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Restructuring and Impairment Charges Restructuring and Impairment Charges (Notes)
 8 Months Ended
Sep. 04, 2021
Restructuring and Related Activities [Abstract]  
Restructuring, Impairment, and Other Activities Disclosure [Text Block] Restructuring and Impairment Charges
2019 Multi-Year Productivity Plan
We publicly announced a multi-year productivity plan on February 15, 2019 (2019 Productivity Plan) that 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. To build on the successful implementation of the 2019 Productivity Plan to date, we expanded and extended the plan through the end of 2026 to take advantage of additional opportunities within the initiatives described above. We now expect to incur pre-tax charges of approximately $3.15 billion, including cash expenditures of approximately $2.4 billion, as compared to our previous estimate of pre-tax charges of approximately $2.5 billion, which included 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, 10% for asset impairments (all non-cash) resulting from plant closures and related actions, and 25% for other costs associated with the implementation of our initiatives.
The total expected plan pre-tax charges are expected to be incurred by division approximately as follows:
FLNAQFNAPBNALatAmEuropeAMESAAPACCorporate
Expected pre-tax charges15 %1 %25 %10 %25 %6 %3 %15 %
A summary of our 2019 Productivity Plan charges is as follows:
12 Weeks Ended36 Weeks Ended
9/4/20219/5/20209/4/20219/5/2020
Cost of sales$9 $1 $13 $4 
Selling, general and administrative expenses 42 59 110 112 
Other pension and retiree medical benefits expense1 1 6 8 
Total restructuring and impairment charges$52 $61 $129 $124 
After-tax amount$45 $48 $109 $101 
Net income attributable to PepsiCo per common share$(0.03)$(0.03)$(0.08)$(0.07)
12 Weeks Ended36 Weeks EndedPlan to Date
9/4/20219/5/20209/4/20219/5/2020
through 9/4/2021
FLNA $2 $2 $20 $9 $156 
QFNA1 — 1 1 13 
PBNA3 29 8 32 146 
LatAm14 5 22 14 124 
Europe20 13 46 29 199 
AMESA 5 2 9 9 64 
APAC1 1 2 4 56 
Corporate5 8 15 18 105 
51 60 123 116 863 
Other pension and retiree medical benefits expense1 1 6 8 63 
Total$52 $61 $129 $124 $926 
12 Weeks Ended36 Weeks EndedPlan to Date
9/4/20219/5/20209/4/20219/5/2020
through 9/4/2021
Severance and other employee costs$28 $23 $77 $47 $521 
Asset impairments3 15 4 20 129 
Other costs21 23 48 57 276 
Total$52 $61 $129 $124 $926 
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 for the 36 weeks ended September 4, 2021 is as follows:
Severance and Other Employee CostsAsset
Impairments		Other CostsTotal
Liability as of December 26, 2020$122 $— $5 $127 
2021 restructuring charges77 4 48 129 
Cash payments (a)
(119)— (46)(165)
Non-cash charges and translation(8)(4)(2)(14)
Liability as of September 4, 2021$72 $— $5 $77 
(a)Excludes cash expenditures of $2 million reported in the cash flow statement in pension and retiree medical contributions.
Substantially all of the restructuring accrual at September 4, 2021 is expected to be paid by the end of 2021.
Other Productivity Initiatives
There were no charges related to other productivity and efficiency initiatives outside the scope of the 2019 Productivity Plan.
We regularly evaluate different productivity initiatives beyond the productivity plan and other initiatives described above.