BUSINESS REALIGNMENT ACTIVITIES

3 Months Ended

Mar. 29, 2026

Restructuring and Related Activities [Abstract]

We periodically undertake business realignment activities designed to increase our efficiency and focus our business in support of our key growth strategies.

Advancing Agility & Automation Initiative

On February 2, 2024, the Board of Directors of the Company approved a multi-year productivity initiative (“Advancing Agility & Automation Initiative” or "AAA Initiative") to improve supply chain and manufacturing-related spend, optimize selling, general and administrative expenses, leverage new technology and business models to further simplify and automate processes, and generate long-term savings.

The Company estimates that the AAA Initiative will result in total pre-tax costs of $200,000 to $250,000 from inception through 2026. This estimate primarily includes program office execution and third-party costs supporting the design and implementation of the new organizational structure of $100,000 to $120,000, as well as implementation and technology capability costs of $55,000 to $70,000. Additionally, we expect to incur employee severance and related separation benefits of $45,000 to $60,000 as we facilitate workforce reductions and reallocate resources to further drive the Company’s strategic priorities. The cash portion of the total cost is estimated to be $175,000 to $225,000. At the conclusion of the program in 2026, ongoing annual savings are expected to be approximately $400,000.

Since inception through March 29, 2026, we recognized total costs associated with the AAA Initiative of $190,295. These charges predominantly included employee severance and related separation benefits related to workforce reductions and third-party costs supporting the design and implementation of the new organizational structure, as well as technology capability costs. The costs and related benefits of the AAA Initiative predominantly relates to the North America Confectionery segment and Corporate. However, segment operating results do not include these business realignment expenses because we evaluate segment performance excluding such costs.

Costs associated with business realignment activities are classified in our Consolidated Statements of Income as follows:


	Three Months Ended
		March 29, 2026		March 30, 2025

Selling, marketing and administrative expense		7,360		9,480
Business realignment costs		5,998		16,374
Costs associated with business realignment activities		$	13,358	$	25,854

Costs recorded by program during the three months ended March 29, 2026 and March 30, 2025 related to these activities were as follows:


	Three Months Ended
		March 29, 2026		March 30, 2025
Advancing Agility & Automation Initiative:
Severance and employee benefit costs		$	5,998	$	16,374
Other program costs		7,360		9,480
Total		$	13,358	$	25,854

The following table presents the liability activity for costs qualifying as exit and disposal costs for the three months ended March 29, 2026:


	Total
Liability balance at December 31, 2025 (1)	$	8,590
2026 business realignment charges (2)	5,998
Cash payments	(1,894)
Liability balance at March 29, 2026 (1)	$	12,694

(1)The liability balances reflected above are reported within accrued liabilities and other long-term liabilities.

(2)The costs reflected in the liability roll-forward represent employee-related charges.