PepsiCo Reports Fourth Quarter and Full-Year 2023 Results;

Provides 2024 Financial Outlook; Announces Annual Dividend Increase

Reported (GAAP) Fourth Quarter and Full-Year 2023 Results
Fourth Quarter Full-Year
Net revenue performance (0.5)% 5.9%
Foreign exchange impact on net revenue (1.5)% (2)%
Earnings per share (EPS) $0.94 $6.56
EPS change 152% 2%
Foreign exchange impact on EPS (2)% (2)%
Organic/Core (non-GAAP)1 Fourth Quarter and Full-Year 2023 Results
Fourth Quarter Full-Year
Organic revenue growth 4.5% 9.5%
Core EPS $1.78 $7.62
Core constant currency EPS change 9% 14%

PURCHASE, N.Y. - February 9, 2024 - PepsiCo, Inc. (NASDAQ: PEP) today reported results
for the fourth quarter and full-year 2023.
“We are pleased with our results for 2023 as we successfully navigated another year of elevated
levels of inflation, macroeconomic volatility, geopolitical tensions and international conflicts. Our
results demonstrate that the investments we have made to strengthen our business and
advance our pep+ agenda are working: it’s evident in how we are innovating, operating,
empowering our teams, building our brands, and competing in the marketplace,” said Chairman
and CEO Ramon Laguarta.
Laguarta continued, “We are confident that our businesses will perform well in 2024 in the
context of changing marketplace conditions. Category growth rates are normalizing as
consumer behaviors largely revert to pre-pandemic norms and net revenue realization
moderates as inflationary pressures are expected to abate. Moving forward, we will further
sharpen our focus on providing consumers great-tasting products that offer convenience and
compelling value. We will also aggressively manage our costs to accelerate productivity, and
invest more in our brands, innovation, channel expansion and pep+ transformation.
For 2024, we now expect to deliver at least 4 percent organic revenue growth and at least 8
percent core constant currency EPS growth. We also announced a 7 percent increase in our
annualized dividend, starting with our June 2024 payment, which represents our 52nd
consecutive annual increase, and we plan to repurchase approximately $1 billion worth of
shares.”
1
Please refer to the Glossary for the definitions of non-GAAP financial measures including “Organic revenue growth,” “Core” and “Constant currency,”
and to “Guidance and Outlook” for additional information regarding PepsiCo’s full-year 2024 financial outlook. PepsiCo provides guidance on a non-
GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange and
commodity mark-to-market net impacts. PepsiCo’s fiscal year ends on the last Saturday of each December, resulting in an additional week of results
every five or six years (53rd reporting week). PepsiCo’s fourth quarter 2022 included 17 weeks of results and its 2022 fiscal year included 53 weeks of
results. Please refer to PepsiCo’s Annual Report on Form 10-K for the year ended December 30, 2023 (2023 Form 10-K) filed with the Securities and
Exchange Commission (SEC) for additional information regarding PepsiCo’s financial results.

1
Summary Fourth-Quarter 2023 Performance

Revenue Volume(a)
Percentage Point Impact % Change

GAAP Foreign Acquisitions 53rd Organic

Reported Exchange and Reporting % Convenient
% Change Translation Divestitures Week Change Foods Beverages
Frito-Lay North America (3) — — 6 3 (2)
Quaker Foods North America (b) (16) — — 6 (10) (8)
PepsiCo Beverages North America (2) — 0.5 5 3 (6)
Latin America 18 (10) — — 8 (6) —
Europe (1) 11 — — 10 (1) (2.5)
Africa, Middle East and South Asia (4) 13 1.5 — 11 — —
Asia Pacific, Australia and New Zealand
and China Region (2) 1 — — (1) (4) —
Total (0.5) 1.5 — 3 4.5 (3) (2)

Operating Profit and EPS

Percentage Point Impact
Foreign Core Constant
GAAP Reported Items Affecting Exchange Currency
% Change Comparability Translation % Change
Frito-Lay North America 2 (5.5) — (3)
Quaker Foods North America (79) 69 — (9)
PepsiCo Beverages North America (27) 28 — 1
Latin America 67 2 (18) 51
Europe n/m n/m 28 60
Africa, Middle East and South Asia n/m n/m 20 45
Asia Pacific, Australia and New Zealand and
China Region n/m n/m — (17)
Corporate unallocated expenses 6 4.5 — 10
Total 106 (98) 2 10

EPS 152 (145) 2 9

(a) Excludes the impact of acquisitions and divestitures and the 53rd reporting week. In certain instances, the volume change
shown here differs from the impact of organic volume on net revenue performance disclosed in the Organic Revenue
Growth Rates tables on page A-9, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our
franchise-owned beverage businesses, temporary timing differences between bottler case sales (BCS) and concentrate
shipments and equivalents (CSE). We report net revenue from our franchise-owned beverage businesses based on CSE.
The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.
(b) Net revenue decline was impacted by product returns related to the voluntary recall of certain bars and cereals in our
Quaker Foods North America division (Quaker Recall) by 5 percentage points, as well as cessation of sales of products as a
result of the Quaker Recall.

n/m - Not meaningful due to the impact of impairment and other charges, resulting in an operating loss in 2022.

Note: Amounts may not sum due to rounding.

Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of
GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue growth,” “Core”
and “Constant currency.”

PepsiCo’s fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six
years. PepsiCo’s fourth quarter 2022 included 17 weeks of results and its 2022 fiscal year included 53 weeks of results.

