chunk_id string | chunk string | source_url string | title string | chunk_idx int64 | chunk_start_char int64 | chunk_end_char int64 |
|---|---|---|---|---|---|---|
000000116::1 | CONSOLIDATED BALANCE SHEETS
As of December 31,
2022 2021
(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents $ 7,776 $ 5,197
Short-term investments 3,092 4,303
Accounts receivable, net 963 800
Loans and interest receivable, net of allowances of $598 and $491 as of December 31, 2022 and 2021 | 000000116 | 1 | 22 | 342 | |
000000116::2 | ,
respectively 7,431 4,846
Funds receivable and customer accounts 36,357 36,141
Prepaid expenses and other current assets 1,898 1,287
Total current assets 57,517 52,574
Long-term investments 5,018 6,797
Property and equipment, net 1,730 1,909
Goodwill 11,209 11,454
| 000000116 | 2 | 342 | 608 | |
000000116::3 | Intangible assets, net 788 1,332
Other assets 2,455 1,737
Total assets $ 78,717 $ 75,803
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 126 $ 197
Funds payable and amounts due to customers 40,107 38,841
Accrued expenses and other current liabilities 4,055 3,755
Income taxes payable 813 23 | 000000116 | 3 | 608 | 913 | |
000000116::4 | 6
Total current liabilities 45,101 43,029
Deferred tax liability and other long-term liabilities 2,925 2,998
Long-term debt 10,417 8,049
Total liabilities 58,443 54,076 | 000000116 | 4 | 913 | 1,081 | |
000000117::0 | Table of Contents
Consolidated Statement of Cash Flows
PepsiCo, Inc. | 000000117 | 0 | 0 | 68 | |
000000117::1 | Subsidiaries
Fiscal years ended December 25, 2021, December 26, 2020 and December 28, 2019
(in millions)
2021
2020
2019
Operating Activities
Net income
$
7,679 $
7,175 $
7,353
Depreciation and amortization
2,710
2,548
2,432
Operating lease right-of-use asset amortization
505
47 | 000000117 | 1 | 72 | 356 | |
000000117::2 | 8
412
Share-based compensation expense
301
264
237
Restructuring and impairment charges
247
289
370
Cash payments for restructuring charges
(256)
(255)
(350)
Acquisition and divestiture-related charges
(4)
255
55
Cash payments for acquisition and divestiture-related charges
(176)
(131)
(10)
Pension and retire... | 000000117 | 2 | 356 | 706 | |
000000117::3 | 08
519
Pension and retiree medical plan contributions
(785)
(562)
(716)
Deferred income taxes and other tax charges and credits
298
361
453
Tax expense/(benefit) related to the TCJ Act
190
—
(8)
Tax payments related to the TCJ Act
(309)
(78)
(423)
Change in assets and liabilities:
Accounts and notes receivable
(... | 000000117 | 3 | 706 | 1,035 | |
000000117::4 | )
(650)
Inventories
(582)
(516)
(190)
Prepaid expenses and other current assets
159
26
(87)
Accounts payable and other current liabilities
1,762
766
735
Income taxes payable
30
(159)
(287)
Other, net
375
164
(196)
Net Cash Provided by Operating Activities
11,616
10,613 | 000000117 | 4 | 1,035 | 1,313 | |
000000117::5 |
9,649
Investing Activities
Capital spending
(4,625)
(4,240)
(4,232)
Sales of property, plant and equipment
166
55
170
Acquisitions, net of cash acquired, and investments in noncontrolled affiliates
(61)
(6,372)
(2,717)
Divestitures and sales of investments in noncontrolled affiliates
169
6
253
Short-term inves... | 000000117 | 5 | 1,313 | 1,685 | |
000000117::6 | - purchases
—
(1,135)
—
More than three months - maturities
1,135
—
16
More than three months - sales
—
—
62
Three months or less, net
(58)
27
19
Other investing, net
5
40
(8)
