Fiscal 2014 Restructuring and Productivity Initiatives

During Fiscal 2014, the Company is investing in restructuring and productivity initiatives as part of its ongoing cost reduction efforts with the goal of driving efficiencies and creating fiscal resources that will be reinvested into the Company's business as well as to accelerate overall productivity on a global scale. As of October 27, 2013, these initiatives have resulted in the reduction of approximately 2,000 corporate and field positions across the Company's global business segments as well as the closure and consolidation of manufacturing and corporate office facilities.

The Company recorded pre-tax costs related to these initiatives of $198.7 million in the three months ended October 27, 2013 (the Three Month Successor period), $201.0 million in the Successor period from February 8, 2013 to October 27, 2013 (the Year-to-Date Successor period), and $6.0 million in the Predecessor period, which were recorded in the Non-Operating segment. These pre-tax restructuring and productivity initiatives were comprised of the following:


•	$150.7 million for the Three Month Successor period and $153.0 million for the Year-to-Date Successor period for severance and employee benefit costs relating to the reduction of corporate and field positions across the Company.


•	$40.6 million for the Three Month Successor period and Year-to-Date Successor period associated with other implementation costs, primarily for professional fees, and contract and lease termination costs.


•	$7.4 million for the Three Month Successor period and Year-to-Date Successor period, and $6.0 million for the Predecessor period relating to asset write-downs and accelerated depreciation for the closure of corporate offices and a factory in China and the reduction of manufacturing capacity of a factory in the U.K.

Of the $198.7 million total pre-tax charges for the three months ended October 27, 2013, $38.9 million was recorded in Cost of products sold and $159.8 million in Selling, general and administrative expenses ("SG&A"). Of the $201.0 million total pre-tax charges in the Year-to-Date Successor period, $40.9 million was recorded in Cost of products sold and $160.1 million in SG&A.

The Company does not include productivity charges in the results of its reportable segments. The pre-tax impact of allocating such charges to segment results would have been as follows:



	Successor				Predecessor
	Three months ended October 27, 2013		February 8 - October 27, 2013		April 29 - June 7, 2013
	(In millions)
North American Consumer Products	$	43.7	$	43.7	$	—
Europe	63.8		63.8		3.6
Asia/Pacific	7.2		9.5		2.4
U.S. Foodservice	21.8		21.8		—
Rest of World	17.5		17.5		—
Non-Operating	44.7		44.7		—
Total productivity charges	$	198.7	$	201.0	$	6.0

On November 14, 2013, the Company announced the planned closure and consolidation of 3 factories in the U.S. and Canada by the middle of calendar year 2014. The number of employees expected to be impacted by these 3 plant closures and consolidation is approximately 1,350. The Company currently estimates it will incur total charges of approximately $63 million related to severance benefits and other severance-related expenses related to these factory closures. In addition the Company will recognize accelerated depreciation on assets to be disposed of.

The severance-related charges that the Company expects to incur in connection with these factory workforce reductions and factory closures are subject to a number of assumptions and may differ from actual results. The Company may also incur other charges not currently contemplated due to events that may occur as a result of, or related to, these cost reductions.

Activity in other accrued liability balances for restructuring and productivity charges incurred by the Successor were as follows:



	Severance and other severance related costs		Other exit costs (a)		Total
	(In millions)
Fiscal 2014 restructuring and productivity initiatives	$	153.0	$	40.6	$	193.6
Cash payments	38.0		10.5		48.5
Accrual balance at October 27, 2013	$	115.0	$	30.1	$	145.1

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(a) Other exit costs primarily represent professional fees, and contract and lease termination costs.