PEP · 10-Q · 2026Q2 · Full report

TCJ Act Transition Tax Payment

PEPSICO INC · 2026-07-09 · Importance 36 · Surprise 42 · In source text

The filing notes that the TCJ Act imposed a one-time mandatory transition tax on undistributed international earnings. As of June 13, 2026, PepsiCo's final mandatory transition tax liability of $965 million has been paid. The company refers readers to its Liquidity and Capital Resources discussion and Note 5 to the 2025 Form 10-K for further discussion of the TCJ Act impact. The payment is presented as a completed obligation as of the reporting date.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
liabilitynegativerealized-0.9%As of June 13, 2026, PepsiCo's final mandatory transition tax liability under the TCJ Act of $965 million has been paid.
cashnegativerealized-0.9%As of June 13, 2026, PepsiCo's final mandatory transition tax liability under the TCJ Act of $965 million has been paid.