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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 23, 2019 (12 weeks)
OR
 
    
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to             
Commission file number 1-1183
pepsicologo20185a02.jpg 
PepsiCo, Inc.
(Exact Name of Registrant as Specified in its Charter)
 
 
 
 
North Carolina
 
13-1584302
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
 
 
700 Anderson Hill Road, Purchase, New York
 
10577
(Address of Principal Executive Offices)
 
(Zip Code)

914-253-2000
(Registrant’s Telephone Number, Including Area Code)

N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES   x    NO  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    YES   x    NO  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer  x
 
Accelerated filer  ¨
  Non-accelerated filer  ¨
 
Smaller reporting company ¨
 
 
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES   ¨    NO  x
Number of shares of Common Stock outstanding as of April 10, 2019 was 1,401,821,663.


Table of Contents    


PepsiCo, Inc. and Subsidiaries

Table of Contents
 
 
Page No.
Part I Financial Information
 
Item 1.
Condensed Consolidated Financial Statements
 
 
 
 
 
 
 
Item 2.
Report of Independent Registered Public Accounting Firm
Item 3.
Item 4.
Part II Other Information
 
Item 1.
Item 1A.
Item 2.
Item 6.


2

Table of Contents    


PART I FINANCIAL INFORMATION
ITEM 1. Condensed Consolidated Financial Statements.

Condensed Consolidated Statement of Income
PepsiCo, Inc. and Subsidiaries
(in millions except per share amounts, unaudited) 
 
12 Weeks Ended
 
3/23/2019

 
3/24/2018

Net Revenue
$
12,884

 
$
12,562

Cost of sales
5,688

 
5,655

Gross profit
7,196

 
6,907

Selling, general and administrative expenses
5,188

 
5,100

Operating Profit
2,008

 
1,807

Other pension and retiree medical benefits income
64

 
75

Interest expense
(267
)
 
(294
)
Interest income and other
63

 
69

Income before income taxes
1,868

 
1,657

Provision for income taxes
446

 
304

Net income
1,422

 
1,353

Less: Net income attributable to noncontrolling interests
9

 
10

Net Income Attributable to PepsiCo
$
1,413

 
$
1,343

Net Income Attributable to PepsiCo per Common Share
 
 
 
Basic
$
1.01

 
$
0.94

Diluted
$
1.00

 
$
0.94

Weighted-average common shares outstanding
 
 
 
Basic
1,406

 
1,420

Diluted
1,413

 
1,430


See accompanying notes to the condensed consolidated financial statements.

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Condensed Consolidated Statement of Comprehensive Income
PepsiCo, Inc. and Subsidiaries
(in millions, unaudited) 
 
12 Weeks Ended
 
3/23/2019

 
3/24/2018

Net income
$
1,422

 
$
1,353

Other comprehensive income/(loss), net of taxes:
 
 
 
Net currency translation adjustment
473

 
290

Net change on cash flow hedges
(27
)
 
28

Net pension and retiree medical adjustments
17

 
24

Net change on available-for-sale securities

 
(2
)
 
463

 
340

Comprehensive income
1,885

 
1,693

Comprehensive income attributable to noncontrolling interests
(9
)
 
(10
)
Comprehensive Income Attributable to PepsiCo
$
1,876

 
$
1,683



See accompanying notes to the condensed consolidated financial statements.

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Condensed Consolidated Statement of Cash Flows
PepsiCo, Inc. and Subsidiaries
(in millions, unaudited)
 
12 Weeks Ended
 
3/23/2019

 
3/24/2018

Operating Activities
 
 
 
Net income
$
1,422

 
$
1,353

Depreciation and amortization
498

 
496

Share-based compensation expense
57

 
80

Restructuring and impairment charges
26

 
12

Cash payments for restructuring charges
(52
)
 
(39
)
Pension and retiree medical plan expenses
47

 
46

Pension and retiree medical plan contributions
(260
)
 
(1,521
)
Deferred income taxes and other tax charges and credits
216

 
49

Tax (benefits)/net tax expense related to the Tax Cuts and Jobs Act (TCJ Act)
(29
)
 
