PEPSICO INC

Previous wording

In the 12 weeks ended June 14, 2025, our financial results outside of North America reflect the months of March, April and May. In the 24 weeks ended June 14, 2025, our financial results outside of North America reflect the months of January through May. In the 24 weeks ended June 14, 2025, our operations outside of the United States generated 41% of our consolidated net revenue, with Mexico, Russia, Canada, 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 weeks ended June 14, 2025, unfavorable foreign exchange reduced net revenue performance by 1.5 percentage points primarily due todeclines in the Mexican peso, Turkish lira and Brazilian real, partially offset by an appreciation of the Russian ruble. In the 24 weeks ended June 14, 2025, unfavorable foreign exchange reduced net revenue performance by 2 percentage points primarily due todeclines in the Mexican peso, Egyptian pound and Brazilian real. Currency declines against the U.S. dollar which are not offset could adversely impact our future financial results.

Current wording

In the 12 weeks ended September 6, 2025, our financial results outside of North America reflect the months of June, July and August. In the 36 weeks ended September 6, 2025, our financial results outside of North America reflect the months of January through August. In the 36 weeks ended September 6, 2025, our operations outside of the United States generated 43% of our consolidated net revenue, with Mexico, Russia, Canada, 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 weeks ended September 6, 2025, favorable foreign exchange contributed to net revenue performance by 0.5 percentage points primarily driven by anappreciation of the Russian ruble, euro, British pound and Polish zloty, partially offset by declines in the Turkish lira, Mexican peso and Argentine peso. In the 36 weeks ended September 6, 2025, unfavorable foreign exchange reduced net revenue performance by 1 percentage point primarily driven bydeclines in the Mexican peso, Turkish lira, Egyptian pound and Brazilian real, partially offset by an appreciation of the Russian ruble. Currency declines against the U.S. dollar which are not offset could adversely impact our future financial results.

Previous wording

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 (including Egypt), 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, sanctions and export controls in certain of these international markets (including restrictions on the transfer of funds to and from certain markets) 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 fluctuation, and to identify actions to potentially mitigate any unfavorable impacts on our future results. Our operations in Russia accounted for 5% and 4% of our consolidated net revenue for the 12 and 24 weeks ended June 14, 2025, respectively. Russia accounted for 5% of our consolidated assets, including 17% of our consolidated cash and cash equivalents and 38% of our accumulated currency translation adjustment loss as of June 14, 2025.

Current wording

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 (including Egypt), 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, sanctions and export controls in certain of these international markets (including restrictions on the transfer of funds to and from certain markets) 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 fluctuation, and to identify actions to potentially mitigate any unfavorable impacts on our future results. Our operations in Russia accounted for 5.5% and 5% of our consolidated net revenue for the 12 and 36 weeks ended September 6, 2025, respectively. Russia accounted for 4.5% of our consolidated assets, including 15% of our consolidated cash and cash equivalents and 39% of our accumulated currency translation adjustment loss as of September 6, 2025.

Previous wording

We report all of our international operations on a monthly calendar basis. The 12 weeks ended June 14, 2025 and June 15, 2024 include volume outside of North America for the months of March, April and May. The 24 weeks ended June 14, 2025 and June 15, 2024 include volume outside of North America for the months of January through May.

Current wording

We report all of our international operations on a monthly calendar basis. The 12 weeks ended September 6, 2025 and September 7, 2024 include volume outside of North America for the months of June, July and August. The 36 weeks ended September 6, 2025 and September 7, 2024 include volume outside of North America for the months of January through August.

Previous wording

Operating profit decreased 35% and operating margin declined 5.8 percentage points. Operating profit performance was primarily driven by impairment charges related to the Rockstar and Be & Cheery brands, certain operating cost increases, a decline in organic volume, a 4-percentage-point impact of higher commodity costs and higher restructuring charges. These impacts were partially offset by productivity savings and effective net pricing. The operating margin decline primarily reflects the unfavorable impact of the impairment charges related to the Rockstar and Be & Cheery brands.

Current wording

Operating profit decreased 8% and operating margin declined 1.7 percentage points. Operating profit performance was primarily driven by certain operating cost increases, a decline in organic volume, an 8-percentage-point impact of higher commodity costs, partly driven by a 3-percentage-point impact of tariffs, and higher acquisition and divestiture-related charges. These impacts were partially offset by productivity savings, effective net pricing and lower advertising and marketing expenses. The operating margin decline primarily reflects the acquisition and divestiture-related charges related to our poppi acquisition.

