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 June 17, 2017 and June 11, 2016, we incurred restructuring charges of $34 million ($31 million after-tax or $0.02 per share) and $49 million ($31 million after-tax or $0.02 per share), respectively, in conjunction with our 2014 Productivity Plan. In the 24 weeks ended June 17, 2017 and June 11, 2016, we incurred restructuring charges of $61 million ($58 million after-tax or $0.04 per share) and $79 million ($56 million after-tax or $0.04 per share), respectively. 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 June 17, 2017 is expected to be paid by the end of 2017.

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



	12 Weeks Ended
	6/17/2017									6/11/2016
	Severance and Other Employee Costs		Asset Impairments		Other Costs			Total		Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	3	$	—	$	—		$	3	$	1	$	—	$	2	$	3
QFNA	—		—		—			—		—		—		1		1
NAB	—		—		—			—		3		1		2		6
Latin America	21		2		2			25		27		—		1		28
ESSA ^(a)	6		—		(3		)	3		2		2		4		8
AMENA	—		—		2			2		—		2		—		2
Corporate	1		—		—			1		1		—		—		1
	$	31	$	2	$	1		$	34	$	34	$	5	$	10	$	49


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



	24 Weeks Ended
	6/17/2017										6/11/2016
	Severance and Other Employee Costs		Asset Impairments		Other Costs			Total			Severance and Other Employee Costs			Asset Impairments		Other Costs		Total
FLNA ^(a)	$	4	$	—	$	—		$	4		$	(3	)	$	—	$	2	$	(1	)
QFNA	—		—		—			—			—			—		1		1
NAB	—		—		2			2			10			1		2		13
Latin America	33		13		3			49			27			—		1		28
ESSA^(b)	10		—		(3		)	7			3			11		13		27
AMENA^(b)	—		—		(4		)	(4		)	3			4		—		7
Corporate	2		—		1			3			2			—		2		4
	$	49	$	13	$	(1	)	$	61		$	42		$	16	$	21	$	79


(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 $800 million:



	2014 Productivity Plan Costs to Date
	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	68	$	9	$	23	$	100
QFNA	15		—		6		21
NAB	97		68		84		249
Latin America	85		26		27		138
ESSA	91		37		53		181
AMENA	21		6		16		43
Corporate	19		—		49		68
	$	396	$	146	$	258	$	800

A summary of our 2014 Productivity Plan activity for the 24 weeks ended June 17, 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	49			13			(1		)	61
Cash payments	(19		)	—			(6		)	(25		)
Non-cash charges and translation	(5		)	(13		)	10			(8		)
Liability as of June 17, 2017	$	113		$	—		$	11		$	124

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.