1

Change in assets and liabilities:
 
 
 
Accounts and notes receivable
(406
)
 
(162
)
Inventories
(435
)
 
(383
)
Prepaid expenses and other current assets
(382
)
 
(347
)
Accounts payable and other current liabilities
(1,207
)
 
(1,050
)
Income taxes payable
120

 
178

Other, net
40

 
(22
)
Net Cash Used for Operating Activities
(345
)
 
(1,309
)
 
 
 
 
Investing Activities
 
 
 
Capital spending
(442
)
 
(352
)
Sales of property, plant and equipment
2

 
9

Acquisition of SodaStream International Ltd. (SodaStream)
(1,807
)
 

Other acquisitions and investments in noncontrolled affiliates
(56
)
 
(36
)
Divestitures

 
42

Short-term investments, by original maturity:
 
 
 
More than three months - purchases

 
(3,416
)
More than three months - maturities

 
4,609

More than three months - sales

 
533

Three months or less, net
9

 
7

Other investing, net
(6
)
 

Net Cash (Used for)/Provided by Investing Activities
(2,300
)
 
1,396

 
 
 
 
Financing Activities
 
 
 
Proceeds from issuances of long-term debt
1,122

 

Payments of long-term debt
(1,851
)
 

Short-term borrowings, by original maturity:
 
 
 
More than three months - proceeds
2

 

More than three months - payments

 
(1
)
Three months or less, net
115

 
4,291

Cash dividends paid
(1,332
)
 
(1,160
)
Share repurchases - common
(940
)
 
(493
)
Share repurchases - preferred

 
(2
)
Proceeds from exercises of stock options
103

 
125

Withholding tax payments on restricted stock units (RSUs), performance stock units (PSUs) and PepsiCo
equity performance units (PEPunits) converted
(93
)
 
(76
)
Other financing
(2
)
 
(2
)
Net Cash (Used for)/Provided by Financing Activities
(2,876
)
 
2,682

Effect of exchange rate changes on cash and cash equivalents and restricted cash
57

 
49

Net (Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash
(5,464
)
 
2,818

Cash and Cash Equivalents and Restricted Cash, Beginning of Year
10,769

 
10,657

Cash and Cash Equivalents and Restricted Cash, End of Period
$
5,305

 
$
13,475


See accompanying notes to the condensed consolidated financial statements.

5

Table of Contents    


Condensed Consolidated Balance Sheet
PepsiCo, Inc. and Subsidiaries
(in millions except per share amounts)
 
(Unaudited)

 
 
 
3/23/2019

 
12/29/2018

ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
5,072

 
$
8,721

Short-term investments
289

 
272

Restricted cash
190

 
1,997

Accounts and notes receivable, less allowance: 3/19 - $113 and 12/18 - $101
7,604

 
7,142

Inventories:
 
 
 
Raw materials and packaging
1,438

 
1,312

Work-in-process
257

 
178

Finished goods
1,859

 
1,638

 
3,554

 
3,128

Prepaid expenses and other current assets
1,208

 
633

Total Current Assets
17,917

 
21,893

Property, plant and equipment
40,245

 
40,164

Accumulated depreciation
(22,695
)
 
(22,575
)
 
17,550

 
17,589

Amortizable Intangible Assets, net
1,641

 
1,644

Goodwill
14,945

 
14,808

Other indefinite-lived intangible assets
14,334

 
14,181

Indefinite-Lived Intangible Assets
29,279

 
28,989

Investments in Noncontrolled Affiliates
2,476

 
2,409

Deferred Income Taxes
4,361

 
4,364

Other Assets
2,242

 
760

Total Assets
$
75,466

 
$
77,648

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current Liabilities
 
 
 
Short-term debt obligations
$
3,291

 
$
4,026

Accounts payable and other current liabilities
15,799

 
18,112

Total Current Liabilities
19,090

 
22,138

Long-Term Debt Obligations
28,458

 
28,295

Deferred Income Taxes
3,619

 
3,499

Other Liabilities
10,003

 
9,114

Total Liabilities
61,170

 
63,046

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
PepsiCo Common Shareholders’ Equity
 