Net Cash Used for Investing Activities
(3,269)
(11,619)
(6,437)
(Continued on following page)
61 | 000000117 | 6 | 1,685 | 1,970 | |
000000118::0 | Forward-Looking Statements
This Annual Report on Form 10-K 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 withi... | 000000118 | 0 | 0 | 577 | |
000000118::1 | look,” “plan,” “position,” “potential,” “project,” “seek,”“should,” “strategy,” “target,” “will” or similar statements or variations of such words and other similar expressions. | 000000118 | 1 | 577 | 754 | |
000000118::2 | Allstatements addressing our future operating performance, and statements addressing events and developments that we expect oranticipate will occur in the future, are forward-looking statements within the meaning of the Reform Act. These forward-lookingstatements are based on currently available information, operating ... | 000000118 | 2 | 755 | 1,405 | |
000000118::3 | Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business– Our Business Risks.” Investors are cautioned not to place undue reliance on any such forward-looking statements, which speakonly as of the date they are made. We undertake no obligation to update any forward-looking st... | 000000118 | 3 | 1,406 | 2,012 | |
000000118::4 | When used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its consolidatedsubsidiaries, collectively. Certain terms used in this Annual Report on Form 10-K are defined in the Glossary included in Item 7.of this report.
Company Overview
We were incorporated in Delaware in ... | 000000118 | 4 | 2,013 | 2,383 | |
000000118::5 | We are a leading global beverage andconvenient food company with a complementary portfolio of brands, including Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola,Mountain Dew, Quaker and SodaStream. Through our operations, authorized bottlers, contract manufacturers and other thirdparties, we make, market, distribute and s... | 000000118 | 5 | 2,384 | 2,832 | |
000000118::6 | Our Operations
We 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 andCanada;
2)
Quaker Foods North America (QFNA), which includes our branded convenient food businesses... | 000000118 | 6 | 2,833 | 3,385 | |
000000118::7 | 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;___FINANCEBENCH_DELIMITER___6)
Africa, Middle East and South Asia (AMESA), which includes all of our beverage and convenient food businesses inAfrica, the... | 000000118 | 7 | 3,385 | 3,932 | |
000000119::0 | Item 3. Legal Proceedings.
We and our subsidiaries are party to a variety of litigation, claims, legal or regulatory proceedings, inquiries and investigations.While the results of such litigation, claims, legal or regulatory proceedings, inquiries and investigations cannot be predicted withcertainty, management believe... | 000000119 | 0 | 0 | 543 | |
000000120::0 | Note 3 — Restructuring and Impairment Charges
2019 Multi-Year Productivity Plan
We publicly announced a multi-year productivity plan on February 15, 2019 (2019 Productivity Plan) that will leverage newtechnology and business models to further simplify, harmonize and automate processes; re-engineer our go-to-market andi... | 000000120 | 0 | 0 | 485 | |
000000120::1 | To build on the successful implementation of the 2019 Productivity Plan, in the fourthquarter of 2022, we expanded and extended the plan through the end of 2028 to take advantage of additional opportunities withinthe initiatives described above.
As a result, we expect to incur pre-tax charges of approximately $3.65 bil... | 000000120 | 1 | 486 | 869 | |
000000120::2 | These pre-tax charges are expected to consist of approximately
55% of severance andother employee-related costs, 10% for asset impairments (all non-cash) resulting from plant closures and related actions and 35%for other co
sts associated with the implementation of our initiatives. | 000000120 | 2 | 870 | 1,152 | |
000000120::3 | The total plan pre-tax charges are expected to be incurred by division approximately as follows:
FLNA
QFNA
PBNA
LatAm
Europe
AMESA
APAC
Corporate
Expected pre-tax charges
15
%
1
%
25
%
10
%
25
%
5
%
4
%
15
%
A summary of our 2019 Productivity Plan charges is as follows:
2022
2021
2020
Cost of sales
$
33
$
2 | 000000120 | 3 | 1,153 | 1,461 | |
000000120::4 | 9
$
30
Selling, general and administrative expenses
347
208
239
Other pension and retiree medical benefits expense
31
10
20
Total restructuring and impairment charges
$
411
$
247
$
289 | 000000120 | 4 | 1,461 | 1,645 | |
000000121::0 | Table of Contents
Consolidated Statement of Income
PepsiCo, Inc. | 000000121 | 0 | 0 | 64 | |
000000121::1 | Subsidiaries
Fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020
(in millions except per share amounts)
2022
2021
2020
Net Revenue
$
86,392 $
79,474 $
70,372
Cost of sales
40,576
37,075
31,797
Gross profit
45,816
| 000000121 | 1 | 68 | 313 | |
000000121::2 | 42,399
38,575
Selling, general and administrative expenses
34,459
31,237
28,453
Gain associated with the Juice Transaction (see Note 13)
(3,321)
—
—
Impairment of intangible assets (see Notes 1 and 4)
3,166
—
42
Operating Profit
11,512
11,162
10,080
Other pension and retiree medical benefits | 000000121 | 2 | 313 | 618 | |
000000121::3 | income
132
522
117
Net interest expense and other
(939)
(1,863)
(1,128)
Income before income taxes
10,705
9,821
9,069
Provision for income taxes
1,727
2,142
1,894
Net income
8,978
7,679
7,175
Less: Net income attributable to noncontrolling interests
68
61
| 000000121 | 3 | 618 | 889 | |
000000121::4 | 55
Net Income Attributable to PepsiCo
$
8,910 $
7,618 $
7,120
Net Income Attributable to PepsiCo per Common Share
Basic
$
6.45 $
5.51 $
5.14
Diluted
$
6.42 $
5.49 $
5.12
Weighted-average common shares outstanding
Basic
1,380
1,382
1,385
Diluted
1,387
1 | 000000121 | 4 | 889 | 1,149 | |
000000121::5 | ,389
1,392
See accompanying notes to the consolidated financial statements. | 000000121 | 5 | 1,149 | 1,226 | |
000000121::6 | 60___FINANCEBENCH_DELIMITER___Table of Contents
Consolidated Statement of Cash Flows
PepsiCo, Inc. | 000000121 | 6 | 1,227 | 1,325 | |
000000121::7 | Subsidiaries
Fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020
(in millions)
2022
2021
2020
Operating Activities
Net income
$
8,978 $
7,679 $
7,175
Depreciation and amortization
2,763
2,710
2,548
Gain associated with the Juice Transaction
(3,321)
| 000000121 | 7 | 1,329 | 1,609 | |
000000121::8 | —
—
Impairment and other charges
3,618
—
—
Operating lease right-of-use asset amortization
517
505
478
Share-based compensation expense
343
301
264
Restructuring and impairment charges
411
247
289
Cash payments for restructuring charges
(224)
(256)
(255)
Acquisition and divestiture-related charges
80
(4)... | 000000121 | 8 | 1,609 | 1,972 | |
000000121::9 | estiture-related charges
(46)
(176)
(131)
Pension and retiree medical plan expenses
419
123
408
Pension and retiree medical plan contributions
(384)
(785)
(562)
Deferred income taxes and other tax charges and credits
(873)
298
361
Tax expense related to the TCJ Act
86
190
—
Tax payments related to the TCJ Act
(... | 000000121 | 9 | 1,972 | 2,298 | |
000000121::10 | 309)
(78)
Change in assets and liabilities:
Accounts and notes receivable
(1,763)
(651)
(420)
Inventories
(1,142)
(582)
(516)
Prepaid expenses and other current assets
118
159
26
Accounts payable and other current liabilities
1,842
1,762
766
Income taxes payable
57
30
(159)
Other, net | 000000121 | 10 | 2,298 | 2,591 | |
000000121::11 |
(359)
375
164
Net Cash Provided by Operating Activities
10,811
11,616
10,613
Investing Activities
Capital spending
(5,207)
(4,625)
(4,240)
Sales of property, plant and equipment
251
166
55
Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of
intangible and other assets
(... | 000000121 | 11 | 2,591 | 2,922 | |
000000121::12 | 6,372)
Proceeds associated with the Juice Transaction
3,456
—
—
Other divestitures, sales of investments in noncontrolled affiliates and other assets
49
169
6
Short-term investments, by original maturity:
More than three months - purchases
(291)
—
(1,135)
More than three months - maturities
150
1,135
—
Three ... | 000000121 | 12 | 2,922 | 3,300 | |
000000121::13 | 5
40
Net Cash Used for Investing Activities
(2,430)
(3,269)
(11,619)
(Continued on following page)
62 | 000000121 | 13 | 3,300 | 3,403 | |
000000122::0 | (8) The shareholder proposal regarding a congruency report on net-zero emissions policies was defeated:
For
19,718,780
Against
977,228,788 | 000000122 | 0 | 0 | 138 | |
000000123::0 | Effective May 26, 2023, PepsiCo terminated the $3,800,000,000 five year unsecured revolving credit agreement, dated as of May 27, 2022, amongPepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent (the “
2022 Five Year Credit Agreement
”). There were nooutstanding borrowings under t... | 000000123 | 0 | 0 | 386 | |
000000123::1 | On May 26, 2023, PepsiCo entered into a new $4,200,000,000 five year unsecured revolving credit agreement (the “
2023 Five Year CreditAgreement
”) among PepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent. The 2023 Five Year Credit Agreementenables PepsiCo and its borrowing subs... | 000000123 | 1 | 387 | 754 | |
000000123::2 | Dollars and/or Euros, including a $750,000,000 swing linesubfacility for Euro-denominated borrowings permitted to be borrowed on a same day basis, subject to customary terms and conditions, and expires onMay 26, 2028. PepsiCo may also, upon the agreement of either the then existing lenders or of additional banks not cu... | 000000123 | 2 | 755 | 1,226 | |
000000123::3 | Dollars and/or Euros. PepsiComay, once a year, request renewal of the 2023 Five Year Credit Agreement for an additional one year period. Subject to certain conditions stated in the 2023Five Year Credit Agreement, PepsiCo and its borrowing subsidiaries may borrow, prepay and reborrow amounts under the 2023 Five Year Cre... | 000000123 | 3 | 1,227 | 1,759 | |
000000123::4 | The 2023 Five Year Credit Agreement contains customary representations and warrantiesand events of default. In the ordinary course of their respective businesses, the lenders under the 2023 Five Year Credit Agreement and their affiliates haveengaged, and may in the future engage, in commercial banking and/or investment... | 000000123 | 4 | 1,760 | 2,134 | |
000000124::0 | Item 8.01.
Other Events.
Effective May 26, 2023, PepsiCo, Inc. (“
PepsiCo
”) terminated the $3,800,000,000 364 day unsecured revolving credit agreement, dated as ofMay 27, 2022, among PepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent (the “
2022 364 Day CreditAgreement
”). | 000000124 | 0 | 0 | 316 | |
000000124::1 | There were no outstanding borrowings under the 2022 364 Day Credit Agreement at the time of its termination.
On May 26, 2023, PepsiCo entered into a new $4,200,000,000 364 day unsecured revolving credit agreement (the “
2023 364 Day CreditAgreement
”) among PepsiCo, as borrower, the lenders party thereto, and Citibank,... | 000000124 | 1 | 317 | 668 | |
000000124::2 | The 2023 364 Day Credit Agreementenables PepsiCo and its borrowing subsidiaries to borrow up to $4,200,000,000 in U.S. Dollars and/or Euros, subject to customary terms and conditions,and expires on May 24, 2024. | 000000124 | 2 | 669 | 880 | |
000000124::3 | PepsiCo may also, upon the agreement of either the then existing lenders or of additional banks not currently party to the2023 364 Day Credit Agreement, increase the commitments under the 2023 364 Day Credit Agreement to up to $4,950,000,000 in U.S. Dollars and/orEuros. | 000000124 | 3 | 881 | 1,151 | |
000000124::4 | PepsiCo may request renewal of the 2023 364 Day Credit Agreement for an additional 364 day period or convert any amounts outstanding into aterm 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. | 000000124 | 4 | 1,152 | 1,431 | |
000000124::5 | Subject tocertain conditions stated in the 2023 364 Day Credit Agreement, PepsiCo and its borrowing subsidiaries may borrow, prepay and reborrow amounts underthe 2023 364 Day Credit Agreement at any time during the term of the 2023 364 Day Credit Agreement. Funds borrowed under the 2023 364 Day CreditAgreement may be u... | 000000124 | 5 | 1,432 | 1,925 | |
000000124::6 | In the ordinary course of their respective businesses, the lenders under the 2023 364 Day CreditAgreement and their affiliates have engaged, and may in the future engage, in commercial banking and/or investment banking transactions with PepsiCoand its affiliates. | 000000124 | 6 | 1,926 | 2,189 | |
000000124::7 | Effective May 26, 2023, PepsiCo terminated the $3,800,000,000 five year unsecured revolving credit agreement, dated as of May 27, 2022, amongPepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent (the “
2022 Five Year Credit Agreement
”). There were nooutstanding borrowings under t... | 000000124 | 7 | 2,190 | 2,576 | |
000000124::8 | On May 26, 2023, PepsiCo entered into a new $4,200,000,000 five year unsecured revolving credit agreement (the “
2023 Five Year CreditAgreement
”) among PepsiCo, as borrower, the lenders party thereto, and Citibank, N.A., as administrative agent. The 2023 Five Year Credit Agreementenables PepsiCo and its borrowing subs... | 000000124 | 8 | 2,577 | 2,944 | |
000000124::9 | Dollars and/or Euros, including a $750,000,000 swing linesubfacility for Euro-denominated borrowings permitted to be borrowed on a same day basis, subject to customary terms and conditions, and expires onMay 26, 2028. PepsiCo may also, upon the agreement of either the then existing lenders or of additional banks not cu... | 000000124 | 9 | 2,945 | 3,416 | |
000000124::10 | Dollars and/or Euros. PepsiComay, once a year, request renewal of the 2023 Five Year Credit Agreement for an additional one year period. Subject to certain conditions stated in the 2023Five Year Credit Agreement, PepsiCo and its borrowing subsidiaries may borrow, prepay and reborrow amounts under the 2023 Five Year Cre... | 000000124 | 10 | 3,417 | 3,949 | |
000000124::11 | The 2023 Five Year Credit Agreement contains customary representations and warrantiesand events of default. In the ordinary course of their respective businesses, the lenders under the 2023 Five Year Credit Agreement and their affiliates haveengaged, and may in the future engage, in commercial banking and/or investment... | 000000124 | 11 | 3,950 | 4,324 | |
000000125::0 | “We are very pleased with our performance and business momentum as our categories and
geographies remained resilient during the first quarter. Given our strong start to the year, we
now expect our full-year 2023 organic revenue to increase 8 percent (previously 6 percent) and
core constant currency EPS to increase 9 pe... | 000000125 | 0 | 0 | 388 | |
000000126::0 | As of December 31,
(MILLIONS, EXCEPT PER COMMON SHARE DATA) 2021 2020
Assets
Cash and cash equivalents $ 1,944 $ 1,786
Short-term investments 29,125 10,437
Trade accounts receivable, less allowance for doubtful accounts: 2021—$492; 2020—$508 11,479 7,913
