Restructuring Activities (Notes)

Restructuring Activities:

We have restructuring programs globally, which are focused primarily on streamlining our organizational design. For the nine months ended September 26, 2026, we eliminated approximately 240 positions related to these programs. As of September 26, 2026, we expect to eliminate approximately 240 positions during the remainder of 2026 related to these programs, primarily outside of North America. For the three months ended September 26, 2026, restructuring activities resulted in a net expense of $7 million, which included a net expense of $5 million of severance and employee benefit costs and a net expense of $2 million of asset-related costs. For the nine months ended September 26, 2026, restructuring activities resulted in a net benefit of $7 million, which included a net benefit of $44 million of other restructuring costs, a net expense of $22 million of asset-related costs, and a net expense of $15 million of severance and employee benefit costs. Other restructuring costs included a non-cash benefit related to the settlement of our U.S. Retiree Life Insurance Plan during the nine months ended September 26, 2026. Restructuring activities resulted in expenses of $4 million for the three months and $18 million for the nine months ended September 27, 2025.

Our net liability balance for restructuring project costs that qualify as exit and disposal costs under U.S. GAAP was (in millions):


	Severance and Employee Benefit Costs		Other Exit Costs		Total
Balance at December 27, 2025	$	9	$	2	$	11
Charges/(credits)	15		—		15
Cash payments	(10)		(1)		(11)

Balance at September 26, 2026	$	14	$	1	$	15

We expect the majority of the liability for severance and employee benefit costs as of September 26, 2026 to be paid by the end of 2026. The liability for other exit costs relates to lease obligations. The cash impact of these obligations will continue for the duration of the lease terms, which expire in 2030.

Total Expenses/(Income):

Total expense/(income) related to restructuring activities, by income statement caption, were (in millions):


	For the Three Months Ended				For the Nine Months Ended
	September 26, 2026		September 27, 2025		September 26, 2026		September 27, 2025
Severance and employee benefit costs - Cost of products sold	$	(1)	$	2	$	9	$	1
Severance and employee benefit costs - SG&A	6		4		6		8

Asset-related costs - Cost of products sold	2		—		22		—

Other costs - SG&A	—		—		1		1
Other costs - Other expense/(income)	—		(2)		(45)		8
	$	7	$	4	$	(7)	$	18

We do not include our restructuring activities within Segment Adjusted Operating Income (as defined in Note 16, Segment Reporting). The pre-tax impact of allocating such expenses/(income) to our segments would have been (in millions):


	For the Three Months Ended				For the Nine Months Ended
	September 26, 2026		September 27, 2025		September 26, 2026		September 27, 2025
North America	$	—	$	—	$	(46)	$	15
Europe and Pacific Developed Markets	10		4		42		1
Emerging Markets	—		(4)		—		(5)
General corporate expenses	(3)		4		(3)		7
	$	7	$	4	$	(7)	$	18