2
Discussion of Fourth-Quarter 2023 Reported Division Results:
In addition to the reported net revenue performance as set out in the tables on pages 2 and A-9, reported
operating results were driven by the following:
Frito-Lay North America
Operating profit increased 2%, primarily reflecting effective net pricing, productivity savings, a 5-
percentage-point favorable impact of prior-year impairment charges associated with a baked fruit
convenient food brand and lower advertising and marketing expenses. These impacts were partially
offset by certain operating cost increases, including strategic initiatives, and an 8-percentage-point impact
of higher commodity costs, primarily cooking oil, seasoning ingredients, and potatoes, a 6-percentage-
point unfavorable impact of the 53rd reporting week in the prior year and an organic volume decline.
Quaker Foods North America
Operating profit declined 79%, primarily reflecting a 73-percentage-point impact of product returns and
charges associated with the Quaker Recall, a net revenue decline, certain operating cost increases and a
7-percentage-point unfavorable impact of the 53rd reporting week in the prior year. These impacts were
partially offset by productivity savings, lower advertising and marketing expenses and a 3-percentage-
point impact from lower restructuring charges.
PepsiCo Beverages North America
Operating profit decreased 27%, primarily reflecting certain operating cost increases, a 37-percentage-
point impact of current-year impairment charges related to our investment in Tropicana Brands Group
(TBG), a decrease in organic volume, a 22-percentage-point impact of higher commodity costs, primarily
sweeteners, and a 6-percentage-point unfavorable impact of the 53rd reporting week in the prior year.
These impacts were partially offset by effective net pricing, productivity savings, a 7-percentage-point
favorable impact from lower restructuring charges and lower advertising and marketing expenses.
Latin America
Operating profit increased 67%, primarily reflecting effective net pricing, productivity savings and an 18-
percentage-point impact of favorable foreign exchange. These impacts were partially offset by certain
operating cost increases, a net decline in organic volume and higher advertising and marketing
expenses.
Europe
Operating profit improvement primarily reflects effective net pricing, a 78-percentage-point favorable
impact of lower impairment charges related to the SodaStream business (other impairment charges),
productivity savings and a 6-percentage-point favorable impact of lower restructuring charges. These
impacts were partially offset by certain operating cost increases, a 58-percentage-point impact of higher
commodity costs, primarily packaging materials and sweeteners, largely driven by transaction-related
foreign exchange, a 28-percentage-point impact of unfavorable foreign exchange translation, primarily
due to weakening of the Russian Ruble, and higher advertising and marketing expenses.
Africa, Middle East and South Asia
Operating profit improvement primarily reflects a favorable impact of the prior year impairment and other
charges associated with our decision to sell or discontinue certain non-strategic brands and an
investment (brand portfolio impairment charges), effective net pricing, a favorable impact of the prior year
impairment charges primarily related to certain juice brands from the Pioneer Food Group Ltd. (Pioneer
Foods) acquisition (other impairment charges), productivity savings and lower advertising and marketing
expenses. These impacts were partially offset by certain operating cost increases, a 79-percentage-point
impact of higher commodity costs, primarily packaging materials and sweeteners, largely driven by
transaction-related foreign exchange, and a 20-percentage-point impact of unfavorable foreign exchange
translation, primarily due to weakening of the Egyptian pound.
.

3
Asia Pacific, Australia and New Zealand and China Region
Operating profit improvement primarily reflects a favorable impact of lower impairment charges related to
the Be & Cheery brand (other impairment charges), effective net pricing, productivity savings, a favorable
impact of lower restructuring charges and a favorable impact of impairment charges on certain property,
plant and equipment due to the discontinuation of a non-strategic brand (brand portfolio impairment
charges) in China in the prior year. These impacts were partially offset by certain operating cost
increases, a net organic volume decline and higher advertising and marketing expenses.

4
Summary Full-Year 2023 Performance

Revenue Volume(a)
Percentage Point Impact % Change

GAAP Foreign Acquisitions 53rd Organic

Reported Exchange and Reporting % Convenient
% Change Translation Divestitures Week Change Foods Beverages
Frito-Lay North America 7 — — 2 9 (1)
Quaker Foods North America (b) (2) — — 2 1 (5)
PepsiCo Beverages North America 5 — — 1.5 7 (5)
Latin America 19 (9) 1 — 11 (4) 3
Europe 4 8 1 — 14 — (3)
Africa, Middle East and South Asia (5) 21 1 — 17 (3.5) 2
Asia Pacific, Australia and New
Zealand and China Region — 4 — — 4 (2) 2.5
Total 6 2 — 1 9 (2) (1)

Operating Profit and EPS

Percentage Point Impact
Foreign Core Constant
GAAP Reported Items Affecting Exchange Currency
% Change Comparability Translation % Change
Frito-Lay North America 10 (2) — 9
Quaker Foods North America (19) 21 — 3
PepsiCo Beverages North America (52) 63 — 11
Latin America 38 (6) (13) 19
Europe n/m n/m 16 50
Africa, Middle East and South Asia 21 (27) 21 15
Asia Pacific, Australia and New Zealand and
China Region 33 (26) 4 11
Corporate unallocated expenses 13 1.5 — 15
Total 4 8 2 15

EPS 2 10 2 14
rd
(a) Excludes the impact of acquisitions and divestitures and the 53 reporting week. In certain instances, the volume change
shown here differs from the impact of organic volume on net revenue performance disclosed in the Organic Revenue
Growth Rates tables on page A-9, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our
franchise-owned beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from
our franchise-owned beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no
direct impact on our net revenue.
(b) Net revenue decline was impacted by product returns related to the Quaker Recall by 2 percentage points, as well as
cessation of sales of products as a result of the Quaker Recall.

n/m - Not meaningful due to the impact of impairment and other charges, resulting in an operating loss in 2022.

Note: Amounts may not sum due to rounding.

Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of
GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue growth,” “Core”
and “Constant currency.”

PepsiCo’s fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six
years. PepsiCo’s 2022 fiscal year included 53 weeks of results.

5
Discussion of Full-Year 2023 Reported Division Results:
In addition to the reported net revenue performance as set out in the tables on pages 5 and A-9, reported
operating results were driven by the following:
Frito-Lay North America
Operating profit increased 10%, primarily reflecting the effective net pricing, productivity savings and a 2-
percentage-point favorable impact of prior-year impairment charges associated with a baked fruit
convenient food brand. These impacts were partially offset by certain operating cost increases, including
strategic initiatives, and a 10-percentage-point impact of higher commodity costs, primarily cooking oil,
seasoning ingredients and potatoes. The 53rd reporting week in the prior year reduced operating profit
growth by 2 percentage points.
Quaker Foods North America
Operating profit declined 19%, reflecting a 22-percentage-point impact of product returns and charges
associated with the Quaker Recall, certain operating cost increases, the decrease in organic volume, a 9-
percentage-point impact of higher commodity costs, higher advertising and marketing expenses and a 2-
percentage-point unfavorable impact of the 53rd reporting week in the prior year. These impacts were
partially offset by effective net pricing and productivity savings.
In 2024, unit volume, net revenue and operating profit will continue to be negatively impacted by the
Quaker Recall due to lower sales and additional charges.
PepsiCo Beverages North America
Operating profit decreased 52%, primarily reflecting the unfavorable impact of the prior-year gain of $3.0
billion associated with the sale of Tropicana, Naked and other select juice brands (Juice Transaction) and
the current-year impairment charges of $321 million related to our investment in TBG, partially offset by
the prior-year impairment and other related charges of $160 million associated with our decision to
terminate the agreement with Vital Pharmaceuticals, Inc. to distribute Bang energy drinks. Operating
profit also decreased due to certain operating cost increases, the decrease in organic volume, an 18-
percentage-point impact of higher commodity costs, primarily sweeteners and energy, a 5-percentage-
point unfavorable impact due to a prior-year gain on an asset sale and higher advertising and marketing
expenses. Additionally, operating profit performance reflects a 2-percentage-point unfavorable impact of
the 53rd reporting week in the prior year. These impacts were partially offset by the effective net pricing
and productivity savings.
Latin America
Operating profit increased 38%, primarily reflecting the effective net pricing, productivity savings, a 13-
percentage-point impact of favorable foreign exchange and a 6-percentage-point favorable impact of a
prior-year impairment and other charges associated with the sale of certain non-strategic brands. These
impacts were partially offset by certain operating cost increases, the net organic volume decline, an 11-
percentage-point impact of higher commodity costs, primarily potatoes, sweeteners and other ingredients
and higher advertising and marketing expenses.
Europe
Operating profit improvement primarily reflects the favorable impact of prior-year charges associated with
the Russia-Ukraine conflict and impairment of intangible assets related to the repositioning or
discontinuation of certain juice and dairy brands in Russia (brand portfolio impairment charges) and the
favorable impact of lower impairment charges related to the SodaStream business (other impairment
charges), partially offset by the unfavorable impact of the prior-year gain associated with the Juice
Transaction. Operating profit improvement also reflects the effective net pricing and productivity savings.
These impacts were partially offset by certain operating cost increases, a 54-percentage-point impact of
higher commodity costs, primarily sweeteners, packaging and potatoes, a 16-percentage-point impact of
unfavorable foreign exchange, higher advertising and marketing expenses and the organic volume
decline. .

