v3.26.3
Restructuring, Transformation, Impairment, and Other Exit Costs
3 Months Ended
Aug. 30, 2026
Restructuring and Related Activities [Abstract]  
Restructuring, Transformation, Impairment, and Other Exit Costs Restructuring, Transformation, Impairment, and Other Exit Costs
Restructuring, transformation, and impairment charges were as follows:
Quarter Ended
In Millions
Aug. 30, 2026
Aug. 24, 2025
Valuation loss on held for sale business
$23.7
$
Charges associated with restructuring and transformation actions previously announced
0.2
18.3
Total
$23.9
$18.3
In the first quarter of fiscal 2027, we recorded an additional $23.7 million non-cash pre-tax valuation loss related to the planned
divestiture of our Brazil business. Please see Note 2 for additional information.
In the first quarter of fiscal 2027, we did not undertake any new restructuring or transformation actions. We recorded $0.2 million of
restructuring and transformation charges in the first quarter of fiscal 2027 and $18.3 million of restructuring and transformation
charges in the first quarter of fiscal 2026 related to actions previously announced. We expect these actions to be completed by the end
of fiscal 2030.
We paid net $2.9 million of cash in the first quarter of fiscal 2027 related to restructuring and transformation actions. We paid net
$21.0 million of cash in the same period of fiscal 2026.
Restructuring, transformation, and impairment charges are recorded in our Consolidated Statements of Earnings as follows:
Quarter Ended
In Millions
Aug. 30, 2026
Aug. 24, 2025
Restructuring, transformation, impairment, and other exit costs
$21.4
$16.3
Cost of sales
2.5
2.0
Total restructuring, transformation, and impairment charges
$23.9
$18.3
The roll forward of our restructuring, transformation, and other exit cost reserves, included in other current liabilities, is as follows:
In Millions
Total
Reserve balance as of May 31, 2026
$49.9
Fiscal 2027 charges, including foreign currency translation
0.2
Utilized in fiscal 2027
(9.6)
Reserve balance as of Aug. 30, 2026
$40.5
The restructuring, transformation, and other exit cost reserves balance as of August 30, 2026, is primarily related to severance costs.
The charges recognized in the roll forward of our reserves for restructuring, transformation, and other exit costs do not include items
charged directly to expense (e.g., asset write-offs, asset impairment charges, and the gain or loss on the sale of restructured assets) and
other periodic exit costs recognized as incurred, as those items are not reflected in our restructuring, transformation, and other exit cost
reserves on our Consolidated Balance Sheets.