the time of the award. During the vesting period, RSUs and PSUs accrue dividend equivalents that pay out in cash (without interest) if and when the applicable RSU or PSU vests and becomes payable. The fair value of RSUs and PSUs are measured at the market price of the Company’s stock on the date of grant. A summary of our RSU and PSU activity for the year ended December 26, 2020 is as follows: RSUs/PSUs (a) Weighted-Average Weighted-Average Contractual Life Aggregate Intrinsic Value (a) Outstanding at December 28, 2019 6,380 $ 111.53 Granted (b) 2,496 $ 131.21 Converted (c) (2,315) $ 109.61 Forfeited (434) $ 117.51 Outstanding at December 26, 2020 (d) 6,127 $ 119.92 1.27 $ 888,832 Expected to vest as of December 26, 2020 5,447 $ 119.72 1.26 $ 790,179 (a) In thousands. (b) Grant activity for all PSUs are disclosed at target. (c) Represents the number of PSUs that vested during the year, net of awards above and below target levels based on the achievement of its performance conditions. (d) The outstanding PSUs for which the vesting period has not ended as of December 26, 2020, at the threshold, target and maximum award levels were zero, 1 million and 2 million, respectively. PEPunits PEPunits provide an opportunity to earn shares of PepsiCo common stock with a value that adjusts based upon changes in PepsiCo’s absolute stock price as well as PepsiCo’s Total Shareholder Return relative to the S&P 500 over a three-year performance period. The fair value of PEPunits is measured using the Monte-Carlo simulation model, which incorporates into the fair-value determination the possibility that the market condition may not be satisfied until actual performance is determined. PEPunits were last granted in 2015 and all outstanding PEPunits were converted to 278,000 shares in 2018. Long-Term Cash Certain executive officers and other senior executives were granted long-term cash awards for which final payout is based on PepsiCo’s Total Shareholder Return relative to a specific set of peer companies and achievement of a specified performance target over a three-year performance period. Long-term cash awards that qualify as liability awards under share-based compensation guidance are valued through the end of the performance period on a mark-to-market basis using the Monte Carlo simulation model. A summary of our long-term cash activity for the year ended December 26, 2020 is as follows: Long-Term Cash Award (a) Balance Sheet Date Fair Value (a) Contractual Life Remaining Outstanding at December 28, 2019 $ 44,224 Granted (b) 18,975 Vested (c) (15,686) Forfeited — Outstanding at December 26, 2020 (d) $ 47,513 $ 45,669 1.23 Expected to vest as of December 26, 2020 $ 42,658 $ 41,318 1.14 (a) In thousands. (b) Grant activity for all long-term cash awards are disclosed at target. (c) Represents the amount of long-term cash awards that vested during the year, net of awards above and below target levels based on the achievement of its market conditions. (d) The outstanding long-term cash awards for which the vesting period has not ended as of December 26, 2020, at the threshold, target and maximum award levels were zero, 48 million and 95 million, respectively. Other Share-Based Compensation Data The following is a summary of other share-based compensation data: 2020 2019 2018 Stock Options Total number of options granted (a) 1,847 1,286 1,429 Weighted-average grant-date fair value of options granted $ 8.31 $ 10.89 $ 9.80 Total intrinsic value of options exercised (a) $ 155,096 $ 275,745 $ 224,663 Total grant-date fair value of options vested (a) $ 8,652 $ 9,838 $ 15,506 RSUs/PSUs Total number of RSUs/PSUs granted (a) 2,496 2,754 2,634 Weighted-average grant-date fair value of RSUs/PSUs granted $ 131.21 $ 116.87 $ 108.75 Total intrinsic value of RSUs/PSUs converted (a) $ 303,165 $ 333,951 $ 260,287 Total grant-date fair value of RSUs/PSUs vested (a) $ 235,523 $ 275,234 $ 232,141 PEPunits Total intrinsic value of PEPunits converted (a) $ — $ — $ 30,147 Total grant-date fair value of PEPunits vested (a) $ — $ — $ 9,430 (a) In thousands. As of December 26, 2020 and December 28, 2019, there were approximately 287,000 and 269,000 outstanding awards, respectively, consisting primarily of phantom stock units that were granted under the PepsiCo Director Defe
al Program and will be settled in shares of PepsiCo common stock pursuant to the LTIP at the end of the applicable defe
al period, not included in the tables above.
