In June 2018, the company received from a supplier several shipments of inferior yeast, which reduced product quality and disrupted production and distribution of foodservice and retail bread and buns at several of the company’s bakeries during the second quarter. While the supplier confirmed that the inferior yeast used in the baking process was safe for consumption, customers and consumers reported instances of unsatisfactory product attributes, primarily involving smell and taste. Costs associated with inferior yeast were reclassified from material, supplies, labor and other production costs and selling, distribution and administrative expenses to the ‘Loss on inferior ingredients’ line item in our Consolidated Statements of Income.

In addition, the company incurred costs associated with inferior whey during the third quarter of fiscal 2018. A voluntary recall was issued on July 18, 2018 due to the potential of tainted whey. Costs associated with inferior whey were reclassified from material, supplies, labor and other production costs to the ‘Loss on inferior ingredients’ line item in our Consolidated Statements of Income. These costs primarily impacted the Warehouse Segment. Although we anticipate incurring additional costs associated with inferior whey, we are not currently able to estimate the amount of such costs.

The company recovered $4.2 million in cash from the supplier of inferior yeast that has offset the direct costs in the third quarter of fiscal 2018. During fiscal 2019, the company received an additional $1.3 million for the reimbursement of costs associated with receiving inferior yeast. We intend to seek additional recovery of all losses through appropriate means. The table below presents the total costs and recoveries during fiscal 2018 (amounts in thousands):

	DSD Segment			Warehouse Segment		Total
Expense recognized during fiscal 2018	$	5,811		$	1,557	$	7,368
Recoveries recognized during fiscal 2018		(4,156	)		—		(4,156	)
Total loss on ingredients	$	1,655		$	1,557	$	3,212

The currently identifiable and measurable costs reclassified during fiscal 2018 in our Consolidated Statements of Income by segment related to these production and distribution disruptions were as follows (amounts in thousands):

	Fiscal 2018
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately):
DSD Segment	$	951
Warehouse Segment	$	1,557
Total materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately)	$	2,508

Selling, distribution and administrative expenses:
DSD Segment	$	704
Warehouse Segment	$	—
Total selling, distribution and administrative expenses	$	704