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Restructuring and Cost Reduction Activities | 3 Months Ended
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Mar. 28, 2020
Restructuring and Related Activities [Abstract] |
Restructuring and Cost Reduction Activities | Restructuring Programs The Company views its restructuring programs as part of its operating principles to provide greater visibility in achieving its long-term profit growth targets. Initiatives undertaken are currently expected to recover cash implementation costs within a 3 to 5-year period of completion. Upon completion (or as each major stage is completed in the case of multi-year programs), the project begins to deliver cash savings and/or reduced depreciation. During the second quarter of 2019, the Company announced a reorganization plan for the European reportable segment designed to simplify the organization, increase organizational efficiency, and enhance key processes. The overall project is expected to be substantially completed by the end of fiscal year 2020. The project is expected to result in cumulative pretax net charges of approximately $40 million, including certain non-cash credits. Cash costs are expected to be approximately $50 million. The total expected charges will include severance and other termination benefits and charges related to relocation, third party legal and consulting fees, and contract termination costs. During the quarter ended March 28, 2020, the Company recorded total charges of $1 million related to this initiative. These charges were recorded in SG&A expense. Since inception, the Company has recognized total charges, including non-cash credits, of $39 million attributed to this initiative. Additionally during the second quarter of 2019, the Company announced a reorganization plan which primarily impacted the North America reportable segment. The reorganization plan was designed to simplify the organization that supports the remaining North America reportable segment after the divestiture and related transition. The overall project is expected to be substantially completed by the end of fiscal year 2020. The overall project is expected to result in cumulative pretax charges of approximately $30 million. Cash costs are expected to approximate the pretax charges. Total expected charges will include severance and other termination benefits and charges related to third party consulting fees. The charges related to this initiative were not material during the quarter ended March 28, 2020. These charges were recorded in SG&A expense. Since inception, the Company has recognized total charges of $21 million attributed to this initiative. Project K As of the end of 2019, the Company completed implementation of all Project K initiatives. Total project charges, after-tax cash costs and annual savings delivered by Project K were in line with expectations. During the quarter ended March 30, 2019, the Company recorded total charges of $8 million related to Project K The tables below provide the details for charges incurred during the quarters ended March 28, 2020 and March 30, 2019 and program costs to date for all programs currently active as of March 28, 2020.
| Quarter ended |  | Program costs to date
(millions) | March 28, 2020 | March 30, 2019 |  | March 28, 2020
Employee related costs | $ | — |  | $ | (3 | ) |  | $ | 50 |
Pension curtailment (gain) loss, net | — |  | — |  |  | (5 | )
Asset related costs | — |  | 3 |  |  | — |
Other costs | 1 |  | 8 |  |  | 15 |
Total | $ | 1 |  | $ | 8 |  |  | $ | 60 |
| Quarter ended |  | Program costs to date
(millions) | March 28, 2020 | March 30, 2019 |  | March 28, 2020
North America | $ | (1 | ) | $ | 4 |  |  | $ | 20 |
Europe | 1 |  | 1 |  |  | 39 |
Latin America | — |  | 2 |  |  | — |
AMEA | — |  | 1 |  |  | — |
Corporate | 1 |  | — |  |  | 1 |
Total | $ | 1 |  | $ | 8 |  |  | $ | 60 |
During the quarter ended March 28, 2020, the Company recorded total net charges of $1 million across all restructuring programs. These charges were in SG&A expense. During the quarter ended March 30, 2019, the Company recorded total net charges of $8 million across all restructuring programs. The charges were comprised of $6 million recorded in COGS and $2 million recorded in SG&A expense. Employee related costs consist primarily of severance and related benefits. Pension curtailment (gain) loss consists of curtailment gains or losses that resulted from project initiatives. Asset related costs consist primarily of accelerated depreciation and asset write-offs. Other costs consist of third-party incremental costs related to the development and implementation of enhanced global structures and capabilities. At March 28, 2020 total project reserves were $22 million, related to severance payments and other costs of which a substantial portion will be paid in 2020. The following table provides details for exit cost reserves related to the European and North American reorganizations described above.
| Employee Related Costs | Pension curtailment (gain) loss, net | Other Costs | Total
Liability as of December 28, 2019 | $ | 37 |  | $ | — |  | $ | 1 |  | $ | 38 |
2020 restructuring charges | — |  | — |  | 1 |  | 1 |
Cash payments | (15 | ) | — |  | (2 | ) | (17 | )
Non-cash charges and other | — |  | — |  | — |  | — |
Liability as of March 28, 2020 | $ | 22 |  | $ | — |  | $ | — |  | $ | 22 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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