Restructuring and Impairment Charges

A summary of our restructuring and impairment charges and other productivity initiatives is as follows:



	12 Weeks Ended
	3/19/2016		3/21/2015
2014 Productivity Plan	$	30	$	30
2012 Productivity Plan	—		6
Total restructuring and impairment charges	30		36
Other productivity initiatives	1		—
Total restructuring and impairment charges and other productivity initiatives	$	31	$	36

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 19, 2016 and March 21, 2015, we incurred restructuring charges of $30 million ($25 million after-tax or $0.02 per share) and $30 million ($24 million after-tax or $0.02 per share), respectively, in conjunction with our 2014 Productivity Plan. All of these net 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 other costs associated with the implementation of our initiatives, including contract termination costs. The majority of the restructuring accrual at March 19, 2016 is expected to be paid by the end of 2016.

A summary of our 2014 Productivity Plan charges is as follows:



	12 Weeks Ended
	3/19/2016			3/21/2015
FLNA ^(a)	$	(4	)	$	6
QFNA	—			1
NAB	7			7
Latin America	—			1
ESSA	19			9
AMENA	5			2
Corporate	3			4
	$	30		$	30


(a)	Income amount represents adjustments for changes in estimates of previously recorded amounts.

A summary of our 2014 Productivity Plan activity in 2016 is as follows:



	Severance and Other Employee Costs			Asset Impairments			Other Costs			Total
Liability as of December 26, 2015	$	61		$	—		$	20		$	81
2016 restructuring charges	8			11			11			30
Cash payments	(9		)	—			(13		)	(22		)
Non-cash charges and translation	2			(11		)	—			(9		)
Liability as of March 19, 2016	$	62		$	—		$	18		$	80

2012 Multi-Year Productivity Plan

The multi-year productivity plan we publicly announced on February 9, 2012 (2012 Productivity Plan) included actions in every aspect of our business that we believed would 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 has enhanced PepsiCo’s cost-competitiveness and provided a source of funding for future brand-building and innovation initiatives.

In the 12 weeks ended March 21, 2015, we incurred restructuring charges of $6 million ($5 million after-tax with a nominal amount per share) in conjunction with our 2012 Productivity Plan, including $1 million in NAB, $3 million in ESSA and $2 million in Corporate. Cash payments in the 12 weeks ended March 19, 2016 were $8 million. All of these charges were recorded in selling, general and administrative expenses and primarily related to severance and other employee-related costs and contract termination costs. We do not expect any further charges associated with our 2012 Productivity Plan. Substantially all of the restructuring accrual of $28 million at March 19, 2016 is expected to be paid by the end of 2016.