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 September 9, 2017 and September 3, 2016, we incurred restructuring charges of $8 million ($7 million after-tax with nominal amount per share) and $27 million ($20 million after-tax or $0.01 per share), respectively, in conjunction with our 2014 Productivity Plan. In the 36 weeks ended September 9, 2017 and September 3, 2016, we incurred restructuring charges of $69 million ($65 million after-tax or $0.05 per share) and $106 million ($76 million after-tax or $0.05 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 September 9, 2017 is expected to be paid by the end of 2018.

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



	12 Weeks Ended
	9/9/2017											9/3/2016
	Severance and Other Employee Costs^(a)			Asset Impairments		Other Costs^(b)			Total			Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	2		$	—	$	—		$	2		$	2	$	—	$	—	$	2
QFNA	—			—		—			—			—		—		—		—
NAB	—			—		(3		)	(3		)	2		3		1		6
Latin America	(5		)	2		1			(2		)	—		—		—		—
ESSA	10			1		1			12			9		—		2		11
AMENA	(2		)	—		(1		)	(3		)	—		2		2		4
Corporate	2			—		—			2			4		—		—		4
	$	7		$	3	$	(2	)	$	8		$	17	$	5	$	5	$	27


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


(b)	Income amount for NAB primarily reflects a gain on the sale of property, plant and equipment. Income amount for AMENA represents adjustments for changes in estimates of previously recorded amounts.



	36 Weeks Ended
	9/9/2017											9/3/2016
	Severance and Other Employee Costs^(a)			Asset Impairments		Other Costs^(b)			Total			Severance and Other Employee Costs^(a)			Asset Impairments		Other Costs		Total
FLNA	$	6		$	—	$	—		$	6		$	(1	)	$	—	$	2	$	1
QFNA	—			—		—			—			—			—		1		1
NAB	—			—		(1		)	(1		)	12			4		3		19
Latin America	28			15		4			47			27			—		1		28
ESSA	20			1		(2		)	19			12			11		15		38
AMENA	(2		)	—		(5		)	(7		)	3			6		2		11
Corporate	4			—		1			5			6			—		2		8
	$	56		$	16	$	(3	)	$	69		$	59		$	21	$	26	$	106


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


(b)	Income amounts primarily reflect gains on sales of property, plant and equipment.

Since the inception of the 2014 Productivity Plan, we incurred restructuring charges of $808 million:



	2014 Productivity Plan Costs to Date
	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	70	$	9	$	23	$	102
QFNA	15		—		6		21
NAB	97		68		81		246
Latin America	80		28		28		136
ESSA	101		38		54		193
AMENA	19		6		15		40
Corporate	21		—		49		70
	$	403	$	149	$	256	$	808

A summary of our 2014 Productivity Plan activity for the 36 weeks ended September 9, 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	56			16			(3		)	69
Cash payments	(71		)	—			(12		)	(83		)
Non-cash charges and translation	(9		)	(16		)	16			(9		)
Liability as of September 9, 2017	$	64		$	—		$	9		$	73

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.