Restructuring, Impairment and Integration Charges (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Cost, Description

Other Productivity Initiatives

There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans in 2016. In 2015, we incurred charges of $90 million ($66 million after-tax or $0.04 per share) related to other productivity and efficiency initiatives, including $48 million in Latin America, $5 million in ESSA, $20 million in AMENA and $17 million in Corporate. In 2014, we incurred charges of $67 million ($54 million after-tax or $0.04 per share) related to other productivity and efficiency initiatives, including $11 million in Latin America, $26 million in ESSA and $30 million in AMENA. Non-cash charges in 2015 and 2014 were $10 million and $13 million, respectively. These amounts were recorded in selling, general and administrative expenses and primarily reflect severance and other employee-related costs and asset impairments (all non-cash). These initiatives were not included in items affecting comparability. Cash payments in 2016, 2015 and 2014 were $43 million, $57 million and $3 million, respectively. Substantially all of the accrual of $29 million at December 31, 2016 is expected to be paid by the end of 2017.

We regularly evaluate different productivity initiatives beyond the productivity plans and other initiatives discussed above.

See additional unaudited information in “Items Affecting Comparability” and “Results of Operations – Division Review” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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:



	2016		2015		2014
2014 Productivity Plan	$	160	$	169	$	357
2012 Productivity Plan	—		61		61
Total restructuring and impairment charges	160		230		418
Other productivity initiatives	12		90		67
Total restructuring and impairment charges and other productivity initiatives	$	172	$	320	$	485

2014 Multi-Year Productivity Plan

The 2014 Productivity Plan, publicly announced on February 13, 2014, 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 2016, 2015 and 2014, we incurred restructuring charges of $160 million ($131 million after-tax or $0.09 per share), $169 million ($134 million after-tax or $0.09 per share) and $357 million ($262 million after-tax or $0.17 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 other costs associated with the implementation of our initiatives, including contract termination costs. Substantially all of the restructuring accrual at December 31, 2016 is expected to be paid by the end of 2017.

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



	2016									2015									2014
	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)	$	10	$	—	$	3		$	13	$	18	$	(1	)	$	9	$	26	$	25		$	10	$	11	$	46
QFNA	—		—		1			1		—		—			3		3		12			—		2		14
NAB	18		8		9			35		10		4			17		31		60			56		56		172
Latin America ^(a)	29		—		(2		)	27		2		10			16		28		15			3		10		28
ESSA	21		22		17			60		26		11			25		62		24			4		14		42
AMENA	4		6		4			14		2		—			8		10		14			—		8		22
Corporate ^(a)	6		—		4			10		1		—			8		9		(2		)	—		35		33
	$	88	$	36	$	36		$	160	$	59	$	24		$	86	$	169	$	148		$	73	$	136	$	357


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

Since the inception of the 2014 Productivity Plan, we incurred restructuring charges of $739 million:



	2014 Productivity Plan Costs to Date
	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	64	$	9	$	23	$	96
QFNA	15		—		6		21
NAB	97		68		82		247
Latin America	52		13		24		89
ESSA	81		37		56		174
AMENA	21		6		20		47
Corporate	17		—		48		65
	$	347	$	133	$	259	$	739

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 28, 2013	$	30		$	—		$	1		$	31
2014 restructuring charges	148			73			136			357
Cash payments	(56		)	—			(109		)	(165		)
Non-cash charges and translation	(33		)	(73		)	(4		)	(110		)
Liability as of December 27, 2014	89			—			24			113
2015 restructuring charges	59			24			86			169
Cash payments	(76		)	—			(87		)	(163		)
Non-cash charges and translation	(11		)	(24		)	(3		)	(38		)
Liability as of December 26, 2015	61			—			20			81
2016 restructuring charges	88			36			36			160
Cash payments	(46		)	—			(49		)	(95		)
Non-cash charges and translation	(15		)	(36		)	1			(50		)
Liability as of December 31, 2016	$	88		$	—		$	8		$	96

2012 Multi-Year Productivity Plan

The 2012 Productivity Plan, publicly announced on February 9, 2012, included actions in every aspect of our business that we believe 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 2015 and 2014, we incurred restructuring charges of $61 million ($50 million after-tax or $0.03 per share) and $61 million ($54 million after-tax or $0.04 per share), respectively, in conjunction with our 2012 Productivity Plan. All of these charges were recorded in selling, general and administrative expenses and primarily related to severance and other employee-related costs, asset impairments (all non-cash), and contract termination costs. The 2012 Productivity Plan was completed in 2016 and all cash payments were paid by the end of 2016.

A summary of our 2012 Productivity Plan charges is as follows:



	2015								2014
	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
QFNA	—		—		—		—		—			—		—			—
NAB ^(a)	—		—		2		2		(3		)	1		9			7
Latin America ^(a)	6		1		1		8		19			—		(19		)	—
ESSA	15		—		12		27		6			5		18			29
AMENA	15		3		2		20		12			—		3			15
Corporate ^(a)	3		—		1		4		(2		)	—		10			8
	$	39	$	4	$	18	$	61	$	31		$	6	$	24		$	61


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

Since the inception of the 2012 Productivity Plan, we incurred restructuring charges of $894 million:



	2012 Productivity Plan Costs to Date
	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	91	$	8	$	25	$	124
QFNA	18		—		10		28
NAB	107		44		48		199
Latin America	98		11		18		127
ESSA	136		23		66		225
AMENA	75		5		17		97
Corporate	35		—		59		94
	$	560	$	91	$	243	$	894

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 28, 2013	$	68		$	—		$	17		$	85
2014 restructuring charges	31			6			24			61
Cash payments	(65		)	—			(36		)	(101		)
Non-cash charges and translation	(6		)	(6		)	—			(12		)
Liability as of December 27, 2014	28			—			5			33
2015 restructuring charges	39			4			18			61
Cash payments	(24		)	—			(21		)	(45		)
Non-cash charges and translation	(8		)	(4		)	1			(11		)
Liability as of December 26, 2015	35			—			3			38
Cash payments	(28		)	—			(2		)	(30		)
Non-cash charges and translation	(7		)	—			(1		)	(8		)
Liability as of December 31, 2016	$	—		$	—		$	—		$	—