Restructuring and other costs

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring and other costs

Restructuring and other costs

In February 2024, we approved and initiated a global restructuring designed to better align our assets and further improve the efficiency of the business. This initiative includes an announced voluntary retirement offer in the U.S., along with a rationalization and optimization of certain distribution centers, stores and other facilities.

For the three and nine months ended September 30, 2024, we incurred $41 million and $161 million, respectively, in costs related to our global restructuring initiative. We expect to incur total costs up to $200 million related to the global restructuring efforts in 2024 and to substantially complete the initiative by the end of 2025. We may incur additional charges not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of these initiatives. The global restructuring was approved and funded by our corporate office and therefore these costs are not allocated to our segments.

For the three months ended September 30, 2024, costs of $41 million include severance and other employee costs of $11 million, and other restructuring costs of $30 million.

The table below summarizes the activity related to these costs for the nine months ended September 30, 2024.

(in thousands)	Severance and other employee costs		Other restructuring costs (1)		Total (1)
Liability as of January 1, 2024	$	—	$	—	$	—
Restructuring and other costs	77,157		76,668		153,825
Cash payments	(55,832)		(59,715)		(115,547)
Non-cash charges	3,198		(15,619)		(12,421)
Translation	501		2		503
Liability as of September 30, 2024	$	25,024	$	1,336	$	26,360

(1)     Amount reflects moving expenses, accelerated rent, professional fees, facility closure costs and asset         impairment costs that are attributable to our restructuring. Amount excludes a $7 million non-cash charge reflected in cost of goods sold for inventory liquidated rather than moved during facility consolidation in connection with the restructuring.