HSBC HOLDINGS PLC2024 Interim resultsNoel Quinn,Group Chief Executive,said:“After delivering record .
2024-08-07
26页
5星级
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 6-KREPORT OF FOREIGN PRIVATE ISSUERPURSUANT TO RULE 13a-16 OR 15d-16UNDER THE SECURITIES EXCHANGE ACT OF 1934For the month of July,2024Commission File Number:001-38438Spotify Technology S.A.(Translation of registrants name into English)33 Boulevard Prince HenriL-1724 LuxembourgGrand Duchy of Luxembourg(Address of principal executive office)Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.Form 20-F Form 40-F Spotify Technology S.A.Interim condensed consolidated financial statementsFor the three and six months ended June 30,2024Table of contents PagePART I-FINANCIAL INFORMATION Item 1.Financial Statements 1Interim condensed consolidated statement of operations 1Interim condensed consolidated statement of comprehensive income/(loss)2Interim condensed consolidated statement of financial position 3Interim condensed consolidated statement of changes in equity 4Interim condensed consolidated statement of cash flows 6Notes to the interim condensed consolidated financial statements 7Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations 27Item 3.Quantitative and Qualitative Disclosures About Market Risk 40PART II-OTHER INFORMATION Item 1.Legal Proceedings 43Item 1A.Risk Factors 43Item 2.Unregistered Sales of Equity Securities and Use of Proceeds 43Item 3.Defaults Upon Senior Securities 43Item 5.Other Information 43Signatures 44PART I-FINANCIAL INFORMATIONItem 1.Financial StatementsInterim condensed consolidated statement of operations(Unaudited)(in millions,except share and per share data)Three months ended June 30,Six months ended June 30,Note2024202320242023Revenue20 3,807 3,177 7,443 6,219 Cost of revenue 2,695 2,411 5,327 4,687 Gross profit 1,112 766 2,116 1,532 Research and development 379 453 768 888 Sales and marketing 343 399 667 746 General and administrative 124 161 247 301 846 1,013 1,682 1,935 Operating income/(loss)266 (247)434 (403)Finance income4 76 33 135 60 Finance costs4(72)(27)(125)(104)Finance income/(costs)-net 4 6 10 (44)Income/(loss)before tax 270 (241)444 (447)Income tax(benefit)/expense5(4)61 (27)80 Net income/(loss)attributable to owners of the parent 274 (302)471 (527)Earnings/(loss)per share attributable to owners of the parentBasic6 1.37 (1.55)2.37 (2.71)Diluted6 1.33 (1.55)2.30 (2.71)Weighted-average ordinary shares outstandingBasic6 199,959,172 194,420,128 198,985,721 193,993,664 Diluted6 206,119,851 194,420,128 205,123,767 193,993,664 The accompanying notes are an integral part of the interim condensed consolidated financial statements.Table of Contents-1-Interim condensed consolidated statement of comprehensive income/(loss)(Unaudited)(in millions)Three months ended June 30,Six months ended June 30,Note2024202320242023Net income/(loss)attributable to owners of the parent 274 (302)471 (527)Other comprehensive income/(loss)Items that may be subsequently reclassified to interim condensed consolidated statement of operations(net of tax):Change in net unrealized gain or loss on short term investments13,19 1 (1)(1)5 Change in net unrealized gain or loss on cash flow hedging instruments13,19(3)(5)(2)(7)Change in foreign currency translation adjustment 6 (9)28 (22)Items not to be subsequently reclassified to interim condensed consolidated statement of operations(net of tax):Gains/(losses)in the fair value of long term investments13,19 313 (94)565 (99)Change in fair value of Exchangeable Notes due to change in the Groups credit risk15,19 (10)(4)(10)Other comprehensive income/(loss)for the period(net of tax)317 (119)586 (133)Total comprehensive income/(loss)for the period attributable to owners of the parent 591 (421)1,057 (660)The accompanying notes are an integral part of the interim condensed consolidated financial statements.Table of Contents-2-Interim condensed consolidated statement of financial position(in millions)NoteJune 30,2024December 31,2023(Unaudited)Assets Non-current assets Lease right-of-use assets7 254 300 Property and equipment8 211 247 Goodwill9 1,167 1,137 Intangible assets9 68 84 Long term investments19 1,931 1,215 Restricted cash and other non-current assets10 70 75 Finance lease receivables7 52 Deferred tax assets5 49 28 3,802 3,086 Current assetsTrade and other receivables11 753 858 Income tax receivable 35 20 Short term investments19 1,344 1,100 Cash and cash equivalents 4,054 3,114 Other current assets12 158 168 6,344 5,260 Total assets 10,146 8,346 Equity and liabilitiesEquityShare capital Other paid in capital 5,637 5,155 Treasury shares13(262)(262)Other reserves13 2,595 1,812 Accumulated deficit(3,711)(4,182)Equity attributable to owners of the parent 4,259 2,523 Non-current liabilitiesExchangeable Notes15,19 1,323 1,203 Lease liabilities7 472 493 Accrued expenses and other liabilities17 11 26 Provisions18 3 3 Deferred tax liabilities5 19 8 1,828 1,733 Current liabilitiesTrade and other payables16 1,091 978 Income tax payable 17 12 Deferred revenue 657 622 Accrued expenses and other liabilities17 2,223 2,440 Provisions18 24 21 Derivative liabilities19 47 17 4,059 4,090 Total liabilities 5,887 5,823 Total equity and liabilities 10,146 8,346 The accompanying notes are an integral part of the interim condensed consolidated financial statements.Table of Contents-3-Interim condensed consolidated statement of changes in equity(Unaudited)(in millions)NoteSharecapitalOther paid incapitalTreasurySharesOtherreservesAccumulateddeficitEquity attributable toowners of the parentBalance at January 1,2024 5,155 (262)1,812 (4,182)2,523 Income for the period 197 197 Other comprehensive income 269 269 Issuance of shares upon exercise of stock options,restricted stock units,and contingently issuable shares13 242 242 Restricted stock units withheld for employee taxes (27)(27)Share-based compensation14 69 69 Income tax impact associated with share-based compensation5 36 36 Balance at March 31,2024 5,397 (262)2,159 (3,985)3,309 Income for the period 274 274 Other comprehensive income 317 317 Issuance of shares upon exercise of stock options and restricted stock units13 240 240 Restricted stock units withheld for employee taxes (33)(33)Share-based compensation14 81 81 Income tax impact associated with share-based compensation5 71 71 Balance at June 30,2024 5,637 (262)2,595 (3,711)4,259 Table of Contents-4-NoteSharecapitalOther paid incapitalTreasurySharesOtherreservesAccumulateddeficitEquity attributable toowners of the parentBalance at January 1,2023 4,789 (262)1,521 (3,647)2,401 Loss for the period (225)(225)Other comprehensive loss (14)(14)Reclassification of loss on sale of long term investments13 3 (3)Issuance of shares upon exercise of stock options,restricted stock units,and contingently issuable shares13 75 75 Restricted stock units withheld for employee taxes (13)(13)Share-based compensation14 105 105 Income tax impact associated with share-based compensation5 13 13 Balance at March 31,2023 4,864 (262)1,615 (3,875)2,342 Loss for the period (302)(302)Other comprehensive loss (119)(119)Issuance of shares upon exercise of stock options and restricted stock units13 35 35 Restricted stock units withheld for employee taxes (19)(19)Share-based compensation14 99 99 Income tax impact associated with share-based compensation5 18 18 Balance at June 30,2023 4,899 (262)1,594 (4,177)2,054 The accompanying notes are an integral part of the interim condensed consolidated financial statements.Table of Contents-5-Interim condensed consolidated statement of cash flows(Unaudited)(in millions)Six months ended June 30,Note20242023Operating activities Net income/(loss)471 (527)Adjustments to reconcile net income/(loss)to net cash flowsDepreciation of property and equipment and lease right-of-use assets7,8 43 61 Amortization of intangible assets9 18 27 Impairment charges on real estate assets7,8 18 90 Write-off of content assets12 30 Share-based compensation expense14 150 202 Finance income4(135)(60)Finance costs4 125 104 Income tax(benefit)/expense5(27)80 Other(1)(3)Changes in working capital:Decrease in trade receivables and other assets 120 21(Decrease)/increase in trade and other liabilities(143)20 Increase in deferred revenue 28 24 Increase/(decrease)in provisions18 4 (1)Interest paid on lease liabilities7(18)(20)Interest received 78 49 Income tax paid(28)(25)Net cash flows from operating activities 703 72 Investing activitiesPayment of deferred consideration pertaining to business combinations(10)(7)Purchases of property and equipment8(7)(4)Purchases of short term investments19(2,283)(375)Sales and maturities of short term investments19 2,079 376 Change in restricted cash10 1 (2)Dividends received4 18 Other(4)3 Net cash flows used in investing activities(206)(9)Financing activitiesProceeds from exercise of stock options14 482 110 Payments of lease liabilities7(39)(42)Lease incentives received7 2 Payments for employee taxes withheld from restricted stock unit releases14(57)(29)Net cash flows from financing activities 386 41 Net increase in cash and cash equivalents 883 104 Cash and cash equivalents at beginning of the period 3,114 2,483 Net foreign exchange gains/(losses)on cash and cash equivalents 57 (37)Cash and cash equivalents at June 30 4,054 2,550 Supplemental disclosure of cash flow informationNon-cash investing and financing activitiesRecognition of lease right-of-use asset in exchange for lease liabilities7 13 17 Real estate assets disposed of in exchange for finance lease receivables7,8 47 Purchases of property and equipment in trade and other liabilities8 1 3 Employee taxes withheld from restricted stock unit releases in trade and other liabilities14 3 3 The accompanying notes are an integral part of the interim condensed consolidated financial statements.Table of Contents-6-Notes to the interim condensed consolidated financial statements(Unaudited)1.Corporate informationSpotify Technology S.A.(the“Company”or“parent”)is a public limited company incorporated and domiciled in Luxembourg.The Companys registered office is 33 Boulevard Prince Henri,L-1724 Luxembourg,Grand Duchy of Luxembourg.The principal activity of the Company and its subsidiaries(collectively,the“Group,”“we,”“us,”or“our”)is audio streaming.The Groups premium service(“Premium Service”)provides users with unlimited online and offline high-quality streaming access to its catalog of music and podcasts.In select markets,the Premium Service provides eligible users with limited online and offline streaming access to its catalog of audiobooks.The Premium Service offers a music listening experience without commercial breaks.The Groups ad-supported service(“Ad-Supported Service”and together with the Premium Service and other subscription offerings,the“Service”)has no subscription fees and provides users with limited on-demand online access to the catalog of music and unlimited online and offline access to the catalog of podcasts.The Group depends on securing content licenses from a number of major and minor content owners and other rights holders in order to provide its service.2.Basis of preparation and summary of material accounting policiesThe interim condensed consolidated financial statements of Spotify Technology S.A.for the three and six months ended June 30,2024 and 2023 have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board(“IASB”).The interim financial information is unaudited.The interim financial information reflects all normal recurring adjustments that are,in the opinion of management,necessary to fairly present the information set forth herein.The interim condensed consolidated financial statements should be read in conjunction with the Groups consolidated financial statements for the year ended December 31,2023,as they do not include all the information and disclosures required in the annual consolidated financial statements.Interim results are not necessarily indicative of the results for a full year.The interim condensed consolidated financial statements are presented in millions of Euros.New and amended standards and interpretations adopted by the GroupClassification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants-Amendments to IAS 1 On January 1,2024,the Group adopted the IASB issued amendments to paragraphs 69 to 76 of IAS 1 Presentation of Financial Statements to specify the requirements for classifying liabilities as current or non-current.The amendments are applied on a retrospective basis and require the Group to reclassify the Exchangeable Notes(as defined below)as a current liability if the exchange conditions are met,even if no noteholder actually requires us to exchange their notes.Adoption of this amendment did not result in the reclassification of the Exchangeable Notes as a current liability at any reporting date,from the inception of the Exchangeable Notes to June 30,2024,as the exchange conditions had not been met.There are no other new International Financial Reporting Standards(“IFRS”)or IFRS Interpretation Committee(“IFRIC”)interpretations effective during the six months ended June 30,2024 that have a material impact to the interim condensed consolidated financial statements.New standards and interpretations issued not yet effectivePresentation and Disclosure in Financial Statements-IFRS 18 In April 2024,the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements(“IFRS 18”)which replaces IAS 1 Presentation of Financial Statements.IFRS 18 requires an entity to classify all income and expenses within its statement of profit or loss into one of five categories:operating;investing;financing;income taxes;and discontinued operations.The first three categories are new.These categories are complemented by the requirement to present subtotals and totals for“operating profit or loss,”“profit or loss before financing income and taxes,”and“profit or loss.”IFRS 18,and the amendments to the other standards,is effective for reporting periods beginning on or after January 1,2027,but earlier application is permitted.The Group is currently evaluating the impact of this new standard.Classification and Measurement of Financial Instruments-Amendments to IFRS 9 and IFRS 7Table of Contents-7-In May 2024,the IASB issued amendments to IFRS 9 and IFRS 7,Amendments to the Classification and Measurement of Financial Instruments.The amendments clarify that a financial liability is derecognized on the“settlement date,”which is when the related obligation is discharged,canceled,expired or the liability otherwise qualifies for derecognition.The amendments also clarify how to assess the contractual cash flow characteristics of financial assets that include environmental,social and governance(“ESG”)-linked features and other similar contingent features,and the treatment of non-recourse assets and contractually linked instruments.In addition,the amendments require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event(including those that are ESG-linked),and equity instruments classified at fair value through other comprehensive income.The amendments will be effective for annual reporting periods beginning on or after January 1,2026,but earlier application is permitted.The Group is currently evaluating the impact of these amendments.There are no other IFRS or IFRIC interpretations that are not yet effective and that are expected to have a material impact to the interim condensed consolidated financial statements.3.Critical accounting estimates and judgmentsIn preparing these interim condensed consolidated financial statements,the significant judgments made by management in applying the Groups accounting policies and the key sources of estimation and uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31,2023.Estimates and judgments are continually evaluated and are based on historical experience and other factors,including expectations of future events.4.Finance income and costs Three months ended June 30,Six months ended June 30,2024202320242023(in millions)Finance income Fair value movements on derivative liabilities(Note 19)1 1 Interest income 52 30 97 56 Interest income on finance lease receivables 1 2 Dividend income 18 18 Other finance income 5 2 10 3 Foreign exchange gains 8 Total 76 33 135 60 Finance costsFair value movements on derivative liabilities(Note 19)(18)(26)(7)Fair value movements on Exchangeable Notes(Note 19)(43)(5)(78)(48)Interest expense on lease liabilities(9)(10)(18)(20)Other finance costs(2)(2)(3)(6)Foreign exchange losses (10)(23)Total(72)(27)(125)(104)5.Income taxThe effective tax rates for the three months ended June 30,2024 and 2023 were(1.6)%and(25.1)%,respectively.The effective tax rates for the six months ended June 30,2024 and 2023 were(6.1)%and(17.8)%,respectively.The Group operates in a global environment with significant operations in various jurisdictions outside Luxembourg.Accordingly,the consolidated income tax rate is a composite rate reflecting the Groups earnings and the applicable tax rates in the jurisdictions where the Group operates.For the three months ended June 30,2024,the income tax benefit of 4 million was due primarily to the recognition of deferred tax assets as a result of the increase in the unrealized gain on the Groups long-term investment in Tencent Music Entertainment Group(“TME”)of 53 million,offset by 38 million of income tax expense which arose because the excess tax benefit of share-based compensation deductions was recognized in equity and 10 million of income taxes payable associated with entities in a taxable profit position.For the three months ended June 30,2023,the income tax expense of 61 million was Table of Contents-8-due primarily to 26 million of deferred tax expense related to the derecognition of deferred tax assets as a result of the decrease in unrealized gain on the Groups long-term investment in TME,17 million of income tax expense which arose because the excess tax benefit of share-based compensation deductions was recognized in equity,as well as 12 million of income taxes payable associated with entities in a taxable profit position.For the six months ended June 30,2024,the income tax benefit of 27 million was due primarily to the recognition of deferred tax assets as a result of the increase in unrealized gain on the Groups long-term investment in TME of 117 million,offset by 64 million of income tax expense which arose because the excess tax benefit of share-based compensation deductions was recognized in equity and 16 million of income taxes payable associated with entities in a taxable profit position.For the six months ended June 30,2023,the income tax expense of 80 million was due primarily to the derecognition of deferred tax assets resulting from the decrease in the unrealized gain on the Groups long term investment in TME of 28 million,23 million of income tax expense which arose because the excess tax benefit of share-based compensation deductions was recognized in equity,as well as 19 million of income taxes payable associated with entities in a taxable profit position.Transactions recorded through other comprehensive income/(loss)have been shown net of their tax impact,as applicable.The Group is in scope of the OECD Pillar 2 Model Rules(“P2 Rules”).The P2 Rules have been enacted(or substantively enacted)in most jurisdictions in which the Group operates,including Luxembourg and Sweden.Although no material exposure arising from Pillar 2 has been identified to date,material Pillar 2 impacts to our tax expense remain possible.We are subject to ongoing tax audits in several jurisdictions,and most of these audits involve transfer pricing matters.Tax authorities in certain jurisdictions have challenged our tax positions.We regularly assess the likely outcomes of these audits,taking into account any new information available,in order to determine the appropriateness of the tax reserves.If management concludes that it is not probable that a tax position will be accepted,the effect of that uncertainty is reflected at either the most likely amount or the expected value,taking into account a range of possible outcomes.An Advance Pricing Agreement(APA)with the United States government was executed in July 2024 for the tax years 2014 through 2021 covering various transfer pricing matters.The conclusion of this APA did not have a material impact.Tax provisions related to uncertain tax positions in the interim condensed consolidated statement of financial position,which management has concluded are not probable to be accepted were 14 million as of June 30,2024 and 8 million as of December 31,2023.None of the provisions related to uncertain tax positions are reasonably expected to be resolved within the next 12 months.Interest and penalties included in income tax expense were not material in any of the periods presented.Due to the uncertainty associated with our tax positions,any future agreement with the tax authorities could have a significant impact on our results of operations,financial condition,and cash flows.Net deferred tax assets of 30 million and 20 million have been recorded in the interim condensed consolidated statement of financial position as of June 30,2024 and December 31,2023,respectively.In evaluating the probability of realizing deferred tax assets,the Group considered all available positive and negative evidence of realizability,primarily past operating results.As of June 30,2024 and December 31,2023,deferred tax assets of 791 million and 796 million have not been recognized.Changes in profitability,in the jurisdictions where these balances originated,among other factors,could have a substantial impact on managements assessment of deferred tax recognition.6.Earnings/(loss)per shareBasic earnings/(loss)per share is computed using the weighted-average number of outstanding ordinary shares during the period.Diluted earnings/(loss)per share is computed using the weighted-average number of outstanding ordinary shares and potential outstanding ordinary shares during the period.Potential ordinary shares,which are based on the weighted-average ordinary shares underlying outstanding stock options,restricted stock units,other contingently issuable shares,warrants,and Exchangeable Notes and computed using the treasury stock method or the if-converted method,as applicable,are included when calculating diluted earnings/(loss)per share when their effect is dilutive.The computation of earnings/(loss)per share for the respective periods is as follows:Table of Contents-9-Three months ended June 30,Six months ended June 30,2024202320242023(in millions,except share and per share data)Basic earnings/(loss)per share Net income/(loss)attributable to owners of the parent 274 (302)471 (527)Shares used in computation:Weighted-average ordinary shares outstanding 199,959,172 194,420,128 198,985,721 193,993,664 Basic earnings/(loss)per share attributable to owners of the parent 1.37 (1.55)2.37 (2.71)Diluted earnings/(loss)per shareNet income/(loss)attributable to owners of the parent 274 (302)471 (527)Net income/(loss)used in the computation of diluted earnings/(loss)per share 274 (302)471 (527)Shares used in computation:Weighted-average ordinary shares outstanding 199,959,172 194,420,128 198,985,721 193,993,664 Stock options 4,216,472 4,122,911 Restricted stock units 1,925,727 1,993,421 Other contingently issuable shares 18,480 21,714 Diluted weighted-average ordinary shares 206,119,851 194,420,128 205,123,767 193,993,664 Diluted earnings/(loss)per share attributable to owners of the parent 1.33 (1.55)2.30 (2.71)Potential dilutive securities that were not included in the diluted earnings/(loss)per share calculations because they would be anti-dilutive were as follows:Three months ended June 30,Six months ended June 30,2024202320242023Stock options 1,429,580 15,739,427 1,601,086 15,739,427 Restricted stock units 2,439 3,476,096 6,829 3,476,096 Other contingently issuable shares 36,898 36,898 Warrants 800,000 800,000 800,000 800,000 Exchangeable Notes 2,911,500 2,911,500 2,911,500 2,911,500 7.LeasesThe Group leases certain properties under non-cancellable lease agreements that primarily relate to office space.The expected remaining lease terms are up to 10 years.Table of Contents-10-Below is the roll-forward of lease right-of-use assets:Right-of-use assets (in millions)Cost At January 1,2024 684 Increases 13 Decreases(172)Exchange differences 11 At June 30,2024 536 Accumulated depreciation and impairment lossAt January 1,2024(384)Depreciation charge(22)Impairment charge(12)Decreases 142 Exchange differences(6)At June 30,2024(282)Cost,net accumulated depreciation and impairment lossAt January 1,2024 300 At June 30,2024 254 During the six months ended June 30,2024,we recorded 12 million of impairment charges for right-of-use assets in connection with our strategic decision to reduce our real estate footprint in certain locations and initiate subleases of these leased office spaces(“Office Space Optimization Initiative”).Below is the roll-forward of lease liabilities:Lease liabilities20242023(in millions)At January 1 558 613 Increases 13 17 Payments(1)(57)(62)Interest expense 18 20 Lease incentives received(2)2 Exchange differences 11 (14)At June 30 543 576(1)18 million and 20 million of interest paid on lease liabilities are included in operating activities and 39 million and 42 million of payments of lease liabilities included in financing activities within the interim condensed consolidated statement of cash flows for the six months ended June 30,2024 and 2023,respectively.