v3.25.4
Restructuring and Impairment Charges
 12 Months Ended
Dec. 27, 2025
Restructuring and Related Activities [Abstract]  
Restructuring, Impairment, and Other Activities Disclosure [Text Block] Restructuring and Impairment Charges
2019 Multi-Year Productivity Plan
The 2019 Productivity Plan leverages new technology and business models to further simplify, harmonize and automate processes; re-engineers our go-to-market and information systems, including deploying the right automation for each market; and simplifies our organization and optimizes our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 2024, we further expanded and extended the plan through the end of 2030 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $6.15 billion, including cash expenditures of approximately $5.1 billion. These pre-tax charges are expected to consist of approximately 50% of severance and other employee-related costs, 15% for asset impairments (all non-cash) resulting from plant closures and related actions and 35% for other costs associated with the implementation of our initiatives.
The total plan pre-tax charges are expected to be incurred by segment approximately as follows:
PFNAPBNAIB FranchiseEMEALatAm FoodsAsia Pacific FoodsCorporate
Expected pre-tax charges20 %25 %2 %25 %10 %3 %15 %
A summary of our 2019 Productivity Plan charges is as follows:
202520242023
Cost of sales$236 $133 $13 
Selling, general and administrative expenses 728 551 433 
Impairment of intangible assets— 14 — 
Other pension and retiree medical benefits expense/(income) (a)
19 29 (1)
Total restructuring and impairment charges$983 $727 $445 
After-tax amount$792 $563 $349 
Impact on net income attributable to PepsiCo per common share$(0.58)$(0.41)$(0.25)
202520242023
Plan to Date
through 12/27/2025
PFNA$344 $161 $42 $776 
PBNA281 238 41 786 
IB Franchise14 24 11 65 
EMEA195 116 227 956 
LatAm Foods52 49 29 299 
Asia Pacific Foods12 9 8 99 
Corporate66 101 88 484 
964 698 446 3,465 
Other pension and retiree medical benefits expense/(income) (a)
19 29 (1)145 
Total$983 $727 $445 $3,610 
(a)Income amount represents adjustments for changes in estimates of previously recorded amounts.
Plan to Date
through 12/27/2025
Severance and other employee costs$1,789 
Asset impairments546 
Other costs1,275 
Total$3,610 
Severance and other employee costs primarily include severance and other termination benefits, as well as voluntary separation arrangements. Other costs primarily include costs associated with the implementation of our initiatives, including consulting and other professional fees, as well as contract termination costs.
A summary of our 2019 Productivity Plan is as follows:
Severance and Other Employee CostsAsset
Impairments		Other CostsTotal
Liability as of December 31, 2022
$188 $— $8 $196 
2023 restructuring charges243 2 200 445 
Cash payments (a)
(242)— (192)(434)
Non-cash charges and translation(1)(2)(7)(10)
Liability as of December 30, 2023
188 — 9 197 
2024 restructuring charges384 114 229 727 
Cash payments (a)
(204)— (232)(436)
Non-cash charges and translation(30)(114)20 (124)
Liability as of December 28, 2024
338 — 26 364 
2025 restructuring charges355 240 388 983 
Cash payments (a)
(384)— (412)(796)
Non-cash charges and translation(1)(240)16 (225)
Liability as of December 27, 2025
$308 $— $18 $326 
(a)Excludes cash expenditures of $12 million in 2025, $7 million in 2024 and $1 million in 2023, reported in the cash flow statement in pension and retiree medical plan contributions.
Substantially all of the restructuring accrual at December 27, 2025 is expected to be paid by the end of 2026.
Other Productivity Initiatives
There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2019 Productivity Plan.
We regularly evaluate different productivity initiatives beyond the productivity plan and other initiatives described above.
For information on additional impairment charges, see Notes 1, 4 and 9.