Previous wording

Operating profit decreased 56% and operating margin declined 10.1 percentage points. Operating profit performance was primarily driven by impairment charges related to the Rockstar and Be & Cheery brands, certain operating cost increases, a 5-percentage-point impact of higher commodity costs, higher restructuring charges and a decline in organic volume. These impacts were partially offset by productivity savings and effective net pricing. The operating margin decline primarily reflects the unfavorable impact of the impairment charges related to the Rockstar and Be & Cheery brands.

Current wording

Operating profit decreased 25% and operating margin declined 4.3 percentage points. Operating profit performance was primarily driven by certain operating cost increases, impairment charges related to the Rockstar brand, a decline in organic volume and a 5.5-percentage-point impact of higher commodity costs. These impacts were partially offset by productivity savings, effective net pricing and lower advertising and marketing expenses. The operating margin decline primarily reflects the unfavorable impact of the impairment charges related to the Rockstar brand.

Previous wording

Other pension and retiree medical benefits income decreased $14 million, primarily reflecting recognition of fixed income losses on plan assets and the impact of certain plan changes approved in 2020, as discussed in Note 7 to our consolidated financial statements in our Recast Segment Information, partially offset by prior-year recognition of special termination benefits due to restructuring actions as part of our 2019 Productivity Plan.

Current wording

Other pension and retiree medical benefits income decreased $15 million, primarily reflecting recognition of fixed income losses on plan assets and the impact of certain plan changes approved in 2020, as discussed in Note 7 to our consolidated financial statements in our Recast Segment Information, partially offset by higher prior-year recognition of special termination benefits due to restructuring actions as part of our 2019 Productivity Plan.

Previous wording

Net interest expense and other increased$26 million, due to higher average debt balances, lower interest rates on average cash balances and higher interest rates on average debt balances, partially offset by higher average cash balances and higher gains on the market value of investments used to economically hedge a portion of our deferred compensation liability.

Current wording

Net interest expense and other increased$45 million, due to higher average debt balances, higher interest rates on average debt balances and lower interest rates on average cash balances, partially offset by higher average cash balances and higher gains on the market value of investments used to economically hedge a portion of our deferred compensation liability.

Previous wording

Other pension and retiree medical benefits income decreased $49 million, primarily reflecting recognition of fixed income losses on plan assets and the impact of certain plan changes approved in 2020, as discussed in Note 7 to our consolidated financial statements in our Recast Segment Information.

Current wording

Other pension and retiree medical benefits income decreased $64 million, primarily reflecting recognition of fixed income losses on plan assets and the impact of certain plan changes approved in 2020, as discussed in Note 7 to our consolidated financial statements in our Recast Segment Information, partially offset by higher prior-year recognition of special termination benefits due to restructuring actions as part of our 2019 Productivity Plan.

Previous wording

Net interest expense and other increased$88 million, dueto higher average debt balances, higher interest rates on average debt balances, lower gains on the market value of investments used to economically hedge a portion of our deferred compensation liability and lower interest rates on average cash balances, partially offset by higher average cash balances.

Current wording

Net interest expense and other increased$133 million, primarilydue to higher average debt balances, higher interest rates on average debt balances and lower interest rates on average cash balances, partially offset by higher average cash balances.

Previous wording

The reported tax rate increased 0.1 percentage point, primarily reflecting the prior-year impact of a release of a valuation allowance in a foreign jurisdiction, offset by the release of federal interest accruals.

Current wording

The reported tax rate increased 0.6 percentage points, primarily reflecting the impact of a prior-year release of a valuation allowance in a foreign jurisdiction.

Previous wording

While 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 14, 2025 and June 15, 2024, and the months January through May are reflected in our results for the 24 weeks ended June 14, 2025 and June 15, 2024.

Current wording

While 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 June, July and August are reflected in our results for the 12 weeks ended September 6, 2025 and September 7, 2024, and the months January through August are reflected in our results for the 36 weeks ended September 6, 2025 and September 7, 2024.

