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Restructuring, Impairment and Integration Charges | 8 Months Ended
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Sep. 05, 2015
Restructuring and Related Activities [Abstract] |
Restructuring, Impairment and Integration Charges | Restructuring and Impairment 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 5, 2015 and September 6, 2014, we incurred restructuring charges of $43 million ($33 million after-tax or $0.02 per share) and $54 million ($39 million after-tax or $0.03 per share), respectively, in conjunction with our 2014 Productivity Plan. In the 36 weeks ended September 5, 2015 and September 6, 2014, we incurred restructuring charges of $94 million ($73 million after-tax or $0.05 per share) and $227 million ($167 million after-tax or $0.11 per share), respectively, in conjunction with our 2014 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses and primarily relate to severance and other employee-related costs, asset impairments (all non-cash) and contract termination costs. The majority of the restructuring accrual at September 5, 2015 is expected to be paid by the end of 2015. A summary of our 2014 Productivity Plan charges is as follows:
|  | 12 Weeks Ended |  | 36 Weeks Ended
|  | 9/5/2015 |  |  | 9/6/2014 |  |  | 9/5/2015 |  |  | 9/6/2014 |
FLNA |  | $ | 12 |  |  | $ | 9 |  |  | $ | 20 |  |  | $ | 33 |
QFNA |  | 1 |  |  | — |  |  | 2 |  |  | 2 |
NAB |  | 4 |  |  | 14 |  |  | 18 |  |  | 128 |
Latin America |  | 5 |  |  | 10 |  |  | 11 |  |  | 17 |
ESSA |  | 15 |  |  | 7 |  |  | 28 |  |  | 22 |
AMENA |  | 3 |  |  | 2 |  |  | 7 |  |  | 11 |
Corporate |  | 3 |  |  | 12 |  |  | 8 |  |  | 14 |
|  | $ | 43 |  |  | $ | 54 |  |  | $ | 94 |  |  | $ | 227 |
A summary of our 2014 Productivity Plan activity in 2015 is as follows:
| Severance and Other Employee Costs |  | Asset Impairment |  | Other Costs |  | Total
Liability as of December 27, 2014 | $ | 89 |  |  | $ | — |  |  | $ | 24 |  |  | $ | 113 |
2015 restructuring charges | 37 |  |  | 4 |  |  | 53 |  |  | 94 |
Cash payments | (56 | ) |  | — |  |  | (59 | ) |  | (115 | )
Non-cash charges | (11 | ) |  | (4 | ) |  | (1 | ) |  | (16 | )
Liability as of September 5, 2015 | $ | 59 |  |  | $ | — |  |  | $ | 17 |  |  | $ | 76 |
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 5, 2015 and September 6, 2014, we incurred restructuring charges of $9 million ($8 million after-tax or $0.01 per share) and $14 million ($12 million after-tax or $0.01 per share), respectively, in conjunction with our 2012 Productivity Plan. In the 36 weeks ended September 5, 2015 and September 6, 2014, we incurred restructuring charges of $19 million ($16 million after-tax or $0.01 per share) and $31 million ($29 million after-tax or $0.02 per share), respectively, in conjunction with our 2012 Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses and primarily relate to severance and other employee-related costs, asset impairments (all non-cash) and contract termination costs. Substantially all of the restructuring accrual at September 5, 2015 is expected to be paid by the end of 2015. A summary of our 2012 Productivity Plan charges is as follows:
|  | 12 Weeks Ended |  | 36 Weeks Ended
|  | 9/5/2015 |  |  | 9/6/2014 |  |  | 9/5/2015 |  |  | 9/6/2014 |
FLNA |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
QFNA |  | — |  |  | — |  |  | — |  |  | — |
NAB |  | — |  |  | — |  |  | 1 |  |  | 7 |
Latin America (a) |  | 5 |  |  | (2 | ) |  | 5 |  |  | (7 | )
ESSA |  | 3 |  |  | 7 |  |  | 9 |  |  | 15 |
AMENA |  | — |  |  | 6 |  |  | 1 |  |  | 8 |
Corporate |  | 1 |  |  | 3 |  |  | 3 |  |  | 6 |
|  | $ | 9 |  |  | $ | 14 |  |  | $ | 19 |  |  | $ | 31 |
(a) | Income amounts represent adjustments of previously recorded amounts.
A summary of our 2012 Productivity Plan activity in 2015 is as follows:
| Severance and Other Employee Costs |  | Asset Impairment |  | Other Costs |  | Total
Liability as of December 27, 2014 | $ | 28 |  |  | $ | — |  |  | $ | 5 |  |  | $ | 33 |
2015 restructuring charges | 5 |  |  | 1 |  |  | 13 |  |  | 19 |
Cash payments | (18 | ) |  | — |  |  | (16 | ) |  | (34 | )
Non-cash charges | (5 | ) |  | (1 | ) |  | — |  |  | (6 | )
Liability as of September 5, 2015 | $ | 10 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 12 |
Other Productivity Initiatives In the 12 weeks ended September 5, 2015, we incurred pre-tax charges of $44 million ($29 million after-tax or $0.02 per share) related to productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans discussed above, including $5 million in Latin America, $1 million in ESSA, $8 million in AMENA and $30 million in Corporate. In the 36 weeks ended September 5, 2015, we incurred pre-tax charges of $54 million ($37 million after-tax or $0.02 per share) related to productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans discussed above, including $5 million in both Latin America and ESSA, $14 million in AMENA and $30 million in Corporate. These charges were recorded in selling, general and administrative expenses and primarily reflect severance and other employee-related costs. These initiatives were excluded from Items Affecting Comparability. See additional unaudited information in “Results of Operations – Division Review” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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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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