RESTRUCTURING-RELATED ACTIVITIES

9 Months Ended

Sep. 24, 2023

Restructuring and Related Activities [Abstract]

In 2022, the Company began restructuring initiatives to phase out and reduce processing volumes at multiple production facilities throughout the U.K. and Europe reportable segment. Implementation of these initiatives is expected to result in total pre-tax charges of approximately $69.7 million, and approximately $45.1 million of these charges are estimated to result in cash outlays. These activities were initiated in the fourth quarter of 2022 and were nearing completion by the end of the third quarter of 2023.

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 predominant completion date	June 2023		July 2023		July 2023
Costs incurred and expected to be incurred:
Employee-related costs	$	10,972	$	19,400	$	12,633	$	43,005
Asset impairment costs	3,236		—		4,141		7,377
Contract termination costs	248		—		24		272
Other exit and disposal costs (a)	6,601		6,427		5,998		19,026
Total exit and disposal costs	$	21,057	$	25,827	$	22,796	$	69,680
Cost incurred since earliest implementation date:
Employee-related costs	$	10,972	$	19,400	$	12,420	$	42,792
Asset impairment costs	3,236		—		4,141		7,377
Contract termination costs	248		—		—		248
Other exit and disposal costs (a)	6,224		6,510		5,998		18,732
Total exit and disposal costs	$	20,680	$	25,910	$	22,559	$	69,149

(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 nine months ended September 24, 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	$	6,855
Pilgrim’s Pride Ltd.	15,771		19,517
Pilgrim’s Food Masters	21,558		19,496
	$	38,684	$	45,868

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

The following table reconciles liabilities and reserves associated with each restructuring initiative from its respective inception to September 24, 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 September 24, 2023
	(In thousands)

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

Other charges	6,025		141		(2,819)		(329)		3,018
Other employee costs	—		1,364		(1,364)		—		—
Contract termination	122		126		(110)		—		138
Total	$	8,539	$	1,355	$	(6,855)	$	117	$	3,156


	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 September 24, 2023
	(In thousands)
Employee retention benefits	$	—	$	1,838	$	(1,800)	$	5	$	43
Severance	5,503		9,355		(14,083)		158		933

Inventory adjustments	615		372		(722)		18		283
Lease termination	800		(67)		—		15		748
Other charges	501		4,273		(2,912)		(10)		1,852
Total	$	7,419	$	15,771	$	(19,517)	$	186	$	3,859


	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 September 24, 2023
	(In thousands)

Severance	$	639	$	11,457	$	(11,975)	$	48	$	169
Asset impairment	—		4,141		(4,143)		2		—
Inventory adjustments	—		793		(728)		(4)		61
Lease termination	—		1,219		—		27		1,246
Other charges	—		3,948		(2,650)		(12)		1,286
Total	$	639	$	21,558	$	(19,496)	$	61	$	2,762