6
Africa, Middle East and South Asia
Operating profit grew 21%, primarily reflecting a 24-percentage-point favorable impact of impairment and
other charges associated with our decision to sell or discontinue certain non-strategic brands and an
investment in the prior year (brand portfolio impairment charges), a 4-percentage-point favorable impact
of impairment charges primarily related to certain juice brands from the Pioneer Foods acquisition in the
prior year (other impairment charges), the effective net pricing and productivity savings. These impacts
were partially offset by a 70-percentage-point impact of higher commodity costs, primarily packaging
materials, sweeteners and grains, largely driven by transaction-related foreign exchange, certain
operating cost increases and a 21-percentage-point impact of unfavorable foreign exchange, primarily
due to weakening of the Egyptian pound.
Asia Pacific, Australia and New Zealand and China Region
Operating profit grew 33%, primarily reflecting a 23-percentage-point favorable impact of lower
impairment charges related to the Be & Cheery brand (other impairment charges), the effective net
pricing and productivity savings. These impacts were partially offset by certain operating cost increases,
higher advertising and marketing expenses, the net organic volume decline, a 5-percentage-point impact
of higher commodity costs and a 4-percentage-point impact of unfavorable foreign exchange.

7
Guidance and Outlook

The Company provides guidance on a non-GAAP basis as we cannot predict certain elements which are
included in reported GAAP results, including the impact of foreign exchange translation and commodity
mark-to-market net impacts.

For 2024, the Company now expects:

• At least 4 percent increase in organic revenue;

• At least 8 percent increase in core constant currency EPS;

In addition, the Company expects:

• A core annual effective tax rate of 20 percent; and

• Total cash returns to shareholders of approximately $8.2 billion, comprised of dividends of $7.2
billion and share repurchases of $1.0 billion.

In addition, the Company expects an approximate 1-percentage-point foreign exchange translation

headwind to impact reported net revenue and core EPS growth based on current market consensus
rates.

This assumption and the guidance above imply 2024 core EPS of at least $8.15, a 7 percent increase
compared to 2023 core EPS of $7.62.

Dividend Increase

The Company today announced a 7 percent increase in its annualized dividend to $5.42 per share from
$5.06 per share, effective with the dividend expected to be paid in June 2024. This represents the
Company’s 52nd consecutive annual dividend per share increase.

Prepared Management Remarks and Live Question and Answer Webcast

At approximately 6:30 a.m. (Eastern time) on February 9, 2024, the Company will post prepared
management remarks (in pdf format) regarding its fourth quarter and full-year 2023 results, including its
outlook for 2024, at www.pepsico.com/investors. At 8:15 a.m. (Eastern time) on February 9, 2024, the
Company will host a live question and answer session with investors and financial analysts. Further
details will be accessible on the Company’s website at www.pepsico.com/investors.

Contacts: Investor Relations Communications

[email protected] [email protected]

8
 PepsiCo, Inc. and Subsidiaries
Consolidated Statement of Income
(in millions except per share amounts)

(Unaudited)
Quarter Ended Year Ended
12/30/2023 12/31/2022 12/30/2023 12/31/2022
Net Revenue $ 27,850 $ 27,996 $ 91,471 $ 86,392
Cost of sales 13,097 13,420 41,881 40,576
Gross profit 14,753 14,576 49,590 45,816
Selling, general and administrative expenses 12,149 12,197 36,677 34,459
Gain associated with the Juice Transaction (a) — — — (3,321)
Impairment of intangible assets (b) 921 1,564 927 3,166
Operating Profit 1,683 815 11,986 11,512
Other pension and retiree medical benefits income/(expense) 67 (36) 250 132
Net interest expense and other (217) (273) (819) (939)
Income before income taxes 1,533 506 11,417 10,705
Provision for/(benefit from) income taxes (c) 209 (29) 2,262 1,727
Net income 1,324 535 9,155 8,978
Less: Net income attributable to noncontrolling interests 22 17 81 68
Net Income Attributable to PepsiCo $ 1,302 $ 518 $ 9,074 $ 8,910

Diluted
Net income attributable to PepsiCo per common share $ 0.94 $ 0.37 $ 6.56 $ 6.42
Weighted-average common shares outstanding 1,381 1,385 1,383 1,387

(a) In the year ended December 31, 2022, we sold our Tropicana, Naked and other select juice brands to PAI Partners for $3.5 billion in
cash and a 39% noncontrolling interest in a joint venture, TBG, operating across North America and Europe.
(b) In the quarter and year ended December 30, 2023, we recorded pre-tax impairment charges as a result of our quantitative assessments
of certain of our indefinite-lived intangible assets, primarily related to the SodaStream brand and goodwill. In the quarter ended
December 31, 2022, we recorded pre-tax impairment charges as a result of our quantitative assessments of certain of our indefinite-lived
intangible assets, primarily related to the SodaStream brand. In the year ended December 31, 2022, we recorded pre-tax impairment
charges as a result of our quantitative assessments of certain of our indefinite-lived intangible assets, primarily related to the
SodaStream brand, and related to the decrease in fair value of our indefinite-lived intangible assets as a result of the Russia-Ukraine
conflict charges.
(c) Benefit from income taxes in the quarter ended December 31, 2022 is primarily due to tax benefits related to certain consolidated
investments.

