XML 32 R17.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

BUSINESS REALIGNMENT ACTIVITIES | 6 Months Ended
--- | ---
Jun. 30, 2024
Restructuring and Related Activities [Abstract] |
BUSINESS REALIGNMENT ACTIVITIES | BUSINESS REALIGNMENT ACTIVITIES We periodically undertake business realignment activities designed to increase our efficiency and focus our business in support of our key growth strategies. Advancing Agility & Automation Initiative On February 2, 2024, the Board of Directors of the Company (the “Board” or “Board of Directors”) approved a multi-year productivity initiative (“Advancing Agility & Automation” or "AAA") to improve supply chain and manufacturing-related spend, optimize selling, general and administrative expenses, leverage new technology and business models to further simplify and automate processes, and generate long-term savings. The Company estimates that the AAA Initiative will result in total pre-tax costs of $200,000 to $250,000 from inception through 2026. This estimate primarily includes program office execution and third-party costs supporting the design and implementation of the new organizational structure of $100,000 to $120,000, as well as implementation and technology capability costs of $55,000 to $70,000. Additionally, we expect to incur employee severance and related separation benefits of $45,000 to $60,000 as we facilitate workforce reductions and reallocate resources to further drive the Company’s strategic priorities. The cash portion of the total cost is estimated to be $175,000 to $225,000. At the conclusion of the program in 2026, ongoing annual savings are expected to be approximately $300,000. Since inception through June 30, 2024, we recognized total costs associated with the AAA Initiative of $55,666. These charges predominantly included third-party costs supporting the design and implementation of the new organizational structure, as well as technology capability costs. The costs and related benefits of the AAA Initiative relate to the North America Confectionery segment and Corporate. However, segment operating results do not include these business realignment expenses because we evaluate segment performance excluding such costs. 2020 International Optimization Program In the fourth quarter of 2020, we commenced a program (“International Optimization Program”) to streamline resources and investments in select international markets, including the optimization of our China operating model that will improve our operational efficiency and provide for a strong, sustainable and simplified base going forward. The International Optimization Program was originally expected to total pre-tax costs of $50,000 to $75,000, with cash costs in the range of $40,000 to $65,000, primarily related to workforce reductions of approximately 350 positions outside of the United States, costs to consolidate and relocate production, and third-party costs incurred to execute these activities. The costs and related benefits of the International Optimization Program relate to the International segment. However, segment operating results do not include these business realignment expenses because we evaluate segment performance excluding such costs. For the six months ended July 2, 2023, we recognized total costs associated with the International Optimization Program of $3,866. From program inception in 2020 through completion in 2023, we incurred pre-tax charges to execute the program totaling $53,799. Costs associated with business realignment activities are classified in our Consolidated Statements of Income as follows:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2024 |  | July 2, 2023 |  | June 30, 2024 |  | July 2, 2023
Cost of sales |  | $ | 8,099 |  |  | $ | (17) |  |  | $ | 10,712 |  |  | $ | 1,033 |
Selling, marketing and administrative expense |  | 25,964 |  |  | 1,904 |  |  | 40,017 |  |  | 2,392 |
Business realignment costs (benefits) |  | 4,937 |  |  | (370) |  |  | 4,937 |  |  | 441 |
Costs associated with business realignment activities |  | $ | 39,000 |  |  | $ | 1,517 |  |  | $ | 55,666 |  |  | $ | 3,866 |
Costs recorded by program during the three and six months ended June 30, 2024 and July 2, 2023 related to these activities were as follows:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2024 |  | July 2, 2023 |  | June 30, 2024 |  | July 2, 2023
Advancing Agility & Automation Initiative: |  |  |  |  |  |  |  |
Severance and employee benefit costs |  | 4,937 |  |  | — |  |  | 4,937 |  |  | — |
Other program costs |  | 34,063 |  |  | — |  |  | 50,729 |  |  | — |
International Optimization Program: |  |  |  |  |  |  |  |
Severance and employee benefit costs |  | $ | — |  |  | $ | (370) |  |  | $ | — |  |  | $ | 441 |
Other program costs |  | — |  |  | 1,887 |  |  | — |  |  | 3,425 |
Total |  | $ | 39,000 |  |  | $ | 1,517 |  |  | $ | 55,666 |  |  | $ | 3,866 |
Amounts classified as liabilities qualifying as exit and disposal costs primarily represent employee-related and certain third-party service provider charges; however, such amounts at June 30, 2024 are not significant.

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 of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
Name: | us-gaap_RestructuringImpairmentAndOtherActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration