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Document And Entity Information (USD $)
12 Months Ended
Dec. 29, 2012
Feb. 13, 2013
Jun. 15, 2012
Document And Entity Information [Abstract]
Document Type 10-K
Amendment Flag false
Document Period End Date Dec 29, 2012
Document Fiscal Year Focus 2012
Document Fiscal Period Focus FY
Trading Symbol PEP
Entity Registrant Name PEPSICO INC
Entity Central Index Key 0000077476
Current Fiscal Year End Date --12-29
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 1,542,782,724
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Entity Well-known Seasoned Issuer Yes
Entity Public Float $ 108,253,443,093.84
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Consolidated Statement of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Income Statement [Abstract]
Net Revenue $ 65,492 $ 66,504 $ 57,838
Cost of sales 31,291 31,593 26,575
Selling, general and administrative expenses 24,970 25,145 22,814
Amortization of intangible assets 119 133 117
Operating Profit 9,112 [1] 9,633 [1] 8,332 [1]
Bottling equity income       735
Interest expense (899) (856) (903)
Interest income and other 91 57 68
Income before income taxes 8,304 8,834 8,232
Provision for income taxes 2,090 2,372 1,894
Net income 6,214 6,462 6,338
Less: Net income attributable to noncontrolling interests 36 19 18
Net Income Attributable to PepsiCo $ 6,178 $ 6,443 $ 6,320
Net Income Attributable to PepsiCo per Common Share
Basic $ 3.96 $ 4.08 $ 3.97
Diluted $ 3.92 $ 4.03 $ 3.91
Weighted-average common shares outstanding
Basic 1,557 [2] 1,576 [2] 1,590 [2]
Diluted 1,575 [2] 1,597 [2] 1,614 [2]
Cash dividends declared per common share $ 2.1275 $ 2.025 $ 1.89
[1] For information on the impact of restructuring, impairment and integration charges on our divisions, see Note 3 to our consolidated financial statements.
[2] Weighted-average common shares outstanding (in millions).
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Consolidated Statement of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Net income $ 6,214 $ 6,462 $ 6,338
Other Comprehensive Income
Currency translation adjustment, pre-tax amount 737 (1,464) 299
Currency translation adjustment, tax benefit/(expense)         
Currency translation adjustment, after-tax amount 737 (1,464) 299
Cash flow hedges:
Net derivative losses, pre-tax amount (50) (126) (69)
Net derivative losses, tax benefit/(expense) 10 43 23
Net derivative losses, after-tax amount (40) (83) (46)
Reclassification of net losses to net income, pre-tax amount 90 5 75
Reclassification of net losses to net income, tax benefit/(expense) (32) 4 (25)
Reclassification of net losses to net income, after-tax amount 58 9 50
Pension and retiree medical:
Net prior service (cost)/credit, pre-tax amount (32) (18) 35
Net prior service (cost)/credit, tax benefit/(expense) 12 8 (13)
Net prior service (cost)/credit, after-tax amount (20) (10) 22
Net (losses)/gains, pre-tax amount (41) (1,468) (260)
Net (losses)/gains, tax benefit/(expense) (11) 501 124
Net (losses)/gains, after-tax amount (52) (967) (136)
Unrealized (losses)/gains on securities, pre-tax amount 18 (27) 24
Unrealized (losses)/gains on securities, tax benefit/(expense)    19 (1)
Unrealized (losses)/gains on securities, net of tax 18 (8) 23
Other, pre-tax amount    (16) (25)
Other, tax benefit/(expense) 36 5 (36)
Other, after-tax amount 36 (11) (61)
Total Other Comprehensive Income (Loss), pre-tax amount 722 (3,114) 79
Total Other Comprehensive Income/(Loss), tax benefit/(expense) 15 580 72
Other Comprehensive Income/(Loss), after-tax amount 737 (2,534) 151
Comprehensive income 6,951 3,928 6,489
Comprehensive income attributable to noncontrolling interests (31) (84) (5)
Comprehensive Income Attributable to PepsiCo $ 6,920 $ 3,844 $ 6,484
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Consolidated Statement of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Operating Activities
Net income $ 6,214 $ 6,462 $ 6,338
Depreciation and amortization 2,689 2,737 2,327
Stock-based compensation expense 278 326 299
Merger and integration costs 16 329 808
Cash payments for merger and integration costs (83) (377) (385)
Restructuring and impairment charges 279 383   
Cash payments for restructuring charges (343) (31) (31)
Restructuring and other charges related to the transaction with Tingyi 176      
Cash payments for restructuring and other charges related to the transaction with Tingyi (109)      
Gain on previously held equity interests in PBG and PAS       (958)
Asset write-off       145
Non-cash foreign exchange loss related to Venezuela devaluation       120
Excess tax benefits from share-based payment arrangements (124) (70) (107)
Pension and retiree medical plan contributions (1,865) (349) (1,734)
Pension and retiree medical plan expenses 796 571 453
Bottling equity income, net of dividends       42
Deferred income taxes and other tax charges and credits 321 495 500
Change in accounts and notes receivable (250) (666) (268)
Change in inventories 144 (331) 276
Change in prepaid expenses and other current assets 89 (27) 144
Change in accounts payable and other current liabilities 548 520 488
Change in income taxes payable (97) (340) 123
Other, net (200) (688) (132)
Net Cash Provided by Operating Activities 8,479 8,944 8,448
Investing Activities
Capital spending (2,714) (3,339) (3,253)
Sales of property, plant and equipment 95 84 81
Acquisition of manufacturing and distribution rights from DPSG       (900)
Investment in WBD    (164) (463)
Cash payments related to the transaction with Tingyi (306)      
Other acquisitions and investments in noncontrolled affiliates (121) (601) (83)
Divestitures (32) 780 12
Short-term investments, by original maturity
More than three months – purchases       (12)
More than three months – maturities    21 29
Other investing, net 12 (16) (17)
Net Cash Used for Investing Activities (3,005) (5,618) (7,668)
Financing Activities
Proceeds from issuances of long-term debt 5,999 3,000 6,451
Payments of long-term debt (2,449) (1,596) (59)
Debt repurchase    (771) (500)
Short-term borrowings, by original maturity
More than three months – proceeds 549 523 227
More than three months – payments (248) (559) (96)
Three months or less, net (1,762) 339 2,351
Cash dividends paid (3,305) (3,157) (2,978)
Share repurchases – common (3,219) (2,489) (4,978)
Share repurchases – preferred (7) (7) (5)
Proceeds from exercises of stock options 1,122 945 1,038
Excess tax benefits from share-based payment arrangements 124 70 107
Acquisition of noncontrolling interests (68) (1,406) (159)
Other financing (42) (27) (13)
Net Cash (Used for)/Provided by Financing Activities (3,306) (5,135) 1,386
Effect of exchange rate changes on cash and cash equivalents 62 (67) (166)
Net Increase/(Decrease) in Cash and Cash Equivalents 2,230 (1,876) 2,000
Cash and Cash Equivalents, Beginning of Year 4,067 5,943 3,943
Cash and Cash Equivalents, End of Year 6,297 4,067 5,943
Non-cash activity:
Issuance of common stock and equity awards in connection with our acquisitions of PBG and PAS, as reflected in investing and financing activities       4,451
PBG and PAS Acquisition [Member]
Investing Activities
Acquisition, net of cash and cash equivalents acquired       (2,833)
WBD [Member]
Investing Activities
Acquisition, net of cash and cash equivalents acquired    (2,428)   
Three Months Or Less Maturity [Member]
Short-term investments, by original maturity
Three months or less, net $ 61 $ 45 $ (229)
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Consolidated Balance Sheet (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Dec. 31, 2011
ASSETS
Cash and cash equivalents $ 6,297 $ 4,067
Short-term investments 322 358
Accounts and notes receivable, net 7,041 6,912
Inventories 3,581 [1] 3,827 [1]
Prepaid expenses and other current assets 1,479 2,277
Total Current Assets 18,720 17,441
Property, Plant and Equipment, net 19,136 19,698
Amortizable Intangible Assets, net 1,781 1,888
Goodwill 16,971 16,800
Other nonamortizable intangible assets 14,744 14,557
Nonamortizable Intangible Assets 31,715 31,357
Investments in Noncontrolled Affiliates 1,633 1,477
Other Assets 1,653 1,021
Total Assets 74,638 72,882
LIABILITIES AND EQUITY
Short-term obligations 4,815 6,205
Accounts payable and other current liabilities 11,903 11,757
Income taxes payable 371 192
Total Current Liabilities 17,089 18,154
Long-Term Debt Obligations 23,544 20,568
Other Liabilities 6,543 8,266
Deferred Income Taxes 5,063 4,995
Total Liabilities 52,239 51,983
Commitments and Contingencies      
Preferred Stock, no par value 41 41
PepsiCo Common Shareholders’ Equity
Common stock, par value 12/3¢ per share (authorized 3,600 shares, issued, net of repurchased common stock at par value: 1,544 and 1,565 shares, respectively) 26 26
Capital in excess of par value 4,178 4,461
Retained earnings 43,158 40,316
Accumulated other comprehensive loss (5,487) (6,229)
Total PepsiCo Common Shareholders’ Equity 22,417 20,704
Noncontrolling interests 105 311
Total Equity 22,399 20,899
Total Liabilities and Equity 74,638 72,882
Preferred Stock [Member]
PepsiCo Common Shareholders’ Equity
Repurchased stock (164) (157)
Common Stock [Member]
PepsiCo Common Shareholders’ Equity
Repurchased stock $ (19,458) $ (17,870)
[1] Approximately 3%, in both 2012 and 2011, of the inventory cost was computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material.
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Consolidated Balance Sheet (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 29, 2012
Dec. 31, 2011
Statement of Financial Position [Abstract]
Preferred stock, par value      
Common stock, par value $ 0 $ 0.0167
Common stock, authorized 0 3,600
Common stock, issued 0 1,564
Repurchased common stock, shares 0 301
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Consolidated Statement of Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
Preferred Stock [Member]
Repurchased Preferred Stock [Member]
Common Stock [Member]
Capital In Excess Of Par Value [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Repurchased Common Stock [Member]
Total Common Shareholders' Equity [Member]
Noncontrolling Interests [Member]
Balance, beginning of year at Dec. 26, 2009 $ (145) $ 26 $ 250 $ 33,805 $ (3,794) $ (13,379) $ 638
Balance, outstanding, beginning of year (in shares) at Dec. 26, 2009 1,566,000,000
Balance, beginning of year (in shares) at Dec. 26, 2009 (600,000) 217,000,000
Redemptions (in shares)   
Redemptions (5)
Share repurchases (in shares) (67,000,000) (76,000,000)
Share repurchases (1) (4,977)
Stock-based compensation expense 299
Stock option exercises/RSUs converted (a) [1] (500)
Withholding tax on RSUs converted (68)
Equity issued in connection with our acquisitions of PBG and PAS, in shares 83,000,000
Equity issued in connection with our acquisitions of PBG and PAS 1 4,451
Other 95
Stock option exercises (in shares) 24,000,000
Stock option exercises 1,487
Net income attributable to PepsiCo 6,338 6,320 18
Cash dividends declared – common (3,028)
Cash dividends declared – preferred (1)
Cash dividends declared – RSUs (12)
Distributions to noncontrolling interests, net (6)
Currency translation adjustment 312 (13)
Acquisitions and divestitures (326)
Cash flow hedges:
Net derivative losses (46) (46)
Reclassification of net losses to net income 50 50
Pension and retiree medical:
Net pension and retiree medical losses (136) (280)
Reclassification of net losses to net income 166
Unrealized gains/(losses) on securities, net of tax 23 23
Other (in shares) 15,000,000
Other 6 61 129 1
Balance, end of year at Dec. 25, 2010 21,476 41 (150) 26 4,527 37,090 (3,630) (16,740) 21,273 312
Balance, outstanding, end of year (in shares) at Dec. 25, 2010 1,582,000,000
Balance, end of year (in shares) at Dec. 25, 2010 800,000 (600,000) 284,000,000
Redemptions (in shares)   
Redemptions (7)
Share repurchases (in shares) (17,000,000) (39,000,000)
Share repurchases    (2,489)
Stock-based compensation expense 326
Stock option exercises/RSUs converted (a) [1] (361)
Withholding tax on RSUs converted (56)
Equity issued in connection with our acquisitions of PBG and PAS, in shares   
Equity issued in connection with our acquisitions of PBG and PAS      
Other 25
Stock option exercises (in shares) 20,000,000
Stock option exercises 1,251
Net income attributable to PepsiCo 6,462 6,443 19
Cash dividends declared – common (3,192)
Cash dividends declared – preferred (1)
Cash dividends declared – RSUs (24)
Distributions to noncontrolling interests, net (24)
Currency translation adjustment (1,529) 65
Acquisitions and divestitures (57)
Cash flow hedges:
Net derivative losses (83) (83)
Reclassification of net losses to net income 9 9
Pension and retiree medical:
Net pension and retiree medical losses (967) (1,110)
Reclassification of net losses to net income 133
Unrealized gains/(losses) on securities, net of tax (8) (8)
Other (in shares) 2,000,000
Other    (11) 108 (4)
Balance, end of year at Dec. 31, 2011 20,899 41 (157) 26 4,461 40,316 (6,229) (17,870) 20,704 311
Balance, outstanding, end of year (in shares) at Dec. 31, 2011 1,565,000,000
Balance, end of year (in shares) at Dec. 31, 2011 800,000 (600,000) 301,000,000
Redemptions (7)
Share repurchases (in shares) (21,000,000) (47,000,000)
Share repurchases    (3,219)
Stock-based compensation expense 278
Stock option exercises/RSUs converted (a) [1] (431)
Withholding tax on RSUs converted (70)
Equity issued in connection with our acquisitions of PBG and PAS, in shares   
Equity issued in connection with our acquisitions of PBG and PAS      
Other (60)
Stock option exercises (in shares) 23,585,000 [2] 24,000,000
Stock option exercises 1,488
Net income attributable to PepsiCo 6,214 6,178 36
Cash dividends declared – common (3,312)
Cash dividends declared – preferred (1)
Cash dividends declared – RSUs (23)
Distributions to noncontrolling interests, net (37)
Currency translation adjustment 742 (5)
Acquisitions and divestitures (200)
Cash flow hedges:
Net derivative losses (40) (40)
Reclassification of net losses to net income 58 58
Pension and retiree medical:
Net pension and retiree medical losses (52) (493)
Reclassification of net losses to net income 421
Unrealized gains/(losses) on securities, net of tax 18 18
Other (in shares) (2,000,000)
Other    36 143   
Balance, end of year at Dec. 29, 2012 $ 22,399 $ 41 $ (164) $ 26 $ 4,178 $ 43,158 $ (5,487) $ (19,458) $ 22,417 $ 105
Balance, outstanding, end of year (in shares) at Dec. 29, 2012 1,544,000,000
Balance, end of year (in shares) at Dec. 29, 2012 800,000 (600,000) 322,000,000
[1] Includes total tax benefits of $84 million in 2012, $43 million in 2011 and $75 million in 2010.
[2] Options are in thousands and include options previously granted under PBG, PAS and Quaker legacy plans. No additional options or shares may be granted under the PBG, PAS and Quaker plans.
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Consolidated Statement of Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Statement of Stockholders' Equity [Abstract]
Stock option exercises/RSUs converted, tax benefit $ 84 $ 43 $ 75
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Basis of Presentation and Our Divisions
12 Months Ended
Dec. 29, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis Of Presentation and Our Divisions
Basis of Presentation and Our Divisions
Basis of Presentation
Our financial statements include the consolidated accounts of PepsiCo, Inc. and the affiliates that we control. In addition, we include our share of the results of certain other affiliates using the equity method based on our economic ownership interest, our ability to exercise significant influence over the operating or financial decisions of these affiliates or our ability to direct their economic resources. We do not control these other affiliates, as our ownership in these other affiliates is generally less than 50%. Intercompany balances and transactions are eliminated. Our fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six years. In 2011, we had an additional week of results (53rd week).
On February 26, 2010, we completed our acquisitions of PBG and PAS. The results of the acquired companies in the U.S. and Canada were reflected in our consolidated results as of the acquisition date, and the international results of the acquired companies have been reported as of the beginning of the second quarter of 2010, consistent with our monthly international reporting calendar. The results of the acquired companies in the U.S., Canada and Mexico are reported within our PAB segment, and the results of the acquired companies in Europe, including Russia, are reported within our Europe segment. Prior to our acquisitions of PBG and PAS, we recorded our share of equity income or loss from the acquired companies in bottling equity income in our income statement. Our share of income or loss from other noncontrolled affiliates is reflected as a component of selling, general and administrative expenses. Additionally, in the first quarter of 2010, in connection with our acquisitions of PBG and PAS, we recorded a gain on our previously held equity interests of $958 million, comprising $735 million which was non-taxable and recorded in bottling equity income and $223 million related to the reversal of deferred tax liabilities associated with these previously held equity interests. See Notes 8 and 15 to our consolidated financial statements, and for additional unaudited information on items affecting the comparability of our consolidated results see “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
As of the beginning of our 2010 fiscal year, the results of our Venezuelan businesses are reported under hyperinflationary accounting. See “Our Business Risks” and “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
In the first quarter of 2011, QFNA changed its method of accounting for certain U.S. inventories from the last-in, first-out (LIFO) method to the average cost method as we believe that the average cost method of accounting improves our financial reporting by better matching revenues and expenses and better reflecting the current value of inventory. The impact of this change on consolidated net income in the first quarter of 2011 was approximately $9 million (or less than a penny per share). Prior periods were not restated as the impact of the change on previously issued financial statements was not considered material.
Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw material handling facilities, are included in cost of sales. The costs of moving, storing and delivering finished product are included in selling, general and administrative expenses.
The preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Estimates are used in determining, among other items, sales incentives accruals, tax reserves, stock-based compensation, pension and retiree medical accruals, amounts and useful lives for intangible assets, and future cash flows associated with impairment testing for perpetual brands, goodwill and other long-lived assets. We evaluate our estimates on an ongoing basis using our historical experience, as well as other factors we believe appropriate under the circumstances, such as current economic conditions, and adjust or revise our estimates as circumstances change. As future events and their effect cannot be determined with precision, actual results could differ significantly from these estimates.
While our North America results are reported on a weekly calendar basis, most of our international operations report on a monthly calendar basis. In 2011, we had an additional week of results (53rd week). The following chart details our quarterly reporting schedule for all other reporting periods presented:
 
Quarter
  
U.S. and Canada
  
International
First Quarter
  
12 weeks
  
January, February
Second Quarter
  
12 weeks
  
March, April and May
Third Quarter
  
12 weeks
  
June, July and August
Fourth Quarter
  
16 weeks
  
September, October, November and December

See “Our Divisions” below, and for additional unaudited information on items affecting the comparability of our consolidated results, see “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Tabular dollars are in millions, except per share amounts. All per share amounts reflect common per share amounts, assume dilution unless noted, and are based on unrounded amounts. Certain reclassifications were made to prior years’ amounts to conform to the 2012 presentation.
Our Divisions
We manufacture or use contract manufacturers, market and sell a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, dairy products and other foods in over 200 countries and territories with our largest operations in North America (United States and Canada), Russia, Mexico, the United Kingdom and Brazil. Division results are based on how our Chief Executive Officer assesses the performance of and allocates resources to our divisions. For additional unaudited information on our divisions, see “Our Operations” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. The accounting policies for the divisions are the same as those described in Note 2, except for the following allocation methodologies:

stock-based compensation expense;
pension and retiree medical expense; and
derivatives.
Stock-Based Compensation Expense
Our divisions are held accountable for stock-based compensation expense and, therefore, this expense is allocated to our divisions as an incremental employee compensation cost. The allocation of stock-based compensation expense in 2012 was approximately 16% to FLNA, 2% to QFNA, 5% to LAF, 25% to PAB, 14% to Europe, 12% to AMEA and 26% to corporate unallocated expenses. We had similar allocations of stock-based compensation expense to our divisions in 2011 and 2010. The expense allocated to our divisions excludes any impact of changes in our assumptions during the year which reflect market conditions over which division management has no control. Therefore, any variances between allocated expense and our actual expense are recognized in corporate unallocated expenses.
Pension and Retiree Medical Expense
Pension and retiree medical service costs measured at a fixed discount rate, as well as amortization of costs related to certain pension plan amendments and gains and losses due to demographics, including salary experience, are reflected in division results for North American employees. Division results also include interest costs, measured at a fixed discount rate, for retiree medical plans. Interest costs for the pension plans, pension asset returns and the impact of pension funding, and gains and losses other than those due to demographics, are all reflected in corporate unallocated expenses. In addition, corporate unallocated expenses include the difference between the service costs measured at a fixed discount rate (included in division results as noted above) and the total service costs determined using the plans’ discount rates as disclosed in Note 7 to our consolidated financial statements.
Derivatives
We centrally manage commodity derivatives on behalf of our divisions. These commodity derivatives include agricultural products, metals and energy. Certain of these commodity derivatives do not qualify for hedge accounting treatment and are marked to market with the resulting gains and losses recognized in corporate unallocated expenses. These gains and losses are subsequently reflected in division results when the divisions take delivery of the underlying commodity. Therefore, the divisions realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in corporate unallocated expenses. These derivatives hedge underlying commodity price risk and were not entered into for speculative purposes.
 
Net Revenue
 
Operating Profit (a)
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

FLNA
$
13,574

 
$
13,322

 
$
12,573

 
$
3,646

 
$
3,621

 
$
3,376

QFNA
2,636

 
2,656

 
2,656

 
695

 
797

 
741

LAF
7,780

 
7,156

 
6,315

 
1,059

 
1,078

 
1,004

PAB
21,408

 
22,418

 
20,401

 
2,937

 
3,273

 
2,776

Europe (b)
13,441

 
13,560

 
9,602

 
1,330

 
1,210

 
1,054

AMEA
6,653

 
7,392

 
6,291

 
747

 
887

 
708

Total division
65,492

 
66,504

 
57,838

 
10,414

 
10,866

 
9,659

Corporate Unallocated

 

 

 

 

 

Mark-to-market net impact gains/(losses)






65


(102
)

91

Merger and integration charges








(78
)

(191
)
Restructuring and impairment charges






(10
)

(74
)


Pension lump sum settlement charge






(195
)




53rd week








(18
)


Venezuela currency devaluation










(129
)
Asset write-off










(145
)
Foundation contribution










(100
)
Other






(1,162
)
 
(961
)
 
(853
)
 
$
65,492

 
$
66,504

 
$
57,838

 
$
9,112

 
$
9,633

 
$
8,332

(a)
For information on the impact of restructuring, impairment and integration charges on our divisions, see Note 3 to our consolidated financial
statements.
(b) Change in net revenue in 2011 relates primarily to our acquisition of WBD.
Corporate
Corporate includes costs of our corporate headquarters, centrally managed initiatives such as our ongoing global business transformation initiative and research and development projects, unallocated insurance and benefit programs, foreign exchange transaction gains and losses, certain commodity derivative gains and losses and certain other items.
Other Division Information 
 
Total Assets

Capital Spending
 
2012


2011


2010


2012


2011


2010

FLNA
$
5,332


$
5,384


$
5,276


$
365


$
439


$
515

QFNA
966


1,024


1,062


37


43


48

LAF
4,993


4,721


4,041


436


413


370

PAB
30,899


31,142


31,571


702


1,006


973

Europe (a)
19,218


18,461


13,018


575


588


517

AMEA
5,738


6,038


5,557


510


693


610

Total division
67,146


66,770


60,525


2,625


3,182


3,033

Corporate (b)
7,492


6,112


7,389


89


157


220

Investments in bottling affiliates




239








$
74,638


$
72,882


$
68,153


$
2,714


$
3,339


$
3,253


(a)
Changes in total assets in 2011 relate primarily to our acquisition of WBD.
(b)
Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments and property, plant and equipment.
 
Amortization of Intangible
Assets

Depreciation and
Other Amortization
 
2012


2011


2010


2012


2011


2010

FLNA
$
7


$
7


$
7


$
445


$
458


$
448

QFNA






53


54


52

LAF
10


10


6


248


238


213

PAB
59


65


56


855


865


749

Europe
36


39


35


522


522


355

AMEA
7


12


13


305


350


294

Total division
119


133


117


2,428


2,487


2,111

Corporate






142


117


99


$
119


$
133


$
117


$
2,570


$
2,604


$
2,210


 
 
Net Revenue

Long-Lived Assets(a)
 
2012


2011


2010


2012


2011


2010

U.S.
$
33,348


$
33,053


$
30,618


$
28,344


$
28,999


$
28,631

Russia (b)
4,861


4,749


1,890


8,603


8,121


2,744

Mexico
3,955


4,782


4,531


1,237


1,027


1,671

Canada
3,290


3,364


3,081


3,294


3,097


3,133

United Kingdom
2,102


2,075


1,888


1,053


1,011


1,019

Brazil
1,866

 
1,838

 
1,582

 
1,134

 
1,124

 
677

All other countries
16,070


16,643


14,248


10,600


11,041


11,020


$
65,492


$
66,504


$
57,838


$
54,265


$
54,420


$
48,895


(a)
Long-lived assets represent property, plant and equipment, nonamortizable intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used.
(b)
Change in 2011 relates primarily to our acquisition of WB
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Our Significant Accounting Policies
12 Months Ended
Dec. 29, 2012
Accounting Policies [Abstract]
Our Significant Accounting Policies
Our Significant Accounting Policies
Revenue Recognition
We recognize revenue upon shipment or delivery to our customers based on written sales terms that do not allow for a right of return. However, our policy for DSD and certain chilled products is to remove and replace damaged and out-of-date products from store shelves to ensure that consumers receive the product quality and freshness they expect. Similarly, our policy for certain warehouse-distributed products is to replace damaged and out-of-date products. Based on our experience with this practice, we have reserved for anticipated damaged and out-of-date products. For additional unaudited information on our revenue recognition and related policies, including our policy on bad debts, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. We are exposed to concentration of credit risk by our customers, including Wal-Mart. In 2012, Wal-Mart (including Sam’s) represented approximately 11% of our total net revenue, including concentrate sales to our independent bottlers which are used in finished goods sold by them to Wal-Mart. We have not experienced credit issues with these customers.
Total Marketplace Spending
We offer sales incentives and discounts through various programs to customers and consumers. Total marketplace spending includes sales incentives, discounts, advertising and other marketing activities. Sales incentives and discounts are primarily accounted for as a reduction of revenue and totaled $34.7 billion in 2012, $34.6 billion in 2011 and $29.1 billion in 2010. Sales incentives and discounts include payments to customers for performing merchandising activities on our behalf, such as payments for in-store displays, payments to gain distribution of new products, payments for shelf space and discounts to promote lower retail prices. It also includes support provided to our independent bottlers through funding of advertising and other marketing activities. While most of these incentive arrangements have terms of no more than one year, certain arrangements, such as fountain pouring rights, may extend beyond one year. Costs incurred to obtain these arrangements are recognized over the shorter of the economic or contractual life, as a reduction of revenue, and the remaining balances of $335 million as of December 29, 2012 and $313 million as of December 31, 2011, are included in current assets and other assets on our balance sheet. For additional unaudited information on our sales incentives, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Advertising and other marketing activities, reported as selling, general and administrative expenses, totaled $3.7 billion in 2012, $3.5 billion in 2011 and $3.4 billion in 2010, including advertising expenses of $2.2 billion in 2012 and $1.9 billion in both 2011 and 2010. Deferred advertising costs are not expensed until the year first used and consist of:
media and personal service prepayments;
promotional materials in inventory; and
production costs of future media advertising.
Deferred advertising costs of $88 million and $163 million at year-end 2012 and 2011, respectively, are classified as prepaid expenses on our balance sheet.
Distribution Costs
Distribution costs, including the costs of shipping and handling activities, are reported as selling, general and administrative expenses. Shipping and handling expenses were $9.1 billion in 2012, $9.2 billion in 2011 and $7.7 billion in 2010.
Cash Equivalents
Cash equivalents are highly liquid investments with original maturities of three months or less.
Software Costs
We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project and (iii) interest costs incurred while developing internal-use computer software. Capitalized software costs are included in property, plant and equipment on our balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software, which approximate 5 to 10 years. Software amortization totaled $196 million in 2012, $156 million in 2011 and $137 million in 2010. Net capitalized software and development costs were $1.1 billion as of December 29, 2012 and $1.3 billion as of December 31, 2011.
Commitments and Contingencies
We are subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as well as commitments under contractual and other commercial obligations. We recognize liabilities for contingencies and commitments when a loss is probable and estimable. For additional information on our commitments, see Note 9 to our consolidated financial statements.
Research and Development
We engage in a variety of research and development activities and continue to invest to accelerate growth in these activities and to drive innovation globally. These activities principally involve the development of new products, improvement in the quality of existing products, improvement and modernization of production processes, and the development and implementation of new technologies to enhance the quality and value of both current and proposed product lines. Consumer research is excluded from research and development costs and included in other marketing costs. Research and development costs were $552 million in 2012, $525 million in 2011 and $488 million in 2010 and are reported within selling, general and administrative expenses.
Other Significant Accounting Policies
Our other significant accounting policies are disclosed as follows:
Property, Plant and Equipment and Intangible Assets – Note 4, and for additional unaudited information on goodwill and other intangible assets see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Income Taxes – Note 5, and for additional unaudited information see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Stock-Based Compensation – Note 6.
Pension, Retiree Medical and Savings Plans – Note 7, and for additional unaudited information see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Financial Instruments – Note 10, and for additional unaudited information, see “Our Business Risks” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Inventories – Note 14. Inventories are valued at the lower of cost or market. Cost is determined using the average; first-in, first-out (FIFO) or last-in, first-out (LIFO) methods.
Translation of Financial Statements of Foreign Subsidiaries – Financial statements of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. Adjustments resulting from translating net assets are reported as a separate component of accumulated other comprehensive loss within common shareholders’ equity as currency translation adjustment.
Recent Accounting Pronouncements
In July 2012, the Financial Accounting Standards Board (FASB) issued new accounting guidance that permits an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform a quantitative impairment test. An entity would continue to calculate the fair value of an indefinite-lived intangible asset if the asset fails the qualitative assessment, while no further analysis would be required if it passes. The provisions of the new guidance are effective as of the beginning of our 2013 fiscal year. We do not expect the new guidance to have an impact on the 2013 impairment test results.
In September 2011, the FASB issued new accounting guidance that permits an entity to first assess qualitative factors of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. An entity would continue to perform the historical first step of the impairment test if it fails the qualitative assessment, while no further analysis would be required if it passes. The provisions of the new guidance were effective for, and had no impact on, our 2012 annual goodwill impairment test results.
In December 2011, the FASB issued new disclosure requirements that are intended to enhance current disclosures on offsetting financial assets and liabilities. The new disclosures require an entity to disclose both gross and net information about derivative instruments accounted for in accordance with the guidance on derivatives and hedging that are eligible for offset on the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. The provisions of the new disclosure requirements are effective as of the beginning of our 2014 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements.
In September 2011, the FASB amended its guidance regarding the disclosure requirements for employers participating in multiemployer pension and other postretirement benefit plans (multiemployer plans) to improve transparency and increase awareness of the commitments and risks involved with participation in multiemployer plans. The new accounting guidance requires employers participating in multiemployer plans to provide additional quantitative and qualitative disclosures to provide users with more detailed information regarding an employer’s involvement in multiemployer plans. The provisions of this new guidance were effective as of the beginning of our 2011 fiscal year and did not have a material impact on our financial statements.
In June 2011, the FASB amended its accounting guidance on the presentation of comprehensive income in financial statements to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items that are recorded in other comprehensive income. The new accounting guidance requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. The provisions of the guidance were effective as of the beginning of our 2012 fiscal year. Accordingly, we have presented the components of net income and other comprehensive income for the fiscal years ended December 29, 2012, December 31, 2011 and December 25, 2010 as separate but consecutive statements. In February 2013, the FASB issued guidance that would require an entity to provide enhanced footnote disclosures to explain the effect of reclassification adjustments on other comprehensive income by component and provide tabular disclosure in the footnotes showing the effect of items reclassified from accumulated other comprehensive income on the line items of net income. The provisions of this new guidance are effective as of the beginning of our 2013 fiscal year. We do not expect the adoption of this new guidance to have a material impact on our financial statements.
In the second quarter of 2010, the Patient Protection and Affordable Care Act (PPACA) was signed into law. The PPACA changes the tax treatment related to an existing retiree drug subsidy (RDS) available to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under Medicare Part D. As a result of the PPACA, RDS payments will effectively become taxable in tax years beginning in 2013, by requiring the amount of the subsidy received to be offset against our deduction for health care expenses. The provisions of the PPACA required us to record the effect of this tax law change beginning in our second quarter of 2010, and consequently we recorded a one-time related tax charge of $41 million in the second quarter of 2010. In the first quarter of 2012, we began pre-paying funds within our 401(h) voluntary employee beneficiary associations (VEBA) trust to fully cover prescription drug benefit liabilities for Medicare eligible retirees. As a result, the receipt of future Medicare subsidy payments for prescription drugs will not be taxable and consequently we recorded a $55 million tax benefit reflecting this change in the first quarter of 2012.
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Restructuring, Impairment and Integration Charges
12 Months Ended
Dec. 29, 2012
Restructuring and Related Activities [Abstract]
Restructuring, Impairment And Integration Charges
Restructuring, Impairment and Integration Charges
In 2012, we incurred restructuring charges of $279 million ($215 million after-tax or $0.14 per share) in conjunction with our Productivity Plan. In 2011, we incurred restructuring charges of $383 million ($286 million after-tax or $0.18 per share) in conjunction with our Productivity Plan. All of these charges were recorded in selling, general and administrative expenses and primarily relate to severance and other employee related costs, asset impairments, and consulting and contract termination costs. The Productivity Plan includes actions in every aspect of our business that we believe will strengthen our complementary food, snack and beverage businesses by leveraging new technologies and processes across PepsiCo’s operations; go-to-market and information systems; heightening the focus on best practice sharing across the globe; consolidating manufacturing, warehouse and sales facilities; and implementing simplified organization structures, with wider spans of control and fewer layers of management. The Productivity Plan is expected to enhance PepsiCo’s cost-competitiveness, provide a source of funding for future brand-building and innovation initiatives, and serve as a financial cushion for potential macroeconomic uncertainty.
A summary of our Productivity Plan charges in 2012 was as follows: 
 
