Restructuring and Impairment Charges

3 Months Ended

Mar. 21, 2026

Restructuring and Related Activities [Abstract]

2019 Multi-Year Productivity Plan (2019 Productivity Plan)

The 2019 Productivity Plan leverages new technology and business models to further simplify, harmonize and automate processes; re-engineers our go-to-market and information systems, including deploying the right automation for each market; and simplifies our organization and optimizes our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 2024, we further expanded and extended the plan through the end of 2030 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $6.15 billion, including cash expenditures of approximately $5.1 billion. These pre-tax charges are expected to consist of approximately 50% of severance and other employee-related costs, 15% for asset impairments (all non-cash) resulting from plant closures and related actions, and 35% for other costs associated with the implementation of our initiatives.

The total plan pre-tax charges are expected to be incurred by segment approximately as follows:


	PFNA		PBNA		IB Franchise		EMEA		LatAm Foods		Asia Pacific Foods		Corporate
Expected pre-tax charges	20	%	25	%	2	%	25	%	10	%	3	%	15	%

A summary of our 2019 Productivity Plan charges is as follows:


	12 Weeks Ended
		3/21/2026		3/22/2025
Cost of sales		$	19	$	1
Selling, general and administrative expenses		113		196

Other pension and retiree medical benefits expense		1		16
Total restructuring and impairment charges		$	133	$	213
After-tax amount		$	102	$	191
Impact on net income attributable to PepsiCo per common share		$	(0.07)	$	(0.14)


	12 Weeks Ended			Plan-to-Date
		3/21/2026		3/22/2025		through 3/21/2026
PFNA		$	75	$	24	$	851
PBNA		17		125		803
IB Franchise		7		2		72
EMEA		23		13		979
LatAm Foods		3		7		302
Asia Pacific Foods		1		1		100
Corporate		6		25		490
		132		197		3,597
Other pension and retiree medical benefits expense		1		16		146
Total		$	133	$	213	$	3,743


	12 Weeks Ended			Plan-to-Date
		3/21/2026		3/22/2025		through 3/21/2026
Severance and other employee costs		$	36	$	58	$	1,825
Asset impairments		59		2		605
Other costs		38		153		1,313
Total		$	133	$	213	$	3,743

Severance and other employee costs primarily include severance and other termination benefits. Other costs primarily include costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees.

A summary of our 2019 Productivity Plan activity for the 12 weeks ended March 21, 2026 is as follows:


	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
Liability as of December 27, 2025	$	308	$	—	$	18	$	326
Restructuring charges	36		59		38		133
Cash payments	(97)		—		(48)		(145)
Non-cash charges and translation	(1)		(59)		—		(60)
Liability as of March 21, 2026	$	246	$	—	$	8	$	254

The majority of the restructuring accrual at March 21, 2026 is expected to be paid within a year.

Other Productivity Initiatives

There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2019 Productivity Plan.

We regularly evaluate different productivity initiatives beyond the productivity plan and other initiatives described above.