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RESTRUCTURING-RELATED ACTIVITIES | 9 Months Ended
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Sep. 24, 2023
Restructuring and Related Activities [Abstract] |
RESTRUCTURING-RELATED ACTIVITIES | RESTRUCTURING-RELATED ACTIVITIES In 2022, the Company began restructuring initiatives to phase out and reduce processing volumes at multiple production facilities throughout the U.K. and Europe reportable segment. Implementation of these initiatives is expected to result in total pre-tax charges of approxim ately $69.7 million, and approximately $45.1 million of these charges are estimated to result in cash outlays. These activities were initiated in the fourth quarter of 2022 and were nearing completion by the end of the third quarter of 2023. The following table provides a summary of our estimates of costs associated with these restructuring initiatives by major type of cost:
| Moy Park |  | Pilgrim’s Pride Ltd. |  | Pilgrim’s Food Masters |  | Total
| (In thousands)
Earliest implementation date | October 2022 |  | November 2022 |  | December 2022 |  |
Expected predominant completion date | June 2023 |  | July 2023 |  | July 2023 |  |
Costs incurred and expected to be incurred: |  |  |  |  |  |  |
Employee-related costs | $ | 10,972 |  |  | $ | 19,400 |  |  | $ | 12,633 |  |  | $ | 43,005 |
Asset impairment costs | 3,236 |  |  | — |  |  | 4,141 |  |  | 7,377 |
Contract termination costs | 248 |  |  | — |  |  | 24 |  |  | 272 |
Other exit and disposal costs (a) | 6,601 |  |  | 6,427 |  |  | 5,998 |  |  | 19,026 |
Total exit and disposal costs | $ | 21,057 |  |  | $ | 25,827 |  |  | $ | 22,796 |  |  | $ | 69,680 |
Cost incurred since earliest implementation date: |  |  |  |  |  |  |
Employee-related costs | $ | 10,972 |  |  | $ | 19,400 |  |  | $ | 12,420 |  |  | $ | 42,792 |
Asset impairment costs | 3,236 |  |  | — |  |  | 4,141 |  |  | 7,377 |
Contract termination costs | 248 |  |  | — |  |  | — |  |  | 248 |
Other exit and disposal costs (a) | 6,224 |  |  | 6,510 |  |  | 5,998 |  |  | 18,732 |
Total exit and disposal costs | $ | 20,680 |  |  | $ | 25,910 |  |  | $ | 22,559 |  |  | $ | 69,149 |
(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd. prepaid maintenance costs and Pilgrim’s Food Masters consulting fees. During the nine months ended September 24, 2023, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:
| Expenses |  | Cash Outlays
| (In thousands)
Moy Park | $ | 1,355 |  |  | $ | 6,855 |
Pilgrim’s Pride Ltd. | 15,771 |  |  | 19,517 |
Pilgrim’s Food Masters | 21,558 |  |  | 19,496 |
| $ | 38,684 |  |  | $ | 45,868 |
These expenses are reported in the line item Restructuring activities on the Condensed Consolidated Statements of Income. The following table reconciles liabilities and reserves associated with each restructuring initiative from its respective inception to September 24, 2023. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets. The ending reserve balance for inventory adjustments is reported in the line item Inventories in our Condensed Consolidated Balance Sheets. The ending reserve balance for asset impairments is reported in the line item Property, plant and equipment, net in our Condensed Consolidated Balance Sheets.
| Moy Park
| Liability or reserve as of December 25, 2022 |  | Restructuring charges incurred |  | Cash payments and disposals |  | Currency translation |  | Liability or reserve as of September 24, 2023
| (In thousands)
Asset impairment | $ | 2,391 |  |  | $ | (323) |  |  | $ | (2,514) |  |  | $ | 446 |  |  | $ | — |
Inventory adjustments | 1 |  |  | 47 |  |  | (48) |  |  | — |  |  | — |
Other charges | 6,025 |  |  | 141 |  |  | (2,819) |  |  | (329) |  |  | 3,018 |
Other employee costs | — |  |  | 1,364 |  |  | (1,364) |  |  | — |  |  | — |
Contract termination | 122 |  |  | 126 |  |  | (110) |  |  | — |  |  | 138 |
Total | $ | 8,539 |  |  | $ | 1,355 |  |  | $ | (6,855) |  |  | $ | 117 |  |  | $ | 3,156 |
| Pilgrim’s Pride Ltd.
| Liability or reserve as of December 25, 2022 |  | Restructuring charges incurred |  | Cash payments and disposals |  | Currency translation |  | Liability or reserve as of September 24, 2023
| (In thousands)
Employee retention benefits | $ | — |  |  | $ | 1,838 |  |  | $ | (1,800) |  |  | $ | 5 |  |  | $ | 43 |
Severance | 5,503 |  |  | 9,355 |  |  | (14,083) |  |  | 158 |  |  | 933 |
Inventory adjustments | 615 |  |  | 372 |  |  | (722) |  |  | 18 |  |  | 283 |
Lease termination | 800 |  |  | (67) |  |  | — |  |  | 15 |  |  | 748 |
Other charges | 501 |  |  | 4,273 |  |  | (2,912) |  |  | (10) |  |  | 1,852 |
Total | $ | 7,419 |  |  | $ | 15,771 |  |  | $ | (19,517) |  |  | $ | 186 |  |  | $ | 3,859 |
| Pilgrim’s Food Masters
| Liability or reserve as of December 25, 2022 |  | Restructuring charges incurred |  | Cash payments and disposals |  | Currency translation |  | Liability or reserve as of September 24, 2023
| (In thousands)
Severance | $ | 639 |  |  | $ | 11,457 |  |  | $ | (11,975) |  |  | $ | 48 |  |  | $ | 169 |
Asset impairment | — |  |  | 4,141 |  |  | (4,143) |  |  | 2 |  |  | — |
Inventory adjustments | — |  |  | 793 |  |  | (728) |  |  | (4) |  |  | 61 |
Lease termination | — |  |  | 1,219 |  |  | — |  |  | 27 |  |  | 1,246 |
Other charges | — |  |  | 3,948 |  |  | (2,650) |  |  | (12) |  |  | 1,286 |
Total | $ | 639 |  |  | $ | 21,558 |  |  | $ | (19,496) |  |  | $ | 61 |  |  | $ | 2,762 |

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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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