Restructuring Costs

9 Months Ended

Jan. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring costs primarily consist of employee-related costs and other transition and termination costs related to approved 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 impacted employees, and relocation costs are expensed as incurred. Other transition and termination costs include fixed asset-related charges, contract and lease termination costs, professional fees, and other miscellaneous expenditures associated with the restructuring activities. With the exception of accelerated depreciation, these costs are expensed as incurred. These restructuring costs are reported in cost of products sold and other special project costs in the Condensed Statements of Consolidated Income and are not allocated to segment profit. The obligation related to employee separation costs is included in other current liabilities in the Condensed Consolidated Balance Sheets.

A restructuring program was approved by the Board during 2021 associated with opportunities identified to reduce our overall cost structure, optimize our organizational design, and support our portfolio reshape. This is inclusive of certain restructuring costs associated with the divestitures of the Crisco®, Natural Balance®, private label dry pet food, and natural beverage and grains businesses. For additional information related to the divestitures, see Note 4: Divestitures.

During 2021, we substantially completed an organizational redesign related to our corporate headquarters and announced plans to close our Suffolk, Virginia, facility as a result of a new strategic partnership for the production of our liquid coffee products. During 2022, we completed the transition of production to JDE Peet’s N.V. Furthermore, the restructuring program was expanded during the third quarter of 2022 to include certain costs associated with the divestitures of the private label dry pet food and natural beverage and grains businesses, as well as the closure of our Ripon, Wisconsin, production facility to further optimize operations for our U.S. Retail Consumer Foods business. We completed the closure of the Ripon facility during the third quarter of 2023, as planned, and anticipate the remaining restructuring activities will be completed by the end of 2023. We expect to incur total costs of approximately $65.0 associated with the restructuring activities, of which more than half of these costs are expected to be other transition and termination costs associated with our cost reduction and margin management initiatives, inclusive of accelerated depreciation. The remaining costs represent employee-related costs.

The following table summarizes our restructuring costs incurred related to the restructuring program.


	Three Months Ended January 31,				Nine Months Ended January 31,				Total Costs Incurred to Date at January 31, 2023
	2023		2022		2023		2022
Employee-related costs	$	0.3	$	1.4	$	2.1	$	3.8	$	25.7
Other transition and termination costs	1.3		7.4		5.5		18.8		34.5
Total restructuring costs	$	1.6	$	8.8	$	7.6	$	22.6	$	60.2

The obligation related to severance costs and retention bonuses was $0.5 and $2.4 at January 31, 2023, and April 30, 2022, respectively. Noncash charges of $3.2 and $6.7 were included in the restructuring costs during the three months ended January 31, 2023 and 2022, respectively, and $10.2 and $15.9 during the nine months ended January 31, 2023 and 2022, respectively. As of January 31, 2023, cumulative noncash charges incurred to date were $33.2 and primarily consisted of accelerated depreciation.