RESTRUCTURING AND RELATED CHARGES

9 Months Ended

Dec. 31, 2025

Restructuring and Related Activities [Abstract]


NOTE 11. RESTRUCTURING AND RELATED CHARGES

During Fiscal 2025, the Company's Board of Directors approved a restructuring plan (the "2025 restructuring plan") designed to strengthen and support the Company's financial and operational efficiencies. On November 13, 2025, the Company's Board of Directors approved a $95 million increase to the 2025 restructuring plan to include the separation of the Curry Brand as well as additional contract terminations, asset impairments, and employee severance and benefits costs, resulting in an updated plan of up to $255 million of pre-tax restructuring and related charges. The 2025 restructuring plan consists of up to $107 million in cash-related charges, including approximately $30 million in employee severance and benefits costs and $77 million related to various transformational initiatives; and up to $148 million in non-cash charges, including approximately $7 million in employee severance and benefits costs and $141 million in facility, software, and other asset-related charges and impairments. The 2025 restructuring plan is expected to be substantially complete by the end of Fiscal 2026.

Restructuring and related charges are excluded from the Company's segment profitability measures. The Company reports restructuring and related charges within Corporate Other, which is designed to provide increased transparency and comparability of operating segments' performance. The net charges recorded during the three and nine months ended December 31, 2025 and 2024 respectively, were primarily related to the North America operating segment.

The following table summarizes the costs recorded during the periods indicated, as well as the current estimate of remaining charges expected to be incurred in connection with the 2025 restructuring plan:


	Three Months Ended December 31,				Nine Months Ended December 31,				Estimated Charges Remaining to be Incurred(1)
	2025		2024		2025		2024
Costs recorded in restructuring charges:
Employee-related costs	$	(143)	$	1,584	$	8,485	$	13,322
Facility-related costs(2)	2,359		5,706		30,617		18,201
Other restructuring costs(3)	72,764		6,655		80,612		10,720
Total costs recorded in restructuring charges	$	74,980	$	13,945	$	119,714	$	42,243	$	17,317
Costs recorded in selling, general and administrative expenses:
Employee-related costs	$	—	$	—	$	719	$	9,460
Other transformation initiatives	2,714		3,819		14,699		5,740
Total costs recorded in selling, general and administrative expenses	$	2,714	$	3,819	$	15,418	$	15,200	$	13,389
Total restructuring and related charges	$	77,694	$	17,764	$	135,132	$	57,443	$	30,706

(1) Estimated restructuring and related charges reflect the high-end of the total estimated charges expected to be incurred by the Company in connection with the 2025 restructuring plan.

(2) Facility-related costs for the nine months ended December 31, 2025 includes an impairment charge of $15.9 million relating to the previously disclosed decision to exit the Company's distribution facility in Rialto, California.

(3) Other restructuring costs for the three and nine months ended December 31, 2025, respectively, includes $69.7 million of non-cash contract termination costs, primarily relating to the separation of the Curry Brand.

Restructuring and related charges and recoveries require the Company to make certain judgments and estimates regarding the amount and timing as to when these charges or recoveries occur. The estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. The restructuring reserve is recorded within current liabilities on the Condensed Consolidated Balance Sheets. On a quarterly basis, the Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate, as new or updated information becomes available.

A summary of the activity in the restructuring reserve related to the Company's 2025 restructuring plan for the nine months ended December 31, 2025 is as follows:


	Employee-Related Costs		Facility-Related Costs		Other Restructuring Related Costs		Total
Balance as of March 31, 2025	$	3,935	$	712	$	10,698	$	15,345
Net additions (recoveries) charged to expense (1)	8,485		3,276		10,933		22,694
Cash payments	(11,326)		(2,702)		(20,391)		(34,419)
Foreign exchange and other	(3)		(1)		(5)		(9)
Balance as of December 31, 2025	$	1,091	$	1,285	$	1,235	$	3,611

(1) Amounts exclude $27.3 million of non-cash facility-related charges and $69.7 million of non-cash other restructuring-related charges recorded during the nine months ended December 31, 2025.