XML 37 R18.htm IDEA: XBRL DOCUMENT v3.22.4
BUSINESS REALIGNMENT ACTIVITIES
12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Business Realignment Activities BUSINESS REALIGNMENT ACTIVITIESWe periodically undertake business realignment activities designed to increase our efficiency and focus our business in support of our key growth strategies. Costs associated with business realignment activities are classified in our Consolidated Statements of Income as follows:
For the years ended December 31,202220212020
Cost of sales$$5,220 $2,209 
Selling, marketing and administrative expense2,425 7,854 10,801 
Business realignment costs1,989 3,525 18,503 
Costs associated with business realignment activities$4,417 $16,599 $31,513 

Costs recorded by program in 2022, 2021 and 2020 related to these activities were as follows:
For the years ended December 31,202220212020
International Optimization Program:
Severance and employee benefit costs$2,001 $3,982 $18,977 
Other program costs2,416 12,617 10,366 
Margin for Growth Program:
Severance— — (653)
Other program costs— — 2,823 
Total$4,417 $16,599 $31,513 
Amounts classified as liabilities qualifying as exit and disposal costs primarily represent employee-related and certain third-party service provider charges, however, such amounts at December 31, 2022 are not significant and are expected to be paid within the next 12 months.
2020 International Optimization Program
In the fourth quarter of 2020, we commenced a program (“International Optimization Program”) to streamline resources and investments in select international markets, including the optimization of our China operating model that will improve our operational efficiency and provide for a strong, sustainable and simplified base going forward.
The International Optimization Program is expected to be completed by the end of 2023, with total pre-tax costs anticipated to be $50,000 to $75,000. Cash costs are expected to be $40,000 to $65,000, primarily related to workforce reductions of approximately 350 positions outside of the United States, costs to consolidate and relocate production, and third-party costs incurred to execute these activities. The costs and related benefits of the International Optimization Program relate to the International segment. However, segment operating results do not include these business realignment expenses because we evaluate segment performance excluding such costs.
For the year ended December 31, 2022 and 2021, we recognized total costs associated with the International Optimization Program of $4,417 and $16,599. These charges predominantly included third-party charges in support of our initiative to transform our China operating model, as well as severance and employee benefit costs. Since inception, we have incurred pre-tax charges to execute the program totaling $50,359.
Margin for Growth Program
In the first quarter of 2017, the Company’s Board of Directors (“Board”) unanimously approved several initiatives under a single program focused on improving global efficiency and effectiveness, optimizing the Company’s supply chain, streamlining the Company’s operating model and reducing administrative expenses to generate long-term savings. 
For the year ended December 31, 2020, we recognized total costs associated with the Margin for Growth Program of $2,170. These charges included other program costs, which related primarily to third-party charges in support of our initiative to improve global efficiency and effectiveness. This project was completed in mid-2020.
The costs and related benefits of the Margin for Growth Program relate approximately 63% to the North America Confectionery segment and 37% to the International segment. However, segment operating results do not include these business realignment expenses because we evaluate segment performance excluding such costs.