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Restructuring, impairment, and other exit costs
 12 Months Ended
May 29, 2022
Restructuring, impairment, and other exit costs [Abstract]  
Restructuring, impairment, and other exit costs
NOTE 4. RESTRUCTURING, IMPAIRMENT,
 
AND OTHER EXIT COSTS
 
We view
 
our restructuring activities as actions
 
that help us meet our long-term
 
growth targets and are evaluated
 
against internal rate of
return and net
 
present value targets.
 
Each restructuring
 
action normally takes
 
one to two
 
years to complete.
 
At completion (or
 
as each
major stage
 
is completed
 
in the
 
case of
 
multi-year programs),
 
the project
 
begins to
 
deliver cash
 
savings and/or
 
reduced depreciation.
These activities
 
result in
 
various restructuring
 
costs, including
 
asset write-offs,
 
exit charges
 
including severance,
 
contract termination
fees, and decommissioning
 
and other costs.
 
Accelerated depreciation
 
associated with restructured
 
assets, as used
 
in the context
 
of our
disclosures
 
regarding
 
restructuring
 
activity,
 
refers
 
to
 
the
 
increase
 
in
 
depreciation
 
expense
 
caused
 
by
 
shortening
 
the
 
useful
 
life
 
or
updating
 
the salvage
 
value
 
of depreciable
 
fixed
 
assets to
 
coincide
 
with the
 
end of
 
production
 
under an
 
approved
 
restructuring
 
plan.
Any impairment of the asset is recognized immediately in the period
 
the plan is approved.
Restructuring charges recorded in fiscal 2022 were
 
as follows:
Expense, in Millions
International manufacturing and logistics operations
$
15.0
Net recoveries associated with restructuring actions previously announced
(38.2)
Total net restructuring
 
recoveries
$
(23.2)
In
 
fiscal
 
2022,
 
we
 
approved
 
restructuring
 
actions
 
in
 
the
 
International
 
segment
 
to
 
drive
 
efficiencies
 
in
 
manufacturing
 
and
 
logistics
operations. We
 
expect to incur approximately
 
$
21
 
million of restructuring charges
 
and project-related costs
 
related to these actions,
 
of
which
 
approximately
 
$
12
 
million will
 
be cash.
 
These charges
 
are expected
 
to consist
 
of approximately
 
$
8
 
million
 
of severance
 
and
$
10
 
million of
 
other costs,
 
primarily
 
asset write-offs.
 
We
 
also expect
 
to incur
 
approximately $
3
 
million of
 
project-related costs.
 
We
recognized
 
$
7.9
 
million of
 
severance and
 
$
7.1
 
million of
 
other costs
 
in fiscal
 
2022. We
 
expect these
 
actions to
 
be completed
 
by the
end of
fiscal 2024
.
As a result
 
of shifts in
 
the composition
 
of estimated expenses
 
related to our
 
previously announced
 
global organizational
 
structure and
resource realignment actions, we recorded a $
34.0
 
million reduction to our restructuring reserves as of May 29,
 
2022, primarily related
to
 
estimated
 
severance
 
charges. We
 
expect
 
these
 
actions
 
to
 
incur
 
total
 
restructuring
 
charges
 
of
 
approximately
 
$
125
 
million
 
to
 
$
135
million,
 
of which
 
approximately $
100
 
million
 
to $
110
 
million will
 
be cash.
 
We
 
expect
 
approximately
 
$
100
 
million
 
to be
 
severance
and approximately $
30
 
million of other costs. We expect
 
these actions to be completed by the end of
fiscal 2023
.
Certain actions are subject to union negotiations and works counsel consultations,
 
where required.
We paid net
 
$
93.9
 
million of cash related to restructuring actions in fiscal 2022. We
 
paid net $
21.8
 
million of cash in fiscal 2021.
Restructuring charges recorded in fiscal 2021 were
 
as follows:
Fiscal Year
In Millions
2022
2021
2020
Restructuring, impairment, and other exit (recoveries) costs
$
(26.5)
$
170.4
$
24.4
Cost of sales
3.3
2.3
25.8
Total restructuring
 
and impairment (recoveries) charges
(23.2)
172.7
50.2
Project-related costs classified in cost of sales
$
-
$
-
$
1.5
Expense, in Millions
Global organizational structure and resource alignment
$
157.3
International route-to-market and supply chain optimization
13.0
Charges associated with restructuring actions previously
 
announced
2.4
Total restructuring
 
charges
$
172.7
In fiscal
 
2020, we
 
did not
 
undertake any
 
new restructuring
 
actions and
 
recorded $
50.2
 
million of
 
restructuring charges
 
for previously
announced restructuring actions.
Restructuring and impairment charges and project-related
 
costs are classified in our Consolidated Statements of Earnings as follows:
The roll forward of our restructuring and other exit cost reserves, included
 
in other current liabilities, is as follows:
In Millions
Severance
Contract
Termination
Other Exit
Costs
Total
Reserve balance as of May 26, 2019
$
36.5
$
-
$
-
$
36.5
Fiscal 2020 charges, including foreign currency translation
(5.0)
0.8
1.7
(2.5)
Utilized in fiscal 2020
(13.7)
(0.8)
(1.7)
(16.2)
Reserve balance as of May 31, 2020
17.8
-
-
17.8
Fiscal 2021 charges, including foreign currency translation
142.3
0.3
1.3
143.9
Utilized in fiscal 2021
(12.8)
(0.1)
-
(12.9)
Reserve balance as of May 30, 2021
147.3
0.2
1.3
148.8
Fiscal 2022 charges, including foreign currency translation
2.2
-
1.2
3.4
Reserve adjustment
(34.0)
-
-
(34.0)
Utilized in fiscal 2022
(80.1)
(0.2)
(1.1)
(81.4)
Reserve balance as of May 29, 2022
$
35.4
$
-
$
1.4
$
36.8
The charges
 
recognized in
 
the roll forward
 
of our reserves
 
for restructuring
 
and other exit
 
costs do not
 
include items
 
charged directly
to expense (e.g., asset impairment charges,
 
the gain or loss on the sale of restructured assets, and the
 
write-off of spare parts) and other
periodic
 
exit
 
costs
 
recognized
 
as
 
incurred,
 
as
 
those
 
items
 
are
 
not
 
reflected
 
in
 
our
 
restructuring
 
and
 
other
 
exit
 
cost
 
reserves
 
on
 
our
Consolidated Balance Sheets.