Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 08, 2019 | Jun. 15, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 29, 2018 | ||
Trading Symbol | PEP | ||
Entity Registrant Name | PEPSICO INC | ||
Entity Central Index Key | 77,476 | ||
Entity Common Stock, Shares Outstanding | 1,404,686,108 | ||
Entity Public Float | $ 152 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |||||
Income Statement [Abstract] | |||||||
Revenues | $ 64,661 | [1] | $ 63,525 | $ 62,799 | |||
Cost of sales | 29,381 | 28,796 | 28,222 | ||||
Gross Profit | 35,280 | 34,729 | 34,577 | ||||
Selling, general and administrative expenses | 25,170 | 24,453 | 24,773 | ||||
Operating Profit | [2] | 10,110 | 10,276 | [3] | 9,804 | [3] | |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | 298 | 233 | (19) | ||||
Interest expense | (1,525) | (1,151) | (1,342) | ||||
Interest and Other Income | 306 | 244 | 110 | ||||
Income before income taxes | 9,189 | 9,602 | 8,553 | ||||
(Benefit from)/provision for income taxes (See Note 5) | (3,370) | 4,694 | 2,174 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 12,559 | 4,908 | 6,379 | ||||
Less: Net income attributable to noncontrolling interests | 44 | 51 | 50 | ||||
Net Income Attributable to PepsiCo | $ 12,515 | $ 4,857 | $ 6,329 | ||||
Net Income Attributable to PepsiCo per Common Share | |||||||
Basic | $ 8.84 | $ 3.40 | $ 4.39 | ||||
Diluted | $ 8.78 | $ 3.38 | $ 4.36 | ||||
Weighted-average common shares outstanding | |||||||
Basic | [4] | 1,415 | 1,425 | 1,439 | |||
Diluted | [4] | 1,425 | 1,438 | 1,452 | |||
[1] | Our primary performance obligation is the distribution and sales of beverage products and food and snack products to our customers, each comprising approximately 50% of our consolidated net revenue. Internationally, our Latin America segment is predominantly a food and snack business, ESSA’s beverage business and food and snack business are each approximately 50% of the segment’s net revenue and AMENA’s beverage business and food and snack business are approximately 35% and 65%, respectively, of the segment’s net revenue. Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our NAB and ESSA segments, is approximately 40% of our consolidated net revenue. 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. See Note 2 for additional information. | ||||||
[2] | For further unaudited information on certain items that impacted our financial performance, see “Item 6. Selected Financial Data.” | ||||||
[3] | Reflects the retrospective adoption of guidance requiring the presentation of non-service cost components of net periodic benefit cost below operating profit. See Note 2 for additional information. | ||||||
[4] | Weighted-average common shares outstanding (in millions). |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 12,559 | $ 4,908 | $ 6,379 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (1,641) | 1,109 | (302) |
Other comprehensive loss | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 40 | (36) | 46 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (467) | (159) | (316) |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 6 | (68) | (24) |
Pension and retiree medical: | |||
Other Comprehensive Income, Other, Net of Tax | 0 | 16 | 0 |
Other Comprehensive Income/(Loss), after-tax amount | (2,062) | 862 | (596) |
Comprehensive income | 10,497 | 5,770 | 5,783 |
Comprehensive income attributable to noncontrolling interests | (44) | (51) | (54) |
Comprehensive Income Attributable to PepsiCo | $ 10,453 | $ 5,719 | $ 5,729 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 12,559 | $ 4,908 | $ 6,379 |
Depreciation and amortization | 2,399 | 2,369 | 2,368 |
Share-based compensation expense | 256 | 292 | 284 |
Restructuring and impairment charges | 308 | 295 | 160 |
Cash payments for restructuring charges | (255) | (113) | (125) |
Charge related to the transaction with Tingyi | 0 | 0 | 373 |
Pension and retiree medical plan expenses | 221 | 221 | 501 |
Pension and retiree medical plan contributions | (1,708) | (220) | (695) |
Deferred income taxes and other tax charges and credits | (531) | 619 | 452 |
Other net tax benefits related to international reorganizations | (4,347) | 0 | 0 |
Net tax (benefit)/expense related to the TCJ Act | (28) | 2,451 | 0 |
Change in assets and liabilities [Abstract] | |||
Accounts and notes receivable | (253) | (202) | (349) |
Inventories | (174) | (168) | (75) |
Prepaid expenses and other current assets | 9 | 20 | 10 |
Accounts payable and other current liabilities | 882 | 201 | 981 |
Income taxes payable | 333 | (338) | 329 |
Other, net | (256) | (305) | 70 |
Net Cash Provided by (Used in) Operating Activities | 9,415 | 10,030 | 10,663 |
Investing Activities | |||
Capital spending | (3,282) | (2,969) | (3,040) |
Sales of property, plant and equipment | 134 | 180 | 99 |
Acquisition of SodaStream, net of cash and cash equivalents acquired | (1,197) | 0 | 0 |
Other acquisitions and investments in noncontrolled affiliates | (299) | (61) | (212) |
Divestitures | 505 | 267 | 85 |
Short-term investments, by original maturity: | |||
More than three months - purchases | (5,637) | (18,385) | (12,504) |
More than three months - maturities | 12,824 | 15,744 | 8,399 |
More than three months - sales | 1,498 | 790 | 0 |
Three months or less, net | 16 | 2 | 16 |
Other investing, net | 2 | 29 | 7 |
Net Cash Provided by/(Used for) Investing Activities | 4,564 | (4,403) | (7,150) |
Financing Activities | |||
Proceeds from issuances of long-term debt | 0 | 7,509 | 7,818 |
Payments of long-term debt | (4,007) | (4,406) | (3,105) |
Cash tender and exchange offers/debt redemptions | (1,589) | 0 | (2,504) |
Short-term borrowings, by original maturity | |||
More than three months - proceeds | 3 | 91 | 59 |
More than three months - payments | (17) | (128) | (27) |
Three months or less, net | (1,352) | (1,016) | 1,505 |
Cash dividends paid | (4,930) | (4,472) | (4,227) |
Share repurchases - common | (2,000) | (2,000) | (3,000) |
Share repurchases - preferred | (2) | (5) | (7) |
Proceeds from exercises of stock options | 281 | 462 | 465 |
Withholding tax payments on RSUs, PSUs and PEPunits converted | (103) | (145) | (130) |
Other financing | (53) | (76) | (58) |
Net Cash Used for Financing Activities | (13,769) | (4,186) | (3,211) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (98) | 47 | (252) |
Cash and Cash Equivalents and Restricted Cash, Period Increase (Decrease) | 112 | 1,488 | 50 |
Cash and Cash Equivalents and Restricted Cash, End of Year | 8,721 | 10,610 | |
Cash and cash equivalents and restricted cash | $ 10,769 | $ 10,657 | $ 9,169 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 | |
ASSETS | |||
Cash and cash equivalents | $ 8,721 | $ 10,610 | |
Short-term Investments | 272 | 8,900 | |
Restricted Cash | 1,997 | 0 | |
Accounts and notes receivable, net | 7,142 | 7,024 | |
Inventories | [1] | 3,128 | 2,947 |
Prepaid expenses and other current assets | 633 | 1,546 | |
Assets, Current | 21,893 | 31,027 | |
Property, Plant and Equipment, net | 17,589 | 17,240 | |
Amortizable Intangible Assets, net | 1,644 | 1,268 | |
Goodwill | 14,808 | 14,744 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 14,181 | 12,570 | |
Indefinite-Lived Intangible Assets | 28,989 | 27,314 | |
Equity Method Investments | 2,409 | 2,042 | |
Deferred Income Tax Assets, Net | 4,364 | 0 | |
Other Assets | 760 | 913 | |
Total Assets | 77,648 | 79,804 | |
LIABILITIES AND EQUITY | |||
Short-term debt obligations | [2] | 4,026 | 5,485 |
Accounts payable and other current liabilities | 18,112 | 15,017 | |
Liabilities, Current | 22,138 | 20,502 | |
Long-Term Debt Obligations | [2] | 28,295 | 33,796 |
Deferred Income Tax Liabilities, Net | 3,499 | 3,242 | |
Other Liabilities, Noncurrent | 9,114 | 11,283 | |
Liabilities | 63,046 | 68,823 | |
Commitments and contingencies | |||
Preferred Stock, no par value | 0 | 41 | |
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: 1,409 and 1,420 shares, respectively) | 23 | 24 | |
Additional Paid in Capital, Common Stock | 3,953 | 3,996 | |
Retained Earnings (Accumulated Deficit) | 59,947 | 52,839 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (15,119) | (13,057) | |
Stockholders' Equity Attributable to Parent | 14,518 | 11,045 | |
Stockholders' Equity Attributable to Noncontrolling Interest | 84 | 92 | |
Total Equity | 14,602 | 10,981 | |
Liabilities and Equity | 77,648 | 79,804 | |
Preferred Stock | |||
PepsiCo Common Shareholders’ Equity | |||
Stockholders' Equity Attributable to Parent | 0 | (197) | |
Additional Paid-in Capital [Member] | |||
PepsiCo Common Shareholders’ Equity | |||
Stockholders' Equity Attributable to Parent | 3,953 | 3,996 | |
Retained Earnings [Member] | |||
PepsiCo Common Shareholders’ Equity | |||
Stockholders' Equity Attributable to Parent | 59,947 | 52,839 | |
AOCI Attributable to Parent [Member] | |||
PepsiCo Common Shareholders’ Equity | |||
Stockholders' Equity Attributable to Parent | (15,119) | (13,057) | |
Treasury Stock [Member] | |||
PepsiCo Common Shareholders’ Equity | |||
Stockholders' Equity Attributable to Parent | (34,286) | (32,757) | |
Common Stock | |||
PepsiCo Common Shareholders’ Equity | |||
Stockholders' Equity Attributable to Parent | $ 23 | $ 24 | |
[1] | Approximately 5% of the inventory cost in 2018 and 2017 were computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material. | ||
[2] | Amounts are shown net of unamortized net discounts of $119 million and $155 million for 2018 and 2017, respectively. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0167 | $ 0.0167 |
Common stock, authorized | 3,600 | 3,600 |
Common stock, issued | 1,409 | 1,420 |
Repurchased common stock, shares | 458 | 446 |
Consolidated Statement of Equit
Consolidated Statement of Equity - USD ($) $ in Millions | Total | Preferred Stock | Preferred StockRepurchased Preferred Stock | Common Stock | Capital In Excess Of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Repurchased Common Stock | Total Common Shareholders' Equity | Noncontrolling Interests | ||
Preferred Stock, Value, Outstanding | $ 41 | $ (186) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | |||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 107 | |||||||||||
Preferred Stock, Shares Issued, Beginning of year at Dec. 26, 2015 | 800,000 | (700,000) | ||||||||||
Stockholders' Equity Attributable to Parent at Dec. 26, 2015 | $ 24 | $ 4,076 | 50,472 | $ (13,319) | $ (29,185) | |||||||
Stock Repurchased During Period, Value | $ (3,000) | |||||||||||
Conversion of Stock, Shares Converted | 0 | |||||||||||
Retirement of preferred stock | 0 | |||||||||||
Convertible Preferred Stock Converted to Other Securities | $ 0 | $ 0 | 0 | |||||||||
Retirement of preferred stock, value | $ 0 | $ 0 | 0 | |||||||||
Preferred Stock, Shares Issued, End of year at Dec. 31, 2016 | 800,000 | (700,000) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Redemptions (in shares) | 0 | |||||||||||
Redemptions | $ (6) | |||||||||||
Balance, beginning of year (in shares) at Dec. 26, 2015 | (418,000,000) | |||||||||||
Balance, end of year (in shares) at Dec. 31, 2016 | (438,000,000) | |||||||||||
Balance, outstanding, beginning of year (in shares) at Dec. 26, 2015 | 1,448,000,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock Repurchased During Period, Shares | (20,000,000) | (29,000,000) | ||||||||||
Balance, outstanding, end of year (in shares) at Dec. 31, 2016 | 1,428,000,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Share-based compensation expense | 289 | |||||||||||
Stock option exercises, RSUs, PSUs and PEPunits converted | $ 712 | |||||||||||
Stock Options Exercises RSUs and Performance Stock Units Converted | (138) | |||||||||||
Adjustments Related to Tax Withholding for Share-based Compensation | (130) | |||||||||||
Other | (6) | |||||||||||
Stock option exercises (in shares) | 9,000,000 | |||||||||||
Other (in shares) | 0 | |||||||||||
Other | $ 5 | (2) | ||||||||||
Currency translation adjustment | 4 | |||||||||||
Dividends, Common Stock, Cash | [1] | (4,282) | ||||||||||
Dividends, Preferred Stock, Cash | (1) | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 50 | 50 | ||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (55) | |||||||||||
Other comprehensive income/(loss) attributable to PepsiCo | (600) | |||||||||||
Balance, end of year at Dec. 31, 2016 | 11,199 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 6,329 | 6,329 | ||||||||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2016 | $ 24 | 4,091 | 52,518 | (13,919) | (31,468) | $ 11,246 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | |||||||||||
Stock option exercises/RSUs converted, tax benefit | $ 110 | |||||||||||
Common Stock, Dividends, Per Share, Declared | $ 2.96 | |||||||||||
Preferred Stock, Value, Outstanding | $ 41 | (192) | ||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | |||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 104 | |||||||||||
Stock Repurchased During Period, Value | $ (2,000) | |||||||||||
Conversion of Stock, Shares Converted | 0 | |||||||||||
Retirement of preferred stock | 0 | |||||||||||
Convertible Preferred Stock Converted to Other Securities | $ 0 | $ 0 | 0 | |||||||||
Retirement of preferred stock, value | $ 0 | $ 0 | 0 | |||||||||
Preferred Stock, Shares Issued, End of year at Dec. 30, 2017 | 803,953 | (700,000) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Redemptions (in shares) | 0 | |||||||||||
Redemptions | $ (5) | |||||||||||
Balance, end of year (in shares) at Dec. 30, 2017 | (446,000,000) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock Repurchased During Period, Shares | (8,000,000) | (18,000,000) | ||||||||||
Balance, outstanding, end of year (in shares) at Dec. 30, 2017 | 1,420,000,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Share-based compensation expense | 290 | |||||||||||
Stock option exercises, RSUs, PSUs and PEPunits converted | $ 708 | |||||||||||
Stock Options Exercises RSUs and Performance Stock Units Converted | (236) | |||||||||||
Adjustments Related to Tax Withholding for Share-based Compensation | (145) | |||||||||||
Other | (4) | |||||||||||
Share repurchases | $ 0 | |||||||||||
Stock option exercises (in shares) | 10,000,000 | |||||||||||
Other (in shares) | 0 | |||||||||||
Other | $ 3 | (1) | ||||||||||
Currency translation adjustment | 0 | |||||||||||
Dividends, Common Stock, Cash | [1] | (4,536) | ||||||||||
Dividends, Preferred Stock, Cash | 0 | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 51 | 51 | ||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (62) | |||||||||||
Other comprehensive income/(loss) attributable to PepsiCo | 862 | |||||||||||
Balance, end of year at Dec. 30, 2017 | 10,981 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 4,857 | 4,857 | ||||||||||
Stockholders' Equity Attributable to Parent at Dec. 30, 2017 | $ 11,045 | $ 24 | 3,996 | 52,839 | (13,057) | (32,757) | 11,045 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | |||||||||||
Common Stock, Dividends, Per Share, Declared | $ 3.1675 | |||||||||||
Preferred Stock, Value, Outstanding | $ 41 | $ 41 | $ (197) | |||||||||
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 | 92 | ||||||||||
Stock Repurchased During Period, Value | $ (2,000) | |||||||||||
Conversion of Stock, Shares Converted | (100,000) | |||||||||||
Retirement of preferred stock | (700,000) | 700,000 | ||||||||||
Convertible Preferred Stock Converted to Other Securities | $ (6) | $ 0 | 6 | |||||||||
Retirement of preferred stock, value | $ (35) | $ 199 | (164) | |||||||||
Preferred Stock, Shares Issued, End of year at Dec. 29, 2018 | 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Redemptions (in shares) | 0 | |||||||||||
Redemptions | $ (2) | |||||||||||
Balance, end of year (in shares) at Dec. 29, 2018 | (458,000,000) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock Repurchased During Period, Shares | (12,000,000) | (18,000,000) | ||||||||||
Balance, outstanding, end of year (in shares) at Dec. 29, 2018 | 1,409,000,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Share-based compensation expense | 250 | |||||||||||
Stock option exercises, RSUs, PSUs and PEPunits converted | $ 469 | |||||||||||
Stock Options Exercises RSUs and Performance Stock Units Converted | (193) | |||||||||||
Adjustments Related to Tax Withholding for Share-based Compensation | (103) | |||||||||||
Other | (3) | |||||||||||
Share repurchases | $ (1) | |||||||||||
Stock option exercises (in shares) | 4,377,000 | [2] | 6,000,000 | |||||||||
Other (in shares) | 0 | |||||||||||
Other | $ 2 | (3) | ||||||||||
Currency translation adjustment | 0 | |||||||||||
Dividends, Common Stock, Cash | [1] | (5,098) | ||||||||||
Dividends, Preferred Stock, Cash | 0 | |||||||||||
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 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 12,515 | 12,515 | ||||||||||
Stockholders' Equity Attributable to Parent at Dec. 29, 2018 | $ 14,518 | $ 23 | $ 3,953 | $ 59,947 | $ (15,119) | $ (34,286) | $ 14,518 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,000,000 | |||||||||||
Common Stock, Dividends, Per Share, Declared | $ 3.5875 | |||||||||||
Preferred Stock, Value, Outstanding | $ 0 | $ 0 | $ 0 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 84 | $ 84 | ||||||||||
[1] | (b) Cash dividends declared per common share were $3.5875, $3.1675 and $2.96 for 2018, 2017 and 2016, respectively. | |||||||||||
[2] | Options are in thousands and include options previously granted under the PBG plan. No additional options or shares were granted under the PBG plan after 2009. |
Basis of Presentation and Our D
Basis of Presentation and Our Divisions | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation and Our Divisions | Note 1 — Basis of Presentation and Our Divisions Basis of Presentation The accompanying 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 perpetual brands, 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 current economic conditions, and adjust or revise our estimates as circumstances change. As future events and their effect cannot be determined with precision, actual results could differ significantly from these estimates. Our fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six years. Our fiscal 2016 results included an extra week. While our North America results are reported on a weekly calendar basis, most of our international operations report on a monthly calendar basis. Certain operations in our ESSA segment report on a weekly calendar basis. The following chart details our quarterly reporting schedule: Quarter United States and Canada International First Quarter 12 weeks January, February Second Quarter 12 weeks March, April and May Third Quarter 12 weeks June, July and August Fourth Quarter 16 weeks (17 weeks for 2016) September, October, November and December See “Our Divisions” below, and for additional unaudited information on items affecting the comparability of our consolidated results, see further unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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 years’ financial statements to conform to the current year presentation, including the adoption of the recently issued accounting pronouncements disclosed in Note 2. Our Divisions 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 territories with our largest operations in North America, Mexico, Russia, the United Kingdom and Brazil. Division results are based on how our Chief Executive Officer assesses the performance of and allocates resources to our divisions and are considered our reportable segments. For additional unaudited information on our divisions, see “Our Operations” contained in “Item 1. Business.” 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: 2018 2017 2016 FLNA 13 % 13 % 14 % QFNA 1 % 1 % 2 % NAB 18 % 18 % 22 % Latin America 8 % 7 % 7 % ESSA 9 % 9 % 11 % AMENA 8 % 9 % 10 % Corporate unallocated expenses 43 % 43 % 34 % 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 energy, agricultural products 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 of each division are as follows: Net Revenue Operating Profit (b) 2018 (a) 2017 2016 2018 2017 (c) 2016 (c) FLNA $ 16,346 $ 15,798 $ 15,549 $ 5,008 $ 4,793 $ 4,612 QFNA 2,465 2,503 2,564 637 640 649 NAB 21,072 20,936 21,312 2,276 2,700 2,947 Latin America 7,354 7,208 6,820 1,049 924 904 ESSA 11,523 11,050 10,216 1,364 1,316 1,061 AMENA 5,901 6,030 6,338 1,172 1,073 619 Total division 64,661 63,525 62,799 11,506 11,446 10,792 Corporate unallocated expenses — — — (1,396 ) (1,170 ) (988 ) $ 64,661 $ 63,525 $ 62,799 $ 10,110 $ 10,276 $ 9,804 (a) Our primary performance obligation is the distribution and sales of beverage products and food and snack products to our customers, each comprising approximately 50% of our consolidated net revenue. Internationally, our Latin America segment is predominantly a food and snack business, ESSA’s beverage business and food and snack business are each approximately 50% of the segment’s net revenue and AMENA’s beverage business and food and snack business are approximately 35% and 65% , respectively, of the segment’s net revenue. Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our NAB and ESSA segments, is approximately 40% of our consolidated net revenue. 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. See Note 2 for additional information. (b) For further unaudited information on certain items that impacted our financial performance, see “Item 6. Selected Financial Data.” (c) Reflects the retrospective adoption of guidance requiring the presentation of non-service cost components of net periodic benefit cost below operating profit. See Note 2 for additional information. 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, and certain other items. Other Division Information Total assets and capital spending of each division are as follows: Total Assets Capital Spending 2018 2017 2018 2017 2016 FLNA $ 6,577 $ 5,979 $ 840 $ 665 $ 801 QFNA 870 804 53 44 41 NAB 29,878 28,592 945 904 769 Latin America 6,458 4,976 492 481 507 ESSA (a) 17,410 13,556 479 481 439 AMENA 6,433 5,668 323 308 381 Total division 67,626 59,575 3,132 2,883 2,938 Corporate (b) 10,022 20,229 150 86 102 $ 77,648 $ 79,804 $ 3,282 $ 2,969 $ 3,040 (a) In 2018, the change in assets was primarily related to our acquisition of SodaStream. (b) 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 2018 , the change in assets was primarily due to a decrease in short-term investments and cash and cash equivalents. Refer to the cash flow statement for additional information. Amortization of intangible assets and depreciation and other amortization of each division are as follows: Amortization of Depreciation and 2018 2017 2016 2018 2017 2016 FLNA $ 7 $ 7 $ 7 $ 457 $ 449 $ 435 QFNA — — — 45 47 50 NAB 31 31 37 821 780 809 Latin America 5 5 5 253 245 211 ESSA 23 22 18 331 329 321 AMENA 3 3 3 237 257 294 Total division 69 68 70 2,144 2,107 2,120 Corporate — — — 186 194 178 $ 69 $ 68 $ 70 $ 2,330 $ 2,301 $ 2,298 Net revenue and long-lived assets by country are as follows: Net Revenue Long-Lived Assets (a) 2018 2017 2016 2018 2017 United States $ 37,148 $ 36,546 $ 36,732 $ 29,169 $ 28,418 Mexico 3,878 3,650 3,431 1,404 1,205 Russia (b) 3,191 3,232 2,648 3,926 4,708 Canada 2,736 2,691 2,692 2,565 2,739 United Kingdom 1,743 1,650 1,737 759 817 Brazil 1,335 1,427 1,305 639 777 All other countries (c) 14,630 14,329 14,254 12,169 9,200 $ 64,661 $ 63,525 $ 62,799 $ 50,631 $ 47,864 (a) Long-lived assets represent property, plant and equipment, indefinite-lived intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used. (b) Change in net revenue in 2017 primarily reflects appreciation of the Russian ruble. Change in long-lived assets in 2018 primarily reflects depreciation of the Russian ruble. (c) Change in long-lived assets in 2018 primarily related to our acquisition of SodaStream. |
Our Significant Accounting Poli
Our Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
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 transferred. 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. 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 and 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 products. In addition, upon adoption of the revenue recognition guidance (see subsequent discussion of “Recently Issued Accounting Pronouncements - Adopted”), we exclude from net revenue and cost of sales, all sales, use, value-added and certain excise taxes assessed by governmental authorities on revenue-producing transactions. 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. We estimate and reserve for our bad debt exposure based on our experience with past due accounts and collectibility, the aging of accounts receivable and our analysis of customer data. Bad debt 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 2018 , sales to Walmart (including Sam’s) represented approximately 13% 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 for the expected payout. These accruals are based on contract terms and our historical experience with similar programs and require management judgment with respect to estimating customer 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 incurred. The terms of most of our incentive arrangements do not exceed a year, and, therefore, do not require highly uncertain long-term estimates. Certain arrangements, such as fountain pouring rights, may extend beyond one year. Upfront payments to customers under these arrangements are recognized over the shorter of the economic or contractual life, primarily as a reduction of revenue, and the remaining balances of $218 million as of December 29, 2018 and $262 million as of December 30, 2017 are included in prepaid expenses and other current assets and other assets on our balance sheet. For additional unaudited information on our sales incentives, see “Our Customers” in “Item 1. Business.” 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 financial statements are not impacted by this interim allocation methodology. Advertising and other marketing activities, reported as selling, general and administrative expenses, totaled $4.2 billion in 2018 , $4.1 billion in 2017 and $4.2 billion in 2016 , including advertising expenses of $2.6 billion in 2018 , $2.4 billion in 2017 and $2.5 billion in 2016 . Deferred 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. Deferred advertising costs of $47 million and $46 million as of December 29, 2018 and December 30, 2017 , respectively, are classified as prepaid expenses and other current 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 $10.5 billion in 2018 , $9.9 billion in 2017 and $9.7 billion in 2016 . Cash Equivalents Cash equivalents are highly liquid investments with original maturities of three months or less. Software Costs We capitalize certain computer software and software development costs incurred 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 (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software projects and (iii) interest costs incurred 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 to 10 years. Software amortization totaled $204 million in 2018 , $224 million in 2017 and $214 million in 2016 . Net capitalized software and development costs were $577 million and $686 million as of December 29, 2018 and December 30, 2017 , 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. For additional unaudited information on our commitments, see “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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 $680 million , $737 million and $ 760 million in 2018 , 2017 and 2016 , respectively, and are reported within selling, general and administrative expenses. See “Research and Development” in “Item 1. Business” for additional unaudited information about our research and development activities. 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. 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, industry and competitive conditions, legal and regulatory environment, historical financial performance and significant changes in the brand 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 of 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 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 and weighted-average cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. These assumptions could be adversely impacted by certain of the risks described in “Item 1A. Risk Factors” and “Our Business Risks” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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 also Note 4, and for additional unaudited information on goodwill and other intangible assets, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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. • Property, Plant and Equipment – Note 4. • Income Taxes – Note 5, and for additional unaudited information, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. • Share-Based Compensation – Note 6. • Pension, Retiree Medical and Savings Plans – Note 7, and for additional unaudited information, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. • Financial Instruments – Note 9, and for additional unaudited information, see “Our Business Risks” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. • 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. • 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 currency translation adjustment. |
Our Significant Accounting Po_2
