PEPSICO INC

Previous wording

In the 12 weeks ended June 13, 2026, our financial results outside of North America reflect the months of March, April and May. In the 24 weeks ended June 13, 2026, our financial results outside of North America reflect the months of January through May. In the 24 weeks ended June 13, 2026, 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, collectively, comprising 25% of our consolidated net revenue. As a result, we are exposed to foreign exchange risks in the international markets in which our products are made, manufactured, distributed or sold. In the 12 weeks ended June 13, 2026, favorable foreign exchange contributed to net revenue performance by 2 percentage points primarily due to an appreciation of the Mexican peso and Russian ruble, partially offset by a decline in the Turkish lira. In the 24 weeks ended June 13, 2026, favorable foreign exchange contributed to net revenue performance by 3 percentage points primarily due to an appreciation of the Mexican peso and Russian ruble. 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 5, 2026, our financial results outside of North America reflect the months of June, July and August. In the 36 weeks ended September 5, 2026, our financial results outside of North America reflect the months of January through August. In the 36 weeks ended September 5, 2026, our operations outside of the United States generated 45% of our consolidated net revenue, with Mexico, Russia, Canada, China, the United Kingdom, Brazil and South Africa, collectively, comprising 25% of our consolidated net revenue. As a result, we are exposed to foreign exchange risks in the international markets in which our products are made, manufactured, distributed or sold. In the 12 weeks ended September 5, 2026, favorable foreign exchange contributed 1 percentage point to net revenue performance, primarily due to an appreciation of the Mexican peso and South African rand, partially offset by a decline in the Turkish lira. In the 36 weeks ended September 5, 2026, favorable foreign exchange contributed 2 percentage points to net revenue performance, primarily due to appreciation of the Mexican peso and Russian ruble, partially offset by a decline in the Turkish lira. 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), 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 anyunfavorable impacts on our future results. Our operations in Russia accounted for 6% and 5% of our consolidated net revenue for the 12 and 24 weeks ended June 13, 2026, respectively. Russia accounted for 6% of our consolidated assets, including 21% of our consolidated cash and cash equivalents, and 38% of our accumulated currency translation adjustment loss as of June 13, 2026.

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 temporary or permanent expropriation of assets, any other limits on our ability to conduct business operations, loss of or damage to key manufacturing sites, additional impairments or write-offs and currency fluctuation, and to identify actions to potentially mitigate anyunfavorable impacts on our future results. Our operations in Russia accounted for 6% and 5% of our consolidated net revenue for the 12 and 36 weeks ended September 5, 2026, respectively. Russia accounted for 5% of our consolidated assets, including 20% of our consolidated cash and cash equivalents, and 42% of our accumulated currency translation adjustment loss as of September 5, 2026.

Previous wording

The imposition of tariffs (including U.S. tariffs imposed or threatened to be imposed on China, the European Union, Canada and Mexico and other countries and any tariffs imposed by such countries) have impacted and could continue to impact our supply chain resulting in increased input costs, including the cost of certain raw materials and packaging. During the 24 weeks ended June 13, 2026, the U.S. Supreme Court ruled that many of the tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA) were invalid. Following this ruling, we have submitted, and expect to continue to submit, tariff recovery claims through the U.S. Customs and Border Protection (CBP) seeking a refund of certain eligible IEEPA tariffs. While we have begun to receive, and may continue to receive, refunds of such tariffs, the ultimate recoverability, timing and amount of any such refunds remain uncertain and subject to CBP review as well as further legal, regulatory and administrative developments. In addition, the U.S. Administration initiated new tariffs and may impose additional tariffs. As a result, there remains significant uncertainty regarding the duration and scope of existing and future tariffs and the impact of such tariffs will continue to vary, including based on where inputs are sourced from and shipped to. In addition, any supply chain constraints, inflationary impacts or reduced consumer demand for our products as a result of such tariffs or ongoing macroeconomic uncertainty have impacted and could continue to impact our results. We will continue to evaluate the nature and extent of the impact of these tariffs on our business, to identify actions to potentially mitigate, where possible, any unfavorable impacts on our business and to monitor the regulatory and administrative developments around the potential refund of tariffs previously paid and assess their impact on our future results.

