RESTRUCTURING AND RELATED CHARGES

In the fourth quarter of fiscal 2017, our Board of Directors approved a multi-year restructuring program (the “Financial Fitness Program”), which is expected to contribute to the Company’s overall strategy of financial fitness through increased operational effectiveness and overhead reduction. The Company currently anticipates the Financial Fitness Program will result in cumulative pretax charges, once implemented, of approximately $218 million which consist primarily of severance and employee related costs, asset impairments, accelerated depreciation, incremental costs to implement new technology, and contract termination costs. As part of this program, we anticipate eliminating approximately 600 positions across several areas and job levels with most of the eliminated positions originating from the corporate offices in Springdale, Arkansas; Chicago, Illinois; and Cincinnati, Ohio. In the first quarter of fiscal 2018, the Company recognized restructuring and related charges of $19 million associated with the Financial Fitness Program.

The following table reflects the pretax impact of restructuring and related charges in our Consolidated Condensed Statements of Income:



in millions
	Three Months Ended
	December 30, 2017
Cost of Sales	$	—
Selling, General and Administrative expenses	19
Total restructuring and related charges, pretax	$	19

The following table reflects the pretax impact of restructuring and related charges incurred in the first quarter of fiscal 2018, the program charges to date and the total estimated program charges, by our reportable segments:



					in millions
	Three Months Ended		Financial Fitness Program charges to date
	December 30, 2017		December 30, 2017		Total estimated Financial Fitness Program charges
Beef	$	1	$	9	$	13
Pork	1		4		6
Chicken	9		65		89
Prepared Foods	8		90		109
Other	—		1		1
Total restructuring and related charges, pretax	$	19	$	169	$	218

For the first quarter of fiscal 2018, the restructuring and related charges consisted of $3 million severance and employee related costs and $16 million technology related costs.

The following table reflects our liability related to restructuring charges which were recognized in other current liabilities in our Consolidated Condensed Balance Sheets as of December 30, 2017:



in millions
	Liability as of September 30, 2017		Restructuring charges		Payments		Other		Liability as of December 30, 2017
Severance and employee related costs	$	47	$	3	$	12	$	—	$	38
Contract termination	22		—		1		—		21
Total	$	69	$	3	$	13	$	—	$	59