GENERAL MILLS INC 10-K form, page 51: 






























51 

NOTE 4. RESTRUCTURING, IMPAIRMENT,


AND OTHER EXIT COSTS

We view
our restructuring activities as actions
that help us meet our long-term
growth targets and are evaluated
against internal rate of 
return and net
present value targets.
Each restructuring
action normally takes
one to two
years to complete.
At completion (or
as each 
major stage
is completed

in the

case of
multi-year programs),
the project
begins to
deliver cash
savings and/or
reduced depreciation. 
These activities
result in
various restructuring
costs, including
asset write-offs,
exit charges
including severance,
contract termination 
fees, and decommissioning
and other costs.
Accelerated depreciation
associated with restructured
assets, as used

in the context

of our 
disclosures
regarding
restructuring
activity,
refers

to


the

increase

in

depreciation
expense
caused

by

shortening

the

useful
life

or 

updating
the salvage
value
of depreciable
fixed
assets to
coincide

with the

end of
production
under an
approved
restructuring
plan. 
Any impairment of the asset is recognized immediately in the period
the plan is approved. 
Restructuring charges recorded in fiscal 2023 were

as follows:




Expense, in Millions

Global supply chain actions
$
36.2
Network optimization actions
6.4
Charges associated with restructuring actions previously
announced
18.4
Total restructuring
charges
$
61.0




In fiscal
2023,
we approved
restructuring actions
to enhance
the efficiency
of our
global supply
chain structure.

We

expect to
incur 
approximately
$
52

million

of

restructuring
charges

and

project-related
costs
related

to

these
actions,

of

which
approximately
$
35
million will be
cash. These charges
are expected

to consist of

approximately $
26

million of severance

and $

26

million of other
costs, 
primarily
$
8

million

of

asset
impairment

and

$
11

million

of

other
asset
write-offs.

We

recognized
$
25.8

million

of

severance

and 

$
10.4

million of other costs in fiscal 2023. We
expect these actions to be completed by the end of fiscal 2025. 
In fiscal 2023, we approved restructuring actions in
our International segment to optimize our Häagen-Dazs
shops network. We
expect 
to incur
approximately $
10

million of
restructuring charges

and project-related

costs related
to these

actions, of

which approximately 
$
9

million will be
cash. These charges
are expected to
consist of approximately
$
6

million of severance

and $

4

million of other
costs. 

We

recognized $
5.6

million of
severance and
$
0.8

million of
other costs
in fiscal

2023. We

expect these
actions to
be completed

by 


the 

end of fiscal 2024
.
Certain actions are subject to union negotiations and works counsel consultations,
where required. 
We paid net
$
36.6

million of cash related to restructuring actions in fiscal 2023. We
paid net $
93.9

million of cash in fiscal 2022. 
Restructuring charges recorded in fiscal 2022 were

as follows:




Expense, in Millions

International manufacturing and logistics operations
$
15.0
Net recoveries associated with restructuring actions previously announced
(38.2)
Total net restructuring
recoveries
$
(23.2)




Restructuring charges recorded in fiscal 2021 were

as follows:





Expense, in Millions

Global organizational structure and resource alignment
$
157.3
International route-to-market and supply chain optimization
13.0
Charges associated with restructuring actions previously
announced
2.4
Total restructuring
charges
$
172.7





 
, GENERAL MILLS INC 10-K form, page 52: 





































































52 
Restructuring and impairment charges and project-related
costs are classified in our Consolidated Statements of Earnings as follows:



Fiscal Year


In Millions

2023
2022
2021
Restructuring, impairment, and other exit costs (recoveries)
$
56.2
$
(26.5)
$
170.4

Cost of sales

4.8
3.3
2.3
Total restructuring
and impairment charges (recoveries)
61.0
(23.2)
172.7
Project-related costs classified in cost of sales
$
2.4
$
-
$
-




The roll forward of our restructuring and other exit cost reserves, included
in other current liabilities, is as follows:



In Millions


Severance


Other Exit 


Costs


Total


Reserve balance as of May 31, 2020

$
17.8
$
-
$
17.8
Fiscal 2021 charges, including foreign currency translation
142.3
1.6
143.9

Utilized in fiscal 2021

(12.8)
(0.1)
(12.9)

Reserve balance as of May 30, 2021

147.3
1.5
148.8
Fiscal 2022 charges, including foreign currency translation
2.2
1.2
3.4
Reserve adjustment
(34.0)
-
(34.0)

Utilized in fiscal 2022

(80.1)
(1.3)
(81.4)

Reserve balance as of May 29, 2022

35.4
1.4
36.8
Fiscal 2023 charges, including foreign currency translation
41.6
0.1
41.7

Utilized in fiscal 2023

(29.4)
(1.4)
(30.8)

Reserve balance as of May 28, 2023

$
47.6
$
0.1
$
47.7




The charges
recognized in
the roll forward
of our reserves
for restructuring
and other exit
costs do not
include items
charged
directly 
to expense (e.g., asset impairment charges,

the gain or loss on the sale of restructured assets, and the

write-off of spare parts) and other 
periodic
exit
costs
recognized

as

incurred,

as

those
items
are
not
reflected

in

our
restructuring

and

other
exit
cost
reserves

on

our 

Consolidated Balance Sheets.




