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Restructuring, Impairment and Integration Charges
9 Months Ended
Sep. 07, 2013
Restructuring and Related Activities [Abstract]  
Restructuring, Impairment and Integration Charges
Restructuring, Impairment and Integration Charges

In the 12 weeks ended September 7, 2013, we incurred restructuring and impairment charges of $7 million ($6 million after-tax with a nominal amount per share) in conjunction with our multi-year productivity plan (Productivity Plan). In the 36 weeks ended September 7, 2013, we incurred restructuring and impairment charges of $37 million ($29 million after-tax or $0.02 per share) in conjunction with our Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses. The majority of cash payments related to these charges are expected to be paid by the end of 2013.
In the 12 weeks ended September 8, 2012, we incurred restructuring and impairment charges of $83 million ($59 million after-tax or $0.04 per share) in conjunction with our Productivity Plan. In the 36 weeks ended September 8, 2012, we incurred restructuring and impairment charges of $193 million ($139 million after-tax or $0.09 per share) in conjunction with our Productivity Plan. All of these net charges were recorded in selling, general and administrative expenses. The majority of cash payments related to these charges were paid by the end of 2012.
The Productivity Plan includes actions in every aspect of our business that we believe will 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 Productivity Plan is expected to enhance PepsiCo’s cost-competitiveness, provide a source of funding for future brand-building and innovation initiatives, and serve as a financial cushion for potential macroeconomic uncertainty.
A summary of our Productivity Plan charges is as follows:
 
 
12 Weeks Ended
 
36 Weeks Ended
 
 
9/7/2013

 
9/8/2012

 
9/7/2013

 
9/8/2012

FLNA
 
$
1

 
$
8

 
$
5

 
$
40

QFNA
 

 
1

 

 
7

LAF
 
1

 
29

 
6

 
41

PAB
 
3

 
33

 
8

 
76

Europe (a)
 
2

 
(1
)
 
14

 
(2
)
AMEA
 
1

 
6

 
3

 
23

Corporate (a)
 
(1
)
 
7

 
1

 
8

 
 
$
7

 
$
83

 
$
37

 
$
193


(a)
Income amounts represent adjustments of previously recorded amounts.
A summary of our Productivity Plan activity in 2013 is as follows: 
 
Severance and Other
Employee Costs
 
Asset
Impairment
 
Other
Costs
 
Total
Liability as of December 29, 2012
$
91

 
$

 
$
36

 
$
127

2013 restructuring charges
12

 
1

 
24

 
37

Cash payments
(71
)
 

 
(29
)
 
(100
)
Non-cash charges and other
(4
)
 
(1
)
 
(6
)
 
(11
)
Liability as of September 7, 2013
$
28

 
$

 
$
25

 
$
53


In the 12 weeks and 36 weeks ended September 7, 2013, we incurred merger and integration charges of $9 million ($7 million after-tax with a nominal amount per share) related to our acquisition of Wimm-Bill-Dann Foods OJSC (WBD), all of which were recorded in selling, general and administrative expenses in the Europe segment. Substantially all cash payments related to these charges are expected to be paid by the end of 2013.
In the 12 weeks ended September 8, 2012, we incurred merger and integration charges of $2 million ($2 million after-tax with a nominal amount per share) related to our acquisition of WBD, including $4 million recorded in the Europe segment and income of $2 million recorded in corporate unallocated expenses representing adjustments of previously recorded amounts. In the 36 weeks ended September 8, 2012, we incurred merger and integration charges of $7 million ($6 million after-tax with a nominal amount per share) related to our acquisition of WBD, all of which were recorded in the Europe segment. These charges were recorded in selling, general and administrative expenses. The majority of cash payments related to these charges were paid by the end of 2012.
A summary of our merger and integration activity in 2013 is as follows: 
 
Severance and Other
Employee Costs
 
Asset
Impairment
 
Other Costs
 
Total
Liability as of December 29, 2012
$
18

 
$

 
$
6

 
$
24

2013 merger and integration charges (a)
(2
)
 
8

 
3

 
9

Cash payments
(14
)
 

 
(7
)
 
(21
)
Non-cash charges and other
(1
)
 
(8
)
 

 
(9
)
Liability as of September 7, 2013
$
1

 
$

 
$
2

 
$
3

(a)
Income amounts represent adjustments of previously recorded amounts.