 
 
Common stock, par value 12/3¢ per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,404 and 1,409 shares, respectively)
23

 
23

Capital in excess of par value
3,753

 
3,953

Retained earnings
60,060

 
59,947

Accumulated other comprehensive loss
(14,656
)
 
(15,119
)
Repurchased common stock, in excess of par value (463 and 458 shares, respectively)
(34,978
)
 
(34,286
)
Total PepsiCo Common Shareholders’ Equity
14,202

 
14,518

Noncontrolling interests
94

 
84

Total Equity
14,296

 
14,602

Total Liabilities and Equity
$
75,466

 
$
77,648


See accompanying notes to the condensed consolidated financial statements.

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Table of Contents    


Condensed Consolidated Statement of Equity
PepsiCo, Inc. and Subsidiaries
(in millions, unaudited)
 
12 Weeks Ended
 
3/23/2019
 
3/24/2018
 
Shares
 
Amount
 
Shares
 
Amount
Preferred Stock
 
 
 
 
 
 
 
Balance, beginning of year

 
$

 
0.8

 
$
41

Conversion to common stock

 

 
(0.1
)
 
(6
)
Retirement of preferred stock

 

 
(0.7
)
 
(35
)
Balance, end of period

 

 

 

Repurchased Preferred Stock
 
 
 
 
 
 
 
Balance, beginning of year

 

 
(0.7
)
 
(197
)
Redemptions

 

 

 
(2
)
Retirement of preferred stock

 

 
0.7

 
199

Balance, end of period

 

 

 

Common Stock
 
 
 
 
 
 
 
Balance, beginning of year
1,409

 
23

 
1,420

 
24

Shares issued in connection with preferred stock conversion to common stock

 

 
1

 

Change in repurchased common stock
(5
)
 

 
(2
)
 

Balance, end of period
1,404

 
23

 
1,419

 
24

Capital in Excess of Par Value
 
 
 
 
 
 
 
Balance, beginning of year
 
 
3,953

 
 
 
3,996

Share-based compensation expense
 
 
57

 
 
 
83

Equity issued in connection with preferred stock conversion to common stock
 
 

 
 
 
6

Stock option exercises, RSUs, PSUs and PEPunits converted
 
 
(164
)
 
 
 
(142
)
Withholding tax on RSUs, PSUs and PEPunits converted
 
 
(93
)
 
 
 
(76
)
Other
 
 

 
 
 
(1
)
Balance, end of period
 
 
3,753

 
 
 
3,866

Retained Earnings
 
 
 
 
 
 
 
Balance, beginning of year
 
 
59,947

 
 
 
52,839

Cumulative effect of accounting changes
 
 
8

 
 
 
(145
)
Net income attributable to PepsiCo
 
 
1,413

 
 
 
1,343

Cash dividends declared – common (a)
 
 
(1,308
)
 
 
 
(1,147
)
Retirement of preferred stock
 
 

 
 
 
(164
)
Balance, end of period
 
 
60,060

 
 
 
52,726

Accumulated Other Comprehensive Loss
 
 
 
 
 
 
 
Balance, beginning of year
 
 
(15,119
)
 
 
 
(13,057
)
Other comprehensive income attributable to PepsiCo
 
 
463

 
 
 
340

Balance, end of period
 
 
(14,656
)
 
 
 
(12,717
)
Repurchased Common Stock
 
 
 
 
 
 
 
Balance, beginning of year
(458
)
 
(34,286
)
 
(446
)
 
(32,757
)
Share repurchases
(9
)
 
(971
)
 
(5
)
 
(521
)
Stock option exercises, RSUs, PSUs and PEPunits converted
4

 
279

 
3

 
261

Other

 

 

 
1

Balance, end of period
(463
)
 
(34,978
)
 
(448
)
 
(33,016
)
Total PepsiCo Common Shareholders’ Equity
 
 
14,202

 
 
 
10,883

Noncontrolling Interests
 
 
 
 
 
 
 
Balance, beginning of year
 
 
84

 
 
 
92

Net income attributable to noncontrolling interests
 
 
9

 
 
 
10

Other, net
 
 
1

 
 
 

Balance, end of period
 
 
94

 
 
 
102

Total Equity
 
 
$
14,296

 
 
 
$
10,985


(a)
Cash dividends declared per common share were $0.9275 and $0.805 for the 12 weeks ended March 23, 2019 and March 24, 2018, respectively.
See accompanying notes to the condensed consolidated financial statements.

7

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Notes to the Condensed Consolidated Financial Statements
Note 1 - Basis of Presentation and Our Divisions
Basis of Presentation
When used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its consolidated subsidiaries, collectively.
Our Condensed Consolidated Balance Sheet as of March 23, 2019 and Condensed Consolidated Statements of Income, Comprehensive Income, Cash Flows and Equity for the 12 weeks ended March 23, 2019 and March 24, 2018 have not been audited. These statements have been prepared on a basis that is substantially consistent with the accounting principles applied in our Annual Report on Form 10-K for the fiscal year ended December 29, 2018 (2018 Form 10-K), as modified to reflect the adoption of those recently issued accounting pronouncements disclosed in Note 2 in this Form 10-Q. This report should be read in conjunction with our 2018 Form 10-K. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation. The results for the 12 weeks ended March 23, 2019 are not necessarily indicative of the results expected for any future period or the full year.
While our financial results in the United States and Canada (North America) are reported on a 12-week basis, substantially all of our international operations report on a monthly calendar basis for which the months of January and February are reflected in our first quarter results.
Our significant interim accounting policies include the recognition of a pro rata share of certain estimated annual sales incentives and certain advertising and marketing costs in proportion to revenue or volume, as applicable, and the recognition of income taxes using an estimated annual effective tax rate. Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw materials handling facilities, are included in cost of sales. The costs of moving, storing and delivering finished product, including merchandising activities, are included in selling, general and administrative expenses.
The following information is unaudited. Unless otherwise noted, tabular dollars are in millions, except per share amounts. All per share amounts reflect common per share amounts, assume dilution unless otherwise noted, and are based on unrounded amounts.
Our Divisions
We are organized into six reportable segments (also referred to as divisions), as follows:
1)
Frito-Lay North America (FLNA), which includes our branded food and snack businesses in the United States and Canada;
2)
Quaker Foods North America (QFNA), which includes our cereal, rice, pasta and other branded food businesses in the United States and Canada;
3)
PepsiCo Beverages North America (PBNA), which includes our beverage businesses in the United States and Canada. PBNA was formerly named North America Beverages; this change did not impact the results of PBNA or our other reportable segments;
4)
Latin America (LatAm), which includes all of our beverage, food and snack businesses in Latin America;
5)
Europe Sub-Saharan Africa (ESSA), which includes all of our beverage, food and snack businesses in Europe and Sub-Saharan Africa; and
6)
Asia, Middle East and North Africa (AMENA), which includes all of our beverage, food and snack businesses in Asia, the Middle East and North Africa.

8

Table of Contents    


Net revenue and operating profit of each division are as follows:
 
12 Weeks Ended
Net Revenue(a)
3/23/2019

 
3/24/2018

FLNA
$
3,815

 
$
3,617

QFNA
594

 
601

PBNA
4,510

 
4,415

LatAm
1,241

 
1,224

ESSA
1,693

 
1,668

AMENA
1,031

 
1,037

 
$
12,884

 
$
12,562


(a)
Our primary performance obligation is the distribution and sales of beverage products and food and snack products to our customers, each comprising approximately 50% of our consolidated net revenue. Internationally, our LatAm segment is predominantly a food and snack business, ESSA’s beverage business and food and snack business are each approximately 50% of the segment’s net revenue and AMENA’s beverage business and food and snack business are approximately 35% and 65%, respectively, of the segment’s net revenue. Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and ESSA segments, is approximately 40% of our consolidated net revenue. Generally, our finished goods beverage operations produce higher net revenue, but lower operating margins as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.
 
