XML 62 R27.htm IDEA: XBRL DOCUMENT v3.25.0.1
RESTRUCTURING-RELATED ACTIVITIES
 12 Months Ended
Dec. 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 2024March 2025June 2025
Costs incurred and expected to be incurred:
Employee-related costs$11,103 $20,283 $1,531 $14,490 $3,027 $19,628 $43,236 $113,298 
Asset impairment costs3,481 15,938 — 4,141 — 10,808 1,824 36,192 
Contract termination costs248 144 — — — 846 1,747 2,985 
Other exit and disposal costs(a)
6,135 7,735 185 6,330 — 9,935 3,807 34,127 
Total exit and disposal costs(b)
$20,967 $44,100 $1,716 $24,961 $3,027 $41,217 $50,614 $186,602 
Costs incurred since earliest implementation date:
Employee-related costs$11,103 $20,283 $1,531 $14,490 $3,027 $19,628 $27,956 $98,018 
Asset impairment costs3,481 15,938 — 4,141 — 10,808 1,824 36,192 
Contract termination costs248 144 — — — 846 1,747 2,985 
Other exit and disposal costs(a)
6,135 7,735 185 6,330 — 9,453 1,166 31,004 
Total exit and disposal costs$20,967 $44,100 $1,716 $24,961 $3,027 $40,735 $32,693 $168,199 
(a)Comprised of other costs directly related to the restructuring initiatives including Moy Park flock depletion, the write-off of Pilgrim’s Pride Ltd. prepaid maintenance costs and Pilgrim’s Food Masters consulting fees.
(b)All costs, except for asset impairment costs, are estimated to result in cash outlays.
During 2024, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:
ExpensesCash Outlays
(In thousands)
Moy Park$(105)$869 
Pilgrim’s Pride Ltd. 202218,349 3,166 
Pilgrim’s Pride Ltd. 20241,717 1,512 
Pilgrim’s Food Masters 2022— 1,598 
Pilgrim’s Food Masters 2023— 2,139 
Pilgrim’s Food Masters 202440,735 22,172 
Pilgrim’s Europe Central32,692 26,490 
Total$93,388 $57,946 
These expenses are reported in the line item Restructuring activities on the Consolidated Statements of Income.
The following table reconciles liabilities and reserves associated with each restructuring initiative from December 31, 2023 to December 29, 2024. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Consolidated Balance Sheets. The ending reserve balance for inventory adjustments is reported in the line item Inventories in our Consolidated Balance Sheets.
Moy Park
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of December 29, 2024
(In thousands)
Asset impairment$— $5 $(5)$— $— 
Other charges2,644 (110)(722)(28)1,784 
Contract termination144 — (147)3 — 
Total$2,788 $(105)$(874)$(25)$1,784 
Pilgrim’s Pride Ltd. 2022
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of December 29, 2024
(In thousands)
Employee retention benefits$35 $(34)$— $(1)$— 
Severance734 220 (616)— 338 
Asset impairment— 15,938 (15,938)— — 
Inventory adjustments294 141 (432)(3)— 
Lease termination164 253 (215)3 205 
Other charges752 1,831 (2,550)(5)28 
Total$1,979 $18,349 $(19,751)$(6)$571 
Pilgrim’s Pride Ltd. 2024
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of December 29, 2024
(In thousands)
Severance$— $1,532 $(1,512)$(20)$— 
Inventory adjustments— 185 (185)— — 
Total$— $1,717 $(1,697)$(20)$— 
Pilgrim’s Food Masters 2022
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of December 29, 2024
(In thousands)
Severance$1,281 $— $(1,276)$(5)$— 
Inventory adjustments65 — (65)— — 
Lease termination1,289 — (1,284)(5)— 
Other charges685 — (322)(6)357 
Total$3,320 $— $(2,947)$(16)$357 
Pilgrim’s Food Masters 2023
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of December 29, 2024
(In thousands)
Employee retention benefits$522 $— $(517)$(5)$— 
Severance1,636 — (1,622)(14)— 
Total$2,158 $— $(2,139)$(19)$— 
Pilgrim’s Food Masters 2024
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of December 29, 2024
(In thousands)
Employee retention benefits$— $2,850 $(2,768)$(6)$76 
Severance— 16,778 (15,237)79 1,620 
Asset impairment— 10,808 (10,808)— — 
Inventory adjustments— 403 (403)— — 
Lease termination— 846 (548)(8)290 
Other charges— 9,050 (4,167)(96)4,787 
Total$— $40,735 $(33,931)$(31)$6,773 
Pilgrim’s Europe Central
Liability or reserve as of December 31, 2023Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of December 29, 2024
(In thousands)
Employee retention benefits$— $12 $(12)$— $— 
Severance— 27,944 (25,004)(117)2,823 
Asset impairment— 1,824 (1,824)— — 
Inventory adjustments— 93 — (2)91 
Lease termination— 8 (8)— — 
Other charges— 1,064 (992)(5)67 
Contract termination— 1,747 (482)(42)1,223 
Total$— $32,692 $(28,322)$(166)$4,204