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 $253 million which consist primarily of severance and employee related costs, impairments and accelerated depreciation of technology assets, incremental costs to implement new technology, and contract termination costs. This program included the elimination of approximately 550 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. The Company recognized restructuring and related charges of $59 million and $150 million associated with the program during fiscal 2018 and 2017, respectively.

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



in millions
	2018		2017
Cost of Sales	$	—	$	35
Selling, General and Administrative expenses	59		115
Total restructuring and related charges, pretax	$	59	$	150

The following table reflects the pretax impact of restructuring and related charges incurred in fiscal 2017 and 2018, the estimated charges in future years (primarily in fiscal 2019) and the total estimated program charges, by our reportable segments:



							in millions
	2017 charges		2018 charges		Estimated future charges		Total estimated Financial Fitness Program charges
Beef	$	8	$	4	$	6	$	18
Pork	3		1		3		7
Chicken	56		30		16		102
Prepared Foods	82		24		19		125
Other	1		—		—		1
Total restructuring and related charges, pretax	$	150	$	59	$	44	$	253

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. For fiscal 2018, the restructuring and related charges consisted of $59 million of incremental costs to implement new technology and accelerated depreciation of technology assets. The majority of the remaining estimated charges are related to incremental costs to implement new technology.

The following table reflects our liability related to restructuring which was recognized in other current liabilities in our Consolidated Balance Sheet as of September 29, 2018:



in millions
	Liability as of September 30, 2017		Restructuring charges		Payments		Other		Liability as of September 29, 2018
Severance and employee related costs	$	47	$	—	$	37	$	—	$	10
Contract termination	22		—		21		1		—
Total	$	69	$	—	$	58	$	1	$	10