Severance and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
FLNA
$
14

 
$
8

 
$
16

 
$
38

QFNA

 

 
9

 
9

LAF
15

 
8

 
27

 
50

PAB
34

 
43

 
25

 
102

Europe
14

 
16

 
12

 
42

AMEA
18

 

 
10

 
28

Corporate
(6
)
 

 
16

 
10


$
89

 
$
75

 
$
115

 
$
279

A summary of our Productivity Plan charges in 2011 was as follows:
 
Severance and Other
Employee Costs
 
Other Costs
 
Total
FLNA
$
74

 
$
2

 
$
76

QFNA
18

 

 
18

LAF
46

 
2

 
48

PAB
75

 
6

 
81

Europe
65

 
12

 
77

AMEA
9

 

 
9

Corporate
40

 
34

 
74


$
327

 
$
56

 
$
383


A summary of our Productivity Plan activity in 2011 and 2012 was as follows:

Severance and Other
Employee Costs

Asset Impairments

Other Costs

Total
2011 restructuring charges
$
327


$


$
56


$
383

Cash payments
(1
)



(29
)

(30
)
Non-cash charges
(77
)





(77
)
Liability as of December 31, 2011
249




27


276

2012 restructuring charges
89


75


115


279

Cash payments
(239
)



(104
)

(343
)
Non-cash charges
(8
)

(75
)

(2
)

(85
)
Liability as of December 29, 2012
$
91


$


$
36


$
127


In 2012, we incurred merger and integration charges of $16 million ($12 million after-tax or $0.01 per share) related to our acquisition of WBD, including $11 million recorded in the Europe segment and $5 million recorded in interest expense. All of these net charges, other than the interest expense portion, were recorded in selling, general and administrative expenses. The majority of cash payments related to these charges were paid by the end of 2012.
In 2011, we incurred merger and integration charges of $329 million ($271 million after-tax or $0.17 per share) related to our acquisitions of PBG, PAS and WBD, including $112 million recorded in the PAB segment, $123 million recorded in the Europe segment, $78 million recorded in corporate unallocated expenses and $16 million recorded in interest expense. All of these net charges, other than the interest expense portion, were recorded in selling, general and administrative expenses. These charges also include closing costs and advisory fees related to our acquisition of WBD. Substantially all cash payments related to the above charges were made by the end of 2011.
In 2010, we incurred merger and integration charges of $799 million related to our acquisitions of PBG and PAS, as well as advisory fees in connection with our acquisition of WBD. $467 million of these charges were recorded in the PAB segment, $111 million recorded in the Europe segment, $191 million recorded in corporate unallocated expenses and $30 million recorded in interest expense. All of these charges, other than the interest expense portion, were recorded in selling, general and administrative expenses. The merger and integration charges related to our acquisitions of PBG and PAS were incurred to help create a more fully integrated supply chain and go-to-market business model, to improve the effectiveness and efficiency of the distribution of our brands and to enhance our revenue growth. These charges also include closing costs, one-time financing costs and advisory fees related to our acquisitions of PBG and PAS. In addition, we recorded $9 million of merger-related charges, representing our share of the respective merger costs of PBG and PAS, in bottling equity income. Substantially all cash payments related to the above charges were made by the end of 2011. In total, these charges had an after-tax impact of $648 million or $0.40 per share.
A summary of our merger and integration activity was as follows:
 
Severance and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
2010 merger and integration charges
$
396

 
$
132

 
$
280

 
$
808

Cash payments
(114
)
 

 
(271
)
 
(385
)
Non-cash charges
(103
)
 
(132
)
 
16

 
(219
)
Liability as of December 25, 2010
179

 

 
25

 
204

2011 merger and integration charges
146

 
34

 
149

 
329

Cash payments
(191
)
 

 
(186
)
 
(377
)
Non-cash charges
(36
)
 
(34
)
 
19

 
(51
)
Liability as of December 31, 2011
98

 

 
7

 
105

2012 merger and integration charges
(3
)
 
1

 
18

 
16

Cash payments
(65
)
 

 
(18
)
 
(83
)
Non-cash charges
(12
)
 
(1
)
 
(1
)
 
(14
)
Liability as of December 29, 2012
$
18

 
$

 
$
6

 
$
24

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Property, Plant and Equipment and Intangible Assets
12 Months Ended
Dec. 29, 2012
Property, Plant And Equipment And Intangible Assets [Abstract]
Property, Plant and Equipment and Intangible Assets
Property, Plant and Equipment and Intangible Assets
 

Average
Useful Life (Years)
 
2012

 
2011

 
2010

Property, plant and equipment, net

 

 

 

Land and improvements
10 – 34
 
$
1,890

 
$
1,951

 

Buildings and improvements
15 – 44     
 
7,792

 
7,565

 

Machinery and equipment, including fleet and software
5 – 15
 
24,743

 
23,798

 

Construction in progress

 
1,737

 
1,826

 



 
36,162

 
35,140

 

Accumulated depreciation

 
(17,026
)
 
(15,442
)
 



 
$
19,136

 
$
19,698

 

Depreciation expense

 
$
2,489

 
$
2,476

 
$
2,124



Property, plant and equipment is recorded at historical cost. Depreciation and amortization are recognized on a straight-line basis over an asset’s estimated useful life. Land is not depreciated and construction in progress is not depreciated until ready for service.


 

2012

2011
 
2010
Amortizable intangible assets, net
Average
Useful Life (Years)

Gross

Accumulated
Amortization

Net

Gross

Accumulated
Amortization

Net
 

Acquired franchise rights
56 – 60      

$
931


$
(67
)

$
864


$
916


$
(42
)

$
874

 

Reacquired franchise rights
1 – 14    

110


(68
)

42


110


(47
)

63

 

Brands
5 – 40  

1,422


(980
)

442


1,417


(945
)

472

 

Other identifiable intangibles
10 – 24     

736


(303
)

433


777


(298
)

479

 




$
3,199


$
(1,418
)

$
1,781


$
3,220


$
(1,332
)

$
1,888

 

Amortization expense






$
119






$
133

 
$
117


Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 29, 2012 and using average 2012 foreign exchange rates, is expected to be as follows:
 
 
2013


2014


2015


2016


2017

Five-year projected amortization
 
$
110

 
$
95

 
$
86

 
$
78

 
$
72


Depreciable and amortizable assets are only evaluated for impairment upon a significant change in the operating or macroeconomic environment. In these circumstances, if an evaluation of the undiscounted cash flows indicates impairment, the asset is written down to its estimated fair value, which is based on discounted future cash flows. Useful lives are periodically evaluated to determine whether events or circumstances have occurred which indicate the need for revision. For additional unaudited information on our policies for amortizable brands, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Nonamortizable Intangible Assets
Perpetual brands and goodwill are assessed for impairment at least annually. If the carrying amount of a perpetual brand exceeds its fair value, as determined by its discounted cash flows, an impairment loss is recognized in an amount equal to that excess. We did not recognize any impairment charges for goodwill in the years presented. We recorded impairment charges on certain brands in Europe of $23 million and $14 million in 2012 and 2011, respectively. The change in the book value of nonamortizable intangible assets is as follows:
 

Balance,
Beginning
2011
 
Acquisitions/(Divestitures)
 
Translation
and Other
 
Balance,
End of
2011
 
Acquisitions/
(Divestitures)
 
Translation
and Other
 
Balance,
End of
2012
FLNA

 

 

 

 

 

 

Goodwill
$
313

 
$

 
$
(2
)
 
$
311

 
$

 
$
5

 
$
316

Brands
31

 

 
(1
)
 
30

 

 
1

 
31


344

 

 
(3
)
 
341

 

 
6

 
347

QFNA

 

 

 

 

 

 

Goodwill
175

 

 

 
175

 

 

 
175

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LAF

 

 

 

 

 

 

Goodwill
497

 
331

 
(35
)
 
793

 
(61
)
 
(16
)
 
716

Brands
143

 
20

 
(6
)
 
157

 
75

 
(9
)
 
223


640

 
351

 
(41
)
 
950

 
14

 
(25
)
 
939

PAB

 

 

 

 

 

 

Goodwill
9,946

 
(27
)
 
13

 
9,932

 
23

 
33

 
9,988

Reacquired franchise rights
7,283

 
77

 
(18
)
 
7,342

 
(33
)
 
28

 
7,337

Acquired franchise rights
1,565

 
(1
)
 
(2
)

1,562

 
9

 
2

 
1,573

Brands
182

 
(20
)
 
6

 
168

 

 
(15
)
 
153

Other
10

 
(9
)
 
(1
)
 

 

 

 


18,986

 
20

 
(2
)
 
19,004

 
(1
)
 
48

 
19,051

Europe (a)

 

 

 

 

 

 

Goodwill
3,040

 
2,131

 
(271
)
 
4,900

 
78

 
236

 
5,214

Reacquired franchise rights
793

 

 
(61
)
 
732

 

 
40

 
772

Acquired franchise rights
227

 

 
(9
)
 
218

 

 
5

 
223

Brands
1,380

 
3,114

 
(316
)
 
4,178

 
(96
)
 
202

 
4,284


5,440

 
5,245

 
(657
)
 
10,028

 
(18
)
 
483

 
10,493

AMEA

 

 

 

 

 

 

Goodwill
690

 

 
(1
)
 
689

 
(142
)
 
15

 
562

Brands
169

 

 
1

 
170

 
(24
)
 
2

 
148


859

 

 

 
859

 
(166
)
 
17

 
710

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total goodwill
14,661

 
2,435

 
(296
)
 
16,800

 
(102
)
 
273

 
16,971

Total reacquired franchise rights
8,076

 
77

 
(79
)
 
8,074

 
(33
)
 
68

 
8,109

Total acquired franchise rights
1,792

 
(1
)
 
(11
)
 
1,780

 
9

 
7

 
1,796

Total brands
1,905

 
3,114

 
(316
)
 
4,703

 
(45
)
 
181

 
4,839

Total other
10

 
(9
)
 
(1
)
 

 

 

 


$
26,444

 
$
5,616

 
$
(703
)
 
$
31,357

 
$
(171
)
 
$
529

 
$
31,715


(a)
Net increase in 2011 relates primarily to our acquisition of WBD.
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Income Taxes
12 Months Ended
Dec. 29, 2012
Income Tax Expense (Benefit) [Abstract]
Income Taxes
Income Taxes
 
 
2012
 
2011
 
2010
Income before income taxes
 
 
 
 
 
U.S.
 
$
3,234

 
$
3,964

 
$
4,008

Foreign
 
5,070

 
4,870

 
4,224

 
 
$
8,304

 
$
8,834

 
$
8,232

Provision for income taxes
 
 
 
 
 
Current:
U.S. Federal
$
911

 
$
611

 
$
932

 
Foreign
940

 
882

 
728

 
State
153

 
124

 
137

 
 
2,004

 
1,617

 
1,797

Deferred:
U.S. Federal
154

 
789

 
78

 
Foreign
(95
)
 
(88
)
 
18

 
State
27

 
54

 
1

 
 
86

 
755

 
97

 
 
$
2,090

 
$
2,372

 
$
1,894

Tax rate reconciliation
 
 
 
 
 
U.S. Federal statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income tax, net of U.S. Federal tax benefit
1.4

 
1.3

 
1.1

Lower taxes on foreign results
(6.9
)
 
(8.7
)
 
(9.4
)
Tax benefit related to tax court decision
(2.6
)
 

 

Acquisitions of PBG and PAS

 

 
(3.1
)
Other, net
(1.7
)
 
(0.8
)
 
(0.6
)
Annual tax rate
25.2
 %
 
26.8
 %
 
23.0
 %
Deferred tax liabilities
 
 
 
 
 
Investments in noncontrolled affiliates
$
48

 
$
41

 
 
Debt guarantee of wholly owned subsidiary
828

 
828

 
 
Property, plant and equipment
2,424

 
2,466

 
 
Intangible assets other than nondeductible goodwill
4,388

 
4,297

 
 
Other
260

 
184

 
 
Gross deferred tax liabilities
7,948

 
7,816

 
 
Deferred tax assets
 
 
 
 
 
Net carryforwards
1,378

 
1,373

 
 
Stock-based compensation
378

 
429

 
 
Retiree medical benefits
411

 
504

 
 
Other employee-related benefits
672

 
695

 
 
Pension benefits
647

 
545

 
 
Deductible state tax and interest benefits
345

 
339

 
 
Long-term debt obligations acquired
164

 
223

 
 
Other
863

 
822

 
 
Gross deferred tax assets
4,858

 
4,930

 
 
Valuation allowances
(1,233
)
 
(1,264
)
 
 
Deferred tax assets, net
3,625

 
3,666

 
 
Net deferred tax liabilities
$
4,323

 
$
4,150

 
 
 
2012

 
2011

 
2010

Deferred taxes included within:
 
 
 
 
 
Assets:
 
 
 
 
 
Prepaid expenses and other current assets
$
740

 
$
845

 
 
Liabilities:
 
 
 
 
 
Deferred income taxes
$
5,063

 
$
4,995

 
 
 
 
 
 
 
 
Analysis of valuation allowances
 
 
 
 
 
Balance, beginning of year
$
1,264

 
$
875

 
$
586

Provision
68

 
464

 
75

Other (deductions)/additions
(99
)
 
(75
)
 
214

Balance, end of year
$
1,233

 
$
1,264

 
$
875


For additional unaudited information on our income tax policies, including our reserves for income taxes, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Reserves
A number of years may elapse before a particular matter, for which we have established a reserve, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. Our major taxing jurisdictions and the related open tax audits are as follows:
U.S. – during 2012, we received a favorable tax court decision related to the classification of financial instruments. We continue to dispute three matters related to the 2003-2007 audit cycle with the IRS Appeals Division. We are currently under audit for tax years 2008-2009;
Mexico – audits have been completed for all taxable years through 2005. We are currently under audit for 2006-2008;
United Kingdom – audits have been completed for all taxable years through 2009;
Canada – domestic audits have been substantially completed for all taxable years through 2008. International audits have been completed for all taxable years through 2005; and
Russia – audits have been substantially completed for all taxable years through 2008. We are currently under audit for 2009-2011.
While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe that our reserves reflect the probable outcome of known tax contingencies. We adjust these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular issue would usually require the use of cash. Favorable resolution would be recognized as a reduction to our annual tax rate in the year of resolution. For further unaudited information on the impact of the resolution of open tax issues, see “Other Consolidated Results” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

We believe that it is reasonably possible that our reserves for uncertain tax positions could decrease by approximately $1.5 billion within the next twelve months as a result of the completion of audits in various jurisdictions, including the potential settlement with the IRS for the taxable years 2003-2009.
As of December 29, 2012, the total gross amount of reserves for income taxes, reported in income taxes payable and other liabilities, was $2,425 million. Any prospective adjustments to these reserves will be recorded as an increase or decrease to our provision for income taxes and would impact our effective tax rate. In addition, we accrue interest related to reserves for income taxes in our provision for income taxes and any associated penalties are recorded in selling, general and administrative expenses. The gross amount of interest accrued, reported in other liabilities, was $670 million as of December 29, 2012, of which $10 million was recognized in 2012. The gross amount of interest accrued, reported in other liabilities, was $660 million as of December 31, 2011, of which $90 million was recognized in 2011.
A rollforward of our reserves for all federal, state and foreign tax jurisdictions, is as follows:
 
2012

 
2011

Balance, beginning of year
$
2,167

 
$
2,022

Additions for tax positions related to the current year
275

 
233

Additions for tax positions from prior years
161

 
147

Reductions for tax positions from prior years
(172
)
 
(46
)
Settlement payments
(17
)
 
(156
)
Statute of limitations expiration
(3
)
 
(15
)
Translation and other
14

 
(18
)
Balance, end of year
$
2,425

 
$
2,167


Carryforwards and Allowances
Operating loss carryforwards totaling $10.4 billion at year-end 2012 are being carried forward in a number of foreign and state jurisdictions where we are permitted to use tax operating losses from prior periods to reduce future taxable income. These operating losses will expire as follows: $0.2 billion in 2013, $8.2 billion between 2014 and 2032 and $2.0 billion may be carried forward indefinitely. We establish valuation allowances for our deferred tax assets if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Undistributed International Earnings
As of December 29, 2012, we had approximately $32.2 billion of undistributed international earnings. We intend to continue to reinvest earnings outside the U.S. for the foreseeable future and, therefore, have not recognized any U.S. tax expense on these earnings.
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Stock-Based Compensation
12 Months Ended
Dec. 29, 2012
Share-based Compensation [Abstract]
Stock-Based Compensation
Stock-Based Compensation
Our stock-based compensation program is designed to attract and retain employees while also aligning employees’ interests with the interests of our shareholders. Stock options and restricted stock units (RSU) are granted to employees under the shareholder-approved 2007 Long-Term Incentive Plan (LTIP).
In 2012, certain executive officers were granted PepsiCo equity performance units (PEPUnits). These PEPUnits are earned based on achievement of a cumulative net income performance target and provide an opportunity to earn shares of PepsiCo common stock with a value that adjusts based upon absolute changes in PepsiCo’s stock price as well as PepsiCo’s Total Shareholder Return relative to the S&P 500 over a three-year performance period.
The Company may use either authorized and unissued shares or repurchased common stock to meet share requirements resulting from the exercise of stock options and the vesting of restricted stock awards.
At year-end 2012, 124 million shares were available for future stock-based compensation grants.
The following table summarizes our total stock-based compensation expense:
 
 
2012

 
2011

 
2010 

Stock-based compensation expense
 
$
278

 
$
326

 
$
299

Merger and integration charges
 
2

 
13

 
53

Restructuring and impairment (benefits) / charges
 
(7
)
 
4

 

Total (a)
 
$
273

 
$
343

 
$
352

Income tax benefits recognized in earnings related to stock-based compensation
 
$
73

 
$
101

 
$
89

(a) $86 million recorded in 2010 was related to the unvested PBG/PAS acquisition-related grants.
In connection with our acquisition of PBG in 2010, we issued 13.4 million stock options and 2.7 million RSUs at weighted-average grant prices of $42.89 and $62.30, respectively, to replace previously held PBG equity awards. In connection with our acquisition of PAS in 2010, we issued 0.4 million stock options at a weighted-average grant price of $31.72 to replace previously held PAS equity awards. Our equity issuances included 8.3 million stock options and 0.6 million RSUs which were vested at the acquisition date and were included in the purchase price. The remaining 5.5 million stock options and 2.1 million RSUs issued were unvested at the issuance date and are being amortized over their remaining vesting period, up to three years from the issuance date.
As a result of our annual benefits review in 2010, the Company approved certain changes to our benefits programs to remain market competitive relative to other leading global companies. These changes included ending the Company’s broad-based SharePower stock option program. Consequently, beginning in 2011, no new awards were granted under the SharePower program. Outstanding SharePower awards from 2010 and earlier continue to vest and are exercisable according to the terms and conditions of the program. See Note 7 for additional information regarding other related changes.
Method of Accounting and Our Assumptions
We account for our employee stock options under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant.  In addition, we use the Monte-Carlo simulation option-pricing model to determine the fair value of market-based awards. The Monte-Carlo simulation option-pricing model uses the same input assumptions as the Black-Scholes model, however, it also further incorporates into the fair-value determination the possibility that the market condition may not be satisfied. Compensation costs related to awards with a market-based condition are recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. 
All stock option grants have an exercise price equal to the fair market value of our common stock on the date of grant and generally have a 10-year term. We do not backdate, reprice or grant stock-based compensation awards retroactively. Repricing of awards would require shareholder approval under the LTIP.
The fair value of stock option grants is amortized to expense over the vesting period, generally three years. Awards to employees eligible for retirement prior to the award becoming fully vested are amortized to expense over the period through the date that the employee first becomes eligible to retire and is no longer required to provide service to earn the award. Executives who are awarded long-term incentives based on their performance are generally offered the choice of stock options or RSUs. Executives who elect RSUs receive one RSU for every four stock options that would have otherwise been granted. Senior officers do not have a choice and, through 2012, are granted 50% stock options and 50% performance-based RSUs.
Our weighted-average Black-Scholes fair value assumptions are as follows:

2012


2011


2010

Expected life
6 years


6 years


5 years

Risk-free interest rate
1.3
%

2.5
%

2.3
%
Expected volatility
17
%

16
%

17
%
Expected dividend yield
3.0
%

2.9
%

2.8
%

The expected life is the period over which our employee groups are expected to hold their options. It is based on our historical experience with similar grants. The risk-free interest rate is based on the expected U.S. Treasury rate over the expected life. Volatility reflects movements in our stock price over the most recent historical period equivalent to the expected life. Dividend yield is estimated over the expected life based on our stated dividend policy and forecasts of net income, share repurchases and stock price.
A summary of our stock-based compensation activity for the year ended December 29, 2012 is presented below:
Our Stock Option Activity
Options(a)

Average
Price(b)

Average
Life
(years)(c)

Aggregate
Intrinsic
Value(d)
Outstanding at December 31, 2011
91,075


$
55.92





Granted
3,696


$
67.13





Exercised
(23,585
)

$
47.33





Forfeited/expired
(3,041
)

$
63.81





Outstanding at December 29, 2012
68,145


$
59.15


5.04

$
614,322

Exercisable at December 29, 2012
48,366


$
56.44


4.45

$
567,761

Expected to vest as of December 29, 2012
19,432

 
$
65.79

 
7.85
 
$
45,374

(a)
Options are in thousands and include options previously granted under PBG, PAS and Quaker legacy plans. No additional options or shares may be granted under the PBG, PAS and Quaker plans.
(b)
Weighted-average exercise price.
(c)
Weighted-average contractual life remaining.
(d)
In thousands.

Our RSU Activity
RSUs(a)

Average
Intrinsic
Value(b)

Average
Life
(years)(c)

Aggregate
Intrinsic
Value(d)
Outstanding at December 31, 2011
12,340


$
62.96





Granted
4,404


$
66.64





Converted
(3,436
)

$
57.76





Forfeited
(1,326
)

$
64.80





Outstanding at December 29, 2012
11,982


$
65.60


1.49

$
815,051

Expected to vest as of December 29, 2012
11,616

 
$
65.58

 
1.34
 
$
790,128

 

(a)
RSUs are in thousands and include RSUs previously granted under a PBG plan. No additional RSUs or shares may be granted under the PBG plan.
(b)
Weighted-average intrinsic value at grant date.
(c)
Weighted-average contractual life remaining.
(d)
In thousands.

