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 is bringing 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 which commenced 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	$	20	$	7	$	5	$	48	$	10	$	90
Relocation and related costs	38		15		2		61		1		117
Accelerated depreciation	6		2		—		12		—		20
Contract and lease terminations	—		—		—		31		—		31
Professional and other fees	3		—		1		7		2		13
Total 2022 Program	$	67	$	24	$	8	$	159	$	13	$	271

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 $48 million and $223 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 $241 million of charges that have resulted or will result in cash outflows and $30 million in non-cash charges.

The following table reflects the pretax impact of the 2022 Program’s restructuring and related charges during the second quarter of fiscal 2023 by reportable segment (in millions):



	Beef		Pork		Chicken		Prepared Foods		International/Other		Total
Severance costs	$	—	$	—	$	(1)	$	2	$	1	$	2
Relocation and related costs	6		1		1		5		—		13
Accelerated depreciation	1		1		—		2		—		4
Contract and lease terminations	—		—		—		—		—		—
Professional and other fees	1		—		—		2		—		3
Total	$	8	$	2	$	—	$	11	$	1	$	22

For the second quarter of fiscal 2023, we recorded restructuring and related charges of $26 million in Selling, General and Administrative and a reduction of $4 million in Cost of Sales in our Consolidated Condensed Statements of Income. Included in the above results are $18 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 impact of the 2022 Program’s restructuring and related charges during the first six months of fiscal 2023 by reportable segment (in millions):



	Beef		Pork		Chicken		Prepared Foods		International/Other		Total
Severance costs	$	2	$	1	$	(1)	$	6	$	6	$	14
Relocation and related costs	7		2		2		6		—		17
Accelerated depreciation	3		1		—		6		—		10
Contract and lease terminations	—		—		—		(2)		—		(2)
Professional and other fees	1		—		—		3		—		4
Total	$	13	$	4	$	1	$	19	$	6	$	43

For the first six months of fiscal 2023, we recorded restructuring and related charges of $4 million and $39 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Condensed Statements of Income. Included in the above results are $35 million of charges that have resulted or will result in cash outflows and $8 million in non-cash charges.



	Beef		Pork		Chicken		Prepared Foods		International/Other		Total
Severance costs	$	18	$	6	$	5	$	42	$	9	$	80
Relocation and related costs	7		2		2		6		—		17
Accelerated depreciation	3		1		—		6		—		10
Contract and lease terminations	—		—		—		(2)		—		(2)
Professional and other fees	1		—		—		3		—		4
Total	$	29	$	9	$	7	$	55	$	9	$	109

As of the second quarter of fiscal 2023, we recorded restructuring and related charges to date of $22 million and $87 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Condensed Statements of Income. Included in the above results are $101 million of charges to date that have resulted or will result in cash outflows and $8 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 April 1, 2023 (in millions):



	Balance at October 1, 2022		Restructuring Expense		Payments		Changes in Estimates		Balance at April 1, 2023
Severance costs	$	66	$	18	$	7	$	(4)	$	73
Relocation and related costs	—		17		13		—		4
Professional and other fees	—		4		1		—		3
Total	$	66	$	39	$	21	$	(4)	$	80

In the second quarter of fiscal 2023, in order to further optimize our network to reach full capacity in our facilities, management approved and communicated the planned closure of two of the Company's Chicken facilities in Glen Allen, Virginia and Van Buren, Arkansas. As a result, we recorded $92 million in closure charges, primarily related to grower contract terminations, accelerated depreciation, and severance, retention and related costs. The facilities are expected to cease operations in the third quarter of fiscal 2023. The charges are reflected in the Consolidated Condensed Statements of Income in Cost of Sales.