The Company views its restructuring programs as part of its operating principles to provide greater visibility in achieving its long-term profit growth targets. Initiatives undertaken are currently expected to recover cash implementation costs within a 3 to 5-year period subsequent to completion. Completion (or as each major stage is completed in the case of multi-year programs), is when the project begins to deliver cash savings and/or reduced depreciation.

During 2021, the Company announced a reconfiguration of the North America reportable segment supply chain network, designed to drive increased productivity. The project is expected to be substantially completed by early 2024, with related productivity improvements commencing in 2023. The overall project is expected to result in cumulative pretax charges of approximately $45 million, which include employee-related costs of $4 million, other cash costs of $21 million and non-cash costs, primarily consisting of accelerated depreciation and asset write-off's, of $20 million. Charges incurred related to this restructuring program were approximately $5 million during 2021. These charges primarily related to severance costs, and were recorded in COGS.

During 2019, the Company announced a reorganization plan for its European reportable segment designed to simplify the organization, increase organizational efficiency, and enhance key processes. The project was substantially completed as of the end of fiscal year 2020. Total charges and cash costs were in line with expectations. The Company recorded total net charges of $(1) million in 2020, with $7 million recorded in SGA expense and ($8) million recorded in OIE. The Company recorded total net charges of $38 million in 2019, with $43 million recorded in SGA expense and ($5) million recorded in OIE. The project resulted in cumulative pretax net charges of approximately $37 million, including certain non-cash credits. Total cash costs were approximately $50 million. The total charges include severance and other termination benefits and charges related to relocation, pension curtailment gains, third party legal and consulting fees, and contract termination costs.

Also during 2019, the Company announced a reorganization plan which primarily impacted the North America reportable segment, designed to simplify the organization that supports the remaining North America reportable segment after the divestiture and related transition. The project was substantially completed as of the end of fiscal year 2020. Total charges and cash costs were in line with expectations. The Company recorded total charges of $2 million and $21 million related to this initiative during 2020 and 2019, respectively. These charges were recorded in SGA expense. The project has resulted in cumulative pretax charges of approximately $23 million. Total charges include severance and other termination benefits and charges related to third party consulting fees.

In addition to the projects discussed above, during 2021 and 2020 the Company incurred restructuring costs in each of its reportable segments related to various reorganization and simplification initiatives and supply chain optimization projects. The Company recorded total charges of $22 million related to these initiatives during 2021, including $13 million in COGS and $9 million in SGA expense. The Company recorded total charges of $28 million related to these initiatives during 2020, including $6 million in COGS and $22 million in SGA expense. These costs primarily relate to severance and other termination benefits.

As of the end of 2019, the Company completed implementation of all Project K initiatives. Total project charges, after-tax cash costs and annual savings delivered by Project K were in line with expectations.

The total program resulted in pre-tax charges, of approximately $1.6 billion, with after-tax cash costs, including incremental capital expenditures, of approximately $1.2 billion. Total project charges consist of asset-related costs of approximately $500 million which consists primarily of asset impairments, accelerated depreciation and other exit-related costs; employee-related costs of approximately $400 million which includes severance, pension and other termination benefits; and other costs of approximately $700 million which consists primarily of charges related to the design and implementation of global business capabilities and a more efficient go-to-market model.

Total pre-tax charges related to Project K impacted reportable segments as follows: North America (approximately 65%), Europe (approximately 21%), Latin America (approximately 4%), AMEA (approximately 6%), and Corporate (approximately 4%).

The Company recognized charges of $1,574 million attributed to the Project K, with the charges comprised of $6 million recorded as a reduction of revenue, $928 million recorded in COGS, $807 million recorded in SGA expense and $(167) million recorded in OIE.


							Program costs to date
(millions)	2021		2020		2019		January 1, 2022
Employee related costs	$	10	$	29	$	49	$	23
Pension curtailment (gain) loss, net	—		(8)		(5)		—
Asset related costs	10		2		21		12

Other costs	7		6		48		1
Total	$	27	$	29	$	113	$	36

							Program costs to date
(millions)	2021		2020		2019		January 1, 2022
North America	$	19	$	8	$	50	$	17
Europe	(1)		3		47		5
Latin America	4		5		15		9
AMEA	—		12		3		—
Corporate	5		1		(2)		5
Total	$	27	$	29	$	113	$	36

During 2021, the Company recorded total charges of $27 million across all restructuring programs. The charges were comprised of $18 million recorded in COGS and $9 million recorded in SGA expense.

During 2020, the Company recorded total charges of $29 million across all restructuring programs. The charges were comprised of $6 million recorded in COGS, $31 million recorded in SGA expense and $(8) million recorded in OIE.

During 2019, the Company recorded total charges of $113 million across all restructuring programs. The charges were comprised of $35 million expense being recorded in COGS, a $83 million expense recorded in SGA expense, and $(5) million recorded in OIE.

Employee related costs consisted of severance and pension charges. Pension curtailment (gain) loss consists of curtailment gains or losses that resulted from project initiatives. Asset related costs consist primarily of accelerated depreciation. Other costs incurred consist primarily of lease termination costs as well as third-party incremental costs related to the development and implementation of global business capabilities and a more efficient go-to-market model.

At January 1, 2022 total project reserves were $23 million, related to severance payments and other costs of which a substantial portion will be paid in 2022. The following table provides details for exit cost reserves.


(millions)	Employee Related Costs		Curtailment Gain Loss, net		Asset Related Costs		Other Costs		Total
Liability as of December 28, 2019	$	37	$	—	$	—	$	1	$	38
2020 restructuring charges	29		(8)		2		6		29
Cash payments	(38)		—		—		(7)		(45)
Non-cash charges and other	—		8		(2)		—		6
Liability as of January 2, 2021	$	28	$	—	$	—	$	—	$	28
2021 restructuring charges	10		—		10		7		27
Cash payments	(15)		—		(4)		(7)		(26)
Non-cash charges and other	—		—		(6)		—		(6)
Liability as of January 1, 2022	$	23	$	—	$	—	$	—	$	23