Restructuring and Impairment Charges

We publicly announced a multi-year productivity plan on February 13, 2014 (2014 Productivity Plan) that 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.

In the 12 weeks ended March 25, 2017, we incurred pre- and after-tax restructuring charges of $27 million ($0.02 per share) in conjunction with our 2014 Productivity Plan. Additionally, we incurred $30 million ($25 million after-tax or $0.02 per share) in the 12 weeks ended March 19, 2016. 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. Substantially all of the restructuring accrual at March 25, 2017 is expected to be paid by the end of 2017.

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



	12 Weeks Ended
	3/25/2017										3/19/2016
	Severance and Other Employee Costs		Asset Impairments		Other Costs			Total			Severance and Other Employee Costs			Asset Impairments		Other Costs		Total
FLNA ^(a)	$	1	$	—	$	—		$	1		$	(4	)	$	—	$	—	$	(4	)
QFNA	—		—		—			—			—			—		—		—
NAB	—		—		2			2			7			—		—		7
Latin America	12		11		1			24			—			—		—		—
ESSA	4		—		—			4			1			9		9		19
AMENA ^(b)	—		—		(6		)	(6		)	3			2		—		5
Corporate	1		—		1			2			1			—		2		3
	$	18	$	11	$	(2	)	$	27		$	8		$	11	$	11	$	30


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


(b)	Income amount primarily reflects a gain on the sale of property, plant and equipment.

Since the inception of the 2014 Productivity Plan, we incurred restructuring charges of $766 million:



	2014 Productivity Plan Costs to Date
	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	65	$	9	$	23	$	97
QFNA	15		—		6		21
NAB	97		68		84		249
Latin America	64		24		25		113
ESSA	85		37		56		178
AMENA	21		6		14		41
Corporate	18		—		49		67
	$	365	$	144	$	257	$	766

A summary of our 2014 Productivity Plan activity for the 12 weeks ended March 25, 2017 is as follows:



	Severance and Other Employee Costs			Asset Impairments			Other Costs			Total
Liability as of December 31, 2016	$	88		$	—		$	8		$	96
2017 restructuring charges	18			11			(2		)	27
Cash payments	(5		)	—			(2		)	(7		)
Non-cash charges and translation	(1		)	(11		)	6			(6		)
Liability as of March 25, 2017	$	100		$	—		$	10		$	110

There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2014 Productivity Plan.

We regularly evaluate different productivity initiatives beyond the 2014 Productivity Plan discussed above.

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