Restructuring and Impairment Charges

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



	2017		2016		2015
2014 Productivity Plan	$	295	$	160	$	169
2012 Productivity Plan	—		—		61
Total restructuring and impairment charges	295		160		230
Other productivity initiatives	16		12		90
Total restructuring and impairment charges and other productivity initiatives	$	311	$	172	$	320

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. To build on the successful implementation of the 2014 Productivity Plan to date, we expanded and extended the program through December 28, 2019 to take advantage of additional opportunities within the initiatives described above to further strengthen our food, snack and beverage businesses.

In 2017, 2016 and 2015, we incurred restructuring charges of $295 million ($224 million after-tax or $0.16 per share), $160 million ($131 million after-tax or $0.09 per share) and $169 million ($134 million after-tax or $0.09 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 30, 2017 is expected to be paid by the end of 2018.

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



	2017										2016									2015
	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)	$	67	$	—	$	—		$	67		$	10	$	—	$	3		$	13	$	18	$	(1	)	$	9	$	26
QFNA	11		—		—			11			—		—		1			1		—		—			3		3
NAB	52		1		1			54			18		8		9			35		10		4			17		31
Latin America ^(a)	57		16		(10		)	63			29		—		(2		)	27		2		10			16		28
ESSA	46		4		3			53			21		22		17			60		26		11			25		62
AMENA ^(b)	2		—		(5		)	(3		)	4		6		4			14		2		—			8		10
Corporate	45		—		5			50			6		—		4			10		1		—			8		9
	$	280	$	21	$	(6	)	$	295		$	88	$	36	$	36		$	160	$	59	$	24		$	86	$	169


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


(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 $1,034 million:



	2014 Productivity Plan Costs to Date
	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	131	$	9	$	23	$	163
QFNA	26		—		6		32
NAB	149		69		83		301
Latin America	109		29		14		152
ESSA	127		41		59		227
AMENA	23		6		15		44
Corporate	62		—		53		115
	$	627	$	154	$	253	$	1,034

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 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
2017 restructuring charges	280			21			(6		)	295
Cash payments	(91		)	—			(22		)	(113		)
Non-cash charges and translation	(65		)	(21		)	34			(52		)
Liability as of December 30, 2017	$	212		$	—		$	14		$	226

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.

In 2015, we incurred restructuring charges of $61 million ($50 million after-tax or $0.03 per share) 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 in 2015 is as follows:



	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	—	$	—	$	—	$	—
QFNA	—		—		—		—
NAB	—		—		2		2
Latin America	6		1		1		8
ESSA	15		—		12		27
AMENA	15		3		2		20
Corporate	3		—		1		4
	$	39	$	4	$	18	$	61

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 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	$	—		$	—		$	—		$	—

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 2017 and 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 outside the scope of the 2014 and 2012 Productivity Plans. These charges 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.

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