v3.25.2
BUSINESS REALIGNMENT ACTIVITIES
 6 Months Ended
Jun. 29, 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 $350,000 to $400,000.
Since inception through June 29, 2025, we recognized total costs associated with the AAA Initiative of $158,528. These charges predominantly included employee severance and related separation benefits related to workforce reductions and third-party costs supporting the design and implementation of the new organizational structure, as well as technology capability costs. The costs and related benefits of the AAA Initiative predominantly relates to the North America Confectionery segment and Corporate. However, segment operating results do not include these business realignment expenses because we evaluate segment performance excluding such costs.
Costs associated with business realignment activities are classified in our Consolidated Statements of Income as follows:
Three Months EndedSix Months Ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Cost of sales$— $8,099 $— $10,712 
Selling, marketing and administrative expense14,884 25,964 24,363 40,017 
Business realignment costs255 4,937 16,629 4,937 
Costs associated with business realignment activities$15,139 $39,000 $40,992 $55,666 
Costs recorded by program during the six months ended June 29, 2025 and June 30, 2024 related to these activities were as follows:
Three Months EndedSix Months Ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Advancing Agility & Automation Initiative:
Severance and employee benefit costs$255 $4,937 $16,629 $4,937 
Other program costs14,884 34,063 24,363 50,729 
Total$15,139 $39,000 $40,992 $55,666 
The following table presents the liability activity for costs qualifying as exit and disposal costs for the six months ended June 29, 2025:
Total
Liability balance at December 31, 2024 (1)
$10,417 
2025 business realignment charges (2)
16,629 
Cash payments(9,683)
Liability balance at June 29, 2025 (1)
$17,363 
(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.