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RESTRUCTURING | 12 Months Ended
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Dec. 28, 2024
Restructuring and Related Activities [Abstract] |
Restructuring and Related Activities | RESTRUCTURING The Company views its restructuring programs as part of its operating principles to provide greater visibility in achieving its long-term profit growth and margin targets. Initiatives undertaken are generally expected to recover cash implementation costs within a 1 to 5-year period subsequent to completion. Completion (or as each major stage is completed in the case of multi-year programs) is when the project begins to deliver cash savings and/or reduced depreciation. In the first quarter of 2024, the Company announced a reconfiguration of the North America frozen supply chain network, designed to drive increased productivity. The project is substantially complete as of the end of 2024. The overall project is expected to result in cumulative pretax charges of approximately $70 million, which include employee-related costs of $10 million, other cash costs of $10 million, and non-cash costs, primarily consisting of asset impairment, accelerated depreciation, and asset disposals of $50 million. Charges incurred related to this restructuring program were $65 million during the year ended December 28, 2024. These charges primarily related to severance costs and asset impairment and were recorded in COGS. In the first quarter of 2024, the Company proposed a reconfiguration of the European cereal supply chain network and completed collective bargaining obligations and consultation with impacted employees during the quarter ended June 29, 2024. The project, designed to drive efficiencies, is expected to be substantially completed by late 2026, with resulting efficiencies expected to begin contributing to gross margin improvements in late 2026. The overall project is expected to result in cumulative pretax charges of approximately $120 million, which include employee-related costs of $50 million, other cash costs of $30 million, and non-cash costs, primarily consisting of asset impairment, accelerated depreciation, and asset disposals of $40 million. Charges incurred related to this restructuring program were $78 million during the year ended December 28, 2024. These charges primarily related to severance costs and asset impairment and were recorded in COGS. Restructuring costs for fiscal years 2023 and 2022 were immaterial. The tables below provide the details for charges incurred during the year ended December 28, 2024.
|  |  | Year-to-date period ended |  | Program costs to date
(millions) |  |  |  | December 28, 2024 |  |  | December 28, 2024
Employee related costs |  |  |  | $ | 45 |  |  |  | $ | 45 |
Asset related costs |  |  |  | 23 |  |  |  | 23 |
Asset impairment |  |  |  | 60 |  |  |  | 60 |
Other costs |  |  |  | 15 |  |  |  | 15 |
Total |  |  |  | $ | 143 |  |  |  | $ | 143 |
|  |  | Year-to-date period ended |  | Program costs to date
(millions) |  |  |  | December 28, 2024 |  |  | December 28, 2024
North America |  |  |  | $ | 65 |  |  |  | $ | 65 |
Europe |  |  |  | 78 |  |  |  | 78 |
Total |  |  |  | $ | 143 |  |  |  | $ | 143 |
All other restructuring projects were immaterial within the periods presented. At December 28, 2024, total project reserves for the European reorganizations were $37 million. The reserves are related to severance payments and other costs of which a substantial portion was not paid during the current year. The following table provides details for exit cost reserves related to the European and North American reorganizations described above.
| Employee Related Costs |  | Asset Impairment | Asset Related Costs | Other Costs | Total
Liability as of December 30, 2023 | $ | — |  |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
2024 restructuring charges | 45 |  |  | 60 |  | 23 |  | 15 |  | 143 |
Cash payments | (7) |  |  |  |  | (15) |  | (22) |
Non-cash charges and other | (1) |  |  | (60) |  | (23) |  | — |  | (84) |
Liability as of December 28, 2024 | $ | 37 |  |  | $ | — |  | $ | — |  | $ | — |  | $ | 37 |

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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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