RESTRUCTURING AND RELATED CHARGES

In the fourth quarter of fiscal 2017, our Board of Directors approved a multi-year restructuring program (the “Financial Fitness Program”), which is expected to contribute to the Company’s overall strategy of financial fitness through increased operational effectiveness and overhead reduction. The Company currently anticipates the Financial Fitness Program will result in cumulative pretax charges, once implemented, of approximately $215 million which consist primarily of severance and employee related costs, asset impairments, accelerated depreciation, incremental costs to implement new technology, and contract termination costs. As part of this program, we anticipate eliminating approximately 500 positions across several areas and job levels with most of the eliminated positions originating from the corporate offices in Springdale, Arkansas; Chicago, Illinois; and Cincinnati, Ohio. In the fourth quarter of fiscal 2017, the Company recognized restructuring and related charges of $150 million associated with the program.

The following table reflects the pretax impact of restructuring and related charges in the Consolidated Statements of Income:



in millions
	2017
Cost of Sales	$	35
Selling, General and Administrative expenses	115
Total restructuring and related charges, pretax	$	150

The following table reflects the pretax impact of restructuring and related charges incurred in fiscal 2017 and the estimated charges in fiscal 2018 by our reportable segments:



					in millions
	2017 charges		Estimated 2018 charges		Total estimated Financial Fitness Program charges
Beef	$	8	$	6	$	14
Pork	3		2		5
Chicken	56		32		88
Prepared Foods	82		25		107
Other	1		—		1
Total restructuring and related charges, pretax	$	150	$	65	$	215

For fiscal 2017, the restructuring and related charges consisted of $53 million severance and employee related costs, $72 million technology impairment and related costs, and $25 million for contract termination costs. The expected fiscal 2018 restructuring and related charges are expected to approximate $5 million of employee related costs, $25 million of incremental costs to implement new technology, $34 million in accelerated depreciation, and $1 million of other charges. The timing and actual amounts of these estimated charges may change.

The following table reflects our liability related to restructuring which was recognized in other current liabilities in our Consolidated Balance Sheet as of September 30, 2017:



in millions
	Restructuring charges		Payments		Other		Ending liability
Severance and employee related costs	$	51	$	4	$	—	$	47
Contract termination	22		—		—		22
Total	$	73	$	4	$	—	$	69