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RESTRUCTURING ACTIVITIES | 6 Months Ended
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Nov. 29, 2015
Restructuring and Related Activities [Abstract] |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES Supply Chain and Administrative Efficiency Plan We previously announced a plan for the integration and restructuring of the operations of Ralcorp Holdings, Inc. ("Ralcorp"), optimization of the entire Company's supply chain network, manufacturing assets, and dry distribution and mixing centers, and improvement of selling, general and administrative effectiveness and efficiencies, which we refer to as the Supply Chain and Administrative Efficiency Plan (the "SCAE Plan"). Although we expect the divestiture of the Private Brands business to be completed in the third quarter of fiscal 2016, we will continue to implement portions of the SCAE Plan, including work related to optimizing our supply chain network and pursue cost reductions through our selling, general and administrative functions and productivity improvements. The SCAE Plan also includes plans announced in the second quarter of fiscal 2016 to realize efficiency benefits through a combination of reductions in selling, general and administrative expenses and enhancements to trade spend processes and tools. Although we remain unable to make good faith estimates relating to the entire SCAE Plan, we are reporting on actions initiated through the end of the second quarter of fiscal 2016, including the estimated amounts or range of amounts for each major type of costs expected to be incurred, and the charges that have resulted or will result in cash outflows. As of November 29, 2015, our Board of Directors has approved the incurrence of up to $739.0 million of expenses in connection with the SCAE Plan, including expenses allocated for the Private Brands operations. We have incurred or expect to incur approximately $472.9 million of charges ($376.5 million of cash charges and $96.4 million of non-cash charges) for actions identified to date under the SCAE Plan related to our continuing operations. In the second quarter and first half of fiscal 2016, we recognized charges of $133.0 million and $150.4 million, respectively, in relation to the SCAE Plan. In the second quarter and first half of fiscal 2015, we recognized charges of $10.3 million and $26.0 million, respectively, in relation to the SCAE Plan. We expect to incur costs related to the SCAE Plan over a multi-year period. We anticipate that we will recognize the following pre-tax expenses in association with the SCAE Plan (amounts include charges recognized from plan inception through the first half of fiscal 2016):
| Consumer Foods |  | Commercial Foods |  | Corporate |  | Total
Multi-employer pension costs | $ | 1.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 1.5 |
Accelerated depreciation | 38.3 |  |  |  |  |  | 1.2 |  |  | 39.5 |
Other cost of goods sold | 6.1 |  |  | — |  |  | — |  |  | 6.1 |
Total cost of goods sold | 45.9 |  |  | — |  |  | 1.2 |  |  | 47.1 |
Severance and related costs (recoveries) | 30.3 |  |  | 8.1 |  |  | 184.5 |  |  | 222.9 |
Fixed asset impairment/Net gain on disposal | 1.0 |  |  | — |  |  | — |  |  | 1.0 |
Accelerated depreciation | — |  |  | — |  |  | 1.5 |  |  | 1.5 |
Contract/Lease cancellation expenses | 1.5 |  |  | — |  |  | 59.1 |  |  | 60.6 |
Consulting/Professional fees | 1.0 |  |  | — |  |  | 65.9 |  |  | 66.9 |
Other selling, general and administrative expenses | 15.6 |  |  | — |  |  | 57.3 |  |  | 72.9 |
Total selling, general and administrative expenses | 49.4 |  |  | 8.1 |  |  | 368.3 |  |  | 425.8 |
Consolidated total | $ | 95.3 |  |  | $ | 8.1 |  |  | $ | 369.5 |  |  | $ | 472.9 |
During the second quarter of fiscal 2016, we recognized the following pre-tax expenses for the SCAE Plan:
| Consumer Foods |  | Commercial Foods |  | Corporate |  | Total
Accelerated depreciation | $ | 5.3 |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | 5.4 |
Other cost of goods sold | 0.3 |  |  | — |  |  | — |  |  | 0.3 |
Total cost of goods sold | 5.6 |  |  | — |  |  | 0.1 |  |  | 5.7 |
Severance and related costs (recoveries) | 4.3 |  |  | — |  |  | 51.8 |  |  | 56.1 |
Contract/Lease cancellation expenses | (0.9 | ) |  | — |  |  | 51.8 |  |  | 50.9 |
Consulting/Professional fees | — |  |  | — |  |  | 18.9 |  |  | 18.9 |
Accelerated depreciation | — |  |  | — |  |  | 0.1 |  |  | 0.1 |
Other selling, general and administrative expenses | 0.5 |  |  | — |  |  | 0.8 |  |  | 1.3 |
Total selling, general and administrative expenses | 3.9 |  |  | — |  |  | 123.4 |  |  | 127.3 |
