RESTRUCTURING-RELATED ACTIVITIES (Tables)

6 Months Ended

Jun. 25, 2023

Restructuring and Related Activities [Abstract]

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


	Moy Park		Pilgrim’s Pride Ltd.		Pilgrim’s Food Masters		Total
	(In thousands)
Earliest implementation date	October 2022		November 2022		December 2022
Expected completion date	June 2023		July 2023		July 2023
Costs incurred and expected to be incurred:
Employee-related costs	$	10,972	$	18,546	$	13,120	$	42,638
Asset impairment costs	3,236		—		4,216		7,452
Contract termination costs	248		708		371		1,327
Other exit and disposal costs (a)	7,414		6,425		5,968		19,807
Total exit and disposal costs	$	21,870	$	25,679	$	23,675	$	71,224
Cost incurred since earliest implementation date:
Employee-related costs	$	10,972	$	18,546	$	12,450	$	41,968
Asset impairment costs	3,236		—		4,141		7,377
Contract termination costs	248		—		—		248
Other exit and disposal costs (a)	6,224		6,425		5,968		18,617
Total exit and disposal costs	$	20,680	$	24,971	$	22,559	$	68,210

(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd. prepaid maintenance costs and Pilgrim’s Food Masters consulting fees.

During the six months ended June 25, 2023, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:


	Expenses		Cash Outlays
	(In thousands)
Moy Park	$	1,355	$	6,174
Pilgrim’s Pride Ltd.	14,831		6,507
Pilgrim’s Food Masters	21,558		17,643
	$	37,744	$	30,324

Schedule of Restructuring Reserve

The following table reconciles liabilities and reserves associated with each restructuring initiative from its respective inception to June 25, 2023. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets. The ending reserve balance for inventory adjustments is reported in the line item Inventories in our Condensed Consolidated Balance Sheets. The ending reserve balance for asset impairments is reported in the line item Property, plant and equipment, net in our Condensed Consolidated Balance Sheets.


	Moy Park
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of June 25, 2023
	(In thousands)

Asset impairment	$	2,391	$	(323)	$	(2,514)	$	446	$	—
Inventory adjustments	1		47		(48)		—		—

Other charges	6,025		141		(2,152)		(211)		3,803
Other employee costs	—		1,364		(1,364)		—		—
Contract termination	122		126		(96)		6		158
Total	$	8,539	$	1,355	$	(6,174)	$	241	$	3,961


	Pilgrim’s Pride Ltd.
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of June 25, 2023
	(In thousands)
Employee retention benefits	$	—	$	1,642	$	(1,276)	$	10	$	376
Severance	5,503		8,698		(4,509)		231		9,923

Inventory adjustments	615		604		(722)		27		524
Lease termination	800		(67)		—		44		777
Other charges	501		3,954		—		72		4,527
Total	$	7,419	$	14,831	$	(6,507)	$	384	$	16,127


	Pilgrim’s Food Masters
	Liability or reserve as of December 25, 2022		Restructuring charges incurred		Cash payments and disposals		Currency translation		Liability or reserve as of June 25, 2023
	(In thousands)

Severance	$	639	$	11,488	$	(10,851)	$	52	$	1,328
Asset impairment	—		4,141		(4,143)		2		—
Inventory adjustments	—		728		(728)		—		—
Lease termination	—		1,219		—		68		1,287
Other charges	—		3,982		(1,921)		41		2,102
Total	$	639	$	21,558	$	(17,643)	$	163	$	4,717