Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

PepsiCo Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Acquired franchise rights	840)	837)	976)	976)	846)
Customer relationships	560)	571)	623)	642)	457)
Brands	1,093)	1,097)	1,151)	1,348)	1,326)
Other identifiable intangibles	449)	447)	451)	474)	459)
Amortizable intangible assets, gross	2,942)	2,952)	3,201)	3,440)	3,088)
Accumulated amortization	(1,743)	(1,675)	(1,663)	(1,737)	(1,655)
Amortizable intangible assets, net	1,199)	1,277)	1,538)	1,703)	1,433)
Goodwill	17,728)	18,202)	18,381)	18,757)	15,501)
Reacquired franchise rights	7,533)	7,482)	7,548)	7,603)	7,594)
Acquired franchise rights	1,891)	1,906)	1,696)	1,708)	1,674)
Brands	4,306)	4,921)	7,883)	8,301)	5,342)
Indefinite-lived intangible assets	31,458)	32,511)	35,508)	36,369)	30,111)
Intangible assets	32,657)	33,788)	37,046)	38,072)	31,544)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	PepsiCo Inc. goodwill decreased from 2021 to 2022 and from 2022 to 2023.
Intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	PepsiCo Inc. intangible assets decreased from 2021 to 2022 and from 2022 to 2023.

PepsiCo Inc., adjustments to financial statements

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Adjustment to Total Assets
Total assets (as reported)	100,495)	92,187)	92,377)	92,918)	78,547)
Less: Goodwill	17,728)	18,202)	18,381)	18,757)	15,501)
Total assets (adjusted)	82,767)	73,985)	73,996)	74,161)	63,046)
Adjustment to Total PepsiCo Common Shareholders’ Equity
Total PepsiCo common shareholders’ equity (as reported)	18,503)	17,149)	16,043)	13,454)	14,786)
Less: Goodwill	17,728)	18,202)	18,381)	18,757)	15,501)
Total PepsiCo common shareholders’ equity (adjusted)	775)	(1,053)	(2,338)	(5,303)	(715)
Adjustment to Net Income Attributable To PepsiCo
Net income attributable to PepsiCo (as reported)	9,074)	8,910)	7,618)	7,120)	7,314)
Add: Goodwill impairment charges	290)	—)	—)	—)	—)
Net income attributable to PepsiCo (adjusted)	9,364)	8,910)	7,618)	7,120)	7,314)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

PepsiCo Inc., Financial Data: Reported vs. Adjusted

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PepsiCo Inc., adjusted financial ratios

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Net Profit Margin
Reported net profit margin	9.92%	10.31%	9.59%	10.12%	10.89%
Adjusted net profit margin	10.24%	10.31%	9.59%	10.12%	10.89%
Total Asset Turnover
Reported total asset turnover	0.91	0.94	0.86	0.76	0.86
Adjusted total asset turnover	1.11	1.17	1.07	0.95	1.07
Financial Leverage
Reported financial leverage	5.43	5.38	5.76	6.91	5.31
Adjusted financial leverage	106.80	—	—	—	—
Return on Equity (ROE)
Reported ROE	49.04%	51.96%	47.48%	52.92%	49.47%
Adjusted ROE	1,208.26%	—	—	—	—
Return on Assets (ROA)
Reported ROA	9.03%	9.67%	8.25%	7.66%	9.31%
Adjusted ROA	11.31%	12.04%	10.30%	9.60%	11.60%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	PepsiCo Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	PepsiCo Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	PepsiCo Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

PepsiCo Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to PepsiCo	9,074)	8,910)	7,618)	7,120)	7,314)
Net revenue	91,471)	86,392)	79,474)	70,372)	67,161)
Profitability Ratio
Net profit margin¹	9.92%	10.31%	9.59%	10.12%	10.89%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to PepsiCo	9,364)	8,910)	7,618)	7,120)	7,314)
Net revenue	91,471)	86,392)	79,474)	70,372)	67,161)
Profitability Ratio
Adjusted net profit margin²	10.24%	10.31%	9.59%	10.12%	10.89%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to PepsiCo ÷ Net revenue
= 100 × 9,074 ÷ 91,471 = 9.92%