Our PEPUnit Activity
PEPUnits(a)

Average
Intrinsic
Value(b)

Average
Life
(years)(c)

Aggregate
Intrinsic
Value(d)
Outstanding at December 31, 2011


$





Granted
410


$
64.85





Converted


$





Forfeited
(42
)

$
64.51





Outstanding at December 29, 2012
368


$
64.89


2.26

$
25,031

Expected to vest as of December 29, 2012
334

 
$
64.85

 
2.26
 
$
22,721


(a)
PEPUnits are in thousands.
(b)
Weighted-average intrinsic value at grant date.
(c)
Weighted-average contractual life remaining.
(d)
In thousands.
Other Stock-Based Compensation Data

2012


2011


2010

Stock Options





Weighted-average fair value of options granted
$
6.86


$
7.79


$
13.93

Total intrinsic value of options exercised(a)
$
512,636


$
385,678


$
502,354

RSUs





Total number of RSUs granted(a)
4,404


5,333


8,326

Weighted-average intrinsic value of RSUs granted
$
66.64


$
63.87


$
65.01

Total intrinsic value of RSUs converted(a)
$
236,575


$
173,433


$
202,717

PEPUnits
 
 
 
 
 
Total number of PEPUnits granted(a)
410

 

 


Weighted-average intrinsic value of PEPUnits granted
$
64.85

 
$

 


Total intrinsic value of PEPUnits converted(a)

 


 



(a)
In thousands.
As of December 31, 2012, there was $389 million of total unrecognized compensation cost related to nonvested share-based compensation grants. This unrecognized compensation is expected to be recognized over a weighted-average period of two years.
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Pension, Retiree Medical and Savings Plans
12 Months Ended
Dec. 29, 2012
General Discussion of Pension and Other Postretirement Benefits [Abstract]
Pension, Retiree Medical and Savings Plans
Pension, Retiree Medical and Savings Plans
Our pension plans cover certain full-time employees in the U.S. and certain international employees. Benefits are determined based on either years of service or a combination of years of service and earnings. Certain U.S. and Canada retirees are also eligible for medical and life insurance benefits (retiree medical) if they meet age and service requirements. Generally, our share of retiree medical costs is capped at specified dollar amounts, which vary based upon years of service, with retirees contributing the remainder of the costs.
Gains and losses resulting from actual experience differing from our assumptions, including the difference between the actual return on plan assets and the expected return on plan assets, and from changes in our assumptions are determined at each measurement date. If this net accumulated gain or loss exceeds 10% of the greater of the market-related value of plan assets or plan liabilities, a portion of the net gain or loss is included in expense for the following year based upon the average remaining service period of active plan participants, which is approximately 11 years for pension expense and approximately 8 years for retiree medical expense. The cost or benefit of plan changes that increase or decrease benefits for prior employee service (prior service cost/(credit)) is included in earnings on a straight-line basis over the average remaining service period of active plan participants.
In connection with our acquisitions of PBG and PAS, we assumed sponsorship of pension and retiree medical plans that provide benefits to certain U.S. and international employees. Subsequently, during 2010, we merged the pension plan assets of the legacy PBG and PAS U.S. pension plans with those of PepsiCo into one master trust.
During 2010, the Compensation Committee of PepsiCo’s Board of Directors approved certain changes to the U.S. pension and retiree medical plans, effective January 1, 2011. Pension plan design changes included implementing a new employer contribution to the 401(k) savings plan for all future salaried new hires of the Company, as salaried new hires are no longer eligible to participate in the defined benefit pension plan, as well as implementing a new defined benefit pension formula for certain hourly new hires of the Company. Pension plan design changes also included implementing a new employer contribution to the 401(k) savings plan for certain legacy PBG and PAS salaried employees (as such employees are also not eligible to participate in the defined benefit pension plan), as well as implementing a new defined benefit pension formula for certain legacy PBG and PAS hourly employees. The retiree medical plan design change included phasing out Company subsidies of retiree medical benefits. As a result of these changes, we remeasured our pension and retiree medical expenses and liabilities in 2010, which resulted in a one-time pre-tax curtailment gain of $62 million included in retiree medical expenses.
In the fourth quarter of 2012, the Company offered certain former employees who have vested benefits in our defined benefit pension plans the option of receiving a one-time lump sum payment equal to the present value of the participant’s pension benefit (payable in cash or rolled over into a qualified retirement plan or IRA). In December 2012, we made a discretionary contribution of $405 million to fund substantially all of these payments. The Company recorded a pre-tax non-cash settlement charge of $195 million ($131 million after-tax or $0.08 per share) as a result of this transaction. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The provisions of both the PPACA and the Health Care and Education Reconciliation Act are reflected in our retiree medical expenses and liabilities and were not material to our financial statements.
Selected financial information for our pension and retiree medical plans is as follows:
 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Change in projected benefit liability
 
 
 
 
 
 
 
 
 
 
 
Liability at beginning of year
$
11,901

 
$
9,851

 
$
2,381

 
$
2,142

 
$
1,563

 
$
1,770

Acquisitions/(divestitures)

 
11

 

 
(63
)
 

 

Service cost
407

 
350

 
100

 
95

 
50

 
51

Interest cost
534

 
547

 
115

 
117

 
65

 
88

Plan amendments
15

 
21

 

 
(16
)
 

 
3

Participant contributions

 

 
3

 
3

 

 

Experience loss/(gain)
932

 
1,484

 
200

 
224

 
(63
)
 
(239
)
Benefit payments
(278
)
 
(414
)
 
(76
)
 
(69
)
 
(111
)
 
(110
)
Settlement/curtailment
(633
)
 
(20
)
 
(40
)
 
(15
)
 

 

Special termination benefits
8

 
71

 
1

 
1

 
5

 
1

Foreign currency adjustment

 

 
102

 
(41
)
 
2

 
(1
)
Other

 

 
2

 
3

 

 

Liability at end of year
$
12,886

 
$
11,901

 
$
2,788

 
$
2,381

 
$
1,511

 
$
1,563

 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value at beginning of year
$
9,072

 
$
8,870

 
$
2,031

 
$
1,896

 
$
190

 
$
190

Acquisitions/(divestitures)

 
11

 

 
(1
)
 

 

Actual return on plan assets
1,282

 
542

 
206

 
79

 
35

 

Employer contributions/funding
1,368

 
63

 
246

 
176

 
251

 
110

Participant contributions

 

 
3

 
3

 

 

Benefit payments
(278
)
 
(414
)
 
(76
)
 
(69
)
 
(111
)
 
(110
)
Settlement
(627
)
 

 
(33
)
 
(30
)
 

 

Foreign currency adjustment

 

 
86

 
(23
)
 

 

Fair value at end of year
$
10,817

 
$
9,072

 
$
2,463

 
$
2,031

 
$
365

 
$
190

Funded status
$
(2,069
)
 
$
(2,829
)
 
$
(325
)
 
$
(350
)
 
$
(1,146
)
 
$
(1,373
)
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Amounts recognized
 
 
 
 
 
 
 
 
 
 
 
Other assets
$

 
$

 
$
51

 
$
55

 
$

 
$

Other current liabilities
(51
)
 
(91
)
 
(2
)
 
(1
)
 
(71
)
 
(124
)
Other liabilities
(2,018
)
 
(2,738
)
 
(374
)
 
(404
)
 
(1,075
)
 
(1,249
)
Net amount recognized
$
(2,069
)
 
$
(2,829
)
 
$
(325
)
 
$
(350
)
 
$
(1,146
)
 
$
(1,373
)
 
 
 
 
 
 
 
 
 
 
 
 
Amounts included in accumulated other comprehensive loss (pre-tax)
 
 
 
 
 
 
 
 
Net loss/(gain)
$
4,212

 
$
4,217

 
$
1,096

 
$
977

 
$
(44
)
 
$
32

Prior service cost/(credit)
121

 
122

 
(3
)
 
(2
)
 
(92
)
 
(118
)
Total
$
4,333

 
$
4,339

 
$
1,093

 
$
975

 
$
(136
)
 
$
(86
)
 
 
 
 
 
 
 
 
 
 
 
 
Components of the (decrease)/increase in net loss/(gain) included in accumulated other comprehensive loss
 
 
 
 
Change in discount rate
$
776

 
$
1,710

 
$
188

 
$
302

 
$
84

 
$
115

Employee-related assumption changes
135

 
(140
)
 
(2
)
 
(51
)
 
(67
)
 
(125
)
Liability-related experience different from assumptions
66

 
(85
)
 
14

 
(27
)
 
(80
)
 
(210
)
Actual asset return different from expected return
(486
)
 
162

 
(60
)
 
57

 
(13
)
 
14

Amortization and settlement of losses
(451
)
 
(147
)
 
(64
)
 
(55
)
 

 
(12
)
Other, including foreign currency adjustments
(45
)
 
(9
)
 
43

 
(16
)
 

 
(20
)
Total
$
(5
)
 
$
1,491

 
$
119

 
$
210

 
$
(76
)
 
$
(238
)
 
 
 
 
 
 
 
 
 
 
 
 
Liability at end of year for service to date
$
11,643

 
$
11,205

 
$
2,323

 
$
1,921

 
 
 
 


The components of benefit expense are as follows:
 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
 
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Components of benefit expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
407

 
$
350

 
$
299

 
$
100

 
$
95

 
$
81

 
$
50

 
$
51

 
$
54

Interest cost
534

 
547

 
506

 
115

 
117

 
106

 
65

 
88

 
93

Expected return on plan assets
(796
)
 
(704
)
 
(643
)
 
(146
)
 
(136
)
 
(123
)
 
(22
)
 
(14
)
 
(1
)
Amortization of prior service cost/(credit)
17

 
14

 
12

 
1

 
2

 
2

 
(26
)
 
(28
)
 
(22
)
Amortization of net loss
259

 
145

 
119

 
53

 
40

 
24

 

 
12

 
9

 
421

 
352

 
293

 
123

 
118

 
90

 
67

 
109

 
133

Settlement/curtailment loss/(gain) (a)
185

 
(8
)
 
(2
)
 
4

 
30

 
1

 

 

 
(62
)
Special termination benefits
8

 
71

 
45

 
1

 
1

 
3

 
5

 
1

 
3

Total
$
614

 
$
415

 
$
336

 
$
128

 
$
149

 
$
94

 
$
72

 
$
110

 
$
74


(a)
Includes pension lump sum settlement charge of $195 million in 2012. This charge is reflected in items affecting comparability (see “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations).





The estimated amounts to be amortized from accumulated other comprehensive loss into expense in 2013 for our pension and retiree medical plans are as follows:
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
Net loss
$
289

 
$
68

 
$
1

Prior service cost/(credit)
18

 
1

 
(22
)
Total
$
307

 
$
69

 
$
(21
)

The following table provides the weighted-average assumptions used to determine projected benefit liability and benefit expense for our pension and retiree medical plans:
 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
 
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Weighted-average assumptions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability discount rate
4.2
%
 
4.6
%
 
5.7
%
 
4.4
%
 
4.8
%
 
5.5
%
 
3.7
%
 
4.4
%
 
5.2
%
Expense discount rate
4.6
%
 
5.7
%
 
6.0
%
 
4.8
%
 
5.5
%
 
6.0
%
 
4.4
%
 
5.2
%
 
5.8
%
Expected return on plan assets
7.8
%
 
7.8
%
 
7.8
%
 
6.7
%
 
6.7
%
 
7.1
%
 
7.8
%
 
7.8
%
 
7.8
%
Liability rate of salary increases
3.7
%
 
3.7
%
 
4.1
%
 
3.9
%
 
4.1
%
 
4.1
%
 
 
 
 
 
 
Expense rate of salary increases
3.7
%
 
4.1
%
 
4.4
%
 
4.1
%
 
4.1
%
 
4.1
%
 
 
 
 
 
 

The following table provides selected information about plans with liability for service to date and total benefit liability in excess of plan assets: 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Selected information for plans with liability for service to date in excess of plan assets
 
 
 
 
Liability for service to date
$
(11,643
)
 
$
(11,205
)
 
$
(711
)
 
$
(471
)
 
 
 
 
Fair value of plan assets
$
10,817

 
$
9,072

 
$
552

 
$
344

 
 
 
 
Selected information for plans with projected benefit liability in excess of plan assets
 
 
 
 
 
 
Benefit liability
$
(12,886
)
 
$
(11,901
)
 
$
(2,542
)
 
$
(2,191
)
 
$
(1,511
)
 
$
(1,563
)
Fair value of plan assets
$
10,817

 
$
9,072

 
$
2,166

 
$
1,786

 
$
365

 
$
190


Of the total projected pension benefit liability at year-end 2012, $761 million relates to plans that we do not fund because the funding of such plans does not receive favorable tax treatment.
Future Benefit Payments and Funding
Our estimated future benefit payments are as follows: 
 
2013

 
2014

 
2015

 
2016

 
2017

 
2018-22

Pension
$
560

 
$
570

 
$
600

 
$
650

 
$
705

 
$
4,465

Retiree medical(a)
$
120

 
$
125

 
$
125

 
$
130

 
$
130

 
$
655

 
(a)
Expected future benefit payments for our retiree medical plans do not reflect any estimated subsidies expected to be received under the 2003 Medicare Act. Subsidies are expected to be approximately $13 million for each of the years from 2013 through 2017 and approximately $90 million in total for 2018 through 2022.
These future benefits to beneficiaries include payments from both funded and unfunded plans.
In 2013, we expect to make pension and retiree medical contributions of approximately $240 million, with up to approximately $17 million expected to be discretionary. Our contributions for retiree medical are estimated to be approximately $70 million in 2013.
Plan Assets
Pension
Our pension plan investment strategy includes the use of actively managed securities and is reviewed periodically in conjunction with plan liabilities, an evaluation of market conditions, tolerance for risk and cash requirements for benefit payments. Our investment objective is to ensure that funds are available to meet the plans’ benefit obligations when they become due. Our overall investment strategy is to prudently invest plan assets in a well-diversified portfolio of equity and high-quality debt securities to achieve our long-term return expectations. Our investment policy also permits the use of derivative instruments which are primarily used to reduce risk. Our expected long-term rate of return on U.S. plan assets is 7.8%. Our target investment allocations are as follows:
 
2013

 
2012

Fixed income
40
%
 
40
%
U.S. equity
33
%
 
33
%
International equity
22
%
 
22
%
Real estate
5
%
 
5
%

Actual investment allocations may vary from our target investment allocations due to prevailing market conditions. We regularly review our actual investment allocations and periodically rebalance our investments to our target allocations.
The expected return on pension plan assets is based on our pension plan investment strategy and our expectations for long-term rates of return by asset class, taking into account volatility and correlation among asset classes and our historical experience. We also review current levels of interest rates and inflation to assess the reasonableness of the long-term rates. We evaluate our expected return assumptions annually to ensure that they are reasonable. To calculate the expected return on pension plan assets, our market-related value of assets for fixed income is the actual fair value. For all other asset categories, we use a method that recognizes investment gains or losses (the difference between the expected and actual return based on the market-related value of assets) over a five-year period. This has the effect of reducing year-to-year volatility.
Our pension contributions for 2012 were $1,614 million, of which $1,375 million was discretionary. Discretionary contributions included $405 million pertaining to pension lump sum payments.
Retiree Medical
In 2012 and 2011, we made non-discretionary contributions of $111 million and $110 million, respectively, to fund the payment of retiree medical claims. In 2012, we made a discretionary contribution of $140 million to fund future U.S. retiree medical plan benefits. This contribution was invested consistently with the allocation of existing assets in the U.S. pension plan.
Fair Value
The guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.
Plan assets measured at fair value as of fiscal year-end 2012 and 2011 are categorized consistently by level in both years, and are as follows: 
 
2012
 
2011
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. plan assets*
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
U.S. common stock(a)
$
626

 
$
626

 
$

 
$

 
$
514

U.S. commingled funds(b)
3,106

 

 
3,106

 

 
3,003

International common stock(a)
1,597

 
1,597

 

 

 
1,089

International commingled fund(c)
948

 

 
948

 

 
776

Preferred stock(d)
20

 

 
20

 

 
19

Fixed income securities:
 
 
 
 
 
 
 
 
 
Government securities(d)
1,287

 

 
1,287

 

 
1,032

Corporate bonds(d) (e)
2,962

 

 
2,962

 

 
2,653

Mortgage-backed securities(d)
110

 

 
110

 

 
24

Other:
 
 
 
 
 
 
 
 
 
Contracts with insurance companies(f)
27

 

 

 
27

 
24

Real estate commingled funds(g)
331

 

 

 
331

 

Cash and cash equivalents
117

 
117

 

 

 
78

Sub-total U.S. plan assets
11,131

 
$
2,340

 
$
8,433

 
$
358

 
9,212

Dividends and interest receivable
51

 
 
 
 
 
 
 
50

Total U.S. plan assets
$
11,182

 
 
 
 
 
 
 
$
9,262

International plan assets
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
U.S. commingled funds(b)
$
278

 
$

 
$
278

 
$

 
$
246

International commingled funds(c)
863

 

 
863

 

 
729

Fixed income securities:
 
 
 
 
 
 
 
 
 
Government securities(d)
202

 

 
202

 

 
171

Corporate bonds(d)
230

 

 
230

 

 
196

Fixed income commingled funds(h)
600

 

 
600

 

 
530

Other:
 
 
 
 
 
 
 
 
 
Contracts with insurance companies(f)
35

 

 

 
35

 
30

Currency commingled funds(i)
64

 

 
64

 

 
52

Real estate commingled fund(g)
60

 

 

 
60

 
56

Cash and cash equivalents
125

 
125

 

 

 
16

Sub-total international plan assets
2,457

 
$
125

 
$
2,237

 
$
95

 
2,026

Dividends and interest receivable
6

 
 
 
 
 
 
 
5

Total international plan assets
$
2,463

 
 
 
 
 
 
 
$
2,031


(a)
Based on quoted market prices in active markets.
(b)
Based on the fair value of the investments owned by these funds that track various U.S. large, mid-cap and small company indices. Includes one large-cap fund that represents 25% and 30%, respectively, of total U.S. plan assets for 2012 and 2011.
(c)
Based on the fair value of the investments owned by these funds that track various non-U.S. equity indices.
(d)
Based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes that are not observable.
(e)
Corporate bonds of U.S.-based companies represent 22% and 24%, respectively, of total U.S. plan assets for 2012 and 2011.
(f)
Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable.
(g)
Based on the appraised value of the investments owned by these funds as determined by independent third parties using inputs that are not observable.
(h)
Based on the fair value of the investments owned by these funds that track various government and corporate bond indices.
(i)
Based on the fair value of the investments owned by these funds. Includes managed hedge funds that invest primarily in derivatives to reduce currency exposure.
*
2012 and 2011 amounts include $365 million and $190 million, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.
The change in Level 3 plan assets for 2012 is as follows:
 
Balance, End of 2011
 
Return on Assets Held at Year End
 
Return on Assets Sold
 
Purchases and Sales, Net
 
Balance, End of 2012
Real estate commingled funds
$
56

 
$
15

 
$
1

 
$
319

 
$
391

Contracts with insurance companies
54

 
9

 

 
(1
)
 
62

Total
$
110

 
$
24

 
$
1

 
$
318

 
$
453


Retiree Medical Cost Trend Rates
An average increase of 7% in the cost of covered retiree medical benefits is assumed for 2013. This average increase is then projected to decline gradually to 5% in 2020 and thereafter. These assumed health care cost trend rates have an impact on the retiree medical plan expense and liability. However, the cap on our share of retiree medical costs limits the impact. In addition, as of January 1, 2011, the Company started phasing out Company subsidies of retiree medical benefits. A 1-percentage-point change in the assumed health care trend rate would have the following effects:
 
1% Increase
 
1%
Decrease
2012 Service and interest cost components
$
4

 
$
(4
)
2012 Benefit liability
$
40

 
$
(38
)

Savings Plan
Certain U.S. employees are eligible to participate in 401(k) savings plans, which are voluntary defined contribution plans. The plans are designed to help employees accumulate additional savings for retirement, and we make Company matching contributions on a portion of eligible pay based on years of service.
In 2010, in connection with our acquisitions of PBG and PAS, we also made Company retirement contributions for certain employees on a portion of eligible pay based on years of service.
As of January 1, 2011, a new employer contribution to the 401(k) savings plan became effective for certain eligible legacy PBG and PAS salaried employees as well as all eligible salaried new hires of PepsiCo who were not eligible to participate in the defined benefit pension plan as a result of plan design changes approved during 2010. In 2012 and 2011, our total Company contributions were $109 million and $144 million, respectively.
As of February 2012, certain U.S. employees earning a benefit under one of our defined benefit pension plans were no longer eligible for the Company matching contributions on their 401(k) contributions.
For additional unaudited information on our pension and retiree medical plans and related accounting policies and assumptions, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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Related Party Transactions
12 Months Ended
Dec. 29, 2012
Related Party Transactions [Abstract]
Related Party Transactions
Related Party Transactions
On February 26, 2010, we completed our acquisitions of PBG and PAS, at which time we gained control over their operations and began to consolidate their results. See Notes 1 and 15 to our consolidated financial statements. Prior to these acquisitions, our significant related party transactions were with PBG and PAS as they represented our most significant noncontrolled bottling affiliates. In 2010, prior to the date of acquisition of PBG and PAS, we reflected the following related party transactions in our consolidated financial statements: net revenue of $993 million, cost of sales of $116 million and selling, general and administrative expenses of $6 million. As a result of these acquisitions, our related party transactions in 2011 and 2012 were not material.
We also coordinate, on an aggregate basis, the contract negotiations of sweeteners and other raw material requirements, including aluminum cans and plastic bottles and closures for certain of our independent bottlers. Once we have negotiated the contracts, the bottlers order and take delivery directly from the supplier and pay the suppliers directly. Consequently, these transactions are not reflected in our consolidated financial statements. As the contracting party, we could be liable to these suppliers in the event of any nonpayment by our bottlers, but we consider this exposure to be remote.
In addition, our joint ventures with Unilever (under the Lipton brand name) and Starbucks sell finished goods (ready-to-drink teas and coffees) to our noncontrolled bottling affiliates. Consistent with accounting for equity method investments, our joint venture revenue is not included in our consolidated net revenue.
In 2010, we repurchased $357 million (5.5 million shares) of PepsiCo stock from the master trust which holds assets of PepsiCo’s U.S. qualified pension plans at market value.
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Debt Obligations and Commitments
12 Months Ended
Dec. 29, 2012
Debt Obligations and Commitments [Abstract]
Debt Obligations And Commitments
Debt Obligations and Commitments
 
2012

 
2011

Short-term debt obligations
 
 
 
Current maturities of long-term debt
$
2,901

 
$
2,549

Commercial paper (0.1% and 0.1%)
1,101

 
2,973

Other borrowings (7.4% and 7.6%)
813

 
683

 
$
4,815

 
$
6,205

Long-term debt obligations
 
 
 
Notes due 2012 (3.0%)
$

 
$
2,353

Notes due 2013 (2.3%)
2,891

 
2,841

Notes due 2014 (4.4% and 4.6%)
3,237

 
3,335

Notes due 2015 (1.5% and 2.3%)
3,300

 
1,632

Notes due 2016 (3.9%)
1,878

 
1,876

Notes due 2017 (2.0% and 5.0%)
1,250

 
258

Notes due 2018-2042 (4.4% and 4.8%)
13,781

 
10,548

Other, due 2013-2020 (9.3% and 9.9%)
108

 
274

 
26,445

 
23,117

Less: current maturities of long-term debt obligations
(2,901
)
 
(2,549
)
Total
$
23,544

 
$
20,568


The interest rates in the above table reflect weighted-average rates at year-end.
In 2012, we issued:
$750 million of 0.750% senior notes maturing in March 2015;
$900 million of 0.700% senior notes maturing in August 2015;
$1 billion of 1.250% senior notes maturing in August 2017;
$1.250 billion of 2.750% senior notes maturing in March 2022;
£500 million of 2.500% senior notes maturing in November 2022;
$750 million of 4.000% senior notes maturing in March 2042; and
$600 million of 3.600% senior notes maturing in August 2042.
The net proceeds from the issuances of all the above notes were used for general corporate purposes, including the repayment of commercial paper.
In the second quarter of 2012, we extended the termination date of our four-year unsecured revolving credit agreement (Four-Year Credit Agreement) from June 14, 2015 to June 14, 2016 and the termination date of our 364-day unsecured revolving credit agreement (364-Day Credit Agreement) from June 12, 2012 to June 11, 2013. Funds borrowed under the Four-Year Credit Agreement and the 364-Day Credit Agreement may be used for general corporate purposes of PepsiCo and its subsidiaries, including, but not limited to, working capital, capital investments and acquisitions.
In addition, as of December 29, 2012, our international debt of $857 million related to borrowings from external parties including various lines of credit. These lines of credit are subject to normal banking terms and conditions and are fully committed at least to the extent of our borrowings.
Long-Term Contractual Commitments (a) 
 
Payments Due by Period
 
Total

 
2013

 
2014 –
2015

 
2016 –
2017

 
2018 and
beyond

Long-term debt obligations(b)
$
22,858

 
$

 
$
6,450

 
$
3,105

 
$
13,303

Interest on debt obligations(c)
8,772

 
915

 
1,477

 
1,252

 
5,128

Operating leases
2,061

 
445

 
634

 
362

 
620

Purchasing commitments(d)
1,738

 
741

 
808

 
135

 
54

Marketing commitments(d)
2,332

 
298

 
605

 
490

 
939

 
$
37,761

 
$
2,399

 
$
9,974

 
$
5,344

 
$
20,044

 

(a)
Based on year-end foreign exchange rates.
(b)
Excludes $2,901 million related to current maturities of long-term debt, $349 million related to the fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS and $337 million related to the increase in carrying value of long-term debt representing the gains on our fair value interest rate swaps.
(c)
Interest payments on floating-rate debt are estimated using interest rates effective as of December 29, 2012.
(d)
Primarily reflects non-cancelable commitments as of December 29, 2012.
Most long-term contractual commitments, except for our long-term debt obligations, are not recorded on our balance sheet. Operating leases primarily represent building leases. Non-cancelable purchasing commitments are primarily for packaging materials, oranges and orange juice, and sugar and other sweeteners. Non-cancelable marketing commitments are primarily for sports marketing. Bottler funding to independent bottlers is not reflected in our long-term contractual commitments as it is negotiated on an annual basis. Accrued liabilities for pension and retiree medical plans are not reflected in our long-term contractual commitments because they do not represent expected future cash outflows. See Note 7 to our consolidated financial statements for additional information regarding our pension and retiree medical obligations.
Off-Balance-Sheet Arrangements
It is not our business practice to enter into off-balance-sheet arrangements, other than in the normal course of business. See Note 8 to our consolidated financial statements regarding contracts related to certain of our bottlers.
See “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our borrowings.
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Financial Instruments
12 Months Ended
Dec. 29, 2012
Derivative Instruments and Hedges, Assets [Abstract]
Financial Instruments
Financial Instruments
We are exposed to market risks arising from adverse changes in:
commodity prices, affecting the cost of our raw materials and energy;
foreign exchange risks and currency restrictions; and
interest rates.
In the normal course of business, we manage these risks through a variety of strategies, including the use of derivatives. Certain derivatives are designated as either cash flow or fair value hedges and qualify for hedge accounting treatment, while others do not qualify and are marked to market through earnings. Cash flows from derivatives used to manage commodity, foreign exchange or interest risks are classified as operating activities. We classify both the earnings and cash flow impact from these derivatives consistent with the underlying hedged item. See “Our Business Risks” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our business risks.
For cash flow hedges, changes in fair value are deferred in accumulated other comprehensive loss within common shareholders’ equity until the underlying hedged item is recognized in net income. For fair value hedges, changes in fair value are recognized immediately in earnings, consistent with the underlying hedged item. Hedging transactions are limited to an underlying exposure. As a result, any change in the value of our derivative instruments would be substantially offset by an opposite change in the value of the underlying hedged items. Hedging ineffectiveness and a net earnings impact occur when the change in the value of the hedge does not offset the change in the value of the underlying hedged item. If the derivative instrument is terminated, we continue to defer the related gain or loss and then include it as a component of the cost of the underlying hedged item. Upon determination that the underlying hedged item will not be part of an actual transaction, we recognize the related gain or loss on the hedge in net income immediately.
We also use derivatives that do not qualify for hedge accounting treatment. We account for such derivatives at market value with the resulting gains and losses reflected in our income statement. We do not use derivative instruments for trading or speculative purposes. We perform assessments of our counterparty credit risk regularly, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. Based on our most recent assessment of our counterparty credit risk, we consider this risk to be low. In addition, we enter into derivative contracts with a variety of financial institutions that we believe are creditworthy in order to reduce our concentration of credit risk.
Commodity Prices
We are subject to commodity price risk because our ability to recover increased costs through higher pricing may be limited in the competitive environment in which we operate. This risk is managed through the use of fixed-price purchase orders, pricing agreements and derivatives. In addition, risk to our supply of certain raw materials is mitigated through purchases from multiple geographies and suppliers. We use derivatives, with terms of no more than three years, to economically hedge price fluctuations related to a portion of our anticipated commodity purchases, primarily for agricultural products, metals and energy. For those derivatives that qualify for hedge accounting, any ineffectiveness is recorded immediately in corporate unallocated expenses. Ineffectiveness was not material for all periods presented. During the next 12 months, we expect to reclassify net losses of $12 million related to these hedges from accumulated other comprehensive loss into net income. Derivatives used to hedge commodity price risk that do not qualify for hedge accounting are marked to market each period and reflected in our income statement.
Our open commodity derivative contracts that qualify for hedge accounting had a face value of $507 million as of December 29, 2012 and $598 million as of December 31, 2011.
Our open commodity derivative contracts that do not qualify for hedge accounting had a face value of $853 million as of December 29, 2012 and $630 million as of December 31, 2011.
Foreign Exchange
Our operations outside of the U.S. generate 49% of our net revenue, with Russia, Mexico, Canada, the United Kingdom and Brazil comprising approximately 25% of our net revenue. As a result, we are exposed to foreign currency risks.
Additionally, we are also exposed to foreign currency risk from foreign currency purchases and foreign currency assets and liabilities created in the normal course of business. We manage this risk through sourcing purchases from local suppliers, negotiating contracts in local currencies with foreign suppliers and through the use of derivatives, primarily forward contracts with terms of no more than two years. Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses in our income statement as incurred.
Our foreign currency derivatives had a total face value of $2.8 billion as of December 29, 2012 and $2.3 billion as of December 31, 2011. During the next 12 months, we expect to reclassify net losses of $14 million related to foreign currency contracts that qualify for hedge accounting from accumulated other comprehensive loss into net income. Additionally, ineffectiveness for our foreign currency hedges was not material for all periods presented. For foreign currency derivatives that do not qualify for hedge accounting treatment, all losses and gains were offset by changes in the underlying hedged items, resulting in no net material impact on earnings.
Interest Rates
We centrally manage our debt and investment portfolios considering investment opportunities and risks, tax consequences and overall financing strategies. We use various interest rate derivative instruments including, but not limited to, interest rate swaps, cross-currency interest rate swaps, Treasury locks and swap locks to manage our overall interest expense and foreign exchange risk. These instruments effectively change the interest rate and currency of specific debt issuances. Certain of our fixed rate indebtedness has been swapped to floating rates. The notional amount, interest payment and maturity date of the interest rate and cross-currency swaps match the principal, interest payment and maturity date of the related debt. Our Treasury locks and swap locks are entered into to protect against unfavorable interest rate changes relating to forecasted debt transactions.
The notional amounts of the interest rate derivative instruments outstanding as of December 29, 2012 and December 31, 2011 were $8.1 billion and $8.3 billion, respectively. For those interest rate derivative instruments that qualify for cash flow hedge accounting, any ineffectiveness is recorded immediately. Ineffectiveness was not material for all periods presented. During the next 12 months, we expect to reclassify net losses of $23 million related to these hedges from accumulated other comprehensive loss into net income.
As of December 29, 2012, approximately 27% of total debt, after the impact of the related interest rate derivative instruments, was exposed to variable rates, compared to 38% as of December 31, 2011.
Fair Value Measurements
The fair values of our financial assets and liabilities as of December 29, 2012 and December 31, 2011 are categorized as follows:
 
2012
 
2011
 
Assets(a)
 
Liabilities(a)
 
Assets(a)
 
Liabilities(a)
Available-for-sale securities(b)
$
79

 
$

 
$
59

 
$

Short-term investments – index funds(c)
$
161

 
$

 
$
157

 
$

Prepaid forward contracts(d)
$
33

 
$

 
$
40

 
$

Deferred compensation(e)
$

 
$
492

 
$

 
$
519

Derivatives designated as fair value hedging instruments:
 
 
 
 
 
 
 
Interest rate derivatives(f)
$
276

 
$

 
$
300

 
$

Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts(g)
$
5

 
$
19

 
$
25

 
$
5

Interest rate derivatives(f)
6

 

 

 
69

Commodity contracts(h)
8

 
24

 
3

 
78

 
$
19

 
$
43

 
$
28

 
$
152

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts(g)
$
8

 
$
6

 
$
17

 
$
20

Interest rate derivatives(f)
123

 
153

 
107

 
141

Commodity contracts(h)
40

 
45

 
10

 
62

 
$
171

 
$
204

 
$
134

 
$
223

Total derivatives at fair value
$
466

 
$
247

 
$
462

 
$
375

Total
$
739

 
$
739

 
$
718

 
$
894

 
(a)
Financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets, with the exception of available-for-sale securities and short-term investments, which are classified as short-term investments. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities. Unless specifically indicated, all financial assets and liabilities are categorized as Level 2 assets or liabilities.
(b)
Based on the price of common stock. Categorized as a Level 1 asset.
(c)
Based on price changes in index funds used to manage a portion of market risk arising from our deferred compensation liability. Categorized as a Level 1 asset.
(d)
Based primarily on the price of our common stock.
(e)
Based on the fair value of investments corresponding to employees’ investment elections. As of December 29, 2012 and December 31, 2011, $10 million and $44 million, respectively, are categorized as Level 1 liabilities. The remaining balances are categorized as Level 2 liabilities.
(f)
Based on LIBOR forward rates and recently reported market transactions of spot and forward rates.
(g)
Based on recently reported market transactions of spot and forward rates.
(h)
Based on recently reported transactions in the marketplace, primarily swap arrangements.