A-1
 PepsiCo, Inc. and Subsidiaries
Supplemental Financial Information
(in millions)

(Unaudited)
Quarter Ended Year Ended
12/30/2023 12/31/2022 12/30/2023 12/31/2022
Net Revenue
Frito-Lay North America $ 7,473 $ 7,708 $ 24,914 $ 23,291
Quaker Foods North America 893 1,059 3,101 3,160
PepsiCo Beverages North America 7,912 8,105 27,626 26,213
Latin America 3,966 3,373 11,654 9,779
Europe 4,216 4,258 13,234 12,724
Africa, Middle East and South Asia 1,937 2,012 6,139 6,438
Asia Pacific, Australia and New Zealand and China Region 1,453 1,481 4,803 4,787
Total $ 27,850 $ 27,996 $ 91,471 $ 86,392

Operating Profit/(Loss)
Frito-Lay North America $ 1,840 $ 1,803 $ 6,755 $ 6,135
Quaker Foods North America 40 188 492 604
PepsiCo Beverages North America 408 557 2,584 5,426
Latin America 703 421 2,252 1,627
Europe (439) (1,011) 767 (1,380)
Africa, Middle East and South Asia 151 (72) 807 666
Asia Pacific, Australia and New Zealand and China Region 24 (83) 713 537
Corporate unallocated expenses (1,044) (988) (2,384) (2,103)
Total $ 1,683 $ 815 $ 11,986 $ 11,512

A-2
 PepsiCo, Inc. and Subsidiaries
Consolidated Statement of Cash Flows
(in millions)
Year Ended
12/30/2023 12/31/2022
Operating Activities
Net income $ 9,155 $ 8,978
Depreciation and amortization 2,948 2,763
Gain associated with the Juice Transaction — (3,321)
Impairment and other charges 1,230 3,618
Product recall-related impact 136 —
Operating lease right-of-use asset amortization 570 517
Share-based compensation expense 380 343
Restructuring and impairment charges 445 411
Cash payments for restructuring charges (434) (224)
Acquisition and divestiture-related charges 41 80
Cash payments for acquisition and divestiture-related charges (41) (46)
Pension and retiree medical plan expenses 150 419
Pension and retiree medical plan contributions (410) (384)
Deferred income taxes and other tax charges and credits (271) (873)
Tax expense related to the Tax Cuts and Jobs Act (TCJ Act) — 86
Tax payments related to the TCJ Act (309) (309)
Change in assets and liabilities:
Accounts and notes receivable (793) (1,763)
Inventories (261) (1,142)
Prepaid expenses and other current assets (13) 118
Accounts payable and other current liabilities 420 1,842
Income taxes payable 310 57
Other, net 189 (359)
Net Cash Provided by Operating Activities 13,442 10,811

Investing Activities
Capital spending (5,518) (5,207)
Sales of property, plant and equipment 198 251
Acquisitions, net of cash acquired, investments in noncontrolled affiliates and
purchases of intangible and other assets (314) (873)
Proceeds associated with the Juice Transaction — 3,456
Other divestitures, sales of investments in noncontrolled affiliates and other assets 75 49
Short-term investments, by original maturity:
More than three months - purchases (555) (291)
More than three months - maturities 556 150
More than three months - sales 12 —
Three months or less, net 3 24
Other investing, net 48 11
Net Cash Used for Investing Activities (5,495) (2,430)

(Continued on following page)

A-3
 PepsiCo, Inc. and Subsidiaries
Consolidated Statement of Cash Flows (continued)
(in millions)
Year Ended
12/30/2023 12/31/2022
Financing Activities
Proceeds from issuances of long-term debt 5,482 3,377
Payments of long-term debt (3,005) (2,458)
Debt redemptions — (1,716)
Short-term borrowings, by original maturity:
More than three months - proceeds 5,428 1,969
More than three months - payments (3,106) (1,951)
Three months or less, net (29) (31)
Cash dividends paid (6,682) (6,172)
Share repurchases - common (1,000) (1,500)
Proceeds from exercises of stock options 116 138
Withholding tax payments on restricted stock units and performance stock units
converted (140) (107)
Other financing (73) (72)
Net Cash Used for Financing Activities (3,009) (8,523)
Effect of exchange rate changes on cash and cash equivalents and restricted cash (277) (465)
Net Increase/(Decrease) in Cash and Cash Equivalents and Restricted Cash 4,661 (607)
Cash and Cash Equivalents and Restricted Cash, Beginning of Year 5,100 5,707
Cash and Cash Equivalents and Restricted Cash, End of Year $ 9,761 $ 5,100

A-4
 PepsiCo, Inc. and Subsidiaries
Consolidated Balance Sheet
(in millions except per share amounts)
12/30/2023 12/31/2022
ASSETS
Current Assets
Cash and cash equivalents $ 9,711 $ 4,954
Short-term investments 292 394
Accounts and notes receivable, net 10,815 10,163
Inventories:
Raw materials and packaging 2,388 2,366
Work-in-process 104 114
Finished goods 2,842 2,742
5,334 5,222
Prepaid expenses and other current assets 798 806
Total Current Assets 26,950 21,539
Property, Plant and Equipment, net 27,039 24,291
Amortizable Intangible Assets, net 1,199 1,277
Goodwill 17,728 18,202
Other Indefinite-Lived Intangible Assets 13,730 14,309
Investments in Noncontrolled Affiliates 2,714 3,073
Deferred Income Taxes 4,474 4,204
Other Assets 6,661 5,292
Total Assets $ 100,495 $ 92,187

LIABILITIES AND EQUITY

Current Liabilities
Short-term debt obligations $ 6,510 $ 3,414
Accounts payable and other current liabilities 25,137 23,371
Total Current Liabilities 31,647 26,785
Long-Term Debt Obligations 37,595 35,657
Deferred Income Taxes 3,895 4,133
Other Liabilities 8,721 8,339
Total Liabilities 81,858 74,914
Commitments and contingencies
PepsiCo Common Shareholders’ Equity
Common stock, par value 12/3¢ per share (authorized 3,600 shares; issued, net of repurchased
common stock at par value: 1,374 and 1,377 shares, respectively) 23 23
Capital in excess of par value 4,261 4,134
Retained earnings 70,035 67,800
Accumulated other comprehensive loss (15,534) (15,302)
Repurchased common stock, in excess of par value (493 and 490 shares, respectively) (40,282) (39,506)
Total PepsiCo Common Shareholders’ Equity 18,503 17,149
Noncontrolling interests 134 124
Total Equity 18,637 17,273
Total Liabilities and Equity $ 100,495 $ 92,187

