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Restructuring and Related Activities | 12 Months Ended
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Sep. 28, 2024
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. The 2022 Program and associated expenses were substantially completed in our fiscal 2024. The following table reflects the total pretax expenses associated with the 2022 Program (in millions):
| Beef | Pork | Chicken | Prepared Foods | International/Other | Total |
Severance costs | $ | 25 |  | $ | 7 |  | $ | 22 |  | $ | 53 |  | $ | 18 |  | $ | 125 |  |
Relocation and related costs | 21 |  | 7 |  | 2 |  | 20 |  | — |  | 50 |  |
Accelerated depreciation | 5 |  | 2 |  | — |  | 12 |  | — |  | 19 |  |
Contract and lease terminations | — |  | — |  | — |  | 21 |  | — |  | 21 |  |
Professional and other fees | 2 |  | 1 |  | — |  | 3 |  | — |  | 6 |  |
Total 2022 Program | $ | 53 |  | $ | 17 |  | $ | 24 |  | $ | 109 |  | $ | 18 |  | $ | 221 |  |
The following table reflects the pretax impact of the 2022 Program’s restructuring and related charges during fiscal 2024, 2023 and 2022, respectively, by reportable segment (in millions):
| Beef | Pork | Chicken | Prepared Foods | International/Other | Total |
Severance costs | $ | 1 |  | $ | — |  | $ | 2 |  | $ | 1 |  | $ | — |  | $ | 4 |  |
Relocation and related costs | 3 |  | 1 |  | — |  | 4 |  | — |  | 8 |  |
Accelerated depreciation | — |  | — |  | — |  | — |  | — |  | — |  |
Contract and lease terminations | — |  | — |  | — |  | 19 |  | — |  | 19 |  |
Professional and other fees | — |  | — |  | — |  | — |  | — |  | — |  |
2024 Total | $ | 4 |  | $ | 1 |  | $ | 2 |  | $ | 24 |  | $ | — |  | $ | 31 |  |
| 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 |  |
2023 Total | $ | 33 |  | $ | 11 |  | $ | 16 |  | $ | 49 |  | $ | 15 |  | $ | 124 |  |
| 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 | — |  | — |  | — |  | — |  | — |  | — |  |
2022 Total | $ | 16 |  | $ | 5 |  | $ | 6 |  | $ | 36 |  | $ | 3 |  | $ | 66 |  |
Included in the above results are cash charges of $21 million, $108 million and $66 million in fiscal 2024, 2023 and 2022, respectively. Included in the above results are non-cash charges of $10 million and $16 million in fiscal 2024 and 2023, respectively, with no non-cash charges in fiscal 2022. The following table reflects the pretax impact of the 2022 Program's restructuring and related charges as reflected in our Consolidated Statements of Income (in millions):
| 2024 | 2023 | 2022 | Total
Cost of Sales | $ | — |  | $ | 29 |  | $ | 18 |  | $ | 47 |
Selling, General and Administrative | 31 |  | 95 |  | 48 |  | 174 |
Total | $ | 31 |  | $ | 124 |  | $ | 66 |  | $ | 221 |
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 28, 2024 (in millions):
| Balance at September 30, 2023 | Restructuring Expense | Payments | Changes in Estimates | Balance at September 28, 2024 |
Severance costs | $ | 58 |  | $ | 6 |  | $ | (56) |  | $ | (2) |  | $ | 6 |  |
Relocation and related costs | 5 |  | 8 |  | (12) |  | — |  | 1 |  |
Contract and lease termination | — |  | 9 |  | (9) |  | — |  | — |  |
Professional and other fees | 2 |  | — |  | (2) |  | — |  | — |  |
Total | $ | 65 |  | $ | 23 |  | $ | (79) |  | $ | (2) |  | $ | 7 |  |
Plant Closures and Disposals During fiscal 2023, as part of a strategic review of assets, the Company approved the closure of six Chicken segment processing facilities located in Glen Allen, Virginia; Van Buren, Arkansas; Corydon, Indiana; Dexter, Missouri; Noel, Missouri; and North Little Rock, Arkansas, to optimize asset utilization. During fiscal 2024, to optimize asset utilization, the Company approved the closure of two case ready value-added plants in our Beef segment located in Columbia, South Carolina and Jacksonville, Florida, and a Pork segment processing facility in Perry, Iowa. We have ceased operations and shifted production to other facilities at all closed facilities. Additionally, during fiscal 2024, the Company sold a Chicken segment processing facility located in Vienna, Georgia. During fiscal 2024, as a result of the plant closures and disposals, we recorded $198 million of charges in fiscal 2024 and $322 million of charges in fiscal 2023, primarily related to grower contract terminations, accelerated depreciation, severance, retention and related costs, and recorded a gain of $16 million related to the sale of the Vienna, Georgia facility. Additionally, during fiscal 2023, we recorded an impairment charge of $17 million related to the discontinuation of a product line in the Prepared Foods segment. The charges are reflected in the Consolidated Statements of Income in Cost of Sales. Included in the results for fiscal 2024 are $24 million of charges that have resulted or will result in cash outflows and $174 million in non-cash charges. Included in the results for fiscal 2023 are $201 million of charges that have resulted or will result in cash outflows and $138 million of non-cash charges. The following table reflects our liability related to plant closures as of September 28, 2024 (in millions):
| Balance at September 30, 2023 | Plant Closure Charges | Payments | Balance at September 28, 2024
Contract termination | $ | 151 |  | $ | 23 |  | $ | (76) |  | $ | 98 |
Severance and retention | 14 |  | 11 |  | (20) |  | 5 |
Total | $ | 165 |  | $ | 34 |  | $ | (96) |  | $ | 103 |
During fiscal 2024, we experienced a fire at a production facility in the Netherlands which is included in International/Other for segment presentation, and subsequently approved the sale of the facility. For fiscal 2024, charges related to the fire and decision to sell the facility, totaled $86 million, primarily related to property, plant and equipment impairments, severance costs, inventory write-offs and clean-up costs, partially offset by insurance proceeds. The net charges are reflected in the Consolidated Statements of Income in Cost of Sales and, for fiscal 2024, included $31 million of charges that have resulted or will result in cash outflows and $64 million of non-cash charges, offset by $9 million of insurance proceeds. We continue to strategically evaluate optimization of such items as network capacity, manufacturing efficiencies and business technology. If we have a significant change in strategies, outlook, or a manner in which we plan to use these assets, we may experience future charges.

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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 S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: 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 + Details
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