Restructuring Restructuring
 6 Months Ended
May 25, 2014
Restructuring Liabilities Disclosures [Abstract]  
Restructuring
RESTRUCTURING
On February 5, 2014, the Company's Board of Directors (the “Board”) endorsed a global productivity initiative designed to streamline operations and fuel long-term profitable growth. On March 26, 2014, the Company announced and began to implement the global productivity initiative, which will continue to be implemented in phases over the next nine to 15 months.
The first phase of the global productivity initiative includes the elimination of approximately 800 positions within the Company’s global non-retail and non-manufacturing employee population, as well as initiating centrally-led cost-savings and productivity projects. The role eliminations reflect a reduction of management layers, an increase in spans of control, the removal of duplicative roles, a regrouping of country clusters and other structural changes. The elimination of positions within the United States and Asia was completed during the second quarter of 2014. Implementation of the global productivity initiative continued in the second quarter of 2014 with a focus on redesigning business processes and identifying opportunities to reduce costs, increase efficiencies and further streamline processes in supporting functions and supply chain.
For the three and six months ended May 25, 2014, the Company recognized restructuring charges of $19.1 million and $77.0 million, respectively, which were recorded in "Restructuring" in the Company's consolidated statements of income. Related charges of $9.4 million and $15.8 million for the three and six months ended May 25, 2014, respectively, consist primarily of consulting fees for the Company's centrally-led cost-savings and productivity projects. These related charges represent costs incurred associated with ongoing operations to benefit future periods and were recorded in "Selling, general and administrative expenses" in the Company's consolidated statements of income.
The table below summarizes the components of charges included in “Restructuring” in the Company’s consolidated statements of income:
 
Three Months Ended
 
Six Months Ended
 
May 25,
2014
 
May 26,
2013
 
May 25,
2014
 
May 26,
2013
 
(Dollars in thousands)
Restructuring:
 
 
 
 
 
 
 
Severance and employee-related benefits(1)
$
13,427

 
$
—

 
$
64,748

 
$
—

Adjustments to severance and employee-related benefits
(3,045
)
 
—

 
(3,045
)
 
—

Lease and other contract termination costs
—

 
—

 
—

 
—

Other(2)
4,504

 
—

 
10,161

 
—

Non-cash pension and postretirement curtailment losses(3)
4,219

 
—

 
5,176

 
—

Total
$
19,105

 
$
—

 
$
77,040

 
$
—

_____________

(1)
Severance and employee-related benefits relate to items such as severance, based on separation benefits provided by Company policy or statutory benefit plans, out-placement services and career counseling for employees affected by the global productivity initiative.

(2)
Other restructuring costs are expensed as incurred and primarily relate to consulting fees and legal expenses associated with exit activities.

(3)
Non-cash pension and postretirement curtailment losses resulting from the global productivity initiative are included in restructuring charges, with the associated liabilities included in "Pension liability" and "Postretirement medical benefit" in the Company's consolidated balance sheets.
The Company anticipates that it will incur future additional restructuring charges related to the actions taken in the first half of 2014 for the global productivity initiative. Final estimates for headcount, timing and charges in certain areas of the international business are subject to completion of applicable local works council and other consultative processes. Additionally, the Company is unable at this time to make a good faith determination of cost estimates, or ranges of cost estimates, associated with future phases of the global productivity initiative. Cash payments for charges recognized to date are expected to be made in 2014 through the first half of 2015.
The following table summarizes the activities associated with restructuring liabilities for the three and six months ended May 25, 2014, all of which are included in "Current liabilities" in the Company's consolidated balance sheets. In the table below, "Charges" represents the initial charge related to the restructuring activity. "Adjustments" includes revisions of estimates related to severance, employee-related benefits, lease and other contract termination costs, and other restructuring costs. "Payments" consists of cash payments for severance, employee-related benefits, lease and other contract termination costs, and other restructuring costs.
 
Three Months Ended May 25, 2014
 
Liabilities
 
 
 
Adjustments
 
 
 
Foreign Currency Fluctuation
 
Liabilities
 
February 23, 2014
 
Charges
 
 
Payments
 
 
May 25, 2014
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Severance and employee-related benefits
$
51,321

 
$
13,427

 
$
(3,045
)
 
$
(13,477
)
 
$
(850
)
 
$
47,376

Lease and other contract termination costs
—

 
—

 
—

 
—

 
—

 
—

Other
5,657

 
4,504

 
—

 
(7,788
)
 
—

 
2,373

Total
$
56,978

 
$
17,931

 
$
(3,045
)
 
$
(21,265
)
 
$
(850
)
 
$
49,749

 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended May 25, 2014
 
Liabilities
 
 
 
Adjustments
 
 
 
Foreign Currency Fluctuation
 
Liabilities
 
November 24, 2013
 
Charges
 
 
Payments
 
 
May 25, 2014
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Severance and employee-related benefits
$
—

 
$
64,748

 
$
(3,045
)
 
$
(13,477
)
 
$
(850
)
 
$
47,376

Lease and other contract termination costs
—

 
—

 
—

 
—

 
—

 
—

Other
—

 
10,161

 
—

 
(7,788
)
 
—

 
2,373

Total
$
—

 
$
74,909

 
$
(3,045
)
 
$
(21,265
)
 
$
(850
)
 
$
49,749