(2)2 million of lease incentives received are included in financing activities within the interim condensed statement of cash flows for the six months ended June 30,2023.There were no lease incentives received during the six months ended June 30,2024.Table of Contents-11-Below is the maturity analysis of lease liabilities:Lease liabilitiesJune 30,2024Maturity Analysis(in millions)Less than one year 105 One to five years 336 More than five years 273 Total lease commitments 714 Impact of discounting remaining lease payments(171)Total lease liabilities 543 Lease liabilities included in the interim condensed consolidated statement of financial positionCurrent 71 Non-current 472 Total 543 Excluded from the lease commitments above are short term leases.Expenses relating to short term leases were approximately 1 million for both the three months ended June 30,2024 and 2023,and 2 million for both the six months ended June 30,2024 and 2023,respectively.Additionally,the Group has entered into certain lease agreements with approximately 40 million of commitments,which had not commenced as of June 30,2024,and,as such,have not been recognized in the interim condensed consolidated statement of financial position.The weighted-average incremental borrowing rate applied to lease liabilities recognized in the interim condensed consolidated statement of financial position as of June 30,2024 was 6.4%.During the six months ended June 30,2024,the Group entered into agreements to sublease a portion of its leased offices under finance leases.As an intermediate lessor,the Group accounts for sublease arrangements separately from the related head lease agreements.Subleases are classified as either finance or operating leases by reference to the right-of-use asset arising from the head lease.Where the lease transfers substantially all the risks and rewards of ownership to the lessee,the contract is classified as a finance lease;all other leases are classified as operating leases.Amounts due from lessees under finance subleases are recognized as receivables discounted using the interest rate implicit in the lease.Below is the roll-forward of finance lease receivables:Finance lease receivables20242023(in millions)At January 1 Additions 51 Interest income 2 At June 30 53 Table of Contents-12-Below is the maturity analysis of finance lease receivables:Finance lease receivablesJune 30,2024Maturity Analysis(in millions)Less than one year 1 One to five years 38 More than five years 49 Total lease payments receivable 88 Unearned finance income(35)Total finance lease receivables 53 Finance lease receivables included in the interim condensed consolidated statement of financial positionCurrent 1 Non-current 52 Total 53 8.Property and equipmentProperty and equipmentLeaseholdimprovementsTotal(in millions)Cost At January 1,2024 93 444 537 Additions 2 1 3 Disposals(4)(55)(59)Exchange differences 3 9 12 At June 30,2024 94 399 493 Accumulated depreciation and impairment lossAt January 1,2024(79)(211)(290)Depreciation charge(5)(16)(21)Impairment charge (6)(6)Disposals 4 37 41 Exchange differences(1)(5)(6)At June 30,2024(81)(201)(282)Cost,net accumulated depreciation and impairment lossAt January 1,2024 14 233 247 At June 30,2024 13 198 211 During the six months ended June 30,2024,we recorded 6 million of impairment charges for leasehold improvements in connection with the Office Space Optimization Initiative.The Group had 2 million and 4 million of leasehold improvements that were not placed into service as of June 30,2024 and December 31,2023,respectively.Table of Contents-13-9.Goodwill and intangible assets Internaldevelopmentcosts andpatentsAcquiredintangibleassetsTotalGoodwillTotal(in millions)Cost At January 1,2024 68 168 236 1,137 1,373 Additions 2 2 2 Derecognition of fully amortized intangibles(2)(23)(25)(25)Exchange differences 2 2 30 32 At June 30,2024 68 147 215 1,167 1,382 Accumulated amortizationAt January 1,2024(55)(97)(152)(152)Amortization charge(4)(14)(18)(18)Derecognition of fully amortized intangibles 2 23 25 25 Exchange differences (2)(2)(2)At June 30,2024(57)(90)(147)(147)Cost,net accumulated amortizationAt January 1,2024 13 71 84 1,137 1,221 At June 30,2024 11 57 68 1,167 1,235 Amortization charges related to intangible assets of 7 million and 9 million are included in research and development in the interim condensed consolidated statement of operations during the three months ended June 30,2024 and 2023,respectively.Amortization charges related to intangible assets of 15 million and 19 million are included in research and development in the interim condensed consolidated statement of operations during the six months ended June 30,2024 and 2023,respectively.There were no impairment charges for goodwill and no material impairment charges for intangible assets for the three and six months ended June 30,2024 and 2023,respectively.10.Restricted cash and other non-current assetsJune 30,2024December 31,2023(in millions)Restricted cash Lease deposits and guarantees 48 50 Other 1 1 Other non-current assets 21 24 Total 70 75 11.Trade and other receivables June 30,2024December 31,2023(in millions)Trade receivables 548 607 Less:allowance for expected credit losses(3)(5)Trade receivables-net 545 602 Other receivables 208 256 Total 753 858 Table of Contents-14-12.Other current assetsJune 30,2024December 31,2023(in millions)Content assets 73 95 Prepaid expenses and other 74 64 Derivative assets 11 9 Total 158 168 Content asset amortization of 52 million and 53 million is included in cost of revenue in the interim condensed consolidated statement of operations for the three months ended June 30,2024 and 2023,respectively.Content asset amortization of 103 million is included in cost of revenue in the interim condensed consolidated statement of operations for both the six months ended June 30,2024 and 2023.13.Equity and other reservesAs of June 30,2024 and December 31,2023,the Company had 204,256,242 and 201,343,630 ordinary shares issued and fully paid,respectively,with 3,448,071 and 4,200,241 ordinary shares held as treasury shares,respectively.On August 20,2021,the Company announced that the board of directors had approved a program to repurchase up to$1.0 billion of the Companys ordinary shares.Repurchases of up to 10,000,000 of the Companys ordinary shares were authorized at the Companys general meeting of shareholders on April 21,2021.The repurchase program will expire on April 21,2026.Since the commencement of this repurchase program and through June 30,2024,469,274 ordinary shares were repurchased for 91 million under this program.For the three and six months ended June 30,2024,the Company issued and repurchased 2,000,000 and 2,900,000 of its own ordinary shares,respectively,from its Netherlands subsidiary at par value.For the three and six months ended June 30,2024,the Company reissued 1,754,106 and 3,652,170 treasury shares,respectively,upon the exercise of stock options and vesting of restricted stock units.For the three and six months ended June 30,2023,the Company issued and repurchased 700,000 of its own ordinary shares from its Netherlands subsidiary at par value.For the three and six months ended June 30,2023,the Company reissued 511,676 and 1,347,969 treasury shares,respectively,upon the exercise of stock options,vesting of restricted stock units and contingently issuable shares.As of June 30,2024 and December 31,2023,the Groups founders held 337,341,690 and 343,841,690 beneficiary certificates,respectively.Table of Contents-15-Other reserves 20242023(in millions)Currency translation At January 1 63 100 Currency translation 28 (22)At June 30 91 78 Short term investmentsAt January 1(4)(18)Losses on fair value that may be subsequently reclassified to interim condensed consolidated statement of operations(10)Losses reclassified to interim condensed consolidated statement of operations 9 6 Deferred tax (1)At June 30(5)(13)Long term investmentsAt January 1 224 161 Gains/(Losses)on fair value not to be subsequently reclassified to interim condensed consolidated statement of operations 712 (124)Losses on sale of long term investment reclassified to accumulated deficit 3 Deferred tax(147)25 At June 30 789 65 Exchangeable NotesAt January 1(7)3 Losses on fair value attributable to changes in credit risk(5)(14)Deferred tax 1 4 At June 30(11)(7)Cash flow hedgesAt January 1(3)10(Losses)/Gains on fair value that may be subsequently reclassified to interim condensed consolidated statement of operations(6)3 Losses/(Gains)reclassified to revenue 13 (35)(Gains)/Losses reclassified to cost of revenue(10)23 Deferred tax 1 2 At June 30(5)3 Share-based compensationAt January 1 1,539 1,265 Share-based compensation 150 204 Income tax impact associated with share-based compensation 107 31 Restricted stock units withheld for employee taxes(60)(32)At June 30 1,736 1,468 Other reserves at June 30 2,595 1,594 Table of Contents-16-14.Share-based compensationThe expense recognized in the interim condensed consolidated statement of operations for share-based compensation is as follows:Three months ended June 30,Six months ended June 30,2024202320242023(in millions)Cost of revenue 2 1 3 3 Research and development 47 60 86 125 Sales and marketing 18 21 34 41 General and administrative 15 15 27 33 Total 82 97 150 202 Activity in the Groups RSUs and other contingently issuable shares outstanding and related information is as follows:RSUsOther Number ofRSUsWeightedaveragegrant datefair valueNumber ofAwardsWeightedaveragegrant datefair value US$US$Outstanding at January 1,20242,554,925 132.39 36,898 155.83 Granted634,307 260.70 Forfeited(70,849)159.43 Released(601,647)151.76(14,596)154.15 Outstanding at June 30,20242,516,736 159.37 22,302 156.93 In the table above,the number of RSUs and other contingently issuable shares released include ordinary shares that the Group has withheld for settlement of employees tax obligations due upon the vesting of RSUs and other contingently issuable shares.For most of our employees,when RSUs vest,the Group withholds the number of shares that are equal to the monetary value of the employees tax obligation from the total number of shares that otherwise would have been issued.The Group then remits cash to tax authorities on the employees behalf.If all the RSUs outstanding at June 30,2024 subsequently vest,the Group estimates that it would be required to remit approximately 273 million to tax authorities over the vesting period for the years 2024 through 2028.In determining this estimate,the Group used the Companys ordinary share price as at June 30,2024.The actual amount remitted to tax authorities is dependent on the Companys ordinary share price on each of the vesting dates,as well as the number of awards that ultimately vest.Activity in the Groups stock options outstanding and related information is as follows:Options Number ofoptionsWeightedaverageexercise price US$Outstanding at January 1,202412,429,245 165.93 Granted597,800 271.67 Forfeited(145,841)165.47 Exercised(3,321,213)157.70 Expired(165,980)301.32 Outstanding at June 30,20249,394,011 173.18 Exercisable at January 1,20245,793,791 184.98 Exercisable at June 30,20243,883,933 195.50 The weighted-average contractual life for the stock options outstanding at June 30,2024 was 2.8 years.The weighted-average share price at exercise for options exercised during the six months ended June 30,2024 was US$273.53.The weighted-average fair value of options granted during the six months ended June 30,2024 was US$116.48 per option.Table of Contents-17-The following table lists the inputs to the Black-Scholes option-pricing models used for share-based compensation for the three and six months ended June 30,2024 and 2023:Three months ended June 30,Six months ended June 30,2024202320242023Expected volatility(%)53.8-56.051.5-58.853.7-57.651.5-61.2Risk-free interest rate(%)4.4-4.93.6-4.13.8-4.93.5-4.7Expected life of stock options(years)2.6-4.82.6-4.82.6-4.82.6-4.8Weighted-average share price(US$)302.05 145.58 265.67 110.26 15.Exchangeable NotesOn March 2,2021,the Companys wholly owned subsidiary,Spotify USA Inc.(the“Issuer”),issued US$1,500 million aggregate principal amount of 0%Exchangeable Senior Notes due 2026(the“Exchangeable Notes”),which included the initial purchasers exercise in full of their option to purchase an additional US$200 million principal amount of the Exchangeable Notes.The Exchangeable Notes will mature on March 15,2026,unless earlier repurchased,redeemed or exchanged.The Exchangeable Notes are fully and unconditionally guaranteed,on a senior,unsecured basis by the Company.The net proceeds from the issuance of the Exchangeable Notes were 1,223 million after deducting transaction costs of 18 million.The transaction costs were immediately expensed and included in finance costs in the interim condensed consolidated statement of operations for the three months ended March 31,2021.The Exchangeable Notes are the Issuers senior unsecured obligations and are equal in right of payment with the Issuers future senior,unsecured indebtedness,senior in right of payment to the Issuers future indebtedness that is expressly subordinated to the Exchangeable Notes and effectively subordinated to the Issuers future secured indebtedness,to the extent of the value of the collateral securing that indebtedness.The Exchangeable Notes will be structurally subordinated to all future indebtedness and other liabilities,including trade payables,and(to the extent the Issuer is not a holder thereof)preferred equity,if any,of the Issuers subsidiaries.The noteholders may exchange their Exchangeable Notes at their option into consideration that consists,at the Issuers election,of cash,ordinary shares of the Company,or a combination of cash and ordinary shares,but only under certain circumstances as set forth in the indenture governing the Exchangeable Notes(the“Indenture”).The circumstances required to allow the noteholders to exchange their Exchangeable Notes were not met during the six months ended June 30,2024.The Exchangeable Notes were not redeemable prior to March 20,2024,except in the event of certain tax law changes as set forth in the Indenture.As of March 20,2024,the Exchangeable Notes are redeemable,in whole or in part,at the Issuers option at any time,and from time to time,and on or before the 40th scheduled trading day immediately before the maturity date,at a cash redemption price equal to the principal amount of the Exchangeable Notes to be redeemed,plus accrued and unpaid special and additional interest,if any,but only if the last reported sale price per ordinary share exceeds 130%of the exchange price on:(1)each of at least 20 trading days,whether or not consecutive,during the 30 consecutive trading days ending on,and including,the trading day immediately before the date the Issuer sends the related redemption notice;and(2)the trading day immediately before the date the Issuer sends such notice.In addition,the Issuer will have the right to redeem all,but not less than all,of the Exchangeable Notes if certain changes in tax law as set forth in the Indenture occur.In addition,calling any Exchangeable Note for redemption will constitute a make-whole fundamental change with respect to that Exchangeable Note,in which case the exchange rate applicable to the exchange of that Exchangeable Note will be increased in certain circumstances if it is exchanged after it is called for redemption.Upon the occurrence of a“fundamental change”as set forth in the Indenture,noteholders may require the Issuer to repurchase their Exchangeable Notes at a cash repurchase price equal to the principal amount of the Exchangeable Notes to be repurchased,plus accrued and unpaid special and additional interest,if any,to,but excluding,the fundamental change repurchase date as set forth in the Indenture.The Group accounted for the Exchangeable Notes at fair value through profit and loss using the fair value option in accordance with IFRS 9,Financial Instruments.The fair value of the Exchangeable Notes as of June 30,2024 was$1,323 million.See Note 19 for information regarding the key inputs and assumptions used to estimate the fair value of the Exchangeable Notes.Table of Contents-18-16.Trade and other payables June 30,2024December 31,2023(in millions)Trade payables 750 662 Value added tax and sales taxes payable 311 291 Other current liabilities 30 25 Total 1,091 978 17.Accrued expenses and other liabilities June 30,2024December 31,2023(in millions)Non-current Other accrued liabilities 11 26 Total 11 26 CurrentAccrued fees to rights holders 1,678 1,826 Accrued salaries,vacation,and related taxes 135 273 Accrued social costs for options and RSUs 152 57 Accrued operating liabilities 134 163 Other accrued expenses 124 121 Total 2,223 2,440 On December 4,2023,the Company announced a reduction in force,through which our employee base was reduced by approximately 17%.As of December 31,2023,we had accrued employee severance costs related to the reduction in force of 136 million included within current accrued expenses and other liabilities.As of June 30,2024,we have substantially settled our obligations related to the reduction in force.18.Provisions LegalcontingenciesIndirect taxOnerous ContractsOtherTotal(in millions)Carrying amount at January 1,2024 11 8 1 4 24 Charged/(credited)to the interim condensed statement of operations:Additional provisions 6 1 7 Utilized (1)(1)Reversal of unutilized amounts(2)(1)(3)Carrying amount at June 30,2024 15 8 4 27 As at January 1,2024Current portion 11 8 1 1 21 Non-current portion 3 3 As at June 30,2024Current portion 15 8 1 24 Non-current portion 3 3 Table of Contents-19-Various legal actions,proceedings,and claims are pending or may be instituted or asserted against the Group.The results of such legal proceedings are difficult to predict and the extent of the Groups financial exposure is difficult to estimate.The Group records a provision for contingent losses when it is both probable that a liability has been incurred,and the amount of the loss can be reasonably estimated.As of April 2019,Spotify USA Inc.s settlement of the Ferrick et al.v.Spotify USA Inc.,No.1:16-cv-8412-AJN(S.D.N.Y.),putative class action lawsuit,which alleged that Spotify USA Inc.unlawfully reproduced and distributed musical compositions without obtaining licenses,was final and effective.Even with the effectiveness of the settlement,we may still be subject to claims of copyright infringement by rights holders who have purported to opt out of the settlement or who may not otherwise be covered by its terms.The Music Modernization Act of 2018 contains a limitation of liability with respect to such lawsuits filed on or after January 1,2018.Rights holders may,nevertheless,file lawsuits,and may argue that they should not be bound by this limitation of liability.For example,in August 2019,the Eight Mile Style,LLC et al v.Spotify USA Inc.,No.3:19-cv-00736-AAT,lawsuit was filed against Spotify USA Inc.in the U.S.District Court for the Middle District of Tennessee,alleging both that Spotify USA Inc.does not qualify for the limitation of liability in the Music Modernization Act and that the limitation of liability is unconstitutional and,thus,not valid law.We intend to vigorously defend this lawsuit,including plaintiffs challenges to the limitation of liability in the Music Modernization Act.19.Financial instrumentsForeign exchange forward contractsCash flow hedgesThe Groups currency pairs used for cash flow hedges are Euro/U.S.dollar,Euro/Australian dollar,Euro/British pound,Euro/Swedish krona,Euro/Canadian dollar,and Euro/Norwegian krone.The notional principal of foreign exchange contracts hedging the revenue and cost of revenue line items in the interim condensed consolidated statement of operations was approximately 1,556 million and 1,002 million,respectively,as of June 30,2024,and approximately 1,414 million and 991 million,respectively,as of December 31,2023.Fair valuesThe carrying amounts of certain financial instruments,including cash and cash equivalents,trade and other receivables,restricted cash,trade and other payables,and accrued expenses and other liabilities approximate fair value due to their relatively short maturities.The Group measures its finance lease receivables as described in Note 7.The carrying amount of our finance lease receivables is considered to approximate their fair value at June 30,2024.Refer to the consolidated financial statements for the year ended December 31,2023 for information regarding the Groups measurement of its lease liabilities.All other financial assets and liabilities are accounted for at fair value.Table of Contents-20-The following tables summarize,by major security type,the Groups financial assets and liabilities that are measured at fair value on a recurring basis,and the category using the fair value hierarchy:Quoted Prices in ActiveMarkets forIdentical Assets(Level 1)Significant OtherObservable Inputs(Level 2)Significant Unobservable Inputs(Level 3)June 30,2024(in millions)Financial assets at fair value Cash equivalents:Money market funds 3,063 3,063 Short term investments:Money market funds 184 184 Government securities 261 7 268 Corporate notes 331 331 Collateralized reverse purchase agreements 448 448 Fixed income funds 113 113 Derivatives(designated for hedging):Foreign exchange forwards 11 11 Long term investments 1,855 76 1,931 Total financial assets at fair value 5,476 797 76 6,349 Financial liabilities at fair valueExchangeable Notes 1,323 1,323 Derivatives(not designated for hedging):Warrants 29 29 Derivatives(designated for hedging):Foreign exchange forwards 18 18 Total financial liabilities at fair value 18 1,352 1,370 Table of Contents-21-Quoted Prices in ActiveMarkets forIdentical Assets(Level 1)Significant OtherObservable Inputs(Level 2)Significant Unobservable Inputs(Level 3)December 31,2023(in millions)Financial assets at fair value Cash equivalents:Money market funds 2,111 2,111 Short term investments:Money market funds 181 181 Government securities 239 8 247 Corporate notes 320 320 Collateralized reverse purchase agreements 241 241 Fixed income funds 111 111 Derivatives(designated for hedging):Foreign exchange forwards 9 9 Long term investments 1,154 61 1,215 Total financial assets at fair value 3,796 578 61 4,435 Financial liabilities at fair valueExchangeable Notes 1,203 1,203 Derivatives(not designated for hedging):Warrants 3 3 Derivatives(designated for hedging):Foreign exchange forwards 14 14 Total financial liabilities at fair value 14 1,206 1,220 The Groups policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of each reporting period.During the six months ended June 30,2024,there were no transfers between levels in the fair value hierarchy.Recurring fair value measurementsLong term investment-Tencent Music Entertainment GroupThe Groups approximate 8%investment in TME is carried at fair value through other comprehensive income/(loss).The fair value of ordinary shares of TME is based on the ending New York Stock Exchange American depository share price.The fair value of the investment in TME may vary over time and is subject to a variety of risks including company performance,macro-economic,regulatory,industry,USD to Euro exchange rate and systemic risks of the equity markets overall.The table below presents the changes in the investment in TME:20242023(in millions)At January 1 1,154 1,094 Changes in fair value recorded in other comprehensive income/(loss)701 (137)At June 30 1,855 957 A 10crease or increase in TMEs share price would have resulted in a fair value of the Groups long term investment in TME ranging from 1,669 million to 2,040 million at June 30,2024.The following sections describe the valuation methodologies the Group uses to measure its Level 3 financial instruments at fair value on a recurring basis.Table of Contents-22-Long term investments-otherThe