XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.26.1

Restructuring and Related Implementation Charges | 3 Months Ended
--- | ---
Mar. 31, 2026
Restructuring and Related Activities [Abstract] |
Restructuring and Related Implementation Charges | Restructuring and Related Implementation Charges Strategic Growth and Productivity Program On July 31, 2025, the Company’s Board of Directors (the “Board”) approved a three-year productivity program to drive future growth and support the Company’s 2030 strategy (the “Strategic Growth and Productivity Program”). The program includes initiatives to better align the Company’s organizational structure to support its strategic initiatives, optimize the Company’s global supply chain to drive agility and efficiencies and simplify and streamline its organizational structure to reduce overhead costs. Building on the successful implementation of the Strategic Growth and Productivity Program to date, on April 30, 2026, the Company's Board approved an expansion of the program to continue to align the Company's operations to drive future growth and support the Company’s 2030 strategy. The Strategic Growth and Productivity Program is now estimated to result in cumulative pre-tax charges, once all initiatives are approved and implemented, totaling between $350 and $550, increased from $200 to $300. These pre-tax charges are currently estimated to be comprised of the following: employee-related costs, including severance and other termination benefits (70% to 80%) and asset-related costs and other charges (20% to 30%), which include accelerated depreciation, asset write-downs, contract termination and other exit costs. It is estimated that approximately 80% to 90% of the charges will result in cash expenditures and substantially all charges resulting from the program will be incurred by December 31, 2028. It is now estimated that the cumulative pre-tax charges, once all projects are approved and implemented, will relate to initiatives undertaken in North America (5% to 10%), Latin America (15% to 20%), Europe, Middle East & Africa (“EMEA”) (25% to 30%), Asia Pacific (10% to 15%), Hill’s Pet Nutrition (10% to 15%) and Corporate (20% to 25%). For the three months ended March 31, 2026, charges resulting from the Strategic Growth and Productivity Program are reflected in the income statement as follows:
|  | Three Months Ended March 31, 2026
Selling, general and administrative expenses | $ | 6 |
Other (income) expense, net | 165 |
Non-service related postretirement costs |  | 5 |
Total Strategic Growth and Productivity Program charges, pre-tax | $ | 176 |
Total Strategic Growth and Productivity Program charges, after-tax | $ | 138 |
Restructuring and related implementation charges are 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 Strategic Growth and Productivity Program relate to initiatives undertaken by the following reportable operating segments and Corporate:
|  | Three Months Ended March 31, 2026 |  | Program-to-date Accumulated Charges
North America |  | 14 | % |  | 14 | %
Latin America |  | — | % |  | — | %
Europe, Middle East & Africa |  | 28 | % |  | 28 | %
Asia Pacific |  | 2 | % |  | 2 | %
Hill’s Pet Nutrition |  | 20 | % |  | 19 | %
Corporate |  | 36 | % |  | 37 | %
Total |  | 100 | % |  | 100 | %
Since the inception of the Strategic Growth and Productivity Program, the Company has incurred cumulative pre-tax charges of $189 ($149 after-tax) in connection with the implementation of various projects as follows:
| Cumulative Charges as of March 31, 2026
Employee-Related Costs | $ | 171 |
Asset-Related Costs and Other | 18 |
Total | $ | 189 |
The following table summarizes the activity for the restructuring accrual:
|  | Three Months Ended March 31, 2026
|  | Employee-Related Costs |  |  |  |  |  | Asset-Related Costs and Other |  |  |  | Total
Balance at December 31, 2025 |  | $ | 6 |  |  |  |  |  |  | $ | 4 |  |  |  |  | $ | 10 |
Charges |  | 165 |  |  |  |  |  |  | 11 |  |  |  |  | 176 |
Cash payments |  | (2) |  |  |  |  |  |  | (5) |  |  |  |  | (7) |
Charges against assets and liabilities |  | (5) |  |  |  |  |  |  | (1) |  |  |  |  | (6) |
Foreign exchange |  | (9) |  |  |  |  |  |  | — |  |  |  |  | (9) |
Balance at March 31, 2026 |  | $ | 155 |  |  |  |  |  |  | $ | 9 |  |  |  |  | $ | 164 |
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 postretirement benefit enhancements of $5 for the three months ended March 31, 2026, which are reflected as Charges against assets and liabilities within Employee-Related Costs in the preceding table as the corresponding balance sheet amounts are reflected as an increase in postretirement liabilities.

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