Previous wording

Operating Profit/(Loss), Operating Profit/(Loss) Adjusted for Items Affecting Comparability and Operating Profit/(Loss) Performance Adjusted for Items Affecting Comparability on a Constant Currency Basis

Current wording

Operating Profit, Operating Profit Adjusted for Items Affecting Comparability and Operating Profit Performance Adjusted for Items Affecting Comparability on a Constant Currency Basis

Previous wording

Operating profit/(loss) adjusted for items affecting comparability and operating profit/(loss) performance adjusted for items affecting comparability on a constant currency basis are both non-GAAP financial measures. For a description of and further information regarding these measures, see “Non-GAAP Measures” and “Items Affecting Comparability.”

Current wording

Operating 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 a description of and further information regarding these measures, see “Non-GAAP Measures” and “Items Affecting Comparability.”

Previous wording

Net revenue increased 1%, primarily driven by the favorable impact of acquisitions, partially offset by a decrease in organic volume.

Current wording

Net revenue decreased slightly, primarily driven by a decrease in organic volume, partially offset by the favorable impact of acquisitions and effective net pricing.

Previous wording

Unit volume declined 1%, driven by a 3% decrease in savory snacks volume, partially offset by a 7% increase in other foods volume.

Current wording

Unit volume declined 4%, driven by a 4% decrease in savory snacks volume and a 2% decrease in other foods volume.

Previous wording

Operating profit decreased 17%, primarily reflecting certain operating cost increases, including strategic initiatives, higher restructuring costs and a decrease in organic volume. These impacts were partially offset by productivity savings.

Current wording

Operating profit decreased 5%, primarily reflecting certain operating cost increases, including strategic initiatives, and the decrease in organic volume. These impacts were partially offset by productivity savings anda 4-percentage-point impact of gains on asset sales.

Previous wording

Unit volume declined 1%, driven by a 2% decrease in savory snacks volume, partially offset by a 5% increase in other foods volume.

Current wording

Unit volume declined 2%, driven by a 3% decrease in savory snacks volume, partially offset by a 3.5% increase in other foods volume.

Previous wording

Operating profit decreased 8%, primarily reflecting certain operating cost increases, including strategic initiatives, and the decrease in net revenue. These impacts were partially offset by productivity savings and a favorable impact of the prior-year charges associated with the Quaker Recall.

Current wording

Operating profit decreased 7%, primarily reflecting certain operating cost increases, including strategic initiatives, and the decrease in organic volume. These impacts were partially offset by productivity savings anda 3-percentage-point impact of gains on asset sales.

Previous wording

Unit volume declined 2%, driven by a 6% decline in non-carbonated beverage (NCB) volume, partially offset by a 1% increase in carbonated soft drink (CSD) volume.

Current wording

Unit volume declined 3%, driven by a 6% decline in non-carbonated beverage (NCB) volume, while carbonated soft drink (CSD) volume was even with the prior year.

Previous wording

Unit volume declined 3%, driven by a 6% decline in NCB volume, partially offset by a slight increase in CSD volume.

Current wording

Unit volume declined 3%, driven by a 6% decline in NCB volume, while CSD volume was even with the prior year.

Previous wording

Operating profit decreased 165%, primarily reflecting an impairment charge related to the Rockstar brand. Operating profit also decreased due to certain operating cost increases, the decline in organic volume, acquisition and divestiture-related charges related to our poppi acquisition and higher restructuring costs. These impacts were partially offset by the effective net pricing and productivity savings.

Current wording

Operating profit decreased 77%, primarily reflecting impairment charges related to the Rockstar brand. Operating profit also decreased due to certain operating cost increases, the decline in organic volume, acquisition and divestiture-related charges related to our poppi acquisition and a 5-percentage-point impact of higher commodity costs, driven by a 5-percentage-point impact of tariffs. These impacts were partially offset by productivity savings, the effective net pricing and lower advertising and marketing expenses.

Previous wording

Net revenue increased 8%, primarily reflecting effective net pricing and a 2-percentage-point impact of favorable foreign exchange translation, partially offset by an organic volume decline.

Current wording

Net revenue increased slightly, primarily reflecting effective net pricing and a 1-percentage-point impact of favorable foreign exchange translation, partially offset by an organic volume decline.

Previous wording

Operating profit decreased 26%, primarily reflecting certain operating cost increases, an impairment charge related to the Rockstar brand and a 30-percentage-point impact of higher commodity costs, primarily dairy, potatoes and packaging materials. These impacts were partially offset by the effective net pricing and productivity savings.