Our Significant Accounting Policies Recently Issued Accounting Pronouncements (Notes) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements - Adopted In 2017, the Financial Accounting Standards Board (FASB) issued guidance to retrospectively present the service cost component of net periodic benefit cost for pension and retiree medical plans along with other compensation costs in operating profit and present the other components of net periodic benefit cost separately below operating profit in the income statement. The guidance also allows only the service cost component of net periodic benefit cost to be eligible for capitalization within inventory or fixed assets on a prospective basis. We adopted the provisions of this guidance retrospectively in the first quarter of 2018, using historical information previously disclosed in our pension and retiree medical benefits footnote as the estimation basis. We also updated our allocation of service costs to our divisions to better approximate actual service cost. The impact from retrospective adoption of this guidance resulted in an increase to cost of sales and selling, general and administrative expenses of $11 million and $222 million , respectively, for the year ended December 30, 2017 and an increase of $13 million and a decrease of $32 million , respectively, for the year ended December 31, 2016. We recorded a corresponding increase of $233 million and decrease of $19 million for the years ended December 30, 2017 and December 31, 2016, respectively, to other pension and retiree medical benefits income/(expense) below operating profit. The (decreases)/increases to operating profit for each division and to corporate unallocated expenses are as follows: 2017 (a) 2016 (b) FLNA $ (30 ) $ (47 ) QFNA (2 ) (4 ) NAB (7 ) (12 ) Latin America 16 17 ESSA (38 ) (47 ) AMENA — — Corporate unallocated expenses (172 ) 112 (c) Total $ (233 ) $ 19 (a) Includes restructuring charges of $66 million , including $13 million in our FLNA segment, $2 million in our QFNA segment, $11 million in our NAB segment, $7 million in our Latin America segment and $33 million in corporate unallocated expenses. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. (b) Includes restructuring charges of $5 million , including $1 million in our FLNA segment, $2 million in our NAB segment and $2 million in corporate unallocated expenses. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. (c) Reflects a settlement charge of $242 million related to a group annuity contract purchase. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. The changes described above had no impact on our consolidated net revenue, net income or earnings per share. See Note 7 for further information on our service cost and other components of net periodic benefit cost for pension and retiree medical plans. In 2016, the FASB issued guidance to clarify how restricted cash should be presented in the cash flow statement. We adopted the provisions of this guidance retrospectively during the first quarter of 2018; the adoption did not have a material impact on our financial statements and primarily related to collateral posted against our derivative asset or liability positions. See Note 9 and Note 13 for further information. In 2016, the FASB issued guidance that requires companies to account for the income tax effects of intercompany transfers of assets, other than inventory, when the transfer occurs versus deferring income tax effects until the transferred asset is sold to an outside party or otherwise recognized. We adopted the provisions of this guidance during the first quarter of 2018; the adoption did not have a material impact on our financial statements and we recorded an adjustment of $8 million to beginning retained earnings. In 2016, the FASB issued guidance that requires companies to measure investments in certain equity securities at fair value and recognize any changes in fair value in net income. We adopted the provisions of this guidance during the first quarter of 2018; the adoption did not have an impact on our financial statements. See Note 9 for further information on our investments in equity securities. In 2014, the FASB issued guidance on revenue recognition, with final amendments issued in 2016. The guidance provides for a five-step model to determine the revenue recognized for the transfer of goods or services to customers that reflects the expected entitled consideration in exchange for those goods or services. It also provides clarification for principal versus agent considerations and identifying performance obligations. In addition, the FASB introduced practical expedients related to disclosures of remaining performance obligations, as well as other amendments related to guidance on collectibility, non-cash consideration and the presentation of sales and other similar taxes. Financial statement disclosures required under the guidance will enable users to understand the nature, amount, timing, judgments and uncertainty of revenue and cash flows relating to customer contracts. The two permitted transition methods under the guidance are the full retrospective approach or a cumulative effect adjustment to the opening retained earnings in the year of adoption (cumulative effect approach). We adopted the guidance applied to all contracts using the cumulative effect approach during the first quarter of 2018; the adoption did not have a material impact on our financial statements. We utilized a comprehensive approach to assess the impact of the guidance on our contract portfolio by reviewing our current accounting policies and practices to identify potential differences that would result from applying the new requirements to our revenue contracts, including evaluation of our performance obligations, principal versus agent considerations and variable consideration. We completed our contract and business process reviews and implemented changes to our controls and disclosures under the new guidance. As a result of the implementation of the guidance, which did not have a material impact on our accounting policies upon adoption, in the first quarter of 2018, we recorded an adjustment of $137 million to beginning retained earnings to reflect marketplace spending that our customers and independent bottlers expect to be entitled to in line with revenue recognition. In addition, we excluded from net revenue and cost of sales all sales, use, value-added and certain excise taxes assessed by governmental authorities on revenue-producing transactions that were not already excluded. The impact of these taxes previously recognized in net revenue and cost of sales was approximately $75 million for the fiscal year ended December 30, 2017, with no impact on operating profit. Recently Issued Accounting Pronouncements - Not Yet Adopted In 2018, the FASB issued guidance related to the TCJ Act for the optional reclassification of the residual tax effects, arising from the change in corporate tax rate, in accumulated other comprehensive loss to retained earnings. The reclassification is the difference between the amount previously recorded in other comprehensive income at the historical U.S. federal tax rate that remains in accumulated other comprehensive loss at the time the TCJ Act was effective and the amount that would have been recorded using the newly enacted rate. If elected, the guidance can be applied retrospectively to each period during which the impact of the TCJ Act is recognized or in the period of adoption. We will adopt the guidance when it becomes effective in the first quarter of 2019, but we are not planning to make the optional reclassification. In 2017, the FASB issued guidance to amend and simplify the application of hedge accounting guidance to better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, as well as eases certain hedge effectiveness assessment requirements. Under this guidance, certain of our derivatives used to hedge commodity price risk that did not previously qualify for hedge accounting treatment will qualify prospectively. We will adopt the guidance when it becomes effective in the first quarter of 2019. The guidance is not expected to have a material impact on our financial statements or disclosures. See Note 9 for further information. In 2016, the FASB issued guidance on leases, with amendments issued in 2018. The guidance requires lessees to recognize most leases on the balance sheet but record expenses in the income statement in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The two permitted transition methods under the guidance are the modified retrospective transition approach, which requires application of the guidance for all comparative periods presented, and the cumulative effect adjustment approach, which requires prospective application at the adoption date. We continue to utilize a comprehensive approach to assess the impact of this guidance on our financial statements and related disclosures, including the increase in the assets and liabilities on our balance sheet and the impact on our current lease portfolio from both a lessor and lessee perspective. We are substantially complete with our comprehensive review of our lease portfolio including significant leases by geography and by asset type that will be impacted by the new guidance, and enhancing our controls. In addition, we are progressing on the implementation of a new software platform, and corresponding controls, for administering our leases and facilitating compliance with the new guidance. As part of our adoption, we will not reassess historical lease classification, will not recognize short-term leases on our balance sheet, will utilize the portfolio approach to group leases with similar characteristics and will not separate lease and non-lease components for our real estate leases. We will adopt the guidance prospectively when it becomes effective in the first quarter of 2019. The guidance is not expected to have a material impact on our financial statements, with an expected increase of approximately 2% to each of our total assets and total liabilities on our balance sheet, subject to completion of our assessment. See Note 15 for our minimum lease payments under non-cancelable operating leases. |
Restructuring, Impairment and I
Restructuring, Impairment and Integration Charges | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring, Impairment And Integration Charges | Note 3 — Restructuring and Impairment Charges A summary of our restructuring and impairment charges and other productivity initiatives is as follows: 2018 2017 2016 2019 Productivity Plan $ 138 $ — $ — 2014 Productivity Plan 170 295 160 Total restructuring and impairment charges 308 295 160 Other productivity initiatives 8 16 12 Total restructuring and impairment charges and other productivity initiatives $ 316 $ 311 $ 172 |
2019 Productivity Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring, Impairment And Integration Charges | 2019 Multi-Year Productivity Plan The 2019 Productivity Plan, publicly announced on February 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; simplify our organization and optimize our manufacturing and supply chain footprint. A summary of our 2019 Productivity Plan charges is as follows: 2018 Costs of sales $ 3 Selling, general and administrative expenses 100 Other pension and retiree medical benefits expense 35 Total restructuring and impairment charges $ 138 After-tax amount $ 109 Net income attributable to PepsiCo per common share $ 0.08 2018 FLNA $ 31 QFNA 5 NAB 40 Latin America 9 ESSA 8 AMENA 3 Corporate 7 103 Other pension and retiree medical benefits expense 35 $ 138 A summary of our 2019 Productivity Plan activity is as follows: Severance and Other Employee Costs Asset Impairments Other Costs (a) Total 2018 restructuring charges $ 137 $ — $ 1 $ 138 Non-cash charges and translation (32 ) — — (32 ) Liability as of December 29, 2018 $ 105 $ — $ 1 $ 106 (a) Includes other costs associated with the implementation of our initiatives, including consulting and other professional fees. Substantially all of the restructuring accrual at December 29, 2018 is expected to be paid by the end of 2019 . |
2014 Productivity Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring, Impairment And Integration Charges | 2014 Multi-Year Productivity Plan The 2014 Productivity Plan, publicly announced on February 13, 2014, includes the next generation of productivity initiatives that we believe will 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 program through the end of 2019 to take advantage of additional opportunities within the initiatives described above to further strengthen our beverage, food and snack businesses. A summary of our 2014 Productivity Plan charges is as follows: 2018 2017 2016 Selling, general and administrative expenses $ 169 $ 229 $ 155 Other pension and retiree medical benefits expense 1 66 5 Total restructuring and impairment charges $ 170 $ 295 $ 160 After-tax amount $ 143 $ 224 $ 134 Net income attributable to PepsiCo per common share $ 0.10 $ 0.16 $ 0.09 2018 2017 2016 Plan to Date FLNA $ 8 $ 67 $ 13 $ 171 QFNA 2 11 1 34 NAB 51 54 35 352 Latin America 30 63 27 182 ESSA 55 53 60 282 AMENA (a) 25 (3 ) 14 69 Corporate (b) (1 ) 50 10 114 $ 170 $ 295 $ 160 $ 1,204 (a) In 2017, income amount primarily reflects a gain on the sale of property, plant and equipment. (b) In 2018, income amount primarily relates to other pension and retiree medical benefits. Severance and Other Employee Costs Asset Impairments Other Costs (a) Total Plan to Date $ 713 $ 182 $ 309 $ 1,204 (a) Includes other costs associated with the implementation of our initiatives, including certain consulting and contract termination costs. A summary of our 2014 Productivity Plan activity is as follows: Severance and Other Employee Costs Asset Impairments Other Costs Total Liability as of December 26, 2015 $ 61 $ — $ 20 $ 81 2016 restructuring charges 88 36 36 160 Cash payments (46 ) — (49 ) (95 ) Non-cash charges and translation (15 ) (36 ) 1 (50 ) Liability as of December 31, 2016 88 — 8 96 2017 restructuring charges 280 21 (6 ) (a) 295 Cash payments (91 ) — (22 ) (113 ) Non-cash charges and translation (65 ) (21 ) 34 (52 ) Liability as of December 30, 2017 212 — 14 226 2018 restructuring charges 86 28 56 170 Cash payments (b) (203 ) — (52 ) (255 ) Non-cash charges and translation (4 ) (28 ) 5 (27 ) Liability as of December 29, 2018 $ 91 $ — $ 23 $ 114 (a) Income amount represents adjustments for changes in estimates and a gain on the sale of property, plant, and equipment. (b) Excludes cash expenditures of $11 million reported in the cash flow statement in pension and retiree medical plan contributions. Substantially all of the restructuring accrual at December 29, 2018 is expected to be paid by the end of 2019 . 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. We regularly evaluate different productivity initiatives beyond the productivity plans and other initiatives described above. See additional unaudited information in “Items Affecting Comparability” and “Results of Operations – Division Review” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Property, Plant and Equipment a
Property, Plant and Equipment and Intangible Assets | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant And Equipment And Intangible Assets [Abstract] | |
Property, Plant and Equipment and Intangible Assets | Property, Plant and Equipment and Intangible Assets A summary of our property, plant and equipment is as follows: Average 2018 2017 2016 Property, plant and equipment, net Land $ 1,078 $ 1,148 Buildings and improvements 15 - 44 8,941 8,796 Machinery and equipment, including fleet and software 5 - 15 27,715 27,018 Construction in progress 2,430 2,144 40,164 39,106 Accumulated depreciation (22,575 ) (21,866 ) $ 17,589 $ 17,240 Depreciation expense $ 2,241 $ 2,227 $ 2,217 Property, plant and equipment is recorded at historical cost. Depreciation and amortization are 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. A summary of our amortizable intangible assets is as follows: 2018 2017 2016 Amortizable intangible assets, net Average Gross Accumulated Net Gross Accumulated Net Acquired franchise rights 56 – 60 $ 838 $ (140 ) $ 698 $ 858 $ (128 ) $ 730 Reacquired franchise rights 5 – 14 106 (105 ) 1 106 (104 ) 2 Brands 20 – 40 1,306 (1,032 ) 274 1,322 (1,026 ) 296 Other identifiable intangibles (a) 10 – 24 959 (288 ) 671 521 (281 ) 240 $ 3,209 $ (1,565 ) $ 1,644 $ 2,807 $ (1,539 ) $ 1,268 Amortization expense $ 69 $ 68 $ 70 (a) The change in 2018 is primarily related to our acquisition of SodaStream. Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 29, 2018 and using average 2018 foreign exchange rates, is expected to be as follows: 2019 2020 2021 2022 2023 Five-year projected amortization $ 89 $ 89 $ 87 $ 85 $ 83 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 occurred which indicate the need for revision. For additional unaudited information on our policies for amortizable brands, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. Indefinite-Lived Intangible Assets We did not recognize any impairment charges for goodwill in each of the fiscal years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . We recognized no material impairment charges for indefinite-lived intangible assets in each of the fiscal years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . As of December 29, 2018 , the estimated fair values of our indefinite-lived reacquired and acquired franchise rights recorded at NAB exceeded their carrying values. However, there could be an impairment of the carrying value of NAB’s reacquired and acquired franchise rights if future revenues and their contribution to the operating results of NAB’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 and Brazil on the estimated fair value of our indefinite-lived intangible assets in these countries and have concluded that there were no material impairments for the year ended December 29, 2018 . However, there could be an impairment of the carrying value of certain brands in these countries 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, 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 additional 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, Translation Balance, Acquisitions/ (Divestitures) Translation Balance, FLNA Goodwill $ 270 $ 10 $ 280 $ 28 $ (11 ) $ 297 Brands 23 2 25 138 (2 ) 161 293 12 305 166 (13 ) 458 QFNA Goodwill 175 — 175 9 — 184 Brands — — — 25 — 25 175 — 175 34 — 209 NAB (a) Goodwill 9,843 11 9,854 — (41 ) 9,813 Reacquired franchise rights 7,064 62 7,126 — (68 ) 7,058 Acquired franchise rights 1,512 13 1,525 — (15 ) 1,510 Brands 314 39 353 — — 353 18,733 125 18,858 — (124 ) 18,734 Latin America Goodwill 553 2 555 — (46 ) 509 Brands 150 (9 ) 141 — (14 ) 127 703 (7 ) 696 — (60 ) 636 ESSA (b) Goodwill 3,177 275 3,452 526 (367 ) 3,611 Reacquired franchise rights 488 61 549 (1 ) (51 ) 497 Acquired franchise rights 184 11 195 (25 ) (9 ) 161 Brands 2,358 187 2,545 1,993 (350 ) 4,188 6,207 534 6,741 2,493 (777 ) 8,457 AMENA Goodwill 412 16 428 — (34 ) 394 Brands 103 8 111 — (10 ) 101 515 24 539 — (44 ) 495 Total goodwill 14,430 314 14,744 563 (499 ) 14,808 Total reacquired franchise rights 7,552 123 7,675 (1 ) (119 ) 7,555 Total acquired franchise rights 1,696 24 1,720 (25 ) (24 ) 1,671 Total brands 2,948 227 3,175 2,156 (376 ) 4,955 $ 26,626 $ 688 $ 27,314 $ 2,693 $ (1,018 ) $ 28,989 (a) The change in translation and other in 2018 primarily reflects the depreciation of the Canadian dollar. (b) The change in acquisitions/(divestitures) in 2018 is primarily related to the preliminary allocation of the purchase price for our acquisition of SodaStream. See Note 14 for further information. The change in translation and other in 2018 primarily reflects the depreciation of the Russian ruble, euro and Pound sterling. The change in translation and other in 2017 primarily reflects the appreciation of the Russian ruble and euro. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes are as follows: 2018 2017 2016 United States $ 3,864 $ 3,452 $ 2,630 Foreign 5,325 6,150 5,923 $ 9,189 $ 9,602 $ 8,553 The (benefit from)/provision for income taxes consisted of the following: 2018 2017 2016 Current: U.S. Federal $ 437 $ 4,925 $ 1,219 Foreign 378 724 824 State 63 136 77 878 5,785 2,120 Deferred: U.S. Federal 140 (1,159 ) 109 Foreign (4,379 ) (9 ) (33 ) State (9 ) 77 (22 ) (4,248 ) (1,091 ) 54 $ (3,370 ) $ 4,694 $ 2,174 A reconciliation of the U.S. Federal statutory tax rate to our annual tax rate is as follows: 2018 2017 2016 U.S. Federal statutory tax rate 21.0 % 35.0 % 35.0 % State income tax, net of U.S. Federal tax benefit 0.5 0.9 0.4 Lower taxes on foreign results (2.2 ) (9.4 ) (8.0 ) One-time mandatory transition tax - TCJ Act 0.1 41.4 — Remeasurement of deferred taxes - TCJ Act (0.4 ) (15.9 ) — International reorganizations (47.3 ) — — Tax settlements (7.8 ) — — Other, net (0.6 ) (3.1 ) (2.0 ) Annual tax rate (36.7 )% 48.9 % 25.4 % 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. 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. See further unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. Included in the provisional net tax expense of $2.5 billion recognized in the fourth quarter of 2017, was a provisional mandatory one-time transition tax of approximately $4 billion on undistributed international earnings, included in other liabilities. This provisional mandatory one-time transition tax was partially offset by a provisional $1.5 billion benefit resulting from the required remeasurement of our deferred tax assets and liabilities to the new, lower U.S. corporate income tax rate, effective January 1, 2018. The effect of the remeasurement was recorded in the fourth quarter of 2017, consistent with the enactment date of the TCJ Act, and reflected in our provision for income taxes. During 2018, we recognized a net tax benefit of $28 million ( $0.02 per share) primarily reflecting the impact of the final analysis of certain foreign exchange gains or losses, substantiation of foreign tax credits, as well as cash and cash equivalents as of November 30, 2018, the tax year-end of our foreign subsidiaries, partially offset by additional transition tax guidance issued by the United States Department of Treasury, as well as the TCJ Act impact of both the conclusion of certain international tax audits and the resolution with the IRS of all open matters related to the audits of taxable years 2012 and 2013, each discussed below. As of December 29, 2018, our mandatory transition tax liability is $ 3.8 billion . Under the provisions of the TCJ Act, this transition tax liability must be paid over eight years; we currently expect to pay approximately $0.4 billion of this liability in 2019 and the remainder over the period 2020 to 2026. The TCJ Act also created a requirement that certain income earned by foreign subsidiaries, known as GILTI, must be included in the gross income of their U.S. shareholder. The FASB allows an accounting policy election of either recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years or recognizing such taxes as a current-period expense when incurred. During the first quarter of 2018, we elected to treat the tax effect of GILTI as a current-period expense when incurred. 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. The provisional measurement period ended in the fourth quarter of 2018. While our accounting for the recorded impact of the TCJ Act is deemed to be complete, these amounts are based on prevailing regulations and currently available information, and any additional guidance issued by the IRS could impact the aforementioned amounts in future periods. For further unaudited information and discussion, refer to “Item 1A. Risk Factors,” “Our Business Risks,” “Our Liquidity and Capital Resources” and “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. International Reorganizations During the fourth quarter of 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). The related deferred tax asset of $4.4 billion is expected to be amortized over a period of 15 years beginning in 2019. Additionally, the reorganization generated significant net operating loss carryforwards and related deferred tax assets that are not expected to be realized, resulting in the recording of a full valuation allowance. Deferred tax liabilities and assets are comprised of the following: Deferred Tax Liabilities 2018 2017 Debt guarantee of wholly-owned subsidiary $ 578 $ 578 Property, plant and equipment 1,303 1,397 Intangible assets other than nondeductible goodwill — 3,169 Recapture of net operating losses 414 — Other 71 50 Gross deferred tax liabilities 2,366 5,194 Deferred tax assets Net carryforwards 4,353 1,400 Intangible assets other than nondeductible goodwill 985 — Share-based compensation 106 107 Retiree medical benefits 167 198 Other employee-related benefits 303 338 Pension benefits 221 22 Deductible state tax and interest benefits 110 157 Other 739 893 Gross deferred tax assets 6,984 3,115 Valuation allowances (3,753 ) (1,163 ) Deferred tax assets, net 3,231 1,952 Net deferred tax (assets)/liabilities $ (865 ) $ 3,242 A summary of our valuation allowance activity is as follows: 2018 2017 2016 Balance, beginning of year $ 1,163 $ 1,110 $ 1,136 Provision 2,639 33 13 Other (deductions)/additions (49 ) 20 (39 ) Balance, end of year $ 3,753 $ 1,163 $ 1,110 For additional unaudited information on our income tax policies, including our reserves for income taxes, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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 Currently Under Audit United States 2014-2017 2014-2016 Mexico 2017 None United Kingdom 2016-2017 None Canada (Domestic) 2014-2017 2014-2015 Canada (International) 2010-2017 2010-2015 Russia 2014-2017 2014-2017 During 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, during 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. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe that our reserves reflect the probable outcome of known tax contingencies. We adjust these reserves, as well as the related interest, in light of changing facts and circumstances. 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. For further unaudited information on the impact of the resolution of open tax issues, see “Other Consolidated Results” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. As of December 29, 2018 , the total gross amount of reserves for income taxes, reported in other liabilities, was $1.4 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 $179 million as of December 29, 2018 , which reflects a reduction of the prior year liability of $64 million of tax benefit that was recognized in 2018 . The gross amount of interest accrued, reported in other liabilities, was $283 million as of December 30, 2017 , of which $89 million of expense was recognized in 2017 . A reconciliation of unrecognized tax benefits is as follows: 2018 2017 Balance, beginning of year $ 2,212 $ 1,885 Additions for tax positions related to the current year 142 309 Additions for tax positions from prior years 197 86 Reductions for tax positions from prior years (822 ) (51 ) Settlement payments (233 ) (4 ) Statutes of limitations expiration (42 ) (33 ) Translation and other (14 ) 20 Balance, end of year $ 1,440 $ 2,212 Carryforwards and Allowances Operating loss carryforwards totaling $24.9 billion at year-end 2018 are being carried 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 2019 , $20.5 billion between 2020 and 2038 and $4.2 billion may be carried forward indefinitely. We establish valuation allowances for our deferred tax assets if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Undistributed International Earnings In connection with the enactment of the TCJ Act, during 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. As of December 29, 2018 , we had approximately $24 billion of undistributed international earnings. We intend to continue to reinvest $24 billion of earnings outside the United States for the foreseeable future and while U.S. federal tax expense has been recognized as a result of the TCJ Act, no deferred tax liabilities with respect to items such as certain foreign exchange gains or losses, foreign withholding taxes or state taxes have been recognized. It is not practicable for us to determine the amount of unrecognized tax expense on these reinvested international earnings. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 29, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Note 6 — 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, restricted stock units (RSUs), performance stock units (PSUs), PepsiCo equity performance units (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 were 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 29, 2018 , 66 million shares were available for future share-based compensation grants under the LTIP. The following table summarizes our total share-based compensation expense and excess tax benefits recognized: 2018 2017 2016 Share-based compensation expense - equity awards $ 256 $ 292 $ 284 Share-based compensation expense - liability awards 20 13 5 Restructuring and impairment charges (6 ) (2 ) 5 Total $ 270 $ 303 $ 294 Income tax benefits recognized in earnings related to share-based compensation $ 45 $ 89 (a) $ 91 Excess tax benefits related to share-based compensation (b) $ 48 $ 115 $ 110 (a) Reflects tax rates effective for the 2017 tax year. (b) Included in provision for income taxes in the income statement in 2018 and 2017; included in capital in excess of par value in the equity statement in 2016. As of December 29, 2018 , there was $282 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: 2018 2017 2016 Expected life 5 years 5 years 6 years Risk-free interest rate 2.6 % 2.0 % 1.4 % Expected volatility 12 % 11 % 12 % Expected dividend yield 2.7 % 2.7 % 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 29, 2018 is as follows: Options (a) Weighted-Average Exercise Price Weighted-Average Contractual Life Remaining (years) Aggregate Intrinsic Value (b) Outstanding at December 30, 2017 19,013 $ 74.23 Granted 1,429 $ 108.88 Exercised (4,377 ) $ 62.95 Forfeited/expired (476 ) $ 94.85 Outstanding at December 29, 2018 15,589 $ 79.94 4.29 $ 474,746 Exercisable at December 29, 2018 11,547 $ 70.74 2.92 $ 457,529 Expected to vest as of December 29, 2018 3,713 $ 106.02 8.17 $ 16,606 (a) Options are in thousands and include options previously granted under the PBG plan. No additional options or shares were granted under the PBG plan after 2009. (b) 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 and/or operational 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 is measured at the market price of the Company’s stock on the date of grant. The fair value of PSUs is measured at the market price of the Company’s stock on the date of grant with the exception of awards with market conditions, for which we use the Monte-Carlo simulation model to determine the fair value. The Monte-Carlo simulation model uses the same input assumptions as the Black-Scholes model; however, it also further incorporates into the fair-value determination the possibility that the market condition may not be satisfied. Compensation costs related to these awards are recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. A summary of our RSU and PSU activity for the year ended December 29, 2018 is as follows: RSUs/PSUs (a) Weighted-Average Grant-Date Fair Value Weighted-Average Contractual Life Remaining (years) Aggregate Intrinsic Value (a) Outstanding at December 30, 2017 7,293 $ 102.30 Granted (b) 2,634 $ 108.75 Converted (2,362 ) $ 99.73 Forfeited (647 ) $ 105.21 Actual performance change (c) 257 $ 98.92 Outstanding at December 29, 2018 (d) 7,175 $ 105.13 1.22 $ 791,878 Expected to vest as of December 29, 2018 6,667 $ 104.90 1.15 $ 735,813 (a) In thousands. (b) Grant activity for all PSUs are disclosed at target. (c) Reflects the net number of PSUs above and below target levels based on actual performance measured at the end of the performance period. (d) The outstanding PSUs for which the performance period has not ended as of December 29, 2018 , at the threshold, target and maximum award levels were zero , 0.9 million and 1.6 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. PEPunits were last granted in 2015 and all 248,000 units outstanding at December 30, 2017, with a weighted average grant date fair value of $68.94 , were converted to 278,000 shares during fiscal year 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 until actual performance is determined. A summary of our long-term cash activity for the year ended December 29, 2018 is as follows: Long-Term Cash Award (a) Balance Sheet Date Fair Value (a) Contractual Life Remaining Outstanding at December 30, 2017 $ 33,200 Granted (b) 20,926 Forfeited (2,292 ) Actual performance change (c) 2,876 Outstanding at December 29, 2018 (d) $ 54,710 $ 55,809 1.22 Expected to vest as of December 29, 2018 $ 51,159 $ 52,148 1.17 (a) In thousands. (b) Grant activity for all long-term cash awards are disclosed at target. (c) Reflects the net number of long-term cash awards above and below target levels based on actual performance measured at the end of the performance period. (d) The outstanding long-term cash awards for which the performance period has not ended as of December 29, 2018, at the threshold, target and maximum award levels were zero , 37.3 million and 74.5 million, respectively. Other Share-Based Compensation Data The following is a summary of other share-based compensation data: 2018 2017 2016 Stock Options Total number of options granted (a) 1,429 1,481 1,743 Weighted-average grant-date fair value of options granted $ 9.80 $ 8.25 $ 6.94 Total intrinsic value of options exercised (a) $ 224,663 $ 327,860 $ 290,131 Total grant-date fair value of options vested (a) $ 15,506 $ 23,122 $ 18,840 RSUs/PSUs Total number of RSUs/PSUs granted (a) 2,634 2,824 3,054 Weighted-average grant-date fair value of RSUs/PSUs granted $ 108.75 $ 109.92 $ 99.06 Total intrinsic value of RSUs/PSUs converted (a) $ 260,287 $ 380,269 $ 359,401 Total grant-date fair value of RSUs/PSUs vested (a) $ 232,141 $ 264,923 $ 257,648 PEPunits Total intrinsic value of PEPunits converted (a) $ 30,147 $ 39,782 $ 38,558 Total grant-date fair value of PEPunits vested (a) $ 9,430 $ 18,833 $ 16,572 (a) In thousands. As of December 29, 2018 and December 30, 2017 , there were approximately 248,000 and 250,000 outstanding awards, respectively, consisting primarily of phantom stock units that were granted under the PepsiCo Director Deferral Program and will be settled in shares of PepsiCo common stock pursuant to the LTIP at the end of the applicable deferral period, not included in the tables above. |
Pension, Retiree Medical and Sa
Pension, Retiree Medical and Savings Plans | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits, Description [Abstract] | |
