Asset Impairment Charges and Facility Closing and Reorganization Costs (Tables)

9 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Approved plans within our multi-year initiatives and related charges are summarized as follows:



	Three Months Ended September 30				Nine Months Ended September 30
	2014		2013		2014		2013
	(In thousands)
Closure of Facilities(1)	$	2,805	$	6,667	$	4,510	$	11,842
Functional Realignment(2)	—		186		—		704
Field and Functional Reorganization (3)	—		415		—		5,266
Other	—		—		—		5
Total	$	2,805	$	7,268	$	4,510	$	17,817

(1)

These charges in 2014 and 2013 primarily relate to facility closures in Riverside, California; Delta, Colorado; Denver, Colorado; Dallas, Texas; Waco, Texas; Springfield, Virginia; Buena Park, California; Evart, Michigan; Bangor, Maine; Shreveport, Louisiana; and Mendon, Massachusetts; as well as other approved closures. We have incurred $42.7 million of charges related to these initiatives to date. We expect to incur additional charges related to these facility closures of approximately $3.7 million related to contract termination, shutdown and other costs. As we continue the evaluation of our supply chain and distribution network, as well as our accelerated cost reduction efforts, it is likely that we will close additional facilities in the future.

(2)

The Functional Realignment initiative was focused on aligning key functions within our legacy Fresh Dairy Direct operations under a single leadership team and permanently removing certain costs from the organization. We have incurred total charges of approximately $33.1 million under this initiative as of September 30, 2013, and we do not expect to incur any material future charges related to this plan.

(3)

The Field and Functional Reorganization initiative streamlined the leadership structure and has enabled faster decision-making and created enhanced opportunities to strategically build our business. We have incurred total charges of $11.3 million under this plan as of September 30, 2013, all of which were associated with headcount reductions. We do not currently anticipate incurring any material charges under this plan going forward.

Facility Closing and Reorganization Costs

Activity with respect to facility closing and reorganization costs during the nine months ended September 30, 2014 is summarized below and includes items expensed as incurred:



	Accrued Charges at December 31, 2013		Charges and Adjustments			Payments			Accrued Charges at September 30, 2014
	(In thousands)
Cash charges:
Workforce reduction costs	$	9,028	$	(1,916	)	$	(4,519	)	$	2,593
Shutdown costs	—		3,366			(3,366		)	—
Lease obligations after shutdown	8,361		359			(1,504		)	7,216
Other	—		401			(401		)	—
Subtotal	$	17,389	2,210			$	(9,790	)	$	9,809
Noncash charges:
Write-down of assets (1)			1,631
Other, net			669
Total charges			$	4,510

(1)

The write-down of assets relates primarily to owned buildings, land and equipment of those facilities identified for closure. The assets were tested for recoverability at the time the decision to close the facilities was more likely than not to occur. Our methodology for testing the recoverability of the assets is consistent with the methodology described in the "Asset Impairment Charges" section above.