Integration and Restructuring Costs

Integration and restructuring costs primarily consist of employee-related costs and other transition and termination costs related to certain acquisition or restructuring activities. Employee-related costs include severance, retention bonuses, and relocation costs. Severance costs and retention bonuses are recognized over the estimated future service period of the affected employees, and relocation costs are expensed as incurred. Other transition and termination costs include fixed asset-related charges, contract and lease termination costs, professional fees, and other miscellaneous expenditures associated with the integration or restructuring activities, which are expensed as incurred. These one-time costs are not allocated to segment profit, and the majority of these costs are reported in other special project costs in the Condensed Statements of Consolidated Income. The obligation related to employee separation costs is included in other current liabilities in the Condensed Consolidated Balance Sheets.

Integration Costs: Total one-time costs related to the acquisition of Ainsworth are anticipated to be approximately $50.0, of which the majority are expected to be cash charges. Of the total anticipated one-time costs, we expect approximately half to be employee-related costs. Approximately two-thirds of the total one-time costs are expected to be incurred by the end of 2019.

The following table summarizes our one-time costs incurred related to the Ainsworth acquisition.



	Three Months Ended October 31,		Six Months Ended October 31,		Total Costs Incurred to Date at October 31, 2018
	2018		2018		Total Costs Incurred to Date at October 31, 2018
Employee-related costs	$	6.9	$	7.8	$	7.8
Other transition and termination costs	7.3		8.4		8.4
Total one-time costs	$	14.2	$	16.2	$	16.2

Noncash charges of $1.0 and $1.8 were included in the one-time costs incurred during the three and six months ended October 31, 2018, respectively. Noncash charges included in total one-time costs incurred to date were $1.8 and primarily consisted of accelerated depreciation. The obligation related to severance costs and retention bonuses was $5.3 at October 31, 2018.

All integration activities related to the acquisition of Big Heart Pet Brands (“Big Heart”) were complete as of April 30, 2018, and as a result, we did not incur any integration costs during the three and six months ended October 31, 2018. During the three and six months ended October 31, 2017, we incurred one-time costs of $7.8 and $18.9, respectively. Noncash charges of $1.2 and $2.5 were included in the one-time costs incurred during the three and six months ended October 31, 2017, respectively, and primarily consisted of share-based compensation and accelerated depreciation. The obligation related to severance costs and retention bonuses was $0.1 at April 30, 2018, and was fully satisfied at October 31, 2018.

Restructuring Costs: An organization optimization program was approved by the Board of Directors (the “Board”) during the fourth quarter of 2016. Under this program, we identified opportunities to reduce costs and optimize the organization. Related projects included an organizational redesign and the optimization of our manufacturing footprint. The program was recently expanded to include the restructuring of our geographic footprint, which includes the centralization of our pet food and pet snacks business, as well as certain international non-manufacturing functions, to our corporate headquarters in Orrville, Ohio, furthering collaboration and enhanced agility, while improving cost efficiency.

As a result of the program, all coffee production at our Harahan, Louisiana, facility was consolidated into one of our facilities in New Orleans, Louisiana, during 2018. We also closed our international offices in China and Mexico during the second quarter of 2019, and we plan to close the San Francisco and Burbank, California, offices by the end of 2019.

Upon completion of the remaining initiatives, we anticipate that the organization optimization program will result in total headcount reductions of approximately 450 full-time positions, of which approximately 75 percent were reduced as of October 31, 2018. Total restructuring costs are expected to be approximately $75.0, of which the majority represents employee-related costs. The majority of the remaining restructuring costs are expected to be incurred through the end of 2019.

The following table summarizes our one-time costs incurred related to the organization optimization program.



	Three Months Ended October 31,				Six Months Ended October 31,				Total Costs Incurred to Date at October 31, 2018
	2018		2017		2018		2017		Total Costs Incurred to Date at October 31, 2018
Employee-related costs	$	9.5	$	1.2	$	15.1	$	11.6	$	38.9
Other transition and termination costs	1.7		1.6		1.8		7.9		20.6
Total one-time costs	$	11.2	$	2.8	$	16.9	$	19.5	$	59.5

Noncash charges of $0.9 and $0.8 were included in the one-time costs incurred during the three months ended October 31, 2018 and 2017, respectively, and $1.0 and $6.9 during the six months ended October 31, 2018 and 2017, respectively. Noncash charges included in total one-time costs incurred to date were $12.9 and primarily consisted of accelerated depreciation. The obligation related to severance costs and retention bonuses was $9.9 and $0.3 at October 31, 2018, and April 30, 2018, respectively.