RESTRUCTURING-RELATED ACTIVITIES

12 Months Ended

Dec. 25, 2022

Restructuring and Related Activities [Abstract]

In 2022, the Company initiated a restructuring initiative to phase out and reduce processing volumes at multiple production facilities throughout the U.K. and Europe reportable segment. Implementation of this initiative is expected to result in total pre-tax charges of approximately $58.0 million, and approximately $53.0 million of these charges are estimated to result in cash outlays. These activities were initiated in the fourth quarter of 2022 and are expected to be substantially completed by the end of the second quarter of 2023.

The following table provides a summary of our estimates of costs associated with these restructuring initiatives by major type of cost:


Type of Cost	Moy Park		Pilgrim’s Pride Ltd.		Pilgrim’s Food Masters		Total Estimated Amount Expected to be Incurred
	(In thousands)
Contract termination	$	9,437	$	833	$	2,170	$	12,440
Asset impairment	3,559		—		—		3,559
Severance	8,244		6,160		5,303		19,707
Employee retention benefits	1,398		276		—		1,674
Other employee costs	301		181		121		603
Lease termination	458		642		1,808		2,908
Inventory adjustment	470		615		—		1,085
Other charges (a)	7,543		1,386		7,110		16,039
Total estimated costs, net	$	31,410	$	10,093	$	16,512	$	58,015

(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, Pilgrim’s Pride Ltd. prepayment balances and maintenance contracts exit costs and Pilgrim’s Pride Ltd. consulting fees.

During 2022, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:


	Expenses		Cash Outlays
	(In thousands)
Moy Park	$	19,325	$	10,526
Pilgrim’s Pride Ltd.	10,140		2,590
Pilgrim’s Food Masters	1,001		341
	$	30,466	$	13,457

These expenses are reported in the line item Restructuring activities on the Consolidated Statements of Income.

The following table reconciles liabilities and reserves associated with each restructuring initiative from initiative inception to December 25, 2022. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Consolidated Balance Sheets. The ending reserve balance for inventory impairments is reported in the line item Inventories in our Consolidated Balance Sheets.