Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

PepsiCo Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 27, 2025	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021
Net income	8,295)	9,626)	9,155)	8,978)	7,679)
Depreciation and amortization	3,451)	3,160)	2,948)	2,763)	2,710)
Gain associated with the Juice Transaction	—)	—)	—)	(3,321)	—)
Impairment and other charges	1,946)	714)	1,230)	3,618)	—)
Product recall-related impact	—)	187)	136)	—)	—)
Cash payments for product recall-related impact	(6)	(148)	—)	—)	—)
Operating lease right-of-use asset amortization	727)	655)	570)	517)	505)
Stock-based compensation expense	288)	362)	380)	343)	301)
Restructuring and impairment charges	983)	727)	445)	411)	247)
Cash payments for restructuring charges	(796)	(436)	(434)	(224)	(256)
Acquisition and divestiture-related charges	453)	22)	41)	—)	—)
Cash payments for acquisition and divestiture-related charges	(228)	(18)	(41)	—)	—)
Pension and retiree medical plan expenses	504)	414)	150)	419)	123)
Pension and retiree medical plan contributions	(472)	(348)	(410)	(384)	(785)
Deferred income taxes and other tax charges and credits	71)	(42)	(271)	(873)	298)
Tax expense related to the TCJ Act	—)	—)	—)	86)	190)
Tax payments related to the TCJ Act	(772)	(579)	(309)	(309)	(309)
Accounts and notes receivable	(580)	(138)	(793)	(1,763)	(651)
Inventories	(150)	(314)	(261)	(1,142)	(582)
Prepaid expenses and other current assets	195)	40)	(13)	118)	159)
Accounts payable and other current liabilities	(677)	(943)	420)	1,842)	1,762)
Income taxes payable	(433)	(123)	310)	57)	30)
Change in assets and liabilities	(1,645)	(1,478)	(337)	(888)	718)
Other, net	(712)	(311)	189)	(325)	195)
Net cash provided by operating activities	12,087)	12,507)	13,442)	10,811)	11,616)
Capital spending	(4,415)	(5,318)	(5,518)	(5,207)	(4,625)
Sales of property, plant and equipment	528)	342)	198)	251)	166)
Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of intangible and other assets	(3,391)	(256)	(314)	(873)	(61)
Proceeds associated with the Juice Transaction	—)	—)	—)	3,456)	—)
Other divestitures, sales of investments in noncontrolled affiliates and other assets	39)	166)	75)	49)	169)
Short-term investments, original maturity more than three months, purchases	(190)	(425)	(555)	(291)	—)
Short-term investments, original maturity more than three months, maturities	605)	—)	556)	150)	1,135)
Short-term investments, original maturity more than three months, sales	—)	—)	12)	—)	—)
Short-term investments, original maturity three months or less, net	45)	5)	3)	24)	(58)
Other investing, net	(100)	14)	48)	11)	5)
Net cash used for investing activities	(6,879)	(5,472)	(5,495)	(2,430)	(3,269)
Proceeds from issuances of long-term debt	8,189)	4,042)	5,482)	3,377)	4,122)
Payments of long-term debt	(4,082)	(3,886)	(3,005)	(2,458)	(3,455)
Debt redemptions	—)	—)	—)	(1,716)	(4,844)
Short-term borrowings, original maturity more than three months, proceeds	6,391)	5,786)	5,428)	1,969)	8)
Short-term borrowings, original maturity more than three months, payments	(7,920)	(5,639)	(3,106)	(1,951)	(397)
Short-term borrowings, original maturity three months or less, net	1,170)	392)	(29)	(31)	434)
Payments of acquisition-related contingent consideration	—)	—)	—)	—)	(773)
Cash dividends paid	(7,638)	(7,229)	(6,682)	(6,172)	(5,815)
Share repurchases	(1,000)	(1,000)	(1,000)	(1,500)	(106)
Proceeds from exercises of stock options	97)	166)	116)	138)	185)
Withholding tax payments on restricted stock units (RSUs) and performance stock units (PSUs) converted	(113)	(135)	(140)	(107)	(92)
Other financing	(73)	(53)	(73)	(72)	(47)
Net cash used for financing activities	(4,979)	(7,556)	(3,009)	(8,523)	(10,780)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	422)	(687)	(277)	(465)	(114)
Net increase (decrease) in cash and cash equivalents and restricted cash	651)	(1,208)	4,661)	(607)	(2,547)
Cash and cash equivalents and restricted cash, beginning of year	8,553)	9,761)	5,100)	5,707)	8,254)
Cash and cash equivalents and restricted cash, end of year	9,204)	8,553)	9,761)	5,100)	5,707)