Pension, Retiree Medical and Savings Plans | Pension, Retiree Medical and Savings Plans Effective January 1, 2017, the U.S. qualified defined benefit pension plans were reorganized into Plan A and Plan I. Actuarial gains and losses associated with Plan A are amortized over the average remaining service life of the active participants, while the actuarial gains and losses associated with Plan I are amortized over the remaining life expectancy of the inactive participants. As a result of this change, the pre-tax net periodic benefit cost decreased by $ 42 million ($ 27 million after-tax, reflecting tax rates effective for the 2017 tax year, or $ 0.02 per share) in 2017, primarily impacting corporate unallocated expenses. See “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. In 2016, the U.S. qualified defined benefit pension plans purchased a group annuity contract whereby an unrelated insurance company assumed the obligation to pay and administer future annuity payments for certain retirees. In 2016, we made discretionary contributions of $452 million primarily to fund the transfer of the obligation. This transaction triggered a pre-tax settlement charge of $242 million ( $162 million after-tax or $0.11 per share). See additional unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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 liabilities, a portion of the net gain or loss is included in other pension and retiree medical benefits income/(expense) for the following year based upon the average remaining service life for participants in Plan A (approximately 10 years) and retiree medical (approximately 7 years), or the remaining life expectancy for participants in Plan I (approximately 25 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 income/(expense) on a straight-line basis over the average remaining service life for participants in Plan A 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 2018 2017 2018 2017 2018 2017 Change in projected benefit liability Liability at beginning of year $ 14,777 $ 13,192 $ 3,490 $ 3,124 $ 1,187 $ 1,208 Service cost 431 401 92 91 32 28 Interest cost 482 468 93 89 34 36 Plan amendments 83 10 2 2 — (5 ) Participant contributions — — 2 2 — — Experience (gain)/loss (972 ) 1,529 (230 ) 5 (147 ) 21 Benefit payments (956 ) (825 ) (114 ) (104 ) (108 ) (107 ) Settlement/curtailment (74 ) (58 ) (35 ) (22 ) — — Special termination benefits 36 60 2 — 1 2 Other, including foreign currency adjustment — — (204 ) 303 (3 ) 4 Liability at end of year $ 13,807 $ 14,777 $ 3,098 $ 3,490 $ 996 $ 1,187 Change in fair value of plan assets Fair value at beginning of year $ 12,582 $ 11,458 $ 3,460 $ 2,894 $ 321 $ 320 Actual return on plan assets (789 ) 1,935 (136 ) 288 (21 ) 52 Employer contributions/funding 1,495 60 120 104 93 56 Participant contributions — — 2 2 — — Benefit payments (956 ) (825 ) (114 ) (104 ) (108 ) (107 ) Settlement (74 ) (46 ) (32 ) (18 ) — — Other, including foreign currency adjustment — — (210 ) 294 — — Fair value at end of year $ 12,258 $ 12,582 $ 3,090 $ 3,460 $ 285 $ 321 Funded status $ (1,549 ) $ (2,195 ) $ (8 ) $ (30 ) $ (711 ) $ (866 ) Amounts recognized Other assets $ 185 $ 286 $ 81 $ 85 $ — $ — Other current liabilities (107 ) (74 ) (1 ) (1 ) (41 ) (75 ) Other liabilities (1,627 ) (2,407 ) (88 ) (114 ) (670 ) (791 ) Net amount recognized $ (1,549 ) $ (2,195 ) $ (8 ) $ (30 ) $ (711 ) $ (866 ) Amounts included in accumulated other comprehensive loss (pre-tax) Net loss/(gain) $ 4,093 $ 3,520 $ 780 $ 782 $ (287 ) $ (189 ) Prior service cost/(credit) 109 29 (1 ) (3 ) (51 ) (71 ) Total $ 4,202 $ 3,549 $ 779 $ 779 $ (338 ) $ (260 ) Changes recognized in net loss/(gain) included in other comprehensive loss Net loss/(gain) arising in current year $ 760 $ 431 $ 103 $ (115 ) $ (107 ) $ (9 ) Amortization and settlement recognition (187 ) (131 ) (56 ) (60 ) 8 12 Foreign currency translation (gain)/loss — — (49 ) 73 1 1 Total $ 573 $ 300 $ (2 ) $ (102 ) $ (98 ) $ 4 Accumulated benefit obligation at end of year $ 12,890 $ 13,732 $ 2,806 $ 2,985 The net loss/(gain) arising in the current year is attributed to actual asset returns different from expected returns, partially offset by the change in discount rate. 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 irrevocable and we are relieved of the primary responsibility and risk for projected benefit obligations. 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 occurred (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 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ 431 $ 401 $ 393 $ 92 $ 91 $ 80 $ 32 $ 28 $ 31 Interest cost 482 468 484 93 89 94 34 36 41 Expected return on plan assets (943 ) (849 ) (834 ) (197 ) (176 ) (163 ) (19 ) (22 ) (24 ) Amortization of prior service cost/(credits) 3 1 (1 ) — — — (20 ) (25 ) (38 ) Amortization of net losses/(gains) 179 123 168 45 53 40 (8 ) (12 ) (1 ) 152 144 210 33 57 51 19 5 9 Settlement/curtailment losses/(gain) (a) 8 8 245 6 11 9 — — (14 ) Special termination benefits 36 60 11 2 — 1 1 2 1 Total $ 196 $ 212 $ 466 $ 41 $ 68 $ 61 $ 20 $ 7 $ (4 ) (a) U.S. includes a settlement charge of $ 242 million related to the group annuity contract purchase in 2016. See additional unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following table provides the weighted-average assumptions used to determine projected benefit liability and net periodic benefit cost for our pension and retiree medical plans: Pension Retiree Medical U.S. International 2018 2017 2016 2018 2017 2016 2018 2017 2016 Liability discount rate 4.4 % 3.7 % 4.4 % 3.4 % 3.0 % 3.1 % 4.2 % 3.5 % 4.0 % Service cost discount rate 3.8 % 4.5 % 4.6 % 3.5 % 3.6 % 4.1 % 3.6 % 4.0 % 4.3 % Interest cost discount rate 3.4 % 3.7 % 3.8 % 2.8 % 2.8 % 3.5 % 3.0 % 3.2 % 3.3 % Expected return on plan assets 7.2 % 7.5 % 7.5 % 6.0 % 6.0 % 6.2 % 6.5 % 7.5 % 7.5 % Liability rate of salary increases 3.1 % 3.1 % 3.1 % 3.7 % 3.7 % 3.6 % Expense rate of salary increases 3.1 % 3.1 % 3.1 % 3.7 % 3.6 % 3.6 % The following table provides selected information about plans with accumulated benefit obligation and total projected benefit liability in excess of plan assets: Pension Retiree Medical U.S. International 2018 2017 2018 2017 2018 2017 Selected information for plans with accumulated benefit obligation in excess of plan assets Liability for service to date $ (8,040 ) $ (8,355 ) $ (155 ) $ (161 ) Fair value of plan assets $ 7,223 $ 6,919 $ 121 $ 119 Selected information for plans with projected benefit liability in excess of plan assets Benefit liability $ (8,957 ) $ (9,400 ) $ (514 ) $ (1,273 ) $ (996 ) $ (1,187 ) Fair value of plan assets $ 7,223 $ 6,919 $ 426 $ 1,158 $ 285 $ 321 Of the total projected pension benefit liability as of December 29, 2018 , approximately $830 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: 2019 2020 2021 2022 2023 2024 - 2028 Pension $ 1,060 $ 960 $ 875 $ 915 $ 950 $ 5,265 Retiree medical (a) $ 115 $ 105 $ 100 $ 100 $ 95 $ 395 (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 $ 2 million for each of the years from 2019 through 2023 and approximately $6 million in total for 2024 through 2028. 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 2018 2017 2016 2018 2017 2016 Discretionary (a) $ 1,417 $ 6 $ 459 $ 37 $ — $ — Non-discretionary 198 158 200 56 56 36 Total $ 1,615 $ 164 $ 659 $ 93 $ 56 $ 36 (a) Includes $1.4 billion contribution in 2018 to fund Plan A in the United States. Includes $ 452 million in 2016 relating to the funding of the group annuity contract purchase from an unrelated insurance company. In January 2019, we made discretionary contributions of $ 150 million to Plan A in the United States. In addition, in 2019, we expect to make non-discretionary contributions of approximately $205 million to our U.S. and international pension benefit plans and approximately $40 million for retiree medical benefits. 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 liabilities, 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 liabilities. 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 currency risks. Futures contracts represent commitments to purchase or sell securities at a future date and at a specified price. Forward contracts consist of currency forwards. For 2019 and 2018 , our expected long-term rate of return on U.S. plan assets is 7.1% and 7.2% , respectively. Our target investment allocations for U.S. plan assets are as follows: 2019 2018 Fixed income 47 % 47 % U.S. equity 29 % 29 % International equity 20 % 20 % 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 correlation among asset classes and our historical experience. We also review current 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 fiscal year-end 2018 and 2017 are categorized consistently by level, and are as follows: 2018 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total U.S. plan assets (a) Equity securities, including preferred stock (b) $ 5,605 $ 5,595 $ 10 $ — $ 6,904 Government securities (c) 1,674 — 1,674 — 1,365 Corporate bonds (c) 4,145 — 4,145 — 3,429 Mortgage-backed securities (c) 212 — 212 — 217 Contracts with insurance companies (d) 9 — — 9 8 Cash and cash equivalents 215 215 — — 236 Sub-total U.S. plan assets 11,860 $ 5,810 $ 6,041 $ 9 12,159 Real estate commingled funds measured at net asset value (e) 618 675 Dividends and interest receivable, net of payables 65 69 Total U.S. plan assets $ 12,543 $ 12,903 International plan assets Equity securities (b) $ 1,651 $ 1,621 $ 30 $ — $ 1,928 Government securities (c) 433 — 433 — 492 Corporate bonds (c) 478 — 478 — 493 Fixed income commingled funds (f) 356 356 — — 383 Contracts with insurance companies (d) 36 — — 36 36 Cash and cash equivalents 27 27 — — 19 Sub-total international plan assets 2,981 $ 2,004 $ 941 $ 36 3,351 Real estate commingled funds measured at net asset value (e) 102 102 Dividends and interest receivable 7 7 Total international plan assets $ 3,090 $ 3,460 (a) 2018 and 2017 amounts include $285 million and $ 321 million , respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries. (b) The equity securities portfolio was invested in U.S. and international common stock and commingled funds, and the preferred stock portfolio in the U.S. was invested in domestic and international corporate preferred stock investments. The common stock is based on quoted prices in active markets. The U.S. commingled funds are based on fair values of the investments owned by these funds that are benchmarked against various U.S. large, mid-cap and small company indices, and includes one large-cap fund that represents 15% and 19% of total U.S. plan assets for 2018 and 2017 , respectively. The international commingled funds are based on the fair values of the investments owned by these funds that track various non-U.S. equity indices. The preferred stock investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets. (c) These investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets. Corporate bonds of U.S.-based companies represent 28% and 23% of total U.S. plan assets for 2018 and 2017 , respectively. (d) Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable. The changes in Level 3 amounts were not significant in the years ended December 29, 2018 and December 30, 2017. (e) The real estate commingled funds include investments in limited partnerships. These funds are based on the net asset value of the appraised value of investments owned by these funds as determined by independent third parties using inputs that are not observable. The majority of the funds are redeemable quarterly subject to availability of cash and have notice periods ranging from 45 to 90 days. (f) Based on the fair value of the investments owned by these funds that track various government and corporate bond indices. Retiree Medical Cost Trend Rates 2019 2018 Average increase assumed 6 % 6 % Ultimate projected increase 5 % 5 % Year of ultimate projected increase 2039 2039 These assumed health care cost trend rates have an impact on the retiree medical plan expense and liability, however the cap on our share of retiree medical costs limits the impact. Savings Plan Certain U.S. employees are eligible to participate in a 401(k) savings plan, which is a voluntary defined contribution plan. The plan is designed to help employees accumulate savings for retirement, and we make Company matching contributions for certain employees on a portion of eligible pay based on years of service. Certain U.S. salaried employees, who are not eligible to participate in a defined benefit pension plan, are also eligible to receive an employer contribution to the 401(k) savings plan based on age and years of service regardless of employee contribution. In 2018 , 2017 and 2016 , our total Company contributions were $180 million , $176 million and $164 million , respectively. For additional unaudited information on our pension and retiree medical plans and related accounting policies and assumptions, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Debt Obligations and Commitment
Debt Obligations and Commitments | 12 Months Ended |
Dec. 29, 2018 | |
Debt Obligations and Commitments [Abstract] | |
Debt Obligations And Commitments | Debt Obligations The following table summarizes the Company’s debt obligations: 2018 (a) 2017 (a) Short-term debt obligations (b) Current maturities of long-term debt $ 3,953 $ 4,020 Commercial paper (1.3%) — 1,385 Other borrowings (6.0% and 4.7%) 73 80 $ 4,026 $ 5,485 Long-term debt obligations (b) Notes due 2018 (2.4%) $ — $ 4,016 Notes due 2019 (3.1% and 2.1%) 3,948 3,933 Notes due 2020 (3.9% and 3.1%) 3,784 3,792 Notes due 2021 (3.1% and 2.4%) 3,257 3,300 Notes due 2022 (2.8% and 2.6%) 3,802 3,853 Notes due 2023 (2.9% and 2.4%) 1,270 1,257 Notes due 2024-2047 (3.7% and 3.8%) 16,161 17,634 Other, due 2018-2026 (1.3% and 1.3%) 26 31 32,248 37,816 Less: current maturities of long-term debt obligations (3,953 ) (4,020 ) Total $ 28,295 $ 33,796 (a) Amounts are shown net of unamortized net discounts of $119 million and $155 million for 2018 and 2017, respectively. (b) The interest rates presented reflect weighted-average effective interest rates at year-end. Certain of our fixed rate indebtedness have been swapped to floating rates through the use of interest rate derivative instruments. See Note 9 for additional information regarding our interest rate derivative instruments. As of December 29, 2018 , our international debt of $62 million was related to borrowings from external parties including various lines of credit. These lines of credit are subject to normal banking terms and conditions and are fully committed at least to the extent of our borrowings. In 2018 , we completed a cash tender offer for certain notes issued by PepsiCo and predecessors to a PepsiCo subsidiary for $1.6 billion in cash to redeem the following amounts: Interest Rate Maturity Date Amount Tendered 7.290 % September 2026 $ 11 7.440 % September 2026 $ 4 7.000 % March 2029 $ 357 5.500 % May 2035 $ 138 4.875 % November 2040 $ 410 5.500 % January 2040 $ 408 We also completed an exchange offer for certain notes issued by predecessors to a PepsiCo subsidiary for the following newly issued PepsiCo notes. These notes were issued in an aggregate principal amount equal to the exchanged notes: Interest Rate Maturity Date Amount 7.290 % September 2026 $ 88 7.440 % September 2026 $ 21 7.000 % March 2029 $ 516 5.500 % May 2035 $ 107 As a result of the above transactions, we recorded a pre-tax charge of $253 million ( $191 million after-tax or $0.13 per share) to interest expense, primarily representing the tender price paid over the carrying value of the tendered notes. See further unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. In 2018, we entered into a new five-year unsecured revolving credit agreement (Five-Year Credit Agreement) which expires on June 4, 2023. The Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.75 billion , subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $4.5 billion . Additionally, we may, once a year, request renewal of the agreement for an additional one-year period. Also in 2018, we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit Agreement) which expires on June 3, 2019. The 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.75 billion , subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $4.5 billion . We may request renewal of this facility for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to one year, which would mature no later than the anniversary of the then effective termination date. The Five-Year Credit Agreement and the 364-Day Credit Agreement together replaced our $3.75 billion five-year credit agreement and our $3.75 billion 364-day credit agreement, both dated as of June 5, 2017. Funds borrowed under the Five-Year Credit Agreement and the 364-Day Credit Agreement may be used for general corporate purposes. Subject to certain conditions, we may borrow, prepay and reborrow amounts under these agreements. As of December 29, 2018 , there were no outstanding borrowings under the Five-Year Credit Agreement or the 364-Day Credit Agreement. In 2016, we paid $2.5 billion to redeem all of our outstanding 7.900% senior notes due 2018 and 5.125% senior notes due 2019 for the principal amounts of $1.5 billion and $750 million , respectively, and terminated certain interest rate swaps. As a result, we recorded a pre-tax charge of $233 million ( $156 million after-tax or $0.11 per share) to interest expense, primarily representing the premium paid in accordance with the “make-whole” redemption provisions. See further unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. See “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our borrowings and long-term contractual commitments. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Financial Instruments | Financial Instruments Derivatives and Hedging We are exposed to market risks arising from adverse changes in: • commodity prices, affecting the cost of our raw materials and energy; • foreign exchange rates and currency restrictions; and • interest rates. In the normal course of business, we manage commodity price, foreign exchange and interest rate risks through a variety of strategies, including productivity initiatives, global purchasing programs and hedging. Ongoing productivity initiatives involve the identification and effective implementation of meaningful cost-saving opportunities or efficiencies, including the use of derivatives. Our global purchasing programs include fixed-price contracts and purchase orders and pricing agreements. Our hedging strategies include the use of derivatives and, in the case of our net investment hedges, debt instruments. Certain derivatives are designated as either cash flow or fair value hedges and qualify for hedge accounting treatment, while others do not qualify and are marked to market through earnings. Cash flows from derivatives used to manage commodity price, foreign exchange or interest rate risks are classified as operating activities in the cash flow statement. We classify both the earnings and cash flow impact from these derivatives consistent with the underlying hedged item. See “Our Business Risks” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our business risks. We do not use derivative instruments for trading or speculative purposes. We perform assessments of our counterparty credit risk regularly, including reviewing netting agreements, if any, and a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Based on our most recent assessment of our counterparty credit risk, we consider this risk to be low. In addition, we enter into derivative contracts with a variety of financial institutions that we believe are creditworthy in order to reduce our concentration of credit risk. Commodity Prices We are subject to commodity price risk because our ability to recover increased costs through higher pricing may be limited in the competitive environment in which we operate. This risk is managed through the use of fixed-price contracts and purchase orders, pricing agreements and derivative instruments, which primarily include swaps and futures. In addition, risk to our supply of certain raw materials is mitigated through purchases from multiple geographies and suppliers. We use derivatives, with terms of no more than three years, to economically hedge price fluctuations related to a portion of our anticipated commodity purchases, primarily for energy, agricultural products and metals . Ineffectiveness for those derivatives that qualify for hedge accounting treatment was not material for all periods presented. Derivatives used to hedge commodity price risk 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. Our commodity derivatives had a total notional value of $1.1 billion as of December 29, 2018 and $0.9 billion as of December 30, 2017 . Foreign Exchange Our operations outside of the United States generated 43% of our net revenue in 2018 , with Mexico, Russia, Canada, the United Kingdom and Brazil comprising approximately 20% of our net revenue in 2018 . As a result, we are exposed to foreign exchange risks in the international markets in which our products are made, manufactured, distributed or sold. Additionally, we are exposed to foreign exchange risk from net investments in foreign subsidiaries, foreign currency purchases and foreign currency assets and liabilities created in the normal course of business. We manage this risk through sourcing purchases from local suppliers, negotiating contracts in local currencies with foreign suppliers and through the use of derivatives, primarily forward contracts with terms of no more than two years. Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses on our income statement as incurred. We also use net investment hedges to partially offset the effects of foreign currency on our investments in certain of our foreign subsidiaries. Our foreign currency derivatives had a total notional value of $2.0 billion as of December 29, 2018 and $1.6 billion as of December 30, 2017 . The total notional amount of our debt instruments designated as net investment hedges was $0.9 billion as of December 29, 2018 and $1.5 billion as of December 30, 2017 . Ineffectiveness for derivatives and non-derivatives that qualify for hedge accounting treatment was not material for all periods presented. For foreign currency derivatives that do not qualify for hedge accounting treatment, all gains and losses were offset by changes in the underlying hedged items, resulting in no material net impact on earnings. Interest Rates We centrally manage our debt and investment portfolios considering investment opportunities and risks, tax consequences and overall financing strategies. We use various interest rate derivative instruments including, but not limited to, interest rate swaps, cross-currency interest rate swaps, Treasury locks and swap locks to manage our overall interest expense and foreign exchange risk. These instruments effectively change the interest rate and currency of specific debt issuances. Certain of our fixed rate indebtedness have been swapped to floating rates. The notional amount, interest payment and maturity date of the interest rate and cross-currency interest rate swaps match the principal, interest payment and maturity date of the related debt. Our Treasury locks and swap locks are entered into to protect against unfavorable interest rate changes relating to forecasted debt transactions. Our interest rate derivatives had a total notional value of $10.5 billion as of December 29, 2018 and $14.2 billion as of December 30, 2017 . Ineffectiveness for derivatives that qualify for cash flow hedge accounting treatment was not material for all periods presented. As of December 29, 2018 , approximately 29% of total debt, after the impact of the related interest rate derivative instruments, was subject to variable rates, compared to approximately 43% as of December 30, 2017 . Available-for-Sale Securities Investments in debt securities are classified as available-for-sale. All highly liquid investments with original maturities of three months or less are classified as cash equivalents. Our investments in available-for-sale debt securities are reported at fair value. Unrealized gains and losses related to changes in the fair value of available-for-sale debt securities are recognized in accumulated other comprehensive loss within common shareholders’ equity. Unrealized gains and losses on our investments in debt securities as of December 29, 2018 and December 30, 2017 were not material. Changes in the fair value of available-for-sale debt securities impact net income only when such securities are sold or an other-than-temporary impairment is recognized. We regularly review our investment portfolio to determine if any debt security is other-than-temporarily impaired. In making this judgment, we evaluate, among other things, the duration and extent to which the fair value of a debt security is less than its cost; the financial condition of the issuer and any changes thereto; and our intent to sell, or whether we will more likely than not be required to sell, the debt security before recovery of its amortized cost basis. Our assessment of whether a debt security is other-than-temporarily impaired could change in the future due to new developments or changes in assumptions related to any particular debt security. We recorded no other-than-temporary impairment charges on our available-for-sale debt securities for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . In 2017, we recorded a pre-tax gain of $95 million ( $85 million after-tax or $0.06 per share), net of discount and fees, associated with the sale of our minority stake in Britvic. The gain on the sale of this equity investment was recorded in our ESSA segment in selling, general and administrative expenses. See Note 2 for additional information on investments in certain equity securities. KSF Beverage Holding Co., Ltd. During 2016, we concluded that the decline in estimated fair value of our 5% indirect equity interest in KSFB was other than temporary based on significant negative economic trends in China and changes in assumptions associated with KSFB’s future financial performance arising from the disclosure by KSFB’s parent company, Tingyi, regarding the operating results of its beverage business. As a result, we recorded a pre- and after-tax impairment charge of $373 million ( $0.26 per share) in 2016 in the AMENA segment. This charge was recorded in selling, general and administrative expenses on our income statement and reduced the value of our 5% indirect equity interest in KSFB to its estimated fair value. The estimated fair value was derived using both an income and market approach, and is considered a non-recurring Level 3 measurement within the fair value hierarchy. The carrying value of the investment in KSFB was $166 million as of December 29, 2018 and December 30, 2017 . We continue to monitor the impact of economic and other developments on the remaining value of our investment in KSFB. See further unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. Fair Value Measurements The fair values of our financial assets and liabilities as of December 29, 2018 and December 30, 2017 are categorized as follows: 2018 2017 Fair Value Hierarchy Levels (a) Assets (a) Liabilities (a) Assets (a) Liabilities (a) Available-for-sale debt securities (b) 2 $ 3,658 $ — $ 14,510 $ — Short-term investments (c) 1 $ 196 $ — $ 228 $ — Prepaid forward contracts (d) 2 $ 22 $ — $ 27 $ — Deferred compensation (e) 2 $ — $ 450 $ — $ 503 Derivatives designated as fair value hedging instruments: Interest rate (f) 2 $ 1 $ 108 $ 24 $ 130 Derivatives designated as cash flow hedging instruments: Foreign exchange (g) 2 $ 44 $ 14 $ 15 $ 31 Interest rate (g) 2 — 323 — 213 Commodity (h) 1 — 1 — 2 Commodity (i) 2 — 3 2 — $ 44 $ 341 $ 17 $ 246 Derivatives not designated as hedging instruments: Foreign exchange (g) 2 $ 3 $ 10 $ 10 $ 3 Commodity (h) 1 2 17 — 19 Commodity (i) 2 5 92 85 12 $ 10 $ 119 $ 95 $ 34 Total derivatives at fair value (j) $ 55 $ 568 $ 136 $ 410 Total $ 3,931 $ 1,018 $ 14,901 $ 913 (a) Fair value hierarchy levels are defined in Note 7. Unless otherwise noted, financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities. (b) Based on quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of December 29, 2018 , these debt securities were primarily classified as cash equivalents. As of December 30, 2017 , $5.8 billion and $8.7 billion of debt securities were classified as cash equivalents and short-term investments, respectively. The decrease primarily reflects net maturities and sales of debt securities with maturities greater than three months. Refer to the cash flow statement and “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion on use of these proceeds. (c) Based on the price of index funds. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability. (d) Based primarily on the price of our common stock. (e) Based on the fair value of investments corresponding to employees’ investment elections. (f) Based on LIBOR forward rates. (g) Based on recently reported market transactions of spot and forward rates. (h) Based on quoted contract prices on futures exchange markets. (i) Based on recently reported market transactions of swap arrangements. (j) Derivative assets and liabilities are presented on a gross basis on our balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on the balance sheet as of December 29, 2018 and December 30, 2017 were not material. Collateral received or posted against any of our asset or liability positions were not material. Collateral posted is classified as restricted cash. See Note 13 for further information. The carrying amounts of our cash and cash equivalents and short-term investments approximate fair value due to their short-term maturity. The fair value of our debt obligations as of December 29, 2018 and December 30, 2017 was $32 billion and $41 billion , respectively, based upon prices of similar instruments in the marketplace, which are considered Level 2 inputs. Losses/(gains) on our hedging instruments are categorized as follows: Fair Value/Non- designated Hedges Cash Flow and Net Investment Hedges Losses/(Gains) Recognized in Income Statement (a) Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) 2018 2017 2018 2017 2018 2017 Foreign exchange $ 9 $ (15 ) $ (52 ) $ 62 $ (8 ) $ 10 Interest rate 53 101 110 (195 ) 119 (184 ) Commodity 117 (48 ) 3 3 — 3 Net investment — — (77 ) 157 — — Total $ 179 $ 38 $ (16 ) $ 27 $ 111 $ (171 ) (a) Foreign exchange derivative losses/gains are primarily included in selling, general and administrative expenses. Interest rate derivative losses/gains are primarily from fair value hedges and are included in interest expense. These losses/gains are substantially offset by decreases/increases in the value of the underlying debt, which are also included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. (b) Foreign exchange derivative losses/gains are primarily included in cost of sales. Interest rate derivative losses/gains are included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. Based on current market conditions, we expect to reclassify net gains of $5 million related to our cash flow hedges from accumulated other comprehensive loss into net income during the next 12 months. |
Net Income Attributable to Peps
Net Income Attributable to PepsiCo per Common Share | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Attributable To PepsiCo Per Common Share | Net Income Attributable to PepsiCo per Common Share The computations of basic and diluted net income attributable to PepsiCo per common share are as follows: 2018 2017 2016 Income Shares (a) Income Shares (a) Income Shares (a) Net income attributable to PepsiCo $ 12,515 $ 4,857 $ 6,329 Preferred shares: Dividends — — (1 ) Redemption premium (2 ) (4 ) (5 ) Net income available for PepsiCo common shareholders $ 12,513 1,415 $ 4,853 1,425 $ 6,323 1,439 Basic net income attributable to PepsiCo per common share $ 8.84 $ 3.40 $ 4.39 Net income available for PepsiCo common shareholders $ 12,513 1,415 $ 4,853 1,425 $ 6,323 1,439 Dilutive securities: Stock options, RSUs, PSUs, PEPunits and Other — 10 — 12 1 12 Employee stock ownership plan (ESOP) convertible preferred stock 2 — 4 1 5 1 Diluted $ 12,515 1,425 $ 4,857 1,438 $ 6,329 1,452 Diluted net income attributable to PepsiCo per common share $ 8.78 $ 3.38 $ 4.36 (a) Weighted-average common shares outstanding (in millions). Out-of-the-money options excluded from the calculation of diluted earnings per common share are as follows: 2018 2017 2016 Out-of-the-money options (a) 0.7 0.4 0.7 Average exercise price per option $ 109.83 $ 110.12 $ 99.98 (a) In millions. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock In connection with our merger with The Quaker Oats Company (Quaker) in 2001, shares of our convertible preferred stock were authorized and issued to an ESOP fund established by Quaker. Quaker made the final award to its ESOP in June 2001. In 2018, all of the outstanding shares of our convertible preferred stock were converted into an aggregate of 550,102 shares of our common stock at the conversion ratio set forth in Exhibit A to our amended and restated articles of incorporation. As a result, there are no shares of our convertible preferred stock outstanding as of December 29, 2018 and our convertible preferred stock is retired for accounting purposes. As of December 30, 2017 , there were 3 million shares of convertible preferred stock authorized, 803,953 preferred shares issued and 114,753 shares outstanding. The outstanding preferred shares had a fair value of $68 million as of December 30, 2017 . Activities of our preferred stock are included in the equity statement. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss Attributable to Pepsico | 12 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Loss Attributable to PepsiCo The changes in the balances of each component of accumulated other comprehensive loss attributable to PepsiCo are as follows: Currency Translation Adjustment Cash Flow Hedges Pension and Retiree Medical Available-For-Sale Securities Other Accumulated Other Comprehensive Loss Attributable to PepsiCo Balance as of December 26, 2015 (a) $ (11,080 ) $ 37 $ (2,329 ) $ 88 $ (35 ) $ (13,319 ) Other comprehensive (loss)/income before reclassifications (313 ) (74 ) (750 ) (43 ) — (1,180 ) Amounts reclassified from accumulated other comprehensive loss — 150 407 — — 557 Net other comprehensive (loss)/income (313 ) 76 (343 ) (43 ) — (623 ) Tax amounts 7 (30 ) 27 19 — 23 Balance as of December 31, 2016 (a) (11,386 ) 83 (2,645 ) 64 (35 ) (13,919 ) Other comprehensive (loss)/income before reclassifications (b) 1,049 130 (375 ) 25 — 829 Amounts reclassified from accumulated other comprehensive loss — (171 ) 158 (99 ) — (112 ) Net other comprehensive (loss)/income 1,049 (41 ) (217 ) (74 ) — 717 Tax amounts 60 5 58 6 16 145 Balance as of December 30, 2017 (a) (10,277 ) 47 (2,804 ) (4 ) (19 ) (13,057 ) Other comprehensive (loss)/income before reclassifications (c) (1,664 ) (61 ) (813 ) 6 — (2,532 ) Amounts reclassified from accumulated other comprehensive loss 44 111 218 — — 373 Net other comprehensive (loss)/income (1,620 ) 50 (595 ) 6 — (2,159 ) Tax amounts (21 ) (10 ) 128 — — 97 Balance as of December 29, 2018 (a) $ (11,918 ) $ 87 $ (3,271 ) $ 2 $ (19 ) $ (15,119 ) (a) Pension and retiree medical amounts are net of taxes of $1,253 million as of December 26, 2015, $1,280 million as of December 31, 2016, $1,338 million as of December 30, 2017 and $1,466 million as of December 29, 2018. (b) Currency translation adjustment primarily reflects the appreciation of the euro, Russian ruble, Pound sterling and Canadian dollar. (c) Currency translation adjustment primarily reflects the depreciation of the Russian ruble, Canadian dollar, Pound sterling and Brazilian real. The following table summarizes the reclassifications from accumulated other comprehensive loss to the income statement: Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Income Statement 2018 2017 2016 Currency translation: Divestitures $ 44 $ — $ — Selling, general and administrative expenses Cash flow hedges: Foreign exchange contracts $ (1 ) $ — $ 2 Net revenue Foreign exchange contracts (7 ) 10 (46 ) Cost of sales Interest rate derivatives 119 (184 ) 187 Interest expense Commodity contracts 3 4 3 Cost of sales Commodity contracts (3 ) (1 ) 4 Selling, general and administrative expenses Net losses/(gains) before tax 111 (171 ) 150 Tax amounts (27 ) 64 (63 ) Net losses/(gains) after tax $ 84 $ (107 ) $ 87 Pension and retiree medical items: Amortization of net prior service credit $ (17 ) $ (24 ) $ (39 ) Other pension and retiree medical benefits income/(expense) Amortization of net losses 216 167 209 Other pension and retiree medical benefits income/(expense) Settlement/curtailment 19 15 237 Other pension and retiree medical benefits income/(expense) Net losses before tax 218 158 407 Tax amounts (45 ) (44 ) (144 ) Net losses after tax $ 173 $ 114 $ 263 Available-for-sale securities: Sale of Britvic securities $ — $ (99 ) $ — Selling, general and administrative expenses Tax amount — 10 — Net gain after tax $ — $ (89 ) $ — Total net losses/(gains) reclassified for the year, net of tax $ 301 $ (82 ) $ 350 |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 29, 2018 | |
Supplemental Financial Information [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Balance Sheet 2018 2017 2016 Accounts and notes receivable Trade receivables $ 6,079 $ 5,956 Other receivables 1,164 1,197 7,243 7,153 Allowance, beginning of year 129 134 $ 130 Net amounts charged to expense 16 26 37 Deductions (a) (33 ) (35 ) (30 ) Other (b) (11 ) 4 (3 ) Allowance, end of year 101 129 $ 134 Net receivables $ 7,142 $ 7,024 Inventories (c) Raw materials and packaging $ 1,312 $ 1,344 Work-in-process 178 167 Finished goods 1,638 1,436 $ 3,128 $ 2,947 Other assets Noncurrent notes and accounts receivable $ 86 $ 59 Deferred marketplace spending 112 134 Pension plans (d) 269 374 Other 293 346 $ 760 $ 913 Accounts payable and other current liabilities Accounts payable $ 7,213 $ 6,727 Accrued marketplace spending 2,541 2,390 Accrued compensation and benefits 1,755 1,785 Dividends payable 1,329 1,161 SodaStream consideration payable 1,997 — Other current liabilities 3,277 2,954 $ 18,112 $ 15,017 (a) Includes accounts written off. (b) Includes adjustments related primarily to currency translation and other adjustments. (c) Approximately 5% of the inventory cost in 2018 and 2017 were computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material. (d) See Note 7 for additional information regarding our pension plans. Statement of Cash Flows 2018 2017 2016 Interest paid (a) $ 1,388 $ 1,123 $ 1,102 Income taxes paid, net of refunds (b) $ 1,203 $ 1,962 $ 1,393 (a) In 2018 and 2016, excludes the premiums paid in accordance with the debt transactions discussed in Note 8. (b) In 2018, includes tax payments of $115 million related to the TCJ Act. Lease Information 2018 2017 2016 Rent expense $ 771 $ 742 $ 701 Minimum lease payments under non-cancelable operating leases by period Operating Lease Payments 2019 $ 459 2020 406 2021 294 2022 210 2023 161 2024 and beyond 310 Total minimum operating lease payments $ 1,840 |
Acquisitions & Divestitures (No
Acquisitions & Divestitures (Notes) | 12 Months Ended |
Dec. 30, 2017 | |
Acquisitions & Divestitures [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Acquisitions and Divestitures Acquisition of SodaStream International Ltd. On December 5, 2018, we acquired all of the outstanding shares of SodaStream, a manufacturer and distributor of sparkling water makers, for $144.00 per share in cash, in a transaction valued at approximately $3.3 billion . The total consideration transferred was approximately $3.3 billion (or $3.2 billion , net of cash and cash equivalents acquired), including $2.0 billion of consideration held by our paying agent in connection with this acquisition and reported as restricted cash as of December 29, 2018. We accounted for the transaction as a business combination. We recognized and measured the identifiable assets acquired and liabilities assumed at their estimated fair values on the date of acquisition. The preliminary estimates of the fair value of the identifiable assets acquired and liabilities assumed in SodaStream as of the acquisition date include goodwill and other intangible assets of $3.0 billion and property, plant and equipment of $0.2 billion , all of which are recorded in our ESSA segment. The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in adjustments to the preliminary values discussed above as valuations are finalized. We expect to finalize these amounts as soon as possible, but no later than the end of 2019. Under the guidance on accounting for business combinations, merger and integration costs are not included as components of consideration transferred but are accounted for as expenses in the period in which the costs are incurred. In 2018, we incurred merger and integration charges of $75 million ( $0.05 per share), including $57 million in our ESSA segment and $18 million in corporate unallocated expenses. These charges include closing costs, advisory fees and employee-related costs and were recorded in selling, general and administrative expenses. See “Item 6. Selected Financial Data” and “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. Refranchising in Thailand In 2018, we refranchised our beverage business in Thailand by selling a controlling interest in our Thailand bottling operations to form a joint venture, where we now have an equity method investment. We recorded a pre-tax gain of $144 million ( $126 million after-tax or $0.09 per share) in selling, general and administrative expenses in our AMENA segment as a result of this transaction. Refranchising in Czech Republic, Hungary, and Slovakia In 2018, we refranchised our entire beverage bottling operations and snack distribution operations in CHS (included within our ESSA segment). We recorded a pre-tax gain of $58 million ( $46 million after-tax or $0.03 per share) in selling, general and administrative expenses in our ESSA segment as a result of this transaction. Refranchising in Jordan In 2017, we refranchised our beverage business in Jordan by selling a controlling interest in our Jordan bottling operations to form a joint venture, where we now have an equity method investment. We recorded a pre-tax gain of $140 million ( $107 million after-tax or $0.07 per share) in selling, general and administrative expenses in our AMENA segment as a result of this transaction. |
Restricted Cash (Notes)
Restricted Cash (Notes) | 12 Months Ended |
Dec. 29, 2018 | |
Restricted Cash [Abstract] | |
Restricted Cash and Cash Equivalents [Text Block] | Note 13 — Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the balance sheet to the same items as reported in the cash flow statement. 2018 2017 Cash and cash equivalents $ 8,721 $ 10,610 Restricted cash (a) 1,997 — Restricted cash included in other assets (b) 51 47 Total cash and cash equivalents and restricted cash $ 10,769 $ 10,657 (a) Represents consideration held by our paying agent in connection with our acquisition of SodaStream. (b) Restricted cash included in other assets primarily relates to collateral posted against our derivative asset or liability positions. |
Our Significant Accounting Po_3
Our Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | 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 transferred. 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. 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 and 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 products. In addition, upon adoption of the revenue recognition guidance (see subsequent discussion of “Recently Issued Accounting Pronouncements - Adopted”), we exclude from net revenue and cost of sales, all sales, use, value-added and certain excise taxes assessed by governmental authorities on revenue-producing transactions. 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. We estimate and reserve for our bad debt exposure based on our experience with past due accounts and collectibility, the aging of accounts receivable and our analysis of customer data. Bad debt 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 2018 , sales to Walmart (including Sam’s) represented approximately 13% 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. |
Sales Incentives And Other Marketplace Spending, Policy [Policy Text Block] | 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 for the expected payout. These accruals are based on contract terms and our historical experience with similar programs and require management judgment with respect to estimating customer 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 incurred. The terms of most of our incentive arrangements do not exceed a year, and, therefore, do not require highly uncertain long-term estimates. Certain arrangements, such as fountain pouring rights, may extend beyond one year. Upfront payments to customers under these arrangements are recognized over the shorter of the economic or contractual life, primarily as a reduction of revenue, and the remaining balances of $218 million as of December 29, 2018 and $262 million as of December 30, 2017 are included in prepaid expenses and other current assets and other assets on our balance sheet. For additional unaudited information on our sales incentives, see “Our Customers” in “Item 1. Business.” 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 financial statements are not impacted by this interim allocation methodology. Advertising and other marketing activities, reported as selling, general and administrative expenses, totaled $4.2 billion in 2018 , $4.1 billion in 2017 and $4.2 billion in 2016 , including advertising expenses of $2.6 billion in 2018 , $2.4 billion in 2017 and $2.5 billion in 2016 . Deferred 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. Deferred advertising costs of $47 million and $46 million as of December 29, 2018 and December 30, 2017 , respectively, are classified as prepaid expenses and other current assets on our balance sheet. |
Shipping and Handling Cost, Policy [Policy Text Block] | 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 $10.5 billion in 2018 , $9.9 billion in 2017 and $9.7 billion in 2016 . |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents Cash equivalents are highly liquid investments with original maturities of three months or less. |
Internal Use Software, Policy [Policy Text Block] | Software Costs We capitalize certain computer software and software development costs incurred 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 (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software projects and (iii) interest costs incurred 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 to 10 years. Software amortization totaled $204 million in 2018 , $224 million in 2017 and $214 million in 2016 . Net capitalized software and development costs were $577 million and $686 million as of December 29, 2018 and December 30, 2017 , respectively. |
Commitments and Contingencies, Policy [Policy Text Block] | 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. For additional unaudited information on our commitments, see “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Research and Development Expense, Policy [Policy Text Block] | 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 $680 million , $737 million and $ 760 million in 2018 , 2017 and 2016 , respectively, and are reported within selling, general and administrative expenses. See “Research and Development” in “Item 1. Business” for additional unaudited information about our research and development activities. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | 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. 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, industry and competitive conditions, legal and regulatory environment, historical financial performance and significant changes in the brand 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 of 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 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 and weighted-average cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. These assumptions could be adversely impacted by certain of the risks described in “Item 1A. Risk Factors” and “Our Business Risks” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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 also Note 4, and for additional unaudited information on goodwill and other intangible assets, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Other Significant Accounting Policies [Policy Text Block] | 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. • Property, Plant and Equipment – Note 4. • Income Taxes – Note 5, and for additional unaudited information, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. • Share-Based Compensation – Note 6. • Pension, Retiree Medical and Savings Plans – Note 7, and for additional unaudited information, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. • Financial Instruments – Note 9, and for additional unaudited information, see “Our Business Risks” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. • 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. • 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 currency translation adjustment. |
Basis of Presentation and Our_2
Basis of Presentation and Our Divisions (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Quarterly Reporting | The following chart details our quarterly reporting schedule: Quarter United States and Canada International First Quarter 12 weeks January, February Second Quarter 12 weeks March, April and May Third Quarter 12 weeks June, July and August Fourth Quarter 16 weeks (17 weeks for 2016) September, October, November and December |
Share Based Compensation Percentage Allocation by Division [Table Text Block] | Share-Based Compensation Expense Our divisions are held accountable for share-based compensation expense and, therefore, this expense is allocated to our divisions as an incremental employee compensation cost. The allocation of share-based compensation expense of each division is as follows: 2018 2017 2016 FLNA 13 % 13 % 14 % QFNA 1 % 1 % 2 % NAB 18 % 18 % 22 % Latin America 8 % 7 % 7 % ESSA 9 % 9 % 11 % AMENA 8 % 9 % 10 % Corporate unallocated expenses 43 % 43 % 34 % The expense allocated to our divisions excludes any impact of changes in our assumptions during the year which reflect market conditions over which division management has no control. Therefore, any variances between allocated expense and our actual expense are recognized in corporate unallocated expenses. |
Schedule of Segment Reporting Information, by Segment | Net revenue and operating profit of each division are as follows: Net Revenue Operating Profit (b) 2018 (a) 2017 2016 2018 2017 (c) 2016 (c) FLNA $ 16,346 $ 15,798 $ 15,549 $ 5,008 $ 4,793 $ 4,612 QFNA 2,465 2,503 2,564 637 640 649 NAB 21,072 20,936 21,312 2,276 2,700 2,947 Latin America 7,354 7,208 6,820 1,049 924 904 ESSA 11,523 11,050 10,216 1,364 1,316 1,061 AMENA 5,901 6,030 6,338 1,172 1,073 619 Total division 64,661 63,525 62,799 11,506 11,446 10,792 Corporate unallocated expenses — — — (1,396 ) (1,170 ) (988 ) $ 64,661 $ 63,525 $ 62,799 $ 10,110 $ 10,276 $ 9,804 (a) Our primary performance obligation is the distribution and sales of beverage products and food and snack products to our customers, each comprising approximately 50% of our consolidated net revenue. Internationally, our Latin America segment is predominantly a food and snack business, ESSA’s beverage business and food and snack business are each approximately 50% of the segment’s net revenue and AMENA’s beverage business and food and snack business are approximately 35% and 65% , respectively, of the segment’s net revenue. Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our NAB and ESSA segments, is approximately 40% of our consolidated net revenue. 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. See Note 2 for additional information. (b) For further unaudited information on certain items that impacted our financial performance, see “Item 6. Selected Financial Data.” (c) Reflects the retrospective adoption of guidance requiring the presentation of non-service cost components of net periodic benefit cost below operating profit. See Note 2 for additional information. |
Segment Reporting Information By Total Assets And Capital Spending | Total assets and capital spending of each division are as follows: Total Assets Capital Spending 2018 2017 2018 2017 2016 FLNA $ 6,577 $ 5,979 $ 840 $ 665 $ 801 QFNA 870 804 53 44 41 NAB 29,878 28,592 945 904 769 Latin America 6,458 4,976 492 481 507 ESSA (a) 17,410 13,556 479 481 439 AMENA 6,433 5,668 323 308 381 Total division 67,626 59,575 3,132 2,883 2,938 Corporate (b) 10,022 20,229 150 86 102 $ 77,648 $ 79,804 $ 3,282 $ 2,969 $ 3,040 (a) In 2018, the change in assets was primarily related to our acquisition of SodaStream. (b) 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 2018 , the change in assets was primarily due to a decrease in short-term investments and cash and cash equivalents. Refer to the cash flow statement for additional information. |
Segment Reporting Information By Amortization Of Intangible Assets And Depreciation And Other Amortization | Amortization of intangible assets and depreciation and other amortization of each division are as follows: Amortization of Depreciation and 2018 2017 2016 2018 2017 2016 FLNA $ 7 $ 7 $ 7 $ 457 $ 449 $ 435 QFNA — — — 45 47 50 NAB 31 31 37 821 780 809 Latin America 5 5 5 253 245 211 ESSA 23 22 18 331 329 321 AMENA 3 3 3 237 257 294 Total division 69 68 70 2,144 2,107 2,120 Corporate — — — 186 194 178 $ 69 $ 68 $ 70 $ 2,330 $ 2,301 $ 2,298 |
Segment Reporting Information By Net Revenue And Long-Lived Assets | Net revenue and long-lived assets by country are as follows: Net Revenue Long-Lived Assets (a) 2018 2017 2016 2018 2017 United States $ 37,148 $ 36,546 $ 36,732 $ 29,169 $ 28,418 Mexico 3,878 3,650 3,431 1,404 1,205 Russia (b) 3,191 3,232 2,648 3,926 4,708 Canada 2,736 2,691 2,692 2,565 2,739 United Kingdom 1,743 1,650 1,737 759 817 Brazil 1,335 1,427 1,305 639 777 All other countries (c) 14,630 14,329 14,254 12,169 9,200 $ 64,661 $ 63,525 $ 62,799 $ 50,631 $ 47,864 (a) Long-lived assets represent property, plant and equipment, indefinite-lived intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used. (b) Change in net revenue in 2017 primarily reflects appreciation of the Russian ruble. Change in long-lived assets in 2018 primarily reflects depreciation of the Russian ruble. (c) Change in long-lived assets in 2018 primarily related to our acquisition of SodaStream. |
Our Significant Accounting Po_4
Our Significant Accounting Policies Recently Issued Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The (decreases)/increases to operating profit for each division and to corporate unallocated expenses are as follows: 2017 (a) 2016 (b) FLNA $ (30 ) $ (47 ) QFNA (2 ) (4 ) NAB (7 ) (12 ) Latin America 16 17 ESSA (38 ) (47 ) AMENA — — Corporate unallocated expenses (172 ) 112 (c) Total $ (233 ) $ 19 (a) Includes restructuring charges of $66 million , including $13 million in our FLNA segment, $2 million in our QFNA segment, $11 million in our NAB segment, $7 million in our Latin America segment and $33 million in corporate unallocated expenses. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. (b) Includes restructuring charges of $5 million , including $1 million in our FLNA segment, $2 million in our NAB segment and $2 million in corporate unallocated expenses. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. (c) Reflects a settlement charge of $242 million related to a group annuity contract purchase. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Restructuring, Impairment and_2
Restructuring, Impairment and Integration Charges (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Summary Of Total Restructuring Activity [Table Text Block] | A summary of our restructuring and impairment charges and other productivity initiatives is as follows: 2018 2017 2016 2019 Productivity Plan $ 138 $ — $ — 2014 Productivity Plan 170 295 160 Total restructuring and impairment charges 308 295 160 Other productivity initiatives 8 16 12 Total restructuring and impairment charges and other productivity initiatives $ 316 $ 311 $ 172 |
Summary of 2019 Productivity Plan [Text Block] | A summary of our 2019 Productivity Plan charges is as follows: 2018 Costs of sales $ 3 Selling, general and administrative expenses 100 Other pension and retiree medical benefits expense 35 Total restructuring and impairment charges $ 138 After-tax amount $ 109 Net income attributable to PepsiCo per common share $ 0.08 2018 FLNA $ 31 QFNA 5 NAB 40 Latin America 9 ESSA 8 AMENA 3 Corporate 7 103 Other pension and retiree medical benefits expense 35 $ 138 A summary of our 2019 Productivity Plan activity is as follows: Severance and Other Employee Costs Asset Impairments Other Costs (a) Total 2018 restructuring charges $ 137 $ — $ 1 $ 138 Non-cash charges and translation (32 ) — — (32 ) Liability as of December 29, 2018 $ 105 $ — $ 1 $ 106 (a) Includes other costs associated with the implementation of our initiatives, including consulting and other professional fees. Substantially all of the restructuring accrual at December 29, 2018 is expected to be paid by the end of 2019 . |
Summary Of 2014 Productivity Plan Activity [Table Text Block] [Table Text Block] | 2014 Multi-Year Productivity Plan The 2014 Productivity Plan, publicly announced on February 13, 2014, includes the next generation of productivity initiatives that we believe will 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 program through the end of 2019 to take advantage of additional opportunities within the initiatives described above to further strengthen our beverage, food and snack businesses. A summary of our 2014 Productivity Plan charges is as follows: 2018 2017 2016 Selling, general and administrative expenses $ 169 $ 229 $ 155 Other pension and retiree medical benefits expense 1 66 5 Total restructuring and impairment charges $ 170 $ 295 $ 160 After-tax amount $ 143 $ 224 $ 134 Net income attributable to PepsiCo per common share $ 0.10 $ 0.16 $ 0.09 2018 2017 2016 Plan to Date FLNA $ 8 $ 67 $ 13 $ 171 QFNA 2 11 1 34 NAB 51 54 35 352 Latin America 30 63 27 182 ESSA 55 53 60 282 AMENA (a) 25 (3 ) 14 69 Corporate (b) (1 ) 50 10 114 $ 170 $ 295 $ 160 $ 1,204 (a) In 2017, income amount primarily reflects a gain on the sale of property, plant and equipment. (b) In 2018, income amount primarily relates to other pension and retiree medical benefits. Severance and Other Employee Costs Asset Impairments Other Costs (a) Total Plan to Date $ 713 $ 182 $ 309 $ 1,204 (a) Includes other costs associated with the implementation of our initiatives, including certain consulting and contract termination costs. A summary of our 2014 Productivity Plan activity is as follows: Severance and Other Employee Costs Asset Impairments Other Costs Total Liability as of December 26, 2015 $ 61 $ — $ 20 $ 81 2016 restructuring charges 88 36 36 160 Cash payments (46 ) — (49 ) (95 ) Non-cash charges and translation (15 ) (36 ) 1 (50 ) Liability as of December 31, 2016 88 — 8 96 2017 restructuring charges 280 21 (6 ) (a) 295 Cash payments (91 ) — (22 ) (113 ) Non-cash charges and translation (65 ) (21 ) 34 (52 ) Liability as of December 30, 2017 212 — 14 226 2018 restructuring charges 86 28 56 170 Cash payments (b) (203 ) — (52 ) (255 ) Non-cash charges and translation (4 ) (28 ) 5 (27 ) Liability as of December 29, 2018 $ 91 $ — $ 23 $ 114 (a) Income amount represents adjustments for changes in estimates and a gain on the sale of property, plant, and equipment. (b) Excludes cash expenditures of $11 million reported in the cash flow statement in pension and retiree medical plan contributions. Substantially all of the restructuring accrual at December 29, 2018 is expected to be paid by the end of 2019 . |
Property, Plant and Equipment_2
Property, Plant and Equipment and Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant And Equipment And Intangible Assets [Abstract] | |
Property, Plant and Equipment | A summary of our property, plant and equipment is as follows: Average 2018 2017 2016 Property, plant and equipment, net Land $ 1,078 $ 1,148 Buildings and improvements 15 - 44 8,941 8,796 Machinery and equipment, including fleet and software 5 - 15 27,715 27,018 Construction in progress 2,430 2,144 40,164 39,106 Accumulated depreciation (22,575 ) (21,866 ) $ 17,589 $ 17,240 Depreciation expense $ 2,241 $ 2,227 $ 2,217 |
Amortizable Intangible Assets, Net | Property, plant and equipment is recorded at historical cost. Depreciation and amortization are 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. A summary of our amortizable intangible assets is as follows: 2018 2017 2016 Amortizable intangible assets, net Average Gross Accumulated Net Gross Accumulated Net Acquired franchise rights 56 – 60 $ 838 $ (140 ) $ 698 $ 858 $ (128 ) $ 730 Reacquired franchise rights 5 – 14 106 (105 ) 1 106 (104 ) 2 Brands 20 – 40 1,306 (1,032 ) 274 1,322 (1,026 ) 296 Other identifiable intangibles (a) 10 – 24 959 (288 ) 671 521 (281 ) 240 $ 3,209 $ (1,565 ) $ 1,644 $ 2,807 $ (1,539 ) $ 1,268 Amortization expense $ 69 $ 68 $ 70 |
Future Amortization of Intangible Assets | Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 29, 2018 and using average 2018 foreign exchange rates, is expected to be as follows: 2019 2020 2021 2022 2023 Five-year projected amortization $ 89 $ 89 $ 87 $ 85 $ 83 |
Change in Book Value of Nonamortizable Intangible Assets | The change in the book value of indefinite-lived intangible assets is as follows: Balance, Translation Balance, Acquisitions/ (Divestitures) Translation Balance, FLNA Goodwill $ 270 $ 10 $ 280 $ 28 $ (11 ) $ 297 Brands 23 2 25 138 (2 ) 161 293 12 305 166 (13 ) 458 QFNA Goodwill 175 — 175 9 — 184 Brands — — — 25 — 25 175 — 175 34 — 209 NAB (a) Goodwill 9,843 11 9,854 — (41 ) 9,813 Reacquired franchise rights 7,064 62 7,126 — (68 ) 7,058 Acquired franchise rights 1,512 13 1,525 — (15 ) 1,510 Brands 314 39 353 — — 353 18,733 125 18,858 — (124 ) 18,734 Latin America Goodwill 553 2 555 — (46 ) 509 Brands 150 (9 ) 141 — (14 ) 127 703 (7 ) 696 — (60 ) 636 ESSA (b) Goodwill 3,177 275 3,452 526 (367 ) 3,611 Reacquired franchise rights 488 61 549 (1 ) (51 ) 497 Acquired franchise rights 184 11 195 (25 ) (9 ) 161 Brands 2,358 187 2,545 1,993 (350 ) 4,188 6,207 534 6,741 2,493 (777 ) 8,457 AMENA Goodwill 412 16 428 — (34 ) 394 Brands 103 8 111 — (10 ) 101 515 24 539 — (44 ) 495 Total goodwill 14,430 314 14,744 563 (499 ) 14,808 Total reacquired franchise rights 7,552 123 7,675 (1 ) (119 ) 7,555 Total acquired franchise rights 1,696 24 1,720 (25 ) (24 ) 1,671 Total brands 2,948 227 3,175 2,156 (376 ) 4,955 $ 26,626 $ 688 $ 27,314 $ 2,693 $ (1,018 ) $ 28,989 (a) The change in translation and other in 2018 primarily reflects the depreciation of the Canadian dollar. (b) The change in acquisitions/(divestitures) in 2018 is primarily related to the preliminary allocation of the purchase price for our acquisition of SodaStream. See Note 14 for further information. The change in translation and other in 2018 primarily reflects the depreciation of the Russian ruble, euro and Pound sterling. The change in translation and other in 2017 primarily reflects the appreciation of the Russian ruble and euro. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Contingency [Line Items] | |
Summary of Income Tax Contingencies [Table Text Block] | 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 Currently Under Audit United States 2014-2017 2014-2016 Mexico 2017 None United Kingdom 2016-2017 None Canada (Domestic) 2014-2017 2014-2015 Canada (International) 2010-2017 2010-2015 Russia 2014-2017 2014-2017 During 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, during 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. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe that our reserves reflect the probable outcome of known tax contingencies. We adjust these reserves, as well as the related interest, in light of changing facts and circumstances. 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. For further unaudited information on the impact of the resolution of open tax issues, see “Other Consolidated Results” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. As of December 29, 2018 , the total gross amount of reserves for income taxes, reported in other liabilities, was $1.4 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 $179 million as of December 29, 2018 , which reflects a reduction of the prior year liability of $64 million of tax benefit that was recognized in 2018 . The gross amount of interest accrued, reported in other liabilities, was $283 million as of December 30, 2017 , of which $89 million of expense was recognized in 2017 . A recon |
Income Taxes | Income Taxes The components of income before income taxes are as follows: 2018 2017 2016 United States $ 3,864 $ 3,452 $ 2,630 Foreign 5,325 6,150 5,923 $ 9,189 $ 9,602 $ 8,553 The (benefit from)/provision for income taxes consisted of the following: 2018 2017 2016 Current: U.S. Federal $ 437 $ 4,925 $ 1,219 Foreign 378 724 824 State 63 136 77 878 5,785 2,120 Deferred: U.S. Federal 140 (1,159 ) 109 Foreign (4,379 ) (9 ) (33 ) State (9 ) 77 (22 ) (4,248 ) (1,091 ) 54 $ (3,370 ) $ 4,694 $ 2,174 A reconciliation of the U.S. Federal statutory tax rate to our annual tax rate is as follows: 2018 2017 2016 U.S. Federal statutory tax rate 21.0 % 35.0 % 35.0 % State income tax, net of U.S. Federal tax benefit 0.5 0.9 0.4 Lower taxes on foreign results (2.2 ) (9.4 ) (8.0 ) One-time mandatory transition tax - TCJ Act 0.1 41.4 — Remeasurement of deferred taxes - TCJ Act (0.4 ) (15.9 ) — International reorganizations (47.3 ) — — Tax settlements (7.8 ) — — Other, net (0.6 ) (3.1 ) (2.0 ) Annual tax rate (36.7 )% 48.9 % 25.4 % 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. 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. See further unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. Included in the provisional net tax expense of $2.5 billion recognized in the fourth quarter of 2017, was a provisional mandatory one-time transition tax of approximately $4 billion on undistributed international earnings, included in other liabilities. This provisional mandatory one-time transition tax was partially offset by a provisional $1.5 billion benefit resulting from the required remeasurement of our deferred tax assets and liabilities to the new, lower U.S. corporate income tax rate, effective January 1, 2018. The effect of the remeasurement was recorded in the fourth quarter of 2017, consistent with the enactment date of the TCJ Act, and reflected in our provision for income taxes. During 2018, we recognized a net tax benefit of $28 million ( $0.02 per share) primarily reflecting the impact of the final analysis of certain foreign exchange gains or losses, substantiation of foreign tax credits, as well as cash and cash equivalents as of November 30, 2018, the tax year-end of our foreign subsidiaries, partially offset by additional transition tax guidance issued by the United States Department of Treasury, as well as the TCJ Act impact of both the conclusion of certain international tax audits and the resolution with the IRS of all open matters related to the audits of taxable years 2012 and 2013, each discussed below. As of December 29, 2018, our mandatory transition tax liability is $ 3.8 billion . Under the provisions of the TCJ Act, this transition tax liability must be paid over eight years; we currently expect to pay approximately $0.4 billion of this liability in 2019 and the remainder over the period 2020 to 2026. The TCJ Act also created a requirement that certain income earned by foreign subsidiaries, known as GILTI, must be included in the gross income of their U.S. shareholder. The FASB allows an accounting policy election of either recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years or recognizing such taxes as a current-period expense when incurred. During the first quarter of 2018, we elected to treat the tax effect of GILTI as a current-period expense when incurred. 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. The provisional measurement period ended in the fourth quarter of 2018. While our accounting for the recorded impact of the TCJ Act is deemed to be complete, these amounts are based on prevailing regulations and currently available information, and any additional guidance issued by the IRS could impact the aforementioned amounts in future periods. For further unaudited information and discussion, refer to “Item 1A. Risk Factors,” “Our Business Risks,” “Our Liquidity and Capital Resources” and “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. International Reorganizations During the fourth quarter of 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). The related deferred tax asset of $4.4 billion is expected to be amortized over a period of 15 years beginning in 2019. Additionally, the reorganization generated significant net operating loss carryforwards and related deferred tax assets that are not expected to be realized, resulting in the recording of a full valuation allowance. Deferred tax liabilities and assets are comprised of the following: Deferred Tax Liabilities 2018 2017 Debt guarantee of wholly-owned subsidiary $ 578 $ 578 Property, plant and equipment 1,303 1,397 Intangible assets other than nondeductible goodwill — 3,169 Recapture of net operating losses 414 — Other 71 50 Gross deferred tax liabilities 2,366 5,194 Deferred tax assets Net carryforwards 4,353 1,400 Intangible assets other than nondeductible goodwill 985 — Share-based compensation 106 107 Retiree medical benefits 167 198 Other employee-related benefits 303 338 Pension benefits 221 22 Deductible state tax and interest benefits 110 157 Other 739 893 Gross deferred tax assets 6,984 3,115 Valuation allowances (3,753 ) (1,163 ) Deferred tax assets, net 3,231 1,952 Net deferred tax (assets)/liabilities $ (865 ) $ 3,242 A summary of our valuation allowance activity is as follows: 2018 2017 2016 Balance, beginning of year $ 1,163 $ 1,110 $ 1,136 Provision 2,639 33 13 Other (deductions)/additions (49 ) 20 (39 ) Balance, end of year $ 3,753 $ 1,163 $ 1,110 For additional unaudited information on our income tax policies, including our reserves for income taxes, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. Reserves A numb |