A-5
Non-GAAP Measures
In discussing financial results and guidance, the Company refers to the following measures which are not in accordance with
U.S. Generally Accepted Accounting Principles (GAAP): organic revenue growth, core results and core constant currency
results. We use non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of
our annual operating plan, evaluation of our overall business performance and as a factor in determining compensation for
certain employees. We believe presenting non-GAAP financial measures provides additional information to facilitate
comparison of our historical operating results and trends in our underlying operating results and provides additional
transparency on how we evaluate our business. We also believe presenting these measures allows investors to view our
performance using the same measures that we use in evaluating our financial and business performance and trends.
We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or
that could affect an understanding of our ongoing financial and business performance or trends. Examples of items for which
we may make adjustments include: amounts related to mark-to-market gains or losses (non-cash); charges related to
restructuring plans; charges associated with acquisitions and divestitures; gains associated with divestitures; asset impairment
charges (non-cash); product recall-related impact; pension and retiree medical-related amounts, including all settlement and
curtailment gains and losses; charges or adjustments related to the enactment of new laws, rules or regulations, such as tax law
changes; amounts related to the resolution of tax positions; tax benefits related to reorganizations of our operations; debt
redemptions, cash tender or exchange offers; and remeasurements of net monetary assets. Prior to the fourth quarter of 2021,
certain immaterial pension and retiree medical-related settlement and curtailment gains and losses were not considered items
affecting comparability. Pension and retiree medical-related service cost, interest cost, expected return on plan assets, and other
net periodic pension costs continue to be reflected in our core results. See below for a description of adjustments to our GAAP
financial measures included herein.
Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a
substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial
measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.
Glossary
We use the following definitions when referring to our non-GAAP financial measures:
Acquisitions and divestitures: mergers and acquisition activity, as well as divestitures and other structural changes, including
changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees.
Bottler case sales (BCS): Measure of physical beverage volume shipped to retailers and independent distributors from both
PepsiCo and our independent bottlers.
Concentrate shipments and equivalents (CSE): Measure of our physical beverage volume shipments to independent bottlers.
Constant currency: Financial results assuming constant foreign currency exchange rates used for translation based on the rates
in effect for the comparable prior-year period. In order to compute our constant currency results, we multiply or divide, as
appropriate, our current-year U.S. dollar results by the current-year average foreign exchange rates and then multiply or divide,
as appropriate, those amounts by the prior-year average foreign exchange rates.
Core: Core results are non-GAAP financial measures which exclude certain items from our financial results. For further
information regarding these excluded items, refer to “Items Affecting Comparability” in “Item 7 – Management’s Discussion
and Analysis of Financial Condition and Results of Operations” in our 2023 Form 10-K. For the periods presented, core results
exclude the following items:
Mark-to-market net impact
Mark-to-market net gains and losses on commodity derivatives in corporate unallocated expenses. These gains and losses are
subsequently reflected in division results when the divisions recognize the cost of the underlying commodity in operating
profit.
Restructuring and impairment charges
Expenses related to the multi-year productivity plan publicly announced in 2019, which was expanded and extended through
the end of 2028 to take advantage of additional opportunities within the initiatives of the plan.

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 Acquisition and divestiture-related charges
Acquisition and divestiture-related charges primarily include merger and integration charges and costs associated with
divestitures. Merger and integration charges include liabilities to support socioeconomic programs in South Africa, gains
associated with contingent consideration, employee-related costs, contract termination costs, closing costs and other
integration costs. Divestiture-related charges reflect transaction expenses, including consulting, advisory and other
professional fees.
Gain associated with the Juice Transaction
We recognized a gain associated with the Juice Transaction in our PepsiCo Beverages North America and Europe divisions.
Impairment and other charges
We recognized Russia-Ukraine conflict charges, brand portfolio impairment charges and other impairment charges as
described below.
Russia-Ukraine conflict charges
In connection with the ongoing conflict in Ukraine, we recognized charges related to indefinite-lived intangible assets and
property, plant and equipment impairment, allowance for expected credit losses, inventory write-downs and other costs.
We also recognized adjustments to the charges recorded in 2022.
Brand portfolio impairment charges
We recognized intangible asset, investment and property, plant and equipment impairments and other charges as a result
of management’s decision to reposition or discontinue the sale/distribution of certain brands and to sell an investment. We
also recognized adjustments to the charges recorded in 2022.
Other impairment charges
We recognized impairment charges taken as a result of our quantitative assessments of certain of our indefinite-lived
intangible assets and related to our investment in TBG.
Product recall-related impact
We recognized product returns, inventory write-offs and customer and consumer-related costs in our Quaker Foods North
America division associated with a voluntary recall of certain bars and cereals.
Pension and retiree medical-related impact
Pension and retiree medical-related impact includes settlement charges related to lump sum distributions exceeding the total
of annual service and interest costs, as well as curtailment gains.
Tax benefit related to the Internal Revenue Service (IRS) audit
We recognized a non-cash tax benefit resulting from our agreement with the IRS to settle one of the issues assessed in the
2014 through 2016 tax audit. The agreement covers tax years 2014 through 2019.
Tax expense related to the TCJ Act
Tax expense related to the TCJ Act reflects adjustments to the mandatory transition tax liability under the TCJ Act.
Effective net pricing: Reflects the year-over-year impact of discrete pricing actions, sales incentive activities and mix resulting
from selling varying products in different package sizes and in different countries.
Organic revenue growth: A measure that adjusts for the impacts of foreign exchange translation, acquisitions and divestitures,
and every five or six years, the impact of the 53rd reporting week, including in our 2022 financial results. Adjusting for
acquisitions and divestitures reflects mergers and acquisitions activity, as well as divestitures and other structural changes,
including changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees. We believe
organic revenue growth provides useful information in evaluating the results of our business because it excludes items that we
believe are not indicative of ongoing performance or that we believe impact comparability with the prior year.
2024 guidance
Our 2024 organic revenue growth guidance excludes the impact of acquisitions, divestitures and other structural changes and
foreign exchange translation. Our 2024 core effective tax rate guidance and our 2024 core constant currency EPS growth
guidance exclude the mark-to-market net impact included in corporate unallocated expenses, restructuring and impairment
charges and other items noted above. Our 2024 core constant currency EPS growth guidance also excludes the impact of
foreign exchange translation. We are unable to reconcile our full year projected 2024 organic revenue growth to our full year

A-7
projected 2024 reported net revenue growth because we are unable to predict the 2024 impact of foreign exchange due to the
unpredictability of future changes in foreign exchange rates and because we are unable to predict the occurrence or impact of
any acquisitions, divestitures or other structural changes. We are also not able to reconcile our full year projected 2024 core
effective tax rate to our full year projected 2024 reported effective tax rate and our full year projected 2024 core constant
currency EPS growth to our full year projected 2024 reported EPS growth because we are unable to predict the 2024 impact of
foreign exchange or the mark-to-market net impact on commodity derivatives due to the unpredictability of future changes in
foreign exchange rates and commodity prices. Therefore, we are unable to provide a reconciliation of these measures.

