Acquisitions & Divestitures

8 Months Ended

Sep. 09, 2023

Sep. 03, 2022

Acquisitions & Divestitures [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Acquisition and Divestiture-Related Charges

Acquisition and divestiture-related charges include merger and integration charges and costs associated with divestitures, primarily consulting, advisory and other professional fees.

A summary of our acquisition and divestiture-related charges is as follows:

	12 Weeks Ended				36 Weeks Ended
	9/9/2023		9/3/2022		9/9/2023		9/3/2022
PBNA	$	2	$	3	$	12	$	42
Europe (a)	—		—		(2)		13
AMESA	—		2		1		2
Corporate	9		—		9		6
Total (b)	11		5		20		63
Other pension and retiree medical benefits expense	—		—		—		6
Total acquisition and divestiture-related charges	$	11	$	5	$	20	$	69
After-tax amount	$	9	$	3	$	16	$	57
Impact on net income attributable to PepsiCo per common share	$	(0.01)	$	—	$	(0.01)	$	(0.04)

(a)Income amount represents adjustments for changes in estimates of previously recorded amounts.

(b)Recorded in selling, general and administrative expenses.

Juice Transaction

In the 12 weeks ended March 19, 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 TBG, operating across North America and Europe. In the United States, PepsiCo acts as the exclusive distributor for TBG’s portfolio of brands for small-format and foodservice customers with chilled direct-store-delivery. We have significant influence over our investment in TBG and account for our investment under the equity method, recognizing our proportionate share of TBG’s earnings on our income statement (recorded in selling, general and administrative expenses).

As a result of this transaction, in the year ended December 31, 2022, we recorded a pre-tax gain of $3.3 billion ($2.9 billion after-tax or $2.08 per share) in our PBNA and Europe divisions, including $520 million related to the remeasurement of our 39% ownership in TBG at fair value using a combination of the transaction price, discounted cash flows and an option pricing model related to our

liquidation preference in TBG. See Note 13 to our consolidated financial statements in our 2022 Form 10-K for further information.

In the 36 weeks ended September 3, 2022, we recorded a pre-tax gain of $3.3 billion ($2.9 billion after-tax or $2.07 per share) in our PBNA and Europe divisions.

In the 36 weeks ended September 9, 2023, we recognized impairment charges related to our TBG investment. See Note 9 for further information.