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Restructuring and Related Charges Restructuring and Related Charges
9 Months Ended
Jun. 30, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Related Charges
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 $253 million which consist primarily of severance and employee related costs, impairments and accelerated depreciation of technology assets, incremental costs to implement new technology, and contract termination costs. As part of this program, we anticipate eliminating approximately 550 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. For the three and nine months ended June 30, 2018, the Company recognized restructuring and related charges of $14 million and $45 million associated with the Financial Fitness Program, respectively.
The following table reflects the pretax impact of restructuring and related charges in our Consolidated Condensed Statements of Income:
in millions
 
 
Three Months Ended
 
Nine Months Ended
 
June 30, 2018
 
June 30, 2018
Cost of Sales
$

 
$

Selling, General and Administrative expenses
14

 
45

Total restructuring and related charges, pretax
$
14

 
$
45


The following table reflects the pretax impact of restructuring and related charges incurred in the three and nine months ended June 30, 2018, the program charges to date and the total estimated program charges, by our reportable segments:
 
in millions

 
Three Months Ended
Nine Months Ended
Financial Fitness Program charges to date
 
 
June 30, 2018
June 30, 2018
June 30, 2018
Total estimated Financial Fitness Program charges

Beef
$
1

$
3

$
11

$
18

Pork

1

4

7

Chicken
7

22

78

102

Prepared Foods
6

19

101

125

Other


1

1

Total restructuring and related charges, pretax
$
14

$
45

$
195

$
253


For the three and nine months ended June 30, 2018, the restructuring and related charges consisted of $0 million and $4 million of severance and employee related costs, respectively, and $14 million and $41 million of technology related costs, respectively. The majority of the remaining estimated charges are related to incremental costs to implement new technology and accelerated depreciation of technology assets.
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 June 30, 2018:
in millions

 
 
Liability as of September 30, 2017
Restructuring charges
Payments
Other
Liability as of June 30, 2018
Severance and employee related costs
$
47

$
4

$
32

$

$
19

Contract termination
22


20


2

Total
$
69

$
4

$
52

$

$
21