v3.26.1
Restructuring charges, separation costs and impairment charges (Tables)
 6 Months Ended
Jun. 30, 2026
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Reserve by Type of Cost
Restructuring charges recognized for the three and six months ended June 30, 2026 and June 29, 2025 consisted of the following:
Three Months Ended June 30, 2026
Termination Benefits
Other Costs (1)
Total
Strategic Divestitures restructuring plan$219 $— $219 
VI Business integration plan4 (1)3 
Other restructuring programs (2)
— 24 24 
Restructuring charges$223 $23 $246 
Three Months Ended June 29, 2025
Termination Benefits
Other Costs (1)
Total
2024 Footprint realignment plan$1,066 $54 $1,120 
2023 Footprint realignment plan87 — 87 
Other restructuring programs (2)
35 11 46 
Restructuring charges1,188 65 1,253 
Asset impairment charges (3)
— 8,117 8,117 
Separation costs (4)
— 1,330 1,330 
Restructuring charges, separation costs and impairment charges$1,188 $9,512 $10,700 
Six Months Ended June 30, 2026
Termination Benefits
Other Costs (1)
Total
Strategic Divestitures restructuring plan$17,288 $— $17,288 
VI Business integration plan(252)2 (250)
Other restructuring programs (2)
(26)79 53 
Restructuring charges$17,010 $81 $17,091 
Six Months Ended June 29, 2025
Termination Benefits
Other Costs (1)
Total
2024 Footprint realignment plan$2,131 $92 $2,223 
2023 Footprint realignment plan330 2 332 
Other restructuring programs (2)
82 38 120 
Restructuring charges2,543 132 2,675 
Asset impairment charges (3)
— 8,117 8,117 
Separation costs (4)
— 1,330 1,330 
Restructuring charges, separation costs and other impairment charges$2,543 $9,579 $12,122 
(1) Other costs include facility closure, contract termination and other exit costs.
(2) Primarily includes activity related to restructuring plans substantially completed in prior periods.
(3) For the three and six months ended June 29, 2025, we recognized impairment charges primarily related to our cessation of occupancy at certain leased facilities.
(4) Represents indirect expenses related to the Strategic Divestitures, including activities to prepare the businesses for divestiture and maintain continuity through the separation process.
Schedule of Restructuring and Other Impairment Charges The following table provides a summary of our estimates of restructuring and restructuring related charges by major type of expense associated with the Strategic Divestitures restructuring plan:
Strategic Divestitures restructuring plan
Plan expense estimates:(Dollars in millions)
Restructuring charges (1)
$15 million to $18 million
Restructuring related charges (2)
$16 million to $19 million
Total restructuring and restructuring related charges
$31 million to $37 million
(1)Substantially all of the charges consist of employee termination benefit costs.
(2)Restructuring related charges represent costs that are directly related to the plan and primarily include expenses related to a lease termination and retention incentives necessary to support critical functions during the transition period. Most of the charges are expected to be recognized within selling, general and administrative costs.
The following table provides a summary of our estimates of restructuring and restructuring related charges by major type of expense associated with the VI Business integration plan:
VI Business integration plan
Plan expense estimates:(Dollars in millions)
Restructuring charges (1)
$26 million to $31 million
Restructuring related charges (2)
$10 million to $13 million
Total restructuring and restructuring related charges
$36 million to $44 million
(1)Substantially all of the charges consist of employee termination benefit costs.
(2)Restructuring related charges represent costs that are directly related to the program and principally constitute costs to transfer manufacturing operations to existing lower-cost locations and project management costs. The majority of these charges are expected to be recognized within cost of goods sold.
The following table provides a summary of the cost estimates by major type of expense associated with the 2023 Footprint realignment plan:
2023 Footprint realignment plan
Plan expense estimates:(Dollars in millions)
Restructuring charges (1)
$2 million to $3 million
Restructuring related charges (2)
$7 million to $9 million
Total restructuring and restructuring related charges
$9 million to $12 million
(1)Substantially all of the charges consist of employee termination benefit costs.
(2)Restructuring related charges represent costs that are directly related to the program and principally constitute costs to transfer manufacturing operations to existing lower-cost locations and project management costs. Substantially all of these charges are expected to be recognized within cost of goods sold.