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Restructuring, Impairment and Integration Charges (Tables)
 12 Months Ended
Dec. 27, 2014
Restructuring and Related Activities [Abstract]  
Summary Of 2014 Productivity Plan Activity [Table Text Block] [Table Text Block]
2014 Multi-Year Productivity Plan
The 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 2012 Productivity Plan and is expected to continue the benefits of that plan.
In 2014 and 2013, we incurred restructuring charges of $357 million ($262 million after-tax or $0.17 per share) and $53 million ($39 million after-tax or $0.02 per share), respectively, in conjunction with our 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 December 27, 2014 is expected to be paid by the end of 2015.
A summary of our 2014 Productivity Plan charges is as follows:
 
2014
 
2013
 
Severance  and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
 
Severance  and Other
Employee Costs
 
Other Costs
 
Total
FLNA
$
25

 
$
10

 
$
11

 
$
46

 
$
11

 
$
—

 
$
11

QFNA
12

 
—

 
2

 
14

 
3

 
—

 
3

NAB
60

 
56

 
56

 
172

 
9

 
—

 
9

Latin America
15

 
3

 
10

 
28

 
6

 
—

 
6

ESSA
24

 
4

 
14

 
42

 
10

 
—

 
10

AMENA
14

 
—

 
8

 
22

 
1

 
—

 
1

Corporate (a)
(2
)
 
—

 
35

 
33

 
12

 
1

 
13

 
$
148

 
$
73

 
$
136

 
$
357

 
$
52

 
$
1

 
$
53

(a)
Income amount represents adjustments of previously recorded amounts.
A summary of our 2014 Productivity Plan activity is as follows:
 
Severance  and Other
Employee Costs
 
Asset
Impairments
 
Other Costs
 
Total
2013 restructuring charges
$
52

 
$
—

 
$
1

 
$
53

Non-cash charges
(22
)
 
—

 
—

 
(22
)
Liability as of December 28, 2013
30

 
—

 
1

 
31

2014 restructuring charges
148

 
73

 
136

 
357

Cash payments
(56
)
 
—

 
(109
)
 
(165
)
Non-cash charges
(33
)
 
(73
)
 
(4
)
 
(110
)
Liability as of December 27, 2014
$
89

 
$
—

 
$
24

 
$
113
Summary Of Productivity Plan Activity
2012 Multi-Year Productivity Plan
The 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 2014, 2013 and 2012, we incurred restructuring charges of $61 million ($54 million after-tax or $0.04 per share), $110 million ($90 million after-tax or $0.06 per share) and $279 million ($215 million after-tax or $0.14 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, asset impairments (all non-cash), and contract termination costs. All of the restructuring accrual at December 27, 2014 is expected to be paid by the end of 2015.
A summary of our 2012 Productivity Plan charges is as follows:
 
 
2014
 
2013
 
2012
 
 
Severance and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
 
Severance and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
 
Severance and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
FLNA (a)
 
$
(1
)
 
$
—

 
$
3

 
$
2

 
$
4

 
$
—

 
$
4

 
$
8

 
$
14

 
$
8

 
$
16

 
$
38

QFNA
 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
1

 
—

 
—

 
9

 
9

NAB
 
(3
)
 
1

 
9

 
7

 
8

 
—

 
13

 
21

 
27

 
43

 
18

 
88

Latin America (a)
 
19

 
—

 
(19
)
 
—

 
5

 
2

 
—

 
7

 
22

 
8

 
34

 
64

ESSA
 
6

 
5

 
18

 
29

 
36

 
2

 
12

 
50

 
14

 
16

 
12

 
42

AMENA
 
12

 
—

 
3

 
15

 
21

 
2

 
2

 
25

 
18

 
—

 
10

 
28

Corporate (a)
 
(2
)
 
—

 
10

 
8

 
—

 
—

 
(2
)
 
(2
)
 
(6
)
 
—

 
16

 
10

 
 
$
31

 
$
6

 
$
24

 
$
61

 
$
74

 
$
6

 
$
30

 
$
110

 
$
89

 
$
75

 
$
115

 
$
279

(a)
Income amounts represent adjustments of previously recorded amounts.
A summary of our 2012 Productivity Plan activity is as follows:
 
Severance  and Other
Employee Costs
 
Asset Impairments
 
Other Costs
 
Total
Liability as of December 31, 2011
$
249

 
$
—

 
$
27

 
$
276

2012 restructuring charges
89

 
75

 
115

 
279

Cash payments
(239
)
 
—

 
(104
)
 
(343
)
Non-cash charges
(8
)
 
(75
)
 
(2
)
 
(85
)
Liability as of December 29, 2012
91

 
—

 
36

 
127

2013 restructuring charges
74

 
6

 
30

 
110

Cash payments
(89
)
 
—

 
(44
)
 
(133
)
Non-cash charges
(8
)
 
(6
)
 
(5
)
 
(19
)
Liability as of December 28, 2013
68

 
—

 
17

 
85

2014 restructuring charges
31

 
6

 
24

 
61

Cash payments
(65
)
 
—

 
(36
)
 
(101
)
Non-cash charges
(6
)
 
(6
)
 
—

 
(12
)
Liability as of December 27, 2014
$
28

 
$
—

 
$
5

 
$
33