General Mills 8-K 2016
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
General Mills, Inc.
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Item 2.05 Costs Associated with Exit or Disposal Activities.
In the first quarter of fiscal 2017, General Mills, Inc. announced a plan to restructure certain product lines in its International segment. To eliminate excess capacity, we will close our snacks manufacturing facility in Marília, Brazil and cease production operations for meals and snacks at our facility in São Bernardo do Campo, Brazil. We will also cease production of certain underperforming snack products at our facility in Nanjing, China. These and other actions, which are subject to appropriate consultation with employees and their representatives where required by law or practice, will affect approximately 420 positions in our Brazilian operations and approximately 440 positions in our Greater China operations. We expect to incur approximately $42 million of charges related to these actions, including approximately $8 million of employee severance and $33 million of impairment charges to write down assets to their net realizable value. In the first quarter of fiscal 2017, we expect to record approximately $32 million of these charges. We expect to pay approximately $7 million in cash related to these actions, and anticipate completing these actions by the end of fiscal 2017.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.