The effective portion of the pre-tax (gains)/losses on our derivative instruments are categorized in the table below.
 
Fair Value/Non-
designated  Hedges
 
Cash Flow Hedges
 
(Gains)/Losses
Recognized  in
Income Statement(a)
 
Losses/(Gains)
Recognized in
Accumulated Other
Comprehensive Loss
 
Losses/(Gains)
Reclassified from
Accumulated Other
Comprehensive Loss
into Income
Statement(b)
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Foreign exchange contracts
$
(23
)
 
$
14

 
$
41

 
$
(9
)
 
$
8

 
$
26

Interest rate derivatives
17

 
(113
)
 
(2
)
 
84

 
19

 
15

Commodity contracts
(23
)
 
25

 
11

 
51

 
63

 
(36
)
Total
$
(29
)
 
$
(74
)
 
$
50

 
$
126

 
$
90

 
$
5

 
(a)
Interest rate derivative losses are primarily from fair value hedges and are included in interest expense. These losses are substantially offset by decreases in the value of the underlying debt, which is also included in interest expense. All other gains/losses are from non-designated hedges and are included in corporate unallocated expenses.
(b)
Interest rate derivative losses are included in interest expense. All other gains/losses are primarily included in cost of sales.
The carrying amounts of our cash and cash equivalents and short-term investments approximate fair value due to the short-term maturity. Short-term investments consist principally of short-term time deposits and index funds used to manage a portion of market risk arising from our deferred compensation liability. The fair value of our debt obligations as of December 29, 2012 and December 31, 2011 was $30.5 billion and $29.8 billion, respectively, based upon prices of similar instruments in the marketplace.
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Net Income Attributable to PepsiCo per Common Share
12 Months Ended
Dec. 29, 2012
Earnings Per Share [Abstract]
Net Income Attributable To PepsiCo Per Common Share
Net Income Attributable to PepsiCo per Common Share
Basic net income attributable to PepsiCo per common share is net income available for PepsiCo common shareholders divided by the weighted average of common shares outstanding during the period. Diluted net income attributable to PepsiCo per common share is calculated using the weighted average of common shares outstanding adjusted to include the effect that would occur if in-the-money employee stock options were exercised and RSUs and preferred shares were converted into common shares. Options to purchase 9.6 million shares in 2012, 25.9 million shares in 2011 and 24.4 million shares in 2010 were not included in the calculation of diluted earnings per common share because these options were out-of-the-money. Out-of-the-money options had average exercise prices of $67.64 in 2012, $66.99 in 2011 and $67.26 in 2010.
The computations of basic and diluted net income attributable to PepsiCo per common share are as follows:
 
 
2012
 
2011
 
2010
 
Income
 
Shares(a)
 
Income
 
Shares(a)
 
Income
 
Shares(a)
Net income attributable to PepsiCo
$
6,178

 
 
 
$
6,443

 
 
 
$
6,320

 
 
Preferred shares:
 
 
 
 
 
 
 
 
 
 
 
Dividends
(1
)
 
 
 
(1
)
 
 
 
(1
)
 
 
Redemption premium
(6
)
 
 
 
(6
)
 
 
 
(5
)
 
 
Net income available for PepsiCo common shareholders
$
6,171

 
1,557

 
$
6,436

 
1,576

 
$
6,314

 
1,590

Basic net income attributable to PepsiCo per common share
$
3.96

 
 
 
$
4.08

 
 
 
$
3.97

 
 
Net income available for PepsiCo common shareholders
$
6,171

 
1,557

 
$
6,436

 
1,576

 
$
6,314

 
1,590

Dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
Stock options and RSUs

 
17

 

 
20

 

 
23

ESOP convertible preferred stock
7

 
1

 
7

 
1

 
6

 
1

Diluted
$
6,178

 
1,575

 
$
6,443

 
1,597

 
$
6,320

 
1,614

Diluted net income attributable to PepsiCo per common share
$
3.92

 
 
 
$
4.03

 
 
 
$
3.91

 
 
 
(a)
Weighted-average common shares outstanding (in millions).
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Preferred Stock
12 Months Ended
Dec. 29, 2012
Equity [Abstract]
Preferred Stock
Preferred Stock
As of December 29, 2012 and December 31, 2011, there were 3 million shares of convertible preferred stock authorized. The preferred stock was issued for an ESOP established by Quaker and these shares are redeemable for common stock by the ESOP participants. The preferred stock accrues dividends at an annual rate of $5.46 per share. At year-end 2012 and 2011, there were 803,953 preferred shares issued and 186,553 and 206,653 shares outstanding, respectively. The outstanding preferred shares had a fair value of $63 million as of December 29, 2012 and $68 million as of December 31, 2011. Each share is convertible at the option of the holder into 4.9625 shares of common stock. The preferred shares may be called by us upon written notice at $78 per share plus accrued and unpaid dividends. Quaker made the final award to its ESOP plan in June 2001.
 
2012
 
2011
 
2010
 
Shares(a)
 
Amount
 
Shares(a)
 
Amount
 
Shares(a)
 
Amount
Preferred stock
0.8

 
$
41

 
0.8

 
$
41

 
0.8

 
$
41

Repurchased preferred stock

 
 
 
 
 
 
 
 
 

Balance, beginning of year
0.6

 
$
157

 
0.6

 
$
150

 
0.6

 
$
145

Redemptions

 
7

 

 
7

 

 
5

Balance, end of year
0.6

 
$
164

 
0.6

 
$
157

 
0.6

 
$
150

 
(a)
In millions.
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Accumulated Other Comprehensive Loss Attributable to Pepsico
12 Months Ended
Dec. 29, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss Attributable To Pepsico
Accumulated Other Comprehensive Loss Attributable to PepsiCo
Comprehensive income is a measure of income which includes both net income and other comprehensive income or loss. Other comprehensive income or loss results from items deferred from recognition into our income statement. Accumulated other comprehensive income or loss is separately presented on our balance sheet as part of common shareholders’ equity. Other comprehensive income/(loss) attributable to PepsiCo was $742 million in 2012, $(2,599) million in 2011 and $164 million in 2010. The accumulated balances for each component of other comprehensive loss attributable to PepsiCo were as follows:
 
 
2012

 
2011

 
2010

Currency translation adjustment
$
(1,946
)
 
$
(2,688
)
 
$
(1,159
)
Cash flow hedges, net of tax
(94
)
 
(112
)
 
(38
)
Unamortized pension and retiree medical, net of tax (a)
(3,491
)
 
(3,419
)
 
(2,442
)
Unrealized gain on securities, net of tax
80

 
62

 
70

Other
(36
)
 
(72
)
 
(61
)
Accumulated other comprehensive loss attributable to PepsiCo
$
(5,487
)
 
$
(6,229
)
 
$
(3,630
)
(a)
Net of taxes of $1,832 million in 2012, $1,831 million in 2011 and $1,322 million in 2010.
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Supplemental Financial Information
12 Months Ended
Dec. 29, 2012
Supplemental Financial Information [Abstract]
Supplemental Financial Information
Supplemental Financial Information
 
2012

 
2011

 
2010

Accounts receivable
 
 
 
 
 
Trade receivables
$
6,215

 
$
6,036

 
 
Other receivables
983

 
1,033

 
 
 
7,198

 
7,069

 
 
Allowance, beginning of year
157

 
144

 
$
90

Net amounts charged to expense
28

 
30

 
12

Deductions (a)
(27
)
 
(41
)
 
(37
)
Other (b)
(1
)
 
24

 
79

Allowance, end of year
157

 
157

 
$
144

Net receivables
$
7,041

 
$
6,912

 
 
 
 
 
 
 
 
Inventories (c)
 
 
 
 
 
Raw materials
$
1,875

 
$
1,883

 
 
Work-in-process
173

 
207

 
 
Finished goods
1,533

 
1,737

 
 
 
$
3,581

 
$
3,827

 
 


(a)
Includes accounts written off.
(b)
Includes adjustments related to acquisitions, currency translation and other adjustments.
(c)
Approximately 3%, in both 2012 and 2011, of the inventory cost was computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material.
 
2012

 
2011

 
Other assets
 
 
 
 
Noncurrent notes and accounts receivable
$
136

 
$
159

 
Deferred marketplace spending
195

 
186

 
Pension plans
62

 
65

 
Other investments (a)
718

 
89

 
Other
542

 
522

 
 
$
1,653

 
$
1,021

 
Accounts payable and other current liabilities
 
 
 
 
Accounts payable
$
4,451

 
$
4,083

 
Accrued marketplace spending
2,187

 
2,105

 
Accrued compensation and benefits
1,705

 
1,771

 
Dividends payable
838

 
813

 
Other current liabilities
2,722

 
2,985

 
 
$
11,903

 
$
11,757

 

(a)
Net increase in 2012 primarily relates to our 5% indirect equity interest in Tingyi-Asahi Beverages Holding Co. Ltd. (TAB).
 
2012

 
2011

 
2010

Other supplemental information
 
 
 
 
 
Rent expense
$
581

 
$
589

 
$
526

Interest paid
$
1,074

 
$
1,039

 
$
1,043

Income taxes paid, net of refunds
$
1,840

 
$
2,218

 
$
1,495

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Acquisitions
12 Months Ended
Dec. 29, 2012
Business Acquisition, Entity Acquired and Reason for Acquisition [Abstract]
Acquisitions
Acquisitions and Divestitures
PBG and PAS
On February 26, 2010, we acquired PBG and PAS to create a more fully integrated supply chain and go-to-market business model, improving the effectiveness and efficiency of the distribution of our brands and enhancing our revenue growth. The total purchase price was approximately $12.6 billion, which included $8.3 billion of cash and equity and the fair value of our previously held equity interests in PBG and PAS of $4.3 billion. The acquisitions were accounted for as business combinations, and, accordingly, the identifiable assets acquired and liabilities assumed were recorded at their estimated fair values at the date of acquisition. Our fair market valuations of the identifiable assets acquired and liabilities assumed were completed in the first quarter of 2011.
WBD
On February 3, 2011, we acquired the ordinary shares, including shares underlying ADSs and Global Depositary Shares (GDS), of WBD, a company incorporated in the Russian Federation, which represented in the aggregate approximately 66% of WBD’s outstanding ordinary shares, pursuant to the purchase agreement dated December 1, 2010 between PepsiCo and certain selling shareholders of WBD for approximately $3.8 billion in cash (or $2.4 billion, net of cash and cash equivalents acquired). The acquisition of those shares increased our total ownership to approximately 77%, giving us a controlling interest in WBD. Under the guidance on accounting for business combinations, once a controlling interest is obtained, we were required to recognize and measure 100% of the identifiable assets acquired, liabilities assumed and noncontrolling interests at their full fair values. Our fair market valuations of the identifiable assets acquired and liabilities assumed were completed in the first quarter of 2012 and the final valuations did not materially differ from those fair values reported as of December 31, 2011.

On March 10, 2011, we commenced tender offers in Russia and the U.S. for all remaining outstanding ordinary shares and ADSs of WBD for 3,883.70 Russian rubles per ordinary share and 970.925 Russian rubles per ADS, respectively. The Russian offer was made to all holders of ordinary shares and the U.S. offer was made to all holders of ADSs. We completed the Russian offer on May 19, 2011 and the U.S. offer on May 16, 2011. After completion of the offers, we paid approximately $1.3 billion for WBD’s ordinary shares (including shares underlying ADSs) and increased our total ownership of WBD to approximately 98.6%.
On June 30, 2011, we elected to exercise our squeeze-out rights under Russian law with respect to all remaining WBD ordinary shares not already owned by us. Therefore, under Russian law, all remaining WBD shareholders were required to sell their ordinary shares (including those underlying ADSs) to us at the same price that was offered to WBD shareholders in the Russian tender offer. Accordingly, all registered holders of ordinary shares on August 15, 2011 (including the ADSs depositary) received 3,883.70 Russian rubles per ordinary share. After completion of the squeeze-out in September 2011, we paid approximately $79 million for WBD’s ordinary shares (including shares underlying ADSs) and increased our total ownership to 100% of WBD.
Tingyi-Asahi Beverages Holding Co. Ltd.
On March 31, 2012, we completed a transaction with Tingyi. Under the terms of the agreement, we contributed our company-owned and joint venture bottling operations in China to Tingyi’s beverage subsidiary, TAB, and received as consideration a 5% indirect equity interest in TAB. As a result of this transaction, TAB is now our franchise bottler in China. We also have a call option to increase our indirect holding in TAB to 20% by 2015. We recorded restructuring and other charges of $150 million ($176 million after-tax or $0.11 per share), primarily consisting of employee-related charges, in our 2012 results.  This charge is reflected in items affecting comparability. See “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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Our Significant Accounting Policies (Policy)
12 Months Ended
Dec. 29, 2012
Accounting Policies [Abstract]
Revenue Recognition
Revenue Recognition
We recognize revenue upon shipment or delivery to our customers based on written sales terms that do not allow for a right of return. However, our policy for DSD and certain chilled products is to remove and replace damaged and out-of-date products from store shelves to ensure that consumers receive the product quality and freshness they expect. Similarly, our policy for certain warehouse-distributed products is to replace damaged and out-of-date products. Based on our experience with this practice, we have reserved for anticipated damaged and out-of-date products. For additional unaudited information on our revenue recognition and related policies, including our policy on bad debts, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. We are exposed to concentration of credit risk by our customers, including Wal-Mart. In 2012, Wal-Mart (including Sam’s) represented approximately 11% of our total net revenue, including concentrate sales to our independent bottlers which are used in finished goods sold by them to Wal-Mart. We have not experienced credit issues with these customers.
Sales Incentives And Other Marketplace Spending
Total Marketplace Spending
We offer sales incentives and discounts through various programs to customers and consumers. Total marketplace spending includes sales incentives, discounts, advertising and other marketing activities. Sales incentives and discounts are primarily accounted for as a reduction of revenue and totaled $34.7 billion in 2012, $34.6 billion in 2011 and $29.1 billion in 2010. Sales incentives and discounts include payments to customers for performing merchandising activities on our behalf, such as payments for in-store displays, payments to gain distribution of new products, payments for shelf space and discounts to promote lower retail prices. It also includes support provided to our independent bottlers through funding of advertising and other marketing activities. While most of these incentive arrangements have terms of no more than one year, certain arrangements, such as fountain pouring rights, may extend beyond one year. Costs incurred to obtain these arrangements are recognized over the shorter of the economic or contractual life, as a reduction of revenue, and the remaining balances of $335 million as of December 29, 2012 and $313 million as of December 31, 2011, are included in current assets and other assets on our balance sheet. For additional unaudited information on our sales incentives, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Advertising and other marketing activities, reported as selling, general and administrative expenses, totaled $3.7 billion in 2012, $3.5 billion in 2011 and $3.4 billion in 2010, including advertising expenses of $2.2 billion in 2012 and $1.9 billion in both 2011 and 2010. Deferred advertising costs are not expensed until the year first used and consist of:
media and personal service prepayments;
promotional materials in inventory; and
production costs of future media advertising.
Deferred advertising costs of $88 million and $163 million at year-end 2012 and 2011, respectively, are classified as prepaid expenses on our balance sheet.
Distribution Costs
Distribution Costs
Distribution costs, including the costs of shipping and handling activities, are reported as selling, general and administrative expenses. Shipping and handling expenses were $9.1 billion in 2012, $9.2 billion in 2011 and $7.7 billion in 2010.
Cash Equivalents
Cash Equivalents
Cash equivalents are highly liquid investments with original maturities of three months or less.
Software Costs
Software Costs
We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project and (iii) interest costs incurred while developing internal-use computer software. Capitalized software costs are included in property, plant and equipment on our balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software, which approximate 5 to 10 years. Software amortization totaled $196 million in 2012, $156 million in 2011 and $137 million in 2010. Net capitalized software and development costs were $1.1 billion as of December 29, 2012 and $1.3 billion as of December 31, 2011.
Commitments And Contingencies
Commitments and Contingencies
We are subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as well as commitments under contractual and other commercial obligations. We recognize liabilities for contingencies and commitments when a loss is probable and estimable. For additional information on our commitments, see Note 9 to our consolidated financial statements.
Research And Development
Research and Development
We engage in a variety of research and development activities and continue to invest to accelerate growth in these activities and to drive innovation globally. These activities principally involve the development of new products, improvement in the quality of existing products, improvement and modernization of production processes, and the development and implementation of new technologies to enhance the quality and value of both current and proposed product lines. Consumer research is excluded from research and development costs and included in other marketing costs. Research and development costs were $552 million in 2012, $525 million in 2011 and $488 million in 2010 and are reported within selling, general and administrative expenses.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
In July 2012, the Financial Accounting Standards Board (FASB) issued new accounting guidance that permits an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform a quantitative impairment test. An entity would continue to calculate the fair value of an indefinite-lived intangible asset if the asset fails the qualitative assessment, while no further analysis would be required if it passes. The provisions of the new guidance are effective as of the beginning of our 2013 fiscal year. We do not expect the new guidance to have an impact on the 2013 impairment test results.
In September 2011, the FASB issued new accounting guidance that permits an entity to first assess qualitative factors of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. An entity would continue to perform the historical first step of the impairment test if it fails the qualitative assessment, while no further analysis would be required if it passes. The provisions of the new guidance were effective for, and had no impact on, our 2012 annual goodwill impairment test results.
In December 2011, the FASB issued new disclosure requirements that are intended to enhance current disclosures on offsetting financial assets and liabilities. The new disclosures require an entity to disclose both gross and net information about derivative instruments accounted for in accordance with the guidance on derivatives and hedging that are eligible for offset on the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. The provisions of the new disclosure requirements are effective as of the beginning of our 2014 fiscal year. We are currently evaluating the impact of the new guidance on our financial statements.
In September 2011, the FASB amended its guidance regarding the disclosure requirements for employers participating in multiemployer pension and other postretirement benefit plans (multiemployer plans) to improve transparency and increase awareness of the commitments and risks involved with participation in multiemployer plans. The new accounting guidance requires employers participating in multiemployer plans to provide additional quantitative and qualitative disclosures to provide users with more detailed information regarding an employer’s involvement in multiemployer plans. The provisions of this new guidance were effective as of the beginning of our 2011 fiscal year and did not have a material impact on our financial statements.
In June 2011, the FASB amended its accounting guidance on the presentation of comprehensive income in financial statements to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items that are recorded in other comprehensive income. The new accounting guidance requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. The provisions of the guidance were effective as of the beginning of our 2012 fiscal year. Accordingly, we have presented the components of net income and other comprehensive income for the fiscal years ended December 29, 2012, December 31, 2011 and December 25, 2010 as separate but consecutive statements. In February 2013, the FASB issued guidance that would require an entity to provide enhanced footnote disclosures to explain the effect of reclassification adjustments on other comprehensive income by component and provide tabular disclosure in the footnotes showing the effect of items reclassified from accumulated other comprehensive income on the line items of net income. The provisions of this new guidance are effective as of the beginning of our 2013 fiscal year. We do not expect the adoption of this new guidance to have a material impact on our financial statements.
In the second quarter of 2010, the Patient Protection and Affordable Care Act (PPACA) was signed into law. The PPACA changes the tax treatment related to an existing retiree drug subsidy (RDS) available to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under Medicare Part D. As a result of the PPACA, RDS payments will effectively become taxable in tax years beginning in 2013, by requiring the amount of the subsidy received to be offset against our deduction for health care expenses. The provisions of the PPACA required us to record the effect of this tax law change beginning in our second quarter of 2010, and consequently we recorded a one-time related tax charge of $41 million in the second quarter of 2010. In the first quarter of 2012, we began pre-paying funds within our 401(h) voluntary employee beneficiary associations (VEBA) trust to fully cover prescription drug benefit liabilities for Medicare eligible retirees. As a result, the receipt of future Medicare subsidy payments for prescription drugs will not be taxable and consequently we recorded a $55 million tax benefit reflecting this change in the first quarter of 2012.
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Basis of Presentation and Our Divisions (Tables)
12 Months Ended
Dec. 29, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule Of Quarterly Reporting
The following chart details our quarterly reporting schedule for all other reporting periods presented:
 
Quarter
  
U.S. and Canada
  
International
First Quarter
  
12 weeks
  
January, February
Second Quarter
  
12 weeks
  
March, April and May
Third Quarter
  
12 weeks
  
June, July and August
Fourth Quarter
  
16 weeks
  
September, October, November and December
Schedule of Segment Reporting Information, by Segment
 
Net Revenue
 
Operating Profit (a)
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

FLNA
$
13,574

 
$
13,322

 
$
12,573

 
$
3,646

 
$
3,621

 
$
3,376

QFNA
2,636

 
2,656

 
2,656

 
695

 
797

 
741

LAF
7,780

 
7,156

 
6,315

 
1,059

 
1,078

 
1,004

PAB
21,408

 
22,418

 
20,401

 
2,937

 
3,273

 
2,776

Europe (b)
13,441

 
13,560

 
9,602

 
1,330

 
1,210

 
1,054

AMEA
6,653

 
7,392

 
6,291

 
747

 
887

 
708

Total division
65,492

 
66,504

 
57,838

 
10,414

 
10,866

 
9,659

Corporate Unallocated

 

 

 

 

 

Mark-to-market net impact gains/(losses)






65


(102
)

91

Merger and integration charges








(78
)

(191
)
Restructuring and impairment charges






(10
)

(74
)


Pension lump sum settlement charge






(195
)




53rd week








(18
)


Venezuela currency devaluation










(129
)
Asset write-off










(145
)
Foundation contribution










(100
)
Other






(1,162
)
 
(961
)
 
(853
)
 
$
65,492

 
$
66,504

 
$
57,838

 
$
9,112

 
$
9,633

 
$
8,332

(a)
For information on the impact of restructuring, impairment and integration charges on our divisions, see Note 3 to our consolidated financial
statements.
(b) Change in net revenue in 2011 relates primarily to our acquisition of WBD.
Segment Reporting Information By Total Assets And Capital Spending
 
Total Assets

Capital Spending
 
2012


2011


2010


2012


2011


2010

FLNA
$
5,332


$
5,384


$
5,276


$
365


$
439


$
515

QFNA
966


1,024


1,062


37


43


48

LAF
4,993


4,721


4,041


436


413


370

PAB
30,899


31,142


31,571


702


1,006


973

Europe (a)
19,218


18,461


13,018


575


588


517

AMEA
5,738


6,038


5,557


510


693


610

Total division
67,146


66,770


60,525


2,625


3,182


3,033

Corporate (b)
7,492


6,112


7,389


89


157


220

Investments in bottling affiliates




239








$
74,638


$
72,882


$
68,153


$
2,714


$
3,339


$
3,253


(a)
Changes in total assets in 2011 relate primarily to our acquisition of WBD.
(b)
Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments and property, plant and equipment.
Segment Reporting Information By Amortization Of Intangible Assets And Depreciation And Other Amortization
 
Amortization of Intangible
Assets

Depreciation and
Other Amortization
 
2012


2011


2010


2012


2011


2010

FLNA
$
7


$
7


$
7


$
445


$
458


$
448

QFNA






53


54


52

LAF
10


10


6


248


238


213

PAB
59


65


56


855


865


749

Europe
36


39


35


522


522


355

AMEA
7


12


13


305


350


294

Total division
119


133


117


2,428


2,487


2,111

Corporate






142


117


99


$
119


$
133


$
117


$
2,570


$
2,604


$
2,210

Segment Reporting Information By Net Revenue And Long-Lived Assets
 
Net Revenue

Long-Lived Assets(a)
 
2012


2011


2010


2012


2011


2010

U.S.
$
33,348


$
33,053


$
30,618


$
28,344


$
28,999


$
28,631

Russia (b)
4,861


4,749


1,890


8,603


8,121


2,744

Mexico
3,955


4,782


4,531


1,237


1,027


1,671

Canada
3,290


3,364


3,081


3,294


3,097


3,133

United Kingdom
2,102


2,075


1,888


1,053


1,011


1,019

Brazil
1,866

 
1,838

 
1,582

 
1,134

 
1,124

 
677

All other countries
16,070


16,643


14,248


10,600


11,041


11,020


$
65,492


$
66,504


$
57,838


$
54,265


$
54,420


$
48,895


(a)
Long-lived assets represent property, plant and equipment, nonamortizable intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used.
(b)
Change in 2011 relates primarily to our acquisition of WB
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Restructuring, Impairment and Integration Charges (Tables)
12 Months Ended
Dec. 29, 2012
Restructuring and Related Activities [Abstract]
Summary Of Productivity Plan Activity
A summary of our Productivity Plan charges in 2012 was as follows: 
 
Severance and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
FLNA
$
14

 
$
8

 
$
16

 
$
38

QFNA

 

 
9

 
9

LAF
15

 
8

 
27

 
50

PAB
34

 
43

 
25

 
102

Europe
14

 
16

 
12

 
42

AMEA
18

 

 
10

 
28

Corporate
(6
)
 

 
16

 
10


$
89

 
$
75

 
$
115

 
$
279

A summary of our Productivity Plan charges in 2011 was as follows:
 
Severance and Other
Employee Costs
 
Other Costs
 
Total
FLNA
$
74

 
$
2

 
$
76

QFNA
18

 

 
18

LAF
46

 
2

 
48

PAB
75

 
6

 
81

Europe
65

 
12

 
77

AMEA
9

 

 
9

Corporate
40

 
34

 
74


$
327

 
$
56

 
$
383


A summary of our Productivity Plan activity in 2011 and 2012 was as follows:

Severance and Other
Employee Costs

Asset Impairments

Other Costs

Total
2011 restructuring charges
$
327


$


$
56


$
383

Cash payments
(1
)



(29
)

(30
)
Non-cash charges
(77
)





(77
)
Liability as of December 31, 2011
249




27


276

2012 restructuring charges
89


75


115


279

Cash payments
(239
)



(104
)

(343
)
Non-cash charges
(8
)

(75
)

(2
)

(85
)
Liability as of December 29, 2012
$
91


$


$
36


$
127

Schedule Of Merger And Integration Activity
A summary of our merger and integration activity was as follows:
 
Severance and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
2010 merger and integration charges
$
396

 
$
132

 
$
280

 
$
808

Cash payments
(114
)
 

 
(271
)
 
(385
)
Non-cash charges
(103
)
 
(132
)
 
16

 
(219
)
Liability as of December 25, 2010
179

 

 
25

 
204

2011 merger and integration charges
146

 
34

 
149

 
329

Cash payments
(191
)
 

 
(186
)
 
(377
)
Non-cash charges
(36
)
 
(34
)
 
19

 
(51
)
Liability as of December 31, 2011
98

 

 
7

 
105

2012 merger and integration charges
(3
)
 
1

 
18

 
16

Cash payments
(65
)
 

 
(18
)
 
(83
)
Non-cash charges
(12
)
 
(1
)
 
(1
)
 
(14
)
Liability as of December 29, 2012
$
18

 
$

 
$
6

 
$
24

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Property, Plant and Equipment and Intangible Assets (Tables)
12 Months Ended
Dec. 29, 2012
Property, Plant And Equipment And Intangible Assets [Abstract]
Property, Plant and Equipment

Average
Useful Life (Years)
 
2012

 
2011

 
2010

Property, plant and equipment, net

 

 

 

Land and improvements
10 – 34
 
$
1,890

 
$
1,951

 

Buildings and improvements
15 – 44     
 
7,792

 
7,565

 

Machinery and equipment, including fleet and software
5 – 15
 
24,743

 
23,798

 

Construction in progress

 
1,737

 
1,826

 



 
36,162

 
35,140

 

Accumulated depreciation

 
(17,026
)
 
(15,442
)
 



 
$
19,136

 
$
19,698

 

Depreciation expense

 
$
2,489

 
$
2,476

 
$
2,124

Amortizable Intangible Assets, Net

 

2012

2011
 
2010
Amortizable intangible assets, net
Average
Useful Life (Years)

Gross

Accumulated
Amortization

Net

Gross

Accumulated
Amortization

Net
 

Acquired franchise rights
56 – 60      

$
931


$
(67
)

$
864


$
916


$
(42
)

$
874

 

Reacquired franchise rights
1 – 14    

110


(68
)

42


110


(47
)

63

 

Brands
5 – 40  

1,422


(980
)

442


1,417


(945
)

472

 

Other identifiable intangibles
10 – 24     

736


(303
)

433


777


(298
)

479

 




$
3,199


$
(1,418
)

$
1,781


$
3,220


$
(1,332
)

$
1,888

 

Amortization expense






$
119






$
133

 
$
117

Future Amortization of Intangible Assets
Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 29, 2012 and using average 2012 foreign exchange rates, is expected to be as follows:
 
 
2013


2014


2015


2016


2017

Five-year projected amortization
 
$
110

 
$
95

 
$
86

 
$
78

 
$
72

Change in Book Value of Nonamortizable Intangible Assets
The change in the book value of nonamortizable intangible assets is as follows:
 

Balance,
Beginning
2011
 
Acquisitions/(Divestitures)
 
Translation
and Other
 
Balance,
End of
2011
 
Acquisitions/
(Divestitures)
 
Translation
and Other
 
Balance,
End of
2012
FLNA

 

 

 

 

 

 

Goodwill
$
313

 
$

 
$
(2
)
 
$
311

 
$

 
$
5

 
$
316

Brands
31

 

 
(1
)
 
30

 

 
1

 
31


344

 

 
(3
)
 
341

 

 
6

 
347

QFNA

 

 

 

 

 

 

Goodwill
175

 

 

 
175

 

 

 
175

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LAF

 

 

 

 

 

 

Goodwill
497

 
331

 
(35
)
 
793

 
(61
)
 
(16
)
 
716

Brands
143

 
20

 
(6
)
 
157

 
75

 
(9
)
 
223


640

 
351

 
(41
)
 
950

 
14

 
(25
)
 
939

PAB

 

 

 

 

 

 

Goodwill
9,946

 
(27
)
 
13

 
9,932

 
23

 
33

 
9,988

Reacquired franchise rights
7,283

 
77

 
(18
)
 
7,342

 
(33
)
 
28

 
7,337

Acquired franchise rights
1,565

 
(1
)
 
(2
)

1,562

 
9

 
2

 
1,573

Brands
182

 
(20
)
 
6

 
168

 

 
(15
)
 
153

Other
10

 
(9
)
 
(1
)
 

 

 

 


18,986

 
20

 
(2
)
 
19,004

 
(1
)
 
48

 
19,051

Europe (a)

 

 

 

 

 

 

Goodwill
3,040

 
2,131

 
(271
)
 
4,900

 
78

 
236

 
5,214

Reacquired franchise rights
793

 

 
(61
)
 
732

 

 
40

 
772

Acquired franchise rights
227

 

 
(9
)
 
218

 

 
5

 
223

Brands
1,380

 
3,114

 
(316
)
 
4,178

 
(96
)
 
202

 
4,284


5,440

 
5,245

 
(657
)
 
10,028

 
(18
)
 
483

 
10,493

AMEA

 

 

 

 

 

 

Goodwill
690

 

 
(1
)
 
689

 
(142
)
 
15

 
562

Brands
169

 

 
1

 
170

 
(24
)
 
2

 
148


859

 

 

 
859

 
(166
)
 
17

 
710

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total goodwill
14,661

 
2,435

 
(296
)
 
16,800

 
(102
)
 
273

 
16,971

Total reacquired franchise rights
8,076

 
77

 
(79
)
 
8,074

 
(33
)
 
68

 
8,109

Total acquired franchise rights
1,792

 
(1
)
 
(11
)
 
1,780

 
9

 
7

 
1,796

Total brands
1,905

 
3,114

 
(316
)
 
4,703

 
(45
)
 
181

 
4,839

Total other
10

 
(9
)
 
(1
)
 

 

 

 


$
26,444

 
$
5,616

 
$
(703
)
 
$
31,357

 
$
(171
)
 
$
529

 
$
31,715


(a)
Net increase in 2011 relates primarily to our acquisition of WBD.
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Income Taxes (Tables)
12 Months Ended
Dec. 29, 2012
Income Tax Expense (Benefit) [Abstract]
Income Taxes
 
 
2012
 
2011
 
2010
Income before income taxes
 
 
 
 
 
U.S.
 