Group has interests in certain long term investments,the most significant of which is our equity investment in DistroKid,an independent digital music distribution service.These long term investments primarily represent unlisted equity securities carried at fair value through other comprehensive income/(loss).The fair values of these equity investments are generally determined using business enterprise values based on market transactions or by(i)applying market multiples to the projected financial performance and(ii)discounting the future value to its present value equivalent.The key assumptions used to estimate the fair value of these equity investments include market multiples of revenue or earnings before interest,income taxes,depreciation and amortization for benchmark companies used to estimate business enterprise value and discount rate.The fair value of the long term investments may vary over time and is subject to a variety of risks including company performance,macroeconomic,regulatory,industry,USD to Euro exchange rate,and systemic risks of the overall equity markets.The table below presents the changes in the other long term investments:20242023(in millions)At January 1 61 43 Initial recognition of long term investment 1 2 Changes in fair value recorded in other comprehensive income/(loss)12 14 Changes in fair value recognized in interim condensed consolidated statement of operations 2 Return of capital(2)Effect of changes in foreign exchange rates 2 (1)At June 30 76 58 WarrantsAs of June 30,2024 and December 31,2023,the number of outstanding warrants was 800,000.The outstanding warrants are valued using a Black-Scholes option-pricing model.Assumptions used to estimate the fair value of the warrants in the option pricing model are as follows:June 30,2024Expected term(years)0.15 Risk free rate(%)5.47%Volatility(%)35%Share price(US$)313.79 The table below presents the changes in the warrants liability:20242023(in millions)At January 1 3 1 Changes in fair value recognized in interim condensed consolidated statement of operations 25 6 Effect of changes in foreign exchange rates 1 At June 30 29 7 A 10crease or increase in the Companys ordinary share price would have resulted in a fair value of the warrants ranging from 13 million to 50 million at June 30,2024.Table of Contents-23-Exchangeable NotesThe table below presents the changes in the Exchangeable Notes:20242023(in millions)At January 1 1,203 1,128 Changes in fair value recognized in interim condensed consolidated statement of operations 78 48 Changes in fair value recorded in other comprehensive income/(loss)5 14 Effect of changes in foreign exchange rates 37 (23)At June 30 1,323 1,167 The change in estimated fair value is recognized within finance income/(costs)-net in the interim condensed consolidated statement of operations,excluding changes in fair value due to changes in the Groups own credit risk,which are recognized in other comprehensive income/(loss)and will not be reclassified to the interim condensed consolidated statement of operations.The fair value of the Exchangeable Notes was estimated using a combination of a binomial option pricing model and prices observed for the Exchangeable Notes in an over-the-counter market on the last trading day of the reporting period.A weight of 75%was applied to the binomial option pricing model and a weight of 25%was applied to the price of the Exchangeable Notes in the over-the-counter market on the last trading day of the reporting period.The key assumptions used in the binomial option pricing model for the Exchangeable Notes were as follows:June 30,2024Risk free rate(%)4.82%Discount rate(%)6.84%Volatility(%)40%Share price(US$)313.79A decrease or increase of 10 percentage points in volatility would have resulted in a fair value of the Exchangeable Notes ranging from 1,295 million to 1,354 million at June 30,2024.A 10crease or increase in the Companys ordinary share price would have resulted in a fair value of the Exchangeable Notes ranging from 1,305 million to 1,345 million at June 30,2024.A decrease or increase of 100 basis points in credit spread would have resulted in a fair value of the Exchangeable Notes ranging from 1,336 million to 1,310 million at June 30,2024.20.Segment informationThe Group has two reportable segments:Premium and Ad-Supported.Revenue for the Premium segment is generated primarily through subscription fees.Revenue for the Ad-Supported segment is primarily generated through the sale of advertising across the Groups music and podcast content.Royalty costs are primarily recorded in each segment based on specific rates for each segment agreed to with rights holders.All podcast content costs are recorded in the Ad-Supported segment.The costs of providing audiobook content as part of the Premium subscription are recorded in the Premium segment.The remaining costs that are not specifically associated to either of the segments are allocated based on user activity or the revenue recognized in each segment.No operating segments have been aggregated to form the reportable segments.Table of Contents-24-Key financial performance measures of the segments including revenue,cost of revenue,and gross profit are as follows:Three months ended June 30,Six months ended June 30,2024202320242023(in millions)Premium Revenue 3,351 2,773 6,598 5,486 Cost of revenue 2,300 1,984 4,568 3,921 Gross profit 1,051 789 2,030 1,565 Ad-SupportedRevenue 456 404 845 733 Cost of revenue 395 427 759 766 Gross profit/(loss)61 (23)86 (33)ConsolidatedRevenue 3,807 3,177 7,443 6,219 Cost of revenue 2,695 2,411 5,327 4,687 Gross profit 1,112 766 2,116 1,532 Reconciliation of segment gross profitOperating expenses,finance income,and finance costs are not allocated to individual segments as these are managed on an overall Group basis.The reconciliation between reportable segment gross profit to the Groups income/(loss)before tax is as follows:Three months ended June 30,Six months ended June 30,2024202320242023(in millions)Segment gross profit 1,112 766 2,116 1,532 Research and development(379)(453)(768)(888)Sales and marketing(343)(399)(667)(746)General and administrative(124)(161)(247)(301)Finance income 76 33 135 60 Finance costs(72)(27)(125)(104)Income/(loss)before tax 270 (241)444 (447)Revenue by country Three months ended June 30,Six months ended June 30,2024202320242023(in millions)United States 1,469 1,251 2,862 2,439 United Kingdom 356 293 693 575 Luxembourg 2 2 5 4 Other countries 1,980 1,631 3,883 3,201 Total 3,807 3,177 7,443 6,219 Premium revenue is attributed to a country based on where the membership originates.Ad-Supported revenue is attributed to a country based on where the advertising campaign is delivered.There are no countries that individually make up greater than 10%of total revenue included in“Other countries.”Table of Contents-25-21.Commitments and contingenciesCommitmentsThe Group is subject to the following minimum guarantees relating to the content on its Service,the majority of which relate to minimum royalty payments associated with its license agreements for the use of licensed content:June 30,2024December 31,2023(in millions)Not later than one year 590 1,055 Later than one year but not more than five years 2,196 3,610 2,786 4,665 In addition,the Group is subject to various non-cancelable purchase obligations and service agreements with minimum spend commitments,including a service agreement with Google for the use of Google Cloud Platform and certain podcast and marketing commitments:June 30,2024December 31,2023(in millions)Not later than one year 292 453 Later than one year but not more than five years 1,463 1,369 More than five years 75 83 1,830 1,905 ContingenciesVarious legal actions,proceedings,and claims are pending or may be instituted or asserted against the Group.These may include,but are not limited to,matters relating to intellectual property,data protection,consumer protection,employment,and contractual rights.As a general matter,the music and other content made available on the Groups Service are licensed to the Group by various third parties.Many of these licenses allow rights holders or other authorized parties to audit the Groups royalty payments,and any such audit could result in disputes over whether the Group has paid the proper royalties.If such a dispute were to occur,the Group could be required to pay additional royalties,and the amounts involved could be material.The Group expenses legal fees as incurred.The Group records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.An unfavorable outcome to any legal matter,if material,could have an adverse effect on the Groups operations or its financial position,liquidity,or results of operations.On May 16,2024,the Mechanical Licensing Collective(“MLC”),an entity designated to administer a blanket compulsory license available under U.S.law,filed a lawsuit against Spotify USA Inc.in the U.S.District Court for the Southern District of New York(Mechanical Licensing Collective v.Spotify USA Inc.,No.1:24-cv-03809),alleging that beginning with its March 2024 reporting,Spotify USA Inc.improperly reported and underpaid royalties for its Premium Service as a bundle that includes a specified monthly allocation of audiobook access.If the MLC were entirely successful in this case,the additional royalties that would be due in relation to the period March 1,2024 to June 30,2024 would be approximately 46 million,of which approximately 35 million relates to the three months ended June 30,2024,plus potentially penalties and interest,which we cannot reasonably estimate.We intend to vigorously defend this lawsuit.Table of Contents-26-Item 2.Managements Discussion and Analysis of Financial Condition and Results of OperationsSpecial Note Regarding Forward-Looking StatementsThis discussion and analysis reflects our historical results of operations and financial position and contains estimates and forward-looking statements.All statements other than statements of historical fact are forward-looking statements.The words“may,”“might,”“will,”“could,”“would,”“should,”“expect,”“plan,”“anticipate,”“intend,”“seek,”“believe,”“estimate,”“predict,”“potential,”“continue,”“contemplate,”“possible,”and similar words are intended to identify estimates and forward-looking statements.Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends,which affect or may affect our businesses and operations.Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions,they are subject to numerous risks and uncertainties and are made in light of information currently available to us.Many important factors may adversely affect our results as indicated in forward-looking statements.These factors include,but are not limited to:our ability to attract prospective users,retain existing users,and monetize our products and services;competition for users,user listening time,and advertisers;risks associated with our international operations and our ability to manage our growth and the scope and complexity of our business;risks associated with our new products or services and our emphasis on long-term user engagement over short-term results;our ability to predict,recommend,and play content that our users enjoy;our ability to generate profit or positive cash flow on a sustained basis;our ability to convince advertisers of the benefits of our advertising offerings;our ability to forecast or optimize advertising inventory amid evolving industry trends in digital advertising;our ability to generate revenues from podcasts,audiobooks,and other non-music content;potential disputes or liabilities associated with content made available on our Service(as defined above);risks relating to acquisitions,investments,and divestitures;our dependence upon third-party licenses for most of the content we stream;our lack of control over third-party content providers who are concentrated and can unilaterally affect our access to content;our ability to comply with complex license agreements;our ability to accurately estimate royalty payments under our license agreements and relevant statutes;the limitations on our operating flexibility due to financial commitments required under certain of our license agreements;our ability to identify the compositions embodied in sound recordings and ownership thereof in order to obtain licenses or comply with existing license agreements;assertions by third parties of infringement or other violations by us of their intellectual property rights;our ability to protect our intellectual property;the dependence of streaming on operating systems,online platforms,hardware,networks,regulations,and standards that we do not control;our ability to maintain the integrity of our technology infrastructure and systems or the security of confidential information;undetected errors,misconfigurations,bugs,or vulnerabilities in our products;interruptions,delays,or discontinuations in service arising from our systems or systems of third parties;changes in laws or regulations affecting us;risks relating to privacy and data security,content moderation,and use of artificial intelligence;our ability to maintain,protect,and enhance our brand;risks associated with increased scrutiny of environmental,social,and governance matters;payment acceptance-related risks;our dependence on key personnel and ability to attract,retain,and motivate highly skilled employees;our ability to access additional capital to support strategic objectives;risks relating to currency exchange rate fluctuations and foreign exchange controls;the impact of economic,social,or political conditions,including inflation,changes in interest rates,geopolitical conflicts in Europe and the Middle East,and related market uncertainty;our ability to accurately estimate user metrics and other estimates;our ability to manage and remediate attempts to manipulate streams and attempts to gain or provide unauthorized access to certain features of our Service;Table of Contents-27-risks related to our indebtedness,including risks related to our Exchangeable Notes;fluctuation of our operating results and fair market value of ordinary shares;tax-related risks;the concentration of voting power among our founders,which limits shareholders ability to influence our governance and business;andrisks related to our status as a foreign private issuer and a Luxembourg company.We operate in an evolving environment.New risk factors and uncertainties emerge from time to time,and it is not possible for our management to predict all risk factors and uncertainties,nor are we able to assess the impact of all of these risk factors on our business or the extent to which any risk factor,or combination of risk factors,may cause actual results to differ materially from those contained in any forward-looking statements.We qualify all of our forward-looking statements by these cautionary statements.For additional information,refer to the risk factors discussed under Part I,Item 3.D.“Risk Factors”in our Annual Report on Form 20-F for the year ended December 31,2023(“Annual Report on Form 20-F”)and in our other filings with the U.S.Securities and Exchange Commission(“SEC”).You should read this discussion and analysis completely and with the understanding that our actual future results may be materially different from our expectations.Investors and others should note that we announce material financial information to our investors using our Investors website(),SEC filings,press releases,public conference calls,and webcasts.We use these channels,as well as social media,to communicate with our users and the public about our company,our Service,and other issues.It is possible that the information we post on these channels could be deemed to be material information.Therefore,we encourage investors,the media,and others interested in our Company to review the information we post on the channels listed on our Investors website.OverviewOur mission is to unlock the potential of human creativity by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it.We are the worlds most popular audio streaming subscription service.With a presence in 184 countries and territories,our platform includes 626 million monthly active users(“MAUs”),including 246 million Premium Subscribers(as defined below)as of June 30,2024.We currently monetize our Service primarily through both subscriptions and advertising.Our Premium Subscribers have grown 12%year-over-year,as of June 30,2024,to 246 million.Our 626 million MAUs have grown 14%year-over-year,as of June 30,2024.Our results reflect the effects of our trial programs,both discounted and free trials,in addition to seasonal trends in user behavior and,with respect to our Ad-Supported segment,advertising behavior.Historically,Premium Subscriber growth accelerates when we run such trial programs.For our Ad-Supported segment,typically we experience higher advertising revenue in the fourth quarter of each calendar year due to greater advertising demand during the holiday season.However,in the first quarter of each calendar year,we typically experience a seasonal decline in advertising revenue due to reduced advertiser demand.AudiobooksOn April 2,2024,the Company announced the launch of audiobooks on our Premium Service in three additional markets:Canada,Ireland,and New Zealand,offering up to 15 hours of access a month to more than 250,000 audiobooks.Audiobooks are available for eligible Premium Subscribers in the U.S.,U.K.,Australia,Canada,Ireland,and New Zealand.On March 1,2024,the Company announced the launch of Audiobooks Access Tier in the U.S.,offering Ad-Supported Users a subscription for 15 hours of access a month to more than 250,000 audiobooks.During the second quarter of 2024,the Company announced the launch of a Basic plan in the U.K.,Australia,and U.S,offering the benefits of the Premium Service without the monthly audiobook listening time.Current macroeconomic environmentThe global macroeconomic environment continues to be uncertain,reflecting the impacts of inflation,changes in interest rates,continued geopolitical conflicts in Europe and the Middle East,and related market uncertainty.We will continue to actively monitor and respond accordingly to the macroeconomic environment.Table of Contents-28-For additional information,refer to Part I,Item 3.D.“Risk Factors”in our Annual Report on Form 20-F.Key Performance IndicatorsWe use certain key performance indicators to monitor and manage our business.We use these indicators to evaluate our business,measure our performance,identify trends affecting our business,formulate business plans,and make strategic decisions.We believe these indicators provide useful information to investors in understanding and evaluating our operating results in the same manner we do.MAUsWe track MAUs as an indicator of the size of the audience engaged with our Service.We define MAUs as the total count of Ad-Supported Users and Premium Subscribers that have consumed content for greater than zero milliseconds in the last thirty days from the period-end indicated.Reported MAUs may overstate the number of unique individuals who actively use our Service within a thirty-day period as one individual may register for,and use,multiple accounts.Additionally,though we strive to detect and minimize non-bona fide accounts that may typically be created in an attempt to artificially stream content,they may contribute,from time to time,to an overstatement in our reported MAUs.Our MAUs in the tables below are inclusive of Ad-Supported Users who may have employed methods to limit or otherwise avoid being served advertisements.For additional information,refer to the risk factors discussed under Part I,Item 3.D.“Risk Factors”in our Annual Report on Form 20-F,and in our other filings with the SEC.The table below sets forth our MAUs as of June 30,2024 and 2023.As of June 30 20242023Change(in millions,except percentages)MAUs 626 551 75 14%MAUs were 626 million as of June 30,2024 and 551 million as of June 30,2023,which represented an increase of 14%.MAUs benefited from our continued investment in driving the growth of our Service through successful consumer marketing campaigns,enhanced content offerings,and product enhancements,resulting in continued user engagement and customer satisfaction.Premium SubscribersWe define Premium Subscribers as users that have completed registration with Spotify and have activated a payment method for Premium Service and other subscription offerings(collectively,“Subscription Offerings”).Our Premium Subscribers include all registered accounts in our Family Plan and Duo Plan.Our Family Plan consists of one primary subscriber and up to five additional sub-accounts,allowing up to six Premium Subscribers per Family Plan Subscription.Our Duo Plan consists of one primary subscriber and up to one additional sub-account,allowing up to two Premium Subscribers per Duo Plan Subscription.Premium Subscribers include subscribers in a grace period of up to 30 days after failing to pay their subscription fee.The table below sets forth our Premium Subscribers as of June 30,2024 and 2023.As of June 30 20242023Change(in millions,except percentages)Premium Subscribers 246 220 26 12%Premium Subscribers were 246 million as of June 30,2024 and 220 million as of June 30,2023,which represented an increase of 12%.Our Family Plan and Duo Plan were meaningful contributors of total gross additions in Premium Subscribers,while our free trial offers and global campaigns also accounted for a significant portion of gross additions in Premium Subscribers.Ad-Supported MAUsWe define Ad-Supported MAUs as the total count of Ad-Supported Users that have consumed content for greater than zero milliseconds in the last thirty days from the period-end indicated.Table of Contents-29-The table below sets forth our Ad-Supported MAUs as of June 30,2024 and 2023.As of June 30 20242023Change(in millions,except percentages)Ad-Supported MAUs 393 343 50 15-Supported MAUs were 393 million as of June 30,2024 and 343 million as of June 30,2023,which represented an increase of 15%.Ad-Supported MAUs benefited from our continued investment in driving the growth of our Ad-Supported Service through successful consumer marketing campaigns,enhanced content offerings,and product enhancements,resulting in continued Ad-Supported User engagement and customer satisfaction.Premium ARPUPremium average revenue per user(“ARPU”)is a monthly measure defined as Premium subscription revenue recognized in the quarter indicated divided by the average daily Premium Subscribers in such quarter,which is then divided by three months.Fiscal year-to-date figures are calculated by averaging Premium ARPU for the quarters in such period.The table below sets forth our average Premium ARPU for the three and six months ended June 30,2024 and 2023.Three months ended June 30,Six months ended June 30,20242023Change20242023ChangePremium ARPU 4.62 4.27 0.35 8%4.59 4.30 0.29 7%For the three months ended June 30,2024 and 2023,Premium ARPU was 4.62 and 4.27,respectively,which represented an increase of 8%.This increase of 0.35 is primarily attributable to price increases,resulting in a 0.52 increase in Premium ARPU.This increase was partially offset by changes in product and market mix,decreasing ARPU by 0.11,and unfavorable movements in foreign exchange rates,decreasing Premium ARPU by 0.06.For the six months ended June 30,2024 and 2023,Premium ARPU was 4.59 and 4.30,respectively,which represented an increase of 7%.The increase of 0.29 is primarily attributable to price increases,resulting in a 0.48 increase in Premium ARPU.This increase was partially offset by changes in product and market mix,decreasing ARPU by 0.13,and unfavorable movements in foreign exchange rates,decreasing Premium ARPU by 0.06.How We Generate RevenueWe operate and manage our business in two reportable segments-Premium and Ad-Supported.We identify our reportable segments based on the organizational units used by the chief operating decision maker to monitor performance and make operating decisions.See Note 20 to our interim condensed consolidated financial statements for additional information regarding our reportable segments.PremiumWe generate revenue for our Premium segment through the sale of subscriptions to the Subscription Offerings.The Subscription Offerings are primarily sold directly to end users.The Premium Service is also sold through partners who are generally telecommunications companies that bundle the subscription with their own services or collect payment for the stand-alone subscriptions from their end customers.Premium partner subscription revenue is based on a per-subscriber rate in a negotiated partner agreement.We also bundle the Premium