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

6 Months Ended

Jun. 30, 2014

Restructuring and Related Activities [Abstract]

Approved Plans and Related Charges

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

	Three Months Ended June 30				Six Months Ended June 30
	2014		2013		2014		2013
	(In thousands)
Closure of Facilities(1)	$	728	$	4,173	$	1,705	$	5,175
Functional Realignment(2)	—		415		—		518
Field and Functional Reorganization (3)	—		351		—		4,851
Other	—		—		—		5
Total	$	728	$	4,939	$	1,705	$	10,549

(1) These charges in 2014 and 2013 primarily relate to facility closures in Riverside, California; Denver, Colorado; Dallas, Texas; Waco, Texas; Springfield, Virginia; Buena Park, California; Evart, Michigan; Bangor, Maine; and Mendon, Massachusetts; as well as other approved closures. We have incurred $39.9 million of charges related to these initiatives to date. We expect to incur additional charges related to these facility closures of approximately $2.8 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 costs from the organization. We have incurred total charges of approximately $33.1 million under this initiative to date 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 to date, all of which are 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 six months ended June 30, 2014 is summarized below and includes items expensed as incurred:

	Accrued Charges at December 31, 2013		Charges and Adjustments			Payments			Accrued Charges at June 30, 2014
	(In thousands)
Cash charges:
Workforce reduction costs	$	9,028	$	(44	)	$	(1,729	)	$	7,255
Shutdown costs	—		1,355			(1,355		)	—
Lease obligations after shutdown	8,361		246			(1,032		)	7,575
Other	—		207			(207		)	—
Subtotal	$	17,389	1,764			$	(4,323	)	$	14,830
Noncash charges:
Other, net			(59		)
Total charges			$	1,705