$
3,234

 
$
3,964

 
$
4,008

Foreign
 
5,070

 
4,870

 
4,224

 
 
$
8,304

 
$
8,834

 
$
8,232

Provision for income taxes
 
 
 
 
 
Current:
U.S. Federal
$
911

 
$
611

 
$
932

 
Foreign
940

 
882

 
728

 
State
153

 
124

 
137

 
 
2,004

 
1,617

 
1,797

Deferred:
U.S. Federal
154

 
789

 
78

 
Foreign
(95
)
 
(88
)
 
18

 
State
27

 
54

 
1

 
 
86

 
755

 
97

 
 
$
2,090

 
$
2,372

 
$
1,894

Tax rate reconciliation
 
 
 
 
 
U.S. Federal statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income tax, net of U.S. Federal tax benefit
1.4

 
1.3

 
1.1

Lower taxes on foreign results
(6.9
)
 
(8.7
)
 
(9.4
)
Tax benefit related to tax court decision
(2.6
)
 

 

Acquisitions of PBG and PAS

 

 
(3.1
)
Other, net
(1.7
)
 
(0.8
)
 
(0.6
)
Annual tax rate
25.2
 %
 
26.8
 %
 
23.0
 %
Deferred tax liabilities
 
 
 
 
 
Investments in noncontrolled affiliates
$
48

 
$
41

 
 
Debt guarantee of wholly owned subsidiary
828

 
828

 
 
Property, plant and equipment
2,424

 
2,466

 
 
Intangible assets other than nondeductible goodwill
4,388

 
4,297

 
 
Other
260

 
184

 
 
Gross deferred tax liabilities
7,948

 
7,816

 
 
Deferred tax assets
 
 
 
 
 
Net carryforwards
1,378

 
1,373

 
 
Stock-based compensation
378

 
429

 
 
Retiree medical benefits
411

 
504

 
 
Other employee-related benefits
672

 
695

 
 
Pension benefits
647

 
545

 
 
Deductible state tax and interest benefits
345

 
339

 
 
Long-term debt obligations acquired
164

 
223

 
 
Other
863

 
822

 
 
Gross deferred tax assets
4,858

 
4,930

 
 
Valuation allowances
(1,233
)
 
(1,264
)
 
 
Deferred tax assets, net
3,625

 
3,666

 
 
Net deferred tax liabilities
$
4,323

 
$
4,150

 
 
 
2012

 
2011

 
2010

Deferred taxes included within:
 
 
 
 
 
Assets:
 
 
 
 
 
Prepaid expenses and other current assets
$
740

 
$
845

 
 
Liabilities:
 
 
 
 
 
Deferred income taxes
$
5,063

 
$
4,995

 
 
 
 
 
 
 
 
Analysis of valuation allowances
 
 
 
 
 
Balance, beginning of year
$
1,264

 
$
875

 
$
586

Provision
68

 
464

 
75

Other (deductions)/additions
(99
)
 
(75
)
 
214

Balance, end of year
$
1,233

 
$
1,264

 
$
875

Reserves Rollforward
A rollforward of our reserves for all federal, state and foreign tax jurisdictions, is as follows:
 
2012

 
2011

Balance, beginning of year
$
2,167

 
$
2,022

Additions for tax positions related to the current year
275

 
233

Additions for tax positions from prior years
161

 
147

Reductions for tax positions from prior years
(172
)
 
(46
)
Settlement payments
(17
)
 
(156
)
Statute of limitations expiration
(3
)
 
(15
)
Translation and other
14

 
(18
)
Balance, end of year
$
2,425

 
$
2,167

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Stock-Based Compensation (Tables)
12 Months Ended
Dec. 29, 2012
Share-based Compensation [Abstract]
Summary of Compensation Costs
The following table summarizes our total stock-based compensation expense:
 
 
2012

 
2011

 
2010 

Stock-based compensation expense
 
$
278

 
$
326

 
$
299

Merger and integration charges
 
2

 
13

 
53

Restructuring and impairment (benefits) / charges
 
(7
)
 
4

 

Total (a)
 
$
273

 
$
343

 
$
352

Income tax benefits recognized in earnings related to stock-based compensation
 
$
73

 
$
101

 
$
89

(a) $86 million recorded in 2010 was related to the unvested PBG/PAS acquisition-related grants.
Schedule Of Weighted-Average Black-Scholes Fair Value Assumptions
Our weighted-average Black-Scholes fair value assumptions are as follows:

2012


2011


2010

Expected life
6 years


6 years


5 years

Risk-free interest rate
1.3
%

2.5
%

2.3
%
Expected volatility
17
%

16
%

17
%
Expected dividend yield
3.0
%

2.9
%

2.8
%
Stock Option Activity
A summary of our stock-based compensation activity for the year ended December 29, 2012 is presented below:
Our Stock Option Activity
Options(a)

Average
Price(b)

Average
Life
(years)(c)

Aggregate
Intrinsic
Value(d)
Outstanding at December 31, 2011
91,075


$
55.92





Granted
3,696


$
67.13





Exercised
(23,585
)

$
47.33





Forfeited/expired
(3,041
)

$
63.81





Outstanding at December 29, 2012
68,145


$
59.15


5.04

$
614,322

Exercisable at December 29, 2012
48,366


$
56.44


4.45

$
567,761

Expected to vest as of December 29, 2012
19,432

 
$
65.79

 
7.85
 
$
45,374

(a)
Options are in thousands and include options previously granted under PBG, PAS and Quaker legacy plans. No additional options or shares may be granted under the PBG, PAS and Quaker plans.
(b)
Weighted-average exercise price.
(c)
Weighted-average contractual life remaining.
(d)
In thousands.
Restricted Stock Units Activity
Our RSU Activity
RSUs(a)

Average
Intrinsic
Value(b)

Average
Life
(years)(c)

Aggregate
Intrinsic
Value(d)
Outstanding at December 31, 2011
12,340


$
62.96





Granted
4,404


$
66.64





Converted
(3,436
)

$
57.76





Forfeited
(1,326
)

$
64.80





Outstanding at December 29, 2012
11,982


$
65.60


1.49

$
815,051

Expected to vest as of December 29, 2012
11,616

 
$
65.58

 
1.34
 
$
790,128

 

(a)
RSUs are in thousands and include RSUs previously granted under a PBG plan. No additional RSUs or shares may be granted under the PBG plan.
(b)
Weighted-average intrinsic value at grant date.
(c)
Weighted-average contractual life remaining.
(d)
In thousands.
Our PEPUnit Activity

Our PEPUnit Activity
PEPUnits(a)

Average
Intrinsic
Value(b)

Average
Life
(years)(c)

Aggregate
Intrinsic
Value(d)
Outstanding at December 31, 2011


$





Granted
410


$
64.85





Converted


$





Forfeited
(42
)

$
64.51





Outstanding at December 29, 2012
368


$
64.89


2.26

$
25,031

Expected to vest as of December 29, 2012
334

 
$
64.85

 
2.26
 
$
22,721


(a)
PEPUnits are in thousands.
(b)
Weighted-average intrinsic value at grant date.
(c)
Weighted-average contractual life remaining.
(d)
In thousands.
Other Stock-Based Compensation Data

2012


2011


2010

Stock Options





Weighted-average fair value of options granted
$
6.86


$
7.79


$
13.93

Total intrinsic value of options exercised(a)
$
512,636


$
385,678


$
502,354

RSUs





Total number of RSUs granted(a)
4,404


5,333


8,326

Weighted-average intrinsic value of RSUs granted
$
66.64


$
63.87


$
65.01

Total intrinsic value of RSUs converted(a)
$
236,575


$
173,433


$
202,717

PEPUnits
 
 
 
 
 
Total number of PEPUnits granted(a)
410

 

 


Weighted-average intrinsic value of PEPUnits granted
$
64.85

 
$

 


Total intrinsic value of PEPUnits converted(a)

 


 



(a)
In thousands.
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Pension, Retiree Medical and Savings Plans (Tables)
12 Months Ended
Dec. 29, 2012
Defined Benefit Plan Disclosure [Line Items]
Selected Financial Information For Pension And Retiree Medical Plans
Selected financial information for our pension and retiree medical plans is as follows:
 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Change in projected benefit liability
 
 
 
 
 
 
 
 
 
 
 
Liability at beginning of year
$
11,901

 
$
9,851

 
$
2,381

 
$
2,142

 
$
1,563

 
$
1,770

Acquisitions/(divestitures)

 
11

 

 
(63
)
 

 

Service cost
407

 
350

 
100

 
95

 
50

 
51

Interest cost
534

 
547

 
115

 
117

 
65

 
88

Plan amendments
15

 
21

 

 
(16
)
 

 
3

Participant contributions

 

 
3

 
3

 

 

Experience loss/(gain)
932

 
1,484

 
200

 
224

 
(63
)
 
(239
)
Benefit payments
(278
)
 
(414
)
 
(76
)
 
(69
)
 
(111
)
 
(110
)
Settlement/curtailment
(633
)
 
(20
)
 
(40
)
 
(15
)
 

 

Special termination benefits
8

 
71

 
1

 
1

 
5

 
1

Foreign currency adjustment

 

 
102

 
(41
)
 
2

 
(1
)
Other

 

 
2

 
3

 

 

Liability at end of year
$
12,886

 
$
11,901

 
$
2,788

 
$
2,381

 
$
1,511

 
$
1,563

 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value at beginning of year
$
9,072

 
$
8,870

 
$
2,031

 
$
1,896

 
$
190

 
$
190

Acquisitions/(divestitures)

 
11

 

 
(1
)
 

 

Actual return on plan assets
1,282

 
542

 
206

 
79

 
35

 

Employer contributions/funding
1,368

 
63

 
246

 
176

 
251

 
110

Participant contributions

 

 
3

 
3

 

 

Benefit payments
(278
)
 
(414
)
 
(76
)
 
(69
)
 
(111
)
 
(110
)
Settlement
(627
)
 

 
(33
)
 
(30
)
 

 

Foreign currency adjustment

 

 
86

 
(23
)
 

 

Fair value at end of year
$
10,817

 
$
9,072

 
$
2,463

 
$
2,031

 
$
365

 
$
190

Funded status
$
(2,069
)
 
$
(2,829
)
 
$
(325
)
 
$
(350
)
 
$
(1,146
)
 
$
(1,373
)
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Amounts recognized
 
 
 
 
 
 
 
 
 
 
 
Other assets
$

 
$

 
$
51

 
$
55

 
$

 
$

Other current liabilities
(51
)
 
(91
)
 
(2
)
 
(1
)
 
(71
)
 
(124
)
Other liabilities
(2,018
)
 
(2,738
)
 
(374
)
 
(404
)
 
(1,075
)
 
(1,249
)
Net amount recognized
$
(2,069
)
 
$
(2,829
)
 
$
(325
)
 
$
(350
)
 
$
(1,146
)
 
$
(1,373
)
 
 
 
 
 
 
 
 
 
 
 
 
Amounts included in accumulated other comprehensive loss (pre-tax)
 
 
 
 
 
 
 
 
Net loss/(gain)
$
4,212

 
$
4,217

 
$
1,096

 
$
977

 
$
(44
)
 
$
32

Prior service cost/(credit)
121

 
122

 
(3
)
 
(2
)
 
(92
)
 
(118
)
Total
$
4,333

 
$
4,339

 
$
1,093

 
$
975

 
$
(136
)
 
$
(86
)
 
 
 
 
 
 
 
 
 
 
 
 
Components of the (decrease)/increase in net loss/(gain) included in accumulated other comprehensive loss
 
 
 
 
Change in discount rate
$
776

 
$
1,710

 
$
188

 
$
302

 
$
84

 
$
115

Employee-related assumption changes
135

 
(140
)
 
(2
)
 
(51
)
 
(67
)
 
(125
)
Liability-related experience different from assumptions
66

 
(85
)
 
14

 
(27
)
 
(80
)
 
(210
)
Actual asset return different from expected return
(486
)
 
162

 
(60
)
 
57

 
(13
)
 
14

Amortization and settlement of losses
(451
)
 
(147
)
 
(64
)
 
(55
)
 

 
(12
)
Other, including foreign currency adjustments
(45
)
 
(9
)
 
43

 
(16
)
 

 
(20
)
Total
$
(5
)
 
$
1,491

 
$
119

 
$
210

 
$
(76
)
 
$
(238
)
 
 
 
 
 
 
 
 
 
 
 
 
Liability at end of year for service to date
$
11,643

 
$
11,205

 
$
2,323

 
$
1,921

 
 
 
 
Estimated Amounts To Be Amortized From Accumulated Other Comprehensive Loss Into Benefit Expense In 2012 For Pension And Retiree Medical Plans
The estimated amounts to be amortized from accumulated other comprehensive loss into expense in 2013 for our pension and retiree medical plans are as follows:
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
Net loss
$
289

 
$
68

 
$
1

Prior service cost/(credit)
18

 
1

 
(22
)
Total
$
307

 
$
69

 
$
(21
)
Weighted-Average Assumptions Used To Determine Projected Benefit Liability And Benefit Expense For Pension And Retiree Medical Plans
The following table provides the weighted-average assumptions used to determine projected benefit liability and benefit expense for our pension and retiree medical plans:
 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
 
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Weighted-average assumptions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability discount rate
4.2
%
 
4.6
%
 
5.7
%
 
4.4
%
 
4.8
%
 
5.5
%
 
3.7
%
 
4.4
%
 
5.2
%
Expense discount rate
4.6
%
 
5.7
%
 
6.0
%
 
4.8
%
 
5.5
%
 
6.0
%
 
4.4
%
 
5.2
%
 
5.8
%
Expected return on plan assets
7.8
%
 
7.8
%
 
7.8
%
 
6.7
%
 
6.7
%
 
7.1
%
 
7.8
%
 
7.8
%
 
7.8
%
Liability rate of salary increases
3.7
%
 
3.7
%
 
4.1
%
 
3.9
%
 
4.1
%
 
4.1
%
 
 
 
 
 
 
Expense rate of salary increases
3.7
%
 
4.1
%
 
4.4
%
 
4.1
%
 
4.1
%
 
4.1
%
 
 
 
 
 
 
Selected Information About Plans With Liability For Service To Date And Total Benefit Liability In Excess Of Plan Assets
The following table provides selected information about plans with liability for service to date and total benefit liability in excess of plan assets: 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Selected information for plans with liability for service to date in excess of plan assets
 
 
 
 
Liability for service to date
$
(11,643
)
 
$
(11,205
)
 
$
(711
)
 
$
(471
)
 
 
 
 
Fair value of plan assets
$
10,817

 
$
9,072

 
$
552

 
$
344

 
 
 
 
Selected information for plans with projected benefit liability in excess of plan assets
 
 
 
 
 
 
Benefit liability
$
(12,886
)
 
$
(11,901
)
 
$
(2,542
)
 
$
(2,191
)
 
$
(1,511
)
 
$
(1,563
)
Fair value of plan assets
$
10,817

 
$
9,072

 
$
2,166

 
$
1,786

 
$
365

 
$
190

Future Benefit Payments
Our estimated future benefit payments are as follows: 
 
2013

 
2014

 
2015

 
2016

 
2017

 
2018-22

Pension
$
560

 
$
570

 
$
600

 
$
650

 
$
705

 
$
4,465

Retiree medical(a)
$
120

 
$
125

 
$
125

 
$
130

 
$
130

 
$
655

 
(a)
Expected future benefit payments for our retiree medical plans do not reflect any estimated subsidies expected to be received under the 2003 Medicare Act. Subsidies are expected to be approximately $13 million for each of the years from 2013 through 2017 and approximately $90 million in total for 2018 through 2022.
Target Investment Allocation
Our target investment allocations are as follows:
 
2013

 
2012

Fixed income
40
%
 
40
%
U.S. equity
33
%
 
33
%
International equity
22
%
 
22
%
Real estate
5
%
 
5
%
Categorized Plan Assets Measured At Fair Value
Plan assets measured at fair value as of fiscal year-end 2012 and 2011 are categorized consistently by level in both years, and are as follows: 
 
2012
 
2011
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. plan assets*
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
U.S. common stock(a)
$
626

 
$
626

 
$

 
$

 
$
514

U.S. commingled funds(b)
3,106

 

 
3,106

 

 
3,003

International common stock(a)
1,597

 
1,597

 

 

 
1,089

International commingled fund(c)
948

 

 
948

 

 
776

Preferred stock(d)
20

 

 
20

 

 
19

Fixed income securities:
 
 
 
 
 
 
 
 
 
Government securities(d)
1,287

 

 
1,287

 

 
1,032

Corporate bonds(d) (e)
2,962

 

 
2,962

 

 
2,653

Mortgage-backed securities(d)
110

 

 
110

 

 
24

Other:
 
 
 
 
 
 
 
 
 
Contracts with insurance companies(f)
27

 

 

 
27

 
24

Real estate commingled funds(g)
331

 

 

 
331

 

Cash and cash equivalents
117

 
117

 

 

 
78

Sub-total U.S. plan assets
11,131

 
$
2,340

 
$
8,433

 
$
358

 
9,212

Dividends and interest receivable
51

 
 
 
 
 
 
 
50

Total U.S. plan assets
$
11,182

 
 
 
 
 
 
 
$
9,262

International plan assets
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
U.S. commingled funds(b)
$
278

 
$

 
$
278

 
$

 
$
246

International commingled funds(c)
863

 

 
863

 

 
729

Fixed income securities:
 
 
 
 
 
 
 
 
 
Government securities(d)
202

 

 
202

 

 
171

Corporate bonds(d)
230

 

 
230

 

 
196

Fixed income commingled funds(h)
600

 

 
600

 

 
530

Other:
 
 
 
 
 
 
 
 
 
Contracts with insurance companies(f)
35

 

 

 
35

 
30

Currency commingled funds(i)
64

 

 
64

 

 
52

Real estate commingled fund(g)
60

 

 

 
60

 
56

Cash and cash equivalents
125

 
125

 

 

 
16

Sub-total international plan assets
2,457

 
$
125

 
$
2,237

 
$
95

 
2,026

Dividends and interest receivable
6

 
 
 
 
 
 
 
5

Total international plan assets
$
2,463

 
 
 
 
 
 
 
$
2,031


(a)
Based on quoted market prices in active markets.
(b)
Based on the fair value of the investments owned by these funds that track various U.S. large, mid-cap and small company indices. Includes one large-cap fund that represents 25% and 30%, respectively, of total U.S. plan assets for 2012 and 2011.
(c)
Based on the fair value of the investments owned by these funds that track various non-U.S. equity indices.
(d)
Based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes that are not observable.
(e)
Corporate bonds of U.S.-based companies represent 22% and 24%, respectively, of total U.S. plan assets for 2012 and 2011.
(f)
Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable.
(g)
Based on the appraised value of the investments owned by these funds as determined by independent third parties using inputs that are not observable.
(h)
Based on the fair value of the investments owned by these funds that track various government and corporate bond indices.
(i)
Based on the fair value of the investments owned by these funds. Includes managed hedge funds that invest primarily in derivatives to reduce currency exposure.
*
2012 and 2011 amounts include $365 million and $190 million, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.
Reconciliation of the Beginning and Ending Balances of Level 3 Plan Assets
The change in Level 3 plan assets for 2012 is as follows:
 
Balance, End of 2011
 
Return on Assets Held at Year End
 
Return on Assets Sold
 
Purchases and Sales, Net
 
Balance, End of 2012
Real estate commingled funds
$
56

 
$
15

 
$
1

 
$
319

 
$
391

Contracts with insurance companies
54

 
9

 

 
(1
)
 
62

Total
$
110

 
$
24

 
$
1

 
$
318

 
$
453

Effects Of 1-Percentage-Point Change In The Assumed Health Care Trend Rate
A 1-percentage-point change in the assumed health care trend rate would have the following effects:
 
1% Increase
 
1%
Decrease
2012 Service and interest cost components
$
4

 
$
(4
)
2012 Benefit liability
$
40

 
$
(38
)
Components Of Benefit Expense [Member]
Defined Benefit Plan Disclosure [Line Items]
Selected Financial Information For Pension And Retiree Medical Plans
The components of benefit expense are as follows:
 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
 
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Components of benefit expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
407

 
$
350

 
$
299

 
$
100

 
$
95

 
$
81

 
$
50

 
$
51

 
$
54

Interest cost
534

 
547

 
506

 
115

 
117

 
106

 
65

 
88

 
93

Expected return on plan assets
(796
)
 
(704
)
 
(643
)
 
(146
)
 
(136
)
 
(123
)
 
(22
)
 
(14
)
 
(1
)
Amortization of prior service cost/(credit)
17

 
14

 
12

 
1

 
2

 
2

 
(26
)
 
(28
)
 
(22
)
Amortization of net loss
259

 
145

 
119

 
53

 
40

 
24

 

 
12

 
9

 
421

 
352

 
293

 
123

 
118

 
90

 
67

 
109

 
133

Settlement/curtailment loss/(gain) (a)
185

 
(8
)
 
(2
)
 
4

 
30

 
1

 

 

 
(62
)
Special termination benefits
8

 
71

 
45

 
1

 
1

 
3

 
5

 
1

 
3

Total
$
614

 
$
415

 
$
336

 
$
128

 
$
149

 
$
94

 
$
72

 
$
110

 
$
74


(a)
Includes pension lump sum settlement charge of $195 million in 2012. This charge is reflected in items affecting comparability (see “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations).

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Debt Obligations and Commitments (Tables)
12 Months Ended
Dec. 29, 2012
Debt Obligations and Commitments [Abstract]
Schedule of Long and Short-Term Debt Contractural Commitments
 
2012

 
2011

Short-term debt obligations
 
 
 
Current maturities of long-term debt
$
2,901

 
$
2,549

Commercial paper (0.1% and 0.1%)
1,101

 
2,973

Other borrowings (7.4% and 7.6%)
813

 
683

 
$
4,815

 
$
6,205

Long-term debt obligations
 
 
 
Notes due 2012 (3.0%)
$

 
$
2,353

Notes due 2013 (2.3%)
2,891

 
2,841

Notes due 2014 (4.4% and 4.6%)
3,237

 
3,335

Notes due 2015 (1.5% and 2.3%)
3,300

 
1,632

Notes due 2016 (3.9%)
1,878

 
1,876

Notes due 2017 (2.0% and 5.0%)
1,250

 
258

Notes due 2018-2042 (4.4% and 4.8%)
13,781

 
10,548

Other, due 2013-2020 (9.3% and 9.9%)
108

 
274

 
26,445

 
23,117

Less: current maturities of long-term debt obligations
(2,901
)
 
(2,549
)
Total
$
23,544

 
$
20,568

Schedule Of Long-Term Contractual Commitments
 
Payments Due by Period
 
Total

 
2013

 
2014 –
2015

 
2016 –
2017

 
2018 and
beyond

Long-term debt obligations(b)
$
22,858

 
$

 
$
6,450

 
$
3,105

 
$
13,303

Interest on debt obligations(c)
8,772

 
915

 
1,477

 
1,252

 
5,128

Operating leases
2,061

 
445

 
634

 
362

 
620

Purchasing commitments(d)
1,738

 
741

 
808

 
135

 
54

Marketing commitments(d)
2,332

 
298

 
605

 
490

 
939

 
$
37,761

 
$
2,399

 
$
9,974

 
$
5,344

 
$
20,044

 

(a)
Based on year-end foreign exchange rates.
(b)
Excludes $2,901 million related to current maturities of long-term debt, $349 million related to the fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS and $337 million related to the increase in carrying value of long-term debt representing the gains on our fair value interest rate swaps.
(c)
Interest payments on floating-rate debt are estimated using interest rates effective as of December 29, 2012.
(d)
Primarily reflects non-cancelable commitments as of December 29, 2012.
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Financial Instruments (Tables)
12 Months Ended
Dec. 29, 2012
Derivative Instruments and Hedges, Assets [Abstract]
Fair Values Of Financial Assets And Liabilities
The fair values of our financial assets and liabilities as of December 29, 2012 and December 31, 2011 are categorized as follows:
 
2012
 
2011
 
Assets(a)
 
Liabilities(a)
 
Assets(a)
 
Liabilities(a)
Available-for-sale securities(b)
$
79

 
$

 
$
59

 
$

Short-term investments – index funds(c)
$
161

 
$

 
$
157

 
$

Prepaid forward contracts(d)
$
33

 
$

 
$
40

 
$

Deferred compensation(e)
$

 
$
492

 
$

 
$
519

Derivatives designated as fair value hedging instruments:
 
 
 
 
 
 
 
Interest rate derivatives(f)
$
276

 
$

 
$
300

 
$

Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts(g)
$
5

 
$
19

 
$
25

 
$
5

Interest rate derivatives(f)
6

 

 

 
69

Commodity contracts(h)
8

 
24

 
3

 
78

 
$
19

 
$
43

 
$
28

 
$
152

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts(g)
$
8

 
$
6

 
$
17

 
$
20

Interest rate derivatives(f)
123

 
153

 
107

 
141

Commodity contracts(h)
40

 
45

 
10

 
62

 
$
171

 
$
204

 
$
134

 
$
223

Total derivatives at fair value
$
466

 
$
247

 
$
462

 
$
375

Total
$
739

 
$
739

 
$
718

 
$
894

 
(a)
Financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets, with the exception of available-for-sale securities and short-term investments, which are classified as short-term investments. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities. Unless specifically indicated, all financial assets and liabilities are categorized as Level 2 assets or liabilities.
(b)
Based on the price of common stock. Categorized as a Level 1 asset.
(c)
Based on price changes in index funds used to manage a portion of market risk arising from our deferred compensation liability. Categorized as a Level 1 asset.
(d)
Based primarily on the price of our common stock.
(e)
Based on the fair value of investments corresponding to employees’ investment elections. As of December 29, 2012 and December 31, 2011, $10 million and $44 million, respectively, are categorized as Level 1 liabilities. The remaining balances are categorized as Level 2 liabilities.
(f)
Based on LIBOR forward rates and recently reported market transactions of spot and forward rates.
(g)
Based on recently reported market transactions of spot and forward rates.
(h)
Based on recently reported transactions in the marketplace, primarily swap arrangements.