Current wording

The imposition of tariffs (including U.S. tariffs imposed or threatened to be imposed on China, the European Union, Canada and Mexico and other countries and any tariffs imposed by such countries) have impacted and could continue to impact our supply chain resulting in increased input costs, including the cost of certain raw materials and packaging. During the 36 weeks ended September 5, 2026, the U.S. Supreme Court ruled that many of the tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA) were invalid. Following this ruling, we submitted tariff recovery claims through the U.S. Customs and Border Protection seeking a refund of certain eligible IEEPA tariffs andreceived substantially all of the refunds of such tariffs. In addition, the U.S. Administration initiated new tariffs and may impose additional tariffs. As a result, there remains significant uncertainty regarding the duration and scope of existing and future tariffs and the impact of such tariffs will continue to vary, including based on where inputs are sourced from and shipped to. In addition, any supply chain constraints, inflationary impacts or reduced consumer demand for our products as a result of such tariffs or ongoing macroeconomic uncertainty have impacted and could continue to impact our results. We will continue to evaluate the nature and extent of the impact of these tariffs on our business, to identify actions to potentially mitigate, where possible, any unfavorable impacts on our business and to monitor the regulatory and administrative developments around the potential refund of tariffs previously paid and assess their impact on our future results.

Previous wording

We report all of our international operations on a monthly calendar basis. The 12 weeks ended June 13, 2026 and June 14, 2025 include volume outside of North America for the months of March, April and

Current wording

We report all of our international operations on a monthly calendar basis. The 12 weeks ended September 5, 2026 and September 6, 2025 include volume outside of North America for the months of

Previous wording

May. The 24 weeks ended June 13, 2026 and June 14, 2025 include volume outside of North America for the months of January through May.

Current wording

June, July and August. The 36 weeks ended September 5, 2026 and September 6, 2025 include volume outside of North America for the months of January through August.

Previous wording

Operating profit increased 125%, primarily driven by prior-year impairment charges related to the Rockstar and Be & Cheery brands, productivity savings, effective net pricing, lower restructuring charges and a favorable net impact of acquisition and divestiture-related charges/credits, partially offset by certain operating cost increases.

Current wording

Operating profit increased 45%, primarily driven by productivity savings, prior-year impairment charges related to the Rockstar and Be & Cheery brands, effective net pricing and a favorable net impact of acquisition and divestiture-related charges/credits, partially offset by certain operating cost increases.

Previous wording

Net interest expense and other increased $7 million, due to higher average debt balances and lower interest rates on average cash balances, partially offset by higher average cash balances, lower interest rates on average debt balances and higher gains on the market value of investments used to economically hedge a portion of our deferred compensation liability.

Current wording

Net interest expense and other decreased $22 million, due to higher average cash balances and lower interest rates on average debt balances, partially offset by lower interest rates on average cash balances, lower gains on the market value of investments used to economically hedge a portion of our deferred compensation liability and higher average debt balances.

Previous wording

Unit volume was even with the prior year.

Current wording

The reported tax rate was even with the prior year.

Previous wording

Other pension and retiree medical benefits income increased $17 million, primarily reflecting the impact of changes in discount rates and higher expected return on plan assets.

Current wording

Other pension and retiree medical benefits income decreased $88 million, primarily reflecting the settlement charge, partially offset by the impact of changes in the discount rates and higher expected return on plan assets.

Previous wording

Net interest expense and other decreased $30 million, due to higher average cash balances, higher gains on the market value of investments used to economically hedge a portion of our deferred compensation liability and lower interest rates on average debt balances, partially offset by higher average debt balances and lower interest rates on average cash balances.

Current wording

Net interest expense and other decreased $15 million, due to higher average cash balances, lower interest rates on average debt balances and higher gains on the market value of investments used to economically hedge a portion of our deferred compensation liability, partially offset by higher average debt balances and lower interest rates on average cash balances.

Previous wording

The reported tax rate increased 3.4 percentage points, primarily reflecting the prior-year release of federal interest accruals and the impairment of the Rockstar brand, as well as the current-year impact of the OECD model global minimum tax, partially offset by higher tax benefits from foreign results.

Current wording

The reported tax rate increased 0.8 percentage points, primarily reflecting the prior-year release of federal interest accruals.

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 13, 2026 and June 14, 2025 and the months January through May are reflected in our results for the 24 weeks ended June 13, 2026 and June 14, 2025.

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 5, 2026 and September 6, 2025 and the months January through August are reflected in our results for the 36 weeks ended September 5, 2026 and September 6, 2025.

