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Restructuring and Impairment Charges Restructuring and Impairment Charges (Notes) | 8 Months Ended
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Sep. 07, 2019
Restructuring and Related Activities [Abstract] |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Restructuring and Impairment Charges 2019 Multi-Year Productivity Plan We publicly announced a multi-year productivity plan on February 15, 2019 (2019 Productivity Plan) that will leverage new technology and business models to further simplify, harmonize and automate processes; re-engineer our go-to-market and information systems, including deploying the right automation for each market; and simplify our organization and optimize our manufacturing and supply chain footprint. A summary of our 2019 Productivity Plan charges is as follows:
| 9/7/2019
| 12 Weeks Ended |  | 36 Weeks Ended |
Cost of sales | $ | 10 |  |  | $ | 100 |
Selling, general and administrative expenses | 83 |  |  | 182 |
Other pension and retiree medical benefits expense | 5 |  |  | — |
Total restructuring and impairment charges | $ | 98 |  |  | $ | 282 |
After-tax amount | $ | 82 |  |  | $ | 225 |
Net income attributable to PepsiCo per common share | $ | 0.06 |  |  | $ | 0.16 |
| 9/7/2019 |  |
| 12 Weeks Ended |  | 36 Weeks Ended |  |  | Plan to Date
FLNA | $ | 16 |  |  | $ | 22 |  |  | $ | 53 |
QFNA | 2 |  |  | 2 |  |  | 7 |
PBNA | 26 |  |  | 42 |  |  | 82 |
LatAm | 22 |  |  | 43 |  |  | 52 |
ESSA | 14 |  |  | 73 |  |  | 81 |
AMENA | 10 |  |  | 63 |  |  | 66 |
Corporate | 3 |  |  | 37 |  |  | 44 |
| 93 |  |  | 282 |  |  | 385 |
Other pension and retiree medical benefits expense | 5 |  |  | — |  |  | 35 |
| $ | 98 |  |  | $ | 282 |  |  | $ | 420 |
| 9/7/2019 |  |
| 12 Weeks Ended |  | 36 Weeks Ended |  | Plan to Date
Severance and other employee costs | $ | 65 |  |  | $ | 105 |  |  | $ | 242 |
Asset impairments | 3 |  |  | 87 |  |  | 87 |
Other costs (a) | 30 |  |  | 90 |  |  | 91 |
| $ | 98 |  |  | $ | 282 |  |  | $ | 420 |
(a) | Includes other costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees.
A summary of our 2019 Productivity Plan activity for the 36 weeks ended September 7, 2019 is as follows:
| Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total
Liability as of December 29, 2018 | $ | 105 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 106 |
2019 restructuring charges | 105 |  |  | 87 |  |  | 90 |  |  | 282 |
Cash payments (a) | (88 | ) |  | — |  |  | (45 | ) |  | (133 | )
Non-cash charges and translation | (5 | ) |  | (87 | ) |  | 1 |  |  | (91 | )
Liability as of September 7, 2019 | $ | 117 |  |  | $ | — |  |  | $ | 47 |  |  | $ | 164 |
(a) | Excludes cash expenditures of $3 million reported in the cash flow statement in pension and retiree medical contributions.
The majority of the restructuring accrual at September 7, 2019 is expected to be paid by the end of 2019. 2014 Multi-Year Productivity Plan We publicly announced a multi-year productivity plan on February 13, 2014 (2014 Productivity Plan) that includes the next generation of productivity initiatives that we believe will strengthen our beverage, food and snack 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. To build on the 2014 Productivity Plan, in the fourth quarter of 2017, we expanded and extended the plan through the end of 2019 to take advantage of additional opportunities within the initiatives described above to further strengthen our beverage, food and snack businesses. We have substantially completed our 2014 Productivity Plan and do not expect to incur material charges in 2019 associated with this plan. The pre-tax charges and cash expenditures approximate the original total plan estimates of $1.3 billion and $960 million, respectively. For the 12 and 36 weeks ended September 7, 2019, there were no material charges related to this plan. Cash payments for the 36 weeks ended September 7, 2019 were $115 million. The accrual related to this plan as of September 7, 2019 is not material and the majority is expected to be paid by the end of 2019. For further information, refer to Note 3 to our consolidated financial statements in our 2018 Form 10-K. A summary of our 2014 Productivity Plan charges is as follows:
| 9/8/2018
| 12 Weeks Ended |  | 36 Weeks Ended
Selling, general and administrative expenses | $ | 35 |  |  | $ | 75 |
Other pension and retiree medical benefits expense | — |  |  | 4 |
Total restructuring and impairment charges | $ | 35 |  |  | $ | 79 |
After-tax amount | $ | 31 |  |  | $ | 66 |
Net income attributable to PepsiCo per common share | $ | 0.02 |  |  | $ | 0.05 |
| 9/8/2018
| 12 Weeks Ended |  | 36 Weeks Ended
FLNA (a) | $ | (3 | ) |  | $ | 6 |
QFNA | — |  |  | 1 |
PBNA | 13 |  |  | 25 |
LatAm | 6 |  |  | 18 |
ESSA | 17 |  |  | 25 |
AMENA | 2 |  |  | 6 |
Corporate (a) | — |  |  | (2 | )
| $ | 35 |  |  | $ | 79 |
(a) | Income amounts represent adjustments for changes in estimates of previously recorded amounts.
| 9/8/2018
| 12 Weeks Ended |  | 36 Weeks Ended
Severance and other employee costs | $ | 24 |  |  | $ | 48 |
Asset impairments | 3 |  |  | 11 |
Other costs | 8 |  |  | 20 |
| $ | 35 |  |  | $ | 79 |
Other Productivity Initiatives There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2019 and 2014 Productivity Plans. We regularly evaluate different productivity initiatives beyond the productivity plans and other initiatives described above.

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