Pension, Retiree Medical and Sa
    Pension, Retiree Medical and Savings Plans    12 Months Ended
        Dec. 26, 2020
    Retirement Benefits, Description [Abstract]
    Pension, Retiree Medical and Savings Plans    Pension, Retiree Medical and Savings Plans In 2020, lump sum distributions exceeded the total of annual service and interest cost and triggered a pre-tax settlement charge in Plan A of $205 million ($158 million after-tax or $0.11 per share). In 2020, we adopted an amendment to the U.S. defined benefit pension plans to freeze benefit accruals for salaried participants, effective December 31, 2025. Since 2011, salaried new hires are not eligible to participate in the defined benefit plan. After the effective date, all salaried participants will receive an employer contribution to the 401(k) savings plan based on age and years of service regardless of employee contribution and will have the opportunity to receive employer contributions to match employee contributions up to defined limits. As a result of this amendment, pension benefits pre-tax expense is expected to decrease by approximately $70 million in 2021, primarily impacting corporate unallocated expenses. In 2020, we approved an amendment to reorganize the U.S. qualified defined benefit pension plans that resulted in the transfer of certain participants from Plan A to Plan I and to a newly created plan, Plan H, effective January 1, 2021. The benefits offered to the plans’ participants were unchanged. The reorganization will facilitate a more targeted investment strategy and provide additional flexibility in evaluating opportunities to reduce risk and volatility. No material impact to pension benefit pre-tax expense is expected from this reorganization. In 2020, we adopted an amendment, effective January 1, 2021, to enhance the pay credit benefits of certain participants in Plan H. As a result of this amendment, pension benefits pre-tax expense is expected to increase approximately $45 million in 2021, primarily impacting service cost expense. In 2019, Plan A purchased a group annuity contract whereby a third-party insurance company assumed the obligation to pay and administer future annuity payments for certain retirees. This transaction triggered a pre-tax settlement charge in 2019 of $220 million ($170 million after-tax or $0.12 per share). Also in 2019, certain former employees who had vested benefits in our U.S. defined benefit pension plans were offered the option of receiving a one-time lump sum payment equal to the present value of the participant’s pension benefit. This transaction triggered a pre-tax settlement charge in 2019 of $53 million ($41 million after-tax or $0.03 per share). Collectively, the group annuity contract and one-time lump sum payments to certain former employees who had vested benefits resulted in settlement charges in 2019 of $273 million ($211 million after-tax or $0.15 per share). 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, as well as changes in our assumptions, are determined at each measurement date. These differences are recognized as a component of net gain or loss in accumulated other comprehensive loss. If this net accumulated gain or loss exceeds 10% of the greater of the market-related value of plan assets or plan obligations, a portion of the net gain or loss is included in other pension and retiree medical benefits (expense)/income for the following year based upon the average remaining service life for participants in Plan A (approximately 10 years) and retiree medical (approximately 8 years), or the remaining life expectancy for participants in Plan I (approximately 23 years). In 2021, we expect the average remaining service life for participants in Plan A to be approximately 9 years, the remaining life expectancy for participants in Plan I to be approximately 27 years and the average remaining service life for participants in Plan H to be approximately 11 years. The cost or benefit of plan changes that increase or decrease benefits for prior employee service (prior service cost/(credit)) is included in other pension and retiree medical benefits (expense)/income on a straight-line basis over the average remaining service life for participants in both Plan A and Plan H, except that prior service cost/(credit) for salaried participants subject to the freeze will be amortized on a straight-line basis over the period up to the effective date of the freeze, or the remaining life expectancy for participants in Plan I. Selected financial information for our pension and retiree medical plans is as follows: Pension Retiree Medical U.S. International 2020 2019 2020 2019 2020 2019 Change in projected benefit obligation Obligation at beginning of year $ 15,230 $ 13,807 $ 3,753 $ 3,098 $ 988 $ 996 Service cost 434 381 86 73 25 23 Interest cost 435 543 85 97 25 36 Plan amendments (221) 15 (17) 1 (25) — Participant contributions — — 2 2 — — Experience loss 2,042 2,091 467 515 81 36 Benefit payments (378) (341) (92) (100) (89) (105) Settlement/curtailment (808) (1,268) (24) (31) — — Special termination benefits 19 2 — — — — Other, including foreign cu
