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Restructuring and Related Charges Restructuring and Related Charges | 3 Months Ended
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Dec. 30, 2017
Restructuring and Related Activities [Abstract] |
Restructuring and Related Charges | 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 $218 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 600 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 first quarter of fiscal 2018, the Company recognized restructuring and related charges of $19 million associated with the Financial Fitness Program. The following table reflects the pretax impact of restructuring and related charges in our Consolidated Condensed Statements of Income:
in millions |
| Three Months Ended |
| December 30, 2017 |
Cost of Sales | $ | — |
Selling, General and Administrative expenses | 19 |
Total restructuring and related charges, pretax | $ | 19 |
The following table reflects the pretax impact of restructuring and related charges incurred in the first quarter of fiscal 2018, the program charges to date and the total estimated program charges, by our reportable segments:
| in millions |
| Three Months Ended | Financial Fitness Program charges to date |
| December 30, 2017 | December 30, 2017 | Total estimated Financial Fitness Program charges |
Beef | $ | 1 |  | $ | 9 |  | $ | 13 |
Pork | 1 |  | 4 |  | 6 |
Chicken | 9 |  | 65 |  | 89 |
Prepared Foods | 8 |  | 90 |  | 109 |
Other | — |  | 1 |  | 1 |
Total restructuring and related charges, pretax | $ | 19 |  | $ | 169 |  | $ | 218 |
For the first quarter of fiscal 2018, the restructuring and related charges consisted of $3 million severance and employee related costs and $16 million technology related costs. The following table reflects our liability related to restructuring charges which were recognized in other current liabilities in our Consolidated Condensed Balance Sheets as of December 30, 2017:
in millions |
| Liability as of September 30, 2017 | Restructuring charges | Payments | Other | Liability as of December 30, 2017
Severance and employee related costs | $ | 47 |  | $ | 3 |  | $ | 12 |  | $ | — |  | $ | 38 |
Contract termination | 22 |  | — |  | 1 |  | — |  | 21 |
Total | $ | 69 |  | $ | 3 |  | $ | 13 |  | $ | — |  | $ | 59 |

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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