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RESTRUCTURING-RELATED ACTIVITIES
 3 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
RESTRUCTURING-RELATED ACTIVITIES RESTRUCTURING-RELATED ACTIVITIES
In 2022, the Company began restructuring initiatives to phase out and reduce processing volumes at multiple production facilities throughout the Europe reportable segment. Implementation of these initiatives is expected to result in total
pre-tax charges of approximately $74.9 million, and approximately $49.1 million of these charges are estimated to result in cash outlays. These activities were initiated in the fourth quarter of 2022 and were substantially completed by the end of 2023.
In 2023, the Company began a restructuring initiative to phase out and reduce processing volumes at a production facility in the Europe reportable segment. Implementation of this initiative is expected to result in total pre-tax charges of approximately $3.0 million, and all of these charges are estimated to result in cash outlays. This activity was initiated in the fourth quarter of 2023 and was substantially completed by the end of the first quarter of 2024.
During the three months ended March 31, 2024, the Company began a restructuring initiative to integrate central operations in the Europe reportable segment. Implementation of this initiative is expected to result in total pre-tax charges of approximately $14.5 million, and all of these charges are estimated to result in cash outlays. This activity was initiated in the first quarter of 2024 and is expected to be substantially completed by the end of 2024.
The following table provides a summary of our estimates of costs associated with these restructuring initiatives by major type of cost:
Moy ParkPilgrim’s Pride Ltd.Pilgrim’s Food Masters 2022Pilgrim’s Food Masters 2023
Pilgrim’s Europe Central
Total
(In thousands)
Earliest implementation dateOctober 2022November 2022December 2022October 2023January 2024
Expected predominant completion dateJune 2023July 2023July 2023March 2024December 2024
Costs incurred and expected to be incurred:
Employee-related costs$11,103 $20,098 $14,490 $3,027 $13,926 $62,644 
Asset impairment costs3,476 3,046 4,141 — — 10,663 
Contract termination costs248 — — — — 248 
Other exit and disposal costs (a)
6,245 5,763 6,330 — 524 18,862 
Total exit and disposal costs$21,072 $28,907 $24,961 $3,027 $14,450 $92,417 
Cost incurred since earliest implementation date:
Employee-related costs$11,103 $20,098 $14,490 $3,027 $13,926 $62,644 
Asset impairment costs3,476 — 4,141 — — 7,617 
Contract termination costs248 — — — — 248 
Other exit and disposal costs (a)
6,245 5,763 6,330 — 524 18,862 
Total exit and disposal costs$21,072 $25,861 $24,961 $3,027 $14,450 $89,371 
(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd. prepaid maintenance costs and Pilgrim’s Food Masters consulting fees.
During the three months ended March 31, 2024, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:
ExpensesCash Outlays
(In thousands)
Moy Park$— $— 
Pilgrim’s Pride Ltd.109 318 
Pilgrim’s Food Masters 2022— 2,909 
Pilgrim’s Food Masters 2023— — 
Pilgrim’s Europe Central14,450 6,703 
$14,559 $9,930 
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 March 31, 2024. 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 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of March 31, 2024
(In thousands)
Other charges$2,644 $— $— $(24)$2,620 
Contract termination144 — — (1)143 
Total$2,788 $— $— $(25)$2,763 
Pilgrim’s Pride Ltd.
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of March 31, 2024
(In thousands)
Employee retention benefits$35 $— $— $— $35 
Severance734 — (318)(5)411 
Inventory adjustments294 — — (3)291 
Lease termination164 109 — (1)272 
Other charges752 — — (8)744 
Total$1,979 $109 $(318)$(17)$1,753 
Pilgrim’s Food Masters 2022
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of March 31, 2024
(In thousands)
Severance$1,281 $— $(1,276)$(5)$— 
Inventory adjustments65 — — (2)63 
Lease termination1,289 — (1,284)(5)— 
Other charges685 — (349)(4)332 
Total$3,320 $— $(2,909)$(16)$395 
Pilgrim’s Food Masters 2023
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of March 31, 2024
(In thousands)
Employee retention benefits$522 $— $— $(5)$517 
Severance1,636 — — (13)1,623 
Total$2,158 $— $— $(18)$2,140 
Pilgrim’s Europe Central
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of March 31, 2024
(In thousands)
Employee retention benefits$— $12 $— $— $12 
Severance— 13,914 (6,703)(66)7,145 
Lease termination— 8 — — 8 
Other charges— 516 — (4)512 
Total$— $14,450 $(6,703)$(70)$7,677