Restructuring

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Accelerating the Organization

In January 2023, the Company announced an evolution of its successful Accelerating the Arches strategy. Enhancements to the strategy included the addition of Restaurant Development to the Company’s growth pillars and an internal effort to modernize ways of working, Accelerating the Organization, both of which are aimed at elevating the Company’s performance. Accelerating the Organization is designed to unlock further growth as the Company focuses on becoming faster, more innovative and more efficient for its customers and people.

The Company incurred $146 million of restructuring charges related to Accelerating the Organization in the nine months ended September 30, 2024. These charges were recorded in the Other operating (income) expense, net line within the consolidated statement of income, and primarily recorded within the Corporate segment. For the period presented, restructuring charges primarily consisted of professional services costs. There were no significant non-cash impairment charges included in the amounts listed in the table below.

The following table summarizes the balance of accrued expenses related to this strategic initiative (in millions):


	Employee Termination Benefits		Costs to Terminate Contracts		Professional Services and Other Costs		Total
2024
Accrued Balance at Beginning of Year	$	41	$	11	$	7	$	59
Restructuring Costs Incurred	—		—		44		44
Cash Payments	(14)		(5)		(44)		(63)
Other Non-Cash Items	—		—		(1)		(1)
Accrued Balance at March 31, 2024	$	27	$	6	$	6	$	39
Restructuring Costs Incurred	(1)		—		58		57
Cash Payments	(5)		(1)		(50)		(56)
Other Non-Cash Items	—		—		—		—
Accrued Balance at June 30, 2024	$	21	$	5	$	14	$	40
Restructuring Costs Incurred	(1)		—		47		46
Cash Payments	(3)		(1)		(41)		(45)
Other Non-Cash Items	—		—		1		1
Accrued Balance at September 30, 2024	$	17	$	4	$	21	$	42

The Company continues to evolve its ways of working by driving efficiency and effectiveness across the organization, primarily led by its Global Business Services organization. Transformation efforts under Accelerating the Organization will continue to result in various restructuring charges as the strategy progresses through its anticipated completion during 2027. The Company expects to incur approximately $250 million of restructuring charges in 2024, primarily related to professional services costs.