NOTE 5. INVESTMENTS IN UNCONSOLIDATED


JOINT VENTURES


We

have a 
50

percent interest

in Cereal


Partners Worldwide

(CPW), which
manufactures and
markets ready-to-eat
cereal products

in 

approximately 
130

countries
outside

the


United


States


and

Canada.

CPW

also
markets
cereal
bars

in


European

countries

and 

manufactures private label cereals for

customers in the United Kingdom.

We have
guaranteed a portion of CPW's
debt and its pension 

obligation in the United Kingdom.


We

also have

a 

50

percent interest

in Häagen-Dazs

Japan, Inc.
(HDJ). This joint
venture manufactures
and markets 
Häagen-Dazs 
ice 
cream products and frozen novelties.
Results from our CPW and HDJ joint ventures are reported for the 
12 months

ended March 31. 
Joint venture related balance sheet activity is as follows:




In Millions


May 28, 2023


May 29, 2022

Cumulative investments
$
401.5
$
416.4
Goodwill and other intangibles
444.1
444.9
Aggregate advances included in cumulative investments
275.6
254.4





 
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 44: 
44 The Procter & Gamble Company



NOTE 3


SUPPLEMENTAL FINANCIAL INFORMATION

The components of property, plant and equipment were as follows:
|    |                                     |          |        |      |          |    |        |
|---:|:------------------------------------|:---------|:-------|:-----|:---------|:---|:-------|
|  1 | As of June 30                       | 2023     |        | 2022 |          |    |        |
|  2 | PROPERTY, PLANT AND EQUIPMENT       |          |        |      |          |    |        |
|  3 | Buildings                           | $        | 8,277  |      |          | $  | 8,087  |
|  4 | Machinery and equipment             | 36,521   |        |      | 35,098   |    |        |
|  5 | Land                                | 867      |        |      | 756      |    |        |
|  6 | Construction in progress            | 2,980    |        |      | 2,756    |    |        |
|  7 | TOTAL PROPERTY, PLANT AND EQUIPMENT | 48,645   |        |      | 46,697   |    |        |
|  8 | Accumulated depreciation            | (26,736) |        |      | (25,502) |    |        |
|  9 | PROPERTY, PLANT AND EQUIPMENT, NET  | $        | 21,909 |      |          | $  | 21,195 |
Selected components of current and noncurrent liabilities were as follows:|    |                                         |       |        |      |       |    |       |
|---:|:----------------------------------------|:------|:-------|:-----|:------|:---|:------|
|  1 | As of June 30                           | 2023  |        | 2022 |       |    |       |
|  2 | ACCRUED AND OTHER LIABILITIES - CURRENT |       |        |      |       |    |       |
|  3 | Marketing and promotion                 | $     | 3,894  |      |       | $  | 3,878 |
|  4 | Compensation expenses                   | 2,030 |        |      | 1,797 |    |       |
|  5 | Taxes payable                           | 828   |        |      | 587   |    |       |
|  6 | Derivative liabilities                  | 631   |        |      | 1     |    |       |
|  7 | Leases                                  | 222   |        | 205  |       |    |       |
|  8 | Restructuring reserves                  | 174   |        |      | 147   |    |       |
|  9 | Other                                   | 3,150 |        |      | 2,939 |    |       |
| 10 | TOTAL                                   | $     | 10,929 |      |       | $  | 9,554 |
| 12 | OTHER NONCURRENT LIABILITIES            |       |        |      |       |    |       |
| 13 | Pension benefits                        | $     | 3,116  |      |       | $  | 3,139 |
| 14 | U.S. Tax Act transitional tax payable   | 1,154 |        |      | 1,661 |    |       |
| 15 | Other retiree benefits                  | 690   |        |      | 672   |    |       |
| 16 | Uncertain tax positions                 | 622   |        |      | 752   |    |       |
| 17 | Long term operating leases              | 595   |        |      | 595   |    |       |
| 18 | Derivative liabilities                  | 445   |        |      | 307   |    |       |
| 19 | Other                                   | 530   |        |      | 490   |    |       |
| 20 | TOTAL                                   | $     | 7,152  |      |       | $  | 7,616 |

RESTRUCTURING PROGRAM

The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under ongoing programs have generally ranged from $250 to $500 annually. 
Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges. Other restructuring-type charges primarily include asset removal and termination of contracts related to supply chain and overhead optimization. The Company incurred total restructuring charges of $329 and $253 for the fiscal years ended June 30, 2023 and 2022. Of the charges incurred for fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net. Of the 
Amounts in millions of dollars except per share amounts or as otherwise specified.




, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 45: 
The Procter & Gamble Company 45


charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022:
|    |                                      |             |                     |       |       |       |       |     |    |     |
|---:|:-------------------------------------|:------------|:--------------------|:------|:------|:------|:------|:----|:---|:----|
|  1 |                                      | Separations | Asset-Related Costs | Other | Total |       |       |     |    |     |
|  2 | RESERVE JUNE 30, 2021                | $           | 176                 |       | $     | -     | $     | 102 | $  | 278 |
|  3 | Cost incurred and charged to expense | 88          |                     | 87    |       | 78    | 253   |     |    |     |
|  4 | Cost paid/settled                    | (143)       |                     | (87)  |       | (154) | (384) |     |    |     |
|  5 | RESERVE JUNE 30, 2022                | 121         |                     | -     |       | 26    | 147   |     |    |     |
|  6 | Cost incurred and charged to expense | 175         |                     | 43    |       | 111   | 329   |     |    |     |
|  7 | Cost paid/settled                    | (141)       |                     | (43)  |       | (118) | (302) |     |    |     |
|  8 | RESERVE JUNE 30, 2023                | $           | 155                 |       | $     | -     | $     | 19  | $  | 174 |
Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. 
However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments:

|    |                              |      |      |      |    |     |    |     |
|---:|:-----------------------------|:-----|:-----|:-----|:---|:----|:---|:----|
|  1 | Fiscal years ended June 30   | 2023 | 2022 | 2021 |    |     |    |     |
|  2 | Beauty                       | $    | 15   |      | $  | 11  | $  | 13  |
|  3 | Grooming                     | 17   |      | 14   |    | 25  |    |     |
|  4 | Health Care                  | 28   |      | 32   |    | 51  |    |     |
|  5 | Fabric & Home Care           | 87   |      | 42   |    | 22  |    |     |
|  6 | Baby, Feminine & Family Care | 21   |      | 83   |    | 29  |    |     |
|  7 | Corporate (1)                | 161  |      | 71   |    | 190 |    |     |
|  8 | Total Company                | $    | 329  |      | $  | 253 | $  | 330 |

(1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities.

NOTE 4


GOODWILL AND INTANGIBLE ASSETS

The change in the net carrying amount of goodwill by reportable segment was as follows:

|    |                                    |        |          |             |                    |                              |               |       |       |       |    |         |    |       |    |        |
|---:|:-----------------------------------|:-------|:---------|:------------|:-------------------|:-----------------------------|:--------------|:------|:------|:------|:---|:--------|:---|:------|:---|:-------|
|  1 |                                    | Beauty | Grooming | Health Care | Fabric & Home Care | Baby, Feminine & Family Care | Total Company |       |       |       |    |         |    |       |    |        |
|  2 | Balance at June 30, 2021 - Net (1) | $      | 13,257   |             | $                  | 13,095                       |               | $     | 8,046 |       | $  | 1,873   | $  | 4,653 | $  | 40,924 |
|  3 | Acquisitions and divestitures      | 781    |          | -           |                    | 1                            |               | -     |       | -     |    | 782     |    |       |    |        |
|  4 | Translation and other              | (742)  |          | (524)       |                    | (458)                        |               | (65)  |       | (217) |    | (2,006) |    |       |    |        |
|  5 | Balance at June 30, 2022 - Net (1) | 13,296 |          | 12,571      |                    | 7,589                        |               | 1,808 |       | 4,436 |    | 39,700  |    |       |    |        |
|  6 | Acquisitions and divestitures      | 405    |          | -           |                    | -                            |               | -     |       | 33    |    | 438     |    |       |    |        |
|  7 | Translation and other              | 187    |          | 132         |                    | 129                          |               | 13    |       | 60    |    | 521     |    |       |    |        |
|  8 | Balance at June 30, 2023 - Net (1) | $      | 13,888   |             | $                  | 12,703                       |               | $     | 7,718 |       | $  | 1,821   | $  | 4,529 | $  | 40,659 |

(1)Grooming goodwill balance is net of $7.9 billion accumulated impairment losses.
Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and indefinite-lived intangible assets to their respective carrying values. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability). Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows, including those related to the Russia-Ukraine War. Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. 
Amounts in millions of dollars except per share amounts or as otherwise specified.




, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 46: 
46 The Procter & Gamble Company


We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. 
Goodwill increased during fiscal 2023 primarily due to an acquisition in the Beauty segment, other minor brand acquisitions in the Baby, Feminine & Family Care segment and currency translation across all reportable segments.
Goodwill decreased during fiscal 2022 due to currency translation across all reportable segments, partially offset by three acquisitions (Farmacy Beauty, Ouai and TULA) in the Beauty reportable segment. 
Identifiable intangible assets were comprised of:
 |    |                                           |                       |                         |         |                       |                         |        |         |        |    |         |
|---:|:------------------------------------------|:----------------------|:------------------------|:--------|:----------------------|:------------------------|:-------|:--------|:-------|:---|:--------|
|  1 |                                           | 2023                  |                         | 2022    |                       |                         |        |         |        |    |         |
|  2 | As of June 30                             | Gross Carrying Amount | AccumulatedAmortization |         | Gross Carrying Amount | AccumulatedAmortization |        |         |        |    |         |
|  3 | INTANGIBLE ASSETS WITH DETERMINABLE LIVES |                       |                         |         |                       |                         |        |         |        |    |         |
|  4 | Brands                                    | $                     | 4,352                   |         | $                     | (2,540)                 |        | $       | 4,299  | $  | (2,628) |
|  5 | Patents and technology                    | 2,775                 |                         | (2,649) |                       |                         | 2,769  | (2,609) |        |    |         |
|  6 | Customer relationships                    | 1,847                 |                         | (1,039) |                       |                         | 1,797  | (939)   |        |    |         |
|  7 | Other                                     | 73                    |                         | (28)    |                       |                         | 147    | (97)    |        |    |         |
|  8 | TOTAL                                     | $                     | 9,047                   |         | $                     | (6,256)                 |        | $       | 9,012  | $  | (6,273) |
| 10 | INTANGIBLE ASSETS WITH INDEFINITE LIVES   |                       |                         |         |                       |                         |        |         |        |    |         |
| 11 | Brands                                    | 20,992                |                         | -       |                       |                         | 20,940 | -       |        |    |         |
| 13 | TOTAL INTANGIBLE ASSETS                   | $                     | 30,039                  |         | $                     | (6,256)                 |        | $       | 29,952 | $  | (6,273) |
Amortization expense of intangible assets was as follows:
|    |                               |      |     |      |      |     |    |     |
|---:|:------------------------------|:-----|:----|:-----|:-----|:----|:---|:----|
|  1 | Fiscal years ended June 30    | 2023 |     | 2022 | 2021 |     |    |     |
|  2 | Intangible asset amortization | $    | 327 |      | $    | 312 | $  | 318 |
Estimated amortization expense over the next five fiscal years is as follows:
|    |                                |      |      |      |      |      |    |     |    |     |    |     |
|---:|:-------------------------------|:-----|-----:|:-----|:-----|-----:|:---|:----|:---|:----|:---|:----|
|  1 | Fiscal years ending June 30    | 2024 | 2025 | 2026 | 2027 | 2028 |    |     |    |     |    |     |
|  2 | Estimated amortization expense | $    |  340 |      | $    |  320 | $  | 297 | $  | 287 | $  | 247 |

NOTE 5


INCOME TAXES

Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. 
We have elected to account for the tax effects of Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred. 
Earnings before income taxes consisted of the following:

|    |                            |       |        |      |       |      |        |       |    |        |
|---:|:---------------------------|:------|:-------|:-----|:------|:-----|:-------|:------|:---|:-------|
|  1 | Fiscal years ended June 30 | 2023  |        | 2022 |       | 2021 |        |       |    |        |
|  2 | United States              | $     | 12,107 |      |       | $    | 11,698 |       | $  | 10,858 |
|  3 | International              | 6,246 |        |      | 6,297 |      |        | 6,757 |    |        |
|  4 | TOTAL                      | $     | 18,353 |      |       | $    | 17,995 |       | $  | 17,615 |

Amounts in millions of dollars except per share amounts or as otherwise specified.






Question: Compare the restructuring or impairment charges of General Mills and The Procter & Gamble Company for the fiscal year 2023.
Answer: General Mills reported total restructuring charges of $61.0 million for fiscal year 2023, including $36.2 million for global supply chain actions, $6.4 million for network optimization actions, and $18.4 million for charges associated with previously announced restructuring actions. The company also recognized $25.8 million of severance and $10.4 million of other costs related to these actions.
The Procter & Gamble Company reported total restructuring charges of $329 million for fiscal year 2023, including $160 million recorded in Costs of products sold, $160 million in SG&A, and $9 million in Other non-operating income, net. The restructuring charges included costs for employee separations, asset-related costs, and other restructuring-type charges.
P&G's restructuring charges are significantly higher than those of General Mills, reflecting more extensive restructuring activities to maintain a competitive cost structure. P&G's restructuring costs are also more diversified across different expense categories.