Inventories 9,059 8,0 | 000000126 | 0 | 0 | 276 | |
000000126::1 | 20
Current tax assets 4,266 3,264
Other current assets 3,820 3,646
Total current assets 59,693 35,067
Equity-method investments 16,472 16,856
Long-term investments 5,054 3,406
Property, plant and equipment 14,882 13,745 | 000000126 | 1 | 276 | 495 | |
000000127::0 | Year Ended December 31,
(MILLIONS, EXCEPT PER COMMON SHARE DATA) 2021 2020 2019
Revenues $ 81,288 $ 41,651 $ 40,905
Costs and expenses:
Cost of sales(a) 30,821 8,484 8,054
Selling, informational and administrative expenses(a) 12,703 11,597 12,726
Research and development expenses | 000000127 | 0 | 0 | 280 | |
000000127::1 | (a) 13,829 9,393 8,385
Amortization of intangible assets 3,700 3,348 4,429
Restructuring charges and certain acquisition-related costs 802 579 601
(Gain) on completion of Consumer Healthcare JV transaction — (6) (8,107)
Other (income)/deductions––net (4,878) 1,219 3,497
Income from continuing operations before provisio... | 000000127 | 1 | 280 | 608 | |
000000127::2 | it) for taxes on income 24,311 7,036 11,321
Provision/(benefit) for taxes on income 1,852 370 583
Income from continuing operations 22,459 6,666 10,738
Discontinued operations––net of tax (434) 2,529 5,318
Net income before allocation to noncontrolling interests 22,025 9,195 16, | 000000127 | 2 | 608 | 887 | |
000000127::3 | 056
Less: Net income attributable to noncontrolling interests 45 36 29
Net income attributable to Pfizer Inc. | 000000127 | 3 | 887 | 996 | |
000000127::4 | common shareholders $ 21,979 $ 9,159 $ 16,026 | 000000127 | 4 | 997 | 1,042 | |
000000128::0 | Note 2. Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative
Arrangements
A. Acquisitions
Trillium
On November 17, 2021, we acquired all of the issued and outstanding common stock not already owned by Pfizer of Trillium, a clinical stage
immuno-oncology company developing ther... | 000000128 | 0 | 0 | 510 | |
000000128::1 | As a result, Trillium became our wholly owned
subsidiary. We previously held a 2% ownership investment in Trillium. Trillium’s lead program, TTI-622, is an investigational fusion protein that
is designed to block the inhibitory activity of CD47, a molecule that is overexpressed by a wide variety of tumors.
We accounted... | 000000128 | 1 | 511 | 1,013 | |
000000128::2 | At the acquisition date, we recorded a $2.1 billion charge representing an acquired
IPR&D asset with no alternative future use in Research and development expenses, of which the $2.0 billion net cash consideration is
presented as a cash outflow from operating activities. In connection with this acquisition, we recorded... | 000000128 | 2 | 1,014 | 1,464 | |
000000128::3 | Array
On July 30, 2019, we acquired Array, a commercial stage biopharmaceutical company focused on the discovery, development and
commercialization of targeted small molecule medicines to treat cancer and other diseases of high unmet need, for $48 per share in cash. The
total fair value of the consideration transferred... | 000000128 | 3 | 1,465 | 1,842 | |
000000128::4 | In addition, $157 million in payments to
Array employees for the fair value of previously unvested stock options was recognized as post-closing compensation expense and recorded
in Restructuring charges and certain acquisition-related costs (see Note 3). | 000000128 | 4 | 1,843 | 2,097 | |
000000128::5 | financed the majority of the transaction with debt and the
balance with existing cash.___FINANCEBENCH_DELIMITER___Therachon
On July 1, 2019, we acquired all the remaining shares of Therachon, a privately-held clinical-stage biotechnology company focused on rare
diseases, with assets in development for the treatment of... | 000000128 | 5 | 2,100 | 2,642 | |
000000128::6 | development and commercialization of the lead asset. | 000000128 | 6 | 2,642 | 2,695 | |
000000128::7 | We accounted for the transaction as an asset acquisition since the lead asset
represented substantially all the fair value of the gross assets acquired. The total fair value of the consideration transferred for Therachon was
$322 million, which consisted of $317 million of cash and our previous $5 million investment in... | 000000128 | 7 | 2,696 | 3,145 | |
