Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

PepsiCo Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
U.S. Federal	1,133)	1,137)	702)	715)	652)
Foreign	1,201)	1,027)	955)	932)	807)
State	309)	246)	44)	110)	196)
Current	2,643)	2,410)	1,701)	1,757)	1,655)
U.S. Federal	(109)	22)	375)	273)	325)
Foreign	(212)	(709)	(14)	(167)	(31)
State	(60)	4)	80)	31)	10)
Deferred	(381)	(683)	441)	137)	304)
Provision for income taxes	2,262)	1,727)	2,142)	1,894)	1,959)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	PepsiCo Inc. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	PepsiCo Inc. deferred decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	PepsiCo Inc. provision for income taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

PepsiCo Inc., effective income tax rate (EITR) reconciliation

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
U.S. Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State income tax, net of U.S. Federal tax benefit	1.80%	1.80%	1.00%	1.20%	1.60%
Lower taxes on foreign results	-2.50%	-1.50%	-1.60%	-0.80%	-0.90%
One-time mandatory transition tax, TCJ Act	0.00%	0.80%	1.90%	0.00%	-0.10%
Juice Transaction	-0.10%	-2.40%	0.00%	0.00%	0.00%
Tax settlements	0.00%	-3.00%	0.00%	0.00%	0.00%
Other, net	-0.40%	-0.60%	-0.50%	-0.50%	-0.60%
Annual tax rate	19.80%	16.10%	21.80%	20.90%	21.00%

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
Annual tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	PepsiCo Inc. annual tax rate decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

PepsiCo Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Net carryforwards	6,877)	5,342)	4,974)	5,008)	4,168)
Intangible assets other than nondeductible goodwill	1,758)	1,614)	1,111)	1,146)	793)
Share-based compensation	137)	120)	98)	90)	94)
Retiree medical benefits	114)	118)	147)	153)	154)
Other employee-related benefits	412)	349)	379)	373)	350)
Pension benefits	—)	—)	—)	80)	104)
Deductible state tax and interest benefits	176)	144)	149)	150)	126)
Lease liabilities	660)	534)	450)	371)	345)
Capitalized research and development	210)	150)	—)	—)	—)
Other	1,031)	1,050)	842)	866)	741)
Gross deferred tax assets	11,375)	9,421)	8,150)	8,237)	6,875)
Valuation allowances	(6,478)	(5,013)	(4,628)	(4,686)	(3,599)
Deferred tax assets, net	4,897)	4,408)	3,522)	3,551)	3,276)
Debt guarantee of wholly-owned subsidiary	(578)	(578)	(578)	(578)	(578)
Property, plant and equipment	(1,978)	(2,126)	(2,036)	(1,851)	(1,583)
Recapture of net operating losses	(492)	(492)	(504)	(504)	(335)
Pension liabilities	(167)	(189)	(216)	—)	—)
Right-of-use assets	(660)	(534)	(450)	(371)	(345)
Investment in TBG	(93)	(186)	—)	—)	—)
Other	(350)	(232)	(254)	(159)	(167)
Deferred tax liabilities	(4,318)	(4,337)	(4,038)	(3,463)	(3,008)
Net deferred tax assets (liabilities)	579)	71)	(516)	88)	268)

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
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	PepsiCo Inc. gross deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, net	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	PepsiCo Inc. deferred tax assets, net increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	PepsiCo Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

PepsiCo Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
	Deferred tax assets	4,474)	4,204)	4,310)	4,372)	4,359)
	Deferred tax liabilities	3,895)	4,133)	4,826)	4,284)	4,091)

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
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	PepsiCo Inc. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	PepsiCo Inc. deferred tax liabilities 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: Noncurrent deferred tax assets, net	4,474)	4,204)	4,310)	4,372)	4,359)
Total assets (adjusted)	96,021)	87,983)	88,067)	88,546)	74,188)
Adjustment to Total Liabilities
Total liabilities (as reported)	81,858)	74,914)	76,226)	79,366)	63,679)
Less: Noncurrent deferred tax liabilities, net	3,895)	4,133)	4,826)	4,284)	4,091)
Total liabilities (adjusted)	77,963)	70,781)	71,400)	75,082)	59,588)
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: Net deferred tax assets (liabilities)	579)	71)	(516)	88)	268)
Total PepsiCo common shareholders’ equity (adjusted)	17,924)	17,078)	16,559)	13,366)	14,518)
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: Deferred income tax expense (benefit)	(381)	(683)	441)	137)	304)
Net income attributable to PepsiCo (adjusted)	8,693)	8,227)	8,059)	7,257)	7,618)

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	9.50%	9.52%	10.14%	10.31%	11.34%
Total Asset Turnover
Reported total asset turnover	0.91	0.94	0.86	0.76	0.86
Adjusted total asset turnover	0.95	0.98	0.90	0.79	0.91
Financial Leverage
Reported financial leverage	5.43	5.38	5.76	6.91	5.31
Adjusted financial leverage	5.36	5.15	5.32	6.62	5.11
Return on Equity (ROE)
Reported ROE	49.04%	51.96%	47.48%	52.92%	49.47%
Adjusted ROE	48.50%	48.17%	48.67%	54.29%	52.47%
Return on Assets (ROA)
Reported ROA	9.03%	9.67%	8.25%	7.66%	9.31%
Adjusted ROA	9.05%	9.35%	9.15%	8.20%	10.27%

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 total revenue.	PepsiCo Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and 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.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	PepsiCo Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	PepsiCo Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved 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 deteriorated significantly 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to PepsiCo	8,693)	8,227)	8,059)	7,257)	7,618)
Net revenue	91,471)	86,392)	79,474)	70,372)	67,161)
Profitability Ratio
Adjusted net profit margin²	9.50%	9.52%	10.14%	10.31%	11.34%

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 × 8,693 ÷ 91,471 = 9.50%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	PepsiCo Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenue	91,471)	86,392)	79,474)	70,372)	67,161)
Adjusted total assets	96,021)	87,983)	88,067)	88,546)	74,188)
Activity Ratio
Adjusted total asset turnover²	0.95	0.98	0.90	0.79	0.91

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 ÷ 96,021 = 0.95

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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.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	96,021)	87,983)	88,067)	88,546)	74,188)
Adjusted total PepsiCo common shareholders’ equity	17,924)	17,078)	16,559)	13,366)	14,518)
Solvency Ratio
Adjusted financial leverage²	5.36	5.15	5.32	6.62	5.11

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
= 96,021 ÷ 17,924 = 5.36

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	PepsiCo Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to PepsiCo	8,693)	8,227)	8,059)	7,257)	7,618)
Adjusted total PepsiCo common shareholders’ equity	17,924)	17,078)	16,559)	13,366)	14,518)
Profitability Ratio
Adjusted ROE²	48.50%	48.17%	48.67%	54.29%	52.47%

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 × 8,693 ÷ 17,924 = 48.50%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	PepsiCo Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to PepsiCo	8,693)	8,227)	8,059)	7,257)	7,618)
Adjusted total assets	96,021)	87,983)	88,067)	88,546)	74,188)
Profitability Ratio
Adjusted ROA²	9.05%	9.35%	9.15%	8.20%	10.27%

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 × 8,693 ÷ 96,021 = 9.05%

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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 deteriorated significantly from 2022 to 2023.

PepsiCo Inc. (NASDAQ:PEP)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

PepsiCo Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (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)