13. EXIT OR DISPOSAL ACTIVITIES

From time to time, the Company will incur costs to implement exit or disposal efforts for specific operations. These exit or disposal plans, each of which is approved by the Company's Board of Directors, focus on various aspects of operations, including closing and consolidating certain processing facilities, rationalizing headcount and aligning operations in the most strategic and cost-efficient structure. Specific exit or disposal efforts that were ongoing during either the thirteen and thirty-nine weeks ended September 29, 2013 or the thirteen and thirty-nine weeks ended September 23, 2012 included the following:

	Facility Closures^(a)		Administrative Integration ^(b)		Total
	(In thousands, except positions eliminated)
Earliest implementation date		October 2008		January 2010
Latest expected completion date		September 2014		September 2012
Positions eliminated		2,410		480		2,890
Costs incurred and expected to be incurred:
Employee-related costs	$	2,492	$	864	$	3,356
Asset impairment costs		15,878		37,362		53,240
Inventory valuation costs		344		-		344
Other exit or disposal costs		15,206		4,112		19,318
Total exit or disposal costs	$	33,920	$	42,338	$	76,258
Costs incurred since earliest implementation date:
Employee-related costs	$	2,492	$	864	$	3,356
Asset impairment costs		15,878		37,362		53,240
Inventory valuation costs		344		-		344
Other exit or disposal costs		13,749		4,112		17,861
Total exit or disposal costs	$	32,463	$	42,338	$	74,801

	Thirteen Weeks Ended September 29, 2013						Thirteen Weeks Ended September 23, 2012
	Facility Closures		Administrative Integration		Total		Facility Closures		Administrative Integration		Total
	(In thousands)
Asset impairment costs	$	2,629	$	466	$	3,095	$	-	$	-	$	-
Other exit or disposal costs		563		-		563		805		1,993		2,798
Total exit or disposal costs	$	3,192	$	466	$	3,658	$	805	$	1,993	$	2,798

	Thirty-Nine Weeks Ended September 29, 2013						Thirty-Nine Weeks Ended September 23, 2012
	Facility Closures		Administrative Integration		Total		Facility Closures		Administrative Integration		Total
	(In thousands)
Employee-related costs	$	-	$	-	$	-	$	78	$	-	$	78
Asset impairment costs		2,629		466		3,095		960		382		1,342
Other exit or disposal costs		1,527		-		1,527		2,737		1,993		4,730
Total exit or disposal costs	$	4,156	$	466	$	4,622	$	3,775	$	2,375	$	6,150

(a)		Significant facilities closed included one processing plant in 2008, two processing plants in 2009, two processing plants in the transition period and one processing plant in 2011. The transition period began September 27, 2009 and ended December 27, 2009 and resulted from the Company's change in its fiscal year end from the Saturday nearest September 30 each year to the last Sunday in December of each year.

(b)		Company management implemented certain activities to integrate the administrative functions of the Company into those of JBS USA. These included the closures of administrative offices in Georgia and Texas.

Accrued severance costs are included in Accrued expenses and other current liabilities and accrued inventory charges are included in Inventories on the accompanying Condensed Consolidated Balance Sheets. The following table sets forth activity that was recorded through the Company's accrued exit or disposal cost accounts during the thirty-nine weeks ended September 29, 2013 and September 23, 2012:

	Accrued Severance			Accrued Inventory Charges			Total
	(In thousands)
Balance at December 30, 2012	$	-		$	808		$	808
Accruals		-			-			-
Payment /Disposal		-			(808	)		(808	)
Adjustments		-			-			-
Balance at September 29, 2013	$	-		$	-		$	-

Balance at December 25, 2011	$	90		$	793		$	883
Accruals		-			151			151
Payment /Disposal		(155	)		(136	)		(291	)
Adjustments		78			-			78
Balance at September 23, 2012	$	13		$	808		$	821

Exit or disposal costs were included on the following lines in the accompanying Condensed Consolidated Statements of Income:

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 29, 2013		September 23, 2012		September 29, 2013		September 23, 2012
	(In thousands)
Cost of sales	$	-	$	151	$	-	$	229
Administrative restructuring charges		3,658		2,647		4,622		5,921
Total exit or disposal costs	$	3,658	$	2,798	$	4,622	$	6,150

Certain exit or disposal costs were classified as Administrative restructuring charges on the accompanying Condensed Consolidated Statements of Income because management believed these costs were not directly related to the Company's ongoing operations. Components of administrative restructuring charges are summarized below:

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 29, 2013		September 23, 2012		September 29, 2013		September 23, 2012
	(In thousands)
Asset impairment costs (Note 6. Property, Plant and Equipment)	$	3,095	$	-	$	3,095	$	1,342
Loss on egg sales and flock depletion expensed as incurred		-		-		-		509
Other restructuring costs		563		2,647		1,527		4,070
Total administrative restructuring charges	$	3,658	$	2,647	$	4,622	$	5,921

We continue to review and evaluate various restructuring and other alternatives to streamline our operations, improve efficiencies and reduce costs. Such initiatives may include selling assets, consolidating operations and functions and voluntary and involuntary employee separation programs. Any such actions may require us to obtain the pre-approval of our lenders under our credit facilities. In addition, such actions will subject the Company to additional short-term costs, which may include asset impairment charges, lease commitment costs, employee retention and severance costs and other costs. Certain of these activities may have a disproportionate impact on our income relative to the cost savings in a particular period.