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These excerpts taken from the PBG 10-K filed Feb 27, 2008. Organizational Realignment – In the third quarter of 2007, we announced a restructuring program to realign the Company’s organization to adapt to changes in the marketplace, improve operating efficiencies and enhance the growth potential of the Co mpany’s product portfolio. We anticipate the program to be substantially complete by the end of the first quarter of 2008. As part of the Organizational Realignment we reduced the number of business units in the U.S. & Canada from eight to six to centralize decision making and increase speed to market, resulting in the elimination of approximately 200 positions. The restructuring program also resulted in the elimination of approximately 650 positions in Mexico and Europe, many of which were hourly frontline positions in warehouse and production. In connection with the elimination of positions primarily in Mexico, we made approximately $4 million of employee benefit payments pursuant to existing unfunded termination indemnity plans. These benefit payments have been accrued for in previous periods and, therefore, are not included in our estimated cost for this program. We expect to recognize annual cost savings of approximately $30 million as a result of the program. The Organizational Realignment is expected to cost $30 to $35 million over the course of the program, which is primarily for severance, relocation and other employee-related benefits. As of December 29, 2007, we had eliminated approximately 800 positions across all reporting segments and incurred a pre-tax charge of approximately $26 million, which was recorded in selling, delivery, and administrative expenses. The remaining costs are expected to be incurred in the first quarter of 2008. Substantially all costs associated with the Organizational Realignment required cash payments in 2007 or will require cash payments in 2008. The total after-tax cash expenditures, including payments made pursuant to existing unfunded indemnity plans, are expected to be approximately $26 million, of which $14 million was recognized in 2007, with the balance to occur in 2008. Organizational
Realignment – On August 8, 2007, we
announced a restructuring program (the “Organizational
Realignment”) to realign the Company’s organization to
adapt to changes in the marketplace, improve operating
efficiencies and enhance the growth potential of the
Company’s product portfolio. As part of the Organizational
Realignment we reduced the number of business units in the
U.S. & Canada from eight to six to centralize decision
making and increase speed to market, resulting in the
elimination of approximately 200 positions. The restructuring
program also resulted in the elimination of approximately 650
positions in Mexico and Europe, many of which were hourly
frontline positions in warehouse and production.
The Organizational Realignment is expected to cost $30 to
$35 million over the course of the program, which is
primarily for severance, relocation and other employee-related
costs. As of December 29, 2007, we had eliminated
approximately 800 positions across all reporting segments and
incurred a pre-tax charge of approximately $26 million,
which was recorded in selling, delivery and administrative
expenses. The remaining costs, which primarily relate to
relocation expenses in the U.S., will be recorded in the first
quarter of 2008.
Substantially all costs associated with the Organizational
Realignment required cash payments in 2007 or will require cash
payments in 2008. Additionally, in connection with the
elimination of positions primarily in Mexico, we made
approximately $4 million of employee benefit payments
pursuant to existing unfunded termination indemnity plans. These
benefit payments have been accrued for in previous periods and,
therefore, are not included in our estimated cost for this
program and are not included in the tables below. The following
table summarizes the pre-tax costs associated with the
Organizational Realignment by reportable segment for the year
ended December 29, 2007:
57
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The following table summarizes the nature of and activity
related to pre-tax costs associated with the Organizational
Realignment for the year ended December 29, 2007:
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