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Restructuring, Impairment, And Other Exit Costs
 6 Months Ended
Nov. 26, 2023
Restructuring, Impairment, And Other Exit Costs [Abstract]  
Restructuring, Impairment, And Other Exit Costs
 
 
 
 
 
 
In Millions
Total
Reserve balance as of May 28, 2023
$
47.7
Fiscal 2024 charges, including foreign currency translation
1.7
Utilized in fiscal 2024
(16.3)
Reserve balance as of Nov. 26, 2023
$
33.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
Six-Month Period Ended
In Millions
Nov. 26, 2023
Nov. 27, 2022
Nov. 26, 2023
Nov. 27, 2022
Restructuring, impairment, and other exit costs
$
123.6
$
11.1
$
124.8
$
12.7
Cost of sales
8.3
0.5
16.9
1.2
Total restructuring
 
and impairment charges
$
131.9
$
11.6
$
141.7
$
13.9
Project-related costs classified in cost of sales
$
0.3
$
-
$
1.1
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
Six-Month Period Ended
In Millions
Nov. 26, 2023
Nov. 27, 2022
Nov. 26, 2023
Nov. 27, 2022
Goodwill impairment
$
117.1
$
-
$
117.1
$
-
Commercial strategy action
5.1
-
5.1
-
Charges associated with restructuring actions
 
previously announced
9.7
11.6
19.5
13.9
Total
 
$
131.9
$
11.6
$
141.7
$
13.9
 
(3) Restructuring, Impairment, and Other Exit Costs
Restructuring and impairment charges were as follows:
In the second
 
quarter of fiscal
 
2024, we recorded
 
a $
117.1
 
million non-cash goodwill
 
impairment charge
 
related to our Latin
 
America
reporting unit.
 
Please see Note 4 for additional information.
In
 
the
 
second
 
quarter
 
of
 
fiscal
 
2024,
 
we
 
approved
 
a
 
restructuring
 
action
 
to
 
enhance
 
the
 
go-to-market
 
commercial
 
strategy
 
and
associated
 
organizational
 
structure
 
of
 
our
 
Pet
 
segment.
 
We
 
expect
 
to
 
incur
 
approximately
 
$
22
 
million
 
of
 
restructuring
 
charges
 
and
project-related expenses
 
related to
 
this action,
 
of which
 
approximately $
4
 
million will
 
be cash.
 
These charges
 
are expected
 
to consist
of
 
approximately
 
$
16
 
million
 
of
 
accelerated
 
depreciation
 
and
 
$
6
 
million
 
of
 
other
 
costs,
 
including
 
severance.
 
We
 
recognized
 
$
2.4
million of
 
accelerated depreciation
 
and $
2.7
 
million of other
 
costs, including
 
severance, in the
 
six-month period
 
ended November 26,
2023. We expect
 
this action to be completed by the end of fiscal 2026.
 
In
 
the
 
second
 
quarter
 
of
 
fiscal
 
2024,
 
we
 
increased
 
the
 
estimate
 
of
 
restructuring
 
charges
 
that
 
we
 
expect
 
to
 
incur
 
related
 
to
 
our
previously announced
 
actions in the
 
International segment
 
to drive efficiencies
 
in manufacturing
 
and logistics operations.
 
As a result,
we
 
expect
 
to
 
incur
 
an
 
additional
 
$
11
 
million
 
of
 
restructuring
 
charges,
 
primarily
 
related
 
to
 
$
4
 
million
 
of
 
fixed
 
asset
 
impairments
recorded in the second quarter of fiscal 2024 and $
4
 
million of accelerated depreciation. We
 
expect to incur approximately $
36
 
million
of
 
restructuring
 
charges
 
and
 
project-related
 
costs,
 
of
 
which
 
approximately
 
$
18
 
million
 
will
 
be
 
cash.
 
These
 
charges
 
are
 
expected
 
to
consist of
 
approximately $
12
 
million of
 
severance and
 
$
24
 
million of
 
other costs,
 
primarily asset
 
write-offs. We
 
expect these
 
actions
to be completed by the end of fiscal 2025.
We recorded
 
$
9.7
 
million of restructuring charges in the second
 
quarter of fiscal 2024 and $
19.5
 
million of restructuring charges in the
six-month
 
period
 
ended
 
November
 
26,
 
2023,
 
related
 
to
 
restructuring
 
actions
 
previously
 
announced.
 
We
 
recorded
 
$
11.6
 
million
 
of
restructuring
 
charges
 
in
 
the
 
second
 
quarter
 
of
 
fiscal
 
2023
 
and
 
$
13.9
 
million
 
of
 
restructuring
 
charges
 
in
 
the
 
six-month
 
period
 
ended
November
 
27,
 
2022,
 
related
 
to
 
restructuring
 
actions
 
previously
 
announced.
 
We
 
expect
 
these
 
actions
 
to
 
be
 
completed
 
by
 
the
 
end
 
of
fiscal 2025.
We
 
paid
 
net
 
$
18.6
 
million
 
of cash
 
in
 
the
 
six-month
 
period ended
 
November
 
26,
 
2023,
 
related
 
to
 
restructuring
 
actions.
 
We
 
paid
 
net
$
27.6
 
million of cash in the same period of fiscal 2023.
Restructuring and impairment charges and project-related
 
costs are recorded in our Consolidated Statements of Earnings as follows:
The roll forward of our restructuring and other exit cost reserves, included
 
in other current liabilities, is as follows:
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.