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RESTRUCTURING-RELATED ACTIVITIES
 6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
RESTRUCTURING-RELATED ACTIVITIES RESTRUCTURING-RELATED ACTIVITIES
In 2022, the Company began restructuring initiatives in its Europe reportable segment. Additional restructuring initiatives also commenced in 2023 and 2024. The purpose of our ongoing restructuring activities is to integrate central operations and reallocate processing capacities between production facilities resulting in closures of some facilities in the Europe reportable segment.
The following table provides a summary of our estimates of timelines and costs associated with these restructuring initiatives by major type of cost:
Moy ParkPilgrim’s Pride Ltd.Pilgrim’s Food Masters 2022Pilgrim’s Food Masters 2023Pilgrim’s Food Masters 2024
Pilgrim’s Europe Central
Total
(In thousands)
Earliest implementation dateOctober 2022November 2022December 2022October 2023April 2024January 2024
Expected predominant completion dateJune 2023July 2023July 2023March 2024December 2024December 2024
Costs incurred and expected to be incurred:
Employee-related costs$11,103 $20,444 $14,490 $3,027 $30,052 $25,197 $104,313 
Asset impairment costs3,476 7,111 4,141 — 4,477 1,824 21,029 
Contract termination costs248 263 — — 548 — 1,059 
Other exit and disposal costs (a)
6,245 5,344 6,330 — 2,404 658 20,981 
Total exit and disposal costs (b)
$21,072 $33,162 $24,961 $3,027 $37,481 $27,679 $147,382 
Costs incurred since earliest implementation date:
Employee-related costs$11,103 $20,444 $14,490 $3,027 $12,223 $21,779 $83,066 
Asset impairment costs3,476 7,111 4,141 — 4,477 1,824 21,029 
Contract termination costs248 263 — — 548 — 1,059 
Other exit and disposal costs (a)
6,245 5,344 6,330 — 2,404 569 20,892 
Total exit and disposal costs$21,072 $33,162 $24,961 $3,027 $19,652 $24,172 $126,046 
(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd. prepaid maintenance costs and Pilgrim’s Food Masters consulting fees.
(b)All costs, except for asset impairment costs, are estimated to result in cash outlays.
During the six months ended June 30, 2024, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:
ExpensesCash Outlays
(In thousands)
Moy Park$— $659 
Pilgrim’s Pride Ltd.7,410 704 
Pilgrim’s Food Masters 2022— 1,625 
Pilgrim’s Food Masters 2023— 2,140 
Pilgrim’s Food Masters 202419,652 4,925 
Pilgrim’s Europe Central24,172 19,483 
Total$51,234 $29,536 
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 June 30, 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 June 30, 2024
(In thousands)
Other charges$2,644 $— $(659)$(21)$1,964 
Contract termination144 — — (1)143 
Total$2,788 $— $(659)$(22)$2,107 
Pilgrim’s Pride Ltd.
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of June 30, 2024
(In thousands)
Employee retention benefits$35 $(35)$— $— $— 
Severance734 380 (550)(4)560 
Asset impairment— 7,111 (7,111)— — 
Inventory adjustments294 141 (432)(3)— 
Lease termination164 372 (93)— 443 
Other charges752 (559)(61)(8)124 
Total$1,979 $7,410 $(8,247)$(15)$1,127 
Pilgrim’s Food Masters 2022
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of June 30, 2024
(In thousands)
Severance$1,281 $— $(1,276)$(5)$— 
Inventory adjustments65 — (63)(2)— 
Lease termination1,289 — (1,284)(5)— 
Other charges685 — (349)(3)333 
Total$3,320 $— $(2,972)$(15)$333 
Pilgrim’s Food Masters 2023
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of June 30, 2024
(In thousands)
Employee retention benefits$522 $— $(517)$(5)$— 
Severance1,636 — (1,623)(13)— 
Total$2,158 $— $(2,140)$(18)$— 
Pilgrim’s Food Masters 2024
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of June 30, 2024
(In thousands)
Employee retention benefits$— $212 $— $— $212 
Severance— 12,011 (3,949)16 8,078 
Asset impairment— 4,477 (4,477)— — 
Lease termination— 548 (548)— — 
Other charges— 2,404 (976)3 1,431 
Total$— $19,652 $(9,950)$19 $9,721 
Pilgrim’s Europe Central
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of June 30, 2024
(In thousands)
Employee retention benefits$— $12 $(12)$— $— 
Severance— 21,767 (18,914)(121)2,732 
Asset impairment— 1,824 (1,824)— — 
Lease termination— 8 (8)— — 
Other charges— 561 (557)(4)— 
Total$— $24,172 $(21,315)$(125)$2,732