Restructuring and Impairment Charges (Tables)

6 Months Ended

Jun. 15, 2024

2019 Productivity Plan

Restructuring Cost and Reserve [Line Items]

Summary of Productivity Plan Activity

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 leverages new technology and business models to further simplify, harmonize and automate processes; re-engineers our go-to-market and information systems, including deploying the right automation for each market; and simplifies our organization and optimize our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 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:

	FLNA		QFNA		PBNA		LatAm		Europe		AMESA		APAC		Corporate
Expected pre-tax charges	10	%	1	%	30	%	10	%	25	%	5	%	4	%	15	%

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

	12 Weeks Ended				24 Weeks Ended
	6/15/2024		6/17/2023		6/15/2024		6/17/2023
Cost of sales	$	—	$	3	$	6	$	6
Selling, general and administrative expenses	66		89		149		199
Other pension and retiree medical benefits expense/(income) (a)	8		—		15		(1)
Total restructuring and impairment charges	$	74	$	92	$	170	$	204
After-tax amount	$	54	$	63	$	130	$	161
Impact on net income attributable to PepsiCo per common share	$	(0.04)	$	(0.05)	$	(0.09)	$	(0.12)

	12 Weeks Ended				24 Weeks Ended				Plan-to-Date
	6/15/2024		6/17/2023		6/15/2024		6/17/2023		through 6/15/2024
FLNA	$	13	$	6	$	35	$	13	$	287
QFNA	—		—		4		—		23
PBNA	5		5		15		10		282
LatAm	16		6		21		11		221
Europe	19		52		37		141		603
AMESA	3		—		3		5		100
APAC	4		4		4		5		89
Corporate	6		19		36		20		353
	66		92		155		205		1,958
Other pension and retiree medical benefits expense/(income) (a)	8		—		15		(1)		112
Total	$	74	$	92	$	170	$	204	$	2,070

(a)Income amount represents adjustments for changes in estimates of previously recorded amounts.

	12 Weeks Ended				24 Weeks Ended				Plan-to-Date
	6/15/2024		6/17/2023		6/15/2024		6/17/2023		through 6/15/2024
Severance and other employee costs	$	10	$	50	$	82	$	142	$	1,132
Asset impairments	3		—		4		—		196
Other costs	61		42		84		62		742
Total	$	74	$	92	$	170	$	204	$	2,070

A summary of our 2019 Productivity Plan activity for the 24 weeks ended June 15, 2024 is as follows:

	Severance and Other Employee Costs		Asset Impairments		Other Costs		Total
Liability as of December 30, 2023	$	188	$	—	$	9	$	197
2024 restructuring charges	82		4		84		170
Cash payments	(84)		—		(89)		(173)
Non-cash charges and translation	(11)		(4)		14		(1)
Liability as of June 15, 2024	$	175	$	—	$	18	$	193