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Restructuring, Impairment and Integration Charges | 12 Months Ended
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Dec. 26, 2015
Restructuring and Related Activities [Abstract] |
Restructuring, Impairment And Integration Charges | Restructuring and Impairment Charges A summary of our restructuring and impairment charges and other productivity initiatives is as follows:
| 2015 |  |  | 2014 |  |  | 2013 |
2014 Productivity Plan | $ | 169 |  |  | $ | 357 |  |  | $ | 53 |
2012 Productivity Plan | 61 |  |  | 61 |  |  | 110 |
Total restructuring and impairment charges | 230 |  |  | 418 |  |  | 163 |
Other productivity initiatives | 90 |  |  | 67 |  |  | — |
Total restructuring and impairment charges and other productivity initiatives | $ | 320 |  |  | $ | 485 |  |  | $ | 163 |
2014 Multi-Year Productivity Plan The 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 2012 Productivity Plan and is expected to continue the benefits of that plan. In 2015, 2014 and 2013, we incurred restructuring charges of $169 million ($134 million after-tax or $0.09 per share), $357 million ($262 million after-tax or $0.17 per share) and $53 million ($39 million or $0.02 per share), respectively, in conjunction with our 2014 Productivity Plan. All of these 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 other costs associated with the implementation of our initiatives, including contract termination costs. Substantially all of the restructuring accrual at December 26, 2015 is expected to be paid by the end of 2016. A summary of our 2014 Productivity Plan charges is as follows:
| 2015 |  | 2014 |  | 2013
| Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total |  | Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total |  | Severance and Other Employee Costs |  | Other Costs |  | Total
FLNA (a) | $ | 18 |  |  | $ | (1 | ) |  | $ | 9 |  |  | $ | 26 |  |  | $ | 25 |  |  | $ | 10 |  |  | $ | 11 |  |  | $ | 46 |  |  | $ | 11 |  |  | $ | — |  |  | $ | 11 |
QFNA | — |  |  | — |  |  | 3 |  |  | 3 |  |  | 12 |  |  | — |  |  | 2 |  |  | 14 |  |  | 3 |  |  | — |  |  | 3 |
NAB | 10 |  |  | 4 |  |  | 17 |  |  | 31 |  |  | 60 |  |  | 56 |  |  | 56 |  |  | 172 |  |  | 9 |  |  | — |  |  | 9 |
Latin America | 2 |  |  | 10 |  |  | 16 |  |  | 28 |  |  | 15 |  |  | 3 |  |  | 10 |  |  | 28 |  |  | 6 |  |  | — |  |  | 6 |
ESSA | 26 |  |  | 11 |  |  | 25 |  |  | 62 |  |  | 24 |  |  | 4 |  |  | 14 |  |  | 42 |  |  | 10 |  |  | — |  |  | 10 |
AMENA | 2 |  |  | — |  |  | 8 |  |  | 10 |  |  | 14 |  |  | — |  |  | 8 |  |  | 22 |  |  | 1 |  |  | — |  |  | 1 |
Corporate (a) | 1 |  |  | — |  |  | 8 |  |  | 9 |  |  | (2 | ) |  | — |  |  | 35 |  |  | 33 |  |  | 12 |  |  | 1 |  |  | 13 |
| $ | 59 |  |  | $ | 24 |  |  | $ | 86 |  |  | $ | 169 |  |  | $ | 148 |  |  | $ | 73 |  |  | $ | 136 |  |  | $ | 357 |  |  | $ | 52 |  |  | $ | 1 |  |  | $ | 53 |
(a) | Income amounts represent adjustments of previously recorded amounts.
