XML 27 R11.htm IDEA: XBRL DOCUMENT v3.22.0.1
Restructuring and Impairment Charges
 12 Months Ended
Dec. 25, 2021
Restructuring and Related Activities [Abstract]  
Restructuring, Impairment, and Other Activities Disclosure [Text Block] Restructuring and Impairment 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; 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 55% of severance and other employee-related costs, 10% for asset impairments (all non-cash) resulting from plant closures and related actions and 35% 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 %5 %4 %15 %
A summary of our 2019 Productivity Plan charges is as follows:
202120202019
Cost of sales$29 $30 $115 
Selling, general and administrative expenses 208 239 253 
Other pension and retiree medical benefits expense10 20 2 
Total restructuring and impairment charges$247 $289 $370 
After-tax amount$206 $231 $303 
Impact on net income attributable to PepsiCo per common share$(0.15)$(0.17)$(0.21)
202120202019
Plan to Date
through 12/25/2021
FLNA $28 $83 $22 $164 
QFNA— 5 2 12 
PBNA20 47 51 158 
LatAm37 31 62 139 
Europe81 48 99 234 
AMESA15 14 38 70 
APAC7 5 47 61 
Corporate49 36 47 139 
237 269 368 977 
Other pension and retiree medical benefits expense10 20 2 67 
Total$247 $289 $370 $1,044 
Plan to Date
through 12/25/2021
Severance and other employee costs$564 
Asset impairments157 
Other costs323 
Total$1,044 
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
Liability as of December 29, 2018$105 $— $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, 2019128 — 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 
2021 restructuring charges120 32 95 247 
Cash payments (a)
(163)— (93)(256)
Non-cash charges and translation(15)(32)— (47)
Liability as of December 25, 2021
$64 $— $7 $71 
(a)Excludes cash expenditures of $2 million in both 2021 and 2020, and $4 million in 2019, reported in the cash flow statement in pension and retiree medical plan contributions.
Substantially all of the restructuring accrual at December 25, 2021 is expected to be paid by the end of 2022.
Other Productivity Initiatives
There were no material 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.