12 Weeks Ended
Operating Profit
3/23/2019

 
3/24/2018

FLNA
$
1,159

 
$
1,050

QFNA
138

 
155

PBNA
389

 
388

LatAm
230

 
189

ESSA
125

 
118

AMENA
201

 
187

Total division
$
2,242

 
$
2,087

Corporate unallocated expenses
(234
)
 
(280
)
 
$
2,008

 
$
1,807


Note 2 - Recently Issued Accounting Pronouncements
Adopted
In 2018, the Financial Accounting Standards Board (FASB) issued guidance related to the TCJ Act for the optional reclassification of the residual tax effects, arising from the change in corporate tax rate, in accumulated other comprehensive loss to retained earnings. The reclassification is the difference between the amount previously recorded in other comprehensive income at the historical U.S. federal tax rate that remains in accumulated other comprehensive loss at the time the TCJ Act was effective and the amount that would have been recorded using the newly enacted rate. This guidance became effective during the first quarter of 2019; however, we did not elect to make the optional reclassification.
In 2017, the FASB issued guidance to amend and simplify the application of hedge accounting guidance to better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, as well as eases certain hedge effectiveness assessment requirements. Under this guidance, certain of our derivatives used to hedge commodity price risk that did not previously qualify for hedge accounting treatment can now qualify prospectively. We adopted this guidance during the first quarter of 2019; the adoption did not have a material impact on our financial statements or disclosures. See Note 9 for further information.

9

Table of Contents    


In 2016, the FASB issued guidance on leases, with amendments issued in 2018. The guidance requires lessees to recognize most leases on the balance sheet but does not change the manner in which expenses are recorded in the income statement. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The two permitted transition methods under the guidance are the modified retrospective transition approach, which requires application of the guidance for all comparative periods presented, and the cumulative effect adjustment approach, which requires prospective application at the adoption date.
We utilized a comprehensive approach to assess the impact of this guidance on our financial statements and related disclosures, including the increase in the assets and liabilities on our balance sheet and the impact on our current lease portfolio from both a lessor and lessee perspective. We completed our comprehensive review of our lease portfolio including significant leases by geography and by asset type that were impacted by the new guidance, and enhanced our controls. In addition, we implemented a new software platform, and corresponding controls, for administering our leases and facilitating compliance with the new guidance.
We adopted the guidance prospectively during the first quarter of 2019. As part of our adoption, we elected not to reassess historical lease classification, recognize short-term leases on our balance sheet, nor separate lease and non-lease components for our real estate leases. In addition, we utilized the portfolio approach to group leases with similar characteristics and did not use hindsight to determine lease term. The adoption did not have a material impact on our financial statements, resulted in an increase of 2% to each of our total assets and total liabilities on our balance sheet, and had an immaterial increase to retained earnings as of the beginning of 2019. See Note 14 for further information.
Note 3 - Restructuring and Impairment Charges
2019 Multi-Year Productivity Plan
We publicly announced a multi-year productivity plan on February 15, 2019 (2019 Productivity Plan) that will leverage new technology and business models to further simplify, harmonize and automate processes; re-engineer our go-to-market and information systems, including deploying the right automation for each market; simplify our organization and optimize our manufacturing and supply chain footprint.
A summary of our 2019 Productivity Plan charges is as follows:
 
12 Weeks Ended

 
3/23/2019

Cost of sales
$
8

Selling, general and administrative expenses
23

Other pension and retiree medical benefits income
(5
)
Total restructuring and impairment charges
$
26

After-tax amount
$
23

Net income attributable to PepsiCo per common share
$
0.02


10

Table of Contents    


 
12 Weeks Ended

 
 
 
3/23/2019

 
Plan to Date
FLNA
$

 
$
31

QFNA

 
5

PBNA
6

 
46

LatAm

 
9

ESSA
6

 
14

AMENA
11

 
14

Corporate
8

 
15

 
31

 
134

Other pension and retiree medical benefits (income)/expense (a)
(5
)
 
30

 
$
26

 
$
164

(a)
Income amount represents adjustments for changes in estimates of previously recorded amounts.
 
