Subsequent Event

6 Months Ended

Jun. 29, 2019

Subsequent Events [Abstract]

Subsequent Event [Text Block]

Subsequent events

On July 24, 2019, the Company announced a tender offer to purchase for cash any and all of the $$500 million 4.15% Senior Notes due November 2019, plus up to $500 million of aggregate principal of its 4.0% Senior Notes due December 2020, 3.25% Senior Notes due May 2021, 2.65% Senior Notes due May 2023, and 3.4% Senior Notes due November 2027.

On July 28, 2019, the Company completed its sale of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses to Ferrero for approximately $1.3 billion in cash, subject to a working capital adjustment mechanism.  Both the total assets and net assets of the businesses, including a targeted working capital amount is estimated to be approximately $1.3 billion, and resulted in an immaterial pre-tax gain upon closing. After-tax proceeds from the divestiture are expected to be utilized to repay debt.

In conjunction with the completion of the sale, the Company incurred closing costs of approximately $15 million in the third quarter and expects to incur a cash tax liability of approximately $260 million to be paid in the fourth quarter of 2019.

Subsequent to quarter end, the Company is no longer obligated to contribute to certain multi-employer pension plans and it is probable it will incur a withdrawal liability estimated at $110 million related to its exit from these plans. This amount represents management's best estimate. Actual results could differ. The cash obligation is payable over a maximum period of 20 years; management has not determined the actual period over which payments will be made.