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BUSINESS REALIGNMENT ACTIVITIES
 9 Months Ended
Sep. 28, 2025
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 approved a multi-year productivity initiative (“Advancing Agility & Automation Initiative” or "AAA Initiative") 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 $400,000.
Since inception through September 28, 2025, we recognized total costs associated with the AAA Initiative of $169,105. These charges predominantly included employee severance and related separation benefits related to workforce reductions and third-party costs supporting the design and implementation of the new organizational structure, as well as technology capability costs. The costs and related benefits of the AAA Initiative predominantly relates to the North America Confectionery segment and Corporate. However, segment operating results do not include these business realignment expenses because we evaluate segment performance excluding such costs.
Costs associated with business realignment activities are classified in our Consolidated Statements of Income as follows:
Three Months EndedNine Months Ended
September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Cost of sales$— $1,457 $— $12,168 
Selling, marketing and administrative expense8,366 20,037 32,729 60,055 
Business realignment costs2,211 27,635 18,840 32,572 
Costs associated with business realignment activities$10,577 $49,129 $51,569 $104,795 
Costs recorded by program during the nine months ended September 28, 2025 and September 29, 2024 related to these activities were as follows:
Three Months EndedNine Months Ended
September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Advancing Agility & Automation Initiative:
Severance and employee benefit costs$2,211 $27,635 $18,840 $32,572 
Other program costs8,366 21,494 32,729 72,223 
Total$10,577 $49,129 $51,569 $104,795 
The following table presents the liability activity for costs qualifying as exit and disposal costs for the nine months ended September 28, 2025:
Total
Liability balance at December 31, 2024 (1)
$10,417 
2025 business realignment charges (2)
18,840 
Cash payments(20,557)
Liability balance at September 28, 2025 (1)
$8,700 
(1)The liability balances reflected above are reported within accrued liabilities and other long-term liabilities.
(2)The costs reflected in the liability roll-forward represent employee-related charges.