000000129::0 | We expect to incur costs of approximately $700 million in connection with separating Upjohn, of which approximately 90% has been incurred since inception and through the second quarter of 2023. These charges include costs and expenses related to separation of legal entities and transaction costs. | 000000129 | 0 | 0 | 297 | |
000000130::0 | The following summarizes revenues by geographic area:
Three Months Ended Six Months Ended
(MILLIONS)
July 2,
2023
July 3,
2022
%
Change
July 2,
2023
July 3,
2022
%
Change
United States $ 6,185 $ 11,222 (45) $ 14,692 $ 20,140 (27)
Developed Europe 2,415 5,480 (5 | 000000130 | 0 | 0 | 261 | |
000000130::1 | 6) 5,236 11,569 (55)
Developed Rest of World 1,305 5,034 (74) 3,778 8,320 (55)
Emerging Markets 2,828 6,006 (53) 7,308 13,373 (45)
Revenues $ 12,734 $ 27,742 (54) $ 31,015 $ 5 | 000000130 | 1 | 261 | 436 | |
000000130::2 | 3,402 (42) | 000000130 | 2 | 436 | 446 | |
000000131::0 | We expect to incur costs of approximately $700 million in connection with separating Upjohn, of which approximately 90% has been incurred since inception
and through the second quarter of 2023. These charges include costs and expenses related to separation of legal entities and transaction costs. | 000000131 | 0 | 0 | 297 | |
000000132::0 | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
10-K
☒
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended
January 28, 2023
or
☐
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transiti... | 000000132 | 0 | 0 | 392 | |
000000132::1 | 1-33764
ULTA BEAUTY, INC. | 000000132 | 1 | 392 | 417 | |
000000132::2 | (Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
38-4022268
(I.R.S. Employer
Identification No.)
1000 Remington Blvd. | 000000132 | 2 | 418 | 613 | |
000000132::3 | ,
Suite 120
Bolingbrook
,
Illinois
(Address of principal executive offices)
60440
(Zip code)
Registrant’s telephone number, including area code: (
630
)
410-4800
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol
Name of each exchange on which registered
Common stock, par val... | 000000132 | 3 | 614 | 1,036 | |
000000132::4 | ) of the Act:
None | 000000132 | 4 | 1,036 | 1,054 | |
000000133::0 | Ulta Beauty, Inc. | 000000133 | 0 | 0 | 17 | |
000000133::1 | Consolidated Statements of Cash Flows
Fiscal year ended
January 28,
January 29,
January 30,
(In thousands)
2023
2022
2021
Operating activities
Net income
$
1,242,408
$
985,837
$
175,835
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
241,372
268,460
2 | 000000133 | 1 | 18 | 333 | |
000000133::2 | 97,772
Non-cash lease expense
301,912
276,229
268,071
Long-lived asset impairment charge
—
—
72,533
Deferred income taxes
15,653
(
25,666
)
(
24,008
)
Stock-based compensation expense
43,044
47,259
27,583
Loss on disposal of property and equipment
6,688
5 | 000000133 | 2 | 333 | 588 | |
000000133::3 | ,358
6,827
Change in operating assets and liabilities:
Receivables
34,260
(
40,573
)
(
53,772
)
Merchandise inventories
(
104,233
)
(
331,003
)
125,486
Prepaid expenses and other current assets
(
19,432
)
(
3,412
)
(
4,363
| 000000133 | 3 | 588 | 811 | |
000000133::4 | )
Income taxes
(
45,182
)
(
35,652
)
58,916
Accounts payable
8,309
66,156
62,324
Accrued liabilities
48,249
58,598
58,599
Deferred revenue
41,098
79,196
36,848
Operating lease liabilities
(
324,500
)
(
303 | 000000133 | 4 | 811 | 1,016 | |
000000133::5 | ,914
)
(
297,513
)
Other assets and liabilities
(
7,731
)
12,392
(
783
)
Net cash provided by operating activities
1,481,915
1,059,265
810,355
Investing activities
Proceeds from short-term investments
—
—
110,000
Capital expenditures
(
312,126
)
(
172, | 000000133 | 5 | 1,016 | 1,268 | |
000000133::6 | 187
)
(
151,866
)
Acquisitions, net of cash acquired
—
—
(
1,220
) | 000000133 | 6 | 1,268 | 1,334 | |
000000134::0 | For the Full Year of Fiscal 2022
Net sales increased 18.3% to $10.2 billion compared to $8.6 billion in fiscal 2021,
primarily due to the favorable impact from the continued resilience of the beauty
category, retail price increases, the impact of new brands and product innovation,
increased social occasions, and fewer ... | 000000134 | 0 | 0 | 365 | |
000000134::1 | Comparable sales increased 15.6% compared to an increase of 37.9% in fiscal 2021,
driven by a 10.8% increase in transactions and a 4.3% increase in average ticket.
