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RESTRUCTURING-RELATED ACTIVITIES
 6 Months Ended
Jun. 29, 2025
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:
Pilgrim’s Food Masters 2024
Pilgrim’s Europe Central
Total
(In thousands)
Earliest implementation dateApril 2024January 2024
Expected predominant completion dateMarch 2025June 2025
Costs incurred and expected to be incurred
Employee-related costs$19,848 $52,191 $72,039 
Asset impairment costs10,887 1,852 12,739 
Contract termination costs855 1,747 2,602 
Other exit and disposal costs (a)
9,869 4,221 14,090 
Total exit and disposal costs (b)
$41,459 $60,011 $101,470 
Costs incurred since earliest implementation date
Employee-related costs$19,848 $43,423 $63,271 
Asset impairment costs10,887 1,852 12,739 
Contract termination costs855 1,747 2,602 
Other exit and disposal costs (a)
9,869 4,221 14,090 
Total exit and disposal costs (b)
$41,459 $51,243 $92,702 
(a)Comprised of other costs directly related to the restructuring initiatives including flock depletion, the write-off of prepaid maintenance costs, consulting fees, and costs to return leased assets to original configuration.
(b)All costs, except for asset impairment costs, are estimated to result in cash outlays.
During the six months ended June 29, 2025, the Company recognized the following expenses and paid the following cash related to each restructuring initiative:
ExpensesCash Outlays
(In thousands)
Pilgrim’s Food Masters 2024$724 $5,192 
Pilgrim’s Europe Central18,550 15,099 
Prior programs substantially complete837 2,385 
Total$20,111 $22,676 
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 during the six months ended June 29, 2025. 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. During the six
months ended June 29, 2025, there were no material movements in reserves related to substantially completed programs. These programs have been excluded from the tables below.
Pilgrim’s Food Masters 2024
Liability or reserve as of December 29, 2024Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of June 29, 2025
(In thousands)
Employee retention benefits$76 $363 $(302)$7 $144 
Severance1,620 (143)(1,363)71 185 
Asset impairment— 79 (79)— — 
Inventory adjustments— (34)34 — — 
Lease termination290 6 (6)26 316 
Other charges4,787 453 (3,527)285 1,998 
Total$6,773 $724 $(5,243)$389 $2,643 
Pilgrim’s Europe Central
Liability or reserve as of December 29, 2024Restructuring charges incurredCash payments and disposalsCurrency translationLiability or reserve as of June 29, 2025
(In thousands)
Employee retention benefits$— $932 $(932)$— $— 
Severance2,823 14,535 (12,201)956 6,113 
Asset impairment— 28 (28)— — 
Inventory adjustments91 — (96)5 — 
Lease termination— 2,101 (2,222)121 — 
Other charges67 954 (1,050)29 — 
Contract termination1,223 — (916)86 393 
Total$4,204 $18,550 $(17,445)$1,197 $6,506