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Restructuring and Related Activities | 12 Months Ended
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Sep. 30, 2023
Restructuring and Related Activities [Abstract] |
Restructuring and Related Charges | RESTRUCTURING AND RELATED CHARGES 2022 Program The Company approved a restructuring program in fiscal 2022 (the “2022 Program”), to improve business performance, increase collaboration, enhance team member agility, enable faster decision-making and reduce redundancies. In conjunction with the 2022 Program, the Company relocated all its corporate team members from its former Chicago, Downers Grove and Dakota Dunes area corporate locations to its world headquarters in Springdale, Arkansas. In fiscal 2023, the Company approved an extension to the program to remove additional redundancies in corporate overhead. Additionally, during fiscal 2023, we revised the total 2022 Program anticipated expenses down $69 million due to revised estimates related to relocation, lease terminations, and professional and other fees, based on actual experience, which were partially offset by increased severance costs associated with the program extension. We anticipate the 2022 Program and associated expenses will be complete in our fiscal 2025. The following table reflects the total pretax anticipated expenses associated with the 2022 Program (in millions):
| Beef | Pork | Chicken | Prepared Foods | International/Other | Total |
Severance costs | $ | 24 |  | $ | 7 |  | $ | 20 |  | $ | 52 |  | $ | 19 |  | $ | 122 |  |
Relocation and related costs | 21 |  | 7 |  | 4 |  | 21 |  | 1 |  | 54 |  |
Accelerated depreciation | 5 |  | 2 |  | — |  | 12 |  | — |  | 19 |  |
Contract and lease terminations | — |  | — |  | — |  | 21 |  | — |  | 21 |  |
Professional and other fees | 2 |  | 1 |  | — |  | 3 |  | 2 |  | 8 |  |
Total 2022 Program | $ | 52 |  | $ | 17 |  | $ | 24 |  | $ | 109 |  | $ | 22 |  | $ | 224 |  |
Restructuring costs include severance expenses and related charges directly associated with the 2022 Program such as relocation, contract and lease terminations, professional fees and accelerated depreciation resulting from the closure of facilities. We anticipate that $50 million and $174 million of the total pretax anticipated expense will be recorded in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Statements of Income. Included in the table above are $202 million of charges that have resulted or will result in cash outflows and $22 million in non-cash charges. The following table reflects the pretax impact of the 2022 Program’s restructuring and related charges during fiscal 2023 by reportable segment (in millions):
| Beef | Pork | Chicken | Prepared Foods | International/Other | Total |
Severance costs | $ | 8 |  | $ | 2 |  | $ | 14 |  | $ | 16 |  | $ | 15 |  | $ | 55 |  |
Relocation and related costs | 18 |  | 6 |  | 2 |  | 16 |  | — |  | 42 |  |
Accelerated depreciation | 5 |  | 2 |  | — |  | 12 |  | — |  | 19 |  |
Contract and lease terminations | — |  | — |  | — |  | 2 |  | — |  | 2 |  |
Professional and other fees | 2 |  | 1 |  | — |  | 3 |  | — |  | 6 |  |
Total | $ | 33 |  | $ | 11 |  | $ | 16 |  | $ | 49 |  | $ | 15 |  | $ | 124 |  |
During fiscal 2023, we recorded restructuring and related charges associated with the 2022 Program of $29 million and $95 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Statements of Income. Included in the above results are $108 million of charges that have resulted or will result in cash outflows and $16 million in non-cash charges. The following table reflects the pretax impact of the 2022 Program’s restructuring and related charges during fiscal 2022 by reportable segment (in millions):
| Beef | Pork | Chicken | Prepared Foods | International/Other | Total
Severance costs | $ | 16 |  | $ | 5 |  | $ | 6 |  | $ | 36 |  | $ | 3 |  | $ | 66 |
Relocation and related costs | — |  | — |  | — |  | — |  | — |  | — |
Accelerated depreciation | — |  | — |  | — |  | — |  | — |  | — |
Contract and lease terminations | — |  | — |  | — |  | — |  | — |  | — |
Professional and other fees | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 16 |  | $ | 5 |  | $ | 6 |  | $ | 36 |  | $ | 3 |  | $ | 66 |
During fiscal 2022, we recorded restructuring and related charges associated with the 2022 Program of $18 million and $48 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Statements of Income. Included in the above results are $66 million of charges that have resulted or will result in cash outflows and no non-cash charges. The following table reflects the pretax 2022 Program charges to date by reportable segment (in millions):
| Beef | Pork | Chicken | Prepared Foods | International/Other | Total
Severance costs | $ | 24 |  | $ | 7 |  | $ | 20 |  | $ | 52 |  | $ | 18 |  | $ | 121 |
Relocation and related costs | 18 |  | 6 |  | 2 |  | 16 |  | — |  | 42 |
Accelerated depreciation | 5 |  | 2 |  | — |  | 12 |  | — |  | 19 |
Contract and lease terminations | — |  | — |  | — |  | 2 |  | — |  | 2 |
Professional and other fees | 2 |  | 1 |  | — |  | 3 |  | — |  | 6 |
Total 2022 Program charges to date | $ | 49 |  | $ | 16 |  | $ | 22 |  | $ | 85 |  | $ | 18 |  | $ | 190 |
As of the fourth quarter of fiscal 2023, we recorded restructuring and related charges to date of $47 million and $143 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Statements of Income. Included in the above results are $174 million of charges to date that have resulted or will result in cash outflows and $16 million in non-cash charges to date. The following table reflects our liability related to the 2022 Program, which was recognized in other current liabilities in our Consolidated Balance sheet as of September 30, 2023 (in millions):
| Balance at October 1, 2022 | Restructuring Expense | Payments | Changes in Estimates | Balance at September 30, 2023 |
Severance costs | $ | 66 |  | $ | 68 |  | $ | (63) |  | $ | (13) |  | $ | 58 |  |
Relocation and related costs | — |  | 42 |  | (37) |  | — |  | 5 |  |
Contract and lease termination | — |  | 5 |  | (5) |  | — |  | — |  |
Professional and other fees | — |  | 6 |  | (4) |  | — |  | 2 |  |
Total | $ | 66 |  | $ | 121 |  | $ | (109) |  | $ | (13) |  | $ | 65 |  |
As the Company continues to evaluate its business strategies and long-term growth targets, additional restructuring activities may occur.

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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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