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

Other Consolidated Results
Change
2019
2018
2017
2019
2018
Other pension and retiree medical benefits 
(expense)/income
$ (44)
$ 298
$ 233
$ (342)
$
65
Net interest expense
$ (935)
$(1,219)
$ (907) $ 284
$ (312)
Annual tax rate 
(a)
21.0%
(36.7)%
48.9%
Net income attributable to PepsiCo
$ 7,314
$12,515
$ 4,857
(42)%
158%
Net income attributable to PepsiCo per common
share – diluted
$ 5.20
$ 8.78
$ 3.38
(41)%
160%
Mark-to-market net impact
(0.06)
0.09
(0.01)
Restructuring and impairment charges
0.21
0.18
0.16
Inventory fair value adjustments and merger and 
integration charges
0.03
0.05
—
Pension-related settlement charges
0.15
—
—
Net tax related to the TCJ Act 
(a)
(0.01)
(0.02)
1.70
Other net tax benefits 
(a)
—
(3.55)
—
Charges related to cash tender and exchange offers
—
0.13
—
Net income attributable to PepsiCo per common 
share – diluted, excluding above items 
(b)
$ 5.53
(c)
$ 5.66
$ 5.23
(2)%
8%
Impact of foreign exchange translation
1
1
Growth in net income attributable to PepsiCo per 
common share – diluted, excluding above items, 
on a constant currency basis 
(b)
(1)%
9%
(a) See Note 5 to our consolidated financial statements for further information. 
(b) See “Non-GAAP Measures.”
(c) Does not sum due to rounding.
2019
Other pension and retiree medical benefits expense increased $342 million, primarily reflecting settlement 
charges of $220 million related to the purchase of a group annuity contract and settlement charges of $53 
million related to one-time lump sum payments to certain former employees who had vested benefits.
Net interest expense decreased $284 million reflecting the prior-year charge of $253 million in connection 
with our cash tender and exchange offers, primarily representing the tender price paid over the carrying value 
of the tendered notes, as well as gains on the market value of investments used to economically hedge a 
portion of our deferred compensation liability. This decrease also reflects lower interest expense due to lower 
average debt balances. These impacts were partially offset by lower interest income due to lower average 
cash balances. 
The reported tax rate increased 57.7 percentage points, primarily reflecting the prior-year other net tax benefits 
related to the reorganization of our international operations, which increased the current-year reported tax 
rate by 47 percentage points. Additionally, the prior-year favorable conclusion of certain international tax 
audits and the favorable resolution with the IRS of all open matters related to the audits of taxable years 2012 
and 2013, collectively, increased the current-year reported tax rate by 8 percentage points. See Note 5 to our 
consolidated financial statements for further information.
Net income attributable to PepsiCo decreased 42% and net income attributable to PepsiCo per common share 
decreased 41%. Items affecting comparability (see “Items Affecting Comparability”) negatively impacted 

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57
both net income attributable to PepsiCo performance and net income attributable to PepsiCo per common 
share performance by 38 percentage points.
2018
Other pension and retiree medical benefits income increased $65 million, reflecting the impact of the $1.4 
billion discretionary pension contribution to the PepsiCo Employees Retirement Plan A (Plan A) in the United 
States, as well as the recognition of net asset gains, partially offset by higher amortization of net losses.
Net interest expense increased $312 million reflecting a charge of $253 million in connection with our cash 
tender and exchange offers, primarily representing the tender price paid over the carrying value of the tendered 
notes. This increase also reflects higher interest rates on debt balances, as well as losses on the market value 
of investments used to economically hedge a portion of our deferred compensation liability. These impacts 
were partially offset by higher interest income due to higher interest rates on cash balances.
The reported tax rate decreased 85.6 percentage points, reflecting both other net tax benefits related to the 
reorganization of our international operations, which reduced the reported tax rate by 45 percentage points, 
and the 2017 provisional net tax expense related to the TCJ Act, which reduced the 2018 reported tax rate 
by 25 percentage points. Additionally, the favorable conclusion of certain international tax audits and the 
favorable resolution with the IRS of all open matters related to the audits of taxable years 2012 and 2013, 
collectively, reduced the reported tax rate by 7 percentage points. See Note 5 to our consolidated financial 
statements for further information.
Net income attributable to PepsiCo increased 158% and net income attributable to PepsiCo per common 
share increased 160%. Items affecting comparability (see “Items Affecting Comparability”) positively 
contributed 150 percentage points to net income attributable to PepsiCo growth and 152 percentage points 
to net income attributable to PepsiCo per common share growth.