PepsiCo Inc., balance sheet: property, plant and equipment

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Land	1,159)	1,142)	1,123)	1,171)	1,130)
Buildings and improvements	11,579)	10,816)	10,279)	10,214)	9,314)
Machinery and equipment, including fleet and software	36,006)	33,335)	31,486)	31,276)	29,390)
Construction in progress	5,695)	4,491)	3,940)	3,679)	3,169)
Property, plant and equipment, gross	54,439)	49,784)	46,828)	46,340)	43,003)
Accumulated depreciation	(27,400)	(25,493)	(24,421)	(24,971)	(23,698)
Property, plant and equipment, net	27,039)	24,291)	22,407)	21,369)	19,305)

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Item	Description	The company
Property, plant and equipment, gross	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	PepsiCo Inc. property, plant and equipment, gross increased from 2021 to 2022 and from 2022 to 2023.
Property, plant and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	PepsiCo Inc. property, plant and equipment, net increased from 2021 to 2022 and from 2022 to 2023.

PepsiCo Inc., asset age ratios

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Average age ratio	51.43%	52.41%	53.43%	55.28%	56.59%
Estimated total useful life (years)	20	19	18	19	19
Estimated age, time elapsed since purchase (years)	10	10	10	11	10
Estimated remaining life (years)	10	9	9	9	8

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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	PepsiCo Inc. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	PepsiCo Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	PepsiCo Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Estimated remaining life		PepsiCo Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	27,400)	25,493)	24,421)	24,971)	23,698)
Property, plant and equipment, gross	54,439)	49,784)	46,828)	46,340)	43,003)
Land	1,159)	1,142)	1,123)	1,171)	1,130)
Asset Age Ratio
Average age¹	51.43%	52.41%	53.43%	55.28%	56.59%

2023 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × 27,400 ÷ (54,439 – 1,159) = 51.43%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	PepsiCo Inc. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross	54,439)	49,784)	46,828)	46,340)	43,003)
Land	1,159)	1,142)	1,123)	1,171)	1,130)
Depreciation expense	2,714)	2,523)	2,484)	2,335)	2,257)
Asset Age Ratio (Years)
Estimated total useful life¹	20	19	18	19	19

2023 Calculations

¹ Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense
= (54,439 – 1,159) ÷ 2,714 = 20

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	PepsiCo Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	27,400)	25,493)	24,421)	24,971)	23,698)
Depreciation expense	2,714)	2,523)	2,484)	2,335)	2,257)
Asset Age Ratio (Years)
Time elapsed since purchase¹	10	10	10	11	10

2023 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 27,400 ÷ 2,714 = 10

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	PepsiCo Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, net	27,039)	24,291)	22,407)	21,369)	19,305)
Land	1,159)	1,142)	1,123)	1,171)	1,130)
Depreciation expense	2,714)	2,523)	2,484)	2,335)	2,257)
Asset Age Ratio (Years)
Estimated remaining life¹	10	9	9	9	8

2023 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (27,039 – 1,159) ÷ 2,714 = 10

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Asset age ratio	Description	The company
Estimated remaining life		PepsiCo Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

PepsiCo Inc. (NASDAQ:PEP)

Analysis of Property, Plant and Equipment