Pension and Retiree Medical Benefits (Notes)

8 Months Ended

Sep. 05, 2020

Pension and Retiree Medical Benefits [Abstract]

Retirement Benefits [Text Block]

Pension and Retiree Medical Benefits

The components of net periodic benefit cost/(income) for pension and retiree medical plans are as follows:

	12 Weeks Ended
	Pension								Retiree Medical
	9/5/2020		9/7/2019		9/5/2020		9/7/2019		9/5/2020		9/7/2019
	U.S.				International
Service cost	$	100	$	87	$	22	$	18	$	6	$	5
Other pension and retiree medical benefits expense/(income):
Interest cost	100		125		21		24		6		9
Expected return on plan assets	(214)		(205)		(52)		(46)		(3)		(4)
Amortization of prior service cost/(credits)	3		2		—		—		(3)		(4)
Amortization of net losses/(gains)	45		37		16		8		(6)		(7)
Settlement losses	—		15		—		3		—		—
Special termination benefits	1		5		—		—		—		—
Total other pension and retiree medical benefits income	(65)		(21)		(15)		(11)		(6)		(6)
Total	$	35	$	66	$	7	$	7	$	—	$	(1)

	36 Weeks Ended
	Pension								Retiree Medical
	U.S.				International
	9/5/2020		9/7/2019		9/5/2020		9/7/2019		9/5/2020		9/7/2019
Service cost	$	300	$	263	$	59	$	49	$	17	$	16
Other pension and retiree medical benefits expense/(income):
Interest cost	300		376		58		64		17		25
Expected return on plan assets	(643)		(617)		(138)		(124)		(11)		(12)
Amortization of prior service cost/(credits)	8		7		—		—		(8)		(13)
Amortization of net losses/(gains)	136		111		42		21		(16)		(19)
Settlement losses	—		15		—		3		—		—
Special termination benefits	8		—		—		—		—		—
Total other pension and retiree medical benefits income	(191)		(108)		(38)		(36)		(18)		(19)
Total	$	109	$	155	$	21	$	13	$	(1)	$	(3)

We continue to monitor the impact of the COVID-19 pandemic and related global economic conditions and uncertainty on the net unfunded status of our pension and retiree medical plans. We also regularly evaluate opportunities to reduce risk and volatility associated with our pension and retiree medical plans. In addition, lump sum payments may result in settlement charges that would be reflected as an item affecting comparability in future periods. During the 36 weeks ended September 5, 2020, we made discretionary contributions of $325 million to the PepsiCo Employees Retirement Plan A (Plan A) in the United States and $14 million to our international plans. During the 36 weeks ended September 7, 2019, we made discretionary contributions of $150 million to Plan A in the United States and $17 million to our international plans.