Restructuring and Related Charges

12 Months Ended

Oct. 02, 2021

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND RELATED CHARGES

In the first quarter of fiscal 2020, the Company approved a restructuring program (the “2020 Program”), which is expected to contribute to the Company’s overall strategy of financial fitness through the elimination of overhead and consolidation of certain enterprise functions. We recognized $60 million of cumulative pretax charges in fiscal 2020 associated with the 2020 Program consisting of severance and employee related costs.

In the fourth quarter of fiscal 2017, our Board of Directors approved a multi-year restructuring program (the “2017 Program”), which contributed to the Company’s overall strategy of financial fitness through increased operational effectiveness and overhead reduction. The 2017 Program resulted in cumulative pretax charges of $267 million which consisted of $117 million incremental costs to implement new technology and accelerated depreciation of technology assets, $53 million severance and employee related costs, $72 million technology impairment, and $25 million for contract termination costs. The 2017 Program concluded in fiscal 2020.

We recognized no restructuring and related charges in fiscal 2021. During fiscal 2020 we recognized restructuring and related charges of $77 million, consisting of $60 million of severance and team member related costs from the 2020 Program and $17 million of incremental costs to implement new technology from the 2017 Program. For fiscal 2020, we recorded $17 million in Cost of Sales from the 2020 Program, and we recorded $60 million in Selling, General and Administrative in our Consolidated Statements of Income, of which $43 million was related to the 2020 Program and $17 million was related to the 2017 Program.

For fiscal 2019 the restructuring and related charges related to the 2017 Program consisted of $41 million of incremental costs to implement new technology and accelerated depreciation of technology assets. These costs were recorded in Selling, General and Administrative in our Consolidated Statements of Income.

The following table reflects the pretax impact of restructuring and related charges during fiscal 2021, 2020 and 2019 and the charges to date, by reportable segment (in millions):



	2021		2020		2019		Total charges to date
Beef	$	—	$	9	$	1	$	22
Pork	—		3		1		8
Chicken	—		34		21		141
Prepared Foods	—		28		18		152
International/Other	—		3		—		4
Total restructuring and related charges, pretax	$	—	$	77	$	41	$	327

As the Company continues to evaluate its business strategies and long-term growth targets, additional restructuring activities may occur. Our restructuring liability was $5 million at October 2, 2021 and $37 million at October 3, 2020. The change in the restructuring liability was primarily due to payments of $32 million during fiscal 2021.