Reserves Rollforward | A reconciliation of unrecognized tax benefits is as follows: 2018 2017 Balance, beginning of year $ 2,212 $ 1,885 Additions for tax positions related to the current year 142 309 Additions for tax positions from prior years 197 86 Reductions for tax positions from prior years (822 ) (51 ) Settlement payments (233 ) (4 ) Statutes of limitations expiration (42 ) (33 ) Translation and other (14 ) 20 Balance, end of year $ 1,440 $ 2,212 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Liability Award Vested and Expected to Vest [Table Text Block] | Long-Term Cash Award (a) Balance Sheet Date Fair Value (a) Contractual Life Remaining Outstanding at December 30, 2017 $ 33,200 Granted (b) 20,926 Forfeited (2,292 ) Actual performance change (c) 2,876 Outstanding at December 29, 2018 (d) $ 54,710 $ 55,809 1.22 Expected to vest as of December 29, 2018 $ 51,159 $ 52,148 1.17 (a) In thousands. (b) Grant activity for all long-term cash awards are disclosed at target. (c) Reflects the net number of long-term cash awards above and below target levels based on actual performance measured at the end of the performance period. (d) The outstanding long-term cash awards for which the performance period has not ended as of December 29, 2018, at the threshold, target and maximum award levels were zero , 37.3 million and 74.5 million, respectively |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | The following table summarizes our total share-based compensation expense and excess tax benefits recognized: 2018 2017 2016 Share-based compensation expense - equity awards $ 256 $ 292 $ 284 Share-based compensation expense - liability awards 20 13 5 Restructuring and impairment charges (6 ) (2 ) 5 Total $ 270 $ 303 $ 294 Income tax benefits recognized in earnings related to share-based compensation $ 45 $ 89 (a) $ 91 Excess tax benefits related to share-based compensation (b) $ 48 $ 115 $ 110 |
Summary of Compensation Costs | Note 6 — 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, restricted stock units (RSUs), performance stock units (PSUs), PepsiCo equity performance units (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 were 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 29, 2018 , 66 million shares were available for future share-based compensation grants under the LTIP. The following table summarizes our total share-based compensation expense and excess tax benefits recognized: 2018 2017 2016 Share-based compensation expense - equity awards $ 256 $ 292 $ 284 Share-based compensation expense - liability awards 20 13 5 Restructuring and impairment charges (6 ) (2 ) 5 Total $ 270 $ 303 $ 294 Income tax benefits recognized in earnings related to share-based compensation $ 45 $ 89 (a) $ 91 Excess tax benefits related to share-based compensation (b) $ 48 $ 115 $ 110 (a) Reflects tax rates effective for the 2017 tax year. (b) Included in provision for income taxes in the income statement in 2018 and 2017; included in capital in excess of par value in the equity statement in 2016. As of December 29, 2018 , there was $282 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. |
Schedule Of Weighted-Average Black-Scholes Fair Value Assumptions | Our weighted-average Black-Scholes fair value assumptions are as follows: 2018 2017 2016 Expected life 5 years 5 years 6 years Risk-free interest rate 2.6 % 2.0 % 1.4 % Expected volatility 12 % 11 % 12 % Expected dividend yield 2.7 % 2.7 % 2.7 % |
Our Stock Option Activity | A summary of our stock option activity for the year ended December 29, 2018 is as follows: Options (a) Weighted-Average Exercise Price Weighted-Average Contractual Life Remaining (years) Aggregate Intrinsic Value (b) Outstanding at December 30, 2017 19,013 $ 74.23 Granted 1,429 $ 108.88 Exercised (4,377 ) $ 62.95 Forfeited/expired (476 ) $ 94.85 Outstanding at December 29, 2018 15,589 $ 79.94 4.29 $ 474,746 Exercisable at December 29, 2018 11,547 $ 70.74 2.92 $ 457,529 Expected to vest as of December 29, 2018 3,713 $ 106.02 8.17 $ 16,606 (a) Options are in thousands and include options previously granted under the PBG plan. No additional options or shares were granted under the PBG plan after 2009. (b) In thousands. |
Our RSU and PSU Activity | RSUs/PSUs (a) Weighted-Average Grant-Date Fair Value Weighted-Average Contractual Life Remaining (years) Aggregate Intrinsic Value (a) Outstanding at December 30, 2017 7,293 $ 102.30 Granted (b) 2,634 $ 108.75 Converted (2,362 ) $ 99.73 Forfeited (647 ) $ 105.21 Actual performance change (c) 257 $ 98.92 Outstanding at December 29, 2018 (d) 7,175 $ 105.13 1.22 $ 791,878 Expected to vest as of December 29, 2018 6,667 $ 104.90 1.15 $ 735,813 (a) In thousands. (b) Grant activity for all PSUs are disclosed at target. (c) Reflects the net number of PSUs above and below target levels based on actual performance measured at the end of the performance period. (d) The outstanding PSUs for which the performance period has not ended as of December 29, 2018 , at the threshold, target and maximum award levels were zero , 0.9 million and 1.6 million , respectively. |
Our PEPunit Activity | 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. PEPunits were last granted in 2015 and all 248,000 units outstanding at December 30, 2017, with a weighted average grant date fair value of $68.94 , were converted to 278,000 shares during fiscal year 2018. |
Other Share-Based Compensation Data | Other Share-Based Compensation Data The following is a summary of other share-based compensation data: 2018 2017 2016 Stock Options Total number of options granted (a) 1,429 1,481 1,743 Weighted-average grant-date fair value of options granted $ 9.80 $ 8.25 $ 6.94 Total intrinsic value of options exercised (a) $ 224,663 $ 327,860 $ 290,131 Total grant-date fair value of options vested (a) $ 15,506 $ 23,122 $ 18,840 RSUs/PSUs Total number of RSUs/PSUs granted (a) 2,634 2,824 3,054 Weighted-average grant-date fair value of RSUs/PSUs granted $ 108.75 $ 109.92 $ 99.06 Total intrinsic value of RSUs/PSUs converted (a) $ 260,287 $ 380,269 $ 359,401 Total grant-date fair value of RSUs/PSUs vested (a) $ 232,141 $ 264,923 $ 257,648 PEPunits Total intrinsic value of PEPunits converted (a) $ 30,147 $ 39,782 $ 38,558 Total grant-date fair value of PEPunits vested (a) $ 9,430 $ 18,833 $ 16,572 (a) In thousands. As of December 29, 2018 and December 30, 2017 , there were approximately 248,000 and 250,000 outstanding awards, respectively, consisting primarily of phantom stock units that were granted under the PepsiCo Director Deferral Program and will be settled in shares of PepsiCo common stock pursuant to the LTIP at the end of the applicable deferral period, not included in the tables above. |
Pension, Retiree Medical and _2
Pension, Retiree Medical and Savings Plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Plan Assets Measured At Fair Value Table Text Block | Plan assets measured at fair value as of fiscal year-end 2018 and 2017 are categorized consistently by level, and are as follows: 2018 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total U.S. plan assets (a) Equity securities, including preferred stock (b) $ 5,605 $ 5,595 $ 10 $ — $ 6,904 Government securities (c) 1,674 — 1,674 — 1,365 Corporate bonds (c) 4,145 — 4,145 — 3,429 Mortgage-backed securities (c) 212 — 212 — 217 Contracts with insurance companies (d) 9 — — 9 8 Cash and cash equivalents 215 215 — — 236 Sub-total U.S. plan assets 11,860 $ 5,810 $ 6,041 $ 9 12,159 Real estate commingled funds measured at net asset value (e) 618 675 Dividends and interest receivable, net of payables 65 69 Total U.S. plan assets $ 12,543 $ 12,903 International plan assets Equity securities (b) $ 1,651 $ 1,621 $ 30 $ — $ 1,928 Government securities (c) 433 — 433 — 492 Corporate bonds (c) 478 — 478 — 493 Fixed income commingled funds (f) 356 356 — — 383 Contracts with insurance companies (d) 36 — — 36 36 Cash and cash equivalents 27 27 — — 19 Sub-total international plan assets 2,981 $ 2,004 $ 941 $ 36 3,351 Real estate commingled funds measured at net asset value (e) 102 102 Dividends and interest receivable 7 7 Total international plan assets $ 3,090 $ 3,460 (a) 2018 and 2017 amounts include $285 million and $ 321 million , respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries. (b) The equity securities portfolio was invested in U.S. and international common stock and commingled funds, and the preferred stock portfolio in the U.S. was invested in domestic and international corporate preferred stock investments. The common stock is based on quoted prices in active markets. The U.S. commingled funds are based on fair values of the investments owned by these funds that are benchmarked against various U.S. large, mid-cap and small company indices, and includes one large-cap fund that represents 15% and 19% of total U.S. plan assets for 2018 and 2017 , respectively. The international commingled funds are based on the fair values of the investments owned by these funds that track various non-U.S. equity indices. The preferred stock investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets. (c) These investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets. Corporate bonds of U.S.-based companies represent 28% and 23% of total U.S. plan assets for 2018 and 2017 , respectively. (d) Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable. The changes in Level 3 amounts were not significant in the years ended December 29, 2018 and December 30, 2017. (e) The real estate commingled funds include investments in limited partnerships. These funds are based on the net asset value of the appraised value of investments owned by these funds as determined by independent third parties using inputs that are not observable. The majority of the funds are redeemable quarterly subject to availability of cash and have notice periods ranging from 45 to 90 days. (f) Based on the fair value of the investments owned by these funds that track various government and corporate bond indices. |
Selected Financial Information For Pension And Retiree Medical Plans | Pension, Retiree Medical and Savings Plans Effective January 1, 2017, the U.S. qualified defined benefit pension plans were reorganized into Plan A and Plan I. Actuarial gains and losses associated with Plan A are amortized over the average remaining service life of the active participants, while the actuarial gains and losses associated with Plan I are amortized over the remaining life expectancy of the inactive participants. As a result of this change, the pre-tax net periodic benefit cost decreased by $ 42 million ($ 27 million after-tax, reflecting tax rates effective for the 2017 tax year, or $ 0.02 per share) in 2017, primarily impacting corporate unallocated expenses. See “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. In 2016, the U.S. qualified defined benefit pension plans purchased a group annuity contract whereby an unrelated insurance company assumed the obligation to pay and administer future annuity payments for certain retirees. In 2016, we made discretionary contributions of $452 million primarily to fund the transfer of the obligation. This transaction triggered a pre-tax settlement charge of $242 million ( $162 million after-tax or $0.11 per share). See additional unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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 liabilities, a portion of the net gain or loss is included in other pension and retiree medical benefits income/(expense) for the following year based upon the average remaining service life for participants in Plan A (approximately 10 years) and retiree medical (approximately 7 years), or the remaining life expectancy for participants in Plan I (approximately 25 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 income/(expense) on a straight-line basis over the average remaining service life for participants in Plan A 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 2018 2017 2018 2017 2018 2017 Change in projected benefit liability Liability at beginning of year $ 14,777 $ 13,192 $ 3,490 $ 3,124 $ 1,187 $ 1,208 Service cost 431 401 92 91 32 28 Interest cost 482 468 93 89 34 36 Plan amendments 83 10 2 2 — (5 ) Participant contributions — — 2 2 — — Experience (gain)/loss (972 ) 1,529 (230 ) 5 (147 ) 21 Benefit payments (956 ) (825 ) (114 ) (104 ) (108 ) (107 ) Settlement/curtailment (74 ) (58 ) (35 ) (22 ) — — Special termination benefits 36 60 2 — 1 2 Other, including foreign currency adjustment — — (204 ) 303 (3 ) 4 Liability at end of year $ 13,807 $ 14,777 $ 3,098 $ 3,490 $ 996 $ 1,187 Change in fair value of plan assets Fair value at beginning of year $ 12,582 $ 11,458 $ 3,460 $ 2,894 $ 321 $ 320 Actual return on plan assets (789 ) 1,935 (136 ) 288 (21 ) 52 Employer contributions/funding 1,495 60 120 104 93 56 Participant contributions — — 2 2 — — Benefit payments (956 ) (825 ) (114 ) (104 ) (108 ) (107 ) Settlement (74 ) (46 ) (32 ) (18 ) — — Other, including foreign currency adjustment — — (210 ) 294 — — Fair value at end of year $ 12,258 $ 12,582 $ 3,090 $ 3,460 $ 285 $ 321 Funded status $ (1,549 ) $ (2,195 ) $ (8 ) $ (30 ) $ (711 ) $ (866 ) Amounts recognized Other assets $ 185 $ 286 $ 81 $ 85 $ — $ — Other current liabilities (107 ) (74 ) (1 ) (1 ) (41 ) (75 ) Other liabilities (1,627 ) (2,407 ) (88 ) (114 ) (670 ) (791 ) Net amount recognized $ (1,549 ) $ (2,195 ) $ (8 ) $ (30 ) $ (711 ) $ (866 ) Amounts included in accumulated other comprehensive loss (pre-tax) Net loss/(gain) $ 4,093 $ 3,520 $ 780 $ 782 $ (287 ) $ (189 ) Prior service cost/(credit) 109 29 (1 ) (3 ) (51 ) (71 ) Total $ 4,202 $ 3,549 $ 779 $ 779 $ (338 ) $ (260 ) Changes recognized in net loss/(gain) included in other comprehensive loss Net loss/(gain) arising in current year $ 760 $ 431 $ 103 $ (115 ) $ (107 ) $ (9 ) Amortization and settlement recognition (187 ) (131 ) (56 ) (60 ) 8 12 Foreign currency translation (gain)/loss — — (49 ) 73 1 1 Total $ 573 $ 300 $ (2 ) $ (102 ) $ (98 ) $ 4 Accumulated benefit obligation at end of year $ 12,890 $ 13,732 $ 2,806 $ 2,985 |
Weighted-Average Assumptions Used To Determine Projected Benefit Liability And Benefit Expense For Pension And Retiree Medical Plans | The following table provides the weighted-average assumptions used to determine projected benefit liability and net periodic benefit cost for our pension and retiree medical plans: Pension Retiree Medical U.S. International 2018 2017 2016 2018 2017 2016 2018 2017 2016 Liability discount rate 4.4 % 3.7 % 4.4 % 3.4 % 3.0 % 3.1 % 4.2 % 3.5 % 4.0 % Service cost discount rate 3.8 % 4.5 % 4.6 % 3.5 % 3.6 % 4.1 % 3.6 % 4.0 % 4.3 % Interest cost discount rate 3.4 % 3.7 % 3.8 % 2.8 % 2.8 % 3.5 % 3.0 % 3.2 % 3.3 % Expected return on plan assets 7.2 % 7.5 % 7.5 % 6.0 % 6.0 % 6.2 % 6.5 % 7.5 % 7.5 % Liability rate of salary increases 3.1 % 3.1 % 3.1 % 3.7 % 3.7 % 3.6 % Expense rate of salary increases 3.1 % 3.1 % 3.1 % 3.7 % 3.6 % 3.6 % |
Future Benefit Payments | Our estimated future benefit payments are as follows: 2019 2020 2021 2022 2023 2024 - 2028 Pension $ 1,060 $ 960 $ 875 $ 915 $ 950 $ 5,265 Retiree medical (a) $ 115 $ 105 $ 100 $ 100 $ 95 $ 395 (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 $ 2 million for each of the years from 2019 through 2023 and approximately $6 million in total for 2024 through 2028. These future benefit payments to beneficiaries include payments from both funded and unfunded plans. |
Target Investment Allocation | Plan Assets Our pension plan investment strategy includes the use of actively managed accounts and is reviewed periodically in conjunction with plan liabilities, 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 liabilities. 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 currency risks. Futures contracts represent commitments to purchase or sell securities at a future date and at a specified price. Forward contracts consist of currency forwards. For 2019 and 2018 , our expected long-term rate of return on U.S. plan assets is 7.1% and 7.2% , respectively. Our target investment allocations for U.S. plan assets are as follows: 2019 2018 Fixed income 47 % 47 % U.S. equity 29 % 29 % International equity 20 % 20 % 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 correlation among asset classes and our historical experience. We also review current 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. |
Effects Of 1-Percentage-Point Change In The Assumed Health Care Trend Rate | d on the fair value of the investments owned by these funds that track various government and corporate bond indices. Retiree Medical Cost Trend Rates 2019 2018 Average increase assumed 6 % 6 % Ultimate projected increase 5 % 5 % Year of ultimate projected increase 2039 2039 These assumed health care cost trend rates have an impact on the retiree medical plan expense and liability, however the cap on our share of retiree medical costs limits the impact. Savings Plan Certain U.S. employees are eligible to participate in a 401(k) savings plan, which is a voluntary defined contribution plan. The plan is designed to help employees accumulate savings for retirement, and we make Company matching contributions for certain employees on a portion of eligible pay based on years of service. Certain U.S. salaried employees, who are not eligible to participate in a defined benefit pension plan, are also eligible to receive an employer contribution to the 401(k) savings plan based on age and years of service regardless of employee contribution. In 2018 , 2017 and 2016 , our total Company contributions were $180 million , $176 million and $164 million , respectively. For additional unaudited information on our pension and retiree medical plans and related accounting policies and assumptions, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Schedule of Net Benefit Costs [Table Text Block] | The components of total pension and retiree medical benefit costs are as follows: Pension Retiree Medical U.S. International 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ 431 $ 401 $ 393 $ 92 $ 91 $ 80 $ 32 $ 28 $ 31 Interest cost 482 468 484 93 89 94 34 36 41 Expected return on plan assets (943 ) (849 ) (834 ) (197 ) (176 ) (163 ) (19 ) (22 ) (24 ) Amortization of prior service cost/(credits) 3 1 (1 ) — — — (20 ) (25 ) (38 ) Amortization of net losses/(gains) 179 123 168 45 53 40 (8 ) (12 ) (1 ) 152 144 210 33 57 51 19 5 9 Settlement/curtailment losses/(gain) (a) 8 8 245 6 11 9 — — (14 ) Special termination benefits 36 60 11 2 — 1 1 2 1 Total $ 196 $ 212 $ 466 $ 41 $ 68 $ 61 $ 20 $ 7 $ (4 ) |
Debt Obligations and Commitme_2
Debt Obligations and Commitments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Obligations and Commitments [Abstract] | |
Schedule of Long and Short-Term Debt Contractural Commitments | Debt Obligations The following table summarizes the Company’s debt obligations: 2018 (a) 2017 (a) Short-term debt obligations (b) Current maturities of long-term debt $ 3,953 $ 4,020 Commercial paper (1.3%) — 1,385 Other borrowings (6.0% and 4.7%) 73 80 $ 4,026 $ 5,485 Long-term debt obligations (b) Notes due 2018 (2.4%) $ — $ 4,016 Notes due 2019 (3.1% and 2.1%) 3,948 3,933 Notes due 2020 (3.9% and 3.1%) 3,784 3,792 Notes due 2021 (3.1% and 2.4%) 3,257 3,300 Notes due 2022 (2.8% and 2.6%) 3,802 3,853 Notes due 2023 (2.9% and 2.4%) 1,270 1,257 Notes due 2024-2047 (3.7% and 3.8%) 16,161 17,634 Other, due 2018-2026 (1.3% and 1.3%) 26 31 32,248 37,816 Less: current maturities of long-term debt obligations (3,953 ) (4,020 ) Total $ 28,295 $ 33,796 (a) Amounts are shown net of unamortized net discounts of $119 million and $155 million for 2018 and 2017, respectively. (b) The interest rates presented reflect weighted-average effective interest rates at year-end. Certain of our fixed rate indebtedness have been swapped to floating rates through the use of interest rate derivative instruments. See Note 9 for additional information regarding our interest rate derivative instruments. |
Schedule Of Long-Term Contractual Commitments | See “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our borrowings and long-term contractual commitments. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Fair Values Of Financial Assets And Liabilities | Fair Value Measurements The fair values of our financial assets and liabilities as of December 29, 2018 and December 30, 2017 are categorized as follows: 2018 2017 Fair Value Hierarchy Levels (a) Assets (a) Liabilities (a) Assets (a) Liabilities (a) Available-for-sale debt securities (b) 2 $ 3,658 $ — $ 14,510 $ — Short-term investments (c) 1 $ 196 $ — $ 228 $ — Prepaid forward contracts (d) 2 $ 22 $ — $ 27 $ — Deferred compensation (e) 2 $ — $ 450 $ — $ 503 Derivatives designated as fair value hedging instruments: Interest rate (f) 2 $ 1 $ 108 $ 24 $ 130 Derivatives designated as cash flow hedging instruments: Foreign exchange (g) 2 $ 44 $ 14 $ 15 $ 31 Interest rate (g) 2 — 323 — 213 Commodity (h) 1 — 1 — 2 Commodity (i) 2 — 3 2 — $ 44 $ 341 $ 17 $ 246 Derivatives not designated as hedging instruments: Foreign exchange (g) 2 $ 3 $ 10 $ 10 $ 3 Commodity (h) 1 2 17 — 19 Commodity (i) 2 5 92 85 12 $ 10 $ 119 $ 95 $ 34 Total derivatives at fair value (j) $ 55 $ 568 $ 136 $ 410 Total $ 3,931 $ 1,018 $ 14,901 $ 913 (a) Fair value hierarchy levels are defined in Note 7. Unless otherwise noted, financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities. (b) Based on quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of December 29, 2018 , these debt securities were primarily classified as cash equivalents. As of December 30, 2017 , $5.8 billion and $8.7 billion of debt securities were classified as cash equivalents and short-term investments, respectively. The decrease primarily reflects net maturities and sales of debt securities with maturities greater than three months. Refer to the cash flow statement and “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion on use of these proceeds. (c) Based on the price of index funds. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability. (d) Based primarily on the price of our common stock. (e) Based on the fair value of investments corresponding to employees’ investment elections. (f) Based on LIBOR forward rates. (g) Based on recently reported market transactions of spot and forward rates. (h) Based on quoted contract prices on futures exchange markets. (i) Based on recently reported market transactions of swap arrangements. (j) Derivative assets and liabilities are presented on a gross basis on our balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on the balance sheet as of December 29, 2018 and December 30, 2017 were not material. Collateral received or posted against any of our asset or liability positions were not material. Collateral posted is classified as restricted cash. See Note 13 for further information. |
Effective Portion Of Pre-Tax (Gains)/Losses On Derivative Instruments | Losses/(gains) on our hedging instruments are categorized as follows: Fair Value/Non- designated Hedges Cash Flow and Net Investment Hedges Losses/(Gains) Recognized in Income Statement (a) Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement (b) 2018 2017 2018 2017 2018 2017 Foreign exchange $ 9 $ (15 ) $ (52 ) $ 62 $ (8 ) $ 10 Interest rate 53 101 110 (195 ) 119 (184 ) Commodity 117 (48 ) 3 3 — 3 Net investment — — (77 ) 157 — — Total $ 179 $ 38 $ (16 ) $ 27 $ 111 $ (171 ) (a) Foreign exchange derivative losses/gains are primarily included in selling, general and administrative expenses. Interest rate derivative losses/gains are primarily from fair value hedges and are included in interest expense. These losses/gains are substantially offset by decreases/increases in the value of the underlying debt, which are also included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. (b) Foreign exchange derivative losses/gains are primarily included in cost of sales. Interest rate derivative losses/gains are included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. Based on current market conditions, we expect to reclassify net gains of $5 million related to our cash flow hedges from accumulated other comprehensive loss into net income during the next 12 months. |
Net Income Attributable to Pe_2
Net Income Attributable to PepsiCo per Common Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Net Income Attributable To PepsiCo Per Common Share | The computations of basic and diluted net income attributable to PepsiCo per common share are as follows: 2018 2017 2016 Income Shares (a) Income Shares (a) Income Shares (a) Net income attributable to PepsiCo $ 12,515 $ 4,857 $ 6,329 Preferred shares: Dividends — — (1 ) Redemption premium (2 ) (4 ) (5 ) Net income available for PepsiCo common shareholders $ 12,513 1,415 $ 4,853 1,425 $ 6,323 1,439 Basic net income attributable to PepsiCo per common share $ 8.84 $ 3.40 $ 4.39 Net income available for PepsiCo common shareholders $ 12,513 1,415 $ 4,853 1,425 $ 6,323 1,439 Dilutive securities: Stock options, RSUs, PSUs, PEPunits and Other — 10 — 12 1 12 Employee stock ownership plan (ESOP) convertible preferred stock 2 — 4 1 5 1 Diluted $ 12,515 1,425 $ 4,857 1,438 $ 6,329 1,452 Diluted net income attributable to PepsiCo per common share $ 8.78 $ 3.38 $ 4.36 (a) Weighted-average common shares outstanding (in millions). Out-of-the-money options excluded from the calculation of diluted earnings per common share are as follows: 2018 2017 2016 Out-of-the-money options (a) 0.7 0.4 0.7 Average exercise price per option $ 109.83 $ 110.12 $ 99.98 (a) In millions. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss Attributable to Pepsico (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income | The changes in the balances of each component of accumulated other comprehensive loss attributable to PepsiCo are as follows: Currency Translation Adjustment Cash Flow Hedges Pension and Retiree Medical Available-For-Sale Securities Other Accumulated Other Comprehensive Loss Attributable to PepsiCo Balance as of December 26, 2015 (a) $ (11,080 ) $ 37 $ (2,329 ) $ 88 $ (35 ) $ (13,319 ) Other comprehensive (loss)/income before reclassifications (313 ) (74 ) (750 ) (43 ) — (1,180 ) Amounts reclassified from accumulated other comprehensive loss — 150 407 — — 557 Net other comprehensive (loss)/income (313 ) 76 (343 ) (43 ) — (623 ) Tax amounts 7 (30 ) 27 19 — 23 Balance as of December 31, 2016 (a) (11,386 ) 83 (2,645 ) 64 (35 ) (13,919 ) Other comprehensive (loss)/income before reclassifications (b) 1,049 130 (375 ) 25 — 829 Amounts reclassified from accumulated other comprehensive loss — (171 ) 158 (99 ) — (112 ) Net other comprehensive (loss)/income 1,049 (41 ) (217 ) (74 ) — 717 Tax amounts 60 5 58 6 16 145 Balance as of December 30, 2017 (a) (10,277 ) 47 (2,804 ) (4 ) (19 ) (13,057 ) Other comprehensive (loss)/income before reclassifications (c) (1,664 ) (61 ) (813 ) 6 — (2,532 ) Amounts reclassified from accumulated other comprehensive loss 44 111 218 — — 373 Net other comprehensive (loss)/income (1,620 ) 50 (595 ) 6 — (2,159 ) Tax amounts (21 ) (10 ) 128 — — 97 Balance as of December 29, 2018 (a) $ (11,918 ) $ 87 $ (3,271 ) $ 2 $ (19 ) $ (15,119 ) (a) Pension and retiree medical amounts are net of taxes of $1,253 million as of December 26, 2015, $1,280 million as of December 31, 2016, $1,338 million as of December 30, 2017 and $1,466 million as of December 29, 2018. (b) Currency translation adjustment primarily reflects the appreciation of the euro, Russian ruble, Pound sterling and Canadian dollar. (c) Currency translation adjustment primarily reflects the depreciation of the Russian ruble, Canadian dollar, Pound sterling and Brazilian real. |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table summarizes the reclassifications from accumulated other comprehensive loss to the income statement: Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Income Statement 2018 2017 2016 Currency translation: Divestitures $ 44 $ — $ — Selling, general and administrative expenses Cash flow hedges: Foreign exchange contracts $ (1 ) $ — $ 2 Net revenue Foreign exchange contracts (7 ) 10 (46 ) Cost of sales Interest rate derivatives 119 (184 ) 187 Interest expense Commodity contracts 3 4 3 Cost of sales Commodity contracts (3 ) (1 ) 4 Selling, general and administrative expenses Net losses/(gains) before tax 111 (171 ) 150 Tax amounts (27 ) 64 (63 ) Net losses/(gains) after tax $ 84 $ (107 ) $ 87 Pension and retiree medical items: Amortization of net prior service credit $ (17 ) $ (24 ) $ (39 ) Other pension and retiree medical benefits income/(expense) Amortization of net losses 216 167 209 Other pension and retiree medical benefits income/(expense) Settlement/curtailment 19 15 237 Other pension and retiree medical benefits income/(expense) Net losses before tax 218 158 407 Tax amounts (45 ) (44 ) (144 ) Net losses after tax $ 173 $ 114 $ 263 Available-for-sale securities: Sale of Britvic securities $ — $ (99 ) $ — Selling, general and administrative expenses Tax amount — 10 — Net gain after tax $ — $ (89 ) $ — Total net losses/(gains) reclassified for the year, net of tax $ 301 $ (82 ) $ 350 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Supplemental Financial Information [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Balance Sheet 2018 2017 2016 Accounts and notes receivable Trade receivables $ 6,079 $ 5,956 Other receivables 1,164 1,197 7,243 7,153 Allowance, beginning of year 129 134 $ 130 Net amounts charged to expense 16 26 37 Deductions (a) (33 ) (35 ) (30 ) Other (b) (11 ) 4 (3 ) Allowance, end of year 101 129 $ 134 Net receivables $ 7,142 $ 7,024 Inventories (c) Raw materials and packaging $ 1,312 $ 1,344 Work-in-process 178 167 Finished goods 1,638 1,436 $ 3,128 $ 2,947 Other assets Noncurrent notes and accounts receivable $ 86 $ 59 Deferred marketplace spending 112 134 Pension plans (d) 269 374 Other 293 346 $ 760 $ 913 Accounts payable and other current liabilities Accounts payable $ 7,213 $ 6,727 Accrued marketplace spending 2,541 2,390 Accrued compensation and benefits 1,755 1,785 Dividends payable 1,329 1,161 SodaStream consideration payable 1,997 — Other current liabilities 3,277 2,954 $ 18,112 $ 15,017 (a) Includes accounts written off. (b) Includes adjustments related primarily to currency translation and other adjustments. (c) Approximately 5% of the inventory cost in 2018 and 2017 were computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material. (d) See Note 7 for additional information regarding our pension plans. Statement of Cash Flows 2018 2017 2016 Interest paid (a) $ 1,388 $ 1,123 $ 1,102 Income taxes paid, net of refunds (b) $ 1,203 $ 1,962 $ 1,393 (a) In 2018 and 2016, excludes the premiums paid in accordance with the debt transactions discussed in Note 8. (b) In 2018, includes tax payments of $115 million related to the TCJ Act. Lease Information 2018 2017 2016 Rent expense $ 771 $ 742 $ 701 Minimum lease payments under non-cancelable operating leases by period Operating Lease Payments 2019 $ 459 2020 406 2021 294 2022 210 2023 161 2024 and beyond 310 Total minimum operating lease payments $ 1,840 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Restricted Cash [Abstract] | |
Restricted Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within the balance sheet to the same items as reported in the cash flow statement. 2018 2017 Cash and cash equivalents $ 8,721 $ 10,610 Restricted cash (a) 1,997 — Restricted cash included in other assets (b) 51 47 Total cash and cash equivalents and restricted cash $ 10,769 $ 10,657 |
Basis of Presentation and Our_3
Basis of Presentation and Our Divisions (Narrative) (Details) | Dec. 29, 2018country |
Basis Of Presentation And Our Divisions [Line Items] | |
Manufacture and sell in (number of countries) | 200 |
Maximum | |
Basis Of Presentation And Our Divisions [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% |
Basis of Presentation and Our_4
Basis of Presentation and Our Divisions (Schedule of Quarterly Reporting) (Details) | 3 Months Ended | 4 Months Ended | |||
Sep. 08, 2018 | Jun. 16, 2018 | Mar. 24, 2018 | Dec. 29, 2018 | Dec. 31, 2016 | |
U.S. and Canada | |||||
Segment Reporting Information [Line Items] | |||||
Quarterly reporting calendar, period | P12W | P12W | P12W | P16W | P17W |
International Divisions | |||||
Segment Reporting Information [Line Items] | |||||
Quarterly reporting calendar, period | June, July and August | March, April and May | January, February | September, October, November and December |
Basis of Presentation and Our_5