Current wording

Operating profit decreased 5%, primarily reflecting an impairment charge related to the Rockstar brand and a 4-percentage-point impact of higher commodity costs, partially offset by lower advertising and marketing costs and productivity savings.

Previous wording

Unit volume grew 1%, primarily reflecting growth in the Middle East, China and Pakistan, partially offset by a decline in India.

Current wording

Unit volume grew 1%, primarily reflecting growth in the Middle East, China and Pakistan, partially offset by a decline in Mexico.

Previous wording

Operating profit increased 7%, primarily reflecting the net revenue growth and lower advertising and marketing costs, partially offset by a 4-percentage-point unfavorable impact of a prior-year gain on a disposal of an investment and a 3-percentage-point impact of higher commodity costs.

Current wording

Operating profit increased 2%, primarily reflecting the net revenue growth and lower advertising and marketing costs, partially offset by an impairment charge related to the Rockstar brand.

Previous wording

Convenient foods unit volume declined 6%, primarily reflecting declines in South Africa, Russia, the Middle East and the United Kingdom.

Current wording

Convenient foods unit volume declined 1%, primarily reflecting declines in Russia, South Africa and the United Kingdom, partially offset by growth in the Middle East and Pakistan.

Previous wording

Beverage unit volume declined 1%, primarily reflecting declines in South Africa, Russia and the Middle East, partially offset by growth in Turkey, Poland, Germany and France.

Current wording

Beverage unit volume grew 1.5%, primarily reflecting growth in the Middle East, partially offset by declines in Turkey and Russia.

Previous wording

Operating profit increased 6%, primarily reflecting the net revenue growth and lower advertising and marketing costs, partially offset by a 3-percentage-point impact of unfavorable foreign exchange translation and a 3-percentage-point unfavorable impact of a prior-year gain on a disposal of an investment.

Current wording

Net revenue increased 6%, primarily reflecting effective net pricing, partially offset by an organic volume decline.

Previous wording

Convenient foods unit volume declined 7%, primarily reflecting declines in South Africa, the Middle East, Russia and the United Kingdom.

Current wording

Convenient foods unit volume declined 5%, primarily reflecting declines in South Africa and Russia.

Previous wording

Beverage unit volume grew 1%, primarily reflecting growth in Turkey, Poland, Germany, the Middle East and France, partially offset by declines in South Africa and Russia.

Current wording

Beverage unit volume grew slightly, primarily reflecting growth in the Middle East, Germany, Poland, Turkey and France, partially offset by declines in South Africa and Russia.

Previous wording

Operating profit decreased 36%, primarily reflecting an impairment charge related to the Rockstar brand, certain operating cost increases and a 26-percentage-point impact of higher commodity costs, primarily dairy, potatoes and cooking oil. These impacts were partially offset by the effective net pricing and productivity savings.

Current wording

Operating profit decreased 13%, primarily reflecting certain operating cost increases, a 24-percentage-point impact of higher commodity costs, primarily dairy, potatoes and cooking oil, and an impairment charge related to the Rockstar brand. These impacts were partially offset by the effective net pricing and productivity savings.

Previous wording

Operating profit decreased slightly, primarily reflecting certain operating cost increases, a 17-percentage-point impact of unfavorable foreign exchange translation, driven primarily by the weakening of the Mexican peso, and an 8-percentage-point impact of higher commodity costs, partially offset by productivity savings, the effective net pricing, a 9-percentage-point favorable impact of certain indirect tax credits in Brazil and the organic volume growth.

Current wording

Operating profit decreased 12%, primarily reflecting certain operating cost increases, an unfavorable impact of an indirect tax audit settlement, and an 8-percentage-point impact of higher commodity costs, partially offset by productivity savings and the effective net pricing.

Previous wording

Net revenue decreased 7%, reflecting a 14-percentage-point impact of unfavorable foreign exchange translation, driven primarily by the weakening of the Mexican peso, partially offset by organic volume growth and effective net pricing.

Current wording

Net revenue decreased 5%, primarily reflecting a 10-percentage-point impact of unfavorable foreign exchange translation, driven by the weakening of the Mexican peso, partially offset by effective net pricing.

