PEP · 10-Q · 2026Q2 · Full report

Net Interest Expense and Other

PEPSICO INC · 2026-07-09 · Importance 18 · Surprise 14 · Matches filing data

Net interest expense and other decreased $30 million in the 12 weeks ended June 13, 2026, driven by higher average cash balances, higher gains on market value of investments used to economically hedge deferred compensation liabilities and lower interest rates on average debt balances, partially offset by higher average debt balances and lower interest rates on average cash balances.,For the 24 weeks ended June 13, 2026 net interest expense and other increased $7 million, reflecting higher average debt balances and lower rates on average cash balances, partly offset by higher average cash balances and gains on hedging investments.,Management cites changes in average cash and debt balances and hedge gains as the primary drivers of quarter‑to‑quarter and year‑over‑year movement in net interest and related items.

Key facts

• Net interest expense and other decreased $30 million for the 12 weeks ended June 13, 2026 due to higher average cash balances, higher gains on the market value of investments used to economically hedge a portion of our deferred compensation liability and lower interest rates on average debt balances, partially offset by higher average debt balances and lower interest rates on average cash balances. source
• Net interest expense and other increased $7 million for the 24 weeks ended June 13, 2026 due to higher average debt balances and lower interest rates on average cash balances, partially offset by higher average cash balances, lower interest rates on average debt balances and higher gains on the market value of investments used to economically hedge a portion of our deferred compensation liability. source

Impact estimates