ency adjustment — — 170 98 1 2 Obligation at end of year $ 16,753 $ 15,230 $ 4,430 $ 3,753 $ 1,006 $ 988 Change in fair value of plan assets Fair value at beginning of year $ 14,302 $ 12,258 $ 3,732 $ 3,090 $ 302 $ 285 Actual return on plan assets 1,908 3,101 401 551 47 78 Employer contributions/funding 387 550 120 122 55 44 Participant contributions — — 2 2 — — Benefit payments (378) (341) (92) (100) (89) (105) Settlement (754) (1,266) (29) (31) — — Other, including foreign cu
ency adjustment — — 169 98 — — Fair value at end of year $ 15,465 $ 14,302 $ 4,303 $ 3,732 $ 315 $ 302 Funded status $ (1,288) $ (928) $ (127) $ (21) $ (691) $ (686) Amounts recognized Other assets $ 797 $ 744 $ 110 $ 99 $ — $ — Other cu
ent liabilities (53) (52) (1) (1) (51) (58) Other liabilities (2,032) (1,620) (236) (119) (640) (628) Net amount recognized $ (1,288) $ (928) $ (127) $ (21) $ (691) $ (686) Amounts included in accumulated other comprehensive loss (pre-tax) Net loss/(gain) $ 4,116 $ 3,516 $ 1,149 $ 914 $ (212) $ (285) Prior service (credit)/cost (119) 114 (19) — (45) (32) Total $ 3,997 $ 3,630 $ 1,130 $ 914 $ (257) $ (317) Changes recognized in net loss/(gain) included in other comprehensive loss Net loss/(gain) arising in cu
ent year $ 1,009 $ (120) $ 268 $ 152 $ 50 $ (24) Amortization and settlement recognition (409) (457) (75) (44) 23 27 Foreign cu
ency translation loss/(gain) — — 42 26 — (1) Total $ 600 $ (577) $ 235 $ 134 $ 73 $ 2 Accumulated benefit obligation at end of year $ 15,949 $ 14,255 $ 4,108 $ 3,441 The net loss/(gain) arising in the cu
ent year is primarily attributable to the decrease in discount rate, offset by actual asset returns exceeding expected returns. The amount we report in operating profit as pension and retiree medical cost is service cost, which is the value of benefits earned by employees for working during the year. The amounts we report below operating profit as pension and retiree medical cost consist of the following components: • Interest cost is the accrued interest on the projected benefit obligation due to the passage of time. • Expected return on plan assets is the long-term return we expect to earn on plan investments for our funded plans that will be used to settle future benefit obligations. • Amortization of prior service cost/(credit) represents the recognition in the income statement of benefit changes resulting from plan amendments. • Amortization of net loss/(gain) represents the recognition in the income statement of changes in the amount of plan assets and the projected benefit obligation based on changes in assumptions and actual experience. • Settlement/curtailment loss/(gain) represents the result of actions that effectively eliminate all or a portion of related projected benefit obligations. Settlements are triggered when payouts to settle the projected benefit obligation of a plan due to lump sums or other events exceed the annual service and interest cost. Settlements are recognized when actions are i
evocable and we are relieved of the primary responsibility and risk for projected benefit obligations. Lump sum payouts are generally higher when interest rates are lower. Curtailments are due to events such as plant closures or the sale of a business resulting in a reduction of future service or benefits. Curtailment losses are recognized when an event is probable and estimable, while curtailment gains are recognized when an event has occu
ed (when the related employees terminate or an amendment is adopted). • Special termination benefits are the additional benefits offered to employees upon departure due to actions such as restructuring. The components of total pension and retiree medical benefit costs are as follows: Pension Retiree Medical U.S. International 2020 2019 2018 2020 2019 2018 2020 2019 2018 Service cost $ 434 $ 381 $ 431 $ 86 $ 73 $ 92 $ 25 $ 23 $ 32 Other pension and retiree medical benefits (income)/expense: Interest cost $ 435 $ 543 $ 482 $ 85 $ 97 $ 93 $ 25 $ 36 $ 34 Expected return on plan assets (929) (892) (943) (202) (188) (197) (16) (18) (19) Amortization of prior service cost/(credits) 12 10 3 — — — (12) (19) (20) Amortization of net losses/(gains) 196 161 179 61 32 45 (23) (27) (8) Settlement/curtailment losses (a) 213 296 8 19 12 6 — — — Special termination benefits 19 1 36 — — 2 — — 1 Total other pension and retiree medical benefits (income)/expense $ (54) $ 119 $ (235) $ (37) $ (47) $ (51) $ (26) $ (28) $ (12) Total $ 380 $ 500 $ 196 $ 49 $ 26 $ 41 $ (1) $ (5) $ 20 (a) In 2020, U.S. includes a settlement charge of $205 million ($158 million after-tax or $0.11 per share) related to lump sum distributions exceeding the total of annual service and interest cost. In 2019, U.S. includes settlement charges related to the purchase of a group annuity contract of $220 million ($170 million after-tax or $0.12 per share) and a pension lump sum settlement charge of $53 million ($41 million after-tax or $0.03 per share). The following table provides the weighted-average assumptions used to determine net periodic benefit cost and projected benefit obligation for our pension and retiree medical plans: Pension Retiree Medical U.S. International 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net Periodic Benefit Cost Service cost discount rate 3.4 % 4.4 % 3.8 % 3.2 % 4.2 % 3.5 % 3.2 % 4.3 % 3.6 % Interest cost discount rate 2.9 % 4.1 % 3.4 % 2.4 % 3.2 % 2.8 % 2.6 % 3.8 % 3.0 % Expected return on plan assets 6.8 % 7.1 % 7.2 % 5.6 % 5.8 % 6.0 % 5.8 % 6.6 % 6.5 % Rate of salary increases 3.1 % 3.1 % 3.1 % 3.3 % 3.7 % 3.7 % Projected Benefit Obligation Discount rate 2.5 % 3.3 % 4.4 % 2.0 % 2.5 % 3.4 % 2.3 % 3.1 % 4.2 % Rate of salary increases 3.0 % 3.1 % 3.1 % 3.3 % 3.3 % 3.7 % The following table provides selected information about plans with accumulated benefit obligation and total projected benefit obligation in excess of plan assets: Pension Retiree Medical U.S. International 2020 2019 2020 2019 2020 2019 Selected information for plans with accumulated benefit obligation in excess of plan assets (a) Obligation for service to date $ (5,537) $ (9,194) $ (172) $ (192) Fair value of plan assets $ 4,156 $ 8,497 $ 123 $ 151 Selected information for plans with projected benefit obligation in excess of plan assets Benefit obligation $ (9,172) $ (10,169) $ (2,933) $ (632) $ (1,006) $ (988) Fair value of plan assets $ 7,088 $ 8,497 $ 2,696 $ 512 $ 315 $ 302 (a) The decrease in U.S. pension plans in 2020 primarily reflects the approved reorganization of the U.S. qualified defined benefit plans, resulting in the transfer of obligations and plan assets relating to certain participants from Plan A to Plan I and Plan H. Of the total projected pension benefit obligation as of December 26, 2020, approximately $854 million relates to plans that we do not fund because the funding of such plans does not receive favorable tax treatment. Future Benefit Payments Our estimated future benefit payments are as follows: 2021 2022 2023 2024 2025 2026 - 2030 Pension $ 925 $ 1,080 $ 915 $ 960 $ 990 $ 5,270 Retiree medical (a) $ 95 $ 95 $ 90 $ 85 $ 80 $ 370 (a) Expected future benefit payments for our retiree medical plans do not reflect any estimated subsidies expected to be received under the 2003 Medicare Act. Subsidies are expected to be approximately $1 million for each of the years from 2021 through 2025 and approximately $4 million in total for 2026 through 2030. These future benefit payments to beneficiaries include payments from both funded and unfunded plans. Funding Contributions to our pension and retiree medical plans were as follows: Pension Retiree Medical 2020 2019 2018 2020 2019 2018 Discretionary (a) $ 339 $ 417 $ 1,417 $ — $ — $ 37 Non-discretionary 168 255 198 55 44 56 Total $ 507 $ 672 $ 1,615 $ 55 $ 44 $ 93 (a) Includes $325 million contribution in 2020, $400 million contribution in 2019 and $1.4 billion contribution in 2018 to fund Plan A in the United States. In November 2020, we received approval from our Board of Directors to make discretionary contributions of $500 million to our U.S. qualified defined benefit plans. We contributed $300 million of the approved amount in January 2021; we expect to contribute the remaining $200 million in the third quarter of 2021. In addition, in 2021, we expect to make non-discretionary contributions of approximately $160 million to our U.S. and international pension benefit plans and approximately $50 million for retiree medical benefits. We continue to monitor the impact of the COVID-19 pandemic and related global economic conditions and uncertainty on the net unfunded status of our pension and retiree medical plans. We regularly evaluate opportunities to reduce risk and volatility associated with our pension and retiree medical plans. Plan Assets Our pension plan investment strategy includes the use of actively managed accounts and is reviewed periodically in conjunction with plan obligations, an evaluation of market conditions, tolerance for risk and cash requirements for benefit payments. This strategy is also applicable to funds held for the retiree medical plans. Our investment objective includes ensuring that funds are available to meet the plans’ benefit obligations when they become due. Assets contributed to our pension plans are no longer controlled by us, but become the property of our individual pension plans. However, we are indirectly impacted by changes in these plan assets as compared to changes in our projected obligations. Our overall investment policy is to prudently invest plan assets in a well-diversified portfolio of equity and high-quality debt securities and real estate to achieve our long-term return expectations. Our investment policy also permits the use of derivative instruments, such as futures and forward contracts, to reduce interest rate and foreign cu