Previous wording

Net revenue increased slightly, primarily driven by an increase in organic volume and a favorable impact of an acquisition, partially offset by unfavorable net pricing.

Current wording

Net revenue decreased slightly, primarily driven by unfavorable net pricing, partially offset by an increase in organic volume.

Previous wording

Net revenue decreased 2%, primarily driven by unfavorable net pricing.

Current wording

Net revenue decreased slightly, primarily driven by unfavorable net pricing, partially offset by an increase in organic volume.

Previous wording

Operating profit decreased 5%, primarily reflecting certain operating cost increases, the unfavorable net pricing and a 3-percentage-point impact of gains associated with sales of certain assets in the prior year. These impacts were partially offset by productivity savings.

Current wording

Operating profit decreased 8%, primarily reflecting certain operating cost increases, the unfavorable net pricing and a 4-percentage-point impact of gains associated with sales of certain assets in the prior year. These impacts were partially offset by productivity savings.

Previous wording

Net revenue increased 8%, primarily driven by a favorable net impact of acquisitions and divestitures and effective net pricing, partially offset by an organic volume decline.

Current wording

Net revenue increased 5%, primarily driven by a favorable net impact of acquisitions and divestitures and effective net pricing, partially offset by an organic volume decline.

Previous wording

Unit volume declined 4%, primarily driven by a 4% decline in noncarbonated beverage (NCB) volume and a 3% decline in carbonated soft drink (CSD) volume.

Current wording

Unit volume declined 2%, primarily driven by a 3% decline in noncarbonated beverage (NCB) volume and a 2% decline in carbonated soft drink (CSD) volume.

Previous wording

Operating profit improvement primarily reflects a prior-year impairment charge related to the Rockstar brand, productivity savings, a favorable net impact of acquisition and divestiture-related charges/credits related to our poppi acquisition, lower restructuring charges, the effective net pricing anda 3-percentage-point impact of a gain on an asset sale. These impacts were partially offset by certain operating cost increases, the decline in organic volume and a 6-percentage-point impact of higher commodity costs.

Current wording

Operating profit increased 45%, primarily driven bya favorable net impact of acquisition and divestiture-related charges/credits related to our poppi acquisition, a 23-percentage-point favorable net impact of global tariffs (which includes tariff refunds) and higher commodity costs, and productivity savings. These impacts were partially offset by certain operating cost increases, the decline in organic volume, higher advertising and marketing expenses and higher restructuring charges.

Previous wording

Unit volume declined 3%, primarily driven by a 3% decline in CSD volume and a 3.5% decline in NCB volume.

Current wording

Unit volume declined 3%, primarily driven by a 3% decline in NCB volume and a 2.5% decline in CSD volume.

Previous wording

Operating profit improvement primarily reflects a prior-year impairment charge related to the Rockstar brand, productivity savings, a favorable net impact of acquisition and divestiture-related charges/credits related to our poppi acquisition, lower restructuring charges and the effective net pricing. These impacts were partially offset by certain operating cost increases, the decline in organic volume and a 5-percentage point impact of higher commodity costs.

Current wording

Operating profit increased 416%, primarily reflecting a prior-year impairment charge related to the Rockstar brand, a favorable net impact of acquisition and divestiture-related charges/credits related to our poppi acquisition, lower restructuring charges, productivity savings, a 6-percentage-point favorable net impact of global tariffs (which includes tariff refunds) and higher commodity costs, and the effective net pricing. These impacts were partially offset by certain operating cost increases, the decline in organic volume and higher advertising and marketing expenses.

Previous wording

Unit volume grew 3%, primarily reflecting broad-based increases, led by India, partially offset by a decline in Mexico.

Current wording

Unit volume grew 5%, primarily reflecting broad-based increases, led by India, partially offset by declines in China and Mexico.

Previous wording

Operating profit increased 103%, primarily reflecting a prior-year impairment charge related to the Be & Cheery brand, productivity savings, the organic volume growth and a 10-percentage-point impact of lower commodity costs, primarily potatoes and packaging materials. These impacts were partially offset by certain operating cost increases.

Current wording

Operating profit increased 29%, primarily reflecting a prior-year impairment charge related to the Rockstar brand, the net revenue growth, productivity savings and a 4-percentage-point impact of lower commodity costs. These impacts were partially offset by certain operating cost increases and higher advertising and marketing costs.

Previous wording

Unit volume grew 5%, primarily reflecting broad-based increases, led by India, partially offset by a decline in Mexico.

