XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.24.2

Restructuring and Related Implementation Charges | 6 Months Ended
--- | ---
Jun. 30, 2024
Restructuring and Related Activities [Abstract] |
Restructuring and Related Implementation Charges | Restructuring and Related Implementation Charges On January 27, 2022, the Company’s Board of Directors (the “Board”) approved a targeted productivity program (the “2022 Global Productivity Initiative”). Substantially all initiatives under the program have been implemented as of the second quarter of 2024 and the Company expects to incur the remaining charges in the second half of 2024. The 2022 Global Productivity Initiative resulted in the reallocation of resources towards the Company’s strategic priorities and faster growth businesses, efficiencies in the Company’s operations and the streamlining of its supply chain to reduce structural costs. Total pretax charges from the implementation of the 2022 Global Productivity Initiative are now expected to be approximately $225 ($180 aftertax), once all the charges are recorded, which is now estimated to be comprised of the following categories: employee-related costs, including severance, pension and other termination benefits (80%); asset-related costs, primarily accelerated depreciation and asset write-downs (5%); and other charges (15%), which include contract termination costs, consisting primarily of implementation-related charges resulting directly from exit activities and the implementation of new strategies. It is now estimated that approximately 80% of the charges will result in cash expenditures. It is now expected that the cumulative pretax charges, once all charges are recorded, will relate to initiatives undertaken in North America (10%), Latin America (10%), Europe (45%), Asia Pacific (5%), Africa/Eurasia (5%), Hill’s Pet Nutrition (10%) and Corporate (15%). For the three months ended June 30, 2024, charges resulting from the 2022 Global Productivity Initiative were $27 pretax ($23 aftertax). For the three months ended June 30, 2023, charges resulting from the 2022 Global Productivity Initiative were $21 pretax ($16 aftertax). For the six months ended June 30, 2024 and June 30, 2023, charges resulting from the 2022 Global Productivity Initiative are reflected in the income statement as follows:
| Six Months Ended June 30,
| 2024 |  | 2023
Gross Profit | $ | 9 |  |  | $ | — |
Selling, general and administrative expenses | 3 |  |  | 2 |
Other (income) expense, net | 51 |  |  | 21 |
Non-service related postretirement costs | — |  |  | 4 |
Total 2022 Global Productivity Initiative charges, pretax | $ | 63 |  |  | $ | 27 |
Total 2022 Global Productivity Initiative charges, aftertax | $ | 53 |  |  | $ | 21 |
Restructuring and related implementation charges were recorded in the Corporate segment as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance. Total charges incurred for the 2022 Global Productivity Initiative relate to initiatives undertaken by the following reportable operating segments and Corporate:
| Six Months Ended June 30, |  | Program-to-date Accumulated Charges
| 2024 |  | 2023 |  |
North America | — | % |  | 14 | % |  | 8 | %
Latin America | — | % |  | 2 | % |  | 9 | %
Europe | 90 | % |  | 26 | % |  | 41 | %
Asia Pacific | — | % |  | 22 | % |  | 8 | %
Africa/Eurasia | 1 | % |  | 2 | % |  | 7 | %
Hill's Pet Nutrition | 8 | % |  | 15 | % |  | 12 | %
Corporate | 1 | % |  | 19 | % |  | 15 | %
Total | 100 | % |  | 100 | % |  | 100 | %
Since the inception of the 2022 Global Productivity Initiative, the Company has incurred cumulative pretax charges of $205 ($165 aftertax) in connection with the implementation of various projects as follows:
| Cumulative Charges
| as of June 30, 2024
Employee-Related Costs | $ | 175 |
Incremental Depreciation | 7 |
Asset Impairments | 1 |
Other | 22 |
Total | $ | 205 |
The following table summarizes the activity for the restructuring and related implementation charges discussed above and the related accruals:
|  | Six Months Ended June 30, 2024
|  | Employee-Related Costs |  | Incremental Depreciation |  | Asset Impairments |  | Other |  | Total
Balance at December 31, 2023 |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 11 |
Charges |  | 49 |  |  | 7 |  |  | — |  |  | 7 |  |  | 63 |
Cash Payments |  | (10) |  |  | — |  |  | — |  |  | (5) |  |  | (15) |
Charges against assets |  | — |  |  | (7) |  |  | — |  |  | — |  |  | (7) |
Foreign exchange |  | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |
Balance at June 30, 2024 |  | $ | 48 |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |  |  | $ | 51 |
Employee-Related Costs primarily include severance and other termination benefits and are calculated based on long-standing benefit practices, written severance policies, local statutory requirements and, in certain cases, voluntary termination arrangements. Employee-Related Costs also include pension enhancements which are reflected as Charges against assets within Employee-Related Costs in the preceding table as the corresponding balance sheet amounts are reflected as a reduction of pension assets or an increase in pension liabilities. For the six months ended June 30, 2024, there were no pension enhancements included in Charges against assets within Employee-Related Costs. Incremental Depreciation is recorded to reflect changes in useful lives and estimated residual values for long-lived assets that will be taken out of service prior to the end of their normal service period. Asset Impairments are recorded to write down inventories and assets held for sale or disposal to their fair value based on amounts expected to be realized. Charges against assets within Asset Impairments are net of cash proceeds pertaining to the sale of certain assets.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration