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Restructuring, Impairment and Integration Charges | 12 Months Ended
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Dec. 26, 2020
Restructuring and Related Activities [Abstract] |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Restructuring and Impairment Charges A summary of our restructuring and impairment charges and other productivity initiatives is as follows:
| 2020 |  | 2019 |  | 2018
2019 Productivity Plan | $ | 289 |  |  | $ | 370 |  |  | $ | 138 |
2014 Productivity Plan | — |  |  | — |  |  | 170 |
Total restructuring and impairment charges | 289 |  |  | 370 |  |  | 308 |
Other productivity initiatives | — |  |  | 3 |  |  | 8 |
Total restructuring and impairment charges and other productivity initiatives | $ | 289 |  |  | $ | 373 |  |  | $ | 316 |
2019 Multi-Year Productivity Plan The 2019 Productivity Plan, publicly announced on February 15, 2019, 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. In connection with this plan, we expect to incur pre-tax charges of approximately $2.5 billion, including cash expenditures of approximately $1.6 billion. These pre-tax charges are expected to consist of approximately 65% of severance and other employee-related costs, 15% for asset impairments (all non-cash) resulting from plant closures and related actions and 20% for other costs associated with the implementation of our initiatives. We expect to complete this plan by 2023. The total expected plan pre-tax charges are expected to be incurred by division approximately as follows:
| FLNA |  | QFNA |  | PBNA |  | LatAm |  | Europe |  | AMESA |  | APAC |  | Corporate
Expected pre-tax charges | 15 | % |  | 1 | % |  | 30 | % |  | 10 | % |  | 25 | % |  | 5 | % |  | 3 | % |  | 11 | %
A summary of our 2019 Productivity Plan charges is as follows:
| 2020 |  | 2019 |  | 2018
Cost of sales | $ | 30 |  |  | $ | 115 |  |  | $ | 3 |
Selling, general and administrative expenses | 239 |  |  | 253 |  |  | 100 |
Other pension and retiree medical benefits expense | 20 |  |  | 2 |  |  | 35 |
Total restructuring and impairment charges | $ | 289 |  |  | $ | 370 |  |  | $ | 138 |
After-tax amount | $ | 231 |  |  | $ | 303 |  |  | $ | 109 |
Net income attributable to PepsiCo per common share | $ | 0.17 |  |  | $ | 0.21 |  |  | $ | 0.08 |
| 2020 |  | 2019 |  | 2018 |  | Plan to Date through 12/26/2020
FLNA | $ | 83 |  |  | $ | 22 |  |  | $ | 31 |  |  | $ | 136 |
QFNA | 5 |  |  | 2 |  |  | 5 |  |  | 12 |
PBNA | 47 |  |  | 51 |  |  | 40 |  |  | 138 |
LatAm | 31 |  |  | 62 |  |  | 9 |  |  | 102 |
Europe | 48 |  |  | 99 |  |  | 6 |  |  | 153 |
AMESA | 14 |  |  | 38 |  |  | 3 |  |  | 55 |
APAC | 5 |  |  | 47 |  |  | 2 |  |  | 54 |
Corporate | 36 |  |  | 47 |  |  | 7 |  |  | 90 |
| 269 |  |  | 368 |  |  | 103 |  |  | 740 |
Other pension and retiree medical benefits expense | 20 |  |  | 2 |  |  | 35 |  |  | 57 |
Total | $ | 289 |  |  | $ | 370 |  |  | $ | 138 |  |  | $ | 797 |
|  |  |  |  | Plan to Date through 12/26/2020
Severance and other employee costs |  |  |  |  | $ | 444 |
Asset impairments |  |  |  |  | 125 |
Other costs |  |  |  |  | 228 |
Total |  |  |  |  | $ | 797 |
Severance and other employee costs primarily include severance and other termination benefits, as well as voluntary separation arrangements. Other costs primarily include 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 is as follows:
| Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total
2018 restructuring charges | $ | 137 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 138 |
Non-cash charges and translation | (32) |  |  | — |  |  | — |  |  | (32) |
Liability as of December 29, 2018 | 105 |  |  | — |  |  | 1 |  |  | 106 |
2019 restructuring charges | 149 |  |  | 92 |  |  | 129 |  |  | 370 |
Cash payments (a) | (138) |  |  | — |  |  | (119) |  |  | (257) |
Non-cash charges and translation | 12 |  |  | (92) |  |  | 10 |  |  | (70) |
Liability as of December 28, 2019 | 128 |  |  | — |  |  | 21 |  |  | 149 |
2020 restructuring charges | 158 |  |  | 33 |  |  | 98 |  |  | 289 |
Cash payments (a) | (138) |  |  | — |  |  | (117) |  |  | (255) |
Non-cash charges and translation | (26) |  |  | (33) |  |  | 3 |  |  | (56) |
Liability as of December 26, 2020 | $ | 122 |  |  | $ | — |  |  | $ | 5 |  |  | $ | 127 |
(a)Excludes cash expenditures of $2 million and $4 million for 2020 and 2019, respectively, reported in the cash flow statement in pension and retiree medical contributions. Substantially all of the restructuring accrual at December 26, 2020 is expected to be paid by the end of 2021. 2014 Multi-Year Productivity Plan The 2014 Productivity Plan, publicly announced on February 13, 2014, included the next generation of productivity initiatives that we believed would 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 that further strengthened our beverage, food and snack businesses. The 2014 Productivity Plan was completed in 2019. In 2019, there were no material pre-tax charges related to this plan and all cash payments were paid at year end. The total plan pre-tax charges and cash expenditures approximated the previously disclosed plan estimates of $1.3 billion and $960 million, respectively. These total plan pre-tax charges consisted of 59% of severance and other employee costs, 15% of asset impairments and 26% of other costs, including costs associated with the implementation of our initiatives, including certain consulting and other contract termination costs. These total plan pre-tax charges were incurred by division as follows: FLNA 14%, QFNA 3%, PBNA 29%, LatAm 15%, Europe 23%, AMESA 3%, APAC 3% and Corporate 10%. A summary of our 2014 Productivity Plan charges is as follows:
| 2018
Selling, general and administrative expenses | $ | 169 |
Other pension and retiree medical benefits expense | 1 |
Total restructuring and impairment charges | $ | 170 |
After-tax amount | $ | 143 |
Net income attributable to PepsiCo per common share | $ | 0.10 |
| 2018
FLNA | $ | 8 |
QFNA | 2 |
PBNA | 51 |
LatAm | 30 |
Europe | 53 |
AMESA | 15 |
APAC | 12 |
Corporate (a) | (1) |
Total | $ | 170 |
(a)Income amount primarily relates to other pension and retiree medical benefits. A summary of our 2014 Productivity Plan activity is as follows:
| Severance and Other Employee Costs |  | Asset Impairments |  | Other Costs |  | Total
Liability as of December 30, 2017 | $ | 212 |  |  | $ | — |  |  | $ | 14 |  |  | $ | 226 |
2018 restructuring charges | 86 |  |  | 28 |  |  | 56 |  |  | 170 |
Cash payments (a) | (203) |  |  | — |  |  | (52) |  |  | (255) |
Non-cash charges and translation | (4) |  |  | (28) |  |  | 5 |  |  | (27) |
Liability as of December 29, 2018 | 91 |  |  | — |  |  | 23 |  |  | 114 |
Cash payments | (77) |  |  | — |  |  | (16) |  |  | (93) |
Non-cash charges and translation | (14) |  |  | — |  |  | (7) |  |  | (21) |
Liability as of December 28, 2019 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(a)Excludes cash expenditures of $11 million reported in the cash flow statement in pension and retiree medical plan contributions. 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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- 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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