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 PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information
Organic Revenue Growth Rates
Quarter and Year Ended December 30, 2023
(unaudited)
Quarter Ended 12/30/2023
Impact of Impact of
Reported Organic
% Change, Foreign Acquisitions 53rd % Change,
GAAP exchange and reporting Non-GAAP Organic Effective
Net Revenue Year over Year % Change Measure translation divestitures week Measure(a) volume(b) net pricing
Frito-Lay North America (3)% — — 6 3% (2.5) 5
Quaker Foods North America (c) (16)% — — 6 (10)% (8) (2)
PepsiCo Beverages North America (2)% — 0.5 5 3% (7) 9
Latin America 18 % (10) — — 8% (5) 13
Europe (1)% 11 — — 10 % (1) 11
Africa, Middle East and South Asia (4)% 13 1.5 — 11 % — 11
Asia Pacific, Australia and New Zealand and China Region (2)% 1 — — (1)% (6) 5
Total (0.5)% 1.5 — 3 4.5 % (4) 9
Year Ended 12/30/2023
Impact of Impact of
Reported Organic
% Change, Foreign Acquisitions 53rd % Change,
GAAP exchange and reporting Non-GAAP Organic Effective
Net Revenue Year over Year % Change Measure translation divestitures week Measure(a) volume(b) net pricing
Frito-Lay North America 7% — — 2 9% (1) 10
Quaker Foods North America (c) (2)% — — 2 1% (5) 5
PepsiCo Beverages North America 5% — — 1.5 7% (5) 12
Latin America 19 % (9) 1 — 11 % (5) 16
Europe 4% 8 1 — 14 % (2) 16
Africa, Middle East and South Asia (5)% 21 1 — 17 % (2) 20
Asia Pacific, Australia and New Zealand and China Region —% 4 — — 4% (2) 6
Total 6% 2 — 1 9% (3) 13
(a) A financial measure that is not in accordance with GAAP. See pages A-6 through A-8 for further discussion.
(b) Excludes the impact of acquisitions and divestitures and the 53rd reporting week. In certain instances, the impact of organic volume on net revenue growth differs from the unit volume disclosed in the Summary
Fourth-Quarter 2023 Performance and Summary Full-Year 2023 Performance tables on pages 2 and 5, respectively, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our
franchise-owned beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from our franchise-owned beverage businesses based on CSE. The volume sold by our
nonconsolidated joint ventures has no direct impact on our net revenue.
(c) Net revenue decline was impacted by product returns related to the Quaker Recall, by 5 percentage points in the quarter ended December 30, 2023 and 2 percentage points in the year ended December 30,
2023, as well as cessation of sales of products as a result of the Quaker Recall.

Note – Amounts may not sum due to rounding.

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 PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Year over Year Growth Rates
Quarter and Year Ended December 30, 2023 (unaudited)

Quarter Ended 12/30/2023

Impact of Items Affecting Comparability Impact of
Acquisition Gain Pension and Core Core Constant
Reported Restructuring and associated retiree Tax benefit % Change, Currency
% Change, Mark-to- and divestiture- with the Impairment Product recall- medical- related to Non- Foreign % Change,
GAAP market net impairment related Juice and other related related the IRS GAAP exchange Non-GAAP
Year over Year % Change Measure impact charges charges Transaction charges impact impact audit Measure(a) translation Measure(a)
Frito-Lay North America 2% — (1) — — (5) — — — (3)% — (3)%
Quaker Foods North America (79)% — (3) — — — 73 — — (9)% — (9)%
PepsiCo Beverages North America (27)% — (7) (1) — 35 — — — 1% — 1%
Latin America 67 % — (1) — — 2.5 — — — 68 % (18) 51 %
Europe n/m — n/m n/m — n/m — — — 33 % 28 60 %
Africa, Middle East and South Asia n/m — n/m n/m — n/m — — — 25 % 20 45 %
Asia Pacific, Australia and New Zealand and China Region n/m — n/m n/m — n/m — — — (17)% — (17)%
Corporate unallocated expenses 6% 8 (0.5) (3) — — — — — 10 % — 10 %
Total Operating Profit 106 % (7) (15) 2 — (98) 22 — — 9% 2 10 %
Net Income Attributable to PepsiCo 151 % (8) (25) (0.5) 4 (125) 24 (21) 8 7% 2 8%
Net Income Attributable to PepsiCo per common share – diluted 152 % (8) (26) — 4 (126) 24 (21) 8 7% 2 9%

Year Ended 12/30/2023

Impact of Items Affecting Comparability Impact of
Acquisition Pension and Core Constant
Reported Restructuring and retiree Tax benefit Tax expense Core Currency
% Change, Mark-to- and divestiture Gain associated Impairment Product recall- medical- related to related to % Change, Foreign % Change,
GAAP market net impairment -related with the Juice and other related related the IRS the TCJ Non-GAAP exchange Non-GAAP
Year over Year % Change Measure impact charges charges Transaction charges impact impact audit Act Measure(a) translation Measure(a)
Frito-Lay North America 10 % — — — — (2) — — — — 8% — 9%
Quaker Foods North America (19)% — (1) — — — 22 — — — 3% — 3%
PepsiCo Beverages North America (52)% — (0.5) (1) 61 3 — — — — 11 % — 11 %
Latin America 38 % — — — — (6) — — — — 32 % (13) 19 %
Europe n/m — n/m n/m n/m n/m — — — — 33 % 16 50 %
Africa, Middle East and South Asia 21 % — 0.5 — — (28) — — — — (6)% 21 15 %
Asia Pacific, Australia and New Zealand and China Region 33 % — (2) — — (24) — — — — 7% 4 11 %
Corporate unallocated expenses 13 % 5 — (3.5) — — — — — — 15 % — 15 %
Total Operating Profit 4% — 0.5 — 26 (19) 1 — — — 13 % 2 15 %
Net Income Attributable to PepsiCo 2% — — (0.5) 30 (21) 1 (2) 3 (1) 12 % 2 14 %
Net Income Attributable to PepsiCo per common share –
diluted 2% — — (0.5) 30 (21) 1 (2) 3 (1) 12 % 2 14 %

(a) A financial measure that is not in accordance with GAAP. See pages A-6 through A-8 for further discussion.

Note – Amounts may not sum due to rounding.

n/m - Not meaningful due to the impact of impairment and other charges, resulting in an operating loss in 2022.

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 PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Certain Line Items
Quarters Ended December 30, 2023 and December 31, 2022
(in millions except per share amounts, unaudited)
Quarter Ended 12/30/2023
Net income
Selling, Other pension attributable to
general and Impairment of and retiree Provision Net income PepsiCo per
Cost of administrative intangible Operating medical benefits for income attributable common share Effective
sales Gross profit expenses assets profit income taxes(a) to PepsiCo - diluted tax rate(b)
Reported, GAAP Measure $ 13,097 $ 14,753 $ 12,149 $ 921 $ 1,683 $ 67 $ 209 $ 1,302 $ 0.94 13.6 %
Items Affecting Comparability
Mark-to-market net impact (6) 6 (53) — 59 — 15 44 0.03 0.2
Restructuring and impairment charges (3) 3 (155) — 158 — 36 122 0.09 0.6
Acquisition and divestiture-related charges (c) — — (21) — 21 — 14 7 — 0.7
Impairment and other charges — — (207) (921) 1,128 — 255 873 0.63 3.0
Product recall-related impact (136) 136 — — 136 — 32 104 0.07 0.5
Pension and retiree medical-related impact — — — — — 14 3 11 0.01 —
Core, Non-GAAP Measure (c) $ 12,952 $ 14,898 $ 11,713 $ — $ 3,185 $ 81 $ 564 $ 2,463 $ 1.78 18.5 %