Severance and Other Employee Costs
 
Asset
Impairments
 
Other Costs(a)
 
Total
Plan to date
$
134

 
$
8

 
$
22

 
$
164

(a)
Includes other costs associated with the implementation of our initiatives, including contract termination costs, consulting and other professional fees.
A summary of our 2019 Productivity Plan activity for the 12 weeks ended March 23, 2019 is as follows:
 
Severance and Other Employee Costs
 
Asset
Impairments
 
Other Costs
 
Total
Liability as of December 29, 2018
$
105

 
$

 
$
1

 
$
106

2019 restructuring charges (a)
(3
)
 
8

 
21

 
26

Cash payments (b)
(7
)
 

 
(3
)
 
(10
)
Non-cash charges and translation
6

 
(8
)
 
3

 
1

Liability as of March 23, 2019
$
101

 
$

 
$
22

 
$
123

(a)
Income amount represents adjustments for changes in estimates of previously recorded amounts.
(b)
Excludes cash expenditures of $2 million reported in the cash flow statement in pension and retiree medical contributions.
Substantially all of the restructuring accrual at March 23, 2019 is expected to be paid by the end of 2019.
2014 Multi-Year Productivity Plan
We publicly announced a multi-year productivity plan on February 13, 2014 (2014 Productivity Plan) that includes the next generation of productivity initiatives that we believe will strengthen our beverage, food and snack businesses by: accelerating our investment in manufacturing automation; further optimizing our global manufacturing footprint, including closing certain manufacturing facilities; re-engineering our go-to-market systems in developed markets; expanding shared services; and implementing simplified organization structures to drive efficiency. To build on the 2014 Productivity Plan, in the fourth quarter of 2017, we expanded and extended the program through the end of 2019 to take advantage of additional opportunities within the initiatives described above to further strengthen our beverage, food and snack businesses.
We have substantially completed our 2014 Productivity Plan and do not expect to incur material charges in 2019 associated with this program. We expect pre-tax charges and cash expenditures for the program to approximate the total program estimates of $1.3 billion and $960 million, respectively.
For the 12 weeks ended March 23, 2019, there were no material charges related to this program and cash payments were $42 million. Substantially all of the restructuring accrual of approximately $70 million at March 23, 2019 is expected to be paid by the end of 2019.

11

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For further information, refer to Note 3 to our consolidated financial statements in our 2018 Form 10-K.
A summary of our 2014 Productivity Plan charges is as follows:
 
12 Weeks Ended
 
3/24/2018

Selling, general and administrative expenses
$
8

Other pension and retiree medical benefits expense
4

Total restructuring and impairment charges
$
12

After-tax amount
$
11

Net income attributable to PepsiCo per common share
$
0.01

 
12 Weeks Ended
 
3/24/2018

FLNA
$
5

QFNA
1

PBNA
3

LatAm
9

ESSA
4

AMENA
2

Corporate (a)
(12
)
 
$
12

(a)
Income amount represents adjustments for changes in estimates of previously recorded amounts.
Other Productivity Initiatives
There were no material charges related to other productivity and efficiency initiatives outside the scope of the 2019 and 2014 Productivity Plans.
We regularly evaluate different productivity initiatives beyond the productivity plans and other initiatives described above.
Note 4 - Intangible Assets
A summary of our amortizable intangible assets is as follows:
 
 
3/23/2019
 
12/29/2018
 
 
Gross
 
Accumulated Amortization
 
Net
 
Gross
 
Accumulated Amortization
 
Net
Acquired franchise rights
 
$
842

 
$
(145
)
 
$
697

 
$
838

 
$
(140
)
 
$
698

Reacquired franchise rights
 
106

 
(105
)
 
1

 
106

 
(105
)
 
1

Brands
 
1,313

 
(1,042
)
 
271

 
1,306

 
(1,032
)
 
274

Other identifiable intangibles
 
969

 
(297
)
 
672

 
959

 
(288
)
 
671

 
 
$
3,230

 
$
(1,589
)
 
