Fiscal 2012 Productivity Initiatives

3 Months Ended

Jul. 29, 2012

Restructuring and Related Activities [Abstract]

Fiscal 2012 Productivity Initiatives

On May 26, 2011, the Company announced that it would invest in productivity initiatives during Fiscal 2012 designed to increase manufacturing effectiveness and efficiency as well as accelerate overall productivity on a global scale. During the first quarter of Fiscal 2012, the Company recorded costs of $40.5 million pre-tax ($28.4 million after-tax or $0.09 per share) related to these productivity initiatives, all of which were reported in the Non-Operating segment. These pre-tax costs were comprised of the following:

•$16.8 million relating to asset write-offs and accelerated depreciation for the closure of four factories, including two in Europe, one in the U.S. and one in Asia/Pacific,

•$14.9 million for severance and employee benefit costs relating to the reduction of the global workforce by approximately 160 positions, and

•$8.8 million associated with other implementation costs, primarily for professional fees and relocation costs for the establishment of the European supply chain hub.

Of the $40.5 million total pre-tax charges, $31.4 million was recorded in cost of products sold and $9.1 million in selling, general and administrative expenses (“SG&A”). Cash paid for productivity initiatives in the first quarter of Fiscal 2012 was $10.9 million.

The Company did not include productivity charges in the results of its reportable segments. The pre-tax impact of allocating such charges to segment results would have been as follows:



	First Quarter Ended
	July 27, 2011
	(In millions)
North American Consumer Products	$	0.8
Europe	7.3
Asia/Pacific	18.2
U.S. Foodservice	14.1
Rest of World	0.2
Total productivity charges	$	40.5
(Totals may not add due to rounding)

The amount included in other accrued liabilities related to productivity initiatives totaled $54.6 million at April 29, 2012, of which $35 million has been paid during the first quarter of Fiscal 2013 and the remainder is expected to be paid during this fiscal year.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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