Effective Portion Of Pre-Tax (Gains)/Losses On Derivative Instruments
 
Fair Value/Non-
designated  Hedges
 
Cash Flow Hedges
 
(Gains)/Losses
Recognized  in
Income Statement(a)
 
Losses/(Gains)
Recognized in
Accumulated Other
Comprehensive Loss
 
Losses/(Gains)
Reclassified from
Accumulated Other
Comprehensive Loss
into Income
Statement(b)
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Foreign exchange contracts
$
(23
)
 
$
14

 
$
41

 
$
(9
)
 
$
8

 
$
26

Interest rate derivatives
17

 
(113
)
 
(2
)
 
84

 
19

 
15

Commodity contracts
(23
)
 
25

 
11

 
51

 
63

 
(36
)
Total
$
(29
)
 
$
(74
)
 
$
50

 
$
126

 
$
90

 
$
5

 
(a)
Interest rate derivative losses are primarily from fair value hedges and are included in interest expense. These losses are substantially offset by decreases in the value of the underlying debt, which is also included in interest expense. All other gains/losses are from non-designated hedges and are included in corporate unallocated expenses.
(b)
Interest rate derivative losses are included in interest expense. All other gains/losses are primarily included in cost of sales.
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Net Income Attributable to PepsiCo per Common Share (Tables)
12 Months Ended
Dec. 29, 2012
Earnings Per Share [Abstract]
Basic And Diluted Net Income Attributable To PepsiCo Per Common Share
The computations of basic and diluted net income attributable to PepsiCo per common share are as follows:
 
 
2012
 
2011
 
2010
 
Income
 
Shares(a)
 
Income
 
Shares(a)
 
Income
 
Shares(a)
Net income attributable to PepsiCo
$
6,178

 
 
 
$
6,443

 
 
 
$
6,320

 
 
Preferred shares:
 
 
 
 
 
 
 
 
 
 
 
Dividends
(1
)
 
 
 
(1
)
 
 
 
(1
)
 
 
Redemption premium
(6
)
 
 
 
(6
)
 
 
 
(5
)
 
 
Net income available for PepsiCo common shareholders
$
6,171

 
1,557

 
$
6,436

 
1,576

 
$
6,314

 
1,590

Basic net income attributable to PepsiCo per common share
$
3.96

 
 
 
$
4.08

 
 
 
$
3.97

 
 
Net income available for PepsiCo common shareholders
$
6,171

 
1,557

 
$
6,436

 
1,576

 
$
6,314

 
1,590

Dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
Stock options and RSUs

 
17

 

 
20

 

 
23

ESOP convertible preferred stock
7

 
1

 
7

 
1

 
6

 
1

Diluted
$
6,178

 
1,575

 
$
6,443

 
1,597

 
$
6,320

 
1,614

Diluted net income attributable to PepsiCo per common share
$
3.92

 
 
 
$
4.03

 
 
 
$
3.91

 
 
 
(a)
Weighted-average common shares outstanding (in millions).
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Preferred Stock (Tables)
12 Months Ended
Dec. 29, 2012
Equity [Abstract]
Schedule Of Preferred Stock
 
2012
 
2011
 
2010
 
Shares(a)
 
Amount
 
Shares(a)
 
Amount
 
Shares(a)
 
Amount
Preferred stock
0.8

 
$
41

 
0.8

 
$
41

 
0.8

 
$
41

Repurchased preferred stock

 
 
 
 
 
 
 
 
 

Balance, beginning of year
0.6

 
$
157

 
0.6

 
$
150

 
0.6

 
$
145

Redemptions

 
7

 

 
7

 

 
5

Balance, end of year
0.6

 
$
164

 
0.6

 
$
157

 
0.6

 
$
150

 
(a)
In millions.
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Accumulated Other Comprehensive Loss Attributable to Pepsico (Tables)
12 Months Ended
Dec. 29, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule Of Accumulated Other Comprehensive Income
The accumulated balances for each component of other comprehensive loss attributable to PepsiCo were as follows:
 
 
2012

 
2011

 
2010

Currency translation adjustment
$
(1,946
)
 
$
(2,688
)
 
$
(1,159
)
Cash flow hedges, net of tax
(94
)
 
(112
)
 
(38
)
Unamortized pension and retiree medical, net of tax (a)
(3,491
)
 
(3,419
)
 
(2,442
)
Unrealized gain on securities, net of tax
80

 
62

 
70

Other
(36
)
 
(72
)
 
(61
)
Accumulated other comprehensive loss attributable to PepsiCo
$
(5,487
)
 
$
(6,229
)
 
$
(3,630
)
(a)
Net of taxes of $1,832 million in 2012, $1,831 million in 2011 and $1,322 million in 2010.
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Supplemental Financial Information (Tables)
12 Months Ended
Dec. 29, 2012
Supplemental Financial Information [Abstract]
Schedule Of Supplemental Balance Sheet Information
 
2012

 
2011

 
2010

Accounts receivable
 
 
 
 
 
Trade receivables
$
6,215

 
$
6,036

 
 
Other receivables
983

 
1,033

 
 
 
7,198

 
7,069

 
 
Allowance, beginning of year
157

 
144

 
$
90

Net amounts charged to expense
28

 
30

 
12

Deductions (a)
(27
)
 
(41
)
 
(37
)
Other (b)
(1
)
 
24

 
79

Allowance, end of year
157

 
157

 
$
144

Net receivables
$
7,041

 
$
6,912

 
 
 
 
 
 
 
 
Inventories (c)
 
 
 
 
 
Raw materials
$
1,875

 
$
1,883

 
 
Work-in-process
173

 
207

 
 
Finished goods
1,533

 
1,737

 
 
 
$
3,581

 
$
3,827

 
 


(a)
Includes accounts written off.
(b)
Includes adjustments related to acquisitions, currency translation and other adjustments.
(c)
Approximately 3%, in both 2012 and 2011, of the inventory cost was computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material.
 
2012

 
2011

 
Other assets
 
 
 
 
Noncurrent notes and accounts receivable
$
136

 
$
159

 
Deferred marketplace spending
195

 
186

 
Pension plans
62

 
65

 
Other investments (a)
718

 
89

 
Other
542

 
522

 
 
$
1,653

 
$
1,021

 
Accounts payable and other current liabilities
 
 
 
 
Accounts payable
$
4,451

 
$
4,083

 
Accrued marketplace spending
2,187

 
2,105

 
Accrued compensation and benefits
1,705

 
1,771

 
Dividends payable
838

 
813

 
Other current liabilities
2,722

 
2,985

 
 
$
11,903

 
$
11,757

 

(a)
Net increase in 2012 primarily relates to our 5% indirect equity interest in Tingyi-Asahi Beverages Holding Co. Ltd. (TAB).
Schedule Of Other Supplemental Information
 
2012

 
2011

 
2010

Other supplemental information
 
 
 
 
 
