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RESTRUCTURING ACTIVITIES (Tables)
3 Months Ended
Aug. 25, 2019
Pinnacle Integration Restructuring Plan  
Schedule of Pre-Tax Expenses in Association with the Restructuring Plan

We anticipate that we will recognize the following pre-tax expenses in association with the Pinnacle Integration Restructuring Plan (amounts include charges recognized from plan inception through the first quarter of fiscal 2020):

 

 

 

Grocery & Snacks

 

 

Refrigerated & Frozen

 

 

International

 

 

Corporate

 

 

Total

 

Accelerated depreciation

 

$

 

 

$

0.6

 

 

$

 

 

$

 

 

$

0.6

 

Other cost of goods sold

 

 

1.6

 

 

 

3.5

 

 

 

0.7

 

 

 

 

 

 

5.8

 

Total cost of goods sold

 

 

1.6

 

 

 

4.1

 

 

 

0.7

 

 

 

 

 

 

6.4

 

Severance and related costs

 

 

 

 

 

 

 

 

1.5

 

 

 

116.6

 

 

 

118.1

 

Asset impairment (net of gains on disposal)

 

 

0.2

 

 

 

 

 

 

 

 

 

3.6

 

 

 

3.8

 

Accelerated depreciation

 

 

 

 

 

 

 

 

 

 

 

8.2

 

 

 

8.2

 

Contract/lease termination

 

 

 

 

 

 

 

 

0.7

 

 

 

16.3

 

 

 

17.0

 

Consulting/professional fees

 

 

 

 

 

 

 

 

0.5

 

 

 

92.8

 

 

 

93.3

 

Other selling, general and administrative expenses

 

 

 

 

 

 

 

 

0.1

 

 

 

14.0

 

 

 

14.1

 

Total selling, general and administrative expenses

 

 

0.2

 

 

 

 

 

 

2.8

 

 

 

251.5

 

 

 

254.5

 

Consolidated total

 

$

1.8

 

 

$

4.1

 

 

$

3.5

 

 

$

251.5

 

 

$

260.9

 

During the first quarter of fiscal 2020, we recognized the following pre-tax expenses for the Pinnacle Integration Restructuring Plan:

 

 

 

Grocery & Snacks

 

 

Refrigerated & Frozen

 

 

International

 

 

Corporate

 

 

Total

 

Accelerated depreciation

 

$

 

 

$

0.1

 

 

$

 

 

$

 

 

$

0.1

 

Other cost of goods sold

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

0.1

 

Total cost of goods sold

 

 

0.1

 

 

 

0.1

 

 

 

 

 

 

 

 

 

0.2

 

Severance and related costs

 

 

 

 

 

 

 

 

0.2

 

 

 

3.7

 

 

 

3.9

 

Asset impairment (net of gains on disposal)

 

 

0.2

 

 

 

 

 

 

 

 

 

3.6

 

 

 

3.8

 

Accelerated depreciation

 

 

 

 

 

 

 

 

 

 

 

1.8

 

 

 

1.8

 

Contract/lease termination

 

 

 

 

 

 

 

 

(0.1

)

 

 

7.7

 

 

 

7.6

 

Consulting/professional fees

 

 

 

 

 

 

 

 

0.3

 

 

 

7.4

 

 

 

7.7

 

Other selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

2.7

 

 

 

2.7

 

Total selling, general and administrative expenses

 

 

0.2

 

 

 

 

 

 

0.4

 

 

 

26.9

 

 

 

27.5

 

Consolidated total

 

$

0.3

 

 

$

0.1

 

 

$

0.4

 

 

$

26.9

 

 

$

27.7

 

Included in the above results are $25.5 million of charges that have resulted or will result in cash outflows and $2.2 million in non-cash charges.

