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RESTRUCTURING-RELATED ACTIVITIES
 9 Months Ended
Sep. 29, 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. 2022Pilgrim’s Pride Ltd. 2024Pilgrim’s Food Masters 2022Pilgrim’s Food Masters 2023Pilgrim’s Food Masters 2024
Pilgrim’s Europe Central
Total
(In thousands)
Earliest implementation dateOctober 2022November 2022September 2024December 2022October 2023April 2024January 2024
Expected predominant completion dateJune 2023July 2023December 2024July 2023March 2024December 2024December 2024
Costs incurred and expected to be incurred:
Employee-related costs$11,103 $20,325 $1,633 $14,490 $3,027 $18,434 $26,005 $95,017 
Asset impairment costs3,476 15,269 — 4,141 — 9,540 1,824 34,250 
Contract termination costs248 262 — — — 1,678 1,360 3,548 
Other exit and disposal costs (a)
6,245 7,594 — 6,330 — 11,655 916 32,740 
Total exit and disposal costs (b)
$21,072 $43,450 $1,633 $24,961 $3,027 $41,307 $30,105 $165,555 
Costs incurred since earliest implementation date:
Employee-related costs$11,103 $20,325 $1,633 $14,490 $3,027 $17,356 $23,865 $91,799 
Asset impairment costs3,476 15,269 — 4,141 — 9,540 1,824 34,250 
Contract termination costs248 262 — — — 749 1,360 2,619 
Other exit and disposal costs (a)
6,245 7,594 — 6,330 — 7,129 916 28,214 
Total exit and disposal costs$21,072 $43,450 $1,633 $24,961 $3,027 $34,774 $27,965 $156,882 
(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd. prepaid maintenance costs and Pilgrim’s Food Masters consulting fees.
(b)All costs, except for asset impairment costs, are estimated to result in cash outlays.
During the nine months ended September 29, 2024, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:
ExpensesCash Outlays
(In thousands)
Moy Park$— $869 
Pilgrim’s Pride Ltd. 202217,698 3,009 
Pilgrim’s Pride Ltd. 20241,633 131 
Pilgrim’s Food Masters 2022— 1,663 
Pilgrim’s Food Masters 2023— 2,140 
Pilgrim’s Food Masters 202434,774 10,649 
Pilgrim’s Europe Central27,965 23,585 
Total$82,070 $42,046 
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 29, 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.
Moy Park
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of September 29, 2024
(In thousands)
Other charges$2,644 $— $(722)$90 $2,012 
Contract termination144 — (147)3 — 
Total$2,788 $— $(869)$93 $2,012 
Pilgrim’s Pride Ltd. 2022
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of September 29, 2024
(In thousands)
Employee retention benefits$35 $(34)$— $(1)$— 
Severance734 262 (579)24 441 
Asset impairment— 15,269 (15,269)— — 
Inventory adjustments294 141 (432)(3)— 
Lease termination164 371 (212)22 345 
Other charges752 1,689 (2,430)(3)8 
Total$1,979 $17,698 $(18,922)$39 $794 
Pilgrim’s Pride Ltd. 2024
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of September 29, 2024
(In thousands)
Severance$— $1,633 $(131)$43 $1,545 
Pilgrim’s Food Masters 2022
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of September 29, 2024
(In thousands)
Severance$1,281 $— $(1,276)$(5)$— 
Inventory adjustments65 — (63)(2)— 
Lease termination1,289 — (1,284)(5)— 
Other charges685 — (387)15 313 
Total$3,320 $— $(3,010)$3 $313 
Pilgrim’s Food Masters 2023
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of September 29, 2024
(In thousands)
Employee retention benefits$522 $— $(517)$(5)$— 
Severance1,636 — (1,623)(13)— 
Total$2,158 $— $(2,140)$(18)$— 
Pilgrim’s Food Masters 2024
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of September 29, 2024
(In thousands)
Employee retention benefits$— $1,539 $(762)$26 $803 
Severance— 15,817 (6,003)533 10,347 
Asset impairment— 9,540 (9,540)— — 
Inventory adjustments— 64 (64)— — 
Lease termination— 749 (548)6 207 
Other charges— 7,065 (3,884)136 3,317 
Total$— $34,774 $(20,801)$701 $14,674 
Pilgrim’s Europe Central
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of September 29, 2024
(In thousands)
Employee retention benefits$— $12 $(12)$— $— 
Severance— 23,853 (22,573)(9)1,271 
Asset impairment— 1,824 (1,824)— — 
Lease termination— 8 (8)— — 
Other charges— 908 (905)(3)— 
Contract termination— 1,360 (95)35 1,300 
Total$— $27,965 $(25,417)$23 $2,571