$
1,641

 
$
3,209

 
$
(1,565
)
 
$
1,644



12

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The change in the book value of indefinite-lived intangible assets is as follows:
 
Balance
12/29/2018
 
Translation
and Other
 
Balance
3/23/2019

 
 
FLNA

 

 

Goodwill
$
297

 
$
(1
)
 
$
296

Brands
161

 

 
161


458

 
(1
)
 
457

QFNA
 
 
 
 
 
Goodwill
184

 

 
184

Brands
25

 

 
25

 
209

 

 
209

PBNA
 
 
 
 
 
Goodwill
9,813

 
8

 
9,821

Reacquired franchise rights
7,058

 
14

 
7,072

Acquired franchise rights
1,510

 
3

 
1,513

Brands
353

 

 
353


18,734

 
25

 
18,759

LatAm
 
 
 
 
 
Goodwill
509

 
14

 
523

Brands
127

 
4

 
131


636

 
18

 
654

ESSA (a)
 
 
 
 
 
Goodwill
3,611

 
111

 
3,722

Reacquired franchise rights
497

 
4

 
501

Acquired franchise rights
161

 
(1
)
 
160

Brands
4,188

 
128

 
4,316


8,457

 
242

 
8,699

AMENA
 
 
 
 
 
Goodwill
394

 
5

 
399

Brands
101

 
1

 
102


495

 
6

 
501

 
 
 
 
 
 
Total goodwill
14,808

 
137

 
14,945

Total reacquired franchise rights
7,555

 
18

 
7,573

Total acquired franchise rights
1,671

 
2

 
1,673

Total brands
4,955

 
133

 
5,088


$
28,989

 
$
290

 
$
29,279


(a)
The change primarily reflects appreciation of the Russian ruble.
Note 5 - Income Taxes
Tax Cuts and Jobs Act
During the fourth quarter of 2017, the TCJ Act was enacted in the United States. Among its many provisions, the TCJ Act imposed a mandatory one-time transition tax on undistributed international earnings and reduced the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018.
The U.S. Securities and Exchange Commission previously issued guidance related to the TCJ Act which allowed recording of provisional tax expense using a measurement period, not to exceed one year, when

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information necessary to complete the accounting for the effects of the TCJ Act was not available. We elected to apply the measurement period provisions of this guidance to certain income tax effects of the TCJ Act when it became effective in the fourth quarter of 2017. The provisional measurement period ended in the fourth quarter of 2018. As a result, we recognized a net tax benefit of $28 million ($0.02 per share) for the fiscal year ended December 29, 2018, which included a provisional transition tax expense of $1 million (nominal amount per share) recorded in the first quarter of 2018.
While our accounting for the recorded impact of the TCJ Act as of December 29, 2018 was deemed to be complete, this amount was based on prevailing regulations and available information as of December 29, 2018, and additional guidance issued by the Internal Revenue Service (IRS) impacted, and may continue to impact, our recorded amounts after December 29, 2018.
For the 12 weeks ended March 23, 2019, we recognized tax benefits totaling $29 million ($0.02 per share) in connection with the TCJ Act, including the impact of additional guidance issued by the IRS in the first quarter of 2019.
For further information and discussion of the impact of the TCJ Act, refer to Note 5 to our consolidated financial statements in our 2018 Form 10-K.
Note 6 - Share-Based Compensation
The following table summarizes our total share-based compensation expense:
 
12 Weeks Ended
 
3/23/2019

 
3/24/2018

Share-based compensation expense - equity awards
$
57

 
$
80

Share-based compensation expense - liability awards
1

 
6

Restructuring and impairment charges

 
3

Total
$
58

 
$
89


The following table summarizes share-based awards granted under the terms of the PepsiCo, Inc. Long-Term Incentive Plan:
 
12 Weeks Ended
 
3/23/2019
 
3/24/2018
 
Granted(a)
 
Weighted-Average Grant Price
 
Granted(a)
 
Weighted-Average Grant Price
Stock options
1.1

 
$
116.00

 
1.2

 
$
108.75

RSUs and PSUs
2.7