Service with other services and products.Ad-SupportedWe generate revenue for our Ad-Supported segment primarily from the sale of display,audio,and video advertising delivered through advertising impressions across our music and podcast content.We generally enter into arrangements with advertising agencies that purchase advertising on behalf of their clients and we also enter into arrangements directly with some large advertisers.These advertising arrangements are typically sold on a cost-per-thousand impressions(“CPM”)basis and are evidenced by an insertion order that specifies the terms of the arrangement such as the type of advertising product,pricing,insertion dates,and number of impressions or downloads in a stated period.Additionally,we generate revenue through arrangements with certain advertising automated exchanges,internal self-serve,and advertising marketplace platforms to distribute advertising inventory for purchase on a CPM basis.Table of Contents-30-Components of our Operating ResultsCost of revenue.Cost of revenue consists predominantly of royalty and distribution costs related to content streaming.We incur royalty costs,which we pay to certain record labels,music publishers,and other rights holders,for the right to stream content to our users.Music royalties are typically calculated monthly based on the combination of a number of different variables.Generally,Subscription Offering music royalties are based on the greater of a percentage of revenue and a per user amount.Music royalties for the Ad-Supported Service are typically a percentage of relevant revenue,although certain agreements are based on the greater of a percentage of relevant revenue and an amount for each time a track is streamed.We have negotiated lower per user amounts for our lower priced subscription plans such as our Family Plan,Duo Plan,and Student Plan.In our agreements with certain record labels,the percentage of revenue used in the calculation of royalties is generally dependent upon certain targets being met.The targets can include such measures as the number of applicable Premium Subscribers,the ratio of Ad-Supported Users to applicable Premium Subscribers,and/or the rates of applicable Premium Subscriber churn.In addition,royalty rates vary by country.Some of our royalty agreements require that royalty costs be paid in advance or are subject to minimum guaranteed amounts.For the majority of royalty agreements,incremental costs incurred due to unrecouped advances and minimum guarantees have not been significant to date.We also have certain so-called most favored nation royalty agreements,which require us to record additional costs if certain material contract terms are not as favorable as the terms we have agreed to with similar licensors.Cost of revenue also reflects discounts provided by certain rights holders in return for promotional activities in connection with marketplace programs.Additionally,it includes the costs of discounted trials.Royalties payable in relation to audiobook licenses are generally consumption based.Cost of revenue also includes the cost of podcast content assets(both produced and licensed).Amortization of podcast content assets is recorded over the shorter of the estimated useful economic life or the license period(if relevant)and begins at the release of each episode.We make payments to podcast publishers,whose content we monetize through advertising sales in the Spotify Audience Network(“SPAN”),which are also included in cost of revenue.Cost of revenue also includes credit card and payment processing fees for subscription revenue,advertising serving,advertising measurement,customer service,certain employee compensation and benefits,cloud computing,streaming,facility,and equipment costs.Research and Development.We invest heavily in research and development in order to drive user engagement and customer satisfaction on our platform,which we believe helps drive organic growth in MAUs,which,in turn,drives additional growth in,and better retention of,Premium Subscribers,as well as increased advertising opportunities to our users.We aim to design products and features that create and enhance user experiences,and new technologies are at the core of many of these opportunities.Expenses primarily comprise costs incurred for the development of products related to our platform and Service,as well as new advertising products and improvements to our mobile application and desktop application and streaming services.The costs incurred include related facility costs,consulting costs,and employee compensation and benefits costs.We expect engineers to represent a significant portion of our employees over the foreseeable future.Many of our new products and improvements to our platform require large investments and involve substantial time and risks to develop and launch.Some of these products may not be well received or may take a long time for users to adopt.As a result,the benefits of our research and development investments are difficult to forecast.Sales and Marketing.Sales and marketing expenses primarily comprise employee compensation and benefits,public relations,branding,consulting expenses,customer acquisition costs,advertising,marketing events and trade shows,amortization of trade name intangible assets,the cost of working with content creators and rights holders to promote the availability of new releases on our platform,and the costs of providing free trials.Expenses included in the cost of providing free trials are derived primarily from per user royalty fees determined in accordance with the rights holder agreements.General and Administrative.General and administrative expenses primarily comprise employee compensation and benefits for functions such as finance,accounting,analytics,legal,human resources,consulting fees,and other costs including facility and equipment costs,directors and officers liability insurance,and director fees.Table of Contents-31-Results of OperationsRevenueThree months ended June 30,Six months ended June 30,20242023Change20242023Change(in millions,except percentages)Premium 3,351 2,773 578 21%6,598 5,486 1,112 20-Supported 456 404 52 135 733 112 15%Total 3,807 3,177 630 20%7,443 6,219 1,224 20%Premium revenueFor the three months ended June 30,2024 and 2023,Premium revenue comprised 88%and 87%of our total revenue,respectively.For the three months ended June 30,2024 as compared to the three months ended June 30,2023,Premium revenue increased 578 million,or 21%.The increase was due primarily to an increase in the number of Premium Subscribers and an increase in Premium ARPU,as noted above.For the six months ended June 30,2024 and 2023,Premium revenue comprised 89%and 88%of our total revenue,respectively.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,Premium revenue increased 1,112 million,or 20%.The increase was due primarily to an increase in the number of Premium Subscribers and an increase in Premium ARPU,as noted above.Ad-Supported revenueFor the three months ended June 30,2024 and 2023,Ad-Supported revenue comprised 12%and 13%of our total revenue,respectively.For the three months ended June 30,2024 as compared to the three months ended June 30,2023,Ad-Supported revenue increased 52 million,or 13%.This increase was due primarily to growth in music impressions sold and CPM,which increased revenue in our direct and programmatic channels by 29 million.Ad sales from podcasts,supported by growth in podcast impressions sold,and our self-serve platform,also increased revenue by 16 million during the three months ended June 30,2024.For the six months ended June 30,2024 and 2023,Ad-Supported revenue comprised 11%and 12%of our total revenue,respectively.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,Ad-Supported revenue increased 112 million,or 15%.The increase was due primarily to growth in music impressions sold and CPM,which increased revenue in our direct and programmatic channels by 68 million.Ad sales from podcasts,supported by growth in podcast impressions sold,and our self-serve platform,also increased revenue by 42 million during the six months ended June 30,2024.Foreign exchange impact on total revenueThe general movement of the Euro relative to certain foreign currencies,as well as movement in the Argentine Peso,for the three and six months ended June 30,2024,as compared to the same period in 2023,had an unfavorable net impact on our revenue.We estimate that total revenue for the three and six months ended June 30,2024 would have been approximately 41 million and 94 million higher,respectively,if foreign exchange rates had remained consistent with foreign exchange rates for the comparable period in 2023.Cost of revenueThree months ended June 30,Six months ended June 30,20242023Change20242023Change(in millions,except percentages)Premium 2,300 1,984 316 16%4,568 3,921 647 17-Supported 395 427 (32)(7)u9 766 (7)(1)%Total 2,695 2,411 284 12%5,327 4,687 640 14%Table of Contents-32-Premium cost of revenueFor the three months ended June 30,2024 as compared to the three months ended June 30,2023,Premium cost of revenue increased 316 million,or 16%,and Premium cost of revenue as a percentage of Premium revenue decreased from 72%to 69%.The increase in Premium cost of revenue was driven primarily by increases in Premium revenue as well as audiobook licensing costs,partially offset by benefits from certain marketplace programs.These collectively resulted in an increase in content costs of 314 million.Additionally,there was an increase in payment processing fees of 13 million during the three months ended June 30,2024.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,Premium cost of revenue increased 647 million,or 17%,and Premium cost of revenue as a percentage of Premium revenue decreased from 71%to 69%.The increase in Premium cost of revenue was driven primarily by increases in Premium revenue as well as audiobook licensing costs,partially offset by benefits from certain marketplace programs.These collectively resulted in an increase in content costs of 657 million.Additionally,there was an increase in payment processing fees of 24 million during the six months ended June 30,2024.Ad-Supported cost of revenueFor the three months ended June 30,2024 as compared to the three months ended June 30,2023,Ad-Supported cost of revenue decreased 32 million,or 7%,and Ad-Supported cost of revenue as a percentage of Ad-Supported revenue decreased from 106%to 87%.The three months ended June 30,2023 included a 46 million charge for strategic realignment and reorganization costs relating to the write-off of content assets,contract termination and other related costs,and employee severance for which there were no material comparable reorganization charges during the three months ended June 30,2024.Cost of revenue for the three months ended June 30,2024 also benefited from a decrease of 11 million primarily related to a reduction in podcast production and personnel costs.These cost reductions were partially offset by higher royalty costs of 17 million due to growth in both advertising revenue and the volume of streams,offset by growth in certain marketplace programs during the three months ended June 30,2024.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,Ad-Supported cost of revenue decreased 7 million,or 1%,and Ad-Supported cost of revenue as a percentage of Ad-Supported revenue decreased from 105%to 90%.The six months ended June 30,2023 included 46 million of strategic realignment and reorganization costs relating to the write-off of content assets,contract termination and other related costs,and employee severance for which there were no material comparable reorganization charges during the six months ended June 30,2024.Cost of revenue for the six months ended June 30,2024 also benefited from a decrease of 13 million primarily related to a reduction in podcast and personnel costs.These cost reductions were partially offset by an increase in royalty costs of 45 million due to growth in both advertising revenue and the volume of streams,partially offset by benefits from certain marketplace programs during the six months ended June 30,2024.Foreign exchange impact on total cost of revenueThe general movement of the Euro relative to certain foreign currencies,as well as movement in the Argentine Peso,for the three and six months ended June 30,2024,as compared to the same period in 2023,had a favorable net impact on our cost of revenue.We estimate that total cost of revenue for the three and six months ended June 30,2024 would have been approximately 30 million and 71 million higher,respectively,if foreign exchange rates had remained consistent with foreign exchange rates for the comparable period in 2023.Table of Contents-33-Gross profit/(loss)and gross marginThree months ended June 30,Six months ended June 30,20242023Change20242023Change(in millions,except percentages)Gross profit/(loss)Premium 1,051 789 262 33%2,030 1,565 465 30-Supported 61 (23)84 N/M*86 (33)119 N/M*Consolidated 1,112 766 346 45%2,116 1,532 584 38%Gross marginPremium 31(1)-Supported 13%(6)%(5)%Consolidated 29$(%*Percentage change is not meaningful for presentation purposes.Premium gross profit and gross marginFor the three months ended June 30,2024 as compared to the three months ended June 30,2023,Premium gross profit increased by 262 million,and Premium gross margin increased from 28%to 31%.Premium gross margin increased due primarily to revenue growth outpacing music royalty costs and streaming delivery costs,and benefits from certain marketplace programs,partially offset by increases in audiobook licensing costs during the three months ended June 30,2024.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,Premium gross profit increased by 465 million,and Premium gross margin increased from 29%to 31%.Premium gross margin increased due primarily to revenue growth outpacing music royalty costs,benefits from certain marketplace programs,and reduced streaming delivery costs,partially offset by increases in audiobook licensing costs during the six months ended June 30,2024.Ad-Supported gross profit/(loss)and gross marginFor the three months ended June 30,2024 as compared to the three months ended June 30,2023,Ad-Supported gross profit increased by 84 million,and gross margin increased from(6)%to 13%.The increase in Ad-Supported gross margin was due primarily to a reduction in strategic realignment and reorganization charges relating to the write-off of content assets,contract termination and other related costs,and employee severance during the three months ended June 30,2023,for which there were no material comparable reorganization charges during the three months ended June 30,2024.Ad-supported gross margin also increased due to revenue growth outpacing the growth in content costs during the three months ended June 30,2024.For the six months ended June 30,2024,as compared to the six months ended June 30,2023,Ad-Supported gross profit increased by 119 million,and gross margin increased from(5)%to 10%.The increase in Ad-Supported gross margin was due primarily to a reduction in strategic realignment and reorganization charges relating to the write-off of content assets,contract termination and other related costs,and employee severance during the six months ended June 30,2023,for which there were no material comparable reorganization charges during the six months ended June 30,2024.Ad-supported gross margin also increased due to revenue growth outpacing the growth in content costs during the six months ended June 30,2024.Consolidated Operating ExpensesResearch and developmentThree months ended June 30,Six months ended June 30,20242023Change20242023Change(in millions,except percentages)Research and development 379 453 (74)(16)v8 888 (120)(14)%As a percentage of revenue 10%For the three months ended June 30,2024 as compared to the three months ended June 30,2023,research and development costs decreased by 74 million,or 16%.The decrease was due primarily to a decrease in personnel-related costs of 43 million that included salaries,share-based compensation,and other employee benefits as a result of decreased headcount.There was also a decrease in impairment charges on real estate assets of 38 million.Additionally,there was a decrease of 7 Table of Contents-34-million related to depreciation of real-estate assets and other facilities costs.These decreases were partially offset by an increase of 23 million in social costs due primarily to changes in share price movements.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,research and development costs decreased 120 million,or 14%.The decrease was due primarily to a decrease in personnel-related costs of 119 million that included salaries,share-based compensation,and other employee benefits as a result of decreased headcount.There was also a decrease in impairment charges on real estate assets of 36 million.Additionally,there was a decrease of 10 million related to depreciation of real-estate assets and other facilities costs and a decrease of 8 million in costs for external contractors.These decreases were partially offset by an increase of 71 million in social costs due primarily to changes in share price movements.Sales and marketingThree months ended June 30,Six months ended June 30,20242023Change20242023Change(in millions,except percentages)Sales and marketing 343 399 (56)(14)f7 746 (79)(11)%As a percentage of revenue 9%9%For the three months ended June 30,2024 as compared to the three months ended June 30,2023,sales and marketing expense decreased by 56 million,or 14%.The decrease was due primarily to a decrease in impairment charges on real estate assets of 17 million.There was also a decrease in advertising costs of 15 million and a decrease in personnel-related costs of 14 million that included salaries and share-based compensation as a result of decreased headcount.These decreases were partially offset by an increase of 5 million in social costs due primarily to changes in share price movements.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,sales and marketing expense decreased by 79 million,or 11%.The decrease was due primarily to decrease in personnel-related costs of 32 million that included salaries and share-based compensation as a result of decreased headcount and a decrease in advertising costs of 30 million.There was also a decrease in impairment charges on real-estate assets of 16 million.These decreases were partially offset by an increase of 18 million in social costs due primarily to changes in share price movements.General and administrativeThree months ended June 30,Six months ended June 30,20242023Change20242023Change(in millions,except percentages)General and administrative 124 161 (37)(23)$7 301 (54)(18)%As a percentage of revenue 3%5%3%5%For the three months ended June 30,2024 as compared to the three months ended June 30,2023,general and administrative expense decreased by 37 million,or 23%.The decrease was due primarily to a decrease in impairment charges on real estate assets of 15 million.There was also a decrease in personnel-related costs of 14 million that included salaries and other employee benefits as a result of decreased headcount.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,general and administrative expense decreased by 54 million,or 18%.The decrease was due primarily to a decrease in personnel-related costs of 39 million that included salaries,share-based compensation,and other employee benefits as a result of decreased headcount.There was also a decrease in impairment charges on real estate assets of 14 million.Table of Contents-35-Finance incomeFinance income consists of fair value adjustment gains on certain financial instruments,interest income earned on our cash and cash equivalents and short term investments,interest income on our finance lease receivables,dividends received on our long term investment,and foreign currency gains.Three months ended June 30,Six months ended June 30,20242023Change20242023Change(in millions,except percentages)Finance income 76 33 43 1305 60 75 125%As a percentage of revenue 2%1%2%1%For the three months ended June 30,2024 as compared to the three months ended June 30,2023,finance income increased 43 million due primarily to an increase in interest income of 22 million.Finance income for the three months ended June 30,2024 also included 18 million of dividend income with no such activity recognized during the three months ended June 30,2023.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,finance income increased 75 million.The increase was due primarily to an increase in interest income of 41 million.Finance income for the six months ended June 30,2024 also included 18 million of dividend income with no such activity recognized during the six months ended June 30,2023.Additionally,finance income for the six months ended June 30,2024 included 8 million of foreign exchange gains on the remeasurement of monetary assets and liabilities in a transaction currency other than the functional currency,with no such activity recognized within finance income during the six months ended June 30,2023.Finance costsFinance costs consist of fair value adjustment losses on certain financial instruments,interest expense,and foreign currency losses.Three months ended June 30,Six months ended June 30,20242023Change20242023Change(in millions,except percentages)Finance costs(72)(27)(45)167%(125)(104)(21)20%As a percentage of revenue(2)%(1)%(2)%(2)%For the three months ended June 30,2024 as compared to the three months ended June 30,2023,finance costs increased 45 million.The increase was due primarily to an increase in fair value movements on the Exchangeable Notes of 38 million.There was also an increase in fair value movements on the warrants of 18 million.Finance costs for the three months ended June 30,2023 included 10 million in foreign exchange losses on the remeasurement of monetary assets and liabilities in a transaction currency other than the functional currency,with no such activity recognized within finance costs during the three months ended June 30,2024.For the six months ended June 30,2024 as compared to the six months ended June 30,2023,finance costs increased 21 million.The increase was due primarily to an increase in fair value movements on the Exchangeable Notes of 30 million.There was also an increase in fair value movements on the warrants of 19 million.Finance costs for the six months ended June 30,2023 included 23 million in foreign exchange losses on the remeasurement of monetary assets and liabilities in a transaction currency other than the functional currency,with no such activity recognized within finance costs during the six months ended June 30,2024.Table of Contents-36-Income tax(benefit)/expense Three months ended June 30,Six months ended June 30,20242023Change20242023Change(in millions,except percentages)Income tax(benefit)/expense(4)61 (65)(107)%(27)80 (107)(134)%As a percentage of revenue%2%1%For the three months ended June 30,2024,the income tax benefit of 4 million was due primarily to the recognition of deferred tax assets as a result of the increase in the unrealized gain on the Groups long-term investment in Tencent Music Entertainment Group(“TME”)of 53 million,offset by 38 million of income tax expense which arose because the excess tax benefit of share-based compensation deductions was recognized in equity and 10 million of income taxes payable associated with entities in a taxable profit position.For the three months ended June 30,2023,the income tax expense of 61 million was due primarily to 26 million of deferred tax expense related to the derecognition of deferred tax assets as a result of the decrease in unrealized gain on the Groups long-term investment in TME,17 million of income tax expense which arose because the excess tax benefit of share-based compensation deductions was recognized in equity,as well as 12 million of income taxes payable associated with entities in a taxable profit position.For the six months ended June 30,2024,the income tax benefit of 27 million was due primarily to the recognition of deferred tax assets as a result of the increase in unrealized gain on the Groups long-term investment in TME of 117 million,offset by 64 million of income tax expense which arose because the excess tax benefit of share-based compensation deductions was recognized in equity and 16 million of income taxes payable associated with entities in a taxable profit position.For the six months ended
2024-08-06
47页
5星级
UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549FORM 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June 15,2024(24 weeks)ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from to Commission file number 1-1183 PepsiCo,Inc.(Exact Name of Registrant as Specified in its Charter)North Carolina13-1584302(State or Other Jurisdiction ofIncorporation or Organization)(I.R.S.EmployerIdentification No.)700 Anderson Hill Road,Purchase,New York 10577(Address of principal executive offices and Zip Code)(914)253-2000 Registrants telephone number,including area codeN/A(Former Name,Former Address and Former Fiscal Year,if Changed Since Last Report)Securities registered pursuant to Section 12(b)of the Securities Exchange Act of 1934:Title of each classTrading SymbolsName of each exchange on which registeredCommon Stock,par value 1-2/3 cents per sharePEPThe Nasdaq Stock Market LLC2.625%Senior Notes Due 2026PEP26The Nasdaq Stock Market LLC0.750%Senior Notes Due 2027PEP27The Nasdaq Stock Market LLC0.875%Senior Notes Due 2028PEP28The Nasdaq Stock Market LLC0.500%Senior Notes Due 2028PEP28AThe Nasdaq Stock Market LLC3.200%Senior Notes Due 2029PEP29The Nasdaq Stock Market LLC1.125%Senior Notes Due 2031PEP31The Nasdaq Stock Market LLC0.400%Senior Notes Due 2032PEP32The Nasdaq Stock Market LLC0.750%Senior Notes Due 2033PEP33The Nasdaq Stock Market LLC3.550%Senior Notes Due 2034PEP34The Nasdaq Stock Market LLC0.875%Senior Notes Due 2039PEP39The Nasdaq Stock Market LLC1.050%Senior Notes Due 2050PEP50The Nasdaq Stock Market LLCIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes No Number of shares of Common Stock outstanding as of July 5,2024 was 1,373,572,400.PepsiCo,Inc.and SubsidiariesTable of ContentsPage No.Part I Financial InformationItem 1.Condensed Consolidated Financial Statements2Condensed Consolidated Statement of Income 12 and 24 Weeks Ended June 15,2024 and June 17,20232Condensed Consolidated Statement of Comprehensive Income 12 and 24 Weeks Ended June 15,2024 and June 17,20233Condensed Consolidated Statement of Cash Flows 24 Weeks Ended June 15,2024 and June 17,20234Condensed Consolidated Balance Sheet June 15,2024 and December 30,20236Condensed Consolidated Statement of Equity 12 and 24 Weeks Ended June 15,2024 and June 17,20237Notes to the Condensed Consolidated Financial Statements8Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations24Report of Independent Registered Public Accounting Firm44Item 3.Quantitative and Qualitative Disclosures About Market Risk45Item 4.Controls and Procedures45Part II Other InformationItem 1.Legal Proceedings46Item 1A.Risk Factors46Item 2.Unregistered Sales of Equity Securities and Use of Proceeds46Item 5.Other Information47Item 6.Exhibits47Table of Contents1PART I FINANCIAL INFORMATIONITEM 1.Condensed Consolidated Financial Statements.Condensed Consolidated Statement of IncomePepsiCo,Inc.and Subsidiaries(in millions except per share amounts,unaudited)12 Weeks Ended24 Weeks Ended 6/15/20246/17/20236/15/20246/17/2023Net Revenue$22,501$22,322$40,751$40,168 Cost of sales 9,919 10,121 18,167 18,109 Gross profit 12,582 12,201 22,584 22,059 Selling,general and administrative expenses 8,534 8,542 15,819 15,771 Operating Profit 4,048 3,659 6,765 6,288 Other pension and retiree medical benefits income 56 60 114 121 Net interest expense and other(234)(201)(436)(401)Income before income taxes 3,870 3,518 6,443 6,008 Provision for income taxes 776 747 1,296 1,293 Net income 3,094 2,771 5,147 4,715 Less:Net income attributable to noncontrolling interests 11 23 22 35 Net Income Attributable to PepsiCo$3,083$2,748$5,125$4,680 Net Income Attributable to PepsiCo per Common ShareBasic$2.24$1.99$3.73$3.40 Diluted$2.23$1.99$3.71$3.38 Weighted-average common shares outstandingBasic 1,375 1,378 1,375 1,378 Diluted 1,379 1,384 1,380 1,384 See accompanying notes to the condensed consolidated financial statements.Table of Contents2Condensed Consolidated Statement of Comprehensive IncomePepsiCo,Inc.and Subsidiaries(in millions,unaudited)12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023Net income$3,094$2,771$5,147$4,715 Other comprehensive loss,net of taxes:Net currency translation adjustment(267)(198)(449)(433)Net change on cash flow hedges 42 24 45 (35)Net pension and retiree medical adjustments 9 (6)20 (10)Net change on available-for-sale debt securities and other (391)1 132 (607)(179)(252)(478)Comprehensive income 2,487 2,592 4,895 4,237 Less:Comprehensive income attributable tononcontrolling interests 11 23 22 35 Comprehensive Income Attributable to PepsiCo$2,476$2,569$4,873$4,202 See accompanying notes to the condensed consolidated financial statements.Table of Contents3Condensed Consolidated Statement of Cash FlowsPepsiCo,Inc.and Subsidiaries(in millions,unaudited)24 Weeks Ended6/15/20246/17/2023Operating ActivitiesNet income$5,147$4,715 Depreciation and amortization 1,379 1,268 Impairment and other charges 97 Product recall-related impact 182 Cash payments for product recall-related impact(135)Operating lease right-of-use asset amortization 278 248 Share-based compensation expense 183 179 Restructuring and impairment charges 170 204 Cash payments for restructuring charges(173)(187)Pension and retiree medical plan expenses 67 62 Pension and retiree medical plan contributions(263)(209)Deferred income taxes and other tax charges and credits 142 270 Tax payments related to the Tax Cuts and Jobs Act(TCJ Act)(579)(309)Change in assets and liabilities:Accounts and notes receivable(1,138)(1,330)Inventories(696)(851)Prepaid expenses and other current assets(365)(271)Accounts payable and other current liabilities(2,968)(1,960)Income taxes payable 287 100 Other,net(203)(7)Net Cash Provided by Operating Activities 1,315 2,019 Investing ActivitiesCapital spending(1,701)(1,513)Sales of property,plant and equipment 127 122 Acquisitions,net of cash acquired,investments in noncontrolled affiliates and purchases of intangible and other assets(30)(83)Other divestitures,sales of investments in noncontrolled affiliates and other assets 135 75 Short-term investments,by original maturity:More than three months-purchases (435)More than three months-maturities 363 Three months or less,net 1 16 Other investing,net 14 32 Net Cash Used for Investing Activities(1,454)(1,423)(Continued on following page)Table of Contents4Condensed Consolidated Statement of Cash Flows(continued)PepsiCo,Inc.and Subsidiaries(in millions,unaudited)24 Weeks Ended6/15/20246/17/2023Financing ActivitiesProceeds from issuances of long-term debt$1,765$2,986 Payments of long-term debt(2,882)(2,252)Short-term borrowings,by original maturity:More than three months-proceeds 3,080 1,660 More than three months-payments(2,138)(26)Three months or less,net 1,286 2,023 Cash dividends paid(3,506)(3,199)Share repurchases(461)(453)Proceeds from exercises of stock options 107 86 Withholding tax payments on restricted stock units(RSUs)and performance stock units(PSUs)converted(131)(119)Other financing(20)(16)Net Cash(Used for)/Provided by Financing Activities(2,900)690 Effect of exchange rate changes on cash and cash equivalents and restricted cash(304)(144)Net(Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash(3,343)1,142 Cash and Cash Equivalents and Restricted Cash,Beginning of Year 9,761 5,100 Cash and Cash Equivalents and Restricted Cash,End of Period$6,418$6,242 Supplemental Non-Cash ActivityRight-of-use assets obtained in exchange for lease obligations$541$439 Debt discharged via legal defeasance$94 See accompanying notes to the condensed consolidated financial statements.Table of Contents5Condensed Consolidated Balance SheetPepsiCo,Inc.and Subsidiaries(in millions except per share amounts)(Unaudited)6/15/202412/30/2023ASSETSCurrent AssetsCash and cash equivalents$6,353$9,711 Short-term investments 315 292 Accounts and notes receivable,less allowance($180 and$175,respectively)11,942 10,815 Inventories:Raw materials and packaging 2,635 2,388 Work-in-process 121 104 Finished goods 3,131 2,842 5,887 5,334 Prepaid expenses and other current assets 1,206 798 Total Current Assets 25,703 26,950 Property,plant and equipment 55,040 54,439 Accumulated depreciation(27,998)(27,400)Property,Plant and Equipment,net 27,042 27,039 Amortizable Intangible Assets,net 1,151 1,199 Goodwill 17,648 17,728 Other Indefinite-Lived Intangible Assets 13,675 13,730 Investments in Noncontrolled Affiliates 2,674 2,714 Deferred Income Taxes 4,465 4,474 Other Assets 7,175 6,661 Total Assets$99,533$100,495 LIABILITIES AND EQUITYCurrent LiabilitiesShort-term debt obligations$8,289$6,510 Accounts payable and other current liabilities 22,859 25,137 Total Current Liabilities 31,148 31,647 Long-Term Debt Obligations 36,638 37,595 Deferred Income Taxes 3,908 3,895 Other Liabilities 8,259 8,721 Total Liabilities 79,953 81,858 Commitments and contingenciesPepsiCo Common Shareholders EquityCommon stock,par value 12/3 per share(authorized 3,600 shares;issued,net of repurchased common stock at par value:1,374 shares)23 23 Capital in excess of par value 4,203 4,261 Retained earnings 71,545 70,035 Accumulated other comprehensive loss(15,786)(15,534)Repurchased common stock,in excess of par value(493 shares)(40,539)(40,282)Total PepsiCo Common Shareholders Equity 19,446 18,503 Noncontrolling interests 134 134 Total Equity 19,580 18,637 Total Liabilities and Equity$99,533$100,495 See accompanying notes to the condensed consolidated financial statements.Table of Contents6Condensed Consolidated Statement of EquityPepsiCo,Inc.and Subsidiaries(in millions,except per share amounts,unaudited)12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023SharesAmountSharesAmountSharesAmountSharesAmountCommon StockBalance,beginning of period 1,375$23 1,378$23 1,374$23 1,377$23 Change in repurchased common stock(1)(1)Balance,end of period 1,374 23 1,377 23 1,374 23 1,377 23 Capital in Excess of Par ValueBalance,beginning of period 4,132 3,996 4,261 4,134 Share-based compensation expense 87 85 179 179 Stock option exercises,RSUs and PSUs converted 9 5 (104)(111)Withholding tax on RSUs and PSUs converted(23)(3)(131)(119)Other(2)(1)(2)(1)Balance,end of period 4,203 4,082 4,203 4,082 Retained EarningsBalance,beginning of period 70,331 68,142 70,035 67,800 Net income attributable to PepsiCo 3,083 2,748 5,125 4,680 Cash dividends declared(a)(1,869)(1,755)(3,615)(3,345)Balance,end of period 71,545 69,135 71,545 69,135 Accumulated Other Comprehensive LossBalance,beginning of period(15,179)(15,601)(15,534)(15,302)Other comprehensive loss attributable to PepsiCo(607)(179)(252)(478)Balance,end of period(15,786)(15,780)(15,786)(15,780)Repurchased Common StockBalance,beginning of period(492)(40,260)(489)(39,518)(493)(40,282)(490)(39,506)Share repurchases(2)(310)(2)(292)(3)(468)(3)(466)Stock option exercises,RSUs and PSUs converted 1 31 1 35 3 210 3 197 Other 1 Balance,end of period(493)(40,539)(490)(39,775)(493)(40,539)(490)(39,775)Total PepsiCo Common Shareholders Equity 19,446 17,685 19,446 17,685 Noncontrolling InterestsBalance,beginning of period 143 133 134 124 Net income attributable to noncontrolling interest 11 23 22 35 Distributions to noncontrolling interests(16)(14)(17)(15)Other,net(4)(2)(5)(4)Balance,end of period 134 140 134 140 Total Equity$19,580$17,825$19,580$17,825(a)Cash dividends declared per common share were$1.355 and$1.265 for the 12 weeks ended June 15,2024 and June 17,2023,respectively,and$2.62 and$2.415 for the 24 weeks ended June 15,2024 and June 17,2023,respectively.See accompanying notes to the condensed consolidated financial statements.Table of Contents7Notes to the Condensed Consolidated Financial StatementsNote 1-Basis of Presentation and Our DivisionsBasis of PresentationWhen used in this report,the terms“we,”“us,”“our,”“PepsiCo”and the“Company”mean PepsiCo,Inc.and its consolidated subsidiaries,collectively.The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S.Generally Accepted Accounting Principles(GAAP)for interim financial information and with the rules and regulations for reporting the Quarterly Report on Form 10-Q(Form 10-Q).Accordingly,they do not include all of the information and footnotes required by GAAP for complete financial statements.The condensed consolidated balance sheet at December 30,2023 has been derived from the audited consolidated financial statements at that date,but does not include all of the information and footnotes required by GAAP for complete financial statements.These financial statements have been prepared on a basis that is substantially consistent with the accounting principles applied in our Annual Report on Form 10-K for the fiscal year ended December 30,2023(2023 Form 10-K).This report should be read in conjunction with our 2023 Form 10-K.In our opinion,these financial statements include all normal and recurring adjustments necessary for a fair presentation.The results for the 12 and 24 weeks ended June 15,2024 are not necessarily indicative of the results expected for any future period or the full year.Raw materials,direct labor and plant overhead,as well as purchasing and receiving costs,costs directly related to production planning,inspection costs and raw materials handling facilities,are included in cost of sales.The costs of moving,storing and delivering finished product,including merchandising activities,are included in selling,general and administrative expenses.While our financial results in the United States and Canada(North America)are reported on a 12-week basis,all of our international operations are reported on a monthly calendar basis for which the months of March,April and May are reflected in our results for the 12 weeks ended June 15,2024 and June 17,2023,and the months of January through May are reflected in our results for the 24 weeks ended June 15,2024 and June 17,2023.The preparation of our condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and related disclosures.Additionally,the business and economic uncertainty resulting from volatile geopolitical conditions and the high interest rate and inflationary cost environment has made such estimates and assumptions more difficult to calculate.Accordingly,actual results and outcomes could differ from those estimates.Our significant interim accounting policies include the recognition of a pro rata share of certain estimated annual sales incentives and certain advertising and marketing costs in proportion to revenue or volume,as applicable,and the recognition of income taxes using an estimated annual effective tax rate.Unless otherwise noted,tabular dollars are in millions,except per share amounts.All per share amounts reflect common per share amounts,assume dilution unless otherwise noted,and are based on unrounded amounts.Certain reclassifications were made to the prior years financial statements to conform to the current year presentation.Table of Contents8Our DivisionsWe are organized into seven reportable segments(also referred to as divisions),as follows:1)Frito-Lay North America(FLNA),which includes our branded convenient food businesses in the United States and Canada;2)Quaker Foods North America(QFNA),which includes our branded convenient food businesses,such as cereal,rice,pasta and other branded food,in the United States and Canada;3)PepsiCo Beverages North America(PBNA),which includes our beverage businesses in the United States and Canada;4)Latin America(LatAm),which includes all of our beverage and convenient food businesses in Latin America;5)Europe,which includes all of our beverage and convenient food businesses in Europe;6)Africa,Middle East and South Asia(AMESA),which includes all of our beverage and convenient food businesses in Africa,the Middle East and South Asia;and7)Asia Pacific,Australia and New Zealand and China region(APAC),which includes all of our beverage and convenient food businesses in Asia Pacific,Australia and New Zealand,and China region.Net revenue of each division is as follows:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023FLNA$5,874$5,904$11,550$11,487 QFNA 561 684 1,154 1,461 PBNA 6,811 6,755 12,685 12,553 LatAm 3,045 2,856 5,112 4,633 Europe 3,515 3,428 5,451 5,314 AMESA 1,592 1,568 2,632 2,587 APAC 1,103 1,127 2,167 2,133 Total$22,501$22,322$40,751$40,168 Our primary performance obligation is the distribution and sales of beverage and convenient food products to our customers.The following tables reflect the percentage of net revenue generated between our beverage business and our convenient food business for each of our international divisions,as well as our consolidated net revenue:12 Weeks Ended6/15/20246/17/2023Beverages(a)Convenient FoodsBeverages(a)Convenient FoodsLatAm 10%9%Europe 48RIQ%AMESA 33g1i%APAC 28r&t%PepsiCo 43WBX%Table of Contents924 Weeks Ended6/15/20246/17/2023Beverages(a)Convenient FoodsBeverages(a)Convenient FoodsLatAm 9%9%Europe 47SHR%AMESA 33g1i%APAC 21y!y%PepsiCo 42XBX%(a)Beverage revenue from company-owned bottlers,which primarily includes our consolidated bottling operations in our PBNA and Europe divisions,was 36%and 35%of our consolidated net revenue in the 12 and 24 weeks ended June 15,2024,respectively,and 37%and 36%of our consolidated net revenue in the 12 and 24 weeks ended June 17,2023,respectively.Generally,our finished goods beverage operations produce higher net revenue but lower operating margin as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.Operating profit of each division is as follows:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023FLNA$1,592$1,647$3,146$3,246 QFNA(a)85 129 36 317 PBNA(b)987 723 1,497 1,206 LatAm 637 592 1,122 956 Europe 620 476 822 547 AMESA 241 250 393 418 APAC 223 223 456 450 Total divisions 4,385 4,040 7,472 7,140 Corporate unallocated expenses(c)(337)(381)(707)(852)Total$4,048$3,659$6,765$6,288(a)In the 12 weeks ended June 15,2024,we recorded a pre-tax charge of$15 million($11 million after-tax or$0.01 per share)associated with a previously announced voluntary recall of certain bars and cereals in our QFNA division(Quaker Recall)with$8 million recorded in cost of sales and$7 million recorded in selling,general and administrative expenses.In the 24 weeks ended June 15,2024,we recorded a pre-tax charge of$182 million($139 million after-tax or$0.10 per share)associated with the Quaker Recall,with$175 million recorded in cost of sales related to property,plant and equipment write-offs,employee severance costs and other costs and$7 million recorded in selling,general and administrative expenses.(b)In the 12 and 24 weeks ended June 17,2023,we recorded our proportionate 39%share of Tropicana Brands Groups(TBG)impairment of indefinite-lived intangible assets,and recorded an other-than-temporary impairment of our equity method investment,both of which resulted in pre-tax impairment charges of$113 million($86 million after-tax or$0.06 per share),recorded in selling,general and administrative expenses.See Note 9 for further information.(c)In both the 12 and 24 weeks ended June 15,2024 and June 17,2023,we recorded a pre-tax gain of$76 million($57 million after-tax or$0.04 per share)and$85 million($65 million after-tax or$0.05 per share),respectively,in selling,general and administrative expenses as a result of the sale of corporate assets.Table of Contents10Note 2-Recently Issued Accounting PronouncementsAdoptedIn September 2022,the Financial Accounting Standards Board(FASB)issued guidance to enhance the transparency of supplier finance programs to allow financial statement users to understand the effect on working capital,liquidity and cash flows.The new guidance requires disclosure of key terms of the program,including a description of the payment terms,payment timing and assets pledged as security or other forms of guarantees provided to the finance provider or intermediary.Other requirements include the disclosure of the amount that remains unpaid as of the end of the reporting period,a description of where these obligations are presented in the balance sheet and a rollforward of the obligation during the annual period.We adopted the guidance in the first quarter of 2023,except for the rollforward,which is effective for the current fiscal year 2024.We will adopt the rollforward guidance when it becomes effective in our 2024 annual reporting,on a prospective basis.See Note 12 for disclosures currently required under this guidance.Not Yet AdoptedIn December 2023,the FASB issued guidance to enhance transparency of income tax disclosures.On an annual basis,the new guidance requires a public entity to disclose:(1)specific categories in the rate reconciliation,(2)additional information for reconciling items that are equal to or greater than 5%of the amount computed by multiplying income(or loss)from continuing operations before income tax expense(or benefit)by the applicable statutory income tax rate,(3)income taxes paid(net of refunds received)disaggregated by federal(national),state,and foreign taxes,with foreign taxes disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5%of total income taxes paid,(4)income(or loss)from continuing operations before income tax expense(or benefit)disaggregated between domestic and foreign,and(5)income tax expense(or benefit)from continuing operations disaggregated between federal(national),state and foreign.The guidance is effective for fiscal year 2025 annual reporting,with early adoption permitted,to be applied on a prospective basis,with retrospective application permitted.We will adopt the guidance when it becomes effective,in our 2025 annual reporting,on a prospective basis.In November 2023,the FASB issued guidance to enhance disclosure of expenses of a public entitys reportable segments.The new guidance requires a public entity to disclose:(1)on an annual and interim basis,significant segment expenses that are regularly provided to the chief operating decision maker(CODM)and included within each reported measure of segment profit or loss,(2)on an annual and interim basis,an amount for other segment items(the difference between segment revenue less the significant expenses disclosed under the significant expense principle and each reported measure of segment profit or loss),including a description of its composition,(3)on an annual and interim basis,information about a reportable segments profit or loss and assets previously required to be disclosed only on an annual basis,and(4)the title and position of the CODM and an explanation of how the CODM uses the reported measure(s)of segment profit or loss in assessing segment performance and how to allocate resources.The new guidance also clarifies that if the CODM uses more than one measure of a segments profit or loss,one or more of those measures may be reported and requires that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this update and all existing segment disclosures.The guidance is effective for the current fiscal year 2024 annual reporting,and in the first quarter of 2025 for interim period reporting,with early adoption permitted.Upon adoption,this guidance should be applied retrospectively to all prior periods presented.We will adopt the guidance when it becomes effective in our 2024 annual reporting.Table of Contents11Note 3-Restructuring and Impairment Charges2019 Multi-Year Productivity PlanWe publicly announced a multi-year productivity plan on February 15,2019(2019 Productivity Plan)that leverages new technology and business models to further simplify,harmonize and automate processes;re-engineers our go-to-market and information systems,including deploying the right automation for each market;and simplifies our organization and optimize our manufacturing and supply chain footprint.To build on the successful implementation of the 2019 Productivity Plan,in 2022,we expanded and extended the plan through the end of 2028 to take advantage of additional opportunities within the initiatives described above.As a result,we expect to incur pre-tax charges of approximately$3.65 billion,including cash expenditures of approximately$2.9 billion.These pre-tax charges are expected to consist of approximately 55%of severance and other employee-related costs,10%for asset impairments(all non-cash)resulting from plant closures and related actions,and 35%for other costs associated with the implementation of our initiatives.The total plan pre-tax charges are expected to be incurred by division approximately as follows:FLNAQFNAPBNALatAmEuropeAMESAAPACCorporateExpected pre-tax charges 10%10%5%4%A summary of our 2019 Productivity Plan charges is as follows:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023Cost of sales$3$6$6 Selling,general and administrative expenses 66 89 149 199 Other pension and retiree medical benefits expense/(income)(a)8 15 (1)Total restructuring and impairment charges$74$92$170$204 After-tax amount$54$63$130$161 Impact on net income attributable to PepsiCo per common share$(0.04)$(0.05)$(0.09)$(0.12)12 