Note 3 - Restructuring Activities

9 Months Ended

Feb. 25, 2024

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  February 25, 2024, 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 third quarter and first three quarters of fiscal 2024, we recognized charges of $1.5 million and $28.9 million, respectively, in connection with the Conagra Restructuring Plan. In the third quarter and first three quarters of fiscal 2023, we recognized charges of $1.6 million and $7.5 million, respectively, in connection with the Conagra Restructuring Plan. We have recognized cumulative charges of $181.8 million since the inception of this plan through February 25, 2024. We expect to incur costs related to the Conagra Restructuring Plan over a multi-year period.

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

	Grocery & Snacks		Refrigerated & Frozen		International		Corporate		Total
Accelerated depreciation	$	6.0	$	0.2	$	—	$	—	$	6.2
Other cost of goods sold		—		—		1.8		—		1.8
Total cost of goods sold		6.0		0.2		1.8		—		8.0
Severance and related costs		0.7		—		4.3		—		5.0
Asset impairment		0.6		—		14.1		—		14.7
Consulting/professional fees		0.2		0.1		—		—		0.3
Other SG&A		—		0.8		—		0.1		0.9
Total SG&A		1.5		0.9		18.4		0.1		20.9
Total	$	7.5	$	1.1	$	20.2	$	0.1	$	28.9

Included in the above results are $6.2 million of charges that have resulted or will result in cash outflows and $22.7 million in non-cash charges.

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

	Balance at May 28, 2023		Costs Incurred and Charged to Expense		Costs Paid or Otherwise Settled			Changes in Estimates		Balance at February 25, 2024
Severance and related costs	$	1.7	$	4.9	$	(1.8	)	$	0.1	$	4.9
Consulting/professional fees		0.2		0.3		(0.5	)		—		—
Other costs		—		0.9		(0.9	)		—		—
Total	$	1.9	$	6.1	$	(3.2	)	$	0.1	$	4.9