RESTRUCTURING, IMPAIRMENT, AND OTHER EXIT COSTS

3 Months Ended

Aug. 25, 2019

Restructuring, Impairment, and Other Exit Costs [Abstract]

Restructuring, Impairment, and Other Exit Costs

(2) Restructuring, Impairment, and Other Exit Costs

Restructuring charges were as follows:

		Quarter Ended
In Millions		Aug. 25, 2019		Aug. 26, 2018
Charges (recoveries) associated with restructuring actions previously announced	$	14.3	$	(1.2)
Total	$	14.3	$	(1.2)

During the first quarter of fiscal 2020, we did not undertake any new restructuring actions. We recorded $14.3 million of restructuring charges for previously announced restructuring actions, compared to a $1.2 million net recovery of restructuring charges in the first quarter of fiscal 2019. The restructuring charges primarily relate to actions to drive efficiencies in targeted areas of our global supply chain. Certain global supply chain actions are subject to union negotiations and works counsel consultations, where required. We expect these actions to be completed by the end of fiscal 2022.

We spent $9.4 million of cash related to restructuring actions previously announced in the first quarter of fiscal 2020 compared to $17.7 million in the same period of fiscal 2019.

Restructuring and impairment charges and project-related costs are recorded in our Consolidated Statements of Earnings as follows:

		Quarter Ended
In Millions		Aug. 25, 2019		Aug. 26, 2018
Restructuring, impairment, and other exit costs (recoveries)	$	8.2	$	(1.4)
Cost of sales		6.1		0.2
Total restructuring charges (recoveries)		14.3		(1.2)
Project-related costs classified in cost of sales	$	-	$	1.2

The roll forward of our restructuring and other exit cost reserves, included in other current liabilities, is as follows:

In Millions
Reserve balance as of May 26, 2019	$	36.5
Fiscal 2020 charges, including foreign currency translation		2.7
Utilized in fiscal 2020		(5.8)
Reserve balance as of Aug. 25, 2019	$	33.4

The reserve balance primarily consists of expected severance payments associated with restructuring actions.

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, accelerated depreciation, the gain or loss on the sale of restructured assets, and the write-off of spare parts) and other periodic exit costs are recognized as incurred, as those items are not reflected in our restructuring and other exit cost reserves on our Consolidated Balance Sheets.