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

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

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



	Year Ended December 31
	2015		2014		2013
	(In thousands)
Closure of facilities(1)	$	19,844	$	4,460	$	20,845
Functional Realignment(2)	—		—		892
Field and Functional Reorganization(3)	—		—		5,266
Other	—		—		5
Total	$	19,844	$	4,460	$	27,008

(1)

These charges in 2015, 2014 and 2013 primarily relate to facility closures in Rochester, Indiana; Riverside, California; Delta, Colorado; Denver, Colorado; Dallas, Texas; Waco, Texas; Springfield, Virginia; Buena Park, California; Evart, Michigan; Bangor, Maine; Shreveport, Louisiana; Mendon, Massachusetts, and Sheboygan, Wisconsin; as well as other approved but unannounced plant closures. We have incurred $65.1 million of charges to date related to our active restructuring initiatives. We expect to incur additional charges related to these facility closures of $9.3 million, related to contract termination, shutdown and other costs. As we continue the evaluation of our supply chain and distribution network, 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 through 2015 and we do not expect to incur any material future charges related to this initiative.

(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 incurred total charges of $11.3 million under this plan through 2015, all of which were associated with headcount reductions. We do not currently anticipate incurring any material charges under this initiative going forward.

Facility Closing and Reorganization Costs

Activity for 2015 and 2014 with respect to facility closing and reorganization costs is summarized below and includes items expensed as incurred:



	Accrued Charges at December 31, 2013		Charges and Adjustments			Payments			Accrued Charges at December 31, 2014		Charges and Adjustments			Payments			Accrued Charges at December 31, 2015
	(In thousands)
Cash charges:
Workforce reduction costs	$	9,028	$	(2,877	)	$	(4,868	)	$	1,283	$	8,803		$	(4,610	)	$	5,476
Shutdown costs	—		4,822			(4,822		)	—		2,506			(2,506		)	—
Lease obligations after shutdown	8,361		446			(1,952		)	6,855		149			(1,718		)	5,286
Other	—		598			(598		)	—		1,041			(1,041		)	—
Subtotal	$	17,389	2,989			$	(12,240	)	$	8,138	12,499			$	(9,875	)	$	10,762
Non-cash charges:
Write-down of assets(1)			5,384								10,531
(Gain)/Loss on sale of related assets			(4,754		)						(3,489		)
Other, net			841								303
Total charges			$	4,460							$	19,844

(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.