Current wording

Unit volume grew 4%, primarily reflecting broad-based increases, led by India, partially offset by a decline in Mexico.

Previous wording

Operating profit increased 103%, primarily reflecting a prior-year impairment charge related to the Rockstar brand, the net revenue growth and productivity savings. These impacts were partially offset by certain operating cost increases.

Current wording

Operating profit increased 22%, primarily reflecting the net revenue growth, a prior-year impairment charge related to the Rockstar brand and productivity savings. These impacts were partially offset by certain operating cost increases.

Previous wording

Convenient foods unit volume grew 6%, primarily reflecting growth in South Africa, the Middle East and Russia.

Current wording

Convenient foods unit volume declined 1%, primarily reflecting a decline in South Africa, partially offset by growth in the Middle East and Russia.

Previous wording

Operating profit decreased 3.5%, primarily reflecting certain operating cost increases and the unfavorable net pricing. These impacts were partially offset by productivity savings and lower restructuring charges.

Current wording

Operating profit increased 25%, primarily reflecting the effective net pricing, productivity savings and lower restructuring charges. These impacts were partially offset by certain operating cost increases.

Previous wording

Net revenue increased 10%, reflecting effective net pricing, largely from subsidiaries operating in highly inflationary economies, a 3-percentage-point impact of favorable foreign exchange translation and organic volume growth.

Current wording

Net revenue increased 11%, reflecting effective net pricing, part of which is from subsidiaries operating in highly inflationary economies, a 3-percentage-point impact of favorable foreign exchange translation and organic volume growth.

Previous wording

Convenient foods unit volume grew 4%, primarily reflecting growth in the Middle East, Russia and South Africa.

Current wording

Convenient foods unit volume grew 3%, primarily reflecting growth in the Middle East and Russia.

Previous wording

Operating profit increased 19%, primarily reflecting the effective net pricing, productivity savings anda 14-percentage-point impact of favorable foreign exchange translation, driven primarily by the strengthening of the Mexican peso. These impacts were partially offset by certain operating cost increases and a 6-percentage-point impact of certain indirect tax credits in Brazil in the prior year.

Current wording

Operating profit increased 47%, primarily reflecting an indirect tax audit settlement in the prior year, productivity savings, the net revenue growth, a 9-percentage-point impact of favorable foreign exchange translation anda 6-percentage-point impact of certain indirect tax credits in Brazil. These impacts were partially offset by certain operating cost increases.

Previous wording

Net revenue increased 16%, reflecting a 12-percentage-point impact of favorable foreign exchange translation, driven primarily by the strengthening of the Mexican peso, and effective net pricing, partially offset by a decline in organic volume.

Current wording

Operating profit increased 28%, primarily reflecting productivity savings, the net revenue growth, a 12-percentage-point impact of favorable foreign exchange translation, primarily driven by the strengthening of the Mexican peso, and an indirect tax audit settlement in the prior year. These impacts were partially offset by certain operating cost increases.

Previous wording

Net revenue increased 12%, reflecting organic volume growth and a 3-percentage-point impact of favorable foreign exchange translation, partially offset by unfavorable net pricing.

Current wording

Net revenue increased 10%, reflecting organic volume growth and a 1-percentage-point impact of favorable foreign exchange translation, partially offset by unfavorable net pricing.

Previous wording

Net revenue increased 12%, reflecting organic volume growth and a 3-percentage-point impact of favorable foreign exchange translation, partially offset by unfavorable net pricing.

Current wording

Net revenue increased 11%, reflecting organic volume growth and a 3-percentage-point impact of favorable foreign exchange translation, partially offset by unfavorable net pricing.

Previous wording

Operating profit improvement primarily reflects a prior-year impairment charge related to the Be & Cheery brand, productivity savings, the organic volume growth and a 9-percentage-point impact of lower commodity costs. These impacts were partially offset by certain operating cost increases.

Current wording

Operating profit increased 62%, primarily reflecting a prior-year impairment charge related to the Be & Cheery brand, productivity savings, the organic volume growth and a 6-percentage-point impact of lower commodity costs. These impacts were partially offset by certain operating cost increases.

