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Restructuring and Impairment Charges
 12 Months Ended
Dec. 31, 2022
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, in the fourth quarter of 2022, we expanded and extended the plan through the end of 2028 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $3.65 billion, including cash expenditures of approximately $2.9 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 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:
202220212020
Cost of sales$33 $29 $30 
Selling, general and administrative expenses 347 208 239 
Other pension and retiree medical benefits expense31 10 20 
Total restructuring and impairment charges$411 $247 $289 
After-tax amount$334 $206 $231 
Impact on net income attributable to PepsiCo per common share$(0.24)$(0.15)$(0.17)
202220212020
Plan to Date
through 12/31/2022
FLNA $46 $28 $83 $210 
QFNA7 — 5 19 
PBNA68 20 47 226 
LatAm32 37 31 171 
Europe109 81 48 343 
AMESA12 15 14 82 
APAC16 7 5 77 
Corporate90 49 36 229 
380 237 269 1,357 
Other pension and retiree medical benefits income31 10 20 98 
Total$411 $247 $289 $1,455 
Plan to Date
through 12/31/2022
Severance and other employee costs$807 
Asset impairments190 
Other costs458 
Total$1,455 
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 is as follows:
Severance and Other Employee CostsAsset
Impairments		Other CostsTotal
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, 2020122 — 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 
2022 restructuring charges243 33 135 411 
Cash payments (a)
(90)— (134)(224)
Non-cash charges and translation(29)(33)— (62)
Liability as of December 31, 2022
$188 $— $8 $196 
(a)Excludes cash expenditures of $1 million in 2022 and $2 million in both 2021 and 2020, reported in the cash flow statement in pension and retiree medical plan contributions.
Substantially all of the restructuring accrual at December 31, 2022 is expected to be paid by the end of 2023.
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.