Basis of Presentation (Tables)

8 Months Ended

Sep. 05, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Segment Reporting Disclosure [Text Block]

Net revenue of each division is as follows:

	12 Weeks Ended				36 Weeks Ended
	9/5/2020		9/7/2019		9/5/2020		9/7/2019
FLNA	$	4,399	$	4,105	$	12,746	$	11,930
QFNA	608		576		1,906		1,710
PBNA	5,958		5,643		15,766		15,475
LatAm	1,654		1,904		4,531		5,031
Europe	3,323		3,222		7,887		7,842
AMESA (a)	1,252		957		2,866		2,533
APAC	897		781		2,215		2,000
Total	$	18,091	$	17,188	$	47,917	$	46,521

Our primary performance obligation is the distribution and sales of beverage, food and snack products to our customers. The following tables reflect the approximate percentage of net revenue generated between our beverage business and our food and snack business for each of our international divisions, as well as our consolidated net revenue:

	12 Weeks Ended
	9/5/2020				9/7/2019
	Beverage(a)		Food/Snack		Beverage(a)		Food/Snack
LatAm	10	%	90	%	10	%	90	%
Europe	55	%	45	%	55	%	45	%
AMESA (b)	30	%	70	%	45	%	55	%
APAC	25	%	75	%	30	%	70	%
PepsiCo	45	%	55	%	50	%	50	%

	36 Weeks Ended
	9/5/2020				9/7/2019
	Beverage(a)		Food/Snack		Beverage(a)		Food/Snack
LatAm	10	%	90	%	10	%	90	%
Europe	55	%	45	%	55	%	45	%
AMESA (b)	35	%	65	%	45	%	55	%
APAC	25	%	75	%	25	%	75	%
PepsiCo	45	%	55	%	45	%	55	%

(a)Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and Europe segments, is approximately 40% of our consolidated net revenue. Generally, our finished goods beverage operations produce higher net revenue, but lower operating margins as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.

(b)The increase in the approximate percentage of net revenue generated by the food/snack business primarily reflects our acquisition of Pioneer Foods. See Note 12 for further information.

Operating profit of each division is as follows:

	12 Weeks Ended				36 Weeks Ended
	9/5/2020		9/7/2019		9/5/2020		9/7/2019
FLNA	$	1,353	$	1,286	$	3,833	$	3,694
QFNA	145		126		491		391
PBNA	697		640		1,391		1,719
LatAm	250		277		700		785
Europe	480		455		977		909
AMESA	193		210		386		551
APAC	163		166		494		388
Total division	$	3,281	$	3,160	$	8,272	$	8,437
Corporate unallocated expenses	(270)		(305)		(1,018)		(845)
Total	$	3,011	$	2,855	$	7,254	$	7,592

Operating profit in the 12 and 36 weeks ended September 5, 2020 includes certain pre-tax charges taken as a result of the COVID-19 pandemic. These pre-tax charges by division are as follows:

	12 Weeks Ended 9/5/2020
	Allowances for Expected Credit Losses(a)		Upfront Payments to Customers(b)		Inventory Write-Downs and Product Returns(c)		Employee Compensation Expense(d)		Employee Protection Costs(e)		Other(f)		Total
FLNA	$	—	$	—	$	1	$	24	$	16	$	—	$	41
QFNA	—		—		—		1		1		1		3
PBNA	3		—		1		14		12		20		50
LatAm	—		—		6		19		6		1		32
Europe	1		1		—		8		6		—		16
AMESA	—		—		—		1		2		3		6
APAC (g)	—		—		2		(5)		1		1		(1)
Total	$	4	$	1	$	10	$	62	$	44	$	26	$	147

	36 Weeks Ended 9/5/2020
	Allowances for Expected Credit Losses(a)		Upfront Payments to Customers(b)		Inventory Write-Downs and Product Returns(c)		Employee Compensation Expense(d)		Employee Protection Costs(e)		Other(f)		Total
FLNA	$	19	$	—	$	8	$	124	$	49	$	3	$	203
QFNA	2		—		—		7		2		1		12
PBNA	48		46		30		98		43		30		295
LatAm	1		—		12		35		14		4		66
Europe	5		2		10		17		14		17		65
AMESA	1		—		1		8		6		7		23
APAC (g)	—		—		3		(3)		2		2		4
Total	$	76	$	48	$	64	$	286	$	130	$	64	$	668

(a)Allowances reflect the expected impact of the global economic uncertainty caused by COVID-19, leveraging estimates of credit worthiness, default and recovery rates for certain of our customers, including foodservice and vending businesses.

(b)Upfront payments relate to promotional spending for which benefit is not expected to be received.

(c)Includes a reserve for product returns of $3 million and $19 million in the 12 and 36 weeks ended September 5, 2020, respectively.

(d)Includes incremental frontline incentive pay, crisis child care and other leave benefits and labor costs.

(e)Includes costs associated with personal protective equipment, temperature scans, cleaning and other sanitization services.

(f)Includes write-downs of property, plant and equipment, donations of cash and product, and other costs.

(g)Income amounts include a social welfare relief credit of $7 million in the 12 and 36 weeks ended September 5, 2020.