Basis of Presentation and Our Divisions Basis of Presentation and Our Divisions (Share-Based Compensation Expense) (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Frito Lay North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Share Based Compensation Percentage Allocation by Division | 13.00% | 13.00% | 14.00% |
Quaker Foods North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Share Based Compensation Percentage Allocation by Division | 1.00% | 1.00% | 2.00% |
North America Beverages [Member] | |||
Segment Reporting Information [Line Items] | |||
Share Based Compensation Percentage Allocation by Division | 18.00% | 18.00% | 22.00% |
Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Share Based Compensation Percentage Allocation by Division | 8.00% | 7.00% | 7.00% |
Europe Sub-Saharan Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Share Based Compensation Percentage Allocation by Division | 9.00% | 9.00% | 11.00% |
Asia, Middle East and North Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Share Based Compensation Percentage Allocation by Division | 8.00% | 9.00% | 10.00% |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Share Based Compensation Percentage Allocation by Division | 43.00% | 43.00% | 34.00% |
Basis of Presentation and Our_6
Basis of Presentation and Our Divisions (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 64,661 | [1] | $ 63,525 | $ 62,799 | |||
Operating Profit | [2] | $ 10,110 | 10,276 | [3] | 9,804 | [3] | |
Disaggregation of Net Revenue - Beverages | 50.00% | ||||||
Disaggregation of Net Revenue - Food/Snack | 50.00% | ||||||
Disaggregation of beverage revenue from company-owned bottlers | 40.00% | ||||||
Frito Lay North America [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 16,346 | [1] | 15,798 | 15,549 | |||
Operating Profit | [2] | 5,008 | 4,793 | [3] | 4,612 | [3] | |
Quaker Foods North America [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 2,465 | [1] | 2,503 | 2,564 | |||
Operating Profit | [2] | 637 | 640 | [3] | 649 | [3] | |
North America Beverages [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 21,072 | [1] | 20,936 | 21,312 | |||
Operating Profit | [2] | 2,276 | 2,700 | [3] | 2,947 | [3] | |
Latin America [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 7,354 | [1] | 7,208 | 6,820 | |||
Operating Profit | [2] | 1,049 | 924 | [3] | 904 | [3] | |
Europe Sub-Saharan Africa [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 11,523 | [1] | 11,050 | 10,216 | |||
Operating Profit | [2] | $ 1,364 | 1,316 | [3] | 1,061 | [3] | |
Disaggregation of Net Revenue - Beverages | 50.00% | ||||||
Disaggregation of Net Revenue - Food/Snack | 50.00% | ||||||
Asia, Middle East and North Africa [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 5,901 | [1] | 6,030 | 6,338 | |||
Operating Profit | [2] | $ 1,172 | 1,073 | [3] | 619 | [3] | |
Disaggregation of Net Revenue - Beverages | 35.00% | ||||||
Disaggregation of Net Revenue - Food/Snack | 65.00% | ||||||
Total Division | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating Profit | [2] | $ 11,506 | 11,446 | [3] | 10,792 | [3] | |
Corporate Unallocated [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 0 | [1] | 0 | 0 | |||
Operating Profit | [2] | $ (1,396) | $ (1,170) | [3] | $ (988) | [3] | |
[1] | Our primary performance obligation is the distribution and sales of beverage products and food and snack products to our customers, each comprising approximately 50% of our consolidated net revenue. Internationally, our Latin America segment is predominantly a food and snack business, ESSA’s beverage business and food and snack business are each approximately 50% of the segment’s net revenue and AMENA’s beverage business and food and snack business are approximately 35% and 65%, respectively, of the segment’s net revenue. Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our NAB and ESSA segments, is approximately 40% of our consolidated net revenue. 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. See Note 2 for additional information. | ||||||
[2] | For further unaudited information on certain items that impacted our financial performance, see “Item 6. Selected Financial Data.” | ||||||
[3] | Reflects the retrospective adoption of guidance requiring the presentation of non-service cost components of net periodic benefit cost below operating profit. See Note 2 for additional information. |
Basis of Presentation and Our_7
Basis of Presentation and Our Divisions (Segment Reporting Information by Total Assets and Capital Spending) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Total Assets | $ 77,648 | $ 79,804 | ||
Capital Spending | 3,282 | 2,969 | $ 3,040 | |
Frito Lay North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 6,577 | 5,979 | ||
Capital Spending | 840 | 665 | 801 | |
Quaker Foods North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 870 | 804 | ||
Capital Spending | 53 | 44 | 41 | |
North America Beverages [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 29,878 | 28,592 | ||
Capital Spending | 945 | 904 | 769 | |
Latin America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 6,458 | 4,976 | ||
Capital Spending | 492 | 481 | 507 | |
Europe Sub-Saharan Africa [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | [1] | 17,410 | 13,556 | |
Capital Spending | [1] | 479 | 481 | 439 |
Asia, Middle East and North Africa [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 6,433 | 5,668 | ||
Capital Spending | 323 | 308 | 381 | |
Total Division | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 67,626 | 59,575 | ||
Capital Spending | 3,132 | 2,883 | 2,938 | |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | [2] | 10,022 | 20,229 | |
Capital Spending | [2] | $ 150 | $ 86 | $ 102 |
[1] | In 2018, the change in assets was primarily related to our acquisition of SodaStream. | |||
[2] | 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 2018, the change in assets was primarily due to a decrease in short-term investments and cash and cash equivalents. Refer to the cash flow statement for additional information. |
Basis of Presentation and Our_8
Basis of Presentation and Our Divisions (Segment Reporting Information by Amortization of Intangible Assets and Depreciation and Other Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Amortization of Intangible Assets | $ 69 | $ 68 | $ 70 |
Depreciation and Other Amortization | 2,330 | 2,301 | 2,298 |
Frito Lay North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of Intangible Assets | 7 | 7 | 7 |
Depreciation and Other Amortization | 457 | 449 | 435 |
Quaker Foods North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of Intangible Assets | 0 | 0 | 0 |
Depreciation and Other Amortization | 45 | 47 | 50 |
North America Beverages [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of Intangible Assets | 31 | 31 | 37 |
Depreciation and Other Amortization | 821 | 780 | 809 |
Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of Intangible Assets | 5 | 5 | 5 |
Depreciation and Other Amortization | 253 | 245 | 211 |
Europe Sub-Saharan Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of Intangible Assets | 23 | 22 | 18 |
Depreciation and Other Amortization | 331 | 329 | 321 |
Asia, Middle East and North Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of Intangible Assets | 3 | 3 | 3 |
Depreciation and Other Amortization | 237 | 257 | 294 |
Total Division | |||
Segment Reporting Information [Line Items] | |||
Amortization of Intangible Assets | 69 | 68 | 70 |
Depreciation and Other Amortization | 2,144 | 2,107 | 2,120 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of Intangible Assets | 0 | 0 | 0 |
Depreciation and Other Amortization | $ 186 | $ 194 | $ 178 |
Basis of Presentation and Our_9
Basis of Presentation and Our Divisions (Segment Reporting Information by Net Revenue and Long-Lived Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 64,661 | [1] | $ 63,525 | $ 62,799 | ||
Long-Lived Assets | [2] | 50,631 | 47,864 | |||
UNITED STATES | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 37,148 | 36,546 | 36,732 | |||
Long-Lived Assets | [2] | 29,169 | 28,418 | |||
MEXICO | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 3,878 | 3,650 | 3,431 | |||
Long-Lived Assets | [2] | 1,404 | 1,205 | |||
Russia | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 3,191 | 3,232 | [3] | 2,648 | ||
Long-Lived Assets | [2] | 3,926 | [3] | 4,708 | ||
CANADA | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 2,736 | 2,691 | 2,692 | |||
Long-Lived Assets | [2] | 2,565 | 2,739 | |||
UNITED KINGDOM | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,743 | 1,650 | 1,737 | |||
Long-Lived Assets | [2] | 759 | 817 | |||
BRAZIL | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,335 | 1,427 | 1,305 | |||
Long-Lived Assets | [2] | 639 | 777 | |||
All Other Countries [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 14,630 | 14,329 | $ 14,254 | |||
Long-Lived Assets | [2] | $ 12,169 | [4] | $ 9,200 | ||
[1] | Our primary performance obligation is the distribution and sales of beverage products and food and snack products to our customers, each comprising approximately 50% of our consolidated net revenue. Internationally, our Latin America segment is predominantly a food and snack business, ESSA’s beverage business and food and snack business are each approximately 50% of the segment’s net revenue and AMENA’s beverage business and food and snack business are approximately 35% and 65%, respectively, of the segment’s net revenue. Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our NAB and ESSA segments, is approximately 40% of our consolidated net revenue. 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. See Note 2 for additional information. | |||||
[2] | Long-lived assets represent property, plant and equipment, indefinite-lived intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used. | |||||
[3] | Change in net revenue in 2017 primarily reflects appreciation of the Russian ruble. Change in long-lived assets in 2018 primarily reflects depreciation of the Russian ruble. | |||||
[4] | Change in long-lived assets in 2018 primarily related to our acquisition of SodaStream. |
Our Significant Accounting Po_5
Our Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized Computer Software, Amortization | $ 204 | $ 224 | $ 214 |
Capitalized Computer Software, Net | $ 577 | $ 686 | |
Minimum | Software | |||
Property, Plant and Equipment [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Maximum | Software | |||
Property, Plant and Equipment [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Our Significant Accounting Po_6
Our Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Capitalized Computer Software, Net | $ 577 | $ 686 | |
Capitalized Computer Software, Amortization | 204 | 224 | $ 214 |
Shipping and handling expenses | 10,500 | 9,900 | 9,700 |
Research and development costs | 680 | 737 | 760 |
Amount of prepaid incentive arrangements | 218 | 262 | |
Advertising and other marketing activities | 4,200 | 4,100 | 4,200 |
Advertising expenses | 2,600 | 2,400 | $ 2,500 |
Deferred advertising costs | $ 47 | $ 46 |
Our Significant Accounting Po_7
Our Significant Accounting Policies (Concentration of Credit Risk) (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Customer Concentration Risk | Wal-Mart | Revenue, Net | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 13.00% |
Our Significant Accounting Po_8
Our Significant Accounting Policies Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 242 | ||||
New Accounting Pronouncement, Effect of Change on Operating Profit, Cost of Sales | $ 11 | 13 | |||
New Accounting Pronouncement, Effect of Change on Operating Profit, SG&A | 222 | 32 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 233 | $ 19 | |||
Sales, use, value-added and certain excise taxes assessed by governmental authorities on revenue-producing transactions that were recognized in net revenue and cost of sales | $ 75 | ||||
Estimated future increase to assets and liabilities | 2.00% | ||||
Frito Lay North America [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 13 | 1 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ (30) | [1] | $ (47) | [2] | |
Quaker Foods North America [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 2 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ (2) | [1] | $ (4) | [2] | |
North America Beverages [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 11 | 2 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ (7) | [1] | $ (12) | [2] | |
Latin America [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 7 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ 16 | [1] | $ 17 | [2] | |
Corporate Unallocated [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 33 | 2 | |||
Europe Sub-Saharan Africa [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ (38) | [1] | $ (47) | [2] | |
Asia, Middle East and North Africa [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 0 | [1] | 0 | [2] | |
Corporate, Non-Segment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ (172) | [1] | $ 112 | [2],[3] | |
Total Division | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 66 | 5 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ (233) | [1] | $ 19 | [2] | |
Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
income tax effects of intercompany transfers of assets, other than inventory | $ 8 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 137 | ||||
[1] | Includes restructuring charges of $66 million, including $13 million in our FLNA segment, $2 million in our QFNA segment, $11 million in our NAB segment, $7 million in our Latin America segment and $33 million in corporate unallocated expenses. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. | ||||
[2] | Includes restructuring charges of $5 million, including $1 million in our FLNA segment, $2 million in our NAB segment and $2 million in corporate unallocated expenses. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. | ||||
[3] | eflects a settlement charge of $242 million related to a group annuity contract purchase. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Restructuring, Impairment and_3
Restructuring, Impairment and Integration Charges (Summary of Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Settlement and Impairment Provisions | $ 308 | $ 295 | $ 160 |
Other Productivity Initiatives | 8 | 16 | 12 |
Total restructuring and impairment charges and other productivity initiatives | 316 | 311 | 172 |
2019 Productivity Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Settlement and Impairment Provisions | 138 | 0 | 0 |
2014 Productivity Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Settlement and Impairment Provisions | $ 170 | $ 295 | $ 160 |
Restructuring, Impairment and_4
Restructuring, Impairment and Integration Charges Restructuring, Impairment and Integration Charges (Summary of 2019 Productivity Plan Charges) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Cost of sales | $ 29,381 | $ 28,796 | $ 28,222 | |
Selling, general and administrative expenses | 25,170 | 24,453 | 24,773 | |
Restructuring, Settlement and Impairment Provisions | 308 | 295 | 160 | |
2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 138 | $ 0 | $ 0 | |
Restructuring, Settlement and Impairment Provisions, less Other pension and retiree medical benefits expense | 103 | |||
Restructuring, Settlement and Impairment Provisions, After Tax | $ 109 | |||
Restructuring, Settlement and Impairment Provisions, Net of Tax, Per Share Amount | $ 0.08 | |||
Restructuring Reserve, Settled without Cash | $ (32) | |||
Restructuring Reserve | 106 | |||
2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost of sales | 3 | |||
Selling, general and administrative expenses | 100 | |||
Frito Lay North America [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 31 | |||
Quaker Foods North America [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 5 | |||
North America Beverages [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 40 | |||
Latin America [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 9 | |||
Europe Sub-Saharan Africa [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 8 | |||
Asia, Middle East and North Africa [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 3 | |||
Corporate, Non-Segment [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 7 | |||
Pension Costs [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 35 | |||
Employee Severance [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 137 | |||
Restructuring Reserve, Settled without Cash | (32) | |||
Restructuring Reserve | 105 | |||
Asset Impairment [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | 0 | |||
Restructuring Reserve, Settled without Cash | 0 | |||
Restructuring Reserve | 0 | |||
Other Restructuring [Member] | 2019 Productivity Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, Settlement and Impairment Provisions | [1] | 1 | ||
Restructuring Reserve, Settled without Cash | [1] | 0 | ||
Restructuring Reserve | [1] | $ 1 | ||
[1] | Includes other costs associated with the implementation of our initiatives, including consulting and other professional fees. |
Restructuring, Impairment and_5
Restructuring, Impairment and Integration Charges Restructuring, Impairment and Integration Charges (Summary of 2014 Productivity Plan Charges) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | ||||
Restructuring Cost and Reserve [Line Items] | |||||||
Selling, general and administrative expenses | $ 25,170 | $ 24,453 | $ 24,773 | ||||
Restructuring, Settlement and Impairment Provisions | 308 | 295 | 160 | ||||
Payments for Restructuring | (255) | (113) | (125) | ||||
2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Selling, general and administrative expenses | 169 | 229 | 155 | ||||
2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 170 | 295 | 160 | ||||
Restructuring, Settlement and Impairment Provisions, After Tax | $ 143 | $ 224 | $ 134 | ||||
Restructuring, Settlement and Impairment Provisions, Net of Tax, Per Share Amount | $ 0.10 | $ 0.16 | $ 0.09 | ||||
Restructuring and Related Cost, Cost Incurred to Date | $ 1,204 | ||||||
Payments for Restructuring | (255) | [1] | $ (113) | $ (95) | |||
Restructuring Reserve, Settled without Cash | (27) | (52) | (50) | ||||
Restructuring Reserve | 114 | 226 | 96 | $ 81 | |||
Frito Lay North America [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 8 | 67 | 13 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 171 | ||||||
Quaker Foods North America [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 2 | 11 | 1 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 34 | ||||||
North America Beverages [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 51 | 54 | 35 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 352 | ||||||
Latin America [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 30 | 63 | 27 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 182 | ||||||
Europe Sub-Saharan Africa [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 55 | 53 | 60 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 282 | ||||||
Asia, Middle East and North Africa [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 25 | (3) | [2] | 14 | |||
Restructuring and Related Cost, Cost Incurred to Date | 69 | ||||||
Corporate, Non-Segment [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | (1) | [3] | 50 | 10 | |||
Restructuring and Related Cost, Cost Incurred to Date | 114 | ||||||
Pension Costs [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 1 | 66 | 5 | ||||
Employee Severance [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 86 | 280 | 88 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 713 | ||||||
Payments for Restructuring | (203) | [1] | (91) | (46) | |||
Restructuring Reserve, Settled without Cash | (4) | (65) | (15) | ||||
Restructuring Reserve | 91 | 212 | 88 | 61 | |||
Asset Impairment [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 28 | 21 | 36 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 182 | ||||||
Payments for Restructuring | 0 | 0 | 0 | ||||
Restructuring Reserve, Settled without Cash | (28) | (21) | (36) | ||||
Restructuring Reserve | 0 | 0 | 0 | 0 | |||
Other Restructuring [Member] | 2014 Productivity Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 56 | (6) | [4] | 36 | |||
Restructuring and Related Cost, Cost Incurred to Date | [5] | 309 | |||||
Payments for Restructuring | (52) | (22) | (49) | ||||
Restructuring Reserve, Settled without Cash | 5 | 34 | 1 | ||||
Restructuring Reserve | $ 23 | $ 14 | $ 8 | $ 20 | |||
[1] | Excludes cash expenditures of $11 million reported in the cash flow statement in pension and retiree medical plan contributions. | ||||||
[2] | In 2017, income amount primarily reflects a gain on the sale of property, plant and equipment. | ||||||
[3] | In 2018, income amount primarily relates to other pension and retiree medical benefits. | ||||||
[4] | Income amount represents adjustments for changes in estimates and a gain on the sale of property, plant, and equipment. | ||||||
[5] | Includes other costs associated with the implementation of our initiatives, including certain consulting and contract termination costs. |
Restructuring, Impairment and_6
Restructuring, Impairment and Integration Charges Other Productivity Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |||
Other Productivity Initiatives | $ 8 | $ 16 | $ 12 |
Property, Plant and Equipment_3
Property, Plant and Equipment and Intangible Assets (Schedule of Property, Plant and Equipment and Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Goodwill and Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | $ (1,018) | $ 688 | |
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | 40,164 | 39,106 | |
Accumulated depreciation | (22,575) | (21,866) | |
Property, Plant and Equipment, net | 17,589 | 17,240 | |
Depreciation | 2,241 | 2,227 | $ 2,217 |
Amortizable intangible assets, net: | |||
Amortizable intangible assets, gross | 3,209 | 2,807 | |
Accumulated amortization | (1,565) | (1,539) | |
Amortizable intangible assets, net | 1,644 | 1,268 | |
Amortization of intangible assets | 69 | 68 | 70 |
Land [Member] | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | $ 1,078 | 1,148 | |
Land [Member] | Minimum | |||
Property, plant and equipment, net: | |||
Average Useful Life (Years) | 0 years | ||
Land [Member] | Maximum | |||
Property, plant and equipment, net: | |||
Average Useful Life (Years) | 0 years | ||
Buildings And Improvements | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | $ 8,941 | 8,796 | |
Buildings And Improvements | Minimum | |||
Property, plant and equipment, net: | |||
Average Useful Life (Years) | 15 years | ||
Buildings And Improvements | Maximum | |||
Property, plant and equipment, net: | |||
Average Useful Life (Years) | 44 years | ||
Machinery And Equipment, Including Fleet And Software | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | $ 27,715 | 27,018 | |
Machinery And Equipment, Including Fleet And Software | Minimum | |||
Property, plant and equipment, net: | |||
Average Useful Life (Years) | 5 years | ||
Machinery And Equipment, Including Fleet And Software | Maximum | |||
Property, plant and equipment, net: | |||
Average Useful Life (Years) | 15 years | ||
Construction In Progress | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | $ 2,430 | 2,144 | |
Acquired Franchise Rights | |||
Amortizable intangible assets, net: | |||
Amortizable intangible assets, gross | 838 | 858 | |
Accumulated amortization | (140) | (128) | |
Amortizable intangible assets, net | $ 698 | 730 | |
Acquired Franchise Rights | Minimum | |||
Amortizable intangible assets, net: | |||
Average Useful Life (Years) | 56 years | ||
Acquired Franchise Rights | Maximum | |||
Amortizable intangible assets, net: | |||
Average Useful Life (Years) | 60 years | ||
Reacquired Franchise Rights | |||
Amortizable intangible assets, net: | |||
Amortizable intangible assets, gross | $ 106 | 106 | |
Accumulated amortization | (105) | (104) | |
Amortizable intangible assets, net | $ 1 | 2 | |
Reacquired Franchise Rights | Minimum | |||
Amortizable intangible assets, net: | |||
Average Useful Life (Years) | 5 years | ||
Reacquired Franchise Rights | Maximum | |||
Amortizable intangible assets, net: | |||
Average Useful Life (Years) | 14 years | ||
Other Identifiable Intangibles | |||
Amortizable intangible assets, net: | |||
Amortizable intangible assets, gross | $ 959 | 521 | |
Accumulated amortization | (288) | (281) | |
Amortizable intangible assets, net | $ 671 | 240 | |
Other Identifiable Intangibles | Minimum | |||
Amortizable intangible assets, net: | |||
Average Useful Life (Years) | 10 years | ||
Other Identifiable Intangibles | Maximum | |||
Amortizable intangible assets, net: | |||
Average Useful Life (Years) | 24 years | ||
Europe Sub-Saharan Africa [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | $ (777) | 534 | |
Amortizable intangible assets, net: | |||
Amortization of intangible assets | 23 | 22 | 18 |
Asia, Middle East and North Africa [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | (44) | 24 | |
Amortizable intangible assets, net: | |||
Amortization of intangible assets | 3 | 3 | $ 3 |
Goodwill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | (499) | 314 | |
Goodwill [Member] | Europe Sub-Saharan Africa [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | (367) | 275 | |
Goodwill [Member] | Asia, Middle East and North Africa [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | $ (34) | $ 16 |
Property, Plant and Equipment_4
Property, Plant and Equipment and Intangible Assets (Future Amortization) (Details) $ in Millions | Dec. 29, 2018USD ($) |
Property, Plant And Equipment And Intangible Assets [Abstract] | |
2,019 | $ 89 |
2,020 | 89 |
2,021 | 87 |
2,022 | 85 |
2,023 | $ 83 |
Property, Plant and Equipment_5
Property, Plant and Equipment and Intangible Assets (Schedule of Change in Book Value of Nonamortizable Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | $ 28,989 | $ 27,314 | $ 26,626 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 2,693 | ||
Finite-Lived Intangible Assets, Net | 1,644 | 1,268 | |
Finite-Lived Intangible Assets, Gross | 3,209 | 2,807 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,565 | 1,539 | |
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (1,018) | 688 | |
Goodwill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 14,808 | 14,744 | 14,430 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 563 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (499) | 314 | |
Reacquired Franchise Rights | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 7,555 | 7,675 | 7,552 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | (1) | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (119) | 123 | |
Acquired Franchise Rights | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 1,671 | 1,720 | 1,696 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | (25) | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (24) | 24 | |
Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 4,955 | 3,175 | 2,948 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 2,156 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (376) | 227 | |
Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Finite-Lived Intangible Assets, Net | 274 | 296 | |
Finite-Lived Intangible Assets, Gross | 1,306 | 1,322 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,032 | 1,026 | |
Frito Lay North America [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 458 | 305 | 293 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 166 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (13) | 12 | |
Frito Lay North America [Member] | Goodwill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 297 | 280 | 270 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 28 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (11) | 10 | |
Frito Lay North America [Member] | Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 161 | 25 | 23 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 138 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (2) | 2 | |
Quaker Foods North America [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 209 | 175 | 175 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 34 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | 0 | 0 | |
Quaker Foods North America [Member] | Goodwill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 184 | 175 | 175 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 9 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | 0 | 0 | |
Quaker Foods North America [Member] | Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 25 | ||
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 25 | ||
North America Beverages [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 18,734 | 18,858 | 18,733 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (124) | 125 | |
North America Beverages [Member] | Goodwill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 9,813 | 9,854 | 9,843 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (41) | 11 | |
North America Beverages [Member] | Reacquired Franchise Rights | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 7,058 | 7,126 | 7,064 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (68) | 62 | |
North America Beverages [Member] | Acquired Franchise Rights | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 1,510 | 1,525 | 1,512 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (15) | 13 | |
North America Beverages [Member] | Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 353 | 353 | 314 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | 39 | ||
Latin America [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 636 | 696 | 703 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (60) | (7) | |
Latin America [Member] | Goodwill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 509 | 555 | 553 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (46) | 2 | |
Latin America [Member] | Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 127 | 141 | 150 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (14) | (9) | |
Europe Sub-Saharan Africa [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 8,457 | 6,741 | 6,207 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 2,493 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (777) | 534 | |
Europe Sub-Saharan Africa [Member] | Goodwill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 3,611 | 3,452 | 3,177 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 526 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (367) | 275 | |
Europe Sub-Saharan Africa [Member] | Reacquired Franchise Rights | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 497 | 549 | 488 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | (1) | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (51) | 61 | |
Europe Sub-Saharan Africa [Member] | Acquired Franchise Rights | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 161 | 195 | 184 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | (25) | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (9) | 11 | |
Europe Sub-Saharan Africa [Member] | Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 4,188 | 2,545 | 2,358 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 1,993 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (350) | 187 | |
Asia, Middle East and North Africa [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 495 | 539 | 515 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (44) | 24 | |
Asia, Middle East and North Africa [Member] | Goodwill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 394 | 428 | 412 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | (34) | 16 | |
Asia, Middle East and North Africa [Member] | Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Indefinite-Lived Intangible Assets | 101 | 111 | $ 103 |
Goodwill and Indefinite-lived Intangible Assets, Acquired (Divested) During Period | 0 | ||
Intangible Assets (Including Goodwill) [Roll Forward] | |||
Translation and Other | $ (10) | $ 8 | |
Minimum | Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Maximum | Brands [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 40 years |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Goodwill and Intangible Assets | $ 985 | $ 0 | |
International Audit | $ 364 | ||
International Audit, per share | $ 0.26 | ||
Federal Audit Settlement | $ 353 | ||
Federal Audit Settlement, Net of tax, Per share amount | $ 0.24 | ||
Federal Statutory Tax Rate, Pre TCJ Act | 35.00% | ||
Federal Statutory Tax Rate, Post TCJ Act | 0.00% | ||
Net tax (benefit)/expense related to the TCJ Act | $ (28) | $ 2,451 | $ 0 |
Net tax (benefit)/expense related to the TCJ Act per share | $ 1.70 | ||
Total gross amount of reserves for income taxes | 1,400 | ||
Interest accrued | 179 | $ 283 | |
Interest accrued recognized | (64) | $ 89 | |
Operating loss carryforwards | 24,900 | ||
Income tax undistributed international earnings | 24,000 | ||
Mandatory OneTime Repatriation TCJ ACT | 4,000 | ||
Remeasurement of Deferred Taxes TCJ Act | 1,500 | ||
Additional Transition Tax | $ 28 | ||
Additional Transition tax per share | $ 0.02 | ||
Foreign Earnings Repatriated | $ 20,400 | ||
Effective Income Tax Rate Reconciliation, Percent | (36.70%) | 48.90% | 25.40% |
undistributed earnings of foreign subsidiaries, post distribution | $ 24,000 | ||
Transition tax liability | 3,800 | ||
