Restructuring, Impairment and Integration Charges

12 Months Ended

Dec. 29, 2018

Restructuring Cost and Reserve [Line Items]

Restructuring, Impairment And Integration Charges

Note 3 — Restructuring and Impairment Charges

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

	2018		2017		2016
2019 Productivity Plan	$	138	$	—	$	—
2014 Productivity Plan	170		295		160
Total restructuring and impairment charges	308		295		160
Other productivity initiatives	8		16		12
Total restructuring and impairment charges and other productivity initiatives	$	316	$	311	$	172

2019 Productivity Plan [Member]

Restructuring Cost and Reserve [Line Items]

Restructuring, Impairment And Integration Charges

2019 Multi-Year Productivity Plan

The 2019 Productivity Plan, publicly announced on February 15, 2019, will leverage new technology and business models to further simplify, harmonize and automate processes; re-engineer our go-to-market and information systems, including deploying the right automation for each market; simplify our organization and optimize our manufacturing and supply chain footprint.

A summary of our 2019 Productivity Plan charges is as follows:

	2018
Costs of sales	$	3
Selling, general and administrative expenses	100
Other pension and retiree medical benefits expense	35
Total restructuring and impairment charges	$	138
After-tax amount	$	109
Net income attributable to PepsiCo per common share	$	0.08

	2018
FLNA	$	31
QFNA	5
NAB	40
Latin America	9
ESSA	8
AMENA	3
Corporate	7
	103
Other pension and retiree medical benefits expense	35
	$	138

A summary of our 2019 Productivity Plan activity is as follows:

	Severance and Other Employee Costs			Asset Impairments		Other Costs(a)		Total
2018 restructuring charges	$	137		$	—	$	1	$	138
Non-cash charges and translation	(32		)	—		—		(32		)
Liability as of December 29, 2018	$	105		$	—	$	1	$	106

(a) Includes other costs associated with the implementation of our initiatives, including consulting and other professional fees.

Substantially all of the restructuring accrual at December 29, 2018 is expected to be paid by the end of 2019.

2014 Productivity Plan

Restructuring Cost and Reserve [Line Items]

Restructuring, Impairment And Integration Charges

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 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.

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

	2018		2017		2016
Selling, general and administrative expenses	$	169	$	229	$	155
Other pension and retiree medical benefits expense	1		66		5
Total restructuring and impairment charges	$	170	$	295	$	160
After-tax amount	$	143	$	224	$	134
Net income attributable to PepsiCo per common share	$	0.10	$	0.16	$	0.09

	2018			2017			2016		Plan to Date
FLNA	$	8		$	67		$	13	$	171
QFNA	2			11			1		34
NAB	51			54			35		352
Latin America	30			63			27		182
ESSA	55			53			60		282
AMENA (a)	25			(3		)	14		69
Corporate (b)	(1		)	50			10		114
	$	170		$	295		$	160	$	1,204

(a) In 2017, income amount primarily reflects a gain on the sale of property, plant and equipment.

(b) In 2018, income amount primarily relates to other pension and retiree medical benefits.

	Severance and Other Employee Costs		Asset Impairments		Other Costs(a)		Total
Plan to Date	$	713	$	182	$	309	$	1,204

(a) Includes other costs associated with the implementation of our initiatives, including certain consulting and contract termination costs.

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 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		)	(a)	295
Cash payments	(91		)	—			(22		)		(113		)
Non-cash charges and translation	(65		)	(21		)	34				(52		)
Liability as of December 30, 2017	212			—			14				226
2018 restructuring charges	86			28			56				170
Cash payments (b)	(203		)	—			(52		)		(255		)
Non-cash charges and translation	(4		)	(28		)	5				(27		)
Liability as of December 29, 2018	$	91		$	—		$	23			$	114

(a) Income amount represents adjustments for changes in estimates and a gain on the sale of property, plant, and equipment.

(b) Excludes cash expenditures of $11 million reported in the cash flow statement in pension and retiree medical plan contributions.

Substantially all of the restructuring accrual at December 29, 2018 is expected to be paid by the end of 2019.

Other Productivity Initiatives

There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2019 and 2014 Productivity Plans.

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.