What explains PepsiCo's fluctuating tax expenses in 2023?

PepsiCo's tax expenses for 2023 are not directly available. However, the company's income tax expense has been on an increasing trend from 2022 to 2023, as reported in the Income Taxes section of the 2024 10-K. This trend suggests that PepsiCo's tax expenses may have fluctuated due to various factors such as changes in its income, business operations, or tax strategies.

1. Income Changes: Variations in PepsiCo's income can significantly impact its tax expenses. If the company experiences changes in revenue, profits, or losses, it will directly affect the amount of tax payable.
2. Business Operations: Tax expenses can also be influenced by the specific operations and subsidiaries of PepsiCo. For instance, the performance of its Frito-Lay North America and PepsiCo Beverages North America segments could impact tax liabilities due to differences in their profit margins, tax rates, or tax planning strategies.
3. Tax Strategies: PepsiCo's tax strategy, including the use of tax credits, deductions, and deferrals, can affect its tax expense. Changes in tax laws, regulations, or the company's tax planning approach can lead to fluctuations in tax expenses.
4. Global Operations: As a global company with operations in various countries, PepsiCo is subject to different tax regimes and rates. Changes in these tax rates or the company's expansion into new markets can impact its overall tax expense.

In conclusion, PepsiCo's fluctuating tax expenses in 2023 can be attributed to a combination of factors including changes in income, business operations, tax strategies, and global operations.