Pepsi 2014 Annual Report Download - page 103

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83
A summary of our 2012 Productivity Plan charges is as follows:
2014 2013 2012
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
Asset
Impairments
Other
Costs Total
FLNA (a) $ (1) $ — $ 3 $ 2 $ 4 $ — $ 4 $ 8 $ 14 $ 8 $ 16 $ 38
QFNA — — — — — — 1 1 — — 9 9
LAF (a) 19 — (19) — 5 2 — 7 15 8 27 50
PAB (3) 1 9 7 8 — 13 21 34 43 25 102
Europe 6 5 18 29 36 2 12 50 14 16 12 42
AMEA 12 — 3 15 21 2 2 25 18 — 10 28
Corporate (a) (2) — 10 8 — — (2) (2) (6) — 16 10
$ 31 $ 6 $ 24 $ 61 $ 74 $ 6 $ 30 $ 110 $ 89 $ 75 $ 115 $ 279
(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
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
2014 restructuring charges 31 6 24 61
Cash payments (65) — (36) (101)
Non-cash charges (6) (6) — (12)
Liability as of December 27, 2014 $ 28 $ — $ 5 $ 33
Other Productivity Initiatives
In 2014, the Company incurred pre-tax charges of $67 million ($54 million after-tax or $0.04 per share)
related to productivity and efficiency initiatives outside the scope of the 2014 and 2012 Productivity Plans
discussed above, including $11 million in LAF, $26 million in Europe and $30 million in AMEA. These
charges were primarily recorded in selling, general and administrative expenses and reflect severance and
other employee-related costs. These initiatives were excluded from Items Affecting Comparability. See
additional unaudited information in “Results of Operations – Division Review” in Management’s Discussion
and Analysis of Financial Condition and Results of Operations.
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