On September 10, 2024, we announced plans to implement cost savings initiatives beginning in 2025, including initiatives to further optimize our supply chain and manufacturing network, optimization of our information technology infrastructure and targeted cost management. We also identified additional opportunities for cost synergies as we integrated Sovos Brands. As of July 28, 2024, we substantially completed our previous multi-year cost savings initiatives and Snyder's-Lance, Inc. cost transformation program and integration and had identified initial opportunities for cost synergies as we integrated Sovos Brands. Certain initiatives from those programs have been incorporated into our 2025 cost savings initiatives. Cost estimates for the 2025 initiatives, as well as timing for certain activities, are continuing to be developed.


	Three Months Ended				Six Months Ended
(Millions)	February 1, 2026		January 26, 2025		February 1, 2026		January 26, 2025		Recognized as of February 1, 2026
Restructuring charges	$	3	$	5	$	6	$	11	$	30
Administrative expenses	7		8		15		19		56
Cost of products sold	9		10		16		18		48
Marketing and selling expenses	2		1		2		2		6
Research and development expenses	1		1		1		2		4
Total pre-tax charges	$	22	$	25	$	40	$	52	$	144

A summary of the cumulative pre-tax costs associated with the initiatives is as follows:


(Millions)	Recognized as of February 1, 2026
Severance pay and benefits	$	29
Asset impairment/accelerated depreciation	42
Implementation costs and other related costs	73
Total	$	144

The total estimated pre-tax costs for actions that have been identified to date are approximately $245 million, and we expect to incur substantially all of the costs through 2028. These estimates will be updated as the detailed plans are developed.

We expect the costs for the actions that have been identified to date to consist of the following: approximately $35 million in severance pay and benefits; approximately $55 million in asset impairment and accelerated depreciation; and approximately $155 million in implementation costs and other related costs. We expect these pre-tax costs to be associated with our segments as follows: Meals & Beverages - approximately 56%; Snacks - approximately 23% and Corporate - approximately 21%.

Of the aggregate $245 million of pre-tax costs identified to date, we expect approximately $185 million will be cash expenditures. In addition, we expect to invest approximately $215 million in capital expenditures, of which we invested $187 million as of February 1, 2026. The capital expenditures primarily relate to optimization of production within our manufacturing network, optimization of information technology infrastructure and applications and implementation of our existing SAP enterprise-resource planning system for Sovos Brands.


(Millions)	Severance Pay and Benefits		Implementation Costs and Other Related Costs(3)	Asset Impairment/Accelerated Depreciation	Other Non-Cash Exit Costs(4)	Total Charges
Accrued balance at August 3, 2025(1)	$	33
2026 charges	5		23	11	1	$	40
2026 cash payments	(12)

Accrued balance at February 1, 2026(2)	$	26

(3)Includes other costs recognized as incurred that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. The costs are included in Administrative expenses, Cost of products sold, Marketing and selling expenses and Research and development expenses in the Consolidated Statements of Earnings.

Segment operating results do not include restructuring charges, implementation costs and other related costs because we evaluate segment performance excluding such charges. A summary of the pre-tax costs associated with segments is as follows:

In the third quarter of 2026, we commenced a voluntary early retirement program as part of our cost savings initiatives. The program is available to certain salaried employees who meet age and length-of-service criteria. We currently do not know which employees will elect to participate and therefore are unable to estimate the costs of the program, although we expect these costs to consist primarily of severance pay and benefits, including enhanced pension benefits. We will provide an estimate of the costs expected to be incurred as the program is executed.

In the second quarter of 2024, we began implementation of an initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. Pursuant to this initiative we will purchase certain Pepperidge Farm and Snyder's-Lance routes where there are opportunities to unlock greater scale in select markets, combine them and sell the combined routes to independent contractor distributors. We expect to execute this program in a staggered rollout and to incur expenses of up to approximately $115 million through 2029. In the three-month period ended February 1, 2026, we incurred $2 million in Marketing and selling expenses related to this initiative. In the six-month periods ended February 1, 2026 and January 26, 2025, we incurred $18 million and $8 million in Marketing and selling expenses related to this initiative, respectively. As of February 1, 2026, we have incurred $43 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative.