XML 42 R15.htm IDEA: XBRL DOCUMENT
v3.22.4

Restructuring and Related Charges | 3 Months Ended
--- | ---
Dec. 31, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Related Charges | RESTRUCTURING AND RELATED CHARGES 2022 Program In the fourth quarter of fiscal 2022, the Company approved a restructuring program (the “2022 Program”), which is expected 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 plans to bring together all its corporate team members from the Chicago, Downers Grove and Dakota Dunes area corporate locations to its world headquarters in Springdale, Arkansas, through a phased relocation commencing in early calendar year 2023. We anticipate the 2022 Program and associated expenses will be substantially 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 | $ | 23 |  | $ | 8 |  | $ | 7 |  | $ | 51 |  | $ | 12 |  | $ | 101 |  |
Relocation and related costs | 35 |  | 15 |  | 1 |  | 57 |  | 1 |  | 109 |  |
Accelerated depreciation | 6 |  | 2 |  | — |  | 12 |  | — |  | 20 |  |
Contract and lease terminations | — |  | — |  | — |  | 31 |  | — |  | 31 |  |
Professional and other fees | 4 |  | 1 |  | — |  | 7 |  | 1 |  | 13 |  |
Total 2022 Program | $ | 68 |  | $ | 26 |  | $ | 8 |  | $ | 158 |  | $ | 14 |  | $ | 274 |  |
Restructuring costs include severance expenses, and related charges include costs 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 $56 million and $218 million of the total pretax anticipated expense will be recorded in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Condensed Statements of Income. Included in the table above are $256 million of charges that have resulted or will result in cash outflows and $18 million in non-cash charges. The following table reflects the pretax impact of the 2022 Program’s restructuring and related charges during the first quarter of fiscal 2023 by reportable segment (in millions):
| Beef | Pork | Chicken | Prepared Foods | International/Other | Total |
Severance costs | $ | 2 |  | $ | 1 |  | $ | — |  | $ | 4 |  | $ | 5 |  | $ | 12 |  |
Relocation and related costs | 1 |  | 1 |  | 1 |  | 1 |  | — |  | 4 |  |
Accelerated depreciation | 2 |  | — |  | — |  | 4 |  | — |  | 6 |  |
Contract and lease terminations | — |  | — |  | — |  | (2) |  | — |  | (2) |  |
Professional and other fees | — |  | — |  | — |  | 1 |  | — |  | 1 |  |
Total | $ | 5 |  | $ | 2 |  | $ | 1 |  | $ | 8 |  | $ | 5 |  | $ | 21 |  |
For the first quarter of fiscal 2023, we recorded restructuring and related charges associated with the 2022 Program of $8 million and $13 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Condensed Statements of Income. Included in the above results are $17 million of charges that have resulted or will result in cash outflows and $4 million in 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 | $ | 18 |  | $ | 6 |  | $ | 6 |  | $ | 40 |  | $ | 8 |  | $ | 78 |  |
Relocation and related costs | 1 |  | 1 |  | 1 |  | 1 |  | — |  | 4 |  |
Accelerated depreciation | 2 |  | — |  | — |  | 4 |  | — |  | 6 |  |
Contract and lease terminations | — |  | — |  | — |  | (2) |  | — |  | (2) |  |
Professional and other fees | — |  | — |  | — |  | 1 |  | — |  | 1 |  |
Total | $ | 21 |  | $ | 7 |  | $ | 7 |  | $ | 44 |  | $ | 8 |  | $ | 87 |  |
As of the first quarter of fiscal 2023, we recorded restructuring and related charges to date associated with the 2022 Program of $26 million and $61 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Condensed Statements of Income. Included in the above results are $83 million of charges to date that have resulted or will result in cash outflows and $4 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 Condensed Balance sheet as of December 31, 2022 (in millions):
| Balance at October 1, 2022 | Restructuring Expense | Payments | Changes in Estimates | Balance at December 31, 2022 |
Severance costs | $ | 66 |  | $ | 12 |  | $ | 5 |  | $ | — |  | $ | 73 |  |
Relocation and related costs | — |  | 4 |  | 2 |  | — |  | 2 |  |
Professional and other fees | — |  | 1 |  | 1 |  | — |  | — |  |
Total | $ | 66 |  | $ | 17 |  | $ | 8 |  | $ | — |  | $ | 75 |  |
As the Company continues to evaluate its business strategies and long-term growth targets, additional restructuring activities may occur.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI https://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration