XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.4
Restructuring, Impairment, And Other Exit Costs
 6 Months Ended
Nov. 27, 2022
Restructuring, Impairment, And Other Exit Costs [Abstract]  
Restructuring, Impairment, And Other Exit Costs
(3) Restructuring, Impairment, and Other Exit Costs
In the six-month period
 
ended November 27, 2022,
 
we did not undertake
 
any new restructuring
 
actions. We
 
recorded $
11.6
 
million of
restructuring
 
charges
 
in
 
the
 
second
 
quarter
 
of
 
fiscal
 
2023
 
and
 
$
13.9
 
million
 
of
 
restructuring
 
charges
 
in
 
the
 
six-month
 
period
 
ended
November 27,
 
2022, related
 
to restructuring
 
actions previously
 
announced.
 
We
 
recorded $
2.7
 
million of
 
restructuring charges
 
in the
second
 
quarter of
 
fiscal 2022
 
and
 
a $
1.4
 
million net
 
recovery of
 
restructuring
 
charges
 
in the
 
six-month
 
period
 
ended November
 
28,
2021, related to restructuring actions previously announced. We
 
expect these actions to be completed by the end of
fiscal 2024
.
In
 
the
 
second
 
quarter
 
of
 
fiscal
 
2023,
 
we
 
increased
 
the
 
estimate
 
of
 
restructuring
 
charges
 
that
 
we
 
expect
 
to
 
incur
 
related
 
to
 
our
previously announced
 
actions in the
 
International segment
 
to drive efficiencies
 
in manufacturing
 
and logistics operations.
 
As a result,
we recorded
 
a $
4.5
 
million increase
 
to our
 
restructuring reserve
 
primarily related
 
to estimated
 
severance charges.
 
We
 
expect to
 
incur
approximately
 
$
25
 
million
 
of
 
restructuring
 
charges
 
and
 
project-related
 
costs
 
related
 
to
 
these
 
actions,
 
of
 
which
 
approximately
 
$
16
million will be
 
cash. These charges
 
are expected
 
to consist of
 
approximately $
12
 
million of severance
 
and $
10
 
million of other
 
costs,
primarily
 
asset write-offs.
 
We
 
also
 
expect
 
to
 
incur
 
approximately
 
$
3
 
million
 
of project-related
 
costs.
 
We
 
expect
 
these actions
 
to be
completed by the end of
fiscal 2024
.
In
 
the
 
second
 
quarter
 
of
 
fiscal
 
2023,
 
we
 
increased
 
the
 
estimate
 
of
 
restructuring
 
charges
 
that
 
we
 
expect
 
to
 
incur
 
related
 
to
 
our
previously
 
announced
 
global
 
organizational
 
structure
 
and
 
resource
 
realignment
 
actions.
 
As
 
a
 
result,
 
we
 
recorded
 
a
 
$
4.1
 
million
increase to our
 
restructuring reserve primarily
 
related to estimated
 
severance charges.
 
We
 
expect to incur
 
approximately $
140
 
million
of
 
restructuring
 
charges
 
related
 
to
 
these
 
actions,
 
of
 
which
 
approximately
 
$
115
 
million
 
will
 
be
 
cash.
 
These
 
charges
 
are
 
expected
 
to
consist
 
of
 
approximately
 
$
105
 
million
 
of
 
severance
 
and
 
approximately
 
$
35
 
million
 
of
 
other
 
costs.
 
We
 
expect
 
these
 
actions
 
to
 
be
completed by the end of
fiscal 2023
.
 
We
 
paid
 
net
 
$
27.6
 
million
 
of
 
cash
 
in
 
the
 
six-month
 
period
 
ended
 
November
 
27,
 
2022,
 
related
 
to
 
restructuring
 
actions
 
previously
announced. We
 
paid net $
42.8
 
million of cash in the same period of fiscal 2022.
The roll forward of our restructuring and other exit cost reserves, included
 
in other current liabilities, is as follows:
In Millions
Total
Reserve balance as of May 29, 2022
$
36.8
Fiscal 2023 charges, including foreign currency translation
7.5
Utilized in fiscal 2023
(24.1)
Reserve balance as of Nov. 27, 2022
$
20.2
The reserve balance primarily consists of expected severance payments
 
associated with restructuring actions.
 
The charges
 
recognized in
 
the roll forward
 
of our reserves
 
for restructuring
 
and other exit
 
costs do not
 
include items
 
charged directly
to expense
 
(e.g., asset
 
impairment charges,
 
accelerated depreciation,
 
the gain
 
or loss
 
on the
 
sale of
 
restructured assets,
 
and the
 
write-
off
 
of
 
spare parts)
 
and other
 
periodic
 
exit costs
 
are
 
recognized
 
as incurred,
 
as those
 
items are
 
not reflected
 
in our
 
restructuring
 
and
other exit cost reserves on our Consolidated Balance Sheets.