On January 27, 2022, the Board approved a targeted productivity program (the “2022 Global Productivity Initiative”). All initiatives have been implemented and the program concluded on December 31, 2024. The 2022 Global Productivity Initiative resulted in the reallocation of resources towards the Company’s strategic priorities and faster growth businesses, efficiencies in the Company’s operations and the streamlining of its supply chain to reduce structural costs.

Over the course of the 2022 Global Productivity Initiative, the Company incurred total pretax charges of $228 ($186 aftertax) in connection with the implementation of various projects as follows:


	Total Program Charges
	as of December 31, 2024
Employee-Related Costs	$	175
Incremental Depreciation	13
Asset Impairments	1
Other	39
Total	$	228

Total pretax charges resulting from the 2022 Global Productivity Initiative were comprised of the following categories: employee-related costs, including severance, pension and other termination benefits (80%); asset-related costs, primarily accelerated depreciation and asset write-downs (5%); and other charges (15%), which include contract termination costs, consisting primarily of implementation-related charges resulting directly from exit activities and the implementation of new strategies. Over the course of the 2022 Global Productivity Initiative, approximately 80% of the charges resulted in cash expenditures.

For the twelve months ended December 31, 2024 and December 31, 2023, charges resulting from the 2022 Global Productivity Initiative are reflected in the income statement as follows:


	Twelve Months Ended December 31,
	2024		2023
Gross Profit	$	20	$	1
Selling, general and administrative expenses	6		2
Other (income) expense, net	59		24
Non-service related postretirement costs	—		5
Total 2022 Global Productivity Initiative charges, pretax	$	85	$	32

Total 2022 Global Productivity Initiative charges, aftertax	$	73	$	25

Restructuring and related implementation charges are recorded in the Corporate segment as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance.

Total charges incurred for the 2022 Global Productivity Initiative relate to initiatives undertaken by the following reportable operating segments:


	Twelve Months Ended December 31,				Total Program Charges
	2024		2023
North America(1)	3	%	15	%	9	%
Latin America	—	%	—	%	9	%
Europe(1)	89	%	19	%	44	%
Asia Pacific	—	%	20	%	7	%
Africa/Eurasia	—	%	5	%	6	%
Hill's Pet Nutrition	6	%	23	%	11	%
Corporate	2	%	18	%	14	%
Total	100	%	100	%	100	%

(1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024. See Note 13, Segment Information for additional details.

The following table summarizes the activity for the restructuring and related implementation charges discussed above and the related accruals:


	Twelve Months Ended December 31,
	Employee-Related Costs		Incremental Depreciation		Asset Impairments		Other		Total
Balance at December 31, 2022	$	30	$	—	$	1	$	3	$	34
Charges	24		—		—		8		32
Cash Payments	(45)		—		—		(10)		(55)
Charges against assets	(5)		—		(1)		—		(6)
Foreign exchange	6		—		—		—		6
Balance at December 31, 2023	$	10	$	—	$	—	$	1	$	11
Charges	49		13		—		23		85
Cash Payments	(20)		—		—		(14)		(34)
Charges against assets	—		(13)		—		—		(13)
Foreign exchange	(5)		—		—		—		(5)
Balance at December 31, 2024	$	34	$	—	$	—	$	10	$	44

Employee-Related Costs primarily include severance and other termination benefits and are calculated based on long-standing benefit practices, written severance policies, local statutory requirements and, in certain cases, voluntary termination arrangements. Employee-Related Costs also include pension enhancements which are reflected as Charges against assets within Employee-Related Costs in the preceding table, as the corresponding balance sheet amounts are reflected as a reduction of pension assets or an increase in pension liabilities.

Incremental Depreciation is recorded to reflect changes in useful lives and estimated residual values for long-lived assets that will be taken out of service prior to the end of their normal service period. Asset Impairments are recorded to write down inventories and assets held for sale or disposal to their fair value based on amounts expected to be realized. Charges against assets within Asset Impairments are net of cash proceeds pertaining to the sale of certain assets, as applicable.