Note 4: Restructuring

During 2010, we announced plans to restructure our coffee and fruit spreads operations as part of our ongoing efforts to enhance the long-term strength and profitability of our leading brands. Since then, we expanded our restructuring plan to include the Canadian pickle and condiments operations and the capacity expansion of our peanut butter business. Pickle and condiments production was transitioned to third-party manufacturers during 2012. The consolidation of coffee production in New Orleans, Louisiana, related to these restructuring initiatives is complete, and the transitioned retail and foodservice fruit spreads volume is being produced at our new facility in Orrville, Ohio. All of the impacted facilities have been closed, resulting in the reduction of 850 full-time positions as anticipated.

We expect to incur total restructuring costs of approximately $265.0 for the entire restructuring plan, of which $251.2 has been incurred through July 31, 2014. The majority of the remaining costs are anticipated to be recognized this fiscal year and relate to the conversion of the Memphis, Tennessee, fruit spreads facility into a peanut butter plant.

The following table summarizes the restructuring activity, including the liabilities recorded and the total amount expected to be incurred.


	Long-Lived Asset Charges		Employee Separation		Site Preparation and Equipment Relocation		Production Start-up		Other Costs		Total
Total expected restructuring charge	$	102.8	$	63.8	$	45.4	$	42.8	$	10.2	$	265.0
Balance at May 1, 2013	$	—	$	7.7	$	—	$	—	$	—	$	7.7
Charge to expense		2.7		2.6		7.2		7.2		1.1		20.8
Cash payments		—		(8.4)		(7.2)		(7.2)		(1.1)		(23.9)
Noncash utilization		(2.7)		(0.2)		—		—		—		(2.9)
Balance at April 30, 2014	$	—	$	1.7	$	—	$	—	$	—	$	1.7
Charge to expense		0.1		0.2		0.9		1.3		0.3		2.8
Cash payments		—		(1.1)		(0.9)		(1.3)		(0.3)		(3.6)
Noncash utilization		(0.1)		—		—		—		—		(0.1)
Balance at July 31, 2014	$	—	$	0.8	$	—	$	—	$	—	$	0.8
Remaining expected restructuring charge	$	0.1	$	0.1	$	4.3	$	7.7	$	1.6	$	13.8

In the three months ended July 31, 2014 and 2013, total restructuring charges of $2.8 and $5.2, respectively, were reported in the Condensed Statements of Consolidated Income. Of the total restructuring charges, $0.1 and $1.4 were reported in cost of products sold in the three months ended July 31, 2014 and 2013, respectively, while the remaining charges were reported in other special project costs.

Employee separation costs include severance, retention bonuses, and pension costs. Severance costs and retention bonuses are recognized over the estimated future service period of the affected employees. The obligation related to employee separation costs is included in current liabilities in the Condensed Consolidated Balance Sheets.

Other costs include professional fees, costs related to closing the facilities, and miscellaneous expenditures associated with the restructuring initiative and are expensed as incurred.