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Restructuring, Impairment, And Other Exit Costs | 6 Months Ended
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Nov. 26, 2023
Restructuring, Impairment, And Other Exit Costs [Abstract] |
Restructuring, Impairment, And Other Exit Costs | In Millions Total Reserve balance as of May 28, 2023 $ 47.7 Fiscal 2024 charges, including foreign currency translation 1.7 Utilized in fiscal 2024 (16.3) Reserve balance as of Nov. 26, 2023 $ 33.1 Quarter Ended Six-Month Period Ended In Millions Nov. 26, 2023 Nov. 27, 2022 Nov. 26, 2023 Nov. 27, 2022 Restructuring, impairment, and other exit costs $ 123.6 $ 11.1 $ 124.8 $ 12.7 Cost of sales 8.3 0.5 16.9 1.2 Total restructuring and impairment charges $ 131.9 $ 11.6 $ 141.7 $ 13.9 Project-related costs classified in cost of sales $ 0.3 $ - $ 1.1 $ - Quarter Ended Six-Month Period Ended In Millions Nov. 26, 2023 Nov. 27, 2022 Nov. 26, 2023 Nov. 27, 2022 Goodwill impairment $ 117.1 $ - $ 117.1 $ - Commercial strategy action 5.1 - 5.1 - Charges associated with restructuring actions previously announced 9.7 11.6 19.5 13.9 Total $ 131.9 $ 11.6 $ 141.7 $ 13.9 (3) Restructuring, Impairment, and Other Exit Costs Restructuring and impairment charges were as follows: In the second quarter of fiscal 2024, we recorded a $ 117.1 million non-cash goodwill impairment charge related to our Latin America reporting unit. Please see Note 4 for additional information. In the second quarter of fiscal 2024, we approved a restructuring action to enhance the go-to-market commercial strategy and associated organizational structure of our Pet segment. We expect to incur approximately $ 22 million of restructuring charges and project-related expenses related to this action, of which approximately $ 4 million will be cash. These charges are expected to consist of approximately $ 16 million of accelerated depreciation and $ 6 million of other costs, including severance. We recognized $ 2.4 million of accelerated depreciation and $ 2.7 million of other costs, including severance, in the six-month period ended November 26, 2023. We expect this action to be completed by the end of fiscal 2026. In the second quarter of fiscal 2024, 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 expect to incur an additional $ 11 million of restructuring charges, primarily related to $ 4 million of fixed asset impairments recorded in the second quarter of fiscal 2024 and $ 4 million of accelerated depreciation. We expect to incur approximately $ 36 million of restructuring charges and project-related costs, of which approximately $ 18 million will be cash. These charges are expected to consist of approximately $ 12 million of severance and $ 24 million of other costs, primarily asset write-offs. We expect these actions to be completed by the end of fiscal 2025. We recorded $ 9.7 million of restructuring charges in the second quarter of fiscal 2024 and $ 19.5 million of restructuring charges in the six-month period ended November 26, 2023, related to restructuring actions previously announced. 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 expect these actions to be completed by the end of fiscal 2025. We paid net $ 18.6 million of cash in the six-month period ended November 26, 2023, related to restructuring actions. We paid net $ 27.6 million of cash in the same period of fiscal 2023. Restructuring and impairment charges and project-related costs are recorded in our Consolidated Statements of Earnings as follows: The roll forward of our restructuring and other exit cost reserves, included in other current liabilities, is as follows: 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.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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