Pepsi 2015 Annual Report Download - page 70

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Table of Contents
53
In 2013, we recognized $72 million ($44 million after-tax or $0.03 per share) of mark-to-market net losses
on commodity hedges in corporate unallocated expenses, with an $82 million net loss recognized in cost of
sales and a $10 million net gain recognized in selling, general and administrative expenses.
See Note 1 to our consolidated financial statements for further information.
Restructuring and Impairment Charges
2014 Multi-Year Productivity Plan
In 2015, 2014 and 2013, we incurred restructuring charges of $169 million ($134 million after-tax or $0.09
per share), $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 Multi-Year Productivity Plan (2014
Productivity Plan). See Note 3 to our consolidated financial statements for further information.
We expect to incur pre-tax charges of approximately $990 million, of which approximately $705 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 169 165 (b)
2016 (expected) 132 150
2017 - 2019 (expected) 279 215
$ 990 (a) $ 705
(a) This total pre-tax charge will consist of approximately $525 million of severance and other employee-related costs,
approximately $120 million for asset impairments (all non-cash) resulting from plant closures and related actions, and
approximately $345 million for other costs associated with the implementation of our initiatives, including contract termination
costs. This charge is expected to impact reportable segments approximately as follows: FLNA 12%, QFNA 2%, NAB 35%,
Latin America 15%, ESSA 25%, AMENA 4% and Corporate 7%.
(b) In 2015 and 2014, cash expenditures include $2 million and $10 million, respectively, reported on the Consolidated Statement
of Cash Flows in pension and retiree medical plan contributions.
2012 Multi-Year Productivity Plan
In 2015, 2014 and 2013, we incurred restructuring charges of $61 million ($50 million after-tax or $0.03 per
share), $61 million ($54 million after-tax or $0.04 per share) and $110 million ($90 million after-tax or $0.06
per share), respectively, in conjunction with our 2012 Multi-Year Productivity Plan (2012 Productivity Plan).
See Note 3 to our consolidated financial statements for further information.