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 beverage, food and snack 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 2014 Productivity Plan, in the fourth quarter of 2017, we expanded and extended the program through the end of 2019 to take advantage of additional opportunities within the initiatives described above to further strengthen our beverage, food and snack businesses.

In the 12 weeks ended March 24, 2018, we incurred restructuring charges of $12 million ($11 million after-tax or $0.01 per share) in conjunction with our 2014 Productivity Plan. In the 12 weeks ended March 25, 2017, we incurred pre- and after-tax restructuring charges of $27 million ($0.02 per share). These net charges were recorded in selling, general and administrative expenses and other pension and retiree medical benefits income 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 24, 2018 is expected to be paid by the end of 2018.

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



	12 Weeks Ended
	3/24/2018										3/25/2017
	Severance and Other Employee Costs^(a)			Asset Impairments		Other Costs		Total			Severance and Other Employee Costs^(a)		Asset Impairments		Other Costs			Total
FLNA	$	1		$	3	$	1	$	5		$	1	$	—	$	—		$	1
QFNA	1			—		—		1			—		—		—			—
NAB	1			1		1		3			—		—		2			2
Latin America	7			—		2		9			12		11		1			24
ESSA	4			—		—		4			4		—		—			4
AMENA^(b)	2			—		—		2			—		—		(6		)	(6		)
Corporate ^(c)	(13		)	—		1		(12		)	1		—		1			2
	$	3		$	4	$	5	$	12		$	18	$	11	$	(2	)	$	27


(a)	Includes charges related to other pension and retiree medical benefits of $4 million and $1 million for the 12 weeks ended March 24, 2018 and March 25, 2017, respectively.


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


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

Since the inception of the 2014 Productivity Plan, we incurred restructuring charges of $1,046 million:



	2014 Productivity Plan Costs to Date
	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
FLNA	$	132	$	12	$	24	$	168
QFNA	27		—		6		33
NAB	150		70		84		304
Latin America	116		29		16		161
ESSA	131		41		59		231
AMENA	25		6		15		46
Corporate	49		—		54		103
	$	630	$	158	$	258	$	1,046

A summary of our 2014 Productivity Plan activity for the 12 weeks ended March 24, 2018 is as follows:



	Severance and Other Employee Costs			Asset Impairments			Other Costs			Total
Liability as of December 30, 2017	$	212		$	—		$	14		$	226
2018 restructuring charges	3			4			5			12
Cash payments	(28		)	—			(11		)	(39		)
Non-cash charges and translation	(6		)	(4		)	—			(10		)
Liability as of March 24, 2018	$	181		$	—		$	8		$	189

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.