Previous wording

Operating profit decreased 8%, primarily reflecting certain operating cost increases, a 16-percentage-point impact of unfavorable foreign exchange translation, driven primarily by the weakening of the Mexican peso, and a 6-percentage-point impact of higher commodity costs, partially offset by productivity savings, the effective net pricing and a 5-percentage-point favorable impact of certain indirect tax credits in Brazil.

Current wording

Operating profit decreased 9%, primarily reflecting certain operating cost increases, a 12-percentage-point impact of unfavorable foreign exchange translation, driven primarily by the weakening of the Mexican peso, a 7-percentage-point impact of higher commodity costs andan unfavorable impact of an indirect tax audit settlement, partially offset by productivity savings, the effective net pricing and a 4-percentage-point favorable impact of certain indirect tax credits in Brazil.

Previous wording

Net revenue increased 0.5%, primarily reflecting organic volume growth, partially offset by unfavorable net pricing.

Current wording

Net revenue increased 2%, primarily reflecting organic volume growth, partially offset by unfavorable net pricing.

Previous wording

Unit volume grew 4%, primarily reflecting growth in India, Thailand, China and Australia.

Current wording

Unit volume grew 4%, primarily reflecting growth in India, Thailand and Australia.

Previous wording

Operating profit decreased 90%, primarily reflecting an impairment charge related to the Be & Cheery brand, certain operating cost increases and the unfavorable net pricing. These impacts were partially offset by productivity savings, lower advertising and marketing costs and the organic volume growth.

Current wording

Operating profit decreased 21%, primarily reflecting certain operating cost increases, the unfavorable net pricing and an impairment charge related to the Be & Cheery brand. These impacts were partially offset by productivity savings, lower advertising and marketing costs and the organic volume growth.

Previous wording

These measures exclude the net impact of mark-to-market gains and losses on centrally managed commodity 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, product recall-related impact and the impact of settlement and curtailment gains and 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. In addition, beginning with our first quarter of 2025, on a prospective basis, we are also applying the constant currency calculation for our subsidiaries operating in highly inflationary economies. 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.

Current wording

These measures exclude the net impact of mark-to-market gains and losses on centrally managed commodity 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, indirect and income tax impact, product recall-related impact and the impact of settlement and curtailment gains and 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. In addition, beginning with our first quarter of 2025, on a prospective basis, we are also applying the constant currency calculation for our subsidiaries operating in highly inflationary economies. 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.

Previous wording

We centrally manage commodity derivatives on behalf of our segments. These commodity derivatives include metals, energy and agricultural products. Commodity derivatives that do not qualify for hedge accounting treatment are marked to market each period with the resulting gains and losses recorded in corporate unallocated expenses as either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. These gains and losses are subsequently reflected in segment results when the segments recognize the cost of the underlying commodity in operating profit. Therefore, the segments realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in corporate unallocated expenses.

Current wording

We centrally manage commodity derivatives on behalf of our segments. These commodity derivatives include agricultural, metals, and energy products. Commodity derivatives that do not qualify for hedge accounting treatment are marked to market each period with the resulting gains and losses recorded in corporate unallocated expenses as either cost of sales or selling, general and administrative expenses, depending on the underlying commodity. These gains and losses are subsequently reflected in segment results when the segments recognize the cost of the underlying commodity in operating profit. Therefore, the segments realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in corporate unallocated expenses.

Previous wording

The 2019 Productivity Plan 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 optimizes our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 2024, we further expanded and extended the plan through the end of 2030 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $6.15 billion, including cash expenditures of approximately $5.1 billion. Plan-to-date through June 14, 2025, we have incurred pre-tax charges of $3.1 billion, including cash expenditures of $2.3 billion. We expect to incur the majority of the remaining pre-tax charges and cash expenditures through 2027, with the balance to be incurred through 2030. Charges include severance and other employee costs, asset impairments and other costs.

Current wording

The 2019 Productivity Plan 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 optimizes our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 2024, we further expanded and extended the plan through the end of 2030 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $6.15 billion, including cash expenditures of approximately $5.1 billion. Plan-to-date through September 6, 2025, we have incurred pre-tax charges of $3.2 billion, including cash expenditures of $2.4 billion. We expect to incur the majority of the remaining pre-tax charges and cash expenditures through 2027, with the balance to be incurred through 2030. Charges include severance and other employee costs, asset impairments and other costs.