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Restructuring Expenses and Operating Model Optimization Initiatives | 6 Months Ended
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Jun. 28, 2026
Restructuring and Related Activities [Abstract] |
Restructuring Expenses and Operating Model Optimization Initiatives | Restructuring Expenses and Operating Model Optimization Initiatives 2024 Multi-Year Restructuring Initiative 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 (the “Board”) 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 included global workforce reductions, changes in management structure, and the transition to centralized shared-service functions in lower-cost locations. As of the end of fiscal year 2025, the Company completed all actions under the 2024 Multi-Year Restructuring Initiative, and no additional costs will be incurred. The 2024 Multi-Year Restructuring Initiative resulted in pre-tax restructuring expenses and other charges totaling $556 million through the fiscal twelve months ended December 28, 2025. The Company will continue to make cash payments for restructuring expenses and other charges already incurred, with the majority of these payments anticipated to occur by the end of fiscal year 2026. These payments have been, and are expected to continue to be, funded primarily through cash flows generated from operations. 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 six months ended June 29, 2025:
|  |  | Fiscal Three Months Ended |  |  | Fiscal Six Months Ended
(Dollars in Millions) |  |  |  | June 29, 2025 |  |  |  | June 29, 2025 |  |
Restructuring expenses |  |  |  | $ | 60 |  |  |  |  | $ | 120 |  |  |
Cost of sales |  |  |  | 6 |  |  |  |  | 12 |  |  |
Selling, general, and administrative expenses |  |  |  | 2 |  |  |  |  | 3 |  |  |
Total pre-tax restructuring expenses and other charges |  |  |  | $ | 68 |  |  |  |  | $ | 135 |  |  |
2026 Restructuring Initiative On February 17, 2026, the Company’s Board approved an initiative (the “2026 Restructuring Initiative”) that aims to optimize its operating model, transform its supply chain, reduce complexity, and drive operational efficiencies, while strengthening core capabilities. The initiative is expected to result in pre-tax restructuring expenses and other charges totaling approximately $250 million in fiscal year 2026, consisting of information technology and project-related costs (approximately 59%), employee-related costs (approximately 35%), and other implementation costs (approximately 6%). These charges are expected to be funded primarily through cash flows generated from operations. The following table summarizes the classification of pre-tax restructuring expenses and other charges incurred related to the 2026 Restructuring Initiative during the fiscal three and six months ended June 28, 2026:
|  | Fiscal Three Months Ended |  | Fiscal Six Months Ended
(Dollars in Millions) |  | June 28, 2026 |  |  |  | June 28, 2026 |  |  |  |
Restructuring expenses |  | $ | 59 |  |  |  |  | $ | 130 |  |  |  |  |
Cost of sales |  | 9 |  |  |  |  | 14 |  |  |  |  |
Selling, general, and administrative expenses |  | 1 |  |  |  |  | 3 |  |  |  |  |
Total pre-tax restructuring expenses and other charges |  | $ | 69 |  |  |  |  | $ | 147 |  |  |  |  |
The following table summarizes the pre-tax restructuring expenses and other charges incurred by cost type related to the 2026 Restructuring Initiative during the fiscal three and six months ended June 28, 2026, which also represents inception-to-date through June 28, 2026:
|  | Fiscal Three Months Ended |  | Fiscal Six Months Ended |  |
(Dollars in Millions) |  | June 28, 2026 |  |  |  | June 28, 2026 |  |  |  |  |
Employee-related costs(1) |  | $ | 29 |  |  |  |  | $ | 77 |  |  |  |  |  |  |
Information technology and project-related costs(2) |  | 40 |  |  |  |  | 70 |  |  |  |  |  |  |
Total pre-tax restructuring expenses and other charges |  | $ | 69 |  |  |  |  | $ | 147 |  |  |  |  |  |  |
(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. The following table summarizes the activity related to accrued restructuring expenses and other charges for the 2026 Restructuring Initiative during the fiscal six months ended June 28, 2026:
(Dollars in Millions) |  |  |  |  |  | Employee-Related Costs(1) |  | Information Technology and Project-Related Costs(2) |  |  |  | Total Accrued Costs
December 28, 2025 |  |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |
Charges to earnings |  |  |  |  |  | 77 |  |  | 70 |  |  |  |  | 147 |
Cash payments |  |  |  |  |  | (43) |  |  | (43) |  |  |  |  | (86) |
Non-cash charges |  |  |  |  |  | — |  |  | (2) |  |  |  |  | (2) |
June 28, 2026 |  |  |  |  |  | $ | 34 |  |  | $ | 25 |  |  |  |  | $ | 59 |
(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.

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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 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 2: 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 3: 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 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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