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RESTRUCTURING-RELATED ACTIVITIES | 3 Months Ended
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Mar. 31, 2024
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 Europe reportable segment. Implementation of these initiatives is expected to result in total pre-tax charges of approxim ately $74.9 million, and approximately $49.1 million of these charges are estimated to result in cash outlays. These activities were initiated in the fourth quarter of 2022 and were substantially completed by the end of 2023. In 2023, the Company began a restructuring initiative to phase out and reduce processing volumes at a production facility in the Europe reportable segment. Implementation of this initiative is expected to result in total pre-tax charges of approximately $3.0 million, and all of these charges are estimated to result in cash outlays. This activity was initiated in the fourth quarter of 2023 and was substantially completed by the end of the first quarter of 2024. During the three months ended March 31, 2024, the Company began a restructuring initiative to integrate central operations in the Europe reportable segment. Implementation of this initiative is expected to result in total pre-tax charges of approximately $14.5 million, and all of these charges are estimated to result in cash outlays. This activity was initiated in the first quarter of 2024 and is expected to be substantially completed by the end of 2024. 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 2022 |  | Pilgrim’s Food Masters 2023 |  | Pilgrim’s Europe Central |  | Total
| (In thousands)
Earliest implementation date | October 2022 |  | November 2022 |  | December 2022 |  | October 2023 |  | January 2024 |  |
Expected predominant completion date | June 2023 |  | July 2023 |  | July 2023 |  | March 2024 |  | December 2024 |  |
Costs incurred and expected to be incurred: |  |  |  |  |  |  |  |  |  |  |
Employee-related costs | $ | 11,103 |  |  | $ | 20,098 |  |  | $ | 14,490 |  |  | $ | 3,027 |  |  | $ | 13,926 |  |  | $ | 62,644 |
Asset impairment costs | 3,476 |  |  | 3,046 |  |  | 4,141 |  |  | — |  |  | — |  |  | 10,663 |
Contract termination costs | 248 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 248 |
Other exit and disposal costs (a) | 6,245 |  |  | 5,763 |  |  | 6,330 |  |  | — |  |  | 524 |  |  | 18,862 |
Total exit and disposal costs | $ | 21,072 |  |  | $ | 28,907 |  |  | $ | 24,961 |  |  | $ | 3,027 |  |  | $ | 14,450 |  |  | $ | 92,417 |
Cost incurred since earliest implementation date: |  |  |  |  |  |  |  |  |  |  |
Employee-related costs | $ | 11,103 |  |  | $ | 20,098 |  |  | $ | 14,490 |  |  | $ | 3,027 |  |  | $ | 13,926 |  |  | $ | 62,644 |
Asset impairment costs | 3,476 |  |  | — |  |  | 4,141 |  |  | — |  |  | — |  |  | 7,617 |
Contract termination costs | 248 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 248 |
Other exit and disposal costs (a) | 6,245 |  |  | 5,763 |  |  | 6,330 |  |  | — |  |  | 524 |  |  | 18,862 |
Total exit and disposal costs | $ | 21,072 |  |  | $ | 25,861 |  |  | $ | 24,961 |  |  | $ | 3,027 |  |  | $ | 14,450 |  |  | $ | 89,371 |
(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 three months ended March 31, 2024, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:
| Expenses |  | Cash Outlays
| (In thousands)
Moy Park | $ | — |  |  | $ | — |
Pilgrim’s Pride Ltd. | 109 |  |  | 318 |
Pilgrim’s Food Masters 2022 | — |  |  | 2,909 |
Pilgrim’s Food Masters 2023 | — |  |  | — |
Pilgrim’s Europe Central | 14,450 |  |  | 6,703 |
| $ | 14,559 |  |  | $ | 9,930 |
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 March 31, 2024. 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 31, 2023 |  | Restructuring charges incurred |  | Cash payments and disposals |  | Currency translation |  | Liability or reserve as of March 31, 2024
| (In thousands)
Other charges | $ | 2,644 |  |  | $ | — |  |  | $ | — |  |  | $ | (24) |  |  | $ | 2,620 |
Contract termination | 144 |  |  | — |  |  | — |  |  | (1) |  |  | 143 |
Total | $ | 2,788 |  |  | $ | — |  |  | $ | — |  |  | $ | (25) |  |  | $ | 2,763 |
| Pilgrim’s Pride Ltd.
| Liability or reserve as of December 31, 2023 |  | Restructuring charges incurred |  | Cash payments and disposals |  | Currency translation |  | Liability or reserve as of March 31, 2024
| (In thousands)
Employee retention benefits | $ | 35 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 35 |
Severance | 734 |  |  | — |  |  | (318) |  |  | (5) |  |  | 411 |
Inventory adjustments | 294 |  |  | — |  |  | — |  |  | (3) |  |  | 291 |
Lease termination | 164 |  |  | 109 |  |  | — |  |  | (1) |  |  | 272 |
Other charges | 752 |  |  | — |  |  | — |  |  | (8) |  |  | 744 |
Total | $ | 1,979 |  |  | $ | 109 |  |  | $ | (318) |  |  | $ | (17) |  |  | $ | 1,753 |
| Pilgrim’s Food Masters 2022
| Liability or reserve as of December 31, 2023 |  | Restructuring charges incurred |  | Cash payments and disposals |  | Currency translation |  | Liability or reserve as of March 31, 2024
| (In thousands)
Severance | $ | 1,281 |  |  | $ | — |  |  | $ | (1,276) |  |  | $ | (5) |  |  | $ | — |
Inventory adjustments | 65 |  |  | — |  |  | — |  |  | (2) |  |  | 63 |
Lease termination | 1,289 |  |  | — |  |  | (1,284) |  |  | (5) |  |  | — |
Other charges | 685 |  |  | — |  |  | (349) |  |  | (4) |  |  | 332 |
Total | $ | 3,320 |  |  | $ | — |  |  | $ | (2,909) |  |  | $ | (16) |  |  | $ | 395 |
| Pilgrim’s Food Masters 2023
| Liability or reserve as of December 31, 2023 |  | Restructuring charges incurred |  | Cash payments and disposals |  | Currency translation |  | Liability or reserve as of March 31, 2024
| (In thousands)
Employee retention benefits | $ | 522 |  |  | $ | — |  |  | $ | — |  |  | $ | (5) |  |  | $ | 517 |
Severance | 1,636 |  |  | — |  |  | — |  |  | (13) |  |  | 1,623 |
Total | $ | 2,158 |  |  | $ | — |  |  | $ | — |  |  | $ | (18) |  |  | $ | 2,140 |
| Pilgrim’s Europe Central
| Liability or reserve as of December 31, 2023 |  | Restructuring charges incurred |  | Cash payments and disposals |  | Currency translation |  | Liability or reserve as of March 31, 2024
| (In thousands)
Employee retention benefits | $ | — |  |  | $ | 12 |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |
Severance | — |  |  | 13,914 |  |  | (6,703) |  |  | (66) |  |  | 7,145 |
Lease termination | — |  |  | 8 |  |  | — |  |  | — |  |  | 8 |
Other charges | — |  |  | 516 |  |  | — |  |  | (4) |  |  | 512 |
Total | $ | — |  |  | $ | 14,450 |  |  | $ | (6,703) |  |  | $ | (70) |  |  | $ | 7,677 |

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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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