Note 3 - Restructuring Activities

6 Months Ended

Nov. 26, 2023

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

3. RESTRUCTURING ACTIVITIES

See our Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended  May 28, 2023 for additional information on our restructuring activities. 

Conagra Restructuring Plan

In fiscal 2019, senior management initiated a restructuring plan for costs incurred in connection with actions taken to improve SG&A expense effectiveness and efficiencies and to optimize our supply chain network (the "Conagra Restructuring Plan"). As of  November 26, 2023, we had approved the incurrence of $228.8 million ($69.5 million of cash charges and $159.3 million of non-cash charges) for several projects associated with the Conagra Restructuring Plan. In the second quarter and first half of fiscal 2024, we recognized charges of $3.6 million and $27.4 million, respectively, in connection with the Conagra Restructuring Plan. In the second quarter and first half of fiscal 2023, we recognized charges of $1.8 million and $5.9 million, respectively, in connection with the Conagra Restructuring Plan. We have recognized cumulative charges of $180.3 million since the inception of this plan through November 26, 2023. We expect to incur costs related to the Conagra Restructuring Plan over a multi-year period.

During the first half of fiscal 2024, we recognized the following pre-tax expenses for the Conagra Restructuring Plan:

	Grocery & Snacks		Refrigerated & Frozen		International		Corporate		Total
Accelerated depreciation	$	5.9	$	0.2	$	—	$	—	$	6.1
Other cost of goods sold		—		—		0.9		—		0.9
Total cost of goods sold		5.9		0.2		0.9		—		7.0
Severance and related costs		0.7		—		4.1		—		4.8
Asset impairment		0.6		—		14.1		—		14.7
Consulting/professional fees		0.2		—		—		—		0.2
Other SG&A		—		0.6		—		0.1		0.7
Total SG&A		1.5		0.6		18.2		0.1		20.4
Total	$	7.4	$	0.8	$	19.1	$	0.1	$	27.4

Included in the above results are $5.7 million of charges that have resulted or will result in cash outflows and $21.7 million in non-cash charges.

Liabilities recorded for the Conagra Restructuring Plan and changes therein for the first half of fiscal 2024 were as follows:

	Balance at May 28, 2023		Costs Incurred and Charged to Expense		Costs Paid or Otherwise Settled			Balance at November 26, 2023
Severance and related costs	$	1.7	$	4.8	$	(1.3	)	$	5.2
Consulting/professional fees		0.2		0.2		(0.3	)		0.1
Other costs		—		0.7		(0.7	)		—
Total	$	1.9	$	5.7	$	(2.3	)	$	5.3