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RESTRUCTURING ACTIVITIES | 6 Months Ended
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Nov. 26, 2017
Restructuring and Related Activities [Abstract] |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES Supply Chain and Administrative Efficiency Plan In May 2013, we announced the Supply Chain and Administrative Efficiency Plan (the "SCAE Plan"), our plan to integrate and restructure the operations of our Private Brands business, improve SG&A effectiveness and efficiencies, and optimize our supply chain network, manufacturing assets, dry distribution centers, and mixing centers. In the second quarter of fiscal 2016, we announced plans to realize efficiency benefits by reducing SG&A expenses and enhancing trade spend processes and tools, which plans were included as part of the SCAE Plan. Although we divested the Private Brands business, we have continued to implement the SCAE Plan, including by working to optimize our supply chain network, pursue cost reductions through our SG&A functions, enhance trade spend processes and tools, and improve productivity. 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 2018, 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 26, 2017, our Board of Directors has approved the incurrence of up to $900.9 million of expenses in connection with the SCAE Plan, including expenses allocated for the Private Brands and Lamb Weston operations. We have incurred or expect to incur approximately $464.8 million of charges ($320.7 million of cash charges and $144.1 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 2018, we recognized charges of $7.1 million and $18.5 million, respectively, in association with the SCAE Plan related to our continuing operations. In the second quarter and first half of fiscal 2017, we recognized $19.8 million and $33.9 million, respectively, in association with the SCAE Plan related to our continuing operations. 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 related to our continuing operations (amounts include charges recognized from plan inception through the first half of fiscal 2018):
| Grocery & Snacks |  | Refrigerated & Frozen |  | International |  | Foodservice |  | Corporate |  | Total
Pension costs | $ | 32.9 |  |  | $ | 1.5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 34.4 |
Accelerated depreciation | 32.2 |  |  | 18.6 |  |  | — |  |  | — |  |  | 1.2 |  |  | 52.0 |
Other cost of goods sold | 10.0 |  |  | 2.1 |  |  | — |  |  | — |  |  | — |  |  | 12.1 |
Total cost of goods sold | 75.1 |  |  | 22.2 |  |  | — |  |  | — |  |  | 1.2 |  |  | 98.5 |
Severance and related costs, net | 26.0 |  |  | 10.3 |  |  | 3.4 |  |  | 7.9 |  |  | 103.4 |  |  | 151.0 |
Fixed asset impairment (net of gains on disposal) | 5.9 |  |  | 6.9 |  |  | — |  |  | — |  |  | 11.2 |  |  | 24.0 |
Accelerated depreciation | — |  |  | — |  |  | — |  |  | — |  |  | 4.7 |  |  | 4.7 |
Contract/lease cancellation expenses | 0.9 |  |  | 0.6 |  |  | 0.6 |  |  | — |  |  | 86.2 |  |  | 88.3 |
Consulting/professional fees | 1.1 |  |  | 0.4 |  |  | 0.1 |  |  | — |  |  | 54.1 |  |  | 55.7 |
Other selling, general and administrative expenses | 16.1 |  |  | 3.2 |  |  | — |  |  | — |  |  | 23.3 |  |  | 42.6 |
Total selling, general and administrative expenses | 50.0 |  |  | 21.4 |  |  | 4.1 |  |  | 7.9 |  |  | 282.9 |  |  | 366.3 |
Consolidated total | $ | 125.1 |  |  | $ | 43.6 |  |  | $ | 4.1 |  |  | $ | 7.9 |  |  | $ | 284.1 |  |  | $ | 464.8 |
During the second quarter of fiscal 2018, we recognized the following pre-tax expenses for the SCAE Plan related to our continuing operations:
| Grocery & Snacks |  | International |  | Corporate |  | Total
Pension costs | $ | 2.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 2.1 |
Other cost of goods sold | 1.3 |  |  | — |  |  | — |  |  | 1.3 |
Total cost of goods sold | 3.4 |  |  | — |  |  | — |  |  | 3.4 |
Severance and related costs, net | (0.2 | ) |  | 0.9 |  |  | 0.6 |  |  | 1.3 |
Fixed asset impairment (net of gains on disposal) | (1.5 | ) |  | — |  |  | — |  |  | (1.5 | )
Accelerated depreciation | — |  |  | — |  |  | 0.7 |  |  | 0.7 |
Contract/lease cancellation expenses | 0.1 |  |  | — |  |  | (0.1 | ) |  | — |
Consulting/professional fees | 0.1 |  |  | — |  |  | 0.4 |  |  | 0.5 |
Other selling, general and administrative expenses | 2.1 |  |  | — |  |  | 0.6 |  |  | 2.7 |
Total selling, general and administrative expenses | 0.6 |  |  | 0.9 |  |  | 2.2 |  |  | 3.7 |
Consolidated total | $ | 4.0 |  |  | $ | 0.9 |  |  | $ | 2.2 |  |  | $ | 7.1 |