Weeks Ended24 Weeks EndedPlan-to-Date6/15/20246/17/20236/15/20246/17/2023through 6/15/2024FLNA$13$6$35$13$287 QFNA 4 23 PBNA 5 5 15 10 282 LatAm 16 6 21 11 221 Europe 19 52 37 141 603 AMESA 3 3 5 100 APAC 4 4 4 5 89 Corporate 6 19 36 20 353 66 92 155 205 1,958 Other pension and retiree medical benefits expense/(income)(a)8 15 (1)112 Total$74$92$170$204$2,070(a)Income amount represents adjustments for changes in estimates of previously recorded amounts.Table of Contents1212 Weeks Ended24 Weeks EndedPlan-to-Date6/15/20246/17/20236/15/20246/17/2023through 6/15/2024Severance and other employee costs$10$50$82$142$1,132 Asset impairments 3 4 196 Other costs 61 42 84 62 742 Total$74$92$170$204$2,070 Severance and other employee costs primarily include severance and other termination benefits,as well as voluntary separation arrangements.Other costs primarily include costs associated with the implementation of our initiatives,including consulting and other professional fees,as well as contract termination costs.A summary of our 2019 Productivity Plan activity for the 24 weeks ended June 15,2024 is as follows:Severance and Other Employee CostsAsset ImpairmentsOther CostsTotalLiability as of December 30,2023$188$9$197 2024 restructuring charges 82 4 84 170 Cash payments(84)(89)(173)Non-cash charges and translation(11)(4)14 (1)Liability as of June 15,2024$175$18$193 The majority of the restructuring accrual at June 15,2024 is expected to be paid by the end of 2024.Other Productivity InitiativesThere were no material charges related to other productivity and efficiency initiatives outside the scope of the 2019 Productivity Plan.We regularly evaluate different productivity initiatives beyond the productivity plan and other initiatives described above.Note 4-Intangible AssetsA summary of our amortizable intangible assets is as follows:6/15/202412/30/2023GrossAccumulated AmortizationNetGrossAccumulated AmortizationNetAcquired franchise rights$832$(219)$613$840$(214)$626 Customer relationships 553 (274)279 560 (265)295 Brands 1,081 (986)95 1,093 (989)104 Other identifiable intangibles 440 (276)164 449 (275)174 Total$2,906$(1,755)$1,151$2,942$(1,743)$1,199 Table of Contents13The change in the book value of indefinite-lived intangible assets is as follows:Balance12/30/2023Translationand OtherBalance6/15/2024FLNAGoodwill$453$(5)$448 Brands 251 251 Total 704 (5)699 QFNAGoodwill 189 189 Total 189 189 PBNA Goodwill 11,961 (16)11,945 Reacquired franchise rights 7,114 (29)7,085 Acquired franchise rights 1,737 (5)1,732 Brands 2,508 2,508 Total 23,320 (50)23,270 LatAmGoodwill 460 (11)449 Brands 82 (2)80 Total 542 (13)529 EuropeGoodwill 3,166 (21)3,145 Reacquired franchise rights 419 (4)415 Acquired franchise rights 154 (4)150 Brands 1,124 (5)1,119 Total 4,863 (34)4,829 AMESA Goodwill 991 (16)975 Brands 137 (2)135 Total 1,128 (18)1,110 APAC Goodwill 508 (11)497 Brands 204 (4)200 Total 712 (15)697 Total goodwill 17,728 (80)17,648 Total reacquired franchise rights 7,533 (33)7,500 Total acquired franchise rights 1,891 (9)1,882 Total brands 4,306 (13)4,293 Total$31,458$(135)$31,323 Table of Contents14Note 5-Income TaxesNumerous countries have agreed to a statement in support of the Organization for Economic Co-operation and Development(OECD)model rules that propose a global minimum tax rate of 15%.Certain countries have enacted legislation incorporating the agreed global minimum tax effective in 2024.Legislation enacted as of June 15,2024 did not have a material impact on our financial statements for the 12 and 24 weeks ended June 15,2024 and is not expected to have a material impact on our 2024 financial statements.Note 6-Share-Based CompensationThe following table summarizes our total share-based compensation expense,which is primarily recorded in selling,general and administrative expenses:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023Share-based compensation expense equity awards$86$86$183$179 Share-based compensation expense liability awards 5 6 10 12 Restructuring charges 1 (1)(4)Total$92$91$189$191 The following table summarizes share-based awards granted under the terms of the PepsiCo,Inc.Long-Term Incentive Plan:24 Weeks Ended6/15/20246/17/2023Granted(a)Weighted-Average Grant PriceGranted(a)Weighted-Average Grant PriceStock options 1.8$164.25 2.0$171.00 RSUs and PSUs 2.3$164.25 2.1$171.11(a)In millions.All grant activity is disclosed at target.We granted long-term cash awards to certain executive officers and other senior executives with an aggregate target value of$19 million and$20 million during the 24 weeks ended June 15,2024 and June 17,2023,respectively.For the 12 weeks ended June 15,2024 and June 17,2023,our grants of stock options,RSUs,PSUs and long-term cash awards were nominal.Our weighted-average Black-Scholes fair value assumptions are as follows:24 Weeks Ended 6/15/20246/17/2023Expected life7 years7 yearsRisk-free interest rate 4.2%4.2%Expected volatility 16%Expected dividend yield 2.9%2.7%Table of Contents15Note 7-Pension and Retiree Medical BenefitsThe components of net periodic benefit cost/(income)for pension and retiree medical plans are as follows:12 Weeks EndedPensionRetiree MedicalU.S.International6/15/20246/17/20236/15/20246/17/20236/15/20246/17/2023Service cost$80$75$12$10$8$7 Other pension and retiree medical benefits income:Interest cost 135 137 36 34 8 9 Expected return on plan assets(202)(196)(50)(46)(3)(3)Amortization of prior service credits(5)(6)(1)(1)(2)Amortization of net losses/(gains)18 16 5 3 (6)(6)Settlement losses 2 Special termination benefits 8 Total other pension and retiree medical benefits income(46)(49)(8)(9)(2)(2)Total$34$26$4$1$6$5 24 Weeks Ended PensionRetiree Medical U.S.International 6/15/20246/17/20236/15/20246/17/20236/15/20246/17/2023Service cost$160$151$21$18$15$13 Other pension and retiree medical benefits income:Interest cost 270 274 63 59 15 17 Expected return on plan assets(403)(393)(89)(81)(6)(6)Amortization of prior service credits(11)(12)(1)(2)(3)Amortization of net losses/(gains)36 32 9 5 (12)(12)Settlement losses 2 Special termination benefits 15 (1)Total other pension and retiree medical benefits income(93)(100)(16)(17)(5)(4)Total$67$51$5$1$10$9 We regularly evaluate opportunities to reduce risk and volatility associated with our pension and retiree medical plans.In the 24 weeks ended June 15,2024 and June 17,2023,we made discretionary contributions of$150 million and$125 million,respectively,to our U.S.qualified defined benefit plans,and$27 million and$17 million,respectively,to our international defined benefit plans.Table of Contents16Note 8-Debt Obligations In the 24 weeks ended June 15,2024,we issued,through our wholly-owned consolidated finance subsidiary,PepsiCo Singapore Financing I Pte.Ltd.,the following notes:(a)Interest RateMaturity DatePrincipal Amount(b)Floating rateFebruary 2027$300 4.650bruary 2027$550 4.550bruary 2029$450 4.700bruary 2034$450(a)PepsiCo Singapore Financing I Pte.Ltd.is a finance subsidiary and has no assets,operations,revenues or cash flows other than those related to the issuance,administration and repayment of the notes and any other notes that may be issued in the future.The notes are fully and unconditionally guaranteed by PepsiCo,Inc.on a senior unsecured basis and may be assumed at any time by PepsiCo,Inc.as the primary and sole obligor.(b)Excludes debt issuance costs,discounts and premiums.The net proceeds from the issuances of the above notes were used for general corporate purposes,including the repayment of commercial paper.In the 24 weeks ended June 15,2024,$1.3 billion of U.S.dollar-denominated senior notes,1.0 billion of euro-denominated senior notes and C$0.8 billion of Canadian dollar-denominated senior notes matured and were paid.As of June 15,2024,we had$4.4 billion of commercial paper outstanding,excluding discounts.In the 12 and 24 weeks ended June 15,2024,we entered into a new five-year unsecured revolving credit agreement(Five-Year Credit Agreement),which expires on May 24,2029.The Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to$5.0 billion in U.S.dollars and/or euros,including a$0.75 billion swing line subfacility for euro-denominated borrowings permitted to be borrowed on a same-day basis,subject to customary terms and conditions.We may request that commitments under this agreement be increased up to$5.75 billion(or the equivalent amount in euros).Additionally,we may,up to two times during the term of the 2024 Five-Year Credit Agreement,request renewal of the agreement for an additional one-year period.The Five-Year Credit Agreement replaced our$4.2 billion five-year credit agreement,dated as of May 26,2023.Also in the 12 and 24 weeks ended June 15,2024,we entered into a new 364-day unsecured revolving credit agreement(364-Day Credit Agreement),which expires on May 23,2025.The 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to$5.0 billion in U.S.dollars and/or euros,subject to customary terms and conditions.We may request that commitments under this agreement be increased up to$5.75 billion(or the equivalent amount in euros).We may request renewal of this facility for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to one year,which term loan would mature no later than the anniversary of the then effective termination date.The 364-Day Credit Agreement replaced our$4.2 billion 364-day credit agreement,dated as of May 26,2023.Funds borrowed under the Five-Year Credit Agreement and the 364-Day Credit Agreement may be used for general corporate purposes.Subject to certain conditions,we may borrow,prepay and reborrow amounts under these agreements.As of June 15,2024,there were no outstanding borrowings under the Five-Year Credit Agreement or the 364-Day Credit Agreement.Table of Contents17Note 9-Financial InstrumentsWe are exposed to market risks arising from adverse changes in:commodity prices,affecting the cost of our raw materials and energy;foreign exchange rates and currency restrictions;andinterest rates.There have been no material changes during the 24 weeks ended June 15,2024 with respect to our risk management policies or strategies and valuation techniques used in measuring the fair value of the financial assets or liabilities disclosed in Note 9 to our consolidated financial statements in our 2023 Form 10-K.Certain of our agreements with our counterparties require us to post full collateral on derivative instruments in a net liability position if our credit rating is at A2(Moodys Investors Service,Inc.)or A(S&P Global Ratings)and we have been placed on credit watch for possible downgrade or if our credit rating falls below either of these levels.The fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position as of June 15,2024 was$141 million.We have posted no collateral under these contracts and no credit-risk-related contingent features were triggered as of June 15,2024.The notional amounts of our financial instruments used to hedge the above risks as of June 15,2024 and December 30,2023 are as follows:Notional Amounts(a)6/15/202412/30/2023Commodity$1.4$1.7 Foreign exchange$3.0$3.8 Interest rate$0.7$1.3 Net investment(b)$2.9$3.0(a)In billions.(b)The total notional amount of our net investment hedges consists of non-derivative debt instruments.As of June 15,2024,approximately 14%of total debt was subject to variable rates,compared to 9%as of December 30,2023.Debt SecuritiesHeld-to-MaturityAs of June 15,2024,we had no investments in held-to-maturity debt securities.As of December 30,2023,we had$309 million of investments in commercial paper held-to-maturity debt securities recorded in cash and cash equivalents.Held-to-maturity debt securities are recorded at amortized cost,which approximates fair value,and realized gains or losses are reported in earnings.As of December 30,2023,gross unrecognized gains and losses and the allowance for expected credit losses were not material.Available-for-SaleThere were no material impairment charges related to investments in available-for-sale debt securities in both the 24 weeks ended June 15,2024 and June 17,2023.There were unrealized gains of$800 million as of June 15,2024 and no unrealized gains or losses as of June 17,2023 related to investments in available-for-sale debt securities.Related to our Level 3(significant unobservable inputs)investment in Celsius Holdings,Inc.(Celsius),we recorded an unrealized loss of$503 million and an unrealized gain of$188 million in other comprehensive income during the 12 and 24 weeks ended June 15,2024,respectively.Additionally,we recorded a decrease in the investment of$7 million due to cash dividends Table of Contents18received during the 12 and 24 weeks ended June 15,2024.There were no Level 3 investments in available-for-sale debt securities during the 24 weeks ended June 17,2023.TBG InvestmentIn the 12 and 24 weeks ended June 17,2023,we recorded our proportionate 39%share of TBGs impairment of indefinite-lived intangible assets,and recorded an other-than-temporary impairment of our equity method investment,both of which resulted in pre-tax impairment charges of$113 million($86 million after-tax or$0.06 per share),recorded in selling,general and administrative expenses in our PBNA division.We estimated the fair value of our ownership in TBG using discounted cash flows and an option pricing model related to our liquidation preference in TBG,which we categorized as Level 3 in the fair value hierarchy.There were no impairment charges recorded in the 24 weeks ended June 15,2024.Recurring Fair Value MeasurementsThe fair values of our financial assets and liabilities as of June 15,2024 and December 30,2023 are categorized as follows:6/15/202412/30/2023 Fair Value Hierarchy Levels(a)Assets(a)Liabilities(a)Assets(a)Liabilities(a)Available-for-sale debt securities(b)2,3$1,519$1,334$Index funds(c)1$315$292$Prepaid forward contracts(d)2$13$13$Deferred compensation(e)2$493$477 Derivatives designated as cash flow hedging instruments:Foreign exchange(f)2$14$13$3$31 Interest rate(f)2 152 5 135 Commodity(g)2 23 8 10 24$37$173$18$190 Derivatives not designated as hedging instruments:Foreign exchange(f)2$14$14$33$38 Commodity(g)2 7 3 5 13$21$17$38$51 Total derivatives at fair value(h)$58$190$56$241 Total$1,905$683$1,695$718(a)Fair value hierarchy levels are categorized consistently by Level 1(quoted prices in active markets for identical assets),Level 2(significant other observable inputs)and Level 3 in both years.Unless otherwise noted,financial assets are classified on our balance sheet within prepaid expenses and other current assets and other assets.Financial liabilities are classified on our balance sheet within accounts payable and other current liabilities and other liabilities.(b)Includes Level 2 assets of$182 million and Level 3 assets of$1,337 million as of June 15,2024,and Level 2 assets of$178 million and Level 3 assets of$1,156 million as of December 30,2023.As of June 15,2024 and December 30,2023,$1,519 million and$1,334 million were classified as other assets,respectively.The fair values of our Level 2 investments approximate the transaction price and any accrued returns,as well as the amortized cost.The fair value of our Level 3 investment in Celsius is estimated using probability-weighted discounted future cash flows based on a Monte Carlo simulation using significant unobservable inputs such as an 80%probability that a certain market-based condition will be met and an average estimated discount rate of 5.8%and 8.1%as of June 15,2024 and December 30,2023,respectively,based on Celsius estimated synthetic credit rating.An increase in the probability that certain market-based conditions will be met or a decrease in the discount rate would result in a higher fair value measurement,while a decrease in the probability that certain market-based conditions will be met or an increase in the discount rate would result in a lower fair value measurement.Table of Contents19(c)Based on the price of index funds.These investments are classified as short-term investments and are used to manage a portion of market risk arising from our deferred compensation liability.(d)Based primarily on the price of our common stock.(e)Based on the fair value of investments corresponding to employees investment elections.(f)Based on recently reported market transactions of spot and forward rates.(g)Primarily based on recently reported market transactions of swap arrangements.(h)Derivative assets and liabilities are presented on a gross basis on our balance sheet.Amounts subject to enforceable master netting arrangements or similar agreements which are not offset on our balance sheet as of June 15,2024 and December 30,2023 were not material.Collateral received or posted against our asset or liability positions was not material.Exchange-traded commodity futures are cash-settled on a daily basis and,therefore,not included in the table.The carrying amounts of our cash and cash equivalents and short-term investments recorded at amortized cost approximate fair value(classified as Level 2 in the fair value hierarchy)due to their short-term maturity.The fair value of our debt obligations as of June 15,2024 and December 30,2023 was$41 billion,based upon prices of identical or similar instruments in the marketplace,which are considered Level 2 inputs.Losses/(gains)on our cash flow and net investment hedges are categorized as follows:12 Weeks EndedLosses/(Gains)Recognized inAccumulated OtherComprehensive LossLosses/(Gains)Reclassified fromAccumulated OtherComprehensive Lossinto Income Statement(a)6/15/20246/17/20236/15/20246/17/2023Foreign exchange$(1)$43$9$14 Interest rate 9 (37)11 (30)Commodity(11)(15)30 28 Net investment(17)71 Total$(20)$62$50$12 24 Weeks Ended Losses/(Gains)Recognized inAccumulated OtherComprehensive LossLosses/(Gains)Reclassified fromAccumulated OtherComprehensive Lossinto Income Statement(a)6/15/20246/17/20236/15/20246/17/2023Foreign exchange$(15)$59$18$15 Interest rate 34 (26)35 (27)Commodity 28 50 51 37 Net investment(69)108 Total$(22)$191$104$25(a)Foreign exchange derivative losses/(gains)are included in net revenue and cost of sales.Interest rate derivative losses/(gains)are included in selling,general and administrative expenses.Commodity derivative losses/(gains)are included in either cost of sales or selling,general and administrative expenses,depending on the underlying commodity.See Note 11 for further information.Based on current market conditions,we expect to reclassify net losses of$55 million related to our cash flow hedges from accumulated other comprehensive loss within common shareholders equity into net income during the next 12 months.Table of Contents20Losses/(gains)recognized in the income statement related to our non-designated hedges are categorized as follows:12 Weeks Ended6/15/20246/17/2023Cost of salesSelling,general and administrative expensesTotalCost of salesSelling,general and administrative expensesTotalForeign exchange$24$24$44$44 Commodity(14)5 (9)5 3 8 Total$(14)$29$15$5$47$52 24 Weeks Ended6/15/20246/17/2023Cost of salesSelling,general and administrative expensesTotalCost of salesSelling,general and administrative expensesTotalForeign exchange$42$42$(1)$39$38 Commodity(15)(20)(35)36 53 89 Total$(15)$22$7$35$92$127 Note 10-Net Income Attributable to PepsiCo per Common ShareThe computations of basic and diluted net income attributable to PepsiCo per common share are as follows:12 Weeks Ended6/15/20246/17/2023IncomeShares(a)IncomeShares(a)Basic net income attributable to PepsiCo per common share$2.24$1.99 Net income available for PepsiCo common shareholders$3,083 1,375$2,748 1,378 Dilutive securities:Stock options,RSUs,PSUs and other(b)4 6 Diluted$3,083 1,379$2,748 1,384 Diluted net income attributable to PepsiCo per common share$2.23$1.99 24 Weeks Ended 6/15/20246/17/2023 IncomeShares(a)IncomeShares(a)Basic net income attributable to PepsiCo per common share$3.73$3.40 Net income available for PepsiCo common shareholders$5,125 1,375$4,680 1,378 Dilutive securities:Stock options,RSUs,PSUs and other(b)5 6 Diluted$5,125 1,380$4,680 1,384 Diluted net income attributable to PepsiCo per common share$3.71$3.38(a)Weighted-average common shares outstanding(in millions).(b)The dilutive effect of these securities is calculated using the treasury stock method.Table of Contents21The weighted-average amount of antidilutive securities excluded from the calculation of diluted earnings per common share was 4 million for the 12 and 24 weeks ended June 15,2024,and was immaterial for the 12 and 24 weeks ended June 17,2023.Note 11-Accumulated Other Comprehensive Loss Attributable to PepsiCoThe changes in the balances of each component of accumulated other comprehensive loss attributable to PepsiCo are as follows:Currency Translation AdjustmentCash Flow HedgesPension and Retiree MedicalAvailable-for-Sale Debt Securities and Other(a)Accumulated Other Comprehensive Loss Attributable to PepsiCoBalance as of December 30,2023(b)$(13,255)$(31)$(2,719)$471$(15,534)Other comprehensive(loss)/income before reclassifications(c)(168)(47)4 685 474 Amounts reclassified from accumulated other comprehensive loss 51 9 60 Net other comprehensive(loss)/income(168)4 13 685 534 Tax amounts(14)(1)(2)(162)(179)Balance as of March 23,2024(b)(13,437)(28)(2,708)994 (15,179)Other comprehensive(loss)/income before reclassifications(d)(295)3 (1)(511)(804)Amounts reclassified from accumulated other comprehensive loss 53 12 65 Net other comprehensive(loss)/income(295)56 11 (511)(739)Tax amounts 28 (14)(2)120 132 Balance as of June 15,2024(b)$(13,704)$14$(2,699)$603$(15,786)(a)The movements during the quarters primarily represent fair value changes in available-for-sale debt securities,including our investment in Celsius convertible preferred stock.See Note 9 for further information.(b)Pension and retiree medical amounts are net of taxes of$1,282 million as of December 30,2023,$1,280 million as of March 23,2024 and$1,278 million as of June 15,2024.(c)Currency translation adjustment primarily reflects depreciation of the South African rand,Canadian dollar and Russian ruble.(d)Currency translation adjustment primarily reflects depreciation of the Egyptian pound.Currency Translation AdjustmentCash Flow HedgesPension and Retiree MedicalAvailable-for-Sale Debt Securities and OtherAccumulated Other Comprehensive Loss Attributableto PepsiCoBalance as of December 31,2022(a)$(12,948)$1$(2,361)$6$(15,302)Other comprehensive(loss)before reclassifications(b)(350)(92)(9)(1)(452)Amounts reclassified from accumulated other comprehensive loss(c)108 13 5 126 Net other comprehensive(loss)(242)(79)(4)(1)(326)Tax amounts 7 20 27 Balance as of March 25,2023(a)(13,183)(58)(2,365)5 (15,601)Other comprehensive(loss)/income before reclassifications(d)(215)19 (14)1 (209)Amounts reclassified from accumulated other comprehensive loss 12 5 17 Net other comprehensive(loss)/income(215)31 (9)1 (192)Tax amounts 17 (7)3 13 Balance as of June 17,2023(a)$(13,381)$(34)$(2,371)$6$(15,780)(a)Pension and retiree medical amounts are net of taxes of$1,184 million as of both December 31,2022 and March 25,2023 and$1,187 million as of June 17,2023.(b)Currency translation adjustment primarily reflects depreciation of the Egyptian pound and Russian ruble.(c)Release of currency translation adjustment is in relation to the sale of a non-strategic brand and an investment within our AMESA division.(d)Currency translation adjustment primarily reflects depreciation of the Russian ruble.Table of Contents22The reclassifications from accumulated other comprehensive loss to the income statement are summarized as follows:12 Weeks Ended24 Weeks Ended6/15/20246/17/20236/15/20246/17/2023Affected Line Item in the Income StatementCurrency translation:Divestitures$108 Selling,general and administrative expensesCash flow hedges:Foreign exchange contracts$(1)$(3)Net revenueForeign exchange contracts 9 15 18 18 Cost of salesInterest rate derivatives 14 (30)35 (27)Selling,general and administrative expensesCommodity contracts 30 28 51 38 Cost of salesCommodity contracts (1)Selling,general and administrative expensesNet losses before tax 53 12 104 25 Tax amounts(14)(3)(27)(7)Net losses after tax$39$9$77$18 Pension and retiree medical items:Amortization of prior service credits$(7)$(8)$(14)$(15)Other pension and retiree medical benefits incomeAmortization of net losses 17 13 33 25 Other pension and retiree medical benefits incomeSettlement losses 2 2 Other pension and retiree medical benefits incomeNet losses before tax 12 5 21 10 Tax amounts(2)(1)(4)(2)Net losses after tax$10$4$17$8 Total net losses reclassified,net of tax$49$13$94$134 Note 12-Supply Chain Financing ArrangementsWe maintain voluntary supply chain finance agreements with several participating global financial institutions.Under these agreements,our suppliers,at their sole discretion,may elect to sell their accounts receivable with PepsiCo to these participating global financial institutions.As of June 15,2024 and December 30,2023,$1.6 billion and$1.7 billion,respectively,of our accounts payable are to suppliers participating in these financing arrangements.For further information on the key terms of these supply chain financing programs,see Note 14 to our consolidated financial statements in our 2023 Form 10-K.Table of Contents23Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations.FINANCIAL REVIEWOur 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 condensed consolidated financial statements and the accompanying notes.