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).

The financial information reveals a generally strong and positive cash flow from operating activities over the five-year period, though with some fluctuations. Net income demonstrates an initial increase from 2021 to 2023, peaking at US$9,155 million, before declining in 2025 to US$8,295 million. Several non-cash adjustments significantly impact the cash flow from operations, and a review of these adjustments provides insight into the company’s financial performance.

Operating Activities: Net cash provided by operating activities generally increased from US$11,616 million in 2021 to US$13,442 million in 2023, before decreasing to US$12,087 million in 2025. This indicates a consistent ability to generate cash from core business operations. Significant contributors to this cash flow include net income and substantial depreciation and amortization expenses, which consistently increased over the period, reaching US$3,451 million in 2025. Several items show volatility, including impairment and other charges, restructuring and impairment charges, and deferred income taxes. The Juice Transaction in 2022 resulted in a significant negative impact, offset by proceeds in the same year. Product recall-related impacts and associated cash payments began to appear in 2023 and 2024, respectively, suggesting potential quality control or safety concerns. Changes in accounts receivable, inventories, and accounts payable also contribute to fluctuations in operating cash flow.
Investing Activities: Cash flow from investing activities is consistently negative, indicating ongoing investment in the business. Capital spending represents the largest cash outflow, remaining relatively stable between approximately US$4,625 million and US$5,518 million annually. Acquisitions, net of cash acquired, also represent a significant cash outflow, particularly increasing to US$3,391 million in 2025. Proceeds from the Juice Transaction in 2022 provided a substantial inflow, partially offsetting the outflows. Fluctuations in short-term investments are also observed, with both purchases and maturities impacting cash flow.
Financing Activities: Financing activities demonstrate significant cash outflows, primarily driven by cash dividends paid and share repurchases. Cash dividends paid consistently decreased from US$5,815 million in 2021 to US$7,638 million in 2025. Share repurchases were substantial in 2022 and 2023, at US$1,500 million and US$1,000 million respectively, and continued at US$1,000 million in 2024 and 2025. The company actively manages its debt, with proceeds from issuances generally offsetting payments of long-term debt and debt redemptions. Short-term borrowings are also utilized, with both proceeds and payments fluctuating annually. Proceeds from exercises of stock options provide a minor inflow.
Cash Position & Exchange Rate Impact: The company maintains a substantial cash balance, increasing from US$5,707 million in 2021 to US$9,204 million in 2025, despite overall net cash outflows in several years. The effect of exchange rate changes on cash and cash equivalents is variable, ranging from a negative impact of US$687 million in 2024 to a positive impact of US$422 million in 2025, indicating exposure to foreign currency fluctuations. The net increase or decrease in cash and cash equivalents varies annually, reflecting the combined impact of operating, investing, and financing activities.

Overall, the company demonstrates a strong capacity to generate cash from operations, which is partially offset by significant investments in capital expenditures, acquisitions, and returns to shareholders through dividends and share repurchases. The fluctuations in certain non-cash adjustments and the impact of exchange rate changes warrant continued monitoring.

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PepsiCo Inc. (NASDAQ:PEP)

Cash Flow Statement