Rent expense
$
581

 
$
589

 
$
526

Interest paid
$
1,074

 
$
1,039

 
$
1,043

Income taxes paid, net of refunds
$
1,840

 
$
2,218

 
$
1,495

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Basis of Presentation and Our Divisions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended
Mar. 19, 2011
Dec. 29, 2012
country
Dec. 31, 2011
Dec. 25, 2010
Dec. 29, 2012
FLNA [Member]
Dec. 29, 2012
QFNA [Member]
Dec. 29, 2012
LAF [Member]
Dec. 29, 2012
PAB [Member]
Dec. 29, 2012
Europe [Member]
Dec. 29, 2012
AMEA [Member]
Dec. 29, 2012
Corporate Unallocated [Member]
Dec. 29, 2012
Maximum [Member]
Mar. 20, 2010
PBG and PAS Acquisition [Member]
Basis Of Presentation And Our Divisions [Line Items]
Ownership percentage of certain other affiliates 50.00%
Gain on previously held equity interests in PBG and PAS       $ 958 $ 958
Non-taxable portion of gain on previously held equity investments bottling equity income 735
Reversal of deferred tax liability associated with previously held equity interests 223
Change in accounting method (LIFO to average cost) effect on net income $ 9
Manufacture and sell in (number of countries) 200
Stock-based compensation percentage 16.00% 2.00% 5.00% 25.00% 14.00% 12.00% 26.00%
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Basis of Presentation and Our Divisions (Schedule of Quarterly Reporting) (Details)
3 Months Ended 4 Months Ended
Sep. 08, 2012
Jun. 16, 2012
Mar. 24, 2012
Dec. 29, 2012
U.S. and Canada [Member]
Segment Reporting Information [Line Items]
Quarterly reporting calendar, period P12W P12W P12W P16W
International Divisions [Member]
Segment Reporting Information [Line Items]
Quarterly reporting calendar, period June, July and August March, April and May January, February September, October, November and December
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Basis of Presentation and Our Divisions (Schedule of Segment Reporting Information, by Segment) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Segment Reporting Information [Line Items]
Net Revenue $ 65,492 $ 66,504 $ 57,838
Operating Profit 9,112 [1] 9,633 [1] 8,332 [1]
FLNA [Member]
Segment Reporting Information [Line Items]
Net Revenue 13,574 13,322 12,573
Operating Profit 3,646 [1] 3,621 [1] 3,376 [1]
Net Revenue, Percentage 21.00%
Operating Profit, Percentage 35.00%
QFNA [Member]
Segment Reporting Information [Line Items]
Net Revenue 2,636 2,656 2,656
Operating Profit 695 [1] 797 [1] 741 [1]
Net Revenue, Percentage 4.00%
Operating Profit, Percentage 7.00%
LAF [Member]
Segment Reporting Information [Line Items]
Net Revenue 7,780 7,156 6,315
Operating Profit 1,059 [1] 1,078 [1] 1,004 [1]
Net Revenue, Percentage 12.00%
Operating Profit, Percentage 10.00%
PAB [Member]
Segment Reporting Information [Line Items]
Net Revenue 21,408 22,418 20,401
Operating Profit 2,937 [1] 3,273 [1] 2,776 [1]
Net Revenue, Percentage 33.00%
Operating Profit, Percentage 28.00%
Europe [Member]
Segment Reporting Information [Line Items]
Net Revenue 13,441 [2] 13,560 [2] 9,602 [2]
Operating Profit 1,330 [1],[2] 1,210 [1],[2] 1,054 [1],[2]
Net Revenue, Percentage 20.00%
Operating Profit, Percentage 13.00%
AMEA [Member]
Segment Reporting Information [Line Items]
Net Revenue 6,653 7,392 6,291
Operating Profit 747 [1] 887 [1] 708 [1]
Net Revenue, Percentage 10.00%
Operating Profit, Percentage 7.00%
Total Division [Member]
Segment Reporting Information [Line Items]
Net Revenue 65,492 66,504 57,838
Operating Profit 10,414 [1] 10,866 [1] 9,659 [1]
Corporate Unallocated Mark-To-Market Net Impact Gains (Losses) [Member]
Segment Reporting Information [Line Items]
Operating Profit 65 [1] (102) [1] 91 [1]
Corporate Unallocated Merger and Integration Charges [Member]
Segment Reporting Information [Line Items]
Operating Profit    [1] (78) [1] (191) [1]
Corporate Unallocated Restructuring and Impairment Charges [Member]
Segment Reporting Information [Line Items]
Operating Profit (10) [1] (74) [1]    [1]
Corporate Unallocated Pension Lump Sum Settlement Charge [Member]
Segment Reporting Information [Line Items]
Operating Profit (195) [1]    [1]    [1]
Corporate Unallocated 53rd Week [Member]
Segment Reporting Information [Line Items]
Operating Profit    [1] (18) [1]    [1]
Corporate Unallocated Venezuela Currency Devaluation [Member]
Segment Reporting Information [Line Items]
Operating Profit    [1]    [1] (129) [1]
Corporate Unallocated Asset Write-Off [Member]
Segment Reporting Information [Line Items]
Operating Profit    [1]    [1] (145) [1]
Corporate Unallocated Foundation Contribution [Member]
Segment Reporting Information [Line Items]
Operating Profit    [1]    [1] (100) [1]
Corporate Unallocated Other [Member]
Segment Reporting Information [Line Items]
Operating Profit $ (1,162) $ (961) $ (853)
[1] For information on the impact of restructuring, impairment and integration charges on our divisions, see Note 3 to our consolidated financial statements.
[2] Change in net revenue in 2011 relates primarily to our acquisition of WBD.
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Basis of Presentation and Our Divisions (Segment Reporting Information by Total Assets and Capital Spending) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Segment Reporting Information [Line Items]
Total Assets $ 74,638 $ 72,882 $ 68,153
Capital Spending 2,714 3,339 3,253
FLNA [Member]
Segment Reporting Information [Line Items]
Total Assets 5,332 5,384 5,276
Capital Spending 365 439 515
Total Assets , Percentage 7.00%
Capital Spending, Percentage 13.00%
QFNA [Member]
Segment Reporting Information [Line Items]
Total Assets 966 1,024 1,062
Capital Spending 37 43 48
Total Assets , Percentage 1.00%
Capital Spending, Percentage 2.00%
LAF [Member]
Segment Reporting Information [Line Items]
Total Assets 4,993 4,721 4,041
Capital Spending 436 413 370
Total Assets , Percentage 7.00%
Capital Spending, Percentage 16.00%
PAB [Member]
Segment Reporting Information [Line Items]
Total Assets 30,899 31,142 31,571
Capital Spending 702 1,006 973
Total Assets , Percentage 41.00%
Capital Spending, Percentage 26.00%
Europe [Member]
Segment Reporting Information [Line Items]
Total Assets 19,218 [1] 18,461 [1] 13,018 [1]
Capital Spending 575 [1] 588 [1] 517 [1]
Total Assets , Percentage 26.00%
Capital Spending, Percentage 21.00%
AMEA [Member]
Segment Reporting Information [Line Items]
Total Assets 5,738 6,038 5,557
Capital Spending 510 693 610
Total Assets , Percentage 8.00%
Capital Spending, Percentage 19.00%
Total Division [Member]
Segment Reporting Information [Line Items]
Total Assets 67,146 66,770 60,525
Capital Spending 2,625 3,182 3,033
Corporate [Member]
Segment Reporting Information [Line Items]
Total Assets 7,492 [2] 6,112 [2] 7,389 [2]
Capital Spending 89 [2] 157 [2] 220 [2]
Total Assets , Percentage 10.00%
Capital Spending, Percentage 3.00%
Investments In Bottling Affiliates [Member]
Segment Reporting Information [Line Items]
Total Assets       239
Capital Spending         
[1] Changes in total assets in 2011 relate primarily to our acquisition of WBD.
[2] Corporate assets consist principally of cash and cash equivalents, short-term investments, derivative instruments and property, plant and equipment.
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Basis of Presentation and Our Divisions (Segment Reporting Information by Amortization of Intangible Assets and Depreciation and Other Amortization) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Segment Reporting Information [Line Items]
Amortization of Intangible Assets $ 119 $ 133 $ 117
Depreciation and Other Amortization 2,570 2,604 2,210
FLNA [Member]
Segment Reporting Information [Line Items]
Amortization of Intangible Assets 7 7 7
Depreciation and Other Amortization 445 458 448
QFNA [Member]
Segment Reporting Information [Line Items]
Depreciation and Other Amortization 53 54 52
LAF [Member]
Segment Reporting Information [Line Items]
Amortization of Intangible Assets 10 10 6
Depreciation and Other Amortization 248 238 213
PAB [Member]
Segment Reporting Information [Line Items]
Amortization of Intangible Assets 59 65 56
Depreciation and Other Amortization 855 865 749
Europe [Member]
Segment Reporting Information [Line Items]
Amortization of Intangible Assets 36 39 35
Depreciation and Other Amortization 522 522 355
AMEA [Member]
Segment Reporting Information [Line Items]
Amortization of Intangible Assets 7 12 13
Depreciation and Other Amortization 305 350 294
Total Division [Member]
Segment Reporting Information [Line Items]
Amortization of Intangible Assets 119 133 117
Depreciation and Other Amortization 2,428 2,487 2,111
Corporate [Member]
Segment Reporting Information [Line Items]
Amortization of Intangible Assets   
Depreciation and Other Amortization $ 142 $ 117 $ 99
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Basis of Presentation and Our Divisions (Segment Reporting Information by Net Revenue and Long-Lived Assets) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Segment Reporting Information [Line Items]
Net Revenue $ 65,492 $ 66,504 $ 57,838
Long-Lived Assets 54,265 [1] 54,420 [1] 48,895 [1]
United States [Member]
Segment Reporting Information [Line Items]
Net Revenue 33,348 33,053 30,618
Long-Lived Assets 28,344 [1] 28,999 [1] 28,631 [1]
Net Revenue, Percentage 51.00%
Long-Lived Assets, Percentage 52.00%
Mexico [Member]
Segment Reporting Information [Line Items]
Net Revenue 3,955 4,782 4,531
Long-Lived Assets 1,237 [1] 1,027 [1] 1,671 [1]
Net Revenue, Percentage 6.00%
Long-Lived Assets, Percentage 2.00%
Canada [Member]
Segment Reporting Information [Line Items]
Net Revenue 3,290 3,364 3,081
Long-Lived Assets 3,294 [1] 3,097 [1] 3,133 [1]
Net Revenue, Percentage 5.00%
Long-Lived Assets, Percentage 6.00%
Russia [Member]
Segment Reporting Information [Line Items]
Net Revenue 4,861 [2] 4,749 [2] 1,890 [2]
Long-Lived Assets 8,603 [1],[2] 8,121 [1],[2] 2,744 [1],[2]
Net Revenue, Percentage 7.00%
Long-Lived Assets, Percentage 16.00%
United Kingdom [Member]
Segment Reporting Information [Line Items]
Net Revenue 2,102 2,075 1,888
Long-Lived Assets 1,053 [1] 1,011 [1] 1,019 [1]
Net Revenue, Percentage 3.00%
Long-Lived Assets, Percentage 2.00%
Brazil [Member]
Segment Reporting Information [Line Items]
Net Revenue, Percentage 3.00%
Long-Lived Assets, Percentage 2.00%
All Other Countries [Member]
Segment Reporting Information [Line Items]
Net Revenue 16,070 16,643 14,248
Long-Lived Assets $ 10,600 [1] $ 11,041 [1] $ 11,020 [1]
Net Revenue, Percentage 25.00%
Long-Lived Assets, Percentage 20.00%
[1] Long-lived assets represent property, plant and equipment, nonamortizable intangible assets, amortizable intangible assets and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used.
[2] Change in 2011 relates primarily to our acquisition of WB
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Our Significant Accounting Policies (Details) (USD $)
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Property, Plant and Equipment [Line Items]
Software amortization $ 196,000,000 $ 156,000,000 $ 137,000,000
Net capitalized software and development costs $ 1,100,000,000 $ 1,300,000,000
Minimum [Member] | Software [Member]
Property, Plant and Equipment [Line Items]
Software estimated useful lives 5 years
Maximum [Member] | Software [Member]
Property, Plant and Equipment [Line Items]
Software estimated useful lives 10 years
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Our Significant Accounting Policies (Narrative) (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 24, 2012
Jun. 12, 2010
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Accounting Policies [Abstract]
Sales incentives and discounts accounted for as a reduction of revenue $ 34,700,000,000 $ 34,600,000,000 $ 29,100,000,000
Shipping and handling expenses 9,100,000,000 9,200,000,000 7,700,000,000
Research and development costs 552,000,000 525,000,000 488,000,000
Amount of prepaid incentive arrangements 335,000,000 313,000,000
Advertising and other marketing activities 3,700,000,000 3,500,000,000 3,400,000,000
Advertising expenses 2,200,000,000 1,900,000,000 1,900,000,000
Deferred advertising costs 88,000,000 163,000,000
One-time related tax charge 41,000,000
Prescription drug benefit subsidy, income tax benefit $ 55,000,000
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Our Significant Accounting Policies (Concentration of Credit Risk) (Details) (Customer Concentration Risk [Member], Wal-Mart [Member], Revenue, Net [Member])
12 Months Ended
Dec. 29, 2012
Customer Concentration Risk [Member] | Wal-Mart [Member] | Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk, percentage 11.00%
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Restructuring, Impairment and Integration Charges (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges $ 279 $ 383
Merger and integration charges 16 329 808
Productivity Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 279 383
Restructuring and impairment provisions, after tax 215 286
Restructuring and impairment provisions, after-tax impact per share $ 0.14 $ 0.18
PAB [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 102 81
Europe [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 42 77
Pepsi Bottling Group Pepsi Americas And Wimm Bill Dann Acquisition [Member]
Restructuring Cost and Reserve [Line Items]
Merger and integration charges 329 799
Merger and integration charges, after tax 271 648
Merger and integration charges, after-tax impact per share $ 0.17 $ 0.4
Pepsi Bottling Group Pepsi Americas And Wimm Bill Dann Acquisition [Member] | PAB [Member]
Restructuring Cost and Reserve [Line Items]
Merger and integration charges 112 467
Pepsi Bottling Group Pepsi Americas And Wimm Bill Dann Acquisition [Member] | Europe [Member]
Restructuring Cost and Reserve [Line Items]
Merger and integration charges 123 111
Pepsi Bottling Group Pepsi Americas And Wimm Bill Dann Acquisition [Member] | Corporate Unallocated Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Merger and integration charges 78 191
Pepsi Bottling Group Pepsi Americas And Wimm Bill Dann Acquisition [Member] | Interest Expense [Member]
Restructuring Cost and Reserve [Line Items]
Merger and integration charges 16 30
PBG and PAS Acquisition [Member] | Bottling Equity Income [Member]
Restructuring Cost and Reserve [Line Items]
Merger and integration charges 9
Wimm Bill Dann Acquisition [Member]
Restructuring Cost and Reserve [Line Items]
Merger and integration charges 16
Merger and integration charges, after tax 12
Merger and integration charges, after-tax impact per share $ 0.01
Wimm Bill Dann Acquisition [Member] | Europe [Member]
Restructuring Cost and Reserve [Line Items]
Merger and integration charges 11
Wimm Bill Dann Acquisition [Member] | Interest Expense [Member]
Restructuring Cost and Reserve [Line Items]
Merger and integration charges $ 5
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Restructuring, Impairment and Integration Charges (Summary of Productivity Plan Charges) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges $ 279 $ 383
Severance And Other Employee Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 89 327
Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 75
Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 115 56
FLNA [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 38 76
FLNA [Member] | Severance And Other Employee Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 14 74
FLNA [Member] | Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 8
FLNA [Member] | Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 16 2
QFNA [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 9 18
QFNA [Member] | Severance And Other Employee Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 0 18
QFNA [Member] | Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 0
QFNA [Member] | Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 9 0
LAF [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 50 48
LAF [Member] | Severance And Other Employee Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 15 46
LAF [Member] | Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 8
LAF [Member] | Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 27 2
PAB [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 102 81
PAB [Member] | Severance And Other Employee Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 34 75
PAB [Member] | Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 43
PAB [Member] | Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 25 6
Europe [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 42 77
Europe [Member] | Severance And Other Employee Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 14 65
Europe [Member] | Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 16
Europe [Member] | Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 12 12
AMEA [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 28 9
AMEA [Member] | Severance And Other Employee Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 18 9
AMEA [Member] | Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 0
AMEA [Member] | Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 10 0
Corporate Unallocated [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 10 74
Corporate Unallocated [Member] | Severance And Other Employee Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges (6) 40
Corporate Unallocated [Member] | Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges 0
Corporate Unallocated [Member] | Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment (benefits) / charges $ 16 $ 34
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Restructuring, Impairment and Integration Charges (Summary of Productivity Plan Activity) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Restructuring Reserve [Roll Forward]
Restructuring and impairment (benefits) / charges $ 279 $ 383
Severance And Other Employee Costs [Member]
Restructuring Reserve [Roll Forward]
Restructuring and impairment (benefits) / charges 89 327
Asset Impairments [Member]
Restructuring Reserve [Roll Forward]
Restructuring and impairment (benefits) / charges 75
Other Costs [Member]
Restructuring Reserve [Roll Forward]
Restructuring and impairment (benefits) / charges 115 56
Productivity Plan [Member]
Restructuring Reserve [Roll Forward]
Liability at beginning of period 276
Restructuring and impairment (benefits) / charges 279 383
Cash payments (343) (30)
Non-cash charges (85) (77)
Liability at end of period 127 276
Productivity Plan [Member] | Severance And Other Employee Costs [Member]
Restructuring Reserve [Roll Forward]
Liability at beginning of period 249
Restructuring and impairment (benefits) / charges 89 327
Cash payments (239) (1)
Non-cash charges (8) (77)
Liability at end of period 91 249
Productivity Plan [Member] | Asset Impairments [Member]
Restructuring Reserve [Roll Forward]
Liability at beginning of period   
Restructuring and impairment (benefits) / charges 75   
Cash payments      
Non-cash charges (75)   
Liability at end of period      
Productivity Plan [Member] | Other Costs [Member]
Restructuring Reserve [Roll Forward]
Liability at beginning of period 27
Restructuring and impairment (benefits) / charges 115 56
Cash payments (104) (29)
Non-cash charges (2)   
Liability at end of period $ 36 $ 27
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Restructuring, Impairment and Integration Charges (Schedule of Merger and Integration Activity) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Restructuring Reserve [Roll Forward]
Liability at beginning of period $ 105 $ 204
Merger and integration costs 16 329 808
Cash payments (83) (377) (385)
Non-cash charges (14) (51) (219)
Liability at end of period 24 105 204
Severance And Other Employee Costs [Member]
Restructuring Reserve [Roll Forward]
Liability at beginning of period 98 179
Merger and integration costs (3) 146 396
Cash payments (65) (191) (114)
Non-cash charges (12) (36) (103)
Liability at end of period 18 98 179
Asset Impairments [Member]
Restructuring Reserve [Roll Forward]
Liability at beginning of period 0 0
Merger and integration costs 1 34 132
Cash payments 0 0 0
Non-cash charges (1) (34) (132)
Liability at end of period 0 0 0
Other Costs [Member]
Restructuring Reserve [Roll Forward]
Liability at beginning of period 7 25
Merger and integration costs 18 149 280
Cash payments (18) (186) (271)
Non-cash charges (1) 19 16
Liability at end of period $ 6 $ 7 $ 25
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Property, Plant and Equipment and Intangible Assets (Schedule of Property, Plant and Equipment and Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Property, plant and equipment, net:
Property, plant and equipment, gross $ 36,162 $ 35,140   
Accumulated depreciation (17,026) (15,442)   
Property, Plant and Equipment, net 19,136 19,698   
Depreciation 2,489 2,476 2,124
Amortizable intangible assets, net:
Amortizable intangible assets, gross 3,199 3,220
Accumulated amortization (1,418) (1,332)
Amortizable intangible assets, net 1,781 1,888
Amortization of intangible assets 119 133 117
Land And Improvements [Member]
Property, plant and equipment, net:
Property, plant and equipment, gross 1,890 1,951   
Land And Improvements [Member] | Minimum [Member]
Property, plant and equipment, net:
Average Useful Life (Years) 10 years
Land And Improvements [Member] | Maximum [Member]
Property, plant and equipment, net:
Average Useful Life (Years) 34 years
Buildings And Improvements [Member]
Property, plant and equipment, net:
Property, plant and equipment, gross 7,792 7,565   
Buildings And Improvements [Member] | Minimum [Member]
Property, plant and equipment, net:
Average Useful Life (Years) 15 years
Buildings And Improvements [Member] | Maximum [Member]
Property, plant and equipment, net:
Average Useful Life (Years) 44 years
Machinery And Equipment, Including Fleet And Software [Member]
Property, plant and equipment, net:
Property, plant and equipment, gross 24,743 23,798   
Machinery And Equipment, Including Fleet And Software [Member] | Minimum [Member]
Property, plant and equipment, net:
Average Useful Life (Years) 5 years
Machinery And Equipment, Including Fleet And Software [Member] | Maximum [Member]
Property, plant and equipment, net:
Average Useful Life (Years) 15 years
Construction In Progress [Member]
Property, plant and equipment, net:
Property, plant and equipment, gross 1,737 1,826   
Acquired Franchise Rights [Member]
Amortizable intangible assets, net:
Amortizable intangible assets, gross 931 916
Accumulated amortization (67) (42)
Amortizable intangible assets, net 864 874
Acquired Franchise Rights [Member] | Minimum [Member]
Amortizable intangible assets, net:
Average Useful Life (Years) 56 years
Acquired Franchise Rights [Member] | Maximum [Member]
Amortizable intangible assets, net:
Average Useful Life (Years) 60 years
Reacquired Franchise Rights [Member]
Amortizable intangible assets, net:
Amortizable intangible assets, gross 110 110
Accumulated amortization (68) (47)
Amortizable intangible assets, net 42 63
Reacquired Franchise Rights [Member] | Minimum [Member]
Amortizable intangible assets, net:
Average Useful Life (Years) 1 year
Reacquired Franchise Rights [Member] | Maximum [Member]
Amortizable intangible assets, net:
Average Useful Life (Years) 14 years
Brands [Member]
Amortizable intangible assets, net:
Amortizable intangible assets, gross 1,422 1,417
Accumulated amortization (980) (945)
Amortizable intangible assets, net 442 472
Brands [Member] | Minimum [Member]
Amortizable intangible assets, net:
Average Useful Life (Years) 5 years
Brands [Member] | Maximum [Member]
Amortizable intangible assets, net:
Average Useful Life (Years) 40 years
Other Identifiable Intangibles [Member]
Amortizable intangible assets, net:
Amortizable intangible assets, gross 736 777
Accumulated amortization (303) (298)
Amortizable intangible assets, net $ 433 $ 479
Other Identifiable Intangibles [Member] | Minimum [Member]
Amortizable intangible assets, net:
Average Useful Life (Years) 10 years
Other Identifiable Intangibles [Member] | Maximum [Member]
Amortizable intangible assets, net:
Average Useful Life (Years) 24 years
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Property, Plant and Equipment and Intangible Assets (Future Amortization) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Property, Plant And Equipment And Intangible Assets [Abstract]
2013 $ 110
2014 95
2015 86
2016 78
2017 $ 72
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Property, Plant and Equipment and Intangible Assets (Schedule of Change in Book Value of Nonamortizable Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning $ 31,357 $ 26,444
Acquisitions/(Divestitures) (171) 5,616
Translation and Other 529 (703)
Balance, Ending 31,715 31,357
FLNA [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 341 344
Acquisitions/(Divestitures)      
Translation and Other 6 (3)
Balance, Ending 347 341
LAF [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 950 640
Acquisitions/(Divestitures) 14 351
Translation and Other (25) (41)
Balance, Ending 939 950
PAB [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 19,004 18,986
Acquisitions/(Divestitures) (1) 20
Translation and Other 48 (2)
Balance, Ending 19,051 19,004
Europe [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 10,028 [1] 5,440 [1]
Acquisitions/(Divestitures) (18) [1] 5,245 [1]
Translation and Other 483 [1] (657) [1]
Balance, Ending 10,493 [1] 10,028 [1]
Impairment of intangible assets 23 14
AMEA [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 859 859
Acquisitions/(Divestitures) (166)   
Translation and Other 17   
Balance, Ending 710 859
Goodwill [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 16,800 14,661
Acquisitions/(Divestitures) (102) 2,435
Translation and Other 273 (296)
Balance, Ending 16,971 16,800
Goodwill [Member] | FLNA [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 311 313
Acquisitions/(Divestitures)      
Translation and Other 5 (2)
Balance, Ending 316 311
Goodwill [Member] | QFNA [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 175 175
Acquisitions/(Divestitures)      
Translation and Other      
Balance, Ending 175 175
Goodwill [Member] | LAF [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 793 497
Acquisitions/(Divestitures) (61) 331
Translation and Other (16) (35)
Balance, Ending 716 793
Goodwill [Member] | PAB [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 9,932 9,946
Acquisitions/(Divestitures) 23 (27)
Translation and Other 33 13
Balance, Ending 9,988 9,932
Goodwill [Member] | Europe [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 4,900 [1] 3,040 [1]
Acquisitions/(Divestitures) 78 [1] 2,131 [1]
Translation and Other 236 [1] (271) [1]
Balance, Ending 5,214 [1] 4,900 [1]
Goodwill [Member] | AMEA [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 689 690
Acquisitions/(Divestitures) (142)   
Translation and Other 15 (1)
Balance, Ending 562 689
Reacquired Franchise Rights [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 8,074 8,076
Acquisitions/(Divestitures) (33) 77
Translation and Other 68 (79)
Balance, Ending 8,109 8,074
Reacquired Franchise Rights [Member] | PAB [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 7,342 7,283
Acquisitions/(Divestitures) (33) 77
Translation and Other 28 (18)
Balance, Ending 7,337 7,342
Reacquired Franchise Rights [Member] | Europe [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 732 [1] 793 [1]
Acquisitions/(Divestitures)    [1]    [1]
Translation and Other 40 [1] (61) [1]
Balance, Ending 772 [1] 732 [1]
Acquired Franchise Rights [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 1,780 1,792
Acquisitions/(Divestitures) 9 (1)
Translation and Other 7 (11)
Balance, Ending 1,796 1,780
Acquired Franchise Rights [Member] | PAB [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 1,562 1,565
Acquisitions/(Divestitures) 9 (1)
Translation and Other 2 (2)
Balance, Ending 1,573 1,562
Acquired Franchise Rights [Member] | Europe [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 218 [1] 227 [1]
Acquisitions/(Divestitures)    [1]    [1]
Translation and Other 5 [1] (9) [1]
Balance, Ending 223 [1] 218 [1]
Brands [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 4,703 1,905
Acquisitions/(Divestitures) (45) 3,114
Translation and Other 181 (316)
Balance, Ending 4,839 4,703
Brands [Member] | FLNA [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 30 31
Acquisitions/(Divestitures)      
Translation and Other 1 (1)
Balance, Ending 31 30
Brands [Member] | LAF [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 157 143
Acquisitions/(Divestitures) 75 20
Translation and Other (9) (6)
Balance, Ending 223 157
Brands [Member] | PAB [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 168 182
Acquisitions/(Divestitures)    (20)
Translation and Other (15) 6
Balance, Ending 153 168
Brands [Member] | Europe [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 4,178 [1] 1,380 [1]
Acquisitions/(Divestitures) (96) [1] 3,114 [1]
Translation and Other 202 [1] (316) [1]
Balance, Ending 4,284 [1] 4,178 [1]
Brands [Member] | AMEA [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning 170 169
Acquisitions/(Divestitures) (24)   
Translation and Other 2 1
Balance, Ending 148 170
Other [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning    10
Acquisitions/(Divestitures)    (9)
Translation and Other    (1)
Balance, Ending      
Other [Member] | PAB [Member]
Intangible Assets (Including Goodwill) [Roll Forward]
Balance, Beginning    10
Acquisitions/(Divestitures)    (9)
Translation and Other    (1)
Balance, Ending      
[1] Net increase in 2011 relates primarily to our acquisition of WBD.
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Income Taxes (Narrative) (Details) (USD $)
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Income Tax Contingency [Line Items]
Significant change in reserve for uncertain tax positions is reasonably possible, amount of decrease $ 1,500,000,000
Total gross amount of reserves for income taxes 2,425,000,000
Interest accrued 670,000,000 660,000,000
Interest accrued recognized 10,000,000 90,000,000
Operating loss carryforwards 10,400,000,000
Income tax undistributed international earnings 32,200,000,000
Expire in 2013 [Member]
Income Tax Contingency [Line Items]
Operating loss carryforwards 200,000,000
Expire Between 2014 and 2032 Years [Member]
Income Tax Contingency [Line Items]
Operating loss carryforwards 8,200,000,000
Carried Forward Indefinitely [Member]
Income Tax Contingency [Line Items]
Operating loss carryforwards $ 2,000,000,000
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Income Taxes (Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Income before income taxes
Income before income taxes in U.S $ 3,234 $ 3,964 $ 4,008
Income before income taxes in Foreign 5,070 4,870 4,224
Income before income taxes 8,304 8,834 8,232
Provision for income taxes
Current: U.S. Federal 911 611 932
Current: Foreign 940 882 728
Current: State 153 124 137
Provision for income taxes, Current total 2,004 1,617 1,797
Deferred: U.S. Federal 154 789 78
Deferred: Foreign (95) (88) 18
Deferred: State 27 54 1
Provision for income taxes, Deferred total 86 755 97
Provision for income taxes 2,090 2,372 1,894
Tax rate reconciliation
U.S. Federal statutory tax rate 35.00% 35.00% 35.00%
State income tax, net of U.S. Federal tax benefit 1.40% 1.30% 1.10%
Lower taxes on foreign results (6.90%) (8.70%) (9.40%)
Tax benefit related to tax court decision (2.60%) 0.00% 0.00%
Acquisitions of PBG and PAS       (3.10%)
Other, net (1.70%) (0.80%) (0.60%)
Annual tax rate 25.20% 26.80% 23.00%
Deferred tax liabilities
Investments in noncontrolled affiliates 48 41
Debt guarantee of wholly owned subsidiary 828 828
Property, plant and equipment 2,424 2,466
Intangible assets other than nondeductible goodwill 4,388 4,297
Other 260 184
Gross deferred tax liabilities 7,948 7,816
Deferred tax assets
Net carryforwards 1,378 1,373
Stock-based compensation 378 429
Retiree medical benefits 411 504
Other employee-related benefits 672 695
Pension benefits 647 545
Deductible state tax and interest benefits 345 339
Long-term debt obligations acquired 164 223
Other 863 822
Gross deferred tax assets 4,858 4,930
Valuation allowances (1,233) (1,264)
Deferred tax assets, net 3,625 3,666
Net deferred tax liabilities 4,323 4,150
Deferred taxes included within:
Prepaid expenses and other current assets 1,479 2,277
Deferred income taxes 5,063 4,995
Analysis of valuation allowances
Balance, beginning of year 1,264 875 586
Provision 68 464 75
Other (deductions)/additions (99) (75) 214
Balance, end of year 1,233 1,264 875
Deferred Taxes [Member]
Deferred taxes included within:
Prepaid expenses and other current assets $ 740 $ 845
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Income Taxes (Reserves Rollforward) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance, beginning of year $ 2,167 $ 2,022
Additions for tax positions related to the current year 275 233
Additions for tax positions from prior years 161 147
Reductions for tax positions from prior years (172) (46)
Settlement payments (17) (156)
Statute of limitations expiration (3) (15)
Translation and other 14 (18)
Balance, end of period $ 2,425 $ 2,167
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Stock-Based Compensation (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Common stock, capital shares reserved for future issuance 124
Award equivalence, ratio of stock options to RSUs 4
Percent of equity awards granted to Senior Officers as stock options 50.00%
Unrecognized compensation cost related to nonvested share-based compensation grants $ 389
Weighted-average period for recognizing unrecognized compensation 2 years
PBG and PAS Acquisition [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Stock option equity issuances, vested at acquisition 8.3
RSU equity issuances, vested at acquisition 0.6
Stock options, unvested 5.5
RSUs, unvested 2.1
Acquisition-related awards remaining vesting period 3 years
PBG [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Stock options issued 13.4
Weighted-average grant price, stock options $ 42.89
PAS [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Stock options issued 0.4
Weighted-average grant price, stock options $ 31.72
PEPUnit [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Award performance period 3 years
Weighted-average intrinsic value of RSUs granted $ 64.85 [1]      
Restricted Stock Units (RSUs) [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Weighted-average intrinsic value of RSUs granted $ 66.64 [1] $ 63.87 $ 65.01
Percent of equity awards granted to Senior Officers as performance-based RSUs 50.00%
Restricted Stock Units (RSUs) [Member] | PBG [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
RSUs issued 2.7
Weighted-average intrinsic value of RSUs granted $ 62.3
Stock Options [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Acquisition-related awards remaining vesting period 3 years
Stock option exercisable life 10 years
[1] Weighted-average intrinsic value at grant date.
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Stock-Based Compensation (Summary of Compensation Costs) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense $ 278 $ 326 $ 299
Merger and integration charges 2 13 53
Restructuring and impairment (benefits) / charges (7) 4 0
Total (a) 273 [1] 343 [1] 352 [1]
Income tax benefits recognized in earnings related to stock-based compensation 73 101 89
Unvested acquisition-related grants $ 86
[1] $86 million recorded in 2010 was related to the unvested PBG/PAS acquisition-related grants.
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Stock-Based Compensation (Schedule of Weighted-Average Black-Scholes Fair Value Assumptions) (Details)
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Share-based Compensation [Abstract]
Expected life 6 years 6 years 5 years
Risk-free interest rate 1.30% 2.50% 2.30%
Expected volatility 17.00% 16.00% 17.00%
Expected dividend yield 3.00% 2.90% 2.80%
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Stock-Based Compensation (Stock Option Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at December 31, 2011 91,075 [1]
Granted 3,696 [1]
Exercised (23,585) [1]
Forfeited/expired (3,041) [1]
Outstanding at December 29, 2012 68,145 [1]
Exercisable at December 29, 2012 48,366 [1]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at December 31, 2011 (in USD per share) $ 55.92 [2]
Granted (in USD per share) $ 67.13 [2]
Exercised (in USD per share) $ 47.33 [2]
Forfeited/expired (in USD per share) $ 63.81 [2]
Outstanding at December 29, 2012 (in USD per share) $ 59.15 [2]
Exercisable at December 29, 2012 (in USD per share) $ 56.44 [2]
Outstanding Average Life, at December 31, 2011 5 years 15 days [3]
Exercisable Average Life, at December 31, 2011 4 years 5 months 12 days [3]
Outstanding Aggregate Intrinsic Value, at December 31, 2011 $ 614,322 [4]
Exercisable Aggregate Intrinsic Value, at December 31, 2011 567,761 [4]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number 19,432 [1]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price $ 65.79 [2]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term 7 years 10 months 6 days [3]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value $ 45,374 [4]
[1] Options are in thousands and include options previously granted under PBG, PAS and Quaker legacy plans. No additional options or shares may be granted under the PBG, PAS and Quaker plans.
[2] Weighted-average exercise price.
[3] Weighted-average contractual life remaining.
[4] In thousands.
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Stock-Based Compensation (Restricted Stock Units and PEPUnits Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at December 31, 2011 12,340 [1]
Granted 4,404 [1],[2] 5,333 [2] 8,326 [2]
Converted (3,436) [1]
Forfeited (1,326) [1]
Outstanding at December 29, 2012 11,982 [1] 12,340 [1]
Expected to vest as of December 29, 2012 11,616 [1]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward]
Outstanding at December 31, 2011 (in USD per share) $ 62.96 [3]
Granted (in USD per share) $ 66.64 [3] $ 63.87 $ 65.01
Converted (in USD per share) $ 57.76 [3]
Forfeited (in USD per share) $ 64.8 [3]
Outstanding at December 29, 2012 (in USD per share) $ 65.6 [3] $ 62.96 [3]
Expected to vest as of December 29, 2012 (in USD per share) $ 65.58 [3]
Outstanding, average life, at December 29, 2012 1 year 5 months 27 days [4]
Expected to vest, average life, at December 29, 2012 1 year 4 months 2 days [4]
Outstanding, aggregate intrinsic value, at December 29, 2012 $ 815,051 [2]
Expected to vest, aggregate intrinsic value, at December 29, 2012 790,128 [2]
PEPUnit [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at December 31, 2011    [5]
Granted 410 [2],[5]    [2]    [2]
Converted    [5]
Forfeited (42) [5]
Outstanding at December 29, 2012 368 [5]    [5]
Expected to vest as of December 29, 2012 334 [5]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward]
Outstanding at December 31, 2011 (in USD per share)    [3]
Granted (in USD per share) $ 64.85 [3]      
Converted (in USD per share)    [3]
Forfeited (in USD per share) $ 64.51 [3]
Outstanding at December 29, 2012 (in USD per share) $ 64.89 [3]    [3]
Expected to vest as of December 29, 2012 (in USD per share) $ 64.85 [3]
Outstanding, average life, at December 29, 2012 2 years 3 months 4 days [4]
Expected to vest, average life, at December 29, 2012 2 years 3 months 4 days [4]
Outstanding, aggregate intrinsic value, at December 29, 2012 25,031 [2]
Expected to vest, aggregate intrinsic value, at December 29, 2012 $ 22,721 [2]
[1] RSUs are in thousands and include RSUs previously granted under a PBG plan. No additional RSUs or shares may be granted under the PBG plan.
[2] In thousands.
[3] Weighted-average intrinsic value at grant date.
[4] Weighted-average contractual life remaining.
[5] PEPUnits are in thousands.
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Stock-Based Compensation (Other Stock-Based Compensation Data) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Stock Options
Weighted-average fair value of options granted $ 6.86 $ 7.79 $ 13.93
Total intrinsic value of options exercised(a) $ 512,636 [1] $ 385,678 [1] $ 502,354 [1]
Restricted Stock Units (RSUs) [Member]
RSUs and PEPUnits
Granted 4,404 [1],[2] 5,333 [1] 8,326 [1]
Granted (in USD per share) $ 66.64 [3] $ 63.87 $ 65.01
Total intrinsic value of converted units 236,575 [1] 173,433 [1] 202,717 [1]
PEPUnit [Member]
RSUs and PEPUnits
Granted 410 [1],[4]    [1]    [1]
Granted (in USD per share) $ 64.85 [3]      
Total intrinsic value of converted units    [1]    [1]    [1]
[1] In thousands.
[2] RSUs are in thousands and include RSUs previously granted under a PBG plan. No additional RSUs or shares may be granted under the PBG plan.
[3] Weighted-average intrinsic value at grant date.
[4] PEPUnits are in thousands.
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Pension, Retiree Medical and Savings Plans (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
1 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 29, 2012
Dec. 29, 2012
Discretionary [Member]
Sep. 04, 2010
Retiree Medical Plan [Member]
Dec. 29, 2012
Retiree Medical Plan [Member]
Dec. 31, 2011
Retiree Medical Plan [Member]
Dec. 29, 2012
U.S. Savings Plan [Member]
Dec. 31, 2011
U.S. Savings Plan [Member]
Dec. 29, 2012
2020 And Thereafter [Member]
Dec. 29, 2012
Discretionary [Member]
Dec. 29, 2012
Nondiscretionary [Member]
Dec. 31, 2011
Nondiscretionary [Member]
Dec. 29, 2012
Related to Lump Sum Payments [Member]
Defined Benefit Plan Disclosure [Line Items]
Lower limit of net accumulated gain or loss 10.00%
Average remaining service period of active plan participants, pension expense 11 years
Average remaining service period of active plan participants, retiree medical expense 8 years
Pre-tax curtailment gain $ 62
Unfunded plans included in total projected benefit liability 761
Expected future employer contributions in 2013 240 17
Expected long-term rate of return on U.S. plan assets 7.80%
Pension strategy investment term, years 5 years
Employer contributions 1,614 251 110 1,375 405
Contribution retiree medical plan 70 109 144 140 111 110
Average increase in the cost of covered retiree medical benefits 7.00%
Average increase is then projected to decline 5.00%
Discretionary contribution to fund pension settlement 405
Pre-tax non-cash settlement charge 195
Pre-tax non-cash settlement charge, after-tax $ 131
Pre-tax non-cash settlement charge, net of tax, per share $ 0.08
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Pension, Retiree Medical and Savings Plans (Selected Financial Information for Pension and Retiree Medical Plans) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Change in fair value of plan assets
Employer contributions/funding $ 1,614
Components of the (decrease)/increase in net loss/(gain) included in accumulated other comprehensive loss
Amortization and settlement of losses 41 1,468 260
U.S. [Member]
Change in projected benefit liability
Liability at beginning of year 11,901 9,851
Acquisitions/(divestitures)    11
Service cost 407 350 299
Interest cost 534 547 506
Plan amendments 15 21
Experience loss/(gain) 932 1,484
Benefit payments (278) (414)
Settlement/curtailment (633) (20)
Special termination benefits 8 71
Foreign currency adjustment      
Other      
Liability at end of year 12,886 11,901 9,851
Change in fair value of plan assets
Fair value at beginning of year 9,072 8,870
Acquisitions/(divestitures)    11
Actual return on plan assets 1,282 542
Employer contributions/funding 1,368 63
Participant contributions      
Benefit payments (278) (414)
Settlement (627)   
Foreign currency adjustment      
Fair value at end of year 10,817 9,072 8,870
Funded status (2,069) (2,829)
Amounts recognized
Other assets      
Other current liabilities (51) (91)
Other liabilities (2,018) (2,738)
Net amount recognized (2,069) (2,829)
Amounts included in accumulated other comprehensive loss (pre-tax)
Net loss/(gain) 4,212 4,217
Prior service cost/(credit) 121 122
Total 4,333 4,339
Components of the (decrease)/increase in net loss/(gain) included in accumulated other comprehensive loss
Change in discount rate 776 1,710
Employee-related assumption changes 135 (140)
Liability-related experience different from assumptions 66 (85)
Actual asset return different from expected return (486) 162
Amortization and settlement of losses (451) (147)
Other, including foreign currency adjustments (45) (9)
Total (5) 1,491
Liability at end of year for service to date 11,643 11,205
International [Member]
Change in projected benefit liability