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.Our Critical Accounting Policies and EstimatesThe critical accounting policies and estimates below should be read in conjunction with those outlined in our 2023 Form 10-K.Total Marketplace SpendingWe offer sales incentives and discounts through various programs to customers and consumers.Total marketplace spending includes sales incentives,discounts,advertising and other marketing activities.Sales incentives and discounts are primarily accounted for as a reduction of revenue.A number of our sales incentives,such as bottler funding to independent bottlers and customer volume rebates,are based on annual targets,and accruals are established during the year,as products are delivered,for the expected payout,which may occur after year end once reconciled and settled.These accruals are based on contract terms and our historical experience with similar programs and require management judgment with respect to estimating customer and consumer participation and performance levels.Differences between estimated expense and actual incentive costs are normally insignificant and are recognized in earnings in the period such differences are determined.In addition,certain advertising and marketing costs are also based on annual targets and recognized during the year as incurred.For interim reporting,our policy is to allocate our forecasted full-year sales incentives for most of our programs to each of our interim reporting periods in the same year that benefits from the programs.The allocation methodology is based on our forecasted sales incentives for the full year and the proportion of each interim periods actual gross revenue or volume,as applicable,to our forecasted annual gross revenue or volume,as applicable.Based on our review of the forecasts at each interim period,any changes in estimates and the related allocation of sales incentives are recognized beginning in the interim period that they are identified.In addition,we apply a similar allocation methodology for interim reporting purposes for certain advertising and other marketing activities.Income TaxesIn determining our quarterly provision for income taxes,we use an estimated annual effective tax rate which is based on our expected annual income,statutory tax rates and tax structure and transactions,including transfer pricing arrangements,available to us in the various jurisdictions in which we operate.Significant judgment is required in determining our annual tax rate and in evaluating our tax positions.Subsequent recognition,derecognition and measurement of a tax position taken in a previous period are separately recognized in the quarter in which they occur.Our Business RisksThis Form 10-Q contains statements reflecting our views about our future performance that constitute“forward-looking statements”within the meaning of the Private Securities Litigation Reform Act of 1995(Reform Act).Statements that constitute forward-looking statements within the meaning of the Reform Act Table of Contents24are generally identified through the inclusion of words such as“aim,”“anticipate,”“believe,”“drive,”“estimate,”“expect,”“expressed confidence,”“forecast,”“future,”“goal,”“guidance,”“intend,”“may,”“objective,”“outlook,”“plan,”“position,”“potential,”“project,”“seek,”“should,”“strategy,”“target,”“will”or similar statements or variations of such words and other similar expressions.All statements addressing our future operating performance,and statements addressing events and developments that we expect or anticipate will occur in the future,are forward-looking statements within the meaning of the Reform Act.These forward-looking statements are based on currently available information,operating plans and projections about future events and trends.They inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in any such forward-looking statement.Such risks and uncertainties include,but are not limited to:the risks associated with the deadly conflict in Ukraine;future demand for PepsiCos products;damage to PepsiCos reputation or brand image;product recalls or other issues or concerns with respect to product quality and safety;PepsiCos ability to compete effectively;PepsiCos ability to attract,develop and maintain a highly skilled and diverse workforce or effectively manage changes in our workforce;water scarcity;changes in the retail landscape or in sales to any key customer;disruption of PepsiCos manufacturing operations or supply chain,including continued increased commodity,packaging,transportation,labor and other input costs;political,social or geopolitical conditions in the markets where PepsiCos products are made,manufactured,distributed or sold;PepsiCos ability to grow its business in developing and emerging markets;changes in economic conditions in the countries in which PepsiCo operates;future cyber incidents and other disruptions to our information systems;failure to successfully complete or manage strategic transactions;PepsiCos reliance on third-party service providers and enterprise-wide systems;climate change or measures to address climate change and other sustainability matters;strikes or work stoppages;failure to realize benefits from PepsiCos productivity initiatives;deterioration in estimates and underlying assumptions regarding future performance of our business or investments that can result in impairment charges;fluctuations or other changes in exchange rates;any downgrade or potential downgrade of PepsiCos credit ratings;imposition or proposed imposition of new or increased taxes aimed at PepsiCos products;imposition of limitations on the marketing or sale of PepsiCos products;changes in laws and regulations related to the use or disposal of plastics or other packaging materials;failure to comply with personal data protection and privacy laws;increase in income tax rates,changes in income tax laws or disagreements with tax authorities;failure to adequately protect PepsiCos intellectual property rights or infringement on intellectual property rights of others;failure to comply with applicable laws and regulations;potential liabilities and costs from litigation,claims,legal or regulatory proceedings,inquiries or investigations;and other risks and uncertainties including those described in“Item 1A.Risk Factors”and“Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations Our Business Risks,”included in our 2023 Form 10-K and in“Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations Our Business Risks”of this Form 10-Q.Investors are cautioned not to place undue reliance on any such forward-looking statements,which speak only as of the date they are made.We undertake no obligation to update any forward-looking statement,whether as a result of new information,future events or otherwise.Risks Associated with Commodities and Our Supply ChainDuring the 12 and 24 weeks ended June 15,2024,we continued to experience higher operating costs,including on transportation and labor costs,which may continue for the remainder of 2024.Many of the commodities used in the production and transportation of our products are purchased in the open market.The prices we pay for such items are subject to fluctuation,and we manage this risk through the use of fixed-price contracts and purchase orders,pricing agreements and derivative instruments,including swaps and futures.A number of external factors,including the ongoing conflict in Ukraine,the inflationary cost environment,adverse weather conditions,supply chain disruptions and labor shortages,have impacted and Table of Contents25may continue to impact transportation and labor costs.When prices increase,we may or may not pass on such increases to our customers,which may result in reduced volume,revenue,margins and operating results.See Note 9 to our condensed consolidated financial statements in this Form 10-Q and Note 9 to our consolidated financial statements in our 2023 Form 10-K for further information on how we manage our exposure to commodity prices.Risks Associated with Climate ChangeCertain jurisdictions in which our products are made,manufactured,distributed or sold have either imposed,or are considering imposing,new or increased legal and regulatory requirements to reduce or mitigate the potential effects of climate change,including regulation of greenhouse gas emissions and potential carbon pricing programs.These new or increased legal or regulatory requirements,along with initiatives to meet our sustainability goals,could result in significant increased costs and additional investments in facilities and equipment.However,we are unable to predict the scope,nature and timing of any new or increased environmental laws and regulations and therefore cannot predict the ultimate impact of such laws and regulations on our business or financial results.We continue to monitor existing and proposed laws and regulations in the jurisdictions in which our products are made,manufactured,distributed and sold and to consider actions we may take to potentially mitigate the unfavorable impact,if any,of such laws or regulations.Risks Associated with International Operations In the 12 weeks ended June 15,2024,our financial results outside of North America reflect the months of March,April and May.In the 24 weeks ended June 15,2024,our financial results outside of North America reflect the months of January through May.In the 24 weeks ended June 15,2024,our operations outside of the United States generated 42%of our consolidated net revenue,with Mexico,Canada,Russia,China,the United Kingdom,Brazil and South Africa comprising approximately 24%of our consolidated net revenue.As a result,we are exposed to foreign exchange risk in the international markets in which our products are made,manufactured,distributed or sold.In the 12 and 24 weeks ended June 15,2024,unfavorable foreign exchange reduced net revenue growth by 1 percentage point primarily due to declines in the Russian ruble and Egyptian pound,partially offset by an appreciation of the Mexican peso.Currency declines against the U.S.dollar which are not offset could adversely impact our future financial results.In addition,volatile economic,political,social and geopolitical conditions,civil unrest and wars and other military conflicts,acts of terrorism and natural disasters and other catastrophic events in certain markets in which our products are made,manufactured,distributed or sold,including in Argentina,Brazil,China,Mexico,the Middle East,Pakistan,Russia,Turkey and Ukraine,continue to result in challenging operating environments and have resulted in and could continue to result in changes in how we operate in certain of these markets.Debt and credit issues,currency controls or fluctuations in certain of these international markets(including restrictions on the transfer of funds to and from certain markets),as well as the threat or imposition of new or expanded tariffs,sanctions or export controls have also continued to impact our operations in certain of these international markets.We continue to closely monitor the economic,operating and political environment in the markets in which we operate,including risks of additional impairments or write-offs and currency devaluation,and to identify actions to potentially mitigate any unfavorable impacts on our future results.Our operations in Russia accounted for 4%of our consolidated net revenue for both the 12 and 24 weeks ended June 15,2024.Russia accounted for 4%of our consolidated assets,including 11%of our consolidated cash and cash equivalents,and 34%of our accumulated currency translation adjustment loss as of June 15,2024.Table of Contents26See Note 9 to our condensed consolidated financial statements in this Form 10-Q for the fair values of our financial instruments as of June 15,2024 and December 30,2023 and Note 9 to our consolidated financial statements in our 2023 Form 10-K for a discussion of these items.Imposition of Taxes and Regulations on our ProductsCertain jurisdictions in which our products are made,manufactured,distributed or sold have either imposed,or are considering imposing,new or increased taxes or regulations on the manufacture,distribution or sale of our products or their packaging,ingredients or substances contained in,or attributes of,our products or their packaging,commodities used in the production of our products or their packaging or the recyclability or recoverability of our packaging.These taxes and regulations vary in scope and form.For example,some taxes apply to all beverages,including non-caloric beverages,while others apply only to beverages with a caloric sweetener(e.g.,sugar).Further,some regulations apply to all products using certain types of packaging(e.g.,plastic),while others are designed to increase the sustainability of packaging,encourage waste reduction and increased recycling rates or facilitate the waste management process or restrict the sale of products in certain packaging.We sell a wide variety of beverages and convenient foods in more than 200 countries and territories and the profile of the products we sell,the amount of revenue attributable to such products and the type of packaging used vary by jurisdiction.Because of this,we cannot predict the scope or form potential taxes,regulations or other limitations on our products or their packaging may take,and therefore cannot predict the impact of such taxes,regulations or limitations on our financial results.In addition,taxes,regulations and limitations may impact us and our competitors differently.We continue to monitor existing and proposed taxes and regulations in the jurisdictions in which our products are made,manufactured,distributed and sold and to consider actions we may take to potentially mitigate the unfavorable impact,if any,of such taxes,regulations or limitations,including advocating alternative measures with respect to the imposition,form and scope of any such taxes,regulations or limitations.OECD Global Minimum TaxNumerous countries have agreed to a statement in support of the OECD model rules that propose a global minimum tax rate of 15%.Certain countries have enacted legislation incorporating the agreed global minimum tax effective in 2024.Legislation enacted as of June 15,2024 is not expected to have a material impact on our 2024 financial statements.More countries are expected to enact similar legislation,with widespread implementation of a global minimum tax by 2025.As legislation becomes effective in more countries in which we do business,our taxes could increase and negatively impact our provision for income taxes.We will continue to monitor pending legislation and implementation by countries and evaluate the potential impact on our business in future periods.Retail LandscapeOur industry continues to be affected by disruption of the retail landscape,including the continued growth in sales through e-commerce websites and mobile commerce applications,including through subscription services,the integration of physical and digital operations among retailers and the international expansion of hard discounters.We have seen and expect to continue to see a further shift to e-commerce,online-to-offline and other online purchasing by consumers.We continue to monitor changes in the retail landscape and seek to identify actions we may take to build our global e-commerce and digital capabilities,such as expanding our direct-to-consumer business,and distribute our products effectively through all existing and emerging channels of trade and potentially mitigate any unfavorable impacts on our future results.The retail industry also continues to be impacted by the actions and increasing power of retailers,including as a result consolidation of ownership resulting in large retailers or buying groups with increased purchasing power,particularly in North America,Europe and Latin America.We have seen and Table of Contents27expect to continue to see retailers and buying groups impact our ability to compete in these jurisdictions.We continue to monitor our relationships with retailers and buying groups and seek to identify actions we may take to maintain mutually beneficial relationships and resolve any significant disputes and potentially mitigate any unfavorable impacts on our future results.Cautionary statements included above and in“Item 1A.Risk Factors”and“Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations Our Business Risks”in our 2023 Form 10-K should be considered when evaluating our trends and future results.Results of Operations Consolidated ReviewConsolidated ResultsVolumePhysical or unit volume is one of the key metrics management uses internally to make operating and strategic decisions,including the preparation of our annual operating plan and the evaluation of our business performance.We believe volume provides additional information to facilitate the comparison of our historical operating performance and underlying trends and provides additional transparency on how we evaluate our business because it measures demand for our products at the consumer level.See“Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations Our Financial Results Volume”included in our 2023 Form 10-K for further information on volume.Unit volume growth adjusts for the impacts of acquisitions and divestitures.Acquisitions and divestitures,when used in this report,reflect mergers and acquisitions activity,as well as divestitures and other structural changes,including changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees.Further,unit volume growth excludes the impact of an additional week of results every five or six years(53rd reporting week),where applicable.We report all of our international operations on a monthly calendar basis.The 12 weeks ended June 15,2024 and June 17,2023 include volume outside of North America for the months of March,April and May.The 24 weeks ended June 15,2024 and June 17,2023 include volume outside of North America for the months of January through May.Consolidated Net Revenue and Operating Profit 12 Weeks Ended24 Weeks Ended 6/15/20246/17/2023Change6/15/20246/17/2023ChangeNet revenue$22,501$22,322 1%$40,751$40,168 1.5%Operating profit$4,048$3,659 11%$6,765$6,288 8%Operating margin 18.0.4%1.6 16.6.7%0.9 See“Results of Operations Division Review”for a tabular presentation and discussion of key drivers of net revenue.12 Weeks Operating profit increased 11%and operating margin increased 1.6 percentage points.Operating profit growth was primarily driven by effective net pricing,productivity savings and a 3-percentage-point impact of prior-year impairment charges related to our TBG investment.These impacts were partially offset by certain operating cost increases and a decline in organic volume.Table of Contents2824 WeeksOperating profit increased 8%and operating margin increased 0.9 percentage points.Operating profit growth was primarily driven by effective net pricing and productivity savings.These impacts were partially offset by certain operating cost increases and a decline in organic volume.Other Consolidated Results 12 Weeks Ended24 Weeks Ended 6/15/2024 6/17/2023Change6/15/20246/17/2023ChangeOther pension and retiree medical benefits income$56$60$(4)$114$121$(7)Net interest expense and other$234$201$33$436$401$35 Tax rate 20.1!.3 .1!.5%Net income attributable to PepsiCo$3,083$2,748 12%$5,125$4,680 10%Net income attributable to PepsiCo per common share diluted$2.23$1.99 13%$3.71$3.38 10 WeeksOther pension and retiree medical benefits income decreased$4 million,primarily reflecting the recognition of special termination benefits due to restructuring actions as part of our 2019 Productivity Plan,partially offset by the recognition of gains on plan assets and impact of discretionary plan contributions.Net interest expense and other increased$33 million,due to higher interest rates on debt,higher average debt balances and lower gains on the market value of investments used to economically hedge a portion of our deferred compensation liability,partially offset by higher average cash balances and higher interest rates on average cash balances.The reported tax rate decreased 1.2 percentage points,primarily as a result of the release of a valuation allowance in a foreign jurisdiction in the current year,partially offset by the unfavorable impact of reserves for international unrecognized tax benefits.24 WeeksOther pension and retiree medical benefits income decreased$7 million,primarily reflecting the recognition of special termination benefits due to restructuring actions as part of our 2019 Productivity Plan,partially offset by the recognition of gains on plan assets and impact of discretionary plan contributions.Net interest expense and other increased$35 million,due to higher interest rates on debt,higher average debt balances and lower gains on the market value of investments used to economically hedge a portion of our deferred compensation liability,partially offset by higher average cash balances and higher interest rates on average cash balances.The reported tax rate decreased 1.4 percentage points,primarily reflecting the release of a valuation allowance in a foreign jurisdiction in the current year.Results of Operations Division ReviewWhile our financial results in North America are reported on a 12-week basis,all of our international operations are reported on a monthly calendar basis for which the months of March,April and May are reflected in our results for the 12 weeks ended June 15,2024 and June 17,2023,and the months January through May are reflected in our results for the 24 weeks ended June 15,2024 and June 17,2023.Table of Contents29In the discussions of net revenue and operating profit below,“effective net pricing”reflects the year-over-year impact of discrete pricing actions,sales incentive activities and mix resulting from selling varying products in different package sizes and in different countries.See“Our Business Risks,”“Non-GAAP Measures”and“Items Affecting Comparability”for a discussion of items to consider when evaluating our results and related information regarding measures not in accordance with GAAP.Net Revenue and Organic Revenue GrowthOrganic revenue growth is a non-GAAP financial measure.For further information on this measure,see“Non-GAAP Measures.”12 Weeks Ended 6/15/2024Impact ofImpact ofReported%Change,GAAP MeasureForeign exchange translationAcquisitions and divestituresOrganic%Change,Non-GAAP Measure(a)Organic volume(b)Effective net pricingFLNA(0.5)%(4)3 QFNA(c)(18)%(18)%(17)(1)PBNA 1%1%(3.5)5 LatAm 7%(5)2%(5)6 Europe 2.5%5 7%2 5 AMESA 2 (1)12%1 11 APAC(2)%3 1%1.5 Total 1%1 2%(3)5 24 Weeks Ended 6/15/2024Impact ofImpact ofReported%Change,GAAP MeasureForeign exchange translationAcquisitions and divestituresOrganic%Change,Non-GAAP Measure(a)Organic volume(b)Effective net pricingFLNA 0.5%1%(3)3 QFNA(c)(21)%(21)%(20)(1)PBNA 1%1%(4)5 LatAm 10%(6)4%(3)7 Europe 3%5.5 8%2 6 AMESA 2%8 10%2 7 APAC 2%4 6%5 0.5 Total 1.5%1 2%(2)5(a)Amounts may not sum due to rounding.(b)Excludes the impact of acquisitions and divestitures.In certain instances,the impact of organic volume on net revenue growth differs from the unit volume change disclosed in the following divisional discussions due to the impacts of product mix,nonconsolidated joint venture volume,and,for our franchise-owned beverage businesses,temporary timing differences between bottler case sales and concentrate shipments and equivalents(CSE).We report net revenue from our franchise-owned beverage businesses based on CSE.The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.