Pepsi 2014 Annual Report Download - page 101

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settlement in this manner is available under the tax law. The provisions of this guidance were effective as of
the beginning of our 2014 fiscal year and did not have a material impact on our financial statements.
In February 2013, the FASB issued guidance that requires an entity to disclose information showing the
effect of the items reclassified from accumulated other comprehensive income on the line items of net income.
The provisions of this guidance were effective prospectively as of the beginning of our 2013 fiscal year.
Accordingly, we included enhanced footnote disclosure for the years ended December 27, 2014 and December
28, 2013 in Note 13.
In July 2012, the FASB issued accounting guidance that permits an entity to first assess qualitative factors
to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis
for determining whether it is necessary to perform a quantitative impairment test. An entity would continue
to calculate the fair value of an indefinite-lived intangible asset if the asset fails the qualitative assessment,
while no further analysis would be required if it passes. The provisions of this guidance were effective for
2013 and have had no impact on our annual indefinite-lived intangible asset impairment test results.
In December 2011, the FASB issued disclosure requirements that were intended to enhance current disclosures
on offsetting financial assets and liabilities. The disclosures required an entity to disclose both gross and net
information about derivative instruments accounted for in accordance with the guidance on derivatives and
hedging that are eligible for offset on the balance sheet and instruments and transactions subject to an
agreement similar to a master netting arrangement. The provisions of these disclosure requirements were
effective as of the beginning of our 2014 fiscal year. Accordingly, we included enhanced footnote disclosure
in Note 10.
Note 3 — Restructuring, Impairment and Integration Charges
2014 Multi-Year Productivity Plan
The 2014 Productivity Plan includes the next generation of productivity initiatives that we believe will
strengthen our food, snack and beverage businesses by: accelerating our investment in manufacturing
automation; further optimizing our global manufacturing footprint, including closing certain manufacturing
facilities; re-engineering our go-to-market systems in developed markets; expanding shared services; and
implementing simplified organization structures to drive efficiency. The 2014 Productivity Plan is in addition
to the 2012 Productivity Plan and is expected to continue the benefits of that plan.
In 2014 and 2013, we incurred restructuring charges of $357 million ($262 million after-tax or $0.17 per
share) and $53 million ($39 million after-tax or $0.02 per share), respectively, in conjunction with our 2014
Productivity Plan. All of these charges were recorded in selling, general and administrative expenses and
primarily relate to severance and other employee-related costs, asset impairments (all non-cash), and contract
termination costs. Substantially all of the restructuring accrual at December 27, 2014 is expected to be paid
by the end of 2015.
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