On July 31, 2024, the Board of Directors of the Company approved a reorganization plan in connection with the Company's strategic priority to modernize its supply chain. Under this reorganization plan, herein referred to as the restructuring plan, the Company will consolidate its manufacturing network by closing its Omaha, Nebraska plant, with a phased reduction in production beginning in late 2025 and full closure targeted by the end of 2026, and scaling back production (which includes a reduction in the number of manufacturing platforms) at its Memphis, Tennessee facility, commencing in late 2025. The restructuring plan was communicated to impacted employees on August 6, 2024 and remains subject to the satisfaction of certain collective bargaining obligations. The actions under the restructuring plan are expected to be completed by the end of fiscal year 2026.

These actions are expected to result in cumulative restructuring pretax charges of between $230 million and $270 million, including between $30 million and $40 million in cash costs for severance and other termination benefits and between $30 million and $40 million in other cash restructuring costs related to equipment dismantlement and other transition costs. The Company estimates between $170 million and $190 million in non-cash charges related primarily to accelerated depreciation and asset write-offs. These charges are expected to be incurred through 2027. The amounts expected to be incurred as a result of these actions, including the timing thereof, are estimates only and subject to a number of assumptions. Actual results may differ materially from the Company's current expectations. The Company may also incur additional charges or other cash expenditures not currently contemplated due to unanticipated events that may occur as a result of, or associated with, these actions.

For the year-to-date period ended December 28, 2024, the Company recorded total restructuring charges of $56 million. These charges comprised of $53 million recorded to Restructuring Costs and $3 million to Other income (expense). There were no restructuring charges recorded for the periods ended December 30, 2023 and December 31, 2022.

The table below provides the details for the charges incurred during the years-ended December 28, 2024, December 30, 2023 and December 31, 2022, and project costs to date for all projects currently active as of December 28, 2024:


							Project costs to date
(millions)	2024		2023		2022		December 28, 2024
Employee related costs	$	20	$	—	$	—	$	20
Pension curtailment (gain) loss, net	3		—		—		3
Asset related costs	31		—		—		31
Other costs	2		—		—		2
Total	$	56	$	—	$	—	$	56

Employee related costs consist of severance and other termination benefits. Pension curtailment (gain) loss consists of a curtailment loss that resulted from restructuring plan initiatives. Asset related costs consisted primarily of accelerated depreciation of $21 million and asset write-offs and impairments of $10 million. Other costs incurred consist primarily of legal and consulting fees.

At December 28, 2024 total project reserves were $21 million, related to severance payments and other costs, of which a substantial portion will be paid in 2026. Employee related cost accruals are recorded to other current liabilities and other liabilities within the Consolidated Balance Sheet. Other cost accruals are recorded to accounts payable and other current liabilities within the Consolidated Balance Sheet. The following table provides details for exit cost reserves:


(millions)	Employee Related Costs		Pension curtailment (gain) loss, net		Asset Related Costs		Other Costs		Total
Liability as of December 30, 2023	$	—	$	—	$	—	$	—	$	—
2024 restructuring charge	20		3		31		2		56
Cash payments	—		—		—		(1)		(1)
Non-cash charges and other	—		(3)		(31)		—		(34)
Liability as of December 28, 2024	$	20	$	—	$	—	$	1	$	21