Restructuring, Impairment and Integration Charges (Tables)

12 Months Ended

Dec. 26, 2015

Restructuring and Related Activities [Abstract]

Summary Of Total Restructuring Activity [Table Text Block]

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

Summary Of 2014 Productivity Plan Activity [Table Text Block] [Table Text Block]

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

Summary Of Productivity Plan Activity

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