² Adjusted net profit margin = 100 × Adjusted net income attributable to PepsiCo ÷ Net revenue
= 100 × 9,364 ÷ 91,471 = 10.24%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	PepsiCo Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net revenue	91,471)	86,392)	79,474)	70,372)	67,161)
Total assets	100,495)	92,187)	92,377)	92,918)	78,547)
Activity Ratio
Total asset turnover¹	0.91	0.94	0.86	0.76	0.86
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenue	91,471)	86,392)	79,474)	70,372)	67,161)
Adjusted total assets	82,767)	73,985)	73,996)	74,161)	63,046)
Activity Ratio
Adjusted total asset turnover²	1.11	1.17	1.07	0.95	1.07

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Total asset turnover = Net revenue ÷ Total assets
= 91,471 ÷ 100,495 = 0.91

² Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 91,471 ÷ 82,767 = 1.11

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	PepsiCo Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	100,495)	92,187)	92,377)	92,918)	78,547)
Total PepsiCo common shareholders’ equity	18,503)	17,149)	16,043)	13,454)	14,786)
Solvency Ratio
Financial leverage¹	5.43	5.38	5.76	6.91	5.31
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	82,767)	73,985)	73,996)	74,161)	63,046)
Adjusted total PepsiCo common shareholders’ equity	775)	(1,053)	(2,338)	(5,303)	(715)
Solvency Ratio
Adjusted financial leverage²	106.80	—	—	—	—

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total PepsiCo common shareholders’ equity
= 100,495 ÷ 18,503 = 5.43

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total PepsiCo common shareholders’ equity
= 82,767 ÷ 775 = 106.80

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	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to PepsiCo	9,074)	8,910)	7,618)	7,120)	7,314)
Total PepsiCo common shareholders’ equity	18,503)	17,149)	16,043)	13,454)	14,786)
Profitability Ratio
ROE¹	49.04%	51.96%	47.48%	52.92%	49.47%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to PepsiCo	9,364)	8,910)	7,618)	7,120)	7,314)
Adjusted total PepsiCo common shareholders’ equity	775)	(1,053)	(2,338)	(5,303)	(715)
Profitability Ratio
Adjusted ROE²	1,208.26%	—	—	—	—

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ ROE = 100 × Net income attributable to PepsiCo ÷ Total PepsiCo common shareholders’ equity
= 100 × 9,074 ÷ 18,503 = 49.04%

² Adjusted ROE = 100 × Adjusted net income attributable to PepsiCo ÷ Adjusted total PepsiCo common shareholders’ equity
= 100 × 9,364 ÷ 775 = 1,208.26%

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	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to PepsiCo	9,074)	8,910)	7,618)	7,120)	7,314)
Total assets	100,495)	92,187)	92,377)	92,918)	78,547)
Profitability Ratio
ROA¹	9.03%	9.67%	8.25%	7.66%	9.31%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to PepsiCo	9,364)	8,910)	7,618)	7,120)	7,314)
Adjusted total assets	82,767)	73,985)	73,996)	74,161)	63,046)
Profitability Ratio
Adjusted ROA²	11.31%	12.04%	10.30%	9.60%	11.60%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ ROA = 100 × Net income attributable to PepsiCo ÷ Total assets
= 100 × 9,074 ÷ 100,495 = 9.03%

² Adjusted ROA = 100 × Adjusted net income attributable to PepsiCo ÷ Adjusted total assets
= 100 × 9,364 ÷ 82,767 = 11.31%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	PepsiCo Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

PepsiCo Inc. (NASDAQ:PEP)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

PepsiCo Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

PepsiCo Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)