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Restructuring, Impairment and Integration Charges | 9 Months Ended
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Sep. 06, 2014
Restructuring and Related Activities [Abstract] |
Restructuring, Impairment and Integration Charges | Restructuring, Impairment and Integration Charges 2014 Multi-Year Productivity Plan The multi-year productivity plan we publicly announced on February 13, 2014 (2014 Productivity Plan) includes the next generation of productivity initiatives that we believe will strengthen our food, snack and beverage businesses by: accelerating our investment in manufacturing automation; further optimizing our global manufacturing footprint, including closing certain manufacturing facilities; re-engineering our go-to-market systems in developed markets; expanding shared services; and implementing simplified organization structures to drive efficiency. The 2014 Productivity Plan is in addition to the productivity plan we began implementing in 2012 and is expected to continue the benefits of that plan. In the 12 weeks ended September 6, 2014, we incurred restructuring and impairment charges of $54 million ($39 million after-tax or $0.03 per share) in conjunction with the 2014 Productivity Plan. In the 36 weeks ended September 6, 2014, we incurred restructuring and impairment charges of $227 million ($167 million after-tax or $0.11 per share) in conjunction with the 2014 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses. The majority of the restructuring accrual at September 6, 2014 is expected to be paid by the end of 2014. A summary of our 2014 Productivity Plan charges is as follows:
|  | 12 Weeks Ended |  | 36 Weeks Ended
|  | 9/6/2014 |  |  | 9/6/2014 |
FLNA |  | $ | 9 |  |  | $ | 33 |
QFNA |  | — |  |  | 2 |
LAF |  | 8 |  |  | 14 |
PAB |  | 16 |  |  | 131 |
Europe |  | 7 |  |  | 22 |
AMEA |  | 2 |  |  | 11 |
Corporate |  | 12 |  |  | 14 |
|  | $ | 54 |  |  | $ | 227 |
A summary of our 2014 Productivity Plan activity in 2014 is as follows:
| Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total
Liability as of December 28, 2013 | $ | 30 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 31 |
2014 restructuring charges | 85 |  |  | 62 |  |  | 80 |  |  | 227 |
Cash payments | (35 | ) |  | — |  |  | (65 | ) |  | (100 | )
Non-cash charges | (13 | ) |  | (62 | ) |  | (2 | ) |  | (77 | )
Liability as of September 6, 2014 | $ | 67 |  |  | $ | — |  |  | $ | 14 |  |  | $ | 81 |
2012 Multi-Year Productivity Plan The multi-year productivity plan we publicly announced on February 9, 2012 (2012 Productivity Plan) includes actions in every aspect of our business that we believe will strengthen our complementary food, snack and beverage businesses by: leveraging new technologies and processes across PepsiCo’s operations, go-to-market and information systems; heightening the focus on best practice sharing across the globe; consolidating manufacturing, warehouse and sales facilities; and implementing simplified organization structures, with wider spans of control and fewer layers of management. The 2012 Productivity Plan continues to enhance PepsiCo’s cost-competitiveness and provide a source of funding for future brand-building and innovation initiatives. In the 12 weeks ended September 6, 2014, we incurred restructuring and impairment charges of $14 million ($12 million after-tax or $0.01 per share) in conjunction with our 2012 Productivity Plan. In the 36 weeks ended September 6, 2014, we incurred restructuring and impairment charges of $31 million ($29 million after-tax or $0.02 per share) in conjunction with our 2012 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses. Substantially all of the restructuring accrual at September 6, 2014 is expected to be paid by the end of 2014. In the 12 weeks ended September 7, 2013, we incurred restructuring and impairment charges of $7 million ($6 million after-tax with a nominal amount per share) in conjunction with the 2012 Productivity Plan. In the 36 weeks ended September 7, 2013, we incurred restructuring and impairment charges of $37 million ($29 million after-tax or $0.02 per share) in conjunction with the 2012 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses. A summary of our 2012 Productivity Plan charges is as follows:
|  | 12 Weeks Ended |  | 36 Weeks Ended
|  | 9/6/2014 |  |  | 9/7/2013 |  |  | 9/6/2014 |  |  | 9/7/2013 |
FLNA |  | $ | — |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 5 |
QFNA |  | — |  |  | — |  |  | — |  |  | — |
LAF (a) |  | (2 | ) |  | 1 |  |  | (7 | ) |  | 6 |
PAB |  | — |  |  | 3 |  |  | 7 |  |  | 8 |
Europe |  | 7 |  |  | 2 |  |  | 15 |  |  | 14 |
AMEA |  | 6 |  |  | 1 |  |  | 8 |  |  | 3 |
Corporate (a) |  | 3 |  |  | (1 | ) |  | 6 |  |  | 1 |
|  | $ | 14 |  |  | $ | 7 |  |  | $ | 31 |  |  | $ | 37 |
(a) Income amounts represent adjustments of previously recorded amounts. A summary of our 2012 Productivity Plan activity in 2014 is as follows:
| Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total
Liability as of December 28, 2013 | $ | 68 |  |  | $ | — |  |  | $ | 17 |  |  | $ | 85 |
2014 restructuring charges | 15 |  |  | 6 |  |  | 10 |  |  | 31 |
Cash payments | (46 | ) |  | — |  |  | (23 | ) |  | (69 | )
Non-cash charges | (5 | ) |  | (6 | ) |  | 2 |  |  | (9 | )
Liability as of September 6, 2014 | $ | 32 |  |  | $ | — |  |  | $ | 6 |  |  | $ | 38 |

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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