1) Why was PepsiCos Diluted EPS lower than its Basic EPS in each year? A 1 2 3 Income Statement [Abstract] 4 Net Revenue 5 Cost of sales 6 Gross profit 7 Selling, general and administrative expenses 8 Operating Profit 9 Other pension and retiree medical benefits (expense)/income 10 Interest expense 11 Interest income and other 12 Income before income taxes 13 Provision for/(benefit from) income taxes (See Note 5) Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions 14 Net income 15 Less: Net income attributable to noncontrolling interests 16 Net Income Attributable to PepsiCo 17 Net Income Attributable to PepsiCo per Common Share 18 Basic 19 Diluted 20 Weighted-average common shares outstanding 21 Basic 22 Diluted B Dec. 28, 2019 $ 67,161 30,132 37,029 26,738 10,291 (44) (1,135) 200 9,312 1,959 7,353 39 $7,314 $5.23 $5.20 1,399 1,407 C 12 Months Ended Dec. 29, 2018 $ 64,661 29,381 35,280 25,170 10,110 298 (1,525) 306 9,189 (3,370) 12,559 44 $ 12,515 $ 8.84 $8.78 1,415 1,425 D Dec. 30, 2017 $ 63,525 28,796 34,729 24,453 10,276 233 (1,151) 244 9,602 4,694 4,908 51 $4,857 $ 3.40 $3.38 1,425 1,438

\begin{tabular}{|c|c|c|c|} \hline \multirow{3}{*}{ Consolidated Statement of Income - USD (\$) shares in Millions, \$ in Millions } & B & c & D \\ \hline & \multicolumn{3}{|c|}{12 Months Ended } \\ \hline & Dec. 28,2019 & Dec. 29,2018 & Dec. 30,2017 \\ \hline \multicolumn{4}{|l|}{ Income Statement [Abstract] } \\ \hline Net Revenue & $67,161 & $64,661 & $63,525 \\ \hline Cost of sales & 30,132 & 29,381 & 28,796 \\ \hline Gross profit & 37,029 & 35,280 & 34,729 \\ \hline Selling, general and administrative expenses & 26,738 & 25,170 & 24,453 \\ \hline Operating Profit & 10,291 & 10,110 & 10,276 \\ \hline Other pension and retiree medical benefits (expense)/income & (44) & 298 & 233 \\ \hline Interest expense & (1,135) & (1,525) & (1,151) \\ \hline Interest income and other & 200 & 306 & 244 \\ \hline Income before income taxes & 9,312 & 9,189 & 9,602 \\ \hline Provision for/(benefit from) income taxes (See Note 5) & 1,959 & (3,370) & 4,694 \\ \hline Net income & 7,353 & 12,559 & 4,908 \\ \hline Net Income Attributable to Pepsico & $7,314 & $12,515 & $4,857 \\ \hline \multicolumn{4}{|l|}{ Net Income Attributable to PepsiCo per Common Share } \\ \hline Basic & $5.23 & $8.84 & $3.40 \\ \hline Diluted & $5.20 & $8.78 & $3.38 \\ \hline \multicolumn{4}{|l|}{ Weighted-average common shares outstanding } \\ \hline Basic & 1,399 & 1,415 & 1,425 \\ \hline Diluted & 1,407 & 1,425 & 1,438 \\ \hline \end{tabular}