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Restructuring, Impairment and Integration Charges
 12 Months Ended
Dec. 26, 2020
Restructuring and Related Activities [Abstract]  
Restructuring, Impairment, and Other Activities Disclosure [Text Block] Restructuring and Impairment Charges
A summary of our restructuring and impairment charges and other productivity initiatives is as follows:
202020192018
2019 Productivity Plan$289 $370 $138 
2014 Productivity Plan— — 170 
Total restructuring and impairment charges289 370 308 
Other productivity initiatives— 3 8 
Total restructuring and impairment charges and other productivity initiatives
$289 $373 $316 
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; and simplify our organization and optimize our manufacturing and supply chain footprint. In connection with this plan, we expect to incur pre-tax charges of approximately $2.5 billion, including cash expenditures of approximately $1.6 billion. These pre-tax charges are expected to consist of approximately 65% of severance and other employee-related costs, 15% for asset impairments (all non-cash) resulting from plant closures and related actions and 20% for other costs associated with the implementation of our initiatives. We expect to complete this plan by 2023.
The total expected plan pre-tax charges are expected to be incurred by division approximately as follows:
FLNAQFNAPBNALatAmEuropeAMESAAPACCorporate
Expected pre-tax charges15 %1 %30 %10 %25 %5 %3 %11 %
A summary of our 2019 Productivity Plan charges is as follows:
202020192018
Cost of sales$30 $115 $3 
Selling, general and administrative expenses 239 253 100 
Other pension and retiree medical benefits expense20 2 35 
Total restructuring and impairment charges$289 $370 $138 
After-tax amount$231 $303 $109 
Net income attributable to PepsiCo per common share$0.17 $0.21 $0.08 
202020192018
Plan to Date
through 12/26/2020
FLNA $83 $22 $31 $136 
QFNA5 2 5 12 
PBNA47 51 40 138 
LatAm31 62 9 102 
Europe48 99 6 153 
AMESA14 38 3 55 
APAC5 47 2 54 
Corporate36 47 7 90 
269 368 103 740 
Other pension and retiree medical benefits expense20 2 35 57 
Total$289 $370 $138 $797 
Plan to Date
through 12/26/2020
Severance and other employee costs$444 
Asset impairments125 
Other costs228 
Total$797 
Severance and other employee costs primarily include severance and other termination benefits, as well as voluntary separation arrangements. Other costs primarily include costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees.
A summary of our 2019 Productivity Plan activity is as follows:
Severance and Other Employee CostsAsset
Impairments		Other CostsTotal
2018 restructuring charges$137 $— $1 $138 
Non-cash charges and translation(32)— — (32)
Liability as of December 29, 2018105 — 1 106 
2019 restructuring charges149 92 129 370 
Cash payments (a)
(138)— (119)(257)
Non-cash charges and translation12 (92)10 (70)
Liability as of December 28, 2019
128 — 21 149 
2020 restructuring charges158 33 98 289 
Cash payments (a)
(138)— (117)(255)
Non-cash charges and translation(26)(33)3 (56)
Liability as of December 26, 2020
$122 $— $5 $127 
(a)Excludes cash expenditures of $2 million and $4 million for 2020 and 2019, respectively, reported in the cash flow statement in pension and retiree medical contributions.
Substantially all of the restructuring accrual at December 26, 2020 is expected to be paid by the end of 2021.
2014 Multi-Year Productivity Plan
The 2014 Productivity Plan, publicly announced on February 13, 2014, included the next generation of productivity initiatives that we believed would 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 plan through the end of 2019 to take advantage of additional opportunities within the initiatives described above that further strengthened our beverage, food and snack businesses.
The 2014 Productivity Plan was completed in 2019. In 2019, there were no material pre-tax charges related to this plan and all cash payments were paid at year end. The total plan pre-tax charges and cash expenditures approximated the previously disclosed plan estimates of $1.3 billion and $960 million, respectively. These total plan pre-tax charges consisted of 59% of severance and other employee costs, 15% of asset impairments and 26% of other costs, including costs associated with the implementation of our initiatives, including certain consulting and other contract termination costs. These total plan pre-tax charges were incurred by division as follows: FLNA 14%, QFNA 3%, PBNA 29%, LatAm 15%, Europe 23%, AMESA 3%, APAC 3% and Corporate 10%.
A summary of our 2014 Productivity Plan charges is as follows:
2018
Selling, general and administrative expenses $169 
Other pension and retiree medical benefits expense1 
Total restructuring and impairment charges$170 
After-tax amount$143 
Net income attributable to PepsiCo per common share$0.10 
2018
FLNA $8 
QFNA2 
PBNA51 
LatAm30 
Europe53 
AMESA 15 
APAC12 
Corporate (a)
(1)
Total$170 
(a)Income amount primarily relates to other pension and retiree medical benefits.
A summary of our 2014 Productivity Plan activity is as follows:
Severance and Other Employee CostsAsset
Impairments		Other CostsTotal
Liability as of December 30, 2017$212 $— $14 $226 
2018 restructuring charges86 28 56 170 
Cash payments (a)
(203)— (52)(255)
Non-cash charges and translation(4)(28)5 (27)
Liability as of December 29, 201891 — 23 114 
Cash payments(77)— (16)(93)
Non-cash charges and translation(14)— (7)(21)
Liability as of December 28, 2019$— $— $— $— 
(a)Excludes cash expenditures of $11 million reported in the cash flow statement in pension and retiree medical plan contributions.
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.