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GROWTH, REINVESTMENT, AND RESTRUCTURING PROGRAMS
6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
GROWTH, REINVESTMENT, AND RESTRUCTURING PROGRAMS
3. GROWTH, REINVESTMENT, AND RESTRUCTURING PROGRAMS

The Company’s Growth, Reinvestment, and Restructuring activities are part of an enterprise-wide transformation to build long-term sustainable growth and improve profitability for the Company. As part of our Growth, Reinvestment, and Restructuring Programs, we generally incur expenses that qualify as exit and disposal costs under U.S. GAAP. These include severance and employee separation costs and other exit costs. Severance and employee separation costs primarily relate to cash severance, non-cash severance, including accelerated equity award compensation expense, and other termination benefits. Other exit costs typically relate to lease and contract terminations. We also incur expenses that are an integral component of, and directly attributable to, our Growth, Reinvestment, and Restructuring activities, which do not qualify as exit and disposal costs under U.S. GAAP. These include asset-related costs and other costs. Asset-related costs primarily relate to accelerated depreciation and certain long-lived asset impairments. Other costs primarily relate to start-up costs of new facilities, consulting and professional fees, retention costs, organizational redesign, information technology system implementation, asset relocation costs, and costs to exit facilities or production.

Strategic Growth Initiatives

The Company began executing on its Strategic Growth Initiatives in 2021 and completed the program in 2023. These initiatives were designed to invest in our commercial organization, adapt the supply chain to better support long-term growth opportunities, and further enable the Company to build greater depth in growth categories. The total costs within this program were $115.5 million, comprised of consulting and professional fees, employee-related costs, and investment in information technology. The costs incurred for the three and six months ended June 30, 2023 were $3.4 million and $10.4 million, respectively.

Facility Closures

During the fourth quarter of 2023, the Company completed the closure of its Dallas, Texas Coffee facility in connection with the integration of the Coffee Roasting Capability and transitioned production from Dallas to its Northlake, Texas facility during the first half of 2024. Additionally, during the first quarter of 2024, the Company announced the closure of its Sioux Falls, South Dakota facility in connection with the integration of the Seasoned Pretzel Capability and has transitioned production from Sioux Falls to its Hanover, Pennsylvania facility. The Company expects the total costs related to these facility closures and associated distribution network optimization to be approximately $15.0 million, and the cumulative costs incurred to date are $9.4 million. The costs incurred for the three and six months ended June 30, 2024 were $2.5 million and $4.4 million, respectively.
Below is a summary of costs by type associated with the Growth, Reinvestment, and Restructuring Programs:
Three Months Ended
June 30,
Six Months Ended
June 30,
2024202320242023
 (In millions)
Employee-related$4.7 $3.4 $7.3 $7.7 
Other costs6.8 5.5 10.9 16.5 
Total$11.5 $8.9 $18.2 $24.2 
 
For the three and six months ended June 30, 2024 and 2023, employee-related costs primarily consisted of severance and retention; and other costs primarily consisted of consulting services and third party costs related to facility plant closures. Employee-related and other costs are recognized in Other operating expense (income), net of the Condensed Consolidated Statements of Operations. 

The table below presents the exit cost liabilities related to severance activity for the Growth, Reinvestment, and Restructuring Programs as of June 30, 2024:  
 Severance
 (In millions)
Balance as of December 31, 2023$5.4 
Expenses recognized4.3 
Cash payments(4.5)
Balance as of June 30, 2024$5.2 
 
The severance liabilities are included in Accrued expenses in the Condensed Consolidated Balance Sheets.