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Restructuring and Related Charges | 9 Months Ended
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Jun. 29, 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. 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 | $ | 25 |  | $ | 7 |  | $ | 22 |  | $ | 53 |  | $ | 18 |  | $ | 125 |  |
Relocation and related costs | 22 |  | 7 |  | 3 |  | 21 |  | — |  | 53 |  |
Accelerated depreciation | 5 |  | 2 |  | — |  | 12 |  | — |  | 19 |  |
Contract and lease terminations | — |  | — |  | — |  | 21 |  | — |  | 21 |  |
Professional and other fees | 2 |  | 1 |  | — |  | 4 |  | — |  | 7 |  |
Total 2022 Program | $ | 54 |  | $ | 17 |  | $ | 25 |  | $ | 111 |  | $ | 18 |  | $ | 225 |  |
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 $48 million and $177 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 $199 million of charges that have resulted or will result in cash outflows and $26 million in non-cash charges. The following table reflects the pretax impact of the 2022 Program’s restructuring and related charges during the first nine months of fiscal 2024 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 | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 4 |  | $ | 1 |  | $ | 2 |  | $ | 24 |  | $ | — |  | $ | 31 |
For the first nine months of fiscal 2024, we recorded restructuring and related charges of $31 million in Selling, General and Administrative in our Consolidated Condensed Statements of Income. Included in the above results are $21 million of charges that have resulted or will result in cash outflows and $10 million in non-cash charges. The following table reflects the pretax impact of the 2022 Program’s restructuring and related charges during the third quarter of fiscal 2023 by reportable segment (in millions):
| Beef | Pork | Chicken | Prepared Foods | International/Other | Total
Severance costs | $ | 4 |  | $ | 1 |  | $ | 10 |  | $ | 4 |  | $ | 9 |  | $ | 28 |
Relocation and related costs | 7 |  | 3 |  | — |  | 6 |  | — |  | 16 |
Accelerated depreciation | 1 |  | — |  | — |  | 3 |  | — |  | 4 |
Contract and lease terminations | — |  | — |  | — |  | 1 |  | — |  | 1 |
Professional and other fees | 1 |  | — |  | — |  | — |  | — |  | 1 |
Total | $ | 13 |  | $ | 4 |  | $ | 10 |  | $ | 14 |  | $ | 9 |  | $ | 50 |
For the third quarter of fiscal 2023, we recorded restructuring and related charges of $19 million and $31 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Condensed Statements of Income. There were no charges for the third quarter of fiscal 2024. The following table reflects the pretax impact of the 2022 Program’s restructuring and related charges during the first nine months of fiscal 2023 by reportable segment (in millions):
| Beef | Pork | Chicken | Prepared Foods | International/Other | Total
Severance costs | $ | 6 |  | $ | 2 |  | $ | 9 |  | $ | 10 |  | $ | 15 |  | $ | 42 |
Relocation and related costs | 14 |  | 5 |  | 2 |  | 12 |  | — |  | 33 |
Accelerated depreciation | 4 |  | 1 |  | — |  | 9 |  | — |  | 14 |
Contract and lease terminations | — |  | — |  | — |  | (1) |  | — |  | (1) |
Professional and other fees | 2 |  | — |  | — |  | 3 |  | — |  | 5 |
Total | $ | 26 |  | $ | 8 |  | $ | 11 |  | $ | 33 |  | $ | 15 |  | $ | 93 |
For the first nine months of fiscal 2023, we recorded restructuring and related charges of $23 million and $70 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Condensed Statements of Income. Included in the above results are $80 million of charges that have resulted or will result in cash outflows and $13 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 | $ | 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 | $ | 53 |  | $ | 17 |  | $ | 24 |  | $ | 109 |  | $ | 18 |  | $ | 221 |  |
Through the third quarter of fiscal 2024, we recorded restructuring and related charges to date of $47 million and $174 million in Cost of Sales and Selling, General and Administrative, respectively, in our Consolidated Condensed Statements of Income. Included in the above results are $195 million of charges to date that have resulted or will result in cash outflows and $26 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 June 29, 2024 (in millions):
| Balance at September 30, 2023 | Restructuring Expense | Payments | Changes in Estimates | Balance at June 29, 2024 |
Severance costs | $ | 58 |  | $ | 6 |  | $ | (51) |  | $ | (2) |  | $ | 11 |  |
Relocation and related costs | 5 |  | 8 |  | (11) |  | — |  | 2 |  |
Contract and lease termination | — |  | 9 |  | (9) |  | — |  | — |  |
Professional and other fees | 2 |  | — |  | — |  | (1) |  | 1 |  |
Total | $ | 65 |  | $ | 23 |  | $ | (71) |  | $ | (3) |  | $ | 14 |  |
As the Company continues to evaluate its business strategies and long-term growth targets, additional restructuring activities may occur. Plant Closures 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. As of the second quarter of fiscal 2024, we shifted production to other facilities and ceased operations at all six facilities. Additionally, during the first quarter of fiscal 2024, 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 during the second quarter of fiscal 2024 approved the closure of a Pork segment processing facility in Perry, Iowa to optimize asset utilization. We shifted production to other facilities and ceased operations at our Columbia and Jacksonville facilities during the first quarter of fiscal 2024, and shifted production and ceased operations at our Perry facility during the third quarter of fiscal 2024. As a result of the plant closures, we recorded $41 million and $155 million of charges in the third quarter and first nine months of fiscal 2024, respectively, and $15 million and $107 million of charges in the third quarter and first nine months of fiscal 2023, primarily related to grower contract terminations, accelerated depreciation, severance, retention and related costs. The charges are reflected in the Consolidated Condensed Statements of Income in Cost of Sales. Included in the results for the first nine months of fiscal 2024 are $12 million of charges that have resulted or will result in cash outflows and $143 million in non-cash charges. Included in the results for the first nine months of fiscal 2023 are $83 million of charges that have resulted or will result in cash outflows and $24 million of non-cash charges. The following table reflects our liability related to plant closures as of June 29, 2024 (in millions):
| Balance at September 30, 2023 | Plant Closure Charges | Payments | Balance at June 29, 2024
Contract termination | $ | 151 |  | $ | 13 |  | $ | (64) |  | $ | 100 |
Severance and retention | 14 |  | 9 |  | (12) |  | 11 |
Total | $ | 165 |  | $ | 22 |  | $ | (76) |  | $ | 111 |
During the first quarter of fiscal 2024, we experienced a fire at a production facility in the Netherlands which is included in International/Other for segment presentation. Subsequent to the first quarter of fiscal 2024, we recognized additional charges due to our decision to sell the facility. For the third quarter and first nine months of fiscal 2024, these charges totaled $3 million and $83 million, respectively, 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 Condensed Statements of Income in Cost of Sales and, for the first nine months of fiscal 2024, included $30 million of charges that have resulted or will result in cash outflows and $58 million of non-cash charges, offset by $5 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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