Pepsi 2014 Annual Report Download - page 70

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50
We expect to incur pre-tax charges of approximately $990 million, of which approximately $690 million
represents cash expenditures related to the 2014 Productivity Plan, summarized by period as follows:
Charges
Cash
Expenditures
2013 $ 53 $ —
2014 357 175 (b)
2015 (expected) 242 234
2016 - 2019 (expected) 338 281
$ 990 (a) $ 690
(a) This total pre-tax charge will consist of approximately $550 million of severance and other employee-related costs,
approximately $180 million for asset impairments (all non-cash) resulting from plant closures and related actions, and
approximately $260 million for other costs, including costs related to the termination of leases and other contracts. This charge
is expected to impact reportable segments approximately as follows: FLNA 13%, QFNA 2%, LAF 15%, PAB 35%, Europe
25%, AMEA 4% and Corporate 6%.
(b) In 2014, cash expenditures include $10 million reported on the Consolidated Statement of Cash Flows in pension and retiree
medical plan contributions.
2012 Multi-Year Productivity Plan
The multi-year productivity plan we publicly announced on February 9, 2012 (2012 Productivity Plan)
includes actions in every aspect of our business that we believe will strengthen our complementary food,
snack and beverage businesses by: leveraging new technologies and processes across PepsiCo’s operations,
go-to-market and information systems; heightening the focus on best practice sharing across the globe;
consolidating manufacturing, warehouse and sales facilities; and implementing simplified organization
structures, with wider spans of control and fewer layers of management. The 2012 Productivity Plan continues
to enhance PepsiCo’s cost-competitiveness and provide a source of funding for future brand-building and
innovation initiatives.
In 2014, 2013 and 2012, we incurred restructuring charges of $61 million ($54 million after-tax or $0.04 per
share), $110 million ($90 million after-tax or $0.06 per share) and $279 million ($215 million after-tax or
$0.14 per share), respectively, in conjunction with our 2012 Productivity Plan. See Note 3 to our consolidated
financial statements for further information.
We expect to incur pre-tax charges of approximately $910 million, of which approximately $704 million
represents cash expenditures related to the 2012 Productivity Plan, summarized by period as follows:
Charges
Cash
Expenditures
2011 $ 383 $ 30
2012 279 343
2013 110 133
2014 61 101
2015 (expected) 77 97
$ 910 (a) $ 704
(a) This total pre-tax charge will consist of approximately $545 million of severance and other employee-related costs,
approximately $90 million for asset impairments (all non-cash) resulting from plant closures and related actions, and
approximately $275 million for other costs, including costs related to the termination of leases and other contracts. This charge
is expected to impact reportable segments approximately as follows: FLNA 14%, QFNA 3%, LAF 13%, PAB 24%, Europe
23%, AMEA 8% and Corporate 15%.
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