Previous wording

Cost of sales, gross profit, selling, general and administrative expenses, impairment of intangible assets, other pension and retiree medical benefits income, provision for income taxes 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 rates

Current wording

Cost of sales, gross profit, selling, general and administrative expenses, impairment of intangible assets, other pension and retiree medical benefits expense/income, provision for income taxes 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 rates

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 and credits associated with our acquisitions and divestitures, impairment and other charges 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. We also apply 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 and credits associated with our acquisitions and divestitures, impairment and other charges, indirect and income tax 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. We also apply 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

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 13, 2026, we have incurred pre-tax charges of $3.8 billion, including cash expenditures of $3.0 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 5, 2026, we have incurred pre-tax charges of $4.0 billion, including cash expenditures of $3.1 billion. For the remainder of 2026, we expect to incur pre-tax charges of approximately $500 million and cash expenditures of approximately $250 million. These charges will be funded primarily through cash from operations. 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.

Previous wording

Acquisition and divestiture-related charges/credits include merger and integration charges, transaction expenses, such as consulting, advisory and other professional fees, as well as fair value adjustments to contingent consideration. Merger and integration charges include distribution agreement termination fees, employee-related costs, closing costs and other integration costs.

Current wording

Acquisition and divestiture-related charges/credits include merger and integration charges, transaction expenses, such as consulting, advisory and other professional fees, as well as fair value adjustments to contingent consideration and to the acquired inventory included in the acquisition-date balance sheets. Merger and integration charges include distribution agreement termination fees, impairment of certain acquisition-related intangibles, employee-related costs, closing costs and other integration costs.

Previous wording

We recognized charges related to the impairments of the Rockstar and Be & Cheery brands.

Current wording

We recognized charges primarily related to the impairments of the Rockstar and Be & Cheery brands.

Previous wording

We believe that our cash generating capability and financial condition, together with our revolving credit facilities, working capital lines and other available methods of debt financing, such as commercial paper borrowings and long-term debt financing, will be adequate to meet our operating, investing and financing needs, including with respect to our net capital spending plans. Our primary sources of liquidity include cash from operations, proceeds obtained from issuances of commercial paper and long-term debt, and cash and cash equivalents. These sources of cash are available to fund cash outflows that have both a short- and long-term component, including debt repayments and related interest payments; payments for acquisitions; operating leases; purchase, marketing, and other contractual commitments, including capital expenditures. In addition, these sources of cash fund other cash outflows including anticipated dividend payments and share repurchases. We do not have guarantees or off-balance sheet financing arrangements, including variable interest entities, that we believe could have a material impact on our liquidity. See “Our Business

Current wording

We believe that our cash generating capability and financial condition, together with our revolving credit facilities, working capital lines and other available methods of debt financing, such as commercial paper borrowings and long-term debt financing, will be adequate to meet our operating, investing and financing needs, including with respect to our net capital spending plans. Our primary sources of liquidity include cash from operations, proceeds obtained from issuances of commercial paper and long-term debt, and cash and cash equivalents. These sources of cash are available to fund cash outflows that have both a short- and long-term component, including debt repayments and related interest payments; payments for acquisitions; operating leases; purchase, marketing, and other contractual commitments, including capital expenditures. In addition, these sources of cash fund other cash outflows including anticipated dividend payments and share repurchases. We do not have guarantees or off-balance sheet financing arrangements, including variable interest entities, that we believe could have a material impact on our liquidity. See “Our Business Risks” and Note 7 to our condensed consolidated financial statements included in this Form 10-Q, as well as “Item 1A. Risk Factors,” “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business Risks” and Note 8 to our consolidated financial statements included in our 2025 Form 10-K for further information.

Previous wording

As of June 13, 2026, cash, cash equivalents and short-term investments in our consolidated subsidiaries outside of Russia that are subject to currency controls or currency exchange restrictions were not material. As of June 13, 2026, Russia accounted for 21% of our consolidated cash and cash equivalents. Our sources and uses of cash were not materially adversely impacted by the cash and cash equivalents held in Russia and, to date, we have not identified any material impact on our liquidity or capital resources as a result of these amounts. See “Our Business Risks” for further information on our operations in Russia.

Current wording

As of September 5, 2026, cash, cash equivalents and short-term investments in our consolidated subsidiaries outside of Russia that are subject to currency controls or currency exchange restrictions were not material. As of September 5, 2026, Russia accounted for 20% of our consolidated cash and cash equivalents. Our sources and uses of cash were not materially adversely impacted by the cash and cash equivalents held in Russia and, to date, we have not identified any material impact on our liquidity or capital resources as a result of these amounts. See “Our Business Risks” for further information on our operations in Russia.