A summary of our 2014 Productivity Plan activity is as follows:
| Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total
2013 restructuring charges | $ | 52 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 53 |
Non-cash charges and translation | (22 | ) |  | — |  |  | — |  |  | (22 | )
Liability as of December 28, 2013 | 30 |  |  | — |  |  | 1 |  |  | 31 |
2014 restructuring charges | 148 |  |  | 73 |  |  | 136 |  |  | 357 |
Cash payments | (56 | ) |  | — |  |  | (109 | ) |  | (165 | )
Non-cash charges and translation | (33 | ) |  | (73 | ) |  | (4 | ) |  | (110 | )
Liability as of December 27, 2014 | 89 |  |  | — |  |  | 24 |  |  | 113 |
2015 restructuring charges | 59 |  |  | 24 |  |  | 86 |  |  | 169 |
Cash payments | (76 | ) |  | — |  |  | (87 | ) |  | (163 | )
Non-cash charges and translation | (11 | ) |  | (24 | ) |  | (3 | ) |  | (38 | )
Liability as of December 26, 2015 | $ | 61 |  |  | $ | — |  |  | $ | 20 |  |  | $ | 81 |
2012 Multi-Year Productivity Plan The 2012 Productivity Plan included actions in every aspect of our business that we believe would 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 has enhanced PepsiCo’s cost-competitiveness and provided a source of funding for future brand-building and innovation initiatives. In 2015, 2014 and 2013, we incurred restructuring charges of $61 million ($50 million after-tax or $0.03 per share), $61 million ($54 million after-tax or $0.04 per share) and $110 million ($90 million after-tax or $0.06 per share), respectively, in conjunction with our 2012 Productivity Plan. All of these 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. We do not expect any further charges associated with our 2012 Productivity Plan. Substantially all of the restructuring accrual at December 26, 2015 is expected to be paid by the end of 2016. A summary of our 2012 Productivity Plan charges is as follows:
|  | 2015 |  | 2014 |  | 2013
|  | Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total |  | Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total |  | Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total
FLNA (a) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1 | ) |  | $ | — |  |  | $ | 3 |  |  | $ | 2 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 4 |  |  | $ | 8 |
QFNA |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
NAB (a) |  | — |  |  | — |  |  | 2 |  |  | 2 |  |  | (3 | ) |  | 1 |  |  | 9 |  |  | 7 |  |  | 8 |  |  | — |  |  | 13 |  |  | 21 |
Latin America (a) |  | 6 |  |  | 1 |  |  | 1 |  |  | 8 |  |  | 19 |  |  | — |  |  | (19 | ) |  | — |  |  | 5 |  |  | 2 |  |  | — |  |  | 7 |
ESSA |  | 15 |  |  | — |  |  | 12 |  |  | 27 |  |  | 6 |  |  | 5 |  |  | 18 |  |  | 29 |  |  | 36 |  |  | 2 |  |  | 12 |  |  | 50 |
AMENA |  | 15 |  |  | 3 |  |  | 2 |  |  | 20 |  |  | 12 |  |  | — |  |  | 3 |  |  | 15 |  |  | 21 |  |  | 2 |  |  | 2 |  |  | 25 |
Corporate (a) |  | 3 |  |  | — |  |  | 1 |  |  | 4 |  |  | (2 | ) |  | — |  |  | 10 |  |  | 8 |  |  | — |  |  | — |  |  | (2 | ) |  | (2 | )
|  | $ | 39 |  |  | $ | 4 |  |  | $ | 18 |  |  | $ | 61 |  |  | $ | 31 |  |  | $ | 6 |  |  | $ | 24 |  |  | $ | 61 |  |  | $ | 74 |  |  | $ | 6 |  |  | $ | 30 |  |  | $ | 110 |
(a) | Income amounts represent adjustments of previously recorded amounts.
A summary of our 2012 Productivity Plan activity is as follows:
| Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total
Liability as of December 29, 2012 | $ | 91 |  |  | $ | — |  |  | $ | 36 |  |  | $ | 127 |
2013 restructuring charges | 74 |  |  | 6 |  |  | 30 |  |  | 110 |
Cash payments | (89 | ) |  | — |  |  | (44 | ) |  | (133 | )
Non-cash charges and translation | (8 | ) |  | (6 | ) |  | (5 | ) |  | (19 | )
Liability as of December 28, 2013 | 68 |  |  | — |  |  | 17 |  |  | 85 |
2014 restructuring charges | 31 |  |  | 6 |  |  | 24 |  |  | 61 |
Cash payments | (65 | ) |  | — |  |  | (36 | ) |  | (101 | )
Non-cash charges and translation | (6 | ) |  | (6 | ) |  | — |  |  | (12 | )
Liability as of December 27, 2014 | 28 |  |  | — |  |  | 5 |  |  | 33 |
2015 restructuring charges | 39 |  |  | 4 |  |  | 18 |  |  | 61 |
Cash payments | (24 | ) |  | — |  |  | (21 | ) |  | (45 | )
Non-cash charges and translation | (8 | ) |  | (4 | ) |  | 1 |  |  | (11 | )
Liability as of December 26, 2015 | $ | 35 |  |  | $ | — |  |  | $ | 3 |  |  | $ | 38 |
Other Productivity Initiatives In 2015, we incurred pre-tax charges of $90 million ($66 million after-tax or $0.04 per share) related to other productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans, including $48 million in Latin America, $5 million in ESSA, $20 million in AMENA and $17 million in Corporate. In 2014, we incurred pre-tax charges of $67 million ($54 million after-tax or $0.04 per share) related to other productivity and efficiency initiatives, including $11 million in Latin America, $26 million in ESSA and $30 million in AMENA. Non-cash charges in 2015 and 2014 were $10 million and $13 million, respectively. Cash payments in 2015 and 2014 were $57 million and $3 million, respectively. All of these charges were recorded in selling, general and administrative expenses and primarily reflect severance and other employee-related costs and asset impairments (all non-cash). These initiatives were not included in items affecting comparability. Substantially all of the restructuring accrual of $74 million at December 26, 2015 is expected to be paid by the end of 2016.

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