Faster, stronger, better. Annual report 2019 creating more smiles with every sip

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
OUR BUSINESS
Executive Overview
Our Operations
Other Relationships
Our Business Risks
OUR FINANCIAL RESULTS
Results of Operations – Consolidated Review
Results of Operations – Division Review
FLNA
QFNA
PBNA
LatAm
Europe
AMESA
APAC
Results of Operations – Other Consolidated Results
Non-GAAP Measures
Items Affecting Comparability
Our Liquidity and Capital Resources
Return on Invested Capital
OUR CRITICAL ACCOUNTING POLICIES
Revenue Recognition
Goodwill and Other Intangible Assets
Income Tax Expense and Accruals
Pension and Retiree Medical Plans
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Balance Sheet
Consolidated Statement of Equity
Notes to Consolidated Financial Statements
Note 1 – Basis of Presentation and Our Divisions
Note 2 – Our Significant Accounting Policies
Note 3 – Restructuring and Impairment Charges
Note 4 – Property, Plant and Equipment and Intangible Assets
Note 5 – Income Taxes
Note 6 – Share-Based Compensation
Note 7 – Pension, Retiree Medical and Savings Plans
Note 8 – Debt Obligations
Note 9 – Financial Instruments
Note 10 – Net Income Attributable to PepsiCo per Common Share
Note 11 – Preferred Stock
Note 12 – Accumulated Other Comprehensive Loss Attributable to PepsiCo
Note 13 – Leases
Note 14 – Acquisitions and Divestitures
Note 15 – Supplemental Financial Information
Note 16 – Selected Quarterly Financial Data (unaudited)
Report of Independent Registered Public Accounting Firm
GLOSSARY
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43
43
47
48
51
52
52
53
53
54
55
56
57
59
63
66
67
68
69
70
73
74
75
76
77
78
82
86
90
93
97
100
107
109
114
114
115
116
118
120
121
123
127

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Our discussion and analysis is intended to help the reader understand our results of operations and financial 
condition and is provided as an addition to, and should be read in connection with, our consolidated financial 
statements and the accompanying notes. Definitions of key terms can be found in the glossary. Unless 
otherwise noted, tabular dollars are presented in millions, except per share amounts. All per share amounts 
reflect common stock per share amounts, assume dilution unless otherwise noted, and are based on unrounded 
amounts. Percentage changes are based on unrounded amounts.