Transition tax, expected payments | 400 | ||
International reorganization DTA | $ 4,300 | ||
international Reorganization DTA, per share | $ 3.05 | ||
International Reorganization Other DTA | $ 4,400 | ||
International Reorganization Other DTA, amortization period | 15 years | ||
Expire in 2016 | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | $ 200 | ||
Expire Between 2017 and 2035 Years | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 20,500 | ||
Carried Forward Indefinitely | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | $ 4,200 |
Income Taxes (Income Taxes) (De
Income Taxes (Income Taxes) (Details) $ in Millions | 12 Months Ended | |||||
Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Income Tax Contingency [Line Items] | ||||||
Mandatory OneTime Repatriation TCJ ACT | $ 4,000 | |||||
Federal Statutory Tax Rate, Pre TCJ Act | 35.00% | |||||
Income before income taxes in U.S | 3,864 | $ 3,452 | $ 2,630 | |||
Income before income taxes in Foreign | 5,325 | 6,150 | 5,923 | |||
Income before income taxes | 9,189 | 9,602 | 8,553 | |||
Provision for income taxes | ||||||
Current: U.S. Federal | 437 | 4,925 | 1,219 | |||
Current: Foreign | 378 | 724 | 824 | |||
Current: State | 63 | 136 | 77 | |||
Provision for income taxes, Current total | 878 | 5,785 | 2,120 | |||
Deferred: U.S. Federal | 140 | (1,159) | 109 | |||
Deferred: Foreign | (4,379) | (9) | (33) | |||
Deferred: State | (9) | 77 | (22) | |||
Provision for income taxes, Deferred total | (4,248) | (1,091) | 54 | |||
Provision for income taxes | $ (3,370) | $ 4,694 | $ 2,174 | |||
U.S. Federal statutory tax rate | ||||||
U.S. Federal statutory tax rate | 21.00% | 35.00% | 35.00% | |||
State income tax, net of U.S. Federal tax benefit | 0.50% | 0.90% | 0.40% | |||
Lower taxes on foreign results | (2.20%) | (9.40%) | (8.00%) | |||
Provisional One Time Mandatory Repatriation TCJ Act, Percent | 0.10% | 41.40% | 0.00% | |||
Remeasurement of Deferred Taxes TCJ Act, Percent | (0.40%) | (15.90%) | 0.00% | |||
International Reorganization | (0.473) | 0 | 0 | |||
Tax benefits | (7.80%) | 0.00% | 0.00% | |||
Other, net | (0.60%) | (3.10%) | (2.00%) | |||
Annual tax rate | (36.70%) | 48.90% | 25.40% | |||
Deferred tax liabilities | ||||||
Debt guarantee of wholly-owned subsidiary | $ 578 | $ 578 | ||||
Property, plant and equipment | 1,303 | 1,397 | ||||
Intangible assets other than nondeductible goodwill | 0 | 3,169 | ||||
Deferred tax liability, recapture of NOL | 414 | 0 | ||||
Other | 71 | 50 | ||||
Gross deferred tax liabilities | 2,366 | 5,194 | ||||
Deferred tax assets | ||||||
Net carryforwards | 4,353 | 1,400 | ||||
Deferred Tax Assets, Goodwill and Intangible Assets | 985 | 0 | ||||
Share-based compensation | 106 | 107 | ||||
Retiree medical benefits | 167 | 198 | ||||
Other employee-related benefits | 303 | 338 | ||||
Pension benefits | 221 | 22 | ||||
Deductible state tax and interest benefits | 110 | 157 | ||||
Other | 739 | 893 | ||||
Gross deferred tax assets | 6,984 | 3,115 | ||||
Valuation allowances | $ (1,163) | $ (1,110) | $ (1,136) | (3,753) | (1,163) | $ (1,110) |
Deferred tax assets, net | 3,231 | 1,952 | ||||
Net deferred tax (assets)/liabilities | (865) | 3,242 | ||||
Valuation Allowance [Abstract] | ||||||
Balance, beginning of year | (1,163) | (1,110) | (1,136) | |||
Provision | $ 2,639 | $ 33 | $ 13 | |||
Other (deductions)/additions | (49) | 20 | (39) | |||
Balance, end of year | $ (3,753) | $ (1,163) | $ (1,110) |
Income Taxes (Reserves Rollforw
Income Taxes (Reserves Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 2,212 | $ 1,885 |
Additions for tax positions related to the current year | 142 | 309 |
Additions for tax positions from prior years | 197 | 86 |
Reductions for tax positions from prior years | (822) | (51) |
Settlement payments | (233) | (4) |
Statutes of limitations expiration | (42) | (33) |
Translation and other | (14) | 20 |
Balance, end of period | $ 1,440 | $ 2,212 |
Share-Based Compensation Shar_2
Share-Based Compensation Share-Based Compensation (Narrative) (Details) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 29, 2018USD ($)option / rsushares | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Common stock, capital shares reserved for future issuance | shares | 66 | ||||
Allocated Share-based Compensation Expense | $ 256 | $ 292 | $ 284 | ||
Allocated Share-Based Compensation Liability Awards | 20 | 13 | 5 | ||
Restructuring, Settlement and Impairment Provisions, Share-based Compensation | (6) | (2) | 5 | ||
Allocated Share-based Compensation Expense, After Merger/Integration and Restructuring/Impairment | 270 | 303 | 294 | ||
Income tax benefits recognized in earnings related to share-based compensation | 45 | 89 | [1] | 91 | |
Unrecognized compensation cost related to nonvested share-based compensation grants | $ 282 | ||||
Weighted-average period for recognizing unrecognized compensation | 2 years | ||||
Acquisition-related awards remaining vesting period | 3 years | ||||
Percent of liability awards granted to senior officers | 34.00% | ||||
Proceeds and Excess Tax Benefit from Share-based Compensation | [2] | $ 48 | $ 115 | $ 110 | |
PEPunit | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Acquisition-related awards remaining vesting period | 3 years | ||||
Restricted Stock Units (RSUs) | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Award equivalence, ratio of stock options to RSUs | option / rsu | 4 | ||||
Stock Options | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Stock option exercisable life | 10 years | ||||
Award equivalence, ratio of stock options to RSUs | option / rsu | 1 | ||||
PEP Equity Performance Unit [Member] | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Percent of equity awards granted to Senior Officers as performance-based RSUs | 66.00% | ||||
[1] | Reflects tax rates effective for the 2017 tax year. | ||||
[2] | Included in provision for income taxes in the income statement in 2018 and 2017; included in capital in excess of par value in the equity statement in 2016. |
Share-Based Compensation Shar_3
Share-Based Compensation Share-Based Compensation (Schedule of Weighted-Average Black-Scholes Fair Value Assumptions) (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |||
Expected life | 5 years | 5 years | 6 years |
Risk-free interest rate | 2.60% | 2.00% | 1.40% |
Expected volatility | 12.00% | 11.00% | 12.00% |
Expected dividend yield | 2.70% | 2.70% | 2.70% |
Share-Based Compensation Shar_4
Share-Based Compensation Share-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding at December 30, 2017 | [1] | 19,013 | |||
Granted | [2] | 1,429 | [1] | 1,481 | 1,743 |
Exercised | [1] | (4,377) | |||
Forfeited/expired | [1] | (476) | |||
Outstanding at December 29, 2018 | [1] | 15,589 | 19,013 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Outstanding at December 31, 2016 (in USD per share) | $ 74.23 | ||||
Granted (in USD per share) | 108.88 | ||||
Exercised (in USD per share) | 62.95 | ||||
Forfeited/expired (in USD per share) | 94.85 | ||||
Outstanding at December 30, 2017 (in USD per share) | $ 79.94 | $ 74.23 | |||
Outstanding at December 30, 2017 - average life | 4 years 3 months 15 days | ||||
Outstanding Aggregate Intrinsic Value, at December 30, 2017 | [3] | $ 474,746 | |||
Exercisable at December 29, 2018 | [1] | 11,547 | |||
Exercisable at December 30, 2017 - average price | $ 70.74 | ||||
Exercisable at December 30, 2017 - average life | 2 years 11 months 1 day | ||||
Exercisable Aggregate Intrinsic Value, at December 30, 2017 | [3] | $ 457,529 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | [1] | 3,713 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 106.02 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 8 years 2 months 1 day | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | [3] | $ 16,606 | |||
[1] | Options are in thousands and include options previously granted under the PBG plan. No additional options or shares were granted under the PBG plan after 2009. | ||||
[2] | In thousands | ||||
[3] | In thousands. |
Share-Based Compensation Shar_5
Share-Based Compensation Share-Based Compensation (Restricted Stock Units Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | [1] | 7,293 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | [1] | 7,175 | [2] | 7,293 | |
Expected to Vest as of December 30, 2017 | [1] | 6,667 | |||
Granted (b) | [1],[3] | 2,634 | |||
Forfeited | [1] | (647) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 108.75 | [3] | $ 109.92 | $ 99.06 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | [1] | (2,362) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 99.73 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 105.21 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 105.13 | [2] | $ 102.30 | ||
Outstanding, average life, at December 30, 2017 | [2] | 1 year 2 months 19 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Aggregate Intrinsic Value | [1],[2] | $ 791,878 | |||
Expected to vest as of December 30, 2017 (in USD per share) | $ 104.90 | ||||
Expected to vest, average life, at December 30, 2017 | 1 year 1 month 24 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Aggregate Intrinsic Value | [1] | $ 735,813 | |||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-Based Payment Award, Equity instruments other than options, Performance Assumption Adjustment, Shares | [1],[4] | 257 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Performance Assumption Change, Weighted Average Grant Date Fair Value, Amount per Share | [4] | $ 98.92 | |||
Performance Shares [Member] | Maximum Award Level [Domain] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-Based Payment Award, Equity instruments other than options, Performance Assumption Adjustment, Shares Outstanding | [1],[2] | 1,600 | |||
Target Award Level [Domain] [Domain] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-Based Payment Award, Equity instruments other than options, Performance Assumption Adjustment, Shares Outstanding | [1],[2] | 900 | |||
[1] | In thousands. | ||||
[2] | The outstanding PSUs for which the performance period has not ended as of December 29, 2018, at the threshold, target and maximum award levels were zero, 0.9 million and 1.6 million, respectively. | ||||
[3] | Grant activity for all PSUs are disclosed at target. | ||||
[4] | Reflects the net number of PSUs above and below target levels based on actual performance measured at the end of the performance period. |
Share-Based Compensation Shar_6
Share-Based Compensation Share-Based Compensation (Other Stock-Based Compensation Data) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | [1] | 1,429 | [2] | 1,481 | 1,743 |
Weighted-average grant-date fair value of options granted | $ 9.80 | $ 8.25 | $ 6.94 | ||
Total intrinsic value of options exercised (a) | [1] | $ 224,663 | $ 327,860 | $ 290,131 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | [1] | 15,506 | 23,122 | $ 18,840 | |
LiabilityAwards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
LiabilityAwardsNonvestedNumber | [3] | 54,710 | [4] | $ 33,200 | |
LiabilityAwardsNonvestedBalanceSheetFairValue | [3],[4] | $ 55,809 | |||
LiabilityAwardsNonvestedRemainingContractualTerm | 1 year 2 months 19 days | ||||
Equity Instruments Other Than Options | |||||
LiabilityAwardsGranted | [3],[5] | $ 20,926 | |||
LiabilityAwardsForfeituresExpirations | [3] | $ (2,292) | |||
Share-based Compensation Arrangement by Share-Based Payment Award, Equity instruments other than options, Performance Assumption Adjustment, Shares | [3],[6] | 2,876 | |||
LiabilityAwardsExpectedtoVest,Outstanding,Number | [3] | $ 51,159 | |||
LiabilityAwardsExpectedtoVest,BalanceSheetFairValue | [3] | $ 52,148 | |||
LiabilityAwardsExpectedtoVest,RemainingContractualTerm | 1 year 2 months 1 day | ||||
Restricted Stock Units (RSUs) | |||||
Equity Instruments Other Than Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | [1] | 2,634 | 2,824 | 3,054 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 108.75 | [7] | $ 109.92 | $ 99.06 | |
Total intrinsic value of converted units | [1] | $ 260,287 | $ 380,269 | $ 359,401 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | [1] | 232,141 | 264,923 | 257,648 | |
PepsiCo Equity Performance Unit [Domain] | |||||
Equity Instruments Other Than Options | |||||
Total intrinsic value of converted units | [1] | 30,147 | 39,782 | 38,558 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | [1] | 9,430 | $ 18,833 | $ 16,572 | |
Minimum Award Level [Domain] | PEP_LiabilityAwardsPerformanceBased [Member] | |||||
Equity Instruments Other Than Options | |||||
LiabilityAwardsPerformanceAssumptionAdjustmentAwardsOutstanding | 0 | ||||
Maximum | PEP_LiabilityAwardsPerformanceBased [Member] | |||||
Equity Instruments Other Than Options | |||||
LiabilityAwardsPerformanceAssumptionAdjustmentAwardsOutstanding | 74,500 | ||||
Target Award Level [Domain] [Domain] | PEP_LiabilityAwardsPerformanceBased [Member] | |||||
Equity Instruments Other Than Options | |||||
LiabilityAwardsPerformanceAssumptionAdjustmentAwardsOutstanding | $ 37,300 | ||||
[1] | In thousands | ||||
[2] | Options are in thousands and include options previously granted under the PBG plan. No additional options or shares were granted under the PBG plan after 2009. | ||||
[3] | In thousands. | ||||
[4] | The outstanding long-term cash awards for which the performance period has not ended as of December 29, 2018, at the threshold, target and maximum award levels were zero, 37.3 million and 74.5 million, respectively. | ||||
[5] | Grant activity for all long-term cash awards are disclosed at target. | ||||
[6] | Reflects the net number of long-term cash awards above and below target levels based on actual performance measured at the end of the performance period. | ||||
[7] | Grant activity for all PSUs are disclosed at target. |
Share-Based Compensation Share
Share-Based Compensation Share Based Compensation (PEP unit + BOD activity paragraphs) (Details) - $ / shares | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Phantom Units Granted Under Director Deferral Program, Shares Outstanding | 248,000 | 250,000 |
PepsiCo Equity Performance Unit [Domain] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 278,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 248,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 68.94 |
Pension, Retiree Medical and _3
Pension, Retiree Medical and Savings Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Average remaining service period of active plan participants, pension expense | 10 | |||
Defined Benefit Plan, Average remaining life expectancy of Inactive Plan Participants, Pension Expense | 25 | |||
Average remaining service period of active plan participants, retiree medical expense | 7 | |||
Pension strategy investment term, years | 5 years | |||
Defined Contribution Plan, Cost | $ 180 | $ 176 | $ 164 | |
Pre-tax non-cash settlement charge | $ 242 | |||
Cost Savings Related to Reorganization of U.S. Pension Plans | 42 | |||
Cost Savings Related to Reorganization of U.S. Pension Plans Net of Tax | $ 27 | |||
Cost Savings Related to Reorganization of U.S. Pension Plans Net of Tax, Earnings per Share | $ 0.02 | |||
Domestic Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | 7.20% | 7.50% | 7.50% | |
Discretionary contribution to fund pension settlement | $ 452 | |||
Pre-tax non-cash settlement charge | 242 | |||
Pre-tax non-cash settlement charge, after-tax | $ 162 | |||
Pre-tax non-cash settlement charge, net of tax, per share | $ 0.11 | |||
Retiree Medical Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | 6.50% | 7.50% | 7.50% | |
Subsequent Event [Member] | Domestic Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | 7.10% |
Pension, Retiree Medical and _4
Pension, Retiree Medical and Savings Plans (Selected Financial Information for Pension and Retiree Medical Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Pension Plans, Defined Benefit | |||
Change in fair value of plan assets | |||
Employer contributions/funding | $ 1,400 | $ 164 | $ 659 |
Retiree Medical Plan | |||
Change in projected benefit liability | |||
Liability at beginning of year | 1,187 | 1,208 | |
Service cost | 32 | 28 | 31 |
Interest cost | 34 | 36 | 41 |
Plan amendments | (5) | ||
Experience (gain)/loss | (147) | 21 | |
Special termination benefits | 1 | 2 | |
Other, including foreign currency adjustment | (3) | 4 | |
Liability at end of year | 996 | 1,187 | 1,208 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (108) | (107) | |
Change in fair value of plan assets | |||
Fair value at beginning of year | 321 | 320 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (108) | (107) | |
Actual return on plan assets | (21) | 52 | |
Employer contributions/funding | 93 | 56 | 36 |
Fair value at end of year | 285 | 321 | 320 |
Funded status | (711) | (866) | |
Amounts recognized | |||
Other current liabilities | (41) | (75) | |
Other liabilities | (670) | (791) | |
Net amount recognized | (711) | (866) | |
Amounts included in accumulated other comprehensive loss (pre-tax) | |||
Net loss/(gain) | (287) | (189) | |
Prior service cost/(credit) | (51) | (71) | |
Total | (338) | (260) | |
Changes recognized in net loss/(gain) included in other comprehensive loss | |||
Net loss/(gain) arising in current year | (107) | (9) | |
Amortization and settlement recognition | 8 | 12 | |
Foreign currency translation (gain)/loss | 1 | 1 | |
Total | (98) | 4 | |
Domestic Plan [Member] | |||
Change in projected benefit liability | |||
Liability at beginning of year | 14,777 | 13,192 | |
Service cost | 431 | 401 | 393 |
Interest cost | 482 | 468 | 484 |
Plan amendments | 83 | 10 | |
Experience (gain)/loss | (972) | 1,529 | |
Settlement/curtailment | (74) | (58) | |
Special termination benefits | 36 | 60 | |
Liability at end of year | 13,807 | 14,777 | 13,192 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (956) | (825) | |
Change in fair value of plan assets | |||
Fair value at beginning of year | 12,582 | 11,458 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (956) | (825) | |
Actual return on plan assets | (789) | 1,935 | |
Employer contributions/funding | 1,495 | 60 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | (74) | (46) | |
Fair value at end of year | 12,258 | 12,582 | 11,458 |
Funded status | (1,549) | (2,195) | |
Amounts recognized | |||
Other assets | 185 | 286 | |
Other current liabilities | (107) | (74) | |
Other liabilities | (1,627) | (2,407) | |
Net amount recognized | (1,549) | (2,195) | |
Amounts included in accumulated other comprehensive loss (pre-tax) | |||
Net loss/(gain) | 4,093 | 3,520 | |
Prior service cost/(credit) | 109 | 29 | |
Total | 4,202 | 3,549 | |
Changes recognized in net loss/(gain) included in other comprehensive loss | |||
Net loss/(gain) arising in current year | 760 | 431 | |
Amortization and settlement recognition | (187) | (131) | |
Total | 573 | 300 | |
Accumulated benefit obligation at end of year | 12,890 | 13,732 | |
Foreign Plan [Member] | |||
Change in projected benefit liability | |||
Liability at beginning of year | 3,490 | 3,124 | |
Service cost | 92 | 91 | 80 |
Interest cost | 93 | 89 | 94 |
Plan amendments | 2 | 2 | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 2 | 2 | |
Experience (gain)/loss | (230) | 5 | |
Settlement/curtailment | (35) | (22) | |
Special termination benefits | 2 | ||
Other, including foreign currency adjustment | (204) | 303 | |
Liability at end of year | 3,098 | 3,490 | 3,124 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (114) | (104) | |
Change in fair value of plan assets | |||
Fair value at beginning of year | 3,460 | 2,894 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (114) | (104) | |
Participant contributions | 2 | 2 | |
Actual return on plan assets | (136) | 288 | |
Employer contributions/funding | 120 | 104 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | (32) | (18) | |
Other, including foreign currency adjustment | (210) | 294 | |
Fair value at end of year | 3,090 | 3,460 | $ 2,894 |
Funded status | (8) | (30) | |
Amounts recognized | |||
Other assets | 81 | 85 | |
Other current liabilities | (1) | (1) | |
Other liabilities | (88) | (114) | |
Net amount recognized | (8) | (30) | |
Amounts included in accumulated other comprehensive loss (pre-tax) | |||
Net loss/(gain) | 780 | 782 | |
Prior service cost/(credit) | (1) | (3) | |
Total | 779 | 779 | |
Changes recognized in net loss/(gain) included in other comprehensive loss | |||
Net loss/(gain) arising in current year | 103 | (115) | |
Amortization and settlement recognition | (56) | (60) | |
Foreign currency translation (gain)/loss | (49) | 73 | |
Total | (2) | (102) | |
Accumulated benefit obligation at end of year | $ 2,806 | $ 2,985 |
Pension, Retiree Medical and _5
Pension, Retiree Medical and Savings Plans (Components of Benefit Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pre-tax non-cash settlement charge | $ 242 | |||
United States Pension Plan of US Entity, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pre-tax non-cash settlement charge | 242 | |||
Service cost | $ 431 | $ 401 | 393 | |
Interest cost | 482 | 468 | 484 | |
Expected return on plan assets | (943) | (849) | (834) | |
Amortization of prior service cost/(credits) | 3 | 1 | (1) | |
Amortization of net losses/(gains) | 179 | 123 | 168 | |
Gross total | 152 | 144 | 210 | |
Settlement/curtailment losses/(gain) (a) | [1] | 8 | 8 | 245 |
Special termination benefits | 36 | 60 | 11 | |
Total | 196 | 212 | 466 | |
International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 92 | 91 | 80 | |
Interest cost | 93 | 89 | 94 | |
Expected return on plan assets | (197) | (176) | (163) | |
Amortization of net losses/(gains) | 45 | 53 | 40 | |
Gross total | 33 | 57 | 51 | |
Settlement/curtailment losses/(gain) (a) | [1] | 6 | 11 | 9 |
Special termination benefits | 2 | 1 | ||
Total | 41 | 68 | 61 | |
Retiree Medical Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 32 | 28 | 31 | |
Interest cost | 34 | 36 | 41 | |
Expected return on plan assets | (19) | (22) | (24) | |
Amortization of prior service cost/(credits) | (20) | (25) | (38) | |
Amortization of net losses/(gains) | (8) | (12) | (1) | |
Gross total | 19 | 5 | 9 | |
Settlement/curtailment losses/(gain) (a) | [1] | (14) | ||
Special termination benefits | 1 | 2 | 1 | |
Total | $ 20 | $ 7 | $ (4) | |
[1] | U.S. includes a settlement charge of $242 million related to the group annuity contract purchase in 2016. See additional unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Pension, Retiree Medical and _6
Pension, Retiree Medical and Savings Plans (Weighted-Average Assumptions to Determine Projected Benefit Liability and Benefit Expense for Pension and Retiree Medical Plans) (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
United States Pension Plan of US Entity, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability discount rate | 4.40% | 3.70% | 4.40% |
Interest cost discount rate | 3.40% | 3.70% | 3.80% |
Service Cost Discount Rate | 3.80% | 4.50% | 4.60% |
Expected return on plan assets | 7.20% | 7.50% | 7.50% |
Liability rate of salary increases | 3.10% | 3.10% | 3.10% |
Expense rate of salary increases | 3.10% | 3.10% | 3.10% |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability discount rate | 3.40% | 3.00% | 3.10% |
Interest cost discount rate | 2.80% | 2.80% | 3.50% |
Service Cost Discount Rate | 3.50% | 3.60% | 4.10% |
Expected return on plan assets | 6.00% | 6.00% | 6.20% |
Liability rate of salary increases | 3.70% | 3.70% | 3.60% |
Expense rate of salary increases | 3.70% | 3.60% | 3.60% |
Retiree Medical Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability discount rate | 4.20% | 3.50% | 4.00% |
Interest cost discount rate | 3.00% | 3.20% | 3.30% |
Service Cost Discount Rate | 3.60% | 4.00% | 4.30% |
Expected return on plan assets | 6.50% | 7.50% | 7.50% |
Pension, Retiree Medical and _7
Pension, Retiree Medical and Savings Plans (Selected Information About Plans with Liability for Service to Date and Total Benefit Liability in Excess of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Unfunded Plan | 830 | |
Domestic Plan [Member] | ||
Selected information for plans with accumulated benefit obligation in excess of plan assets | ||
Liability for service to date | $ (8,040) | $ (8,355) |
Fair value of plan assets | 7,223 | 6,919 |
Selected information for plans with projected benefit liability in excess of plan assets | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | (8,957) | (9,400) |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 7,223 | 6,919 |
Foreign Plan [Member] | ||
Selected information for plans with accumulated benefit obligation in excess of plan assets | ||
Liability for service to date | (155) | (161) |
Fair value of plan assets | 121 | 119 |
Selected information for plans with projected benefit liability in excess of plan assets | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | (514) | (1,273) |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 426 | 1,158 |
Retiree Medical Plan | ||
Selected information for plans with projected benefit liability in excess of plan assets | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | (996) | (1,187) |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | $ 285 | $ 321 |
Pension, Retiree Medical and _8
Pension, Retiree Medical and Savings Plans (Estimated Future Benefit Payments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 23, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payments for Defined Benefit Plan Settlement | $ 452 | ||||
Employer contributions/funding | $ 1,495 | $ 60 | |||
Pension Plans, Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discretionary | 1,417 | 6 | 459 | ||
Non-discretionary | $ 198 | 158 | 200 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year, Description | 1,615 | ||||
2,019 | $ 1,060 | ||||
2,020 | 960 | ||||
2,021 | 875 | ||||
2,022 | 915 | ||||
2,023 | 950 | ||||
2024-28 | 5,265 | ||||
Employer contributions/funding | 1,400 | 164 | 659 | ||
Retiree Medical Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discretionary | 37 | 0 | 0 | ||
Non-discretionary | 56 | 56 | 36 | ||
2,019 | [1] | 115 | |||
2,020 | [1] | 105 | |||
2,021 | [1] | 100 | |||
2,022 | [1] | 100 | |||
2,023 | [1] | 95 | |||
2024-28 | [1] | 395 | |||
Employer contributions/funding | 93 | $ 56 | $ 36 | ||
Years 2024 Through 2028 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Subsidies expected to be received under the 2003 Medicare Act | 6 | ||||
Maximum | Years 2019 Through 2023 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Subsidies expected to be received under the 2003 Medicare Act | $ 2 | ||||
Subsequent Event [Member] | Pension Plans, Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discretionary | $ 150 | ||||
Non-discretionary | 205 | ||||
Subsequent Event [Member] | Retiree Medical Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-discretionary | $ 40 | ||||
[1] | 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 $2 million for each of the years from 2019 through 2023 and approximately $6 million in total for 2024 through 2028. |
Pension, Retiree Medical and _9
Pension, Retiree Medical and Savings Plans Pension, Retiree Medical and Savings Plans (Target Asset Allocations) (Details) | Dec. 28, 2019 | Dec. 29, 2018 |
Fixed Income | ||
Target Asset Allocation [Line Items] | ||
Target investment allocation percentage | 47.00% | |
U.S. Equity | ||
Target Asset Allocation [Line Items] | ||
Target investment allocation percentage | 29.00% | |
International Equity | ||
Target Asset Allocation [Line Items] | ||
Target investment allocation percentage | 20.00% | |
Real Estate Funds [Member] | ||
Target Asset Allocation [Line Items] | ||
Target investment allocation percentage | 4.00% | |
Scenario, Forecast [Member] | Fixed Income | ||
Target Asset Allocation [Line Items] | ||
Target investment allocation percentage | 47.00% | |
Scenario, Forecast [Member] | U.S. Equity | ||
Target Asset Allocation [Line Items] | ||
Target investment allocation percentage | 29.00% | |
Scenario, Forecast [Member] | International Equity | ||
Target Asset Allocation [Line Items] | ||
Target investment allocation percentage | 20.00% | |
Scenario, Forecast [Member] | Real Estate Funds [Member] | ||
Target Asset Allocation [Line Items] | ||
Target investment allocation percentage | 4.00% |
Pension, Retiree Medical and_10
Pension, Retiree Medical and Savings Plans (Categorized Plan Assets Measured at Fair Value) (Details) $ in Millions | 12 Months Ended | ||||
Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |||
US Plan Assets [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | $ 12,543 | $ 12,903 | ||
Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 3,090 | 3,460 | $ 2,894 | ||
Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 12,258 | 12,582 | 11,458 | ||
Postretirement Health Coverage [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 285 | 321 | $ 320 | ||
U.S. Equity securities, including preferred stock | Level 1 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1],[2] | 5,595 | |||
U.S. Equity securities, including preferred stock | Level 2 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1],[2] | 10 | |||
Fixed Income Commingled funds [Member] | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 356 | 383 | ||
Fixed Income Commingled funds [Member] | Level 1 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 356 | |||
Fixed Income Commingled funds [Member] | Level 2 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 0 | |||
Fixed Income Commingled funds [Member] | Level 3 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 0 | |||
Mortgage-backed Securities, Issued by Private Enterprises [Member] | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 212 | 217 | ||
Mortgage-backed Securities, Issued by Private Enterprises [Member] | Level 1 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | |||
Mortgage-backed Securities, Issued by Private Enterprises [Member] | Level 2 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 212 | |||
Mortgage-backed Securities, Issued by Private Enterprises [Member] | Level 3 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | |||
US Government Agencies Debt Securities [Member] | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 1,674 | 1,365 | ||
US Government Agencies Debt Securities [Member] | Level 1 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | |||
US Government Agencies Debt Securities [Member] | Level 2 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 1,674 | |||
US Government Agencies Debt Securities [Member] | Level 3 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | |||
Corporate Bonds [Member] | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 478 | 493 | ||
Corporate Bonds [Member] | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 4,145 | 3,429 | ||
Corporate Bonds [Member] | Level 1 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | |||
Corporate Bonds [Member] | Level 1 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | |||
Corporate Bonds [Member] | Level 2 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 478 | |||
Corporate Bonds [Member] | Level 2 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 4,145 | |||
Corporate Bonds [Member] | Level 3 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | |||
Corporate Bonds [Member] | Level 3 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | |||
Government Securities | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [3],[4] | 433 | $ 492 | ||
Government Securities | Level 1 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [3],[4] | 0 | |||
Government Securities | Level 2 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [3],[4] | 433 | |||
Government Securities | Level 3 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [3],[4] | $ 0 | |||
Corporate Bonds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Representation of one fund in total U.S. plan assets | 28.00% | 23.00% | |||
Contracts With Insurance Companies | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [5] | $ 36 | $ 36 | ||
Contracts With Insurance Companies | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1],[5] | 9 | 8 | ||
Contracts With Insurance Companies | Level 1 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [5] | 0 | |||
Contracts With Insurance Companies | Level 1 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1],[5] | 0 | |||
Contracts With Insurance Companies | Level 2 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [5] | 0 | |||
Contracts With Insurance Companies | Level 2 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1],[5] | 0 | |||
Contracts With Insurance Companies | Level 3 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [5] | 36 | |||
Contracts With Insurance Companies | Level 3 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1],[5] | 9 | |||
Cash And Cash Equivalents | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 27 | 19 | |||
Cash And Cash Equivalents | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 215 | 236 | ||
Cash And Cash Equivalents | Level 1 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 27 | ||||
Cash And Cash Equivalents | Level 1 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 215 | |||
Cash And Cash Equivalents | Level 2 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||||
Cash And Cash Equivalents | Level 2 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | |||
Cash And Cash Equivalents | Level 3 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||||