Included in the above table are $7.7 million of charges that have resulted or will result in cash outflows and net non-cash gains of $0.6 million. During the first half of fiscal 2018, we recognized the following pre-tax expenses for the SCAE Plan related to our continuing operations:
| Grocery & Snacks |  | International |  | Corporate |  | Total
Pension costs | $ | 2.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 2.1 |
Accelerated depreciation | 1.2 |  |  | — |  |  | — |  |  | 1.2 |
Other cost of goods sold | 2.4 |  |  | — |  |  | — |  |  | 2.4 |
Total cost of goods sold | 5.7 |  |  | — |  |  | — |  |  | 5.7 |
Severance and related costs, net | 1.8 |  |  | 0.9 |  |  | 0.6 |  |  | 3.3 |
Fixed asset impairment (net of gains on disposal) | (1.4 | ) |  | — |  |  | 4.4 |  |  | 3.0 |
Accelerated depreciation | — |  |  | — |  |  | 1.3 |  |  | 1.3 |
Contract/lease cancellation expenses | 0.1 |  |  | — |  |  | (0.1 | ) |  | — |
Consulting/professional fees | 0.1 |  |  | — |  |  | 0.6 |  |  | 0.7 |
Other selling, general and administrative expenses | 3.9 |  |  | — |  |  | 0.6 |  |  | 4.5 |
Total selling, general and administrative expenses | 4.5 |  |  | 0.9 |  |  | 7.4 |  |  | 12.8 |
Consolidated total | $ | 10.2 |  |  | $ | 0.9 |  |  | $ | 7.4 |  |  | $ | 18.5 |
Included in the above table are $12.5 million of charges that have resulted or will result in cash outflows and $6.0 million in non-cash charges. We recognized the following cumulative (plan inception to November 26, 2017) pre-tax expenses related to the SCAE Plan related to our continuing operations in our Condensed Consolidated Statements of Earnings:
| Grocery & Snacks |  | Refrigerated & Frozen |  | International |  | Foodservice |  | Corporate |  | Total
Pension costs | $ | 35.0 |  |  | $ | 1.5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 36.5 |
Accelerated depreciation | 32.2 |  |  | 18.6 |  |  | — |  |  | — |  |  | 1.2 |  |  | 52.0 |
Other cost of goods sold | 7.4 |  |  | 2.1 |  |  | — |  |  | — |  |  | — |  |  | 9.5 |
Total cost of goods sold | 74.6 |  |  | 22.2 |  |  | — |  |  | — |  |  | 1.2 |  |  | 98.0 |
Severance and related costs, net | 25.7 |  |  | 10.3 |  |  | 3.4 |  |  | 7.9 |  |  | 102.1 |  |  | 149.4 |
Fixed asset impairment (net of gains on disposal) | 5.9 |  |  | 6.9 |  |  | — |  |  | — |  |  | 11.2 |  |  | 24.0 |
Accelerated depreciation | — |  |  | — |  |  | — |  |  | — |  |  | 3.9 |  |  | 3.9 |
Contract/lease cancellation expenses | 0.9 |  |  | 0.6 |  |  | 0.6 |  |  | — |  |  | 71.2 |  |  | 73.3 |
Consulting/professional fees | 1.0 |  |  | 0.4 |  |  | 0.1 |  |  | — |  |  | 51.8 |  |  | 53.3 |
Other selling, general and administrative expenses | 15.1 |  |  | 3.2 |  |  | — |  |  | — |  |  | 20.6 |  |  | 38.9 |
Total selling, general and administrative expenses | 48.6 |  |  | 21.4 |  |  | 4.1 |  |  | 7.9 |  |  | 260.8 |  |  | 342.8 |
Consolidated total | $ | 123.2 |  |  | $ | 43.6 |  |  | $ | 4.1 |  |  | $ | 7.9 |  |  | $ | 262.0 |  |  | $ | 440.8 |
Included in the above results are $298.0 million of charges that have resulted or will result in cash outflows and $142.8 million in non-cash charges. Not included in the above results are $130.2 million of pre-tax expenses ($84.5 million of cash charges and $45.7 million of non-cash charges) related to the Private Brands operations, which we sold in the third quarter of fiscal 2016, and $2.1 million of pre-tax expenses (all resulting in cash charges) related to Lamb Weston. Liabilities recorded for the SCAE Plan related to our continuing operations and changes therein for the first half of fiscal 2018 were as follows:
| Balance at May 28, 2017 |  | Costs Incurred and Charged to Expense |  | Costs Paid or Otherwise Settled |  | Changes in Estimates |  | Balance at November 26, 2017
Pension costs | $ | 31.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 2.1 |  |  | $ | 33.9 |
Severance and related costs | 13.8 |  |  | 4.0 |  |  | (7.9 | ) |  | (0.7 | ) |  | 9.2 |
Consulting/professional fees | 0.6 |  |  | 0.7 |  |  | (1.1 | ) |  | — |  |  | 0.2 |
Contract/lease cancellation | 11.6 |  |  | 0.3 |  |  | (3.6 | ) |  | (0.3 | ) |  | 8.0 |
Other costs | 1.9 |  |  | 6.5 |  |  | (6.9 | ) |  | — |  |  | 1.5 |
Total | $ | 59.7 |  |  | $ | 11.5 |  |  | $ | (19.5 | ) |  | $ | 1.1 |  |  | $ | 52.8 |

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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 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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