XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Restructuring, Impairment and Integration Charges | 8 Months Ended
--- | ---
Sep. 03, 2016
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:
| 12 Weeks Ended |  | 36 Weeks Ended
| 9/3/2016 |  |  | 9/5/2015 |  |  | 9/3/2016 |  |  | 9/5/2015 |
2014 Productivity Plan | $ | 27 |  |  | $ | 43 |  |  | $ | 106 |  |  | $ | 94 |
2012 Productivity Plan | — |  |  | 9 |  |  | — |  |  | 19 |
Total restructuring and impairment charges | 27 |  |  | 52 |  |  | 106 |  |  | 113 |
Other productivity initiatives (a) | — |  |  | 44 |  |  | (2 | ) |  | 54 |
Total restructuring and impairment charges and other productivity initiatives | $ | 27 |  |  | $ | 96 |  |  | $ | 104 |  |  | $ | 167 |
(a) | Income amount represents adjustments for changes in estimates of previously recorded amounts.
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 3, 2016 and September 5, 2015, we incurred restructuring charges of $27 million ($20 million after-tax or $0.01 per share) and $43 million ($33 million after-tax or $0.02 per share), respectively. In the 36 weeks ended September 3, 2016 and September 5, 2015, we incurred restructuring charges of $106 million ($76 million after-tax or $0.05 per share) and $94 million ($73 million after-tax or $0.05 per share), respectively. 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 September 3, 2016 is expected to be paid by the end of 2017. A summary of our 2014 Productivity Plan charges by segment is as follows:
|  | 12 Weeks Ended |  | 36 Weeks Ended
|  | 9/3/2016 |  |  | 9/5/2015 |  |  | 9/3/2016 |  |  | 9/5/2015 |
FLNA |  | $ | 2 |  |  | $ | 12 |  |  | $ | 1 |  |  | $ | 20 |
QFNA |  | — |  |  | 1 |  |  | 1 |  |  | 2 |
NAB |  | 6 |  |  | 4 |  |  | 19 |  |  | 18 |
Latin America |  | — |  |  | 5 |  |  | 28 |  |  | 11 |
ESSA |  | 11 |  |  | 15 |  |  | 38 |  |  | 28 |
AMENA |  | 4 |  |  | 3 |  |  | 11 |  |  | 7 |
Corporate |  | 4 |  |  | 3 |  |  | 8 |  |  | 8 |
|  | $ | 27 |  |  | $ | 43 |  |  | $ | 106 |  |  | $ | 94 |
A summary of our 2014 Productivity Plan activity for the 36 weeks ended September 3, 2016 is as follows:
| Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total
Liability as of December 26, 2015 | $ | 61 |  |  | $ | — |  |  | $ | 20 |  |  | $ | 81 |
2016 restructuring charges | 59 |  |  | 21 |  |  | 26 |  |  | 106 |
Cash payments | (29 | ) |  | — |  |  | (35 | ) |  | (64 | )
Non-cash charges and translation | (5 | ) |  | (21 | ) |  | 1 |  |  | (25 | )
Liability as of September 3, 2016 | $ | 86 |  |  | $ | — |  |  | $ | 12 |  |  | $ | 98 |
2012 Multi-Year Productivity Plan The multi-year productivity plan we publicly announced on February 9, 2012 (2012 Productivity Plan) included actions in every aspect of our business that we believed 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 the 12 weeks ended September 5, 2015, we incurred restructuring charges of $9 million ($8 million after-tax or $0.01 per share). In the 36 weeks ended September 5, 2015, we incurred restructuring charges of $19 million ($16 million after-tax or $0.01 per share). All of these charges were recorded in selling, general and administrative expenses and primarily related to severance and other employee-related costs and contract termination costs. Cash payments in the 36 weeks ended September 3, 2016 were $26 million. We do not expect any further charges associated with our 2012 Productivity Plan. Substantially all of the restructuring accrual of $9 million at September 3, 2016 is expected to be paid by the end of 2016. A summary of our 2012 Productivity Plan charges by segment is as follows:
|  |  |  |  |  | 9/5/2015
|  |  |  |  |  | 12 Weeks Ended |  | 36 Weeks Ended
FLNA |  |  |  |  |  | $ | — |  |  | $ | — |
QFNA |  |  |  |  |  | — |  |  | — |
NAB |  |  |  |  |  | — |  |  | 1 |
Latin America |  |  |  |  |  | 5 |  |  | 5 |
ESSA |  |  |  |  |  | 3 |  |  | 9 |
AMENA |  |  |  |  |  | — |  |  | 1 |
Corporate |  |  |  |  |  | 1 |  |  | 3 |
|  |  |  |  |  | $ | 9 |  |  | $ | 19 |
Other Productivity Initiatives In the 12 and 36 weeks ended September 5, 2015, we incurred charges of $44 million ($29 million after-tax or $0.02 per share) and $54 million ($37 million after-tax or $0.02 per share), respectively. These charges are related to productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans discussed above. These amounts were recorded in selling, general and administrative expenses and primarily reflect severance and other employee-related costs. Cash payments in the 36 weeks ended September 3, 2016 were $35 million. Substantially all of the accrual of $26 million at September 3, 2016 is expected to be paid by the end of 2016. See additional unaudited information in “Results of Operations – Consolidated Review” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. A summary of our charges related to productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans by segment is as follows:
| 9/5/2015
| 12 Weeks Ended |  | 36 Weeks Ended
FLNA | $ | — |  |  | $ | — |
QFNA | — |  |  | — |
NAB | — |  |  | — |
Latin America | 5 |  |  | 5 |
ESSA | 1 |  |  | 5 |
AMENA | 8 |  |  | 14 |
Corporate | 30 |  |  | 30 |
| $ | 44 |  |  | $ | 54 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_RestructuringImpairmentAndOtherActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration