PepsiCo PEP Prepaid Incentive Arrangements
Prepaid Incentive Arrangements at other companies
Other financials
Where this comes from
Reported directly by PepsiCo in its filing.
Tagged under the XBRL concept pep:PrepaidIncentives.
The source filing: PepsiCo’s 10-K, filed February 3, 2026.
- Filed
- Feb 2, 2026, 7:00 PM EST
- Fiscal year
- FY2025
- Accession
- 0000077476-26-000007
The terms of most of our incentive arrangements do not exceed one year and, therefore, do not require highly uncertain long-term estimates. Certain arrangements, such as fountain pouring rights, may extend beyond one year. Upfront payments to customers under these arrangements are recognized over the shorter of the economic or contractual life, primarily as a reduction of revenue, and the remaining balances of $329 million as of December 27, 2025 and $237 million as of December 28, 2024 are included in prepaid expenses and other current assets and other assets on our balance sheet.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
FAQ
- What is PepsiCo's prepaid incentive arrangements?
- PepsiCo (PEP) reported prepaid incentive arrangements of $329M in Q4 2025.
- How has PepsiCo's prepaid incentive arrangements changed year-over-year?
- PepsiCo's prepaid incentive arrangements increased by 38.8% year-over-year, from $237M to $329M.
- What is the long-term trend for PepsiCo's prepaid incentive arrangements?
- Over 5 years (2020 to 2025), PepsiCo's prepaid incentive arrangements has grown at a 1.9% compound annual growth rate (CAGR), from $299M to $329M.
- What does prepaid incentive arrangements mean?
- These are payments made in advance to customers or vendors for future incentive programs, such as trade promotions or volume rebates. They represent a current asset that will be recognized as an expense or reduction in revenue over the term of the agreement. This metric provides insight into the company's trade spending strategy and contractual commitments.
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