Integration and Restructuring Costs

Integration and restructuring costs primarily consist of employee-related costs, outside service and consulting costs, and other costs related to certain acquisition or restructuring activities. Employee-related costs include severance, retention bonuses, and relocation costs. Severance costs and retention bonuses are recognized over the estimated future service period of the affected employees, and relocation costs are expensed as incurred. Other costs include professional fees, information systems costs, and other miscellaneous expenditures associated with the integration or restructuring activities, which are expensed as incurred. These one-time costs are not allocated to segment profit, and the majority of these costs are reported in other special project costs in the Condensed Statements of Consolidated Income. The obligation related to employee separation costs is included in other current liabilities in the Condensed Consolidated Balance Sheets.

Integration Costs: Total one-time costs related to the acquisition of Big Heart Pet Brands (“Big Heart”) are anticipated to be approximately $290.0, and will be incurred through 2018. Of the total anticipated one-time costs, we expect to incur $100.0, $120.0, and $70.0 in employee-related costs, outside service and consulting costs, and other costs, respectively.

The following table summarizes our one-time costs incurred related to the Big Heart acquisition.



	Three Months Ended October 31,				Six Months Ended October 31,				Total Costs Incurred to Date at October 31, 2017
	2017		2016		2017		2016		Total Costs Incurred to Date at October 31, 2017
Employee-related costs	$	2.5	$	6.3	$	6.2	$	13.2	$	88.3
Outside service and consulting costs	1.7		12.3		7.5		18.4		113.5
Other costs	3.6		4.0		5.2		11.2		62.4
Total one-time costs	$	7.8	$	22.6	$	18.9	$	42.8	$	264.2

Noncash charges of $1.2 and $2.5 were included in the one-time costs incurred during the three and six months ended October 31, 2017, respectively, and $1.4 and $7.0 during the three and six months ended October 31, 2016, respectively. Noncash charges included in total one-time costs incurred to date were $30.3, which primarily consisted of share-based compensation and accelerated depreciation. The obligation related to severance costs and retention bonuses was $0.5 and $5.3 at October 31, 2017 and April 30, 2017, respectively.

Restructuring Costs: An organization optimization program was approved by the Board of Directors during the fourth quarter of 2016. Under this program, we identified opportunities to reduce costs and optimize the organization, which we expect to achieve by the end of 2018. Related projects include an organizational redesign and the optimization of our manufacturing footprint. During 2017, we exited two leased facilities in Livermore, California, and consolidated all ancient grains and pasta production into our facility in Chico, California. The consolidation of all coffee production at our Harahan, Louisiana, facility into one of our facilities in New Orleans, Louisiana, was nearly complete at the end of the second quarter of 2018. Upon completion of these initiatives, the organization optimization program will result in total headcount reductions of approximately 275 full-time positions, of which approximately 90 percent were reduced as of October 31, 2017.

Upon completion of this program in 2018, total restructuring costs are expected to be approximately $45.0, of which the majority represents employee-related costs, while the remainder primarily consists of site preparation, equipment relocation, and production start-up costs at the impacted facilities.

The following table summarizes our one-time costs incurred related to the organization optimization program.



	Three Months Ended October 31,				Six Months Ended October 31,				Total Costs Incurred to Date at October 31, 2017
	2017		2016		2017		2016		Total Costs Incurred to Date at October 31, 2017
Employee-related costs	$	1.2	$	3.3	$	11.6	$	7.3	$	25.3
Outside service and consulting costs	0.1		0.6		0.2		1.7		2.0
Other costs	1.5		0.4		7.7		1.3		12.1
Total one-time costs	$	2.8	$	4.3	$	19.5	$	10.3	$	39.4

Noncash charges of $0.8 and $6.9 were included in the one-time costs incurred during the three and six months ended October 31, 2017, respectively, and $0.1 and $1.0 during the three and six months ended October 31, 2016, respectively. Noncash charges included in total one-time costs incurred to date were $9.0, and primarily consisted of accelerated depreciation. The obligation related to severance costs and retention bonuses was $3.3 at both October 31, 2017 and April 30, 2017.