ency risks. Futures contracts represent commitments to purchase or sell securities at a future date and at a specified price. Forward contracts consist of cu
ency forwards. For 2021 and 2020, our expected long-term rate of return on U.S. plan assets is 6.4% and 6.8%, respectively. Our target investment allocations for U.S. plan assets are as follows: 2021 2020 Fixed income 51 % 50 % U.S. equity 24 % 25 % International equity 21 % 21 % Real estate 4 % 4 % Actual investment allocations may vary from our target investment allocations due to prevailing market conditions. We regularly review our actual investment allocations and periodically rebalance our investments. The expected return on plan assets is based on our investment strategy and our expectations for long-term rates of return by asset class, taking into account volatility and co
elation among asset classes and our historical experience. We also review cu
ent levels of interest rates and inflation to assess the reasonableness of the long-term rates. We evaluate our expected return assumptions annually to ensure that they are reasonable. To calculate the expected return on plan assets, our market-related value of assets for fixed income is the actual fair value. For all other asset categories, such as equity securities, we use a method that recognizes investment gains or losses (the difference between the expected and actual return based on the market-related value of assets) over a five-year period. This has the effect of reducing year-to-year volatility. Plan assets measured at fair value as of year-end 2020 and 2019 are categorized consistently by Level 1 (quoted prices in active markets for identical assets), Level 2 (significant other observable inputs) and Level 3 (significant unobservable inputs) in both years and are as follows: Fair Value Hierarchy Level 2020 2019 U.S. plan assets (a) Equity securities, including prefe
ed stock (b) 1 $ 7,179 $ 6,605 Government securities (c) 2 2,177 2,154 Corporate bonds (c) 2 5,437 4,737 Mortgage-backed securities (c) 2 119 159 Contracts with insurance companies (d) 3 9 9 Cash and cash equivalents (e) 1, 2 278 275 Sub-total U.S. plan assets 15,199 13,939 Real estate commingled funds measured at net asset value (f) 517 605 Dividends and interest receivable, net of payables 64 60 Total U.S. plan assets $ 15,780 $ 14,604 International plan assets Equity securities (b) 1, 2 $ 2,119 $ 1,973 Government securities (c) 2 937 725 Corporate bonds (c) 2 445 331 Fixed income commingled funds (g) 1 509 437 Contracts with insurance companies (d) 3 50 42 Cash and cash equivalents 1 33 24 Sub-total international plan assets 4,093 3,532 Real estate commingled funds measured at net asset value (f) 202 193 Dividends and interest receivable 8 7 Total international plan assets $ 4,303 $ 3,732 (a) Includes $315 million and $302 million in 2020 and 2019, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries. (b) Invested in U.S. and international common stock and commingled funds, and the prefe
ed stock portfolio was invested in domestic and international corporate prefe
ed stock investments. The common stock is based on quoted prices in active markets. The commingled funds are based on the published price of the fund and include one large-cap fund that represents 13% and 16% of total U.S. plan assets for 2020 and 2019, respectively. The prefe
ed stock investments are based on quoted bid prices for comparable securities in the marketplace and
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dealer quotes in active markets. The international portfolio includes Level 1 assets of $2,119 million and $1,941 million for 2020 and 2019, respectively, and Level 2 assets of $32 million for 2019. (c) These investments are based on quoted bid prices for comparable securities in the marketplace and
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dealer quotes in active markets. Corporate bonds of U.S.-based companies represent 30% and 28% of total U.S. plan assets for 2020 and 2019, respectively. (d) Based on the fair...