Pepsi 2013 Annual Report Download - page 100

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82
A summary of our 2012 Productivity Plan charges is as follows:
2013 2012 2011
Severance
and Other
Employee
Costs
Asset
Impairments
Other
Costs Total
Severance
and Other
Employee
Costs
Asset
Impairments
Other
Costs Total
Severance
and Other
Employee
Costs
Other
Costs Total
FLNA $4$ —$4$8
$ 14$ 8$16$38$ 74$ 2$76
QFNA ——11
— —99 18—18
LAF 52—7
15 82750 46 248
PAB 8 — 13 21 34 43 25 102 75 6 81
Europe 36 2 12 50 14 16 12 42 65 12 77
AMEA 21 2 2 25 18 —1028 9— 9
Corporate (a) — — (2) (2) (6) —1610 403474
$ 74 $ 6 $ 30 $ 110 $ 89 $ 75 $ 115 $ 279 $ 327 $ 56 $ 383
(a) Income amounts represent adjustments of previously recorded amounts.
A summary of our 2012 Productivity Plan activity is as follows:
Severance and Other
Employee Costs Asset Impairments Other Costs Total
2011 restructuring charges $ 327 $ — $ 56 $ 383
Cash payments (1) — (29) (30)
Non-cash charges (77) — — (77)
Liability as of December 31, 2011 249 — 27 276
2012 restructuring charges 89 75 115 279
Cash payments (239) — (104) (343)
Non-cash charges (8) (75) (2) (85)
Liability as of December 29, 2012 91 — 36 127
2013 restructuring charges 74 6 30 110
Cash payments (89) — (44) (133)
Non-cash charges (8) (6) (5) (19)
Liability as of December 28, 2013 $ 68 $ — $ 17 $ 85
Merger and Integration Charges
In 2013, we incurred merger and integration charges of $10 million ($8 million after-tax or $0.01 per share)
related to our acquisition of WBD, all of which were recorded in selling, general and administrative expenses
in the Europe segment. Substantially all of the merger and integration accrual at December 28, 2013 is
expected to be paid by the end of 2014.
In 2012, we incurred merger and integration charges of $16 million ($12 million after-tax or $0.01 per share)
related to our acquisition of WBD, including $11 million recorded in the Europe segment and $5 million
recorded in interest expense. All of these net charges, other than the interest expense portion, were recorded
in selling, general and administrative expenses.
In 2011, we incurred merger and integration charges of $329 million ($271 million after-tax or $0.17 per
share) related to our acquisitions of PBG, PAS and WBD, including $112 million recorded in the PAB
segment, $123 million recorded in the Europe segment, $78 million recorded in corporate unallocated
expenses and $16 million recorded in interest expense. All of these net charges, other than the interest expense
portion, were recorded in selling, general and administrative expenses. These charges also include closing
costs and advisory fees related to our acquisition of WBD.