XML 63 R20.htm IDEA: XBRL DOCUMENT v2.4.1.9
Restructuring, Impairment and Integration Charges Restructuring, Impairment and Integration Charges (Tables)
 3 Months Ended
Mar. 21, 2015
Restructuring and Related Activities [Abstract]  
2014 Schedule of Restructuring Related Costs [Table Text Block]
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 March 21, 2015 and March 22, 2014, we incurred restructuring charges of $30 million ($24 million after-tax or $0.02 per share) and $96 million ($73 million after-tax or $0.05 per share), respectively, in conjunction with the 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 contract termination costs. Substantially all of the restructuring accrual at March 21, 2015 is expected to be paid by the end of 2015.
A summary of our 2014 Productivity Plan charges is as follows:
 
 
12 Weeks Ended
 
 
3/21/2015
 
3/22/2014
FLNA
 
$
6

 
$
12

QFNA
 
1

 
2

LAF
 
2

 
1

PAB
 
6

 
82

Europe
 
9

 
2

AMEA
 
2

 
2

Corporate (a)
 
4

 
(5
)
 
 
$
30

 
$
96


(a)
Income amount represents adjustments for changes in estimates of previously recorded amounts.
Summary Of 2014 Productivity Plan Activity [Table Text Block]
A summary of our 2014 Productivity Plan activity in 2015 is as follows:
 
Severance and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
Liability as of December 27, 2014
$
89

 
$
—

 
$
24

 
$
113

2015 restructuring charges
11

 
1

 
18

 
30

Cash payments
(16
)
 
—

 
(20
)
 
(36
)
Non-cash charges
(3
)
 
(1
)
 
(1
)
 
(5
)
Liability as of March 21, 2015
$
81

 
$
—

 
$
21

 
$
102
Restructuring and Related Costs [Table Text Block]
2012 Multi-Year Productivity Plan
The multi-year productivity plan we publicly announced on February 9, 2012 (2012 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 2012 Productivity Plan continues to enhance PepsiCo’s cost-competitiveness and provide a source of funding for future brand-building and innovation initiatives.
In the 12 weeks ended March 21, 2015 and March 22, 2014, we incurred restructuring charges of $6 million ($5 million after-tax with a nominal amount per share) and $2 million ($3 million after-tax with a nominal amount 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 and contract termination costs. Substantially all of the restructuring accrual at March 21, 2015 is expected to be paid by the end of 2015.
A summary of our 2012 Productivity Plan charges is as follows:
 
 
12 Weeks Ended
 
 
3/21/2015

 
3/22/2014

FLNA
 
$
—

 
$
1

QFNA
 
—

 
—

LAF (a)
 
—

 
(5
)
PAB
 
1

 
4

Europe (a)
 
3

 
(2
)
AMEA
 
—

 
2

Corporate
 
2

 
2

 
 
$
6

 
$
2


(a) Income amounts represent adjustments for changes in estimates of previously recorded amounts.
Summary Of Productivity Plan Activity [Table Text Block]
A summary of our 2012 Productivity Plan activity in 2015 is as follows: 
 
Severance and Other
Employee Costs
 
Other Costs
 
Total
Liability as of December 27, 2014
$
28

 
$
5

 
$
33

2015 restructuring charges
1

 
5

 
6

Cash payments
(5
)
 
(6
)
 
(11
)
Non-cash charges
(1
)
 
—

 
(1
)
Liability as of March 21, 2015
$
23

 
$
4

 
$
27