ANYTIMEkANYPLACEkANYWHERE - Heinz

Project Millennia
During the fourth quarter of Fiscal 1997, the company announced a reorganization
and restructuring program named ‘‘Project Millennia,’’ which resulted in a total cost of
approximately $750 million over three years. The reorganization plan was designed
to strengthen the company’s core businesses and improve profitability and global growth.
Key initiatives were focused on process changes and product line rationalizations.
The major components of the restructuring charges and implementation costs and the
accrual balances as of May 3, 2000, April 28, 1999, April 29, 1998 and April 30, 1997 were
as follows:
(Dollars in millions)
Non-Cash
Asset
Write-Downs
Employee
Termination and
Severance Costs
Accrued
Exit Costs
Exit Costs
Implementation
Costs
Total
Restructuring and implementation costs – 1997 $ 324.3 $ 164.5 $ 94.3 $ 64.1 $ 647.2
Amounts utilized – 1997 (324.3) (32.1) (15.9) (64.1) (436.4)
Accrued restructuring costs – April 30, 1997 – 132.4 78.4 — 210.8
Implementation costs – 1998 – – – 84.1 84.1
Amounts utilized – 1998 – (91.9) (24.5) (84.1) (200.5)
Accrued restructuring costs – April 29, 1998 – 40.5 53.9 – 94.4
Implementation costs – 1999 – – – 22.3 22.3
Amounts utilized – 1999 – (28.7) (19.9) (22.3) (70.9)
Accrual reversal – 1999 – (9.1) (16.6) – (25.7)
Accrued restructuring costs – April 28, 1999 – 2.7 17.4 – 20.1
Amounts utilized – 2000 – (2.7) (16.9) – (19.6)
Accrued restructuring costs – May 3, 2000 $ – $ – $ 0.5 $ – $ 0.5
The company has completed the implementation of Project Millennia. During Fiscal 2000, the
company utilized $19.6 million of severance and exit accruals. The utilization of the accruals
related principally to the closure of a tuna processing facility in Australia, the closure of a
tomato processing facility in Spain and costs associated with contractual lease commitments
of the U.S. Weight Watchers classroom business, which were transferred to the buyer of the
classroom business.
As of May 3, 2000, the company has closed or divested all of the 25 plants that were
scheduled for closure or divestiture. Project Millennia has resulted in a net workforce reduction
of 2,250 employees.
As of May 3, 2000, there are $0.5 million of remaining Project Millennia accruals. These
accruals relate to contractual lease commitments in the U.S.
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