We recognized the following cumulative (plan inception to August 25, 2019) pre-tax expenses for the Pinnacle Integration Restructuring Plan related to our continuing operations in our Condensed Consolidated Statement of Operations:

 

 

 

Grocery & Snacks

 

 

Refrigerated & Frozen

 

 

International

 

 

Corporate

 

 

Total

 

Accelerated depreciation

 

$

 

 

$

0.1

 

 

$

 

 

$

 

 

$

0.1

 

Other cost of goods sold

 

 

1.6

 

 

 

1.5

 

 

 

0.7

 

 

 

 

 

 

3.8

 

Total cost of goods sold

 

 

1.6

 

 

 

1.6

 

 

 

0.7

 

 

 

 

 

 

3.9

 

Severance and related costs

 

 

 

 

 

 

 

 

1.5

 

 

 

114.5

 

 

 

116.0

 

Asset impairment (net of gains on disposal)

 

 

0.2

 

 

 

 

 

 

 

 

 

3.6

 

 

 

3.8

 

Accelerated depreciation

 

 

 

 

 

 

 

 

 

 

 

6.5

 

 

 

6.5

 

Contract/lease termination

 

 

 

 

 

 

 

 

0.7

 

 

 

8.0

 

 

 

8.7

 

Consulting/professional fees

 

 

 

 

 

 

 

 

0.5

 

 

 

45.5

 

 

 

46.0

 

Other selling, general and administrative expenses

 

 

 

 

 

 

 

 

0.1

 

 

 

10.9

 

 

 

11.0

 

Total selling, general and administrative expenses

 

 

0.2

 

 

 

 

 

 

2.8

 

 

 

189.0

 

 

 

192.0

 

Consolidated total

 

$

1.8

 

 

$

1.6

 

 

$

3.5

 

 

$

189.0

 

 

$

195.9

 

 

Schedule of Liabilities Recorded for the Restructuring Plan

Liabilities recorded for the Pinnacle Integration Restructuring Plan and changes therein for the first quarter of fiscal 2020 were as follows:

 

 

 

Balance at

May 26,

2019

 

 

Costs Incurred

and Charged

to Expense

 

 

Costs Paid

or Otherwise

Settled

 

 

Changes in

Estimates

 

 

Balance at

August 25,

2019

 

Severance and related costs

 

$

76.9

 

 

$

3.9

 

 

$

(23.7

)

 

$

 

 

$

57.1

 

Contract termination

 

 

1.0

 

 

 

3.0

 

 

 

(1.0

)

 

 

 

 

 

3.0

 

Consulting/professional fees

 

 

18.4

 

 

 

7.7

 

 

 

(14.7

)

 

 

 

 

 

11.4

 

Other costs

 

 

1.2

 

 

 

2.7

 

 

 

(2.5

)

 

 

 

 

 

1.4

 

Total

 

$

97.5

 

 

$

17.3

 

 

$

(41.9

)

 

$

 

 

$

72.9

 

 

Conagra Restructuring Plan  
Schedule of Pre-Tax Expenses in Association with the Restructuring Plan

We anticipate that we will recognize the following pre-tax expenses in association with the Conagra Restructuring Plan (amounts include charges recognized from plan inception through the first quarter of fiscal 2020):

 

 

 

Grocery & Snacks

 

 

Refrigerated & Frozen

 

 

International

 

 

Corporate

 

 

Total

 

Accelerated depreciation

 

$

47.5

 

 

$

1.7

 

 

$

 

 

$

 

 

$

49.2

 

Other cost of goods sold

 

 

9.0

 

 

 

0.1

 

 

 

 

 

 

 

 

 

9.1

 

Total cost of goods sold

 

 

56.5

 

 

 

1.8

 

 

 

 

 

 

 

 

 

58.3

 

Severance and related costs

 

 

11.1

 

 

 

0.6

 

 

 

1.8

 

 

 

0.2

 

 

 

13.7

 

Asset impairment (net of gains on disposal)

 

 

11.9

 

 

 

 

 

 

 

 

 

 

 

 

11.9

 

Contract/lease termination

 

 

0.2

 

 

 

 

 

 

 

 

 

0.1

 

 

 

0.3

 

Other selling, general and administrative expenses

 

 

12.3

 

 

 

1.3

 

 

 

 

 

 

 

 

 

13.6

 

Total selling, general and administrative expenses

 

 

35.5

 

 

 

1.9

 

 

 

1.8

 

 

 

0.3

 

 

 

39.5

 

Total

 

$

92.0

 

 

$

3.7

 

 

$

1.8

 

 

$

0.3

 

 

$

97.8

 

Pension and postretirement non-service income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.6

 

Consolidated total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

98.4

 

During the first quarter of fiscal 2020, we recognized the following pre-tax expenses for the Conagra Restructuring Plan:

 

 

 

Grocery & Snacks

 

 

Refrigerated & Frozen

 

 

International

 

 

Corporate

 

 

Total

 

Accelerated depreciation

 

$

3.9

 

 

$

0.4

 

 

$

 

 

$

 

 

$

4.3

 

Total cost of goods sold

 

 

3.9

 

 

 

0.4

 

 

 

 

 

 

 

 

 

4.3

 

Severance and related costs

 

 

3.0

 

 

 

0.1

 

 

 

0.9

 

 

 

 

 

 

4.0

 

Asset impairment (net of gains on disposal)

 

 

11.9

 

 

 

 

 

 

 

 

 

 

 

 

11.9

 

Contract/lease termination

 

 

 

 

 

 

 

 

 

 

 

0.1

 

 

 

0.1

 

Other selling, general and administrative expenses

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

0.2

 

Total selling, general and administrative expenses

 

 

15.1

 

 

 

0.1

 

 

 

0.9

 

 

 

0.1

 

 

 

16.2

 

Total

 

$

19.0

 

 

$

0.5

 

 

$

0.9

 

 

$

0.1

 

 

$

20.5

 

Pension and postretirement non-service income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.6

 

Consolidated total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

21.1

 

Included in the above results are $4.9 million of charges that have resulted or will result in cash outflows and $16.2 million in non-cash charges.

We recognized the following cumulative (plan inception to August 25, 2019) pre-tax expenses for the Conagra Restructuring Plan related to our continuing operations in our Condensed Consolidated Statement of Operations:

 

 

 

Grocery & Snacks

 

 

Refrigerated & Frozen

 

 

International

 

 

Corporate

 

 

Total

 

Accelerated depreciation

 

$

3.9

 

 

$

1.2

 

 

$

 

 

$

 

 

$

5.1

 

Total cost of goods sold

 

 

3.9

 

 

 

1.2

 

 

 

 

 

 

 

 

 

5.1

 

Severance and related costs

 

 

3.0

 

 

 

0.6

 

 

 

1.6

 

 

 

0.2

 

 

 

5.4

 

Asset impairment (net of gains on disposal)

 

 

11.9

 

 

 

 

 

 

 

 

 

 

 

 

11.9

 

Contract/lease termination

 

 

 

 

 

 

 

 

 

 

 

0.1

 

 

 

0.1

 

Other selling, general and administrative expenses

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

0.2

 

Total selling, general and administrative expenses

 

 

15.1

 

 

 

0.6

 

 

 

1.6

 

 

 

0.3

 

 

 

17.6

 

Total

 

$

19.0

 

 

$

1.8

 

 

$

1.6

 

 

$

0.3

 

 

$

22.7

 

Pension and postretirement non-service income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.6

 

Consolidated total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

23.3

 

Schedule of Liabilities Recorded for the Restructuring Plan

Liabilities recorded for the Conagra Restructuring Plan and changes therein for the first quarter of fiscal 2020 were as follows:

 

 

 

Balance at

May 26,

2019

 

 

Costs Incurred

and Charged

to Expense

 

 

Costs Paid

or Otherwise

Settled

 

 

Changes in

Estimates

 

 

Balance at

August 25,

2019

 

Severance and related costs

 

$

1.2

 

 

$

4.1

 

 

$

(0.1

)

 

$

(0.1

)

 

$

5.1

 

Contract termination

 

 

 

 

 

0.1

 

 

 

(0.1

)

 

 

 

 

 

 

Other costs

 

 

 

 

 

0.2

 

 

 

(0.2

)

 

 

 

 

 

 

Total

 

$

1.2

 

 

$

4.4

 

 

$

(0.4

)

 

$

(0.1

)

 

$

5.1