Now, this is what you call a nice tax refund.

PepsiCo Inc. said it expects to record a non-cash tax benefit of about $600 million in the fourth quarter of 2006. The soft-drink giant said the windfall stems from an Internal Revenue Service examination of its income tax returns for the years 1998 through 2002.

The adjustments include transfer pricing and various transactions, such as acquisitions, the public offering of The Pepsi Bottling Group, Inc., as well as the restructuring of its international snack foods operations.

PepsiCo also said in a regulatory filing it has agreed with all the adjustments of a Revenue Agent’s Report, except for one matter, which it did not disclose.