Pepsi 2015 Annual Report Download - page 71

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Table of Contents
54
We incurred pre-tax charges of $894 million, of which $694 million represented 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 61 49 (b)
2016 - 2017 (expected) — 38
$ 894 (a) $ 694
(a) This total pre-tax charge consisted of $560 million of severance and other employee-related costs, $91 million for asset
impairments (all non-cash) resulting from plant closures and related actions, and $243 million for other costs, including costs
related to the termination of leases and other contracts. This charge impacted our reportable segments as follows: FLNA 14%,
QFNA 3%, NAB 22%, Latin America 14%, ESSA 25%, AMENA 11% and Corporate 11%.
(b) In 2015, cash expenditures include $4 million reported on the Consolidated Statement of Cash Flows in pension and retiree
medical plan contributions.
Pension-Related Settlements
In 2015, we recorded pre-tax gains of $67 million ($42 million after-tax or $0.03 per share) in the NAB
segment associated with the settlement of pension-related liabilities from previous acquisitions. These gains
were recognized in selling, general and administrative expenses.
In 2014, we recorded a pension lump sum settlement charge in corporate unallocated expenses of $141 million
($88 million after-tax or $0.06 per share) related to payments for pension liabilities to certain former
employees who had vested benefits. See Note 7 to our consolidated financial statements.
Charge Related to the Transaction with Tingyi
In 2015, we recorded a pre- and after-tax charge of $73 million ($0.05 per share) in the AMENA segment
related to a write-off of the value of a call option to increase our holding in TAB to 20%.
See Note 10 to our consolidated financial statements.
Venezuela Impairment Charges
In 2015, we recorded pre- and after-tax charges of $1.4 billion ($0.91 per share) in the Latin America segment
related to the impairment of investments in our wholly-owned Venezuelan subsidiaries and beverage joint
venture.
For additional information on Venezuela, see Note 1 to our consolidated financial statements and “Our
Business Risks.”
Venezuela Remeasurement Charges
In 2014, we recorded a $105 million net charge related to our remeasurement of the bolivar for certain net
monetary assets of our Venezuelan businesses. $126 million of this charge was recorded in corporate
unallocated expenses, with the balance (equity income of $21 million) recorded in our Latin America segment.
In total, this net charge had an after-tax impact of $105 million or $0.07 per share.