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Restructuring Expenses and Operating Model Optimization Initiatives | 9 Months Ended
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Sep. 28, 2025
Restructuring and Related Activities [Abstract] |
Restructuring Expenses and Operating Model Optimization Initiatives | Restructuring Expenses and Operating Model Optimization Initiatives As part of the Company’s continued transformation to a fit-for-purpose consumer company, during the fiscal year 2024, the Company began strategic initiatives intended to enhance organizational efficiencies and better position Kenvue for future growth (“Our Vue Forward”). To further Our Vue Forward, on May 6, 2024, the Company’s Board of Directors approved a multi-year initiative (the “2024 Multi-Year Restructuring Initiative”) to build on the Company’s strengths, improve underlying information technology infrastructure, and optimize its cost structure by rebalancing resources to better position the Company for future growth. The 2024 Multi-Year Restructuring Initiative primarily includes global workforce reductions, changes in management structure, and the transition to centralized shared-service functions in lower-cost locations. The 2024 Multi-Year Restructuring Initiative is expected to result in pre-tax restructuring expenses and other charges totaling approximately $550 million, consisting of information technology and project-related costs (approximately 50%), employee-related costs (approximately 40%), and other implementation costs (approximately 10%). These charges are expected to be funded primarily through cash flows generated from operations. The Company planned to incur approximately $275 million in pre-tax restructuring expenses and other charges in each of fiscal year 2024 and fiscal year 2025. The Company incurred lower than expected spend in fiscal year 2024 due to the shift in timing of certain information technology and project-related costs to fiscal year 2025. The following table summarizes the classification of pre-tax restructuring expenses and other charges incurred related to the 2024 Multi-Year Restructuring Initiative during the fiscal three and nine months ended September 28, 2025 and September 29, 2024:
|  | Fiscal Three Months Ended |  | Fiscal Nine Months Ended
(Dollars in Millions) |  | September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024 |  |
Restructuring expenses |  | $ | 84 |  |  | $ | 31 |  |  | $ | 204 |  |  | $ | 120 |  |  |
Cost of sales |  | 8 |  |  | 4 |  |  | 20 |  |  | 19 |  |  |
Selling, general, and administrative expenses |  | 5 |  |  | 3 |  |  | 8 |  |  | 7 |  |  |
Total pre-tax restructuring expenses and other charges |  | $ | 97 |  |  | $ | 38 |  |  | $ | 232 |  |  | $ | 146 |  |  |
The following table summarizes the pre-tax restructuring expenses and other charges incurred by cost type related to the 2024 Multi-Year Restructuring Initiative during the fiscal three and nine months ended September 28, 2025 and September 29, 2024 and inception-to-date through September 28, 2025:
|  | Fiscal Three Months Ended |  | Fiscal Nine Months Ended |  | Inception-To-Date Through September 28, 2025
(Dollars in Millions) |  | September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024 |  |  |
Employee-related costs(1) |  | $ | 32 |  |  | $ | 17 |  |  | $ | 78 |  |  | $ | 81 |  |  |  |  | $ | 184 |
Information technology and project-related costs(2) |  | 60 |  |  | 18 |  |  | 147 |  |  | 49 |  |  |  |  | 246 |
Other implementation costs(3) |  | 5 |  |  | 3 |  |  | 7 |  |  | 16 |  |  |  |  | 23 |
Total pre-tax restructuring expenses and other charges |  | $ | 97 |  |  | $ | 38 |  |  | $ | 232 |  |  | $ | 146 |  |  |  |  | $ | 453 |
(1) Employee-related costs primarily include severance and other termination benefits. (2) Information technology and project-related costs primarily include advisory costs to operationalize the initiative. (3) Other implementation costs primarily include costs to terminate contracts, impairments of assets, and other associated costs to exit. The following table summarizes the activity related to accrued restructuring expenses and other charges for the 2024 Multi-Year Restructuring Initiative during the fiscal nine months ended September 28, 2025:
(Dollars in Millions) |  |  |  |  |  | Employee-Related Costs(1) |  | Information Technology and Project-Related Costs(2) |  | Other Implementation Costs(3) |  | Total Accrued Costs
December 29, 2024 |  |  |  |  |  | $ | 25 |  |  | $ | 65 |  |  | $ | 3 |  |  | $ | 93 |
Charges to earnings |  |  |  |  |  | 78 |  |  | 147 |  |  | 7 |  |  | 232 |
Cash payments |  |  |  |  |  | (69) |  |  | (141) |  |  | (4) |  |  | (214) |
Non-cash charges |  |  |  |  |  | — |  |  | — |  |  | (4) |  |  | (4) |
September 28, 2025 |  |  |  |  |  | $ | 34 |  |  | $ | 71 |  |  | $ | 2 |  |  | $ | 107 |
(1) Employee-related costs primarily include severance and other termination benefits. (2) Information technology and project-related costs primarily include advisory costs to operationalize the initiative. (3) Other implementation costs primarily include costs to terminate contracts, impairments of assets, and other associated costs to exit.

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- 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
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