Note 2 - Restructuring Activities

3 Months Ended

Aug. 27, 2023

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

2. RESTRUCTURING ACTIVITIES

See our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended  May 28, 2023 for additional information on our restructuring activities. 

Conagra Restructuring Plan

In fiscal 2019, senior management initiated a restructuring plan for costs incurred in connection with actions taken to improve selling, general and administrative ("SG&A") expense effectiveness and efficiencies and to optimize our supply chain network (the "Conagra Restructuring Plan"). As of  August 27, 2023, we have approved the incurrence of $228.5 million ($69.2 million of cash charges and $159.3 million of non-cash charges) for several projects associated with the Conagra Restructuring Plan. In the first quarter of fiscal 2024 and 2023, we recognized charges of $23.8 million and $4.1 million, respectively, in connection with the Conagra Restructuring Plan. We have recognized cumulative charges of $176.7 million since the inception of this plan through August 27, 2023. We expect to incur costs related to the Conagra Restructuring Plan over a multi-year period.

During the first quarter of fiscal 2024, we recognized the following pre-tax expenses for the Conagra Restructuring Plan:

	Grocery & Snacks		Refrigerated & Frozen		International		Corporate		Total
Accelerated depreciation	$	3.2	$	0.1	$	—	$	—	$	3.3
Other cost of goods sold		—		—		0.9		—		0.9
Total cost of goods sold		3.2		0.1		0.9		—		4.2
Severance and related costs		0.7		—		3.6		—		4.3
Asset impairment		0.6		—		14.1		—		14.7
Consulting/professional fees		0.2		—		—		—		0.2
Other SG&A		—		0.3		—		0.1		0.4
Total SG&A		1.5		0.3		17.7		0.1		19.6
Total	$	4.7	$	0.4	$	18.6	$	0.1	$	23.8

Included in the above results are $4.9 million of charges that have resulted or will result in cash outflows and $18.9 million in non-cash charges.

Liabilities recorded for the Conagra Restructuring Plan and changes therein for the first quarter of fiscal 2024 were as follows:

	Balance at May 28, 2023		Costs Incurred and Charged to Expense		Costs Paid or Otherwise Settled			Changes in Estimates			Balance at August 27, 2023
Severance and related costs	$	1.7	$	4.4	$	(0.3	)	$	(0.1	)	$	5.7
Consulting/professional fees		0.2		0.2		(0.3	)		—			0.1
Other costs		—		0.4		(0.4	)		—			—
Total	$	1.9	$	5.0	$	(1.0	)	$	(0.1	)	$	5.8