Quarter Ended 12/31/2022

Other pension
and retiree (Benefit Net income
Selling, medical from)/ attributable to
general and Impairment of benefits Provision Net income PepsiCo per
administrative intangible Operating (expense)/ for income attributable common share Effective
(a)
Cost of sales Gross profit expenses assets profit income taxes to PepsiCo - diluted tax rate(b)
Reported, GAAP Measure $ 13,420 $ 14,576 $ 12,197 $ 1,564 $ 815 $ (36) $ (29) $ 518 $ 0.37 (5.8)%
Items Affecting Comparability
Mark-to-market net impact (53) 53 (53) — 106 — 25 81 0.06 1.5
Restructuring and impairment charges (27) 27 (230) — 257 28 52 233 0.17 1.0
Acquisition and divestiture-related charges — — (11) — 11 — 2 9 0.01 0.1
Gain associated with the Juice Transaction — — — — — — 19 (19) (0.01) 3.6
Impairment and other charges (49) 49 (128) (1,564) 1,741 — 321 1,420 1.03 7.4
Pension and retiree medical-related impact — — — — — 133 30 103 0.07 1.7
Tax benefit related to the IRS audit — — — — — — 35 (35) (0.03) 6.9
Core, Non-GAAP Measure (c) $ 13,291 $ 14,705 $ 11,775 $ — $ 2,930 $ 125 $ 455 $ 2,310 $ 1.67 16.3 %
(a) (Benefit from)/provision for income taxes is the expected tax charge/benefit on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax
jurisdiction.
(b) The impact of items affecting comparability on our effective tax rate represents the difference in the effective tax rate resulting from a higher or lower tax rate applicable to the items affecting comparability.
(c) A financial measure that is not in accordance with GAAP. See pages A-6 through A-8 for further discussion.

Note – Amounts may not sum due to rounding.

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 PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Certain Line Items
Years Ended December 30, 2023 and December 31, 2022
(in millions except per share amounts, unaudited)
Year Ended 12/30/2023

Selling, Other pension and Net income Net income

general and Impairment retiree medical attributable to Net income attributable to
Cost of Gross administrative of intangible Operating benefits Provision for noncontrolling attributable PepsiCo per common Effective tax
sales profit expenses assets profit income income taxes(a) interests to PepsiCo share - diluted rate(b)
Reported, GAAP Measure $ 41,881 $ 49,590 $ 36,677 $ 927 $ 11,986 $ 250 $ 2,262 $ 81 $ 9,074 $ 6.56 19.8 %
Items Affecting Comparability
Mark-to-market net impact (3) 3 (33) — 36 — 9 — 27 0.02 —
Restructuring and impairment charges (13) 13 (433) — 446 (1) 96 1 348 0.25 0.1
Acquisition and divestiture-related (c) — — (41) — 41 — 18 — 23 0.02 0.1
Impairment and other charges 5 (5) (308) (927) 1,230 — 284 — 946 0.68 0.3
Product recall-related impact (136) 136 — — 136 — 32 — 104 0.07 —
Pension and retiree medical-related impact — — — — — 14 3 — 11 0.01 —
Core, Non-GAAP Measure (c) $ 41,734 $ 49,737 $ 35,862 $ — $ 13,875 $ 263 $ 2,704 $ 82 $ 10,533 $ 7.62 20.3 %

Year Ended 12/31/2022

Other Net income
Gain pension and attributable
Selling, associated Impairment retiree Provision Net income to PepsiCo
general and with the of medical for attributable to Net income per common
Cost of Gross administrative Juice intangible Operating benefits income noncontrolling attributable to share - Effective
sales profit expenses Transaction assets profit income taxes(a) interests PepsiCo diluted tax rate(b)
Reported, GAAP Measure $ 40,576 $ 45,816 $ 34,459 $ (3,321) $ 3,166 $ 11,512 $ 132 $ 1,727 $ 68 $ 8,910 $ 6.42 16.1 %
Items Affecting Comparability
Mark-to-market net impact (52) 52 (10) — — 62 — 14 — 48 0.03 —
Restructuring and impairment charges (33) 33 (347) — — 380 31 77 1 333 0.24 (0.1)
Acquisition and divestiture-related charges — — (74) — — 74 6 14 — 66 0.05 —
Gain associated with the Juice Transaction — — — 3,321 — (3,321) — (433) — (2,888) (2.08) 2.2
Impairment and other charges (201) 201 (251) — (3,166) 3,618 — 671 — 2,947 2.12 (0.5)
Pension and retiree medical-related impact — — — — — — 307 69 — 238 0.17 0.1
Tax benefit related to the IRS audit — — — — — — — 319 — (319) (0.23) 3.0
Tax expense related to the TCJ Act — — — — — — — (86) — 86 0.06 (0.8)
Core, Non-GAAP Measure (c) $ 40,290 $ 46,102 $ 33,777 $ — $ — $ 12,325 $ 476 $ 2,372 $ 69 $ 9,421 $ 6.79 20.0 %
(a) Provision for income taxes is the expected tax charge/benefit on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax jurisdiction.
(b) The impact of items affecting comparability on our effective tax rate represents the difference in the effective tax rate resulting from a higher or lower tax rate applicable to the items affecting comparability.
(c) A financial measure that is not in accordance with GAAP. See pages A-6 through A-8 for further discussion.

Note – Amounts may not sum due to rounding.

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 PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Operating Profit by Division
Quarters Ended December 30, 2023 and December 31, 2022
(in millions, unaudited)

Quarter Ended 12/30/2023

Items Affecting Comparability
Restructuring Acquisition and
Reported, Mark-to- and divestiture- Impairment Product Core,
GAAP market net impairment related and other recall-related Non-GAAP
Operating Profit Measure impact charges charges charges impact Measure(a)
Frito-Lay North America $ 1,840 $ — $ 23 $ — $ — $ — $ 1,863
Quaker Foods North America 40 — — — — 136 176
PepsiCo Beverages North America 408 — 23 4 208 — 643
Latin America 703 — 10 — — — 713
Europe (439) — 38 — 861 — 460
Africa, Middle East and South Asia 151 — 5 1 — — 157
Asia Pacific, Australia and New Zealand and China Region 24 — 1 — 59 — 84
Corporate unallocated expenses (1,044) 59 58 16 — — (911)
Total $ 1,683 $ 59 $ 158 $ 21 $ 1,128 $ 136 $ 3,185

Quarter Ended 12/31/2022

Items Affecting Comparability
Restructuring and Acquisition and Impairment Core,
Reported, Mark-to-market impairment divestiture- and other Non-GAAP
Operating Profit GAAP Measure net impact charges related charges charges Measure(a)
Frito-Lay North America $ 1,803 $ — $ 36 $ — $ 88 $ 1,927
Quaker Foods North America 188 — 6 — — 194
PepsiCo Beverages North America 557 — 59 9 10 635
Latin America 421 — 15 — (12) 424
Europe (1,011) — 69 1 1,288 347
Africa, Middle East and South Asia (72) — 7 1 190 126
Asia Pacific, Australia and New Zealand and China Region (83) — 8 — 177 102
Corporate unallocated expenses (988) 106 57 — — (825)
Total $ 815 $ 106 $ 257 $ 11 $ 1,741 $ 2,930
(a) A financial measure that is not in accordance with GAAP. See pages A-6 through A-8 for further discussion.