Consolidated total | $ | 9.5 |  |  | $ | — |  |  | $ | 123.5 |  |  | $ | 133.0 |
Included in the above table are $78.7 million of charges that have resulted or will result in cash outflows and $54.3 million in non-cash charges. Not included in the above amounts are $6.2 million of pre-tax expenses related to the Private Brands operations we have agreed to sell. During the second quarter of fiscal 2016, we entered into a series of related transactions in which we exchanged a warehouse we owned in Indiana for two buildings and parcels of land that we leased as part of our Omaha corporate offices. Concurrent with the asset exchange, leases on the two Omaha corporate buildings were cancelled and we recognized a charge of $48.5 million for the early termination of these leases. We entered into a new capital lease for the warehouse in Indiana and we recorded a financing lease obligation of $62.2 million in the second quarter of fiscal 2016. During the first half of fiscal 2016, we recognized the following pre-tax expenses for the SCAE Plan:
| Consumer Foods |  | Commercial Foods |  | Corporate |  | Total
Accelerated depreciation | $ | 8.9 |  |  | $ | — |  |  | $ | 0.2 |  |  | $ | 9.1 |
Other cost of goods sold | 0.4 |  |  | — |  |  | — |  |  | 0.4 |
Total cost of goods sold | 9.3 |  |  | — |  |  | 0.2 |  |  | 9.5 |
Severance and related costs (recoveries) | 5.1 |  |  | 0.1 |  |  | 55.4 |  |  | 60.6 |
Fixed asset impairment/Net gain on disposal | (0.1 | ) |  | — |  |  | — |  |  | (0.1 | )
Contract/Lease cancellation expenses | (0.7 | ) |  | — |  |  | 51.8 |  |  | 51.1 |
Consulting/Professional fees | — |  |  | — |  |  | 25.2 |  |  | 25.2 |
Accelerated depreciation | — |  |  | — |  |  | 0.1 |  |  | 0.1 |
Other selling, general and administrative expenses | 2.5 |  |  | — |  |  | 1.5 |  |  | 4.0 |
Total selling, general and administrative expenses | 6.8 |  |  | 0.1 |  |  | 134.0 |  |  | 140.9 |
Consolidated total | $ | 16.1 |  |  | $ | 0.1 |  |  | $ | 134.2 |  |  | $ | 150.4 |
Included in the above table are $92.0 million of charges that have resulted or will result in cash outflows and $58.4 million in non-cash charges. Not included in the above table are $10.2 million of pre-tax expenses related to the Private Brands operations we have agreed to sell. We recognized the following cumulative (plan inception to November 29, 2015) pre-tax expenses related to the SCAE Plan in our Condensed Consolidated Statements of Operations:
| Consumer Foods |  | Commercial Foods |  | Corporate |  | Total
Multi-employer pension costs | $ | 1.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 1.5 |
Accelerated depreciation | 30.4 |  |  | — |  |  | 1.2 |  |  | 31.6 |
Other cost of goods sold | 2.5 |  |  | — |  |  | — |  |  | 2.5 |
Total cost of goods sold | 34.4 |  |  | — |  |  | 1.2 |  |  | 35.6 |
Severance and related costs (recoveries) | 26.7 |  |  | 8.1 |  |  | 63.2 |  |  | 98.0 |
Contract/Lease cancellation expenses | 0.7 |  |  | — |  |  | 52.1 |  |  | 52.8 |
Consulting/Professional fees | 1.0 |  |  | — |  |  | 28.0 |  |  | 29.0 |
Fixed asset impairment / Net gain on disposal | 1.0 |  |  | — |  |  | — |  |  | 1.0 |
Accelerated depreciation | — |  |  | — |  |  | 0.9 |  |  | 0.9 |
Other selling, general and administrative expenses | 5.7 |  |  | — |  |  | 6.4 |  |  | 12.1 |
Total selling, general and administrative expenses | 35.1 |  |  | 8.1 |  |  | 150.6 |  |  | 193.8 |
Consolidated total | $ | 69.5 |  |  | $ | 8.1 |  |  | $ | 151.8 |  |  | $ | 229.4 |
Included in the above table are $145.1 million of charges that have resulted or will result in cash outflows and $84.3 million in non-cash charges. Not included in the above table are $128.7 million of pre-tax expenses ($83.3 million of cash charges and $45.4 million of non-cash charges) related to the Private Brands operations we have agreed to sell. Liabilities recorded for the SCAE Plan and changes therein for the second quarter of fiscal 2016 were as follows:
| Balance at May 31, 2015 |  | Costs Incurred and Charged to Expense |  | Costs Paid or Otherwise Settled |  | Changes in Estimates |  | Balance at November 29, 2015
Multi-employer pension costs | $ | 11.4 |  |  | $ | 0.2 |  |  | $ | (0.4 | ) |  | $ | — |  |  | $ | 11.2 |
Severance | 16.4 |  |  | 63.3 |  |  | (11.6 | ) |  | (0.6 | ) |  | 67.5 |
Consulting | 0.2 |  |  | 25.3 |  |  | (6.6 | ) |  | — |  |  | 18.9 |
Contract cancellation | 3.1 |  |  | 3.3 |  |  | (1.0 | ) |  | (0.6 | ) |  | 4.8 |
Other costs | 1.2 |  |  | 3.9 |  |  | (3.7 | ) |  | (0.1 | ) |  | 1.3 |
Total | $ | 32.3 |  |  | $ | 96.0 |  |  | $ | (23.3 | ) |  | $ | (1.3 | ) |  | $ | 103.7 |

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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