(c)Net revenue decline was impacted by the Quaker Recall.Table of Contents30Operating Profit,Operating Profit Adjusted for Items Affecting Comparability and Operating Profit Performance Adjusted for Items Affecting Comparability on a Constant Currency BasisOperating profit adjusted for items affecting comparability and operating profit performance adjusted for items affecting comparability on a constant currency basis are both non-GAAP financial measures.For further information on these measures,see“Non-GAAP Measures”and“Items Affecting Comparability.”Operating Profit and Operating Profit Adjusted for Items Affecting Comparability12 Weeks Ended 6/15/2024Items Affecting Comparability(a)Reported,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesProduct recall-related impactCore,Non-GAAP MeasureFLNA$1,592$13$1,605 QFNA 85 15 100 PBNA 987 5 992 LatAm 637 16 653 Europe 620 19 639 AMESA 241 3 244 APAC 223 4 227 Corporate unallocated expenses(337)(8)6 (339)Total$4,048$(8)$66$15$4,121 12 Weeks Ended 6/17/2023Items Affecting Comparability(a)Reported,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition and divestiture-related charges(b)Impairment and other charges/credits(b)Core,Non-GAAP MeasureFLNA$1,647$6$1,653 QFNA 129 129 PBNA 723 5 8 113 849 LatAm 592 6 2 600 Europe 476 52 (2)(5)521 AMESA 250 1 251 APAC 223 4 227 Corporate unallocated expenses(381)(9)19 (371)Total$3,659$(9)$92$7$110$3,859 24 Weeks Ended 6/15/2024Items Affecting Comparability(a)Reported,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition and divestiture-related chargesProduct recall-related impactCore,Non-GAAP MeasureFLNA$3,146$35$3,181 QFNA 36 4 182 222 PBNA 1,497 15 2 1,514 LatAm 1,122 21 1,143 Europe 822 37 859 AMESA 393 3 396 APAC 456 4 460 Corporate unallocated expenses(707)(44)36 (715)Total$6,765$(44)$155$2$182$7,060 Table of Contents3124 Weeks Ended 6/17/2023Items Affecting Comparability(a)Reported,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition and divestiture-related charges(b)Impairment and other charges/credits(b)Core,Non-GAAP MeasureFLNA$3,246$13$3,259 QFNA 317 317 PBNA 1,206 10 10 113 1,339 LatAm 956 11 2 969 Europe 547 141 (2)(5)681 AMESA 418 5 1 (13)411 APAC 450 5 455 Corporate unallocated expenses(852)62 20 (770)Total$6,288$62$205$9$97$6,661(a)See“Items Affecting Comparability”for further information.(b)Income amounts represent adjustments for changes in estimates of previously recorded amounts.Operating Profit Performance and Operating Profit Performance Adjusted for Items Affecting Comparability on a Constant Currency Basis12 Weeks Ended 6/15/2024Impact of Items Affecting Comparability(a)Impact ofReported%Change,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition and divestiture-related chargesImpairment and other charges/creditsProduct recall-related impactCore%Change,Non-GAAP Measure(b)Foreign exchangetranslationCore Constant Currency%Change,Non-GAAP Measure(b)FLNA(3)%(3)%(3)%QFNA(34)%(1)12 (23)%(23)%PBNA 37%(1)(18)17%LatAm 8%1 9%(7)2%Europe 30%(9)1.5 23%6 29%AMESA(4)%1 (3)%6 3%APAC%1%4 4%Corporate unallocated expenses(11)%3 (9)%(9)%Total 11%(1)(3)0.5 7%0.5 7$ Weeks Ended 6/15/2024Impact of Items Affecting Comparability(a)Impact ofReported%Change,GAAP MeasureMark-to-market net impactRestructuring and impairment chargesAcquisition and divestiture-related chargesImpairment and other charges/creditsProduct recall-related impactCore%Change,Non-GAAP Measure(b)Foreign exchangetranslationCore Constant Currency%Change,Non-GAAP Measure(b)FLNA(3)%1 (2)%(2)%QFNA(89)%1 58 (30)%(30)%PBNA 24%0.5 (1)(11)13%LatAm 17%1 18%(8)10%Europe 50%(26)1 26%8 34%AMESA(6)%(0.5)3 (4)%5 1%APAC 1%1%4 6%Corporate unallocated expenses(17) (2)(7)%(7)%Total 8%(2)(1)(2)4 6%6%(a)See“Items Affecting Comparability”for further information.(b)Amounts may not sum due to rounding.Table of Contents32FLNA12 WeeksNet revenue decreased 0.5%,primarily driven by a decrease in organic volume,partially offset by effective net pricing.Unit volume declined 4%,primarily driven by mid-single-digit declines in trademark Cheetos,trademark Doritos and trademark Lays,partially offset by double-digit growth in trademark Chesters.Operating profit decreased 3%,primarily reflecting certain operating cost increases,including strategic initiatives,and the decrease in organic volume.These impacts were partially offset by the effective net pricing,productivity savings,and a 2-percentage-point favorable impact of lower commodity costs,primarily driven by cooking oil.24 WeeksNet revenue increased 0.5%,primarily driven by effective net pricing,partially offset by a decrease in organic volume.Unit volume declined 3%,primarily driven by mid-single-digit declines in trademark Lays,trademark Cheetos and trademark Tostitos,partially offset by double-digit growth in trademark Chesters.Operating profit decreased 3%,primarily reflecting certain operating cost increases,including strategic initiatives,and the decrease in organic volume.These impacts were partially offset by the effective net pricing and productivity savings.QFNA12 WeeksNet revenue decreased 18%,primarily driven by a decrease in organic volume,which was negatively impacted by the loss of sales from products included in the Quaker Recall.Unit volume declined 17%,primarily driven by double-digit declines in bars,pancake syrup and mix,oatmeal and ready-to-eat cereals.The unit volume decline in bars and ready-to-eat cereals was negatively impacted by the loss of sales from products included in the Quaker Recall.Operating profit decreased 34%,primarily reflecting the net revenue performance,certain operating cost increases,a 12-percentage-point impact of charges associated with the Quaker Recall and a 6-percentage-point unfavorable impact of commodity costs,partially offset by productivity savings and lower advertising and marketing expenses.24 WeeksNet revenue decreased 21%,primarily driven by a decrease in organic volume,which was negatively impacted by the loss of sales from products included in the Quaker Recall.Unit volume declined 20%,primarily driven by double-digit declines in bars,ready-to-eat cereals,pancake syrup and mix and oatmeal.The unit volume decline in bars and ready-to-eat cereals was negatively impacted by the loss of sales from products included in the Quaker Recall.Operating profit decreased 89%,reflecting a 58-percentage-point impact of charges associated with the Quaker Recall,the net revenue performance,certain operating cost increases and a 4-percentage-point unfavorable impact of commodity costs,partially offset by productivity savings and lower advertising and marketing expenses.Table of Contents33PBNA12 WeeksNet revenue increased 1%,primarily driven by effective net pricing,partially offset by a decrease in organic volume.Unit volume declined 3%,driven by a 5cline in non-carbonated beverage(NCB)volume and a 2cline in carbonated soft drink(CSD)volume.The NCB volume decline primarily reflected mid-single-digit declines in our overall water portfolio and our juice and juice drinks portfolio,a low-single-digit decline in Gatorade sports drinks and a high-single-digit decline in our Lipton ready-to-drink tea portfolio,partially offset by double-digit growth in our energy portfolio.Operating profit increased 37%,primarily driven by productivity savings,the effective net pricing and an 18-percentage-point impact of prior-year impairment charges related to our TBG investment.These impacts were partially offset by certain operating cost increases and the decrease in organic volume.24 WeeksNet revenue increased 1%,primarily driven by effective net pricing,partially offset by a decrease in organic volume.Unit volume declined 4%,driven by a 6cline in NCB volume and a 2cline in CSD volume.The NCB volume decline primarily reflected mid-single-digit declines in Gatorade sports drinks and our overall water portfolio and a high-single-digit decline in our Lipton ready-to-drink tea portfolio,partially offset by double-digit growth in our energy portfolio.Operating profit increased 24%,primarily driven by the effective net pricing and productivity savings.Additionally,impairment charges related to our TBG investment and net unfavorable insurance adjustments in the prior year contributed 11 percentage points and 4 percentage points,respectively,to operating profit growth.These impacts were partially offset by certain operating cost increases,the decrease in organic volume and a 4-percentage-point impact of higher commodity costs.LatAm12 WeeksNet revenue increased 7%,primarily reflecting effective net pricing and a 5-percentage-point impact of favorable foreign exchange,partially offset by a net decline in organic volume.Convenient foods unit volume declined 6%,primarily reflecting double-digit declines in Peru and Argentina,partially offset by low-single-digit growth in Brazil.Additionally,Mexico experienced a mid-single-digit decline.Beverage unit volume grew 2%,primarily reflecting mid-single-digit growth in Mexico and Brazil and high-single-digit growth in Guatemala,partially offset by double-digit declines in Colombia,Argentina and Peru and a mid-single-digit decline in Chile.Operating profit increased 8%,primarily reflecting the effective net pricing,productivity savings and a 7-percentage-point impact of favorable foreign exchange.These impacts were partially offset by certain operating cost increases,the net decline in organic volume and higher advertising and marketing expenses.24 WeeksNet revenue increased 10%,primarily reflecting effective net pricing and a 6-percentage-point impact of favorable foreign exchange,partially offset by a net decline in organic volume.Table of Contents34Convenient foods unit volume declined 4%,primarily reflecting double-digit declines in Peru and Argentina,partially offset by low-single-digit growth in Brazil.Additionally,Mexico experienced a low-single-digit decline.Beverage unit volume grew 2%,primarily reflecting mid-single-digit growth in Mexico and Brazil and high-single-digit growth in Guatemala,partially offset by a double-digit decline in Colombia,a high-single-digit decline in Argentina,a mid-single-digit decline in Peru and a low-single-digit decline in Chile.Operating profit increased 17%,primarily reflecting the effective net pricing,productivity savings,an 8-percentage-point impact of favorable foreign exchange and a 3-percentage-point favorable impact of lower commodity costs.These impacts were partially offset by certain operating cost increases,the net decline in organic volume and higher advertising and marketing expenses.Europe12 WeeksNet revenue increased 2.5%,primarily reflecting effective net pricing and organic volume growth,partially offset by a 5-percentage-point impact of unfavorable foreign exchange.Convenient foods unit volume grew 5%,primarily reflecting double-digit growth in Russia and high-single-digit growth in Turkey,partially offset by a low-single-digit decline in the Netherlands.Additionally,the United Kingdom experienced low-single-digit growth and France experienced mid-single-digit growth.Beverage unit volume grew 1%,primarily reflecting mid-single-digit growth in Russia and low-single-digit growth in the United Kingdom,partially offset by mid-single-digit declines in Germany and France and a low-single-digit decline in Turkey.Operating profit increased 30%,primarily reflecting the net revenue growth,productivity savings and a 9-percentage-point favorable impact of lower restructuring charges.These impacts were partially offset by certain operating cost increases,a 6-percentage-point impact of unfavorable foreign exchange and a 6-percentage-point impact of higher commodity costs.24 WeeksNet revenue increased 3%,primarily reflecting effective net pricing and organic volume growth,partially offset by a 5.5-percentage-point impact of unfavorable foreign exchange.Convenient foods unit volume grew 4%,primarily reflecting double-digit growth in Russia and high-single-digit growth in Turkey,partially offset by a high-single-digit decline in France and a low-single-digit decline in the Netherlands.Additionally,the United Kingdom experienced low-single-digit growth.Beverage unit volume grew 3%,primarily reflecting double-digit growth in Russia and mid-single-digit growth in Turkey and the United Kingdom,partially offset by a double-digit decline in France and a slight decline in Germany.Operating profit increased 50%,primarily reflecting the net revenue growth,a 26-percentage-point favorable impact of lower restructuring charges and productivity savings.These impacts were partially offset by certain operating cost increases,a 9-percentage-point impact of higher commodity costs and an 8-percentage-point impact of unfavorable foreign exchange.Table of Contents35AMESA12 WeeksNet revenue increased 2%,primarily reflecting effective net pricing and organic volume growth,partially offset by an 11-percentage-point impact of unfavorable foreign exchange,driven primarily by the weakening of the Egyptian pound.Convenient foods unit volume grew 1%,primarily reflecting double-digit growth in India and low-single-digit growth in South Africa,partially offset by a double-digit decline in the Middle East and a low-single-digit decline in Pakistan.Beverage unit volume grew 2%,primarily reflecting double-digit growth in India,partially offset by a high-single-digit decline in Pakistan,a low-single-digit decline in the Middle East and a mid-single-digit decline in Nigeria.Operating profit decreased 4%,primarily reflecting certain operating cost increases,a 28-percentage-point impact of higher commodity costs,primarily packaging materials,potatoes and sweeteners,largely driven by transaction-related foreign exchange,and a 6-percentage-point impact of unfavorable foreign exchange translation.These impacts were partially offset by the net revenue growth and productivity savings.24 WeeksNet revenue increased 2%,primarily reflecting effective net pricing and organic volume growth,partially offset by an 8-percentage-point impact of unfavorable foreign exchange.Convenient foods unit volume grew 2%,primarily reflecting double-digit growth in India and low-single-digit growth in South Africa,partially offset by a double-digit decline in the Middle East.Additionally,Pakistan experienced slight growth.Beverage unit volume grew 2%,primarily reflecting double-digit growth in India,partially offset by a double-digit decline in Pakistan and a low-single-digit decline in Nigeria.Additionally,the Middle East experienced low-single-digit growth.Operating profit decreased 6%,primarily reflecting certain operating cost increases,a 24-percentage-point impact of higher commodity costs,primarily packaging materials,potatoes and sweeteners,largely driven by transaction-related foreign exchange,and a 5-percentage-point impact of unfavorable foreign exchange translation.These impacts were partially offset by the net revenue growth and productivity savings.APAC12 WeeksNet revenue decreased 2%,primarily reflecting a 3-percentage-point impact of unfavorable foreign exchange,partially offset by effective net pricing.Convenient foods unit volume declined 1%,primarily reflecting a mid-single-digit decline in China,partially offset by mid-single-digit growth in Australia and Thailand.Beverage unit volume grew 1%,primarily reflecting mid-single-digit growth in Vietnam and the Philippines and high-single-digit growth in Thailand,partially offset by a low-single-digit decline in China.Operating profit decreased slightly,primarily reflecting certain operating cost increases,partially offset by productivity savings.Table of Contents3624 WeeksNet revenue increased 2%,primarily reflecting organic volume growth and effective net pricing,partially offset by a 4-percentage-point impact of unfavorable foreign exchange.Convenient foods unit volume grew 6%,primarily reflecting high-single-digit growth in China and mid-single-digit growth in Australia.Additionally,Thailand experienced mid-single-digit growth.Beverage unit volume grew slightly,primarily reflecting high-single-digit growth in Vietnam,double-digit growth in Thailand and mid-single-digit growth in the Philippines,partially offset by a low-single-digit decline in China.Operating profit increased 1%,primarily reflecting the net revenue growth,productivity savings and a 3-percentage-point favorable impact of lower commodity costs.These impacts were partially offset by certain operating cost increases,higher advertising and marketing expenses and a 4-percentage-point impact of unfavorable foreign exchange.Non-GAAP MeasuresCertain financial measures contained in this Form 10-Q adjust for the impact of specified items and are not in accordance with GAAP.We use non-GAAP financial measures internally to make operating and strategic decisions,including the preparation of our annual operating plan,evaluation of our overall business performance and as a factor in determining compensation for certain employees.We believe presenting non-GAAP financial measures in this Form 10-Q provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results and provides additional transparency on how we evaluate our business.We also believe presenting these measures in this Form 10-Q allows investors to view our performance using the same measures that we use in evaluating our financial and business performance and trends.We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends.Examples of items for which we may make adjustments include:amounts related to mark-to-market gains or losses(non-cash);charges related to restructuring plans;charges associated with acquisitions and divestitures;gains associated with divestitures;asset impairment charges(non-cash);product recall-related impact;pension and retiree medical-related amounts,including all settlement and curtailment gains and losses;charges or adjustments related to the enactment of new laws,rules or regulations,such as tax law changes;amounts related to the resolution of tax positions;tax benefits related to reorganizations of our operations;debt redemptions,cash tender or exchange offers;and remeasurements of net monetary assets.See below and“Items Affecting Comparability”for a description of adjustments to our GAAP financial measures in this Form 10-Q.Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.In addition,our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.The following non-GAAP financial measures contained in this Form 10-Q are discussed below:Cost of sales,gross profit,selling,general and administrative expenses,other pension and retiree medical benefits income,provision for income taxes,net income attributable to noncontrolling interests and net income attributable to PepsiCo,each adjusted for items affecting comparability,operating profit and net income attributable to PepsiCo per common share diluted,each adjusted for items affecting comparability and the corresponding constant currency growth ratesThese measures exclude the net impact of mark-to-market gains and losses on centrally managed Table of Contents37commodity derivatives that do not qualify for hedge accounting,restructuring and impairment charges related to our 2019 Productivity Plan,charges associated with our acquisitions and divestitures,impairment and other charges/credits,product recall-related impact and the impact of settlement losses related to pension and retiree medical plans(see“Items Affecting Comparability”for a detailed description of each of these items).We also evaluate performance on operating profit and net income attributable to PepsiCo per common share diluted,each adjusted for items affecting comparability on a constant currency basis,which measure our financial results assuming constant foreign currency exchange rates used for translation based on the rates in effect for the comparable prior-year period.In order to compute our constant currency results,we multiply or divide,as appropriate,our current-year U.S.dollar results by the current-year average foreign exchange rates and then multiply or divide,as appropriate,those amounts by the prior-year average foreign exchange rates.We believe these measures provide useful information in evaluating the results of our business because they exclude items that we believe are not indicative of our ongoing performance or that we believe impact comparability with the prior year.Organic revenue growthWe define organic revenue growth as a measure that adjusts for the impacts of foreign exchange translation,acquisitions and divestitures and where applicable,the impact of the 53rd reporting week.We believe organic revenue growth provides useful information in evaluating the results of our business because it excludes items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior year.See“Net Revenue and Organic Revenue Growth”in“Results of Operations Division Review”for further information.Free cash flowWe define free cash flow as net cash from operating activities less capital spending,plus sales of property,plant and equipment.Since net capital spending is essential to our product innovation initiatives and maintaining our operational capabilities,we believe that it is a recurring and necessary use of cash.As such,we believe investors should also consider net capital spending when evaluating our cash from operating activities.Free cash flow is used by us primarily for acquisitions and financing activities,including debt repayments,dividends and share repurchases.Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure.See“Free Cash Flow”in“Our Liquidity and Capital Resources”for further information.Items Affecting ComparabilityOur reported financial results in this Form 10-Q are impacted by the following items in each of the following periods:12 Weeks Ended 6/15/2024Cost of salesGross profitSelling,general and administrative expensesOperating profitOther pension and retiree medical benefits incomeProvision for income taxes(a)Net income attributable to noncontrolling interestsNet income attributable to
2024-08-06
56页
5星级
RESULTSRESULTSOF THE SECOND OF THE SECOND QUARTER AND FIRST QUARTER AND FIRST HALF 2024HALF 2024WORK.
2024-08-06
83页
5星级
FY2024 1QAEON CO.,LTDJuly 12,2024Presentation MaterialsCopyright 2024 AEON CO.,LTD.All Rights Reserv.
2024-08-06
23页
5星级
ContentsChairmans Statement2Corporate Information5Report of the Directors6Management Discussion and .
2024-08-06
61页
5星级
Meta Reports Second Quarter 2024 ResultsMENLO PARK,Calif.July 31,2024 Meta Platforms,Inc.(Nasdaq:MET.
2024-08-06
10页
5星级
Q1 2024 SalesApril 24th,2024April 24,2024Q1 2024 SALES2Q1 2024:Solid execution of strategic roadmapG.
2024-08-06
16页
5星级
Jul 25,2024Hyundai Motor Company Hyundai Motor Company Q2 2024 Business ResultsQ2 2024 Business Resu.
2024-08-06
17页
5星级
Q1 Trading Statement 2024/25 Serving our customers,communities and planet a little better every day.
2024-08-06
3页
5星级
stApril 16,2024Cautionary note on Forward-looking statementsThis presentation contains“forward-looki.
2024-08-06
20页
5星级
Apr 25,2024Hyundai Motor Company Hyundai Motor Company Q1 2024 Business ResultsQ1 2024 Business Resu.
2024-08-06
17页
5星级
Meta Reports First Quarter 2024 ResultsMENLO PARK,Calif.April 24,2024 Meta Platforms,Inc.(Nasdaq:MET.
2024-08-06
10页
5星级
H1 2024 ResultsQ2 2024 SalesJuly 24th,2024Key takeawaysAlexandre Bompard,Chairman&CEOJuly 24,2024H1 .
2024-08-06
33页
5星级
Interim Report 2023中期報告香港聯合交易所股票代碼：00883（港幣櫃台）及80883（人民幣櫃台）上海證券交易所股票代碼：600938Registered Office65/F,B.
2024-08-06
76页
5星级
24 July 2024SECOND QUARTER 2024 RESULTSPRESS RELEASERESULTS AS AT 30 JUNE 2024 PRESS RELEASE Paris,2.
2024-08-06
27页
5星级
=AchievedPOTENTIAL APPROVALS US/EUPLANNED SUBMISSIONS US/EUPOTENTIAL CLINICAL DATASum of Check Chan.
2024-08-06
23页
5星级
news releaseChevron Reports First Quarter 2024 Results Reported earnings of$5.5 billion;adjusted ear.
2024-08-05
10页
5星级
1 MMMMMa a a a ay y y y y 1 1 1 1 10 0 0 0 0,2 2 2 2 20 0 0 0 02 2 2 2 24 4 4 4 4H H H H HO O O O O.
2024-08-05
13页
5星级
罗兰贝格：预见2026：中国行业趋势报告（90页）.pdf
智源研究院：2026十大AI技术趋势报告（34页）.pdf
中国互联网协会：智能体应用发展报告（2025）（124页）.pdf
三个皮匠报告：2025银发经济生态：中国与全球实践白皮书（150页）.pdf
三个皮匠报告：2025中国商业航天市场洞察报告-中国商业航天新格局全景洞察（25页）.pdf
国声智库：全球AI创造力发展报告2025（77页）.pdf
中国电子技术标准化研究院：2025知识图谱与大模型融合实践案例集（354页）.pdf
三个皮匠报告：2025中国情绪消费市场洞察报告（24页）.pdf
中国银行：2026中国高净值人群财富管理白皮书（66页）.pdf
亿欧智库：2025全球人工智能技术应用洞察报告（43页）.pdf
0731-84720580
商务合作：really158d
友链申请 (QQ)：1737380874
最新报告
中英对照
全文搜索
报告精选
PDF上传翻译
多格式文档互转
入驻&报告售卖
会员权益
机构报告
券商研报
财报库
专题合集
英文报告
数据图表
会议报告
其他资源
研报
新质生产力
DeepSeek
低空经济
大模型
AI Agent
AI Infra
具身智能
自动驾驶
宠物
银发经济
人形机器人
企业出海
算力
微短剧
薪酬
白皮书
创新药
行业分析
个股研究
年报财报
IPO招股书
会议纪要
宏观策略
政策法规
其他
人工智能
信息科技
互联网
消费经济
汽车交通
电商零售
传媒娱乐
医疗健康
投资金融
能源环境
地产建筑
传统产业
英文报告
其它
行业聚焦
芯片产业
热点概念
全球咨询智库
人工智能
500强
新质生产力
会议峰会
新能源汽车
企业年报
互联网
公司研究
行业综观
消费教育
科技通信
医药健康
人力资源
投资金融
汽车产业
物流地产
电子商务
传统产业
传媒营销
其它
十五五规划系列报告合集（共48套打包）
2026低空经济/低空产业报告合集（共47套打包）
AI、科技与通信
广告、传媒与营销
消费、零售与支付
HR、文化与旅游
金融、保险与投资
能源、环境与工业
医疗制药与大健康
物流、地产与建筑
其他行业
AI ▪ 科技 ▪ 通信
数字化
金融财经
智能制造
电商传媒
地产建筑
医疗医学
能源化工
其他行业
收藏
下载
2026-02-02
AI查数
行业数据
政策法规
商业模式
产业链
竞争格局
市场规模
产业概述
其它
2026年
AI读财报
年报
一季报
半年报
三季报
IPO招股书
社会责任报告
A股
IPO申报
港股
美股&全球
新三板
微信扫码登录
手机快捷登录
账号登录