Liability at beginning of year 2,381 2,142
Acquisitions/(divestitures)    (63)
Service cost 100 95 81
Interest cost 115 117 106
Plan amendments    (16)
Experience loss/(gain) 200 224
Benefit payments (76) (69)
Settlement/curtailment (40) (15)
Special termination benefits 1 1
Foreign currency adjustment 102 (41)
Other 2 3
Liability at end of year 2,788 2,381 2,142
Change in fair value of plan assets
Fair value at beginning of year 2,031 1,896
Acquisitions/(divestitures)    (1)
Actual return on plan assets 206 79
Employer contributions/funding 246 176
Participant contributions 3 3
Benefit payments (76) (69)
Settlement (33) (30)
Foreign currency adjustment 86 (23)
Fair value at end of year 2,463 2,031 1,896
Funded status (325) (350)
Amounts recognized
Other assets 51 55
Other current liabilities (2) (1)
Other liabilities (374) (404)
Net amount recognized (325) (350)
Amounts included in accumulated other comprehensive loss (pre-tax)
Net loss/(gain) 1,096 977
Prior service cost/(credit) (3) (2)
Total 1,093 975
Components of the (decrease)/increase in net loss/(gain) included in accumulated other comprehensive loss
Change in discount rate 188 302
Employee-related assumption changes (2) (51)
Liability-related experience different from assumptions 14 (27)
Actual asset return different from expected return (60) 57
Amortization and settlement of losses (64) (55)
Other, including foreign currency adjustments 43 (16)
Total 119 210
Liability at end of year for service to date 2,323 1,921
Retiree Medical Plan [Member]
Change in projected benefit liability
Liability at beginning of year 1,563 1,770
Acquisitions/(divestitures)      
Service cost 50 51 54
Interest cost 65 88 93
Plan amendments    3
Experience loss/(gain) (63) (239)
Benefit payments (111) (110)
Settlement/curtailment      
Special termination benefits 5 1
Foreign currency adjustment 2 (1)
Other      
Liability at end of year 1,511 1,563 1,770
Change in fair value of plan assets
Fair value at beginning of year 190 190
Acquisitions/(divestitures)      
Actual return on plan assets 35   
Employer contributions/funding 251 110
Participant contributions      
Benefit payments (111) (110)
Settlement      
Foreign currency adjustment      
Fair value at end of year 365 190 190
Funded status (1,146) (1,373)
Amounts recognized
Other assets      
Other current liabilities (71) (124)
Other liabilities (1,075) (1,249)
Net amount recognized (1,146) (1,373)
Amounts included in accumulated other comprehensive loss (pre-tax)
Net loss/(gain) (44) 32
Prior service cost/(credit) (92) (118)
Total (136) (86)
Components of the (decrease)/increase in net loss/(gain) included in accumulated other comprehensive loss
Change in discount rate 84 115
Employee-related assumption changes (67) (125)
Liability-related experience different from assumptions (80) (210)
Actual asset return different from expected return (13) 14
Amortization and settlement of losses    (12)
Other, including foreign currency adjustments    (20)
Total $ (76) $ (238)
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Pension, Retiree Medical and Savings Plans (Components of Benefit Expense) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
U.S. [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost $ 407 $ 350 $ 299
Interest cost 534 547 506
Expected return on plan assets (796) (704) (643)
Amortization of prior service cost/(credit) 17 14 12
Amortization of net loss 259 145 119
Gross total 421 352 293
Settlement/curtailment loss/(gain) (a) 185 [1] (8) [1] (2) [1]
Special termination benefits 8 71 45
Total 614 415 336
International [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost 100 95 81
Interest cost 115 117 106
Expected return on plan assets (146) (136) (123)
Amortization of prior service cost/(credit) 1 2 2
Amortization of net loss 53 40 24
Gross total 123 118 90
Settlement/curtailment loss/(gain) (a) 4 [1] 30 [1] 1 [1]
Special termination benefits 1 1 3
Total 128 149 94
Retiree Medical Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost 50 51 54
Interest cost 65 88 93
Expected return on plan assets (22) (14) (1)
Amortization of prior service cost/(credit) (26) (28) (22)
Amortization of net loss    12 9
Gross total 67 109 133
Settlement/curtailment loss/(gain) (a)    [1]    [1] (62) [1]
Special termination benefits 5 1 3
Total $ 72 $ 110 $ 74
[1] Includes pension lump sum settlement charge of $195 million in 2012. This charge is reflected in items affecting comparability (see “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations).
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Pension, Retiree Medical and Savings Plans (Estimated Amounts to be Amortized from Accumulated Other Comprehensive Loss into Benefit Expense in 2012 for Pension and Retiree Medical Plans) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
U.S. [Member]
Defined Benefit Plan Disclosure [Line Items]
Net loss $ 289
Prior service cost/(credit) 18
Total 307
International [Member]
Defined Benefit Plan Disclosure [Line Items]
Net loss 68
Prior service cost/(credit) 1
Total 69
Retiree Medical Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Net loss 1
Prior service cost/(credit) (22)
Total $ (21)
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Pension, Retiree Medical and Savings Plans (Weighted-Average Assumptions to Determine Projected Benefit Liability and Benefit Expense for Pension and Retiree Medical Plans) (Details)
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
U.S. [Member]
Defined Benefit Plan Disclosure [Line Items]
Liability discount rate 4.20% 4.60% 5.70%
Expense discount rate 4.60% 5.70% 6.00%
Expected return on plan assets 7.80% 7.80% 7.80%
Liability rate of salary increases 3.70% 3.70% 4.10%
Expense rate of salary increases 3.70% 4.10% 4.40%
International [Member]
Defined Benefit Plan Disclosure [Line Items]
Liability discount rate 4.40% 4.80% 5.50%
Expense discount rate 4.80% 5.50% 6.00%
Expected return on plan assets 6.70% 6.70% 7.10%
Liability rate of salary increases 3.90% 4.10% 4.10%
Expense rate of salary increases 4.10% 4.10% 4.10%
Retiree Medical Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Liability discount rate 3.70% 4.40% 5.20%
Expense discount rate 4.40% 5.20% 5.80%
Expected return on plan assets 7.80% 7.80% 7.80%
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Pension, Retiree Medical and Savings Plans (Selected Information About Plans with Liability for Service to Date and Total Benefit Liability in Excess of Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Dec. 31, 2011
U.S. [Member]
Selected information for plans with liability for service to date in excess of plan assets
Liability for service to date $ (11,643) $ (11,205)
Fair value of plan assets 10,817 9,072
Selected information for plans with projected benefit liability in excess of plan assets
Benefit liability (12,886) (11,901)
Fair value of plan assets 10,817 9,072
International [Member]
Selected information for plans with liability for service to date in excess of plan assets
Liability for service to date (711) (471)
Fair value of plan assets 552 344
Selected information for plans with projected benefit liability in excess of plan assets
Benefit liability (2,542) (2,191)
Fair value of plan assets 2,166 1,786
Retiree Medical Plan [Member]
Selected information for plans with projected benefit liability in excess of plan assets
Benefit liability (1,511) (1,563)
Fair value of plan assets $ 365 $ 190
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Pension, Retiree Medical and Savings Plans (Estimated Future Benefit Payments) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
2013 $ 560
2014 570
2015 600
2016 650
2017 705
2018-22 4,465
Retiree Medical Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
2013 120
2014 125
2015 125
2016 130
2017 130
2018-22 655
Years 2013 Through 2017 [Member]
Defined Benefit Plan Disclosure [Line Items]
Subsidies expected to be received under the 2003 Medicare Act 13
Years 2018 Through 2022 [Member]
Defined Benefit Plan Disclosure [Line Items]
Subsidies expected to be received under the 2003 Medicare Act $ 90
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Pension, Retiree Medical and Savings Plans Pension, Retiree Medical and Savings Plans (Target Asset Allocations) (Details)
12 Months Ended
Dec. 29, 2012
Fixed Income [Member]
Dec. 29, 2012
U.S. Equity [Member]
Dec. 29, 2012
International Equity [Member]
Dec. 29, 2012
Real Estate [Member]
Dec. 28, 2013
Scenario, Forecast [Member]
Fixed Income [Member]
Dec. 28, 2013
Scenario, Forecast [Member]
U.S. Equity [Member]
Dec. 28, 2013
Scenario, Forecast [Member]
International Equity [Member]
Dec. 28, 2013
Scenario, Forecast [Member]
Real Estate [Member]
Target Asset Allocation [Line Items]
Target investment allocation percentage 40.00% 33.00% 22.00% 5.00% 40.00% 33.00% 22.00% 5.00%
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Pension, Retiree Medical and Savings Plans (Categorized Plan Assets Measured at Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
U.S. Plan Assets [Member]
Dec. 31, 2011
U.S. Plan Assets [Member]
Dec. 29, 2012
International Plan Assets [Member]
Dec. 31, 2011
International Plan Assets [Member]
Dec. 29, 2012
Retiree Medical Plan [Member]
Dec. 31, 2011
Retiree Medical Plan [Member]
Dec. 25, 2010
Retiree Medical Plan [Member]
Dec. 29, 2012
Level 3 [Member]
Dec. 31, 2011
Level 3 [Member]
Dec. 29, 2012
U.S. Common Stock [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
U.S. Common Stock [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
U.S. Common Stock [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
U.S. Common Stock [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
U.S. Common Stock [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
U.S. Commingled Funds [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
U.S. Commingled Funds [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
U.S. Commingled Funds [Member]
International Plan Assets [Member]
Dec. 31, 2011
U.S. Commingled Funds [Member]
International Plan Assets [Member]
Dec. 29, 2012
U.S. Commingled Funds [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
U.S. Commingled Funds [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
U.S. Commingled Funds [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
U.S. Commingled Funds [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
U.S. Commingled Funds [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
U.S. Commingled Funds [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
International Common Stock [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
International Common Stock [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
International Common Stock [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
International Common Stock [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
International Common Stock [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
International Commingled Fund [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
International Commingled Fund [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
International Commingled Fund [Member]
International Plan Assets [Member]
Dec. 31, 2011
International Commingled Fund [Member]
International Plan Assets [Member]
Dec. 29, 2012
International Commingled Fund [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
International Commingled Fund [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
International Commingled Fund [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
International Commingled Fund [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
International Commingled Fund [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
International Commingled Fund [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Preferred Stock [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
Preferred Stock [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Preferred Stock [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Preferred Stock [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Preferred Stock [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Government Securities [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
Government Securities [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Government Securities [Member]
International Plan Assets [Member]
Dec. 31, 2011
Government Securities [Member]
International Plan Assets [Member]
Dec. 29, 2012
Government Securities [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Government Securities [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Government Securities [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Government Securities [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Government Securities [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Government Securities [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Corporate Bonds [Member]
Dec. 31, 2011
Corporate Bonds [Member]
Dec. 29, 2012
Corporate Bonds [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
Corporate Bonds [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Corporate Bonds [Member]
International Plan Assets [Member]
Dec. 31, 2011
Corporate Bonds [Member]
International Plan Assets [Member]
Dec. 29, 2012
Corporate Bonds [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Corporate Bonds [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Corporate Bonds [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Corporate Bonds [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Corporate Bonds [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Corporate Bonds [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Mortgage-Backed Securities [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
Mortgage-Backed Securities [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Mortgage-Backed Securities [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Mortgage-Backed Securities [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Mortgage-Backed Securities [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Contracts With Insurance Companies [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
Contracts With Insurance Companies [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Contracts With Insurance Companies [Member]
International Plan Assets [Member]
Dec. 31, 2011
Contracts With Insurance Companies [Member]
International Plan Assets [Member]
Dec. 29, 2012
Contracts With Insurance Companies [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Contracts With Insurance Companies [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Contracts With Insurance Companies [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Contracts With Insurance Companies [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Contracts With Insurance Companies [Member]
Level 3 [Member]
Dec. 31, 2011
Contracts With Insurance Companies [Member]
Level 3 [Member]
Dec. 29, 2012
Contracts With Insurance Companies [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Contracts With Insurance Companies [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Real Estate [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
Real Estate [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Real Estate [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Real Estate [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Real Estate [Member]
Level 3 [Member]
Dec. 31, 2011
Real Estate [Member]
Level 3 [Member]
Dec. 29, 2012
Real Estate [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Cash And Cash Equivalents [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
Cash And Cash Equivalents [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Cash And Cash Equivalents [Member]
International Plan Assets [Member]
Dec. 31, 2011
Cash And Cash Equivalents [Member]
International Plan Assets [Member]
Dec. 29, 2012
Cash And Cash Equivalents [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Cash And Cash Equivalents [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Cash And Cash Equivalents [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Cash And Cash Equivalents [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Cash And Cash Equivalents [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Cash And Cash Equivalents [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Sub-Total U.S. Plan Assets [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
Sub-Total U.S. Plan Assets [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Sub-Total U.S. Plan Assets [Member]
Level 1 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Sub-Total U.S. Plan Assets [Member]
Level 2 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Sub-Total U.S. Plan Assets [Member]
Level 3 [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Fixed Income Commingled Funds [Member]
International Plan Assets [Member]
Dec. 31, 2011
Fixed Income Commingled Funds [Member]
International Plan Assets [Member]
Dec. 29, 2012
Fixed Income Commingled Funds [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Fixed Income Commingled Funds [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Fixed Income Commingled Funds [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Currency Commingled Funds [Member]
International Plan Assets [Member]
Dec. 31, 2011
Currency Commingled Funds [Member]
International Plan Assets [Member]
Dec. 29, 2012
Currency Commingled Funds [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Currency Commingled Funds [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Currency Commingled Funds [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Other Commingled Fund [Member]
International Plan Assets [Member]
Dec. 31, 2011
Other Commingled Fund [Member]
International Plan Assets [Member]
Dec. 29, 2012
Other Commingled Fund [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Other Commingled Fund [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Other Commingled Fund [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Sub-Total International Plan Assets [Member]
International Plan Assets [Member]
Dec. 31, 2011
Sub-Total International Plan Assets [Member]
International Plan Assets [Member]
Dec. 29, 2012
Sub-Total International Plan Assets [Member]
Level 1 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Sub-Total International Plan Assets [Member]
Level 2 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Sub-Total International Plan Assets [Member]
Level 3 [Member]
International Plan Assets [Member]
Dec. 29, 2012
Dividends And Interest Receivable [Member]
U.S. Plan Assets [Member]
Dec. 31, 2011
Dividends And Interest Receivable [Member]
U.S. Plan Assets [Member]
Dec. 29, 2012
Dividends And Interest Receivable [Member]
International Plan Assets [Member]
Dec. 31, 2011
Dividends And Interest Receivable [Member]
International Plan Assets [Member]
Dec. 29, 2012
Large-Cap Fund(s) In U.S. Commingled Funds [Member]
Dec. 31, 2011
Large-Cap Fund(s) In U.S. Commingled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Representation of one fund in total U.S. plan assets 22.00% 24.00% 25.00% 30.00%
Fair value of plan assets $ 11,182 [1] $ 9,262 [1] $ 2,463 $ 2,031 $ 365 $ 190 $ 190 $ 453 $ 110 $ 626 [1],[2] $ 514 [1],[2] $ 626 [1],[2]    [1],[2]    [1],[2] $ 3,106 [1],[3] $ 3,003 [1],[3] $ 278 [3] $ 246 [3]    [1],[3]    [3] $ 3,106 [1],[3] $ 278 [3]    [1],[3]    [3] $ 1,597 [1],[2] $ 1,089 [1],[2] $ 1,597 [1],[2]    [1],[2]    [1],[2] $ 948 [1],[4] $ 776 [1],[4] $ 863 [4] $ 729 [4]    [1],[4]    [4] $ 948 [1],[4] $ 863 [4]    [1],[4]    [4] $ 20 [1],[5] $ 19 [1],[5]    [1],[5] $ 20 [1],[5]    [1],[5] $ 1,287 [1],[5] $ 1,032 [1],[5] $ 202 [5] $ 171 [5]    [1],[5]    [5] $ 1,287 [1],[5] $ 202 [5]    [1],[5]    [5] $ 2,962 [1],[5],[6] $ 2,653 [1],[5],[6] $ 230 [5] $ 196 [5]    [1],[5],[6]    [5] $ 2,962 [1],[5],[6] $ 230 [5]    [1],[5],[6]    [5] $ 110 [1],[5] $ 24 [1],[5]    [1],[5] $ 110 [1],[5]    [1],[5] $ 27 [1],[7] $ 24 [1],[7] $ 35 [7] $ 30 [7]    [1],[7]    [7]    [1],[7]    [7] $ 62 $ 54 $ 27 [1],[7] $ 35 [7] $ 331 [1],[8]    [1],[8]    [1],[8]    [1],[8] $ 391 $ 56 $ 331 [1],[8] $ 117 [1] $ 78 [1] $ 125 $ 16 $ 117 [1] $ 125    [1]       [1]    $ 11,131 [1] $ 9,212 [1] $ 2,340 [1] $ 8,433 [1] $ 358 [1] $ 600 [9] $ 530 [9]    [9] $ 600 [9]    [9] $ 64 [10] $ 52 [10]    [10] $ 64 [10]    [10] $ 60 [8] $ 56 [8]    [8]    [8] $ 60 [8] $ 2,457 $ 2,026 $ 125 $ 2,237 $ 95 $ 51 [1] $ 50 [1] $ 6 $ 5
Retiree medical plan assets $ 365 $ 190
[1] 2012 and 2011 amounts include $365 million and $190 million, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.
[2] Based on quoted market prices in active markets.
[3] Based on the fair value of the investments owned by these funds that track various U.S. large, mid-cap and small company indices. Includes one large-cap fund that represents 25% and 30%, respectively, of total U.S. plan assets for 2012 and 2011.
[4] Based on the fair value of the investments owned by these funds that track various non-U.S. equity indices.
[5] Based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes that are not observable.
[6] Corporate bonds of U.S.-based companies represent 22% and 24%, respectively, of total U.S. plan assets for 2012 and 2011.
[7] Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable.
[8] Based on the appraised value of the investments owned by these funds as determined by independent third parties using inputs that are not observable.
[9] Based on the fair value of the investments owned by these funds that track various government and corporate bond indices.
[10] Based on the fair value of the investments owned by these funds. Includes managed hedge funds that invest primarily in derivatives to reduce currency exposure.
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Pension, Retiree Medical and Savings Plans (Level 3 Assets) (Details) (Level 3 [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Change in fair value of plan assets
Fair value at beginning of year $ 110
Return on Assets Held at Year End 24
Return on Assets Sold 1
Purchases and Sales, Net 318
Fair value at end of year 453
Real Estate [Member]
Change in fair value of plan assets
Fair value at beginning of year 56
Return on Assets Held at Year End 15
Return on Assets Sold 1
Purchases and Sales, Net 319
Fair value at end of year 391
Contracts With Insurance Companies [Member]
Change in fair value of plan assets
Fair value at beginning of year 54
Return on Assets Held at Year End 9
Return on Assets Sold 0
Purchases and Sales, Net (1)
Fair value at end of year $ 62
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Pension, Retiree Medical and Savings Plans (Effects of 1-Percentage-Point Change in the Assumed Health Care Trend Rate) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
General Discussion of Pension and Other Postretirement Benefits [Abstract]
One percent increase in 2012 service and interest cost components $ 4
One percent decrease in 2012 service and interest cost components (4)
One percent increase in 2012 benefit liability 40
One percent decrease in 2012 benefit liability $ (38)
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Related Party Transactions (Narrative) (Details) (Trust For Benefit Of Employees [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 25, 2010
Trust For Benefit Of Employees [Member]
Related Party Transaction [Line Items]
Share repurchases (in millions of dollars) $ 357
Share repurchases (in millions of shares) 5.5
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Related Party Transactions (Related Party Transactions Reflected in Consolidated Financial Statements) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 2 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Feb. 25, 2010
PBG and PAS [Member]
Related Party Transaction [Line Items]
Net revenue $ 65,492 $ 66,504 $ 57,838 $ 993
Cost of sales 31,291 31,593 26,575 116
Selling, general and administrative expenses $ 24,970 $ 25,145 $ 22,814 $ 6
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Debt Obligations and Commitments (Narrative) (Details)
Dec. 29, 2012
International Divisions [Member]
USD ($)
Dec. 29, 2012
0.750% Senior Notes Due March 2015 [Member]
Notes Due 2015 (1.5% And 2.3%) [Member]
USD ($)
Dec. 29, 2012
0.700% Senior Notes Due August 2015 [Member]
Notes Due 2015 (1.5% And 2.3%) [Member]
USD ($)
Dec. 29, 2012
1.250% Senior Notes Due August 2017 [Member]
Notes Due 2017 (2.0% and 5.0%) [Member]
USD ($)
Dec. 29, 2012
2.750% Senior Notes Due March 2022 [Member]
Notes Due 2018 to 2042 (4.4% and 4.8%) [Member]
USD ($)
Dec. 29, 2012
2.500% Senior Notes Due November 2022 [Member]
Notes Due 2018 to 2042 (4.4% and 4.8%) [Member]
GBP (£)
Dec. 29, 2012
4.000% Senior Notes Due March 2042 [Member]
Notes Due 2018 to 2042 (4.4% and 4.8%) [Member]
USD ($)
Dec. 29, 2012
3.600% Senior Notes Due August 2042 [Member]
Notes Due 2018 to 2042 (4.4% and 4.8%) [Member]
USD ($)
Jun. 16, 2012
Extended Unsecured Revolving Credit Agreement Ending June 2016 [Member]
Jun. 16, 2012
Extended Unsecured Revolving Credit Agreement Ending June 2013 [Member]
Debt Instrument [Line Items]
Fixed and floating rate notes issued $ 750,000,000 $ 900,000,000 $ 1,000,000,000 $ 1,250,000,000 £ 500,000,000 $ 750,000,000 $ 600,000,000
Interest rate on debt 0.75% 0.70% 1.25% 2.75% 2.50% 4.00% 3.60%
Debt instrument, term of agreement 4 years 364 days
Outstanding amount of debt related to borrowings $ 857,000,000
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Debt Obligations and Commitments (Schedule of Long and Short-Term Debt Contractual Commitments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Dec. 31, 2011
Debt Instrument [Line Items]
Short-term debt obligations $ 4,815 $ 6,205
Long-term debt obligations, gross 26,445 23,117
Total 23,544 20,568
Current Maturities Of Long-Term Debt [Member]
Debt Instrument [Line Items]
Current maturities of long-term debt 2,901 2,549
Less: current maturities of long-term debt obligations (2,901) (2,549)
Commercial Paper (0.1% And 0.1%) [Member]
Debt Instrument [Line Items]
Commercial paper (0.1% and 0.1%) 1,101 2,973
Interest rate on debt 0.10% 0.10%
Other Borrowings (7.4% And 7.6%) [Member]
Debt Instrument [Line Items]
Other borrowings (7.4% and 7.6%) 813 683
Interest rate on debt 7.40% 7.60%
Notes Due 2012 (3.0%) [Member]
Debt Instrument [Line Items]
Notes due 0 2,353
Interest rate on debt 3.00%
Notes Due 2013 (2.3% And 2.3%) [Member]
Debt Instrument [Line Items]
Notes due 2,891 2,841
Interest rate on debt 2.30% 2.30%
Notes Due 2014 (4.4% And 4.6%) [Member]
Debt Instrument [Line Items]
Notes due 3,237 3,335
Interest rate on debt 4.40% 4.60%
Notes Due 2015 (1.5% And 2.3%) [Member]
Debt Instrument [Line Items]
Notes due 3,300 1,632
Interest rate on debt 1.50% 2.30%
Notes Due 2016 (3.9% And 3.9%) [Member]
Debt Instrument [Line Items]
Notes due 1,878 1,876
Interest rate on debt 3.90% 3.90%
Notes Due 2017 (2.0% and 5.0%) [Member]
Debt Instrument [Line Items]
Notes due 1,250 258
Interest rate on debt 2.00% 5.00%
Notes Due 2018 to 2042 (4.4% and 4.8%) [Member]
Debt Instrument [Line Items]
Notes due 13,781 10,548
Interest rate on debt 4.40% 4.80%
Other Debt Instruments Due 2013 to 2020 (9.3% and 9.9%) [Member]
Debt Instrument [Line Items]
Other notes due $ 108 $ 274
Interest rate on debt 9.30% 9.90%
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Debt Obligations and Commitments (Long-Term Contractual Commitments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Debt Instrument [Line Items]
Long-term debt obligations, total $ 22,858 [1],[2]
Long-term debt obligations, 2014-2015 6,450 [1],[2]
Long-term debt obligations, 2016-2017 3,105 [1],[2]
Long-term debt obligations, 2018 and beyond 13,303 [1],[2]
Interest on debt obligations, total 8,772 [2],[3]
Interest on debt obligations, 2013 915
Interest on debt obligations, 2014-2015 1,477 [2],[3]
Interest on debt obligations, 2016-2017 1,252 [2],[3]
Interest on debt obligations, 2018 and beyond 5,128 [2],[3]
Operating leases, total 2,061 [2]
Operating leases, 2013 445 [2]
Operating Leases, 2014-2015 634 [2]
Operating Leases, 2016-2017 362 [2]
Operating Leases, 2018 and beyond 620 [2]
Purchasing commitments, total 1,738 [2],[4]
Purchasing commitments, 2013 741 [2],[4]
Purchasing commitments, 2014-2015 808 [2],[4]
Purchasing commitments, 2016-2017 135 [2],[4]
Purchasing commitments, 2018 and beyond 54 [2],[4]
Marketing commitments, total 2,332 [2],[4]
Marketing Obligation, 2013 298 [2],[4]
Marketing obligation, 2014-2015 605
Marketing obligation, 2016-2017 490 [2],[4]
Marketing obligation, 2018 and beyond 939
Total long-term contractual commitments 37,761 [2]
Total Long Term Contractual Commitments 2013 2,399 [2]
Total Long Term Contractual Commitments 2014-2015 9,974 [2]
Total Long Term Contractual Commitments 2016-2017 5,344 [2]
Total Long Term Contractual Commitments 2018 and beyond 20,044 [2]
Long-term debt obligations, 2013 2,901
Increase decrease in carrying value of debt in interest rate fair value hedge 337
PBG and PAS Acquisition [Member]
Debt Instrument [Line Items]
Fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS $ 349
[1] Excludes $2,901 million related to current maturities of long-term debt, $349 million related to the fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS and $337 million related to the increase in carrying value of long-term debt representing the gains on our fair value interest rate swaps.
[2] Based on year-end foreign exchange rates.
[3] Interest payments on floating-rate debt are estimated using interest rates effective as of December 29, 2012.
[4] Primarily reflects non-cancelable commitments as of December 29, 2012.
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Financial Instruments (Narrative) (Details) (USD $)
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Derivatives, Fair Value [Line Items]
Percentage of revenue from outside operations, net 49.00%
Specified percentage of revenue from total outside operations, net 25.00%
Debt instrument, fair value $ 30,500,000,000 $ 29,800,000,000
Foreign Exchange Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative maturity term, maximum 2 years
Expected reclassification of net losses related to hedge from accumulated OCI into net income within the next 12 months 14,000,000
Foreign currency derivatives at face value, net 2,800,000,000 2,300,000,000
Interest Rate Contracts [Member]
Derivatives, Fair Value [Line Items]
Expected reclassification of net losses related to hedge from accumulated OCI into net income within the next 12 months 23,000,000
Notional amount of interest rate derivatives 8,100,000,000 8,300,000,000
Percentage of total debt, net of related interest rate derivatives, exposed to variable interest rates 27.00% 38.00%
Commodity Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative maturity term, maximum 3 years
Expected reclassification of net losses related to hedge from accumulated OCI into net income within the next 12 months 12,000,000
Face value of open commodity derivative contracts qualifying for hedging 507,000,000 598,000,000
Derivative asset not designated as hedging instrument, face value $ 853,000,000 $ 630,000,000
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Financial Instruments (Fair Values of Financial Assets and Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Dec. 31, 2011
Derivatives, Fair Value [Line Items]
Available-for-sale securities $ 79 [1],[2] $ 59 [1],[2]
Short-term investments - index funds, at fair value 161 [2],[3] 157 [2],[3]
Prepaid forward contracts 33 [2],[4] 40 [2],[4]
Deferred compensation 492 [2],[5] 519 [2],[5]
Total asset derivatives at fair value 466 [2],[6] 462 [2],[6]
Total liability derivatives at fair value 247 [2],[6] 375 [2],[6]
Total Financial Assets at Fair Value 739 [2],[6] 718 [2],[6]
Total Financial Liabilities at Fair Value 739 [2],[6] 894 [2],[6]
Derivatives Designated As Fair Value Hedging Instruments Assets [Member]
Derivatives, Fair Value [Line Items]
Interest rate derivatives 276 [2],[7] 300 [2],[7]
Derivatives Designated As Fair Value Hedging Instruments Liabilities [Member]
Derivatives, Fair Value [Line Items]
Interest rate derivatives 0 [2],[7] 0 [2],[7]
Derivatives Designated As Cash Flow Hedging Instruments Assets [Member]
Derivatives, Fair Value [Line Items]
Forward exchange contracts 5 [2],[8] 25 [2],[8]
Interest rate derivatives 6 [2],[7] 0 [2],[7]
Commodity contracts - other 8 [2],[9] 3 [2],[9]
Derivatives designated as hedging instruments, Assets, Total 19 [2],[6] 28 [2],[6]
Derivatives Designated As Cash Flow Hedging Instruments Liabilities [Member]
Derivatives, Fair Value [Line Items]
Forward exchange contracts 19 [2],[8] 5 [2],[8]
Interest rate derivatives 0 [2],[7] 69 [2],[7]
Commodity contracts - other 24 [2],[9] 78 [2],[9]
Derivatives designated as hedging instruments, Liabilities, Total 43 [2],[6] 152 [2],[6]
Derivatives Not Designated As Hedging Instruments Assets [Member]
Derivatives, Fair Value [Line Items]
Forward exchange contracts 8 [2],[8] 17 [2],[8]
Interest rate derivatives 123 [2],[7] 107 [2],[7]
Commodity contracts - other 40 [2],[9] 10 [2],[9]
Derivatives not designated as hedging instruments, Assets, Total 171 [2],[6] 134 [2],[6]
Derivatives Not Designated As Hedging Instruments Liabilities [Member]
Derivatives, Fair Value [Line Items]
Forward exchange contracts 6 [2],[8] 20 [2],[8]
Interest rate derivatives 153 [2],[7] 141 [2],[7]
Commodity contracts - other 45 [2],[9] 62 [2],[9]
Derivatives not designated as hedging instruments, Liabilities, Total 204 [2],[6] 223 [2],[6]
Level 1 Fair Values Of Assets And Liabilities [Member]
Derivatives, Fair Value [Line Items]
Deferred compensation $ 10 $ 44
[1] Based on the price of common stock. Categorized as a Level 1 asset.
[2] Interest rate derivative losses are primarily from fair value hedges and are included in interest expense. These losses are substantially offset by decreases in the value of the underlying debt, which is also included in interest expense. All other gains/losses are from non-designated hedges and are included in corporate unallocated expenses.
[3] Based on price changes in index funds used to manage a portion of market risk arising from our deferred compensation liability. Categorized as a Level 1 asset.
[4] Based primarily on the price of our common stock.
[5] Based on the fair value of investments corresponding to employees’ investment elections. As of December 29, 2012 and December 31, 2011, $10 million and $44 million, respectively, are categorized as Level 1 liabilities. The remaining balances are categorized as Level 2 liabilities.
[6] Financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets, with the exception of available-for-sale securities and short-term investments, which are classified as short-term investments. Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities. Unless specifically indicated, all financial assets and liabilities are categorized as Level 2 assets or liabilities.
[7] Based on LIBOR forward rates and recently reported market transactions of spot and forward rates.
[8] Based on recently reported market transactions of spot and forward rates.
[9] Based on recently reported transactions in the marketplace, primarily swap arrangements.
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Financial Instruments (Effective Portion of Pre-Tax (Gains)/Losses on Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Fair Value/Non-Designated Hedges [Member]
Derivatives, Fair Value [Line Items]
(Gains)/Losses Recognized in Income Statement(a) $ (29) [1] $ (74) [1]
Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss 50 126
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b) 90 [2] 5 [2]
Forward Exchange Contracts [Member] | Fair Value/Non-Designated Hedges [Member]
Derivatives, Fair Value [Line Items]
(Gains)/Losses Recognized in Income Statement(a) (23) [1] 14 [1]
Forward Exchange Contracts [Member] | Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss 41 (9)
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b) 8 [2] 26 [2]
Interest Rate Contracts [Member] | Fair Value/Non-Designated Hedges [Member]
Derivatives, Fair Value [Line Items]
(Gains)/Losses Recognized in Income Statement(a) 17 [1] (113) [1]
Interest Rate Contracts [Member] | Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss (2) 84
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b) 19 [2] 15 [2]
Commodity Contracts [Member] | Fair Value/Non-Designated Hedges [Member]
Derivatives, Fair Value [Line Items]
(Gains)/Losses Recognized in Income Statement(a) (23) [1] 25 [1]
Commodity Contracts [Member] | Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Losses/(Gains) Recognized in Accumulated Other Comprehensive Loss 11 51
Losses/(Gains) Reclassified from Accumulated Other Comprehensive Loss into Income Statement(b) $ 63 [2] $ (36) [2]
[1] Interest rate derivative losses are primarily from fair value hedges and are included in interest expense. These losses are substantially offset by decreases in the value of the underlying debt, which is also included in interest expense. All other gains/losses are from non-designated hedges and are included in corporate unallocated expenses.
[2] Interest rate derivative losses are included in interest expense. All other gains/losses are primarily included in cost of sales.
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Net Income Attributable to PepsiCo per Common Share (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Earnings Per Share [Abstract]
Out-of-the-money options excluded from earnings per share 9.6 25.9 24.4
Out-of-the-money options average exercise price $ 67.64 $ 66.99 $ 67.26
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Net Income Attributable to PepsiCo per Common Share (Basic and Diluted Net Income Attributable to PepsiCo per Common Share) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Earnings Per Share [Abstract]
Net income attributable to PepsiCo $ 6,178 $ 6,443 $ 6,320
Dividends (1) (1) (1)
Redemption premium (6) (6) (5)
Net income available for PepsiCo common shareholders - Value 6,171 6,436 6,314
Net income available for PepsiCo common stockholders - Shares 1,557 [1] 1,576 [1] 1,590 [1]
Basic net income attributable to PepsiCo per common share $ 3.96 $ 4.08 $ 3.97
Stock options and RSUs - Shares 17 [1] 20 [1] 23 [1]
ESOP convertible preferred stock - Value 7 7 6
ESOP convertible preferred stock - Shares 1 [1] 1 [1] 1 [1]
Diluted shares - Value $ 6,178 $ 6,443 $ 6,320
Diluted shares - Shares 1,575 [1] 1,597 [1] 1,614 [1]
Diluted net income attributable to PepsiCo per common share $ 3.92 $ 4.03 $ 3.91
[1] Weighted-average common shares outstanding (in millions).
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Preferred Stock (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, authorized (in shares) 3,000,000 3,000,000
ESOP [Member]
Class of Stock [Line Items]
Preferred stock, dividends per share $ 5.46
Preferred shares, issued 803,953 803,953
Preferred shares, outstanding 186,553 206,653
Outstanding preferred shares, fair value $ 63 $ 68
Preferred stock convertible at the option of the holder 4.9625
Preferred stock call price $ 78
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Preferred Stock (Schedule of Preferred Stock) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, end of year $ 22,399 $ 20,899 $ 21,476
Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares 800,000 [1] 800,000 [1] 800,000 [1]
Preferred stock, value 41 41 41
Repurchased Preferred Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, beginning of year (in shares) 600,000 [1] 600,000 [1] 600,000 [1]
Balance, beginning of year 157 150 145
Redemptions (in shares) 0 [1] 0 [1] 0 [1]
Redemptions 7 7 5
Balance, end of year (in shares) 600,000 [1] 600,000 [1] 600,000 [1]
Balance, end of year $ 164 $ 157 $ 150
[1] In millions.
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Accumulated Other Comprehensive Loss Attributable to Pepsico (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Other comprehensive income/(loss) attributable to PepsiCo $ 742 $ (2,599) $ 164
Currency translation adjustment (1,946) (2,688) (1,159)
Cash flow hedges, net of tax (94) (112) (38)
Unamortized pension and retiree medical, net of tax (a) (3,491) [1] (3,419) [1] (2,442) [1]
Unrealized gain on securities, net of tax 80 62 70
Other (36) (72) (61)
Accumulated other comprehensive loss attributable to PepsiCo (5,487) (6,229) (3,630)
Net of taxes decrease to opening balance of accumulated other comprehensive loss attributable to Pepsico $ 1,832 $ 1,831 $ 1,322
[1] Net of taxes of $1,832 million in 2012, $1,831 million in 2011 and $1,322 million in 2010.
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Supplemental Financial Information (Schedule of Supplemental Balance Sheet Information) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Accounts receivable
Trade receivables $ 6,215 $ 6,036
Other receivables 983 1,033
Total receivables 7,198 7,069
Analysis of valuation allowances
Allowance, beginning of year 157 144 90
Net amounts charged to expense 28 30 12
Deductions (27) [1] (41) [1] (37) [1]
Other (1) [2] 24 [2] 79 [2]
Allowance, end of year 157 157 144
Net receivables 7,041 6,912
Inventories (c)
Raw materials 1,875 [3] 1,883 [3]
Work-in-process 173 [3] 207 [3]
Finished goods 1,533 [3] 1,737 [3]
Inventories 3,581 [3] 3,827 [3]
Percent of inventory cost calculated using the LIFO method 3.00% 3.00%
Other assets
Noncurrent notes and accounts receivable 136 159
Deferred marketplace spending 195 186
Pension plans 62 65
Other investments 718 [4] 89 [4]
Other 542 522
Other Assets 1,653 1,021
Accounts payable and other current liabilities
Accounts payable 4,451 4,083
Accrued marketplace spending 2,187 2,105
Accrued compensation and benefits 1,705 1,771
Dividends payable 838 813
Other current liabilities 2,722 2,985
Accounts payable and other current liabilities $ 11,903 $ 11,757
Indirect equity interest percentage 5.00%
[1] Includes accounts written off.
[2] Includes adjustments related to acquisitions, currency translation and other adjustments.
[3] Approximately 3%, in both 2012 and 2011, of the inventory cost was computed using the LIFO method. The differences between LIFO and FIFO methods of valuing these inventories were not material.
[4] Net increase in 2012 primarily relates to our 5% indirect equity interest in Tingyi-Asahi Beverages Holding Co. Ltd. (TAB).
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Supplemental Financial Information (Schedule of Other Supplemental Information) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Supplemental Financial Information [Abstract]
Rent expense $ 581 $ 589 $ 526
Interest paid 1,074 1,039 1,043
Income taxes paid, net of refunds $ 1,840 $ 2,218 $ 1,495
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Acquisitions (Narrative) (Details)
12 Months Ended 0 Months Ended 4 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Dec. 29, 2012
USD ($)
Dec. 31, 2011
USD ($)
Dec. 25, 2010
USD ($)
Dec. 29, 2012
PBG and PAS Acquisition [Member]
USD ($)
Dec. 31, 2011
PBG and PAS Acquisition [Member]
USD ($)
Dec. 25, 2010
PBG and PAS Acquisition [Member]
USD ($)
Dec. 24, 2011
PBG and PAS Acquisition [Member]
USD ($)
Feb. 26, 2010
PBG and PAS Acquisition [Member]
USD ($)
May 19, 2011
WBD [Member]
USD ($)
Feb. 03, 2011
WBD [Member]
USD ($)
Dec. 29, 2012
WBD [Member]
USD ($)
Dec. 29, 2012
WBD [Member]
USD ($)
Dec. 31, 2011
WBD [Member]
USD ($)
Dec. 25, 2010
WBD [Member]
USD ($)
Aug. 15, 2011
WBD [Member]
RUB
Mar. 10, 2011
WBD [Member]
RUB
Mar. 10, 2011
American Depositary Shares [Member]
WBD [Member]
RUB
Mar. 31, 2012
Tingyi [Member]
Dec. 29, 2012
Tingyi [Member]
USD ($)
Business Acquisition [Line Items]
Total purchase price $ 12,600,000,000
Previously held equity interests in PBG and PAS 4,300,000,000
Outstanding common stock ownership percentage 66.00%
Cash paid for entity 8,300,000,000 1,300,000,000 3,800,000,000 79,000,000 79,000,000
Acquisition, net of cash and cash equivalents acquired       2,833,000,000 2,428,000,000    2,428,000,000   
Ownership in WBD after acquisition 98.60% 77.00% 100.00%
Price paid per ordinary share in Russian Rubles 3,883.7 3,883.7
Tender offer for all outstanding American Depositary Share in Russian Rubles 970.925
Indirect equity interest percentage 5.00% 5.00%
Call option for indirect equity percentage, maximum percentage 20.00%
Merger and integration costs 16,000,000 329,000,000 808,000,000 150,000,000
Merger and integration charges, after tax $ 176,000,000
Merger and integration charges, after-tax impact per share $ 0.11
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