Cash And Cash Equivalents | Level 3 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | |||
Sub-Total U.S. Plan Assets | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 11,860 | 12,159 | ||
Sub-Total U.S. Plan Assets | Level 1 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 5,810 | |||
Sub-Total U.S. Plan Assets | Level 2 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 6,041 | |||
Sub-Total U.S. Plan Assets | Level 3 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 9 | |||
Real Estate Funds [Member] | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [6] | 102 | 102 | ||
Real Estate Funds [Member] | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [6] | 618 | [1] | 675 | |
Sub-Total International Plan Assets | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 2,981 | 3,351 | |||
Sub-Total International Plan Assets | Level 1 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 2,004 | ||||
Sub-Total International Plan Assets | Level 2 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 941 | ||||
Sub-Total International Plan Assets | Level 3 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 36 | ||||
Dividends And Interest Receivable | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 7 | 7 | |||
Dividends And Interest Receivable | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 65 | 69 | ||
Equity Securities [Member] | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 1,651 | [2] | 1,928 | ||
Equity Securities [Member] | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 5,605 | [2] | $ 6,904 | ||
Equity Securities [Member] | Level 1 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 1,621 | |||
Equity Securities [Member] | Level 2 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 30 | |||
Equity Securities [Member] | Level 3 | Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 0 | |||
Equity Securities [Member] | Level 3 | Domestic Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | ||||
Large-Cap Fund(s) In U.S. Commingled Funds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Representation of one fund in total U.S. plan assets | 15.00% | 19.00% | |||
Real Estate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Redemption period - Min | 45 | ||||
Redemption period | 90 | ||||
[1] | 2018 and 2017 amounts include $285 million and $321 million, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries. | ||||
[2] | The equity securities portfolio was invested in U.S. and international common stock and commingled funds, and the preferred stock portfolio in the U.S. was invested in domestic and international corporate preferred stock investments. The common stock is based on quoted prices in active markets. The U.S. commingled funds are based on fair values of the investments owned by these funds that are benchmarked against various U.S. large, mid-cap and small company indices, and includes one large-cap fund that represents 15% and 19% of total U.S. plan assets for 2018 and 2017, respectively. The international commingled funds are based on the fair values of the investments owned by these funds that track various non-U.S. equity indices. The preferred stock investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets. | ||||
[3] | Based on the fair value of the investments owned by these funds that track various government and corporate bond indices. | ||||
[4] | These investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets. Corporate bonds of U.S.-based companies represent 28% and 23% of total U.S. plan assets for 2018 and 2017, respectively. | ||||
[5] | Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable. The changes in Level 3 amounts were not significant in the years ended December 29, 2018 and December 30, 2017. | ||||
[6] | The real estate commingled funds include investments in limited partnerships. These funds are based on the net asset value of the appraised value of investments owned by these funds as determined by independent third parties using inputs that are not observable. The majority of the funds are redeemable quarterly subject to availability of cash and have notice periods ranging from 45 to 90 days. |
Pension, Retiree Medical and_11
Pension, Retiree Medical and Savings Plans Retiree Medical Cost Trend Rates (Details) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 6.00% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2,039 | |
Subsequent Event [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 6.00% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2,039 |
Debt Obligations and Commitme_3
Debt Obligations and Commitments (Schedule of Long and Short-Term Debt Contractual Commitments) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 | |
Debt Instrument [Line Items] | |||
Debt, Current | [1] | $ 4,026 | $ 5,485 |
Long-term Debt | [1] | 32,248 | 37,816 |
Long-Term Debt Obligations | [1] | 28,295 | 33,796 |
Debt Instrument, Unamortized Discount | 119 | 155 | |
Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Commercial Paper | [1],[2] | $ 0 | $ 1,385 |
Other Borrowings Short-term [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 6.00% | 4.70% | |
Other borrowings | [1],[2] | $ 73 | $ 80 |
Commercial Paper One Point Three Percentage_ [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.30% | ||
Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | ||
Current Maturities Of Long-Term Debt | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Current Maturities | [1],[2] | $ 3,953 | $ 4,020 |
Notes Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | 2.40% | |
Notes due | [1],[2] | $ 0 | $ 4,016 |
Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.10% | 2.10% | |
Notes due | [1],[2] | $ 3,948 | $ 3,933 |
Notes Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.90% | 3.10% | |
Notes due | [1],[2] | $ 3,784 | $ 3,792 |
Notes Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.30% | 2.40% | |
Notes due | [1],[2] | $ 3,257 | $ 3,300 |
Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.90% | 2.60% | |
Notes due | [1],[2] | $ 3,802 | $ 3,853 |
Notes Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.90% | 2.40% | |
Notes due | [1],[2] | $ 1,270 | $ 1,257 |
Notes Due 2024 to 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.70% | 3.80% | |
Notes due | [1],[2] | $ 16,161 | $ 17,634 |
Other Debt Instruments due 2018 to 2026 [Domain] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.30% | 1.30% | |
Other notes due | [1],[2] | $ 26 | $ 31 |
Less: Current Maturities Of Long Term Debt Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Current Maturities | [1] | (3,953) | $ (4,020) |
Notes Due 2026 [Member] | Seven Point Two Nine Zero Percent Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 11 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.29% | ||
Debt Instrument, Face Amount | $ 88 | ||
Notes Due 2026 [Member] | Seven Point Four Four Zero Percent Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 4 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.44% | ||
Debt Instrument, Face Amount | $ 21 | ||
Notes Due 2029 [Member] | Seven Point Zero Percent Notes Due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 357 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||
Debt Instrument, Face Amount | $ 516 | ||
Notes Due 2035 [Member] | Five Point Five Zero Percent Notes Due 2035 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 138 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||
Debt Instrument, Face Amount | $ 107 | ||
Notes Due 2040 [Member] | Four Point Eight Seven Five Percent Notes Due 2040 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 410 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||
Notes Due 2040 [Member] | Five Point Five Zero Percent Notes Due 2040 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 408 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||
[1] | Amounts are shown net of unamortized net discounts of $119 million and $155 million for 2018 and 2017, respectively. | ||
[2] | The interest rates presented reflect weighted-average effective interest rates at year-end. Certain of our fixed rate indebtedness have been swapped to floating rates through the use of interest rate derivative instruments. See Note 9 for additional information regarding our interest rate derivative instruments. |
Debt Obligations and Commitme_4
Debt Obligations and Commitments (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 31, 2016 | Jun. 05, 2017 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchase Amount | $ 1,600 | $ 2,500 | |
Gain (Loss) on Extinguishment of Debt | 253 | 233 | |
Extinguishment of Debt, Gain (Loss), Net of Tax | $ 191 | $ 156 | |
Extinguishment of Debt, Gain (Loss), Per Share, Net of Tax | $ 0.13 | $ 0.11 | |
International Divisions | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 62 | ||
Five-Year Unsecured Revolving Credit Agreement (Five-Year Credit Agreement) [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | 3,750 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 4,500 | ||
Five-year Unsecured Revolving Credit Agreement (Five-Year Credit Agreement Member) [Domain] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 3,750 | ||
Seven Point Nine Zero Percent Notes Due 2018 [Member] | Notes Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on debt | 7.90% | ||
Debt Instrument, Repurchased Face Amount | $ 1,500 | ||
Five Point One Two Five Percent Notes Due 2019 [Member] | Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on debt | 5.125% | ||
Debt Instrument, Repurchased Face Amount | $ 750 | ||
364-Day Unsecured Revolving Credit Agreement (364-Day Credit Agreement Member) [Domain] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | 3,750 | $ 3,750 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,500 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) on Sale of Equity Investments | $ 95 | ||
Gain (Loss) on Sale of Equity Investments, after tax | $ 85 | ||
Gain (Loss) on Sale of Equity Investments, net of tax, per share amount | $ 0.06 | ||
indirect equity investment percentage | 5.00% | ||
indirect equity investment | $ 166 | $ 166 | |
Charge related to the transaction with KSF Beverage Holding Co., Ltd. | $ 373 | ||
KSF Beverage Holding Co., Ltd. Charge per share | $ 0.26 | ||
Debt instrument, fair value | 32,000 | $ 41,000 | |
Expected reclassification of net gain/(losses) related to hedge from accumulated OCI into net income within the next 12 months | $ 5 | ||
Interest Rate Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 29.00% | 43.00% | |
Commodity Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Higher Remaining Maturity Date | 3 years | ||
Derivative, Notional Amount | $ 1,100 | $ 900 | |
Foreign Exchange Contract | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Higher Remaining Maturity Date | 2 years | ||
Derivative, Notional Amount | $ 2,000 | 1,600 | |
Net Investment Hedging [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 900 | 1,500 | |
Interest Rate Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 10,500 | $ 14,200 | |
Revenue Outside U.S. [Domain] | |||
Derivatives, Fair Value [Line Items] | |||
Percent of Revenue | 43.00% | ||
Top Five International Countries [Domain] | |||
Derivatives, Fair Value [Line Items] | |||
Percent of Revenue | 20.00% |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Financial Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Short-term Investments | $ 272 | $ 8,900 | |
Total asset derivatives at fair value | [1],[2] | 55 | 136 |
Total liability derivatives at fair value | [1],[2] | 568 | 410 |
Total Financial Assets at Fair Value | [2] | 3,931 | 14,901 |
Total Financial Liabilities at Fair Value | [2] | 1,018 | 913 |
Derivatives Designated As Cash Flow Hedging Instruments Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments, Assets, Total | [2] | 44 | 17 |
Derivatives Designated As Cash Flow Hedging Instruments Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments, Liabilities, Total | [2] | 341 | 246 |
Derivatives Not Designated As Hedging Instruments Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives not designated as hedging instruments, Assets, Total | [2] | 10 | 95 |
Derivatives Not Designated As Hedging Instruments Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Other Derivatives Not Designated as Hedging Instruments Liabilities at Fair Value | [2] | 119 | 34 |
Cash and Cash Equivalents [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Debt Securities, Available-for-sale | 5,800 | ||
Short-term Investments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Debt Securities, Available-for-sale | 8,700 | ||
Fair Value, Inputs, Level 1 [Member] | Derivatives Designated As Cash Flow Hedging Instruments Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Commodity contracts - other | [2],[3] | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Derivatives Designated As Cash Flow Hedging Instruments Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Commodity contracts - other | [2],[3] | 1 | 2 |
Fair Value, Inputs, Level 1 [Member] | Derivatives Not Designated As Hedging Instruments Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Commodity contracts - other | [2],[3] | 2 | 0 |
Fair Value, Inputs, Level 1 [Member] | Derivatives Not Designated As Hedging Instruments Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Commodity contracts - other | [2],[3] | 17 | 19 |
Fair Value, Inputs, Level 1 [Member] | Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Short-term Investments | [2],[4] | 196 | 228 |
Fair Value, Inputs, Level 1 [Member] | Liability [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Short-term Investments | [2],[4] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Derivatives Designated As Fair Value Hedging Instruments Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate derivatives | [2],[5] | 1 | 24 |
Fair Value, Inputs, Level 2 [Member] | Derivatives Designated As Fair Value Hedging Instruments Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate derivatives | [2],[5] | 108 | 130 |
Fair Value, Inputs, Level 2 [Member] | Derivatives Designated As Cash Flow Hedging Instruments Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign Exchange Forward contracts | [2],[6] | 44 | 15 |
Interest rate derivatives | [2],[6] | 0 | 0 |
Commodity contracts - other | [2],[7] | 0 | 2 |
Fair Value, Inputs, Level 2 [Member] | Derivatives Designated As Cash Flow Hedging Instruments Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign Exchange Forward contracts | [2],[6] | 14 | 31 |
Interest rate derivatives | [2],[6] | 323 | 213 |
Commodity contracts - other | [2],[7] | 3 | 0 |
Fair Value, Inputs, Level 2 [Member] | Derivatives Not Designated As Hedging Instruments Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign Exchange Forward contracts | [2],[6] | 3 | 10 |
Commodity contracts - other | [2],[7] | 5 | 85 |
Fair Value, Inputs, Level 2 [Member] | Derivatives Not Designated As Hedging Instruments Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign Exchange Forward contracts | [2],[6] | 10 | 3 |
Commodity contracts - other | [2],[7] | 92 | 12 |
Fair Value, Inputs, Level 2 [Member] | Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Debt Securities, Available-for-sale | [2],[8] | 3,658 | 14,510 |
Fair Value, Inputs, Level 2 [Member] | Liability [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Debt Securities, Available-for-sale | [2],[8] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Prepaid Forward Asset Fair Value | [2],[9] | 22 | 27 |
Deferred compensation | [2],[10] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Liability [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Prepaid Forward Asset Fair Value | [2],[9] | 0 | 0 |
Deferred compensation | [2],[10] | $ 450 | $ 503 |
[1] | Derivative assets and liabilities are presented on a gross basis on our balance sheet. Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on the balance sheet as of December 29, 2018 and December 30, 2017 were not material. Collateral received or posted against any of our asset or liability positions were not material. Collateral posted is classified as restricted cash. See Note 13 for further information. | ||
[2] | Fair value hierarchy levels are defined in Note 7. Unless otherwise noted, financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities. | ||
[3] | Based on quoted contract prices on futures exchange markets. | ||
[4] | Based on the price of index funds. These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability. | ||
[5] | Based on LIBOR forward rates. | ||
[6] | Based on recently reported market transactions of spot and forward rates. | ||
[7] | Based on recently reported market transactions of swap arrangements. | ||
[8] | Based on quoted broker prices or other significant inputs derived from or corroborated by observable market data. As of December 29, 2018, these debt securities were primarily classified as cash equivalents. As of December 30, 2017, $5.8 billion and $8.7 billion of debt securities were classified as cash equivalents and short-term investments, respectively. | ||
[9] | Based primarily on the price of our common stock. | ||
[10] | Based on the fair value of investments corresponding to employees’ investment elections. |
Financial Instruments (Effectiv
Financial Instruments (Effective Portion of Pre-Tax (Gains)/Losses on Derivative Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | $ 61 | $ (130) | $ 74 | |
Fair Value/Non-Designated Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Income Statement(a) | [1] | 179 | 38 | |
Cash Flow Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | (16) | 27 | ||
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b) | [2] | 111 | (171) | |
Foreign Exchange Forward Contracts | Fair Value/Non-Designated Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Income Statement(a) | [1] | 9 | (15) | |
Foreign Exchange Forward Contracts | Cash Flow Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | (52) | 62 | ||
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b) | [2] | (8) | 10 | |
Interest Rate Contracts | Fair Value/Non-Designated Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Income Statement(a) | [1] | 53 | 101 | |
Interest Rate Contracts | Cash Flow Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | 110 | (195) | ||
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b) | [2] | 119 | (184) | |
Commodity Contracts | Fair Value/Non-Designated Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Income Statement(a) | [1] | 117 | (48) | |
Commodity Contracts | Cash Flow Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | 3 | 3 | ||
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b) | [2] | 0 | 3 | |
Net Investment Hedging [Member] | Cash Flow Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss | $ (77) | $ 157 | ||
[1] | Foreign exchange derivative losses/gains are primarily included in selling, general and administrative expenses. Interest rate derivative losses/gains are primarily from fair value hedges and are included in interest expense. These losses/gains are substantially offset by decreases/increases in the value of the underlying debt, which are also included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. | |||
[2] | Foreign exchange derivative losses/gains are primarily included in cost of sales. Interest rate derivative losses/gains are included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. |
Net Income Attributable to Pe_3
Net Income Attributable to PepsiCo per Common Share (Out-of-the-money options) (Details) - $ / shares | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Earnings Per Share [Abstract] | ||||
Out-of-the-money options excluded from earnings per share | [1] | 0.7 | 0.4 | 0.7 |
Out-of-the-money options average exercise price | $ 109.83 | $ 110.12 | $ 99.98 | |
[1] | In millions. |
Net Income Attributable to Pe_4
Net Income Attributable to PepsiCo per Common Share (Basic and Diluted Net Income Attributable to PepsiCo per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Earnings Per Share [Abstract] | ||||
Net income | $ 12,515 | $ 4,857 | $ 6,329 | |
Dividends | (1) | |||
Redemption premium | (2) | (4) | (5) | |
Net income available for PepsiCo common shareholders - Value | $ 12,513 | $ 4,853 | $ 6,323 | |
Net income available for PepsiCo common stockholders - Shares | [1] | 1,415 | 1,425 | 1,439 |
Basic net income attributable to PepsiCo per common share | $ 8.84 | $ 3.40 | $ 4.39 | |
Stock options and RSUs - Shares | [1] | 10 | 12 | 12 |
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | $ 0 | $ 0 | $ 1 | |
ESOP convertible preferred stock - Value | 2 | $ 4 | $ 5 | |
ESOP convertible preferred stock - Shares | [1] | 1 | 1 | |
Diluted shares - Value | $ 12,515 | $ 4,857 | $ 6,329 | |
Diluted shares - Shares | [1] | 1,425 | 1,438 | 1,452 |
Diluted net income attributable to PepsiCo per common share | $ 8.78 | $ 3.38 | $ 4.36 | |
[1] | Weighted-average common shares outstanding (in millions). |
Preferred Stock (Narrative) (De
Preferred Stock (Narrative) (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 |
Preferred Stock [Line Items] | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 550,102 | |||
Common Stock, Shares, Issued | 1,409,000,000 | 1,420,000,000 | ||
Preferred Stock | ||||
Preferred Stock [Line Items] | ||||
Preferred stock, authorized (in shares) | 3,000,000 | |||
Preferred Stock, Shares Issued | 0 | 803,953 | 800,000 | 800,000 |
Outstanding preferred shares, fair value | $ 68 | |||
Preferred shares, outstanding | 114,753 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss Attributable to Pepsico (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||
Currency translation adjustment | $ (11,918) | $ (10,277) | $ (11,386) | $ (11,080) | |||
Cash flow hedges, net of tax | 87 | 47 | 83 | 37 | |||
Unamortized pension and retiree medical, net of tax (b) | [1] | (3,271) | (2,804) | (2,645) | (2,329) | ||
Unrealized gain on securities, net of tax | 2 | (4) | 64 | 88 | |||
Other | (19) | (19) | (35) | (35) | |||
Accumulated other comprehensive loss attributable to PepsiCo | (15,119) | (13,057) | (13,919) | (13,319) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (1,664) | [2] | 1,049 | [3] | (313) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (1,620) | 1,049 | (313) | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 50 | (41) | 76 | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | (595) | (217) | (343) | ||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax | 6 | (74) | (43) | ||||
Other Comprehensive Income, Other, Before Tax | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (2,159) | 717 | (623) | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (61) | 130 | (74) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax | (813) | (375) | (750) | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | 6 | 25 | (43) | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | 0 | ||||
OCI, before Reclassifications, before Tax, Attributable to Parent | (2,532) | 829 | (1,180) | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 44 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 111 | (171) | 150 | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 218 | 158 | 407 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | (99) | 0 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | ||||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 373 | (112) | 557 | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (21) | 60 | 7 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (10) | 5 | (30) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 128 | 58 | 27 | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | 6 | 19 | |||||
Other Comprehensive Income, Other, Taxes | 0 | 16 | 0 | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 97 | 145 | 23 | ||||
Net of taxes decrease to opening balance of accumulated other comprehensive loss attributable to Pepsico | $ 1,466 | $ 1,338 | $ 1,280 | $ 1,253 | |||
[1] | Pension and retiree medical amounts are net of taxes of $1,253 million as of December 26, 2015, $1,280 million as of December 31, 2016, $1,338 million as of December 30, 2017 and $1,466 million | ||||||
[2] | Currency translation adjustment primarily reflects the depreciation of the Russian ruble, Canadian dollar, Pound sterling and Brazilian real. | ||||||
[3] | Currency translation adjustment primarily reflects the appreciation of the euro, Russian ruble, Pound sterling and Canadian dollar. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss Attributable to Pepsico Reclassification of Accumulated Other Comprehensive Loss to the Condensed Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Proceeds from Divestiture of Businesses | $ 44 | $ 0 | $ 0 | ||
Accumulated Other Comprehensive Income Loss Defined Benefit Pension And Other Post retirement Plans Taxes | 1,466 | 1,338 | 1,280 | $ 1,253 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Derivatives Qualifying as Hedges, Net of Tax [Abstract] | |||||
Reclassification of net losses to net income, pre-tax amount | 111 | (171) | 150 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (27) | 64 | (63) | ||
Net derivative losses | 84 | (107) | 87 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | [1] | (17) | (24) | (39) | |
Amortization and settlement of (losses)/gains | [1] | 216 | 167 | 209 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | [1] | 19 | 15 | 237 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 218 | 158 | 407 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | (45) | (44) | (144) | ||
Remeasurement of net liabilities and translation | 173 | 114 | 263 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | (99) | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 0 | 10 | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | (89) | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 301 | (82) | 350 | ||
Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [2] | 111 | (171) | ||
Foreign Exchange Forward Contracts | Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [2] | (8) | 10 | ||
Foreign Exchange Forward Contracts | Sales Revenue, Net [Member] | Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | 0 | (2) | ||
Foreign Exchange Forward Contracts | Cost of Sales | Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 7 | (10) | 46 | ||
Interest Rate Contracts | Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [2] | 119 | (184) | ||
Interest Rate Contracts | Interest Expense | Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (119) | 184 | (187) | ||
Commodity Contracts | Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [2] | 0 | 3 | ||
Commodity Contracts | Cost of Sales | Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (3) | (4) | (3) | ||
Commodity Contracts | Selling, General and Administrative Expenses | Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 3 | $ 1 | $ (4) | ||
[1] | Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Income Statement 2018 2017 2016 Currency translation: Divestitures$44 $— $— Selling, general and administrative expenses Cash flow hedges: Foreign exchange contracts$(1) $— $2 Net revenue Foreign exchange contracts(7) 10 (46) Cost of sales Interest rate derivatives119 (184) 187 Interest expense Commodity contracts3 4 3 Cost of sales Commodity contracts(3) (1) 4 Selling, general and administrative expenses Net losses/(gains) before tax111 (171) 150 Tax amounts(27) 64 (63) Net losses/(gains) after tax$84 $(107) $87 Pension and retiree medical items: Amortization of net prior service credit $(17) $(24) $(39) Other pension and retiree medical benefits income/(expense) Amortization of net losses 216 167 209 Other pension and retiree medical benefits income/(expense) Settlement/curtailment 19 15 237 Other pension and retiree medical benefits income/(expense) Net losses before tax218 158 407 Tax amounts(45) (44) (144) Net losses after tax$173 $114 $263 Available-for-sale securities: Sale of Britvic securities$— $(99) $— Selling, general and administrative expensesTax amount— 10 — Net gain after tax$— $(89) $— Total net losses/(gains) reclassified for the year, net of tax$301 $(82) $350 | ||||
[2] | Foreign exchange derivative losses/gains are primarily included in cost of sales. Interest rate derivative losses/gains are included in interest expense. Commodity derivative losses/gains are included in either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. |
Supplemental Financial Inform_3
Supplemental Financial Information (Schedule of Supplemental Balance Sheet Information) (Details) - USD ($) | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Supplemental Financial Information [Abstract] | ||||
Inventory, LIFO Reserve | $ 0.05 | |||
Accounts and notes receivable | ||||
Trade receivables | 6,079,000,000 | $ 5,956,000,000 | ||
Other receivables | 1,164,000,000 | 1,197,000,000 | ||
Total receivables | 7,243,000,000 | 7,153,000,000 | ||
Analysis of valuation allowances | ||||
Allowance, beginning of year | 129,000,000 | 134,000,000 | $ 130,000,000 | |
Net amounts charged to expense | 16,000,000 | 26,000,000 | 37,000,000 | |
Deductions | [1] | (33,000,000) | (35,000,000) | (30,000,000) |
Other | [2] | (11,000,000) | 4,000,000 | (3,000,000) |
Allowance, end of year | 101,000,000 | 129,000,000 | $ 134,000,000 | |
Net receivables | 7,142,000,000 | 7,024,000,000 | ||
Inventories (c) | ||||
Raw materials | [3] | 1,312,000,000 | 1,344,000,000 | |
Work-in-process | [3] | 178,000,000 | 167,000,000 | |
Finished goods | [3] | 1,638,000,000 | 1,436,000,000 | |
Inventories | [3] | 3,128,000,000 | 2,947,000,000 | |
Other assets | ||||
Noncurrent notes and accounts receivable | 86,000,000 | 59,000,000 | ||
Deferred marketplace spending | 112,000,000 | 134,000,000 | ||
Prepaid Expense and Other Assets, Noncurrent | [4] | 269,000,000 | 374,000,000 | |
Other | 293,000,000 | 346,000,000 | ||
Other Assets | 760,000,000 | 913,000,000 | ||
Accounts payable and other current liabilities | ||||
Accounts payable | 7,213,000,000 | 6,727,000,000 | ||
Accrued marketplace spending | 2,541,000,000 | 2,390,000,000 | ||
Accrued compensation and benefits | 1,755,000,000 | 1,785,000,000 | ||
Dividends payable | 1,329,000,000 | 1,161,000,000 | ||
Business Combination, Contingent Consideration, Liability | 1,997,000,000 | 0 | ||
Other current liabilities | 3,277,000,000 | 2,954,000,000 | ||
Accounts payable and other current liabilities | $ 18,112,000,000 | $ 15,017,000,000 | ||
[1] | Includes accounts written off. | |||
[2] | Includes adjustments related primarily to currency translation and other adjustments. | |||
[3] | Approximately 5% of the inventory cost in 2018 and 2017 were computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material. | |||
[4] | See Note 7 for additional information regarding our pension plans. |
Supplemental Financial Inform_4
Supplemental Financial Information (Schedule of Other Supplemental Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |||
Supplemental Financial Information [Abstract] | |||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 459 | ||||
Rent expense | 771 | $ 742 | $ 701 | ||
Interest paid | [1] | 1,388 | 1,123 | 1,102 | |
Income taxes paid, net of refunds | 1,203 | [2] | $ 1,962 | $ 1,393 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 406 | ||||
Operating Leases, Future Minimum Payments, Due in Three Years | 294 | ||||
Operating Leases, Future Minimum Payments, Due in Four Years | 210 | ||||
Operating Leases, Future Minimum Payments, Due in Five Years | 161 | ||||
Operating Leases, Future Minimum Payments, Due Thereafter | 310 | ||||
Operating Leases, Future Minimum Payments Due | $ 1,840 | ||||
[1] | In 2018 and 2016, excludes the premiums paid in accordance with the debt transactions discussed in Note 8. | ||||
[2] | In 2018, includes tax payments of $115 million related to the TCJ Act. |
Acquisitions & Divestitures (De
Acquisitions & Divestitures (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Acquisitions & Divestitures [Line Items] | ||
Business Acquisition, Share Price | $ 144 | |
Business Combination, Consideration Transferred | $ 3,300 | |
Acquisition of SodaStream, net of cash and cash equivalents acquired | 3,200 | |
Business Acquisition, Consideration Held By Paying Agent | 2,000 | |
Business Combination, Integration Related Costs | $ 75 | |
Merger and Integration Charges, Per Share | $ 0.05 | |
Europe Sub-Saharan Africa [Member] | ||
Acquisitions & Divestitures [Line Items] | ||
Goodwill and Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | $ 3,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 200 | |
Business Combination, Integration Related Costs | 57 | |
Gain (Loss) on Disposition of Business | 58 | |
Gain (loss) on sale of subsidiary, net of tax | $ 46 | |
Gain (loss) on sale of subsidiary, net of tax, per share | $ 0.03 | |
Corporate Unallocated [Member] | ||
Acquisitions & Divestitures [Line Items] | ||
Business Combination, Integration Related Costs | $ 18 | |
Asia, Middle East and North Africa [Member] | ||
Acquisitions & Divestitures [Line Items] | ||
Gain (Loss) on Disposition of Business | 144 | $ 140 |
Gain (loss) on sale of subsidiary, net of tax | $ 126 | $ 107 |
Gain (loss) on sale of subsidiary, net of tax, per share | $ 0.09 | $ 0.07 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 |
Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 8,721 | $ 10,610 | ||
Restricted Cash | 1,997 | 0 | ||
Restricted cash included in other assets | 51 | 47 | ||
Cash and cash equivalents and restricted cash | $ 10,769 | $ 10,657 | $ 9,169 | $ 9,119 |