Gross profit increased 20.1% to $4.0 billion compared to $3.4 billion in fiscal 2021. | 000000134 | 1 | 366 | 615 | |
000000134::2 | As
a percentage of net sales, gross profit increased to 39.6% compared to 39.0% in fiscal
2021, primarily due to leverage of fixed costs, strong growth in other revenue, and
favorable channel mix shifts, partially offset by higher inventory shrink and lower
merchandise margin.
SG&A expenses increased 16.2% to $2.4 bill... | 000000134 | 2 | 616 | 980 | |
000000134::3 | As a percentage of net sales, SG&A expenses decreased to 23.5% compared to
23.9% in fiscal 2021, primarily due to lower marketing expenses and leverage of
incentive compensation due to higher sales, partially offset by deleverage of corporate
overhead due to strategic investments and deleverage of store payroll and ben... | 000000134 | 3 | 981 | 1,331 | |
000000135::0 | Balance Sheet
Cash and cash equivalents at the end of the fourth quarter of fiscal 2022 were $737.9
million.
Merchandise inventories, net at the end of the fourth quarter of fiscal 2022 totaled $1.6
billion compared to $1.5 billion at the end of the fourth quarter of fiscal 2021. | 000000135 | 0 | 0 | 280 | |
000000135::1 | The $104.2
million increase was primarily due to the opening of 47 new stores since January 29, 2022,
inventory to support new brand launches and brand expansions, and inventory cost
increases. | 000000135 | 1 | 281 | 474 | |
000000136::0 | Share Repurchase Program
During the fourth quarter of fiscal 2022, the Company repurchased 722,457 shares of its
common stock at a cost of $328.1 million. During fiscal 2022, the Company repurchased 2.2
million shares of its common stock at a cost of $900.0 million. As of January 28, 2023, $1.1
billion remained availab... | 000000136 | 0 | 0 | 395 | |
000000137::0 | Derivative Instruments
We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates.
We employ risk management strategies, which may include the use of a variety of derivatives including interest rate swaps, cross currency
swaps, forward... | 000000137 | 0 | 0 | 482 | |
000000137::1 | The following table sets forth the notional amounts of our outstanding derivative instruments:
(dollars in millions)
At December 31, 2021 2020
Interest rate swaps $ 19,779 $ 17,768
Cross currency swaps 32,502 26,288
Forward starting interest rate swaps 1,000 2,000
Foreign exchange forwards 932 1,405 | 000000137 | 1 | 484 | 790 | |
000000138::0 | Pension and postretirement health care and life insurance benefits earned during the year, as well as interest on projected benefit obligations,
are accrued.___FINANCEBENCH_DELIMITER___Estimated Future Benefit Payments
The benefit payments to retirees are expected to be paid as follows:
(dollars in millions)
Year P... | 000000138 | 0 | 0 | 419 |
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