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 PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Operating Profit by Division
Years Ended December 30, 2023 and December 31, 2022
(in millions, unaudited)

Year Ended 12/30/2023

Items Affecting Comparability
Reported, Restructuring Acquisition and Core,
GAAP Mark-to-market and impairment divestiture- Impairment and Product recall- Non-GAAP
Operating Profit Measure net impact charges related charges other charges related impact Measure(a)
Frito-Lay North America $ 6,755 $ — $ 42 $ — $ — $ — $ 6,797
Quaker Foods North America 492 — — — — 136 628
PepsiCo Beverages North America 2,584 — 41 16 321 — 2,962
Latin America 2,252 — 29 — 2 — 2,283
Europe 767 — 223 (2) 855 — 1,843
Africa, Middle East and South Asia 807 — 15 2 (7) — 817
Asia Pacific, Australia and New Zealand and China Region 713 — 8 — 59 — 780
Corporate unallocated expenses (2,384) 36 88 25 — — (2,235)
Total $ 11,986 $ 36 $ 446 $ 41 $ 1,230 $ 136 $ 13,875

Year Ended 12/31/2022

Items Affecting Comparability
Reported, Mark-to- Restructuring Acquisition and Gain associated Core,
GAAP market and impairment divestiture- with the Juice Impairment and Non-GAAP
Operating Profit Measure net impact charges related charges Transaction other charges Measure(a)
Frito-Lay North America $ 6,135 $ — $ 46 $ — $ — $ 88 $ 6,269
Quaker Foods North America 604 — 7 — — — 611
PepsiCo Beverages North America 5,426 — 68 51 (3,029) 160 2,676
Latin America 1,627 — 32 — — 71 1,730
Europe (1,380) — 109 14 (292) 2,932 1,383
Africa, Middle East and South Asia 666 — 12 3 — 190 871
Asia Pacific, Australia and New Zealand and China Region 537 — 16 — — 177 730
Corporate unallocated expenses (2,103) 62 90 6 — — (1,945)
Total $ 11,512 $ 62 $ 380 $ 74 $ (3,321) $ 3,618 $ 12,325
(a) A financial measure that is not in accordance with GAAP. See pages A-6 through A-8 for further discussion.

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 PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
(unaudited)

Gross Margin Growth Reconciliation

Quarter Ended Year Ended
12/30/2023 12/30/2023
Reported gross margin growth, GAAP measure 91 bps 118 bps
Impact of:
Mark-to-market net impact (17) (6)
Restructuring and impairment charges (8) (2)
Impairment and other charges (18) (24)
Product recall-related impact 49 15
Core gross margin growth, non-GAAP measure (a) 97 bps 101 bps

Operating Margin Performance Reconciliation

Quarter Ended Year Ended
12/30/2023 12/30/2023
Reported operating margin performance, GAAP measure 313 bps (22) bps
Impact of:
Mark-to-market net impact (17) (3)
Restructuring and impairment charges (34) 5
Acquisition and divestiture-related charges 4 (4)
Gain associated with the Juice Transaction — 384
Impairment and other charges (217) (284)
Product recall-related impact 49 15
Core operating margin growth, non-GAAP measure (a) 97 bps 90 bps
(a) A financial measure that is not in accordance with GAAP. See pages A-6 through A-8 for further discussion.

Note – Amounts may not sum due to rounding.

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Cautionary Statement

Statements in this communication that are “forward-looking statements,” including our 2024 guidance and outlook, are based
on currently available information, operating plans and projections about future events and trends. Terminology such as “aim,”
“anticipate,” “believe,” “drive,” “estimate,” “expect,” “expressed confidence,” “forecast,” “future,” “goal,” “guidance,”
“intend,” “may,” “objective,” “outlook,” “plan,” “position,” “potential,” “project,” “seek,” “should,” “strategy,” “target,” “will”
or similar statements or variations of such words and other similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking
statements. Such risks and uncertainties include, but are not limited to: the risks associated with the deadly conflict in Ukraine;
future demand for PepsiCo’s products; damage to PepsiCo’s reputation or brand image; product recalls or other issues or
concerns with respect to product quality and safety; PepsiCo’s ability to compete effectively; PepsiCo’s ability to attract,
develop and maintain a highly skilled and diverse workforce or effectively manage changes in our workforce; water scarcity;
changes in the retail landscape or in sales to any key customer; disruption of PepsiCo’s manufacturing operations or supply
chain, including continued increased commodity, packaging, transportation, labor and other input costs; political, social or
geopolitical conditions in the markets where PepsiCo’s products are made, manufactured, distributed or sold; PepsiCo’s ability
to grow its business in developing and emerging markets; changes in economic conditions in the countries in which PepsiCo
operates; future cyber incidents and other disruptions to our information systems; failure to successfully complete or manage
strategic transactions; PepsiCo’s reliance on third-party service providers and enterprise-wide systems; climate change or
measures to address climate change and other sustainability matters; strikes or work stoppages; failure to realize benefits from
PepsiCo’s productivity initiatives; deterioration in estimates and underlying assumptions regarding future performance of our
business or investments that can result in impairment charges; fluctuations or other changes in exchange rates; any downgrade
or potential downgrade of PepsiCo’s credit ratings; imposition or proposed imposition of new or increased taxes aimed at
PepsiCo’s products; imposition of limitations on the marketing or sale of PepsiCo’s products; changes in laws and regulations
related to the use or disposal of plastics or other packaging materials; failure to comply with personal data protection and
privacy laws; increase in income tax rates, changes in income tax laws or disagreements with tax authorities; failure to
adequately protect PepsiCo’s intellectual property rights or infringement on intellectual property rights of others; failure to
comply with applicable laws and regulations; and potential liabilities and costs from litigation, claims, legal or regulatory
proceedings, inquiries or investigations.

For additional information on these and other factors that could cause PepsiCo’s actual results to materially differ from those set
forth herein, please see PepsiCo’s filings with the SEC, including its most recent annual report on Form 10-K and subsequent
reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements,
which speak only as of the date they are made. We undertake no obligation to update any forward-looking statement, whether
as a result of new information, future events or otherwise.

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