XML 42 R8.htm IDEA: XBRL DOCUMENT
v2.4.0.6

EXIT OR DISPOSAL ACTIVITIES | 6 Months Ended
--- | ---
Jun. 24, 2012
Restructuring and Related Activities [Abstract] |
Restructuring and Related Activities Disclosure [Text Block] | 2. 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 twenty-six weeks ended June24,2012or the thirteen and twenty-six weeks ended June26,2011included the following:
|  |  |  |  | Administrative |  |  |
|  | Facility Closures(a) |  | Integration(b) |  | Total
|  | (In thousands, except positions eliminated)
Earliest implementation date |  |  | October2008 |  |  | January2010 |  |  |
Latest expected completion date |  |  | September2014 |  |  | March2012 |  |  |
Positions eliminated |  |  | 2,410 |  |  | 480 |  |  | 2,890
Costs expected to be incurred: |  |  |  |  |  |  |  |  |
Employee-related costs |  | $ | 3,170 |  | $ | 14,578 |  | $ | 17,748
Asset impairment costs |  |  | 17,902 |  |  | 32,530 |  |  | 50,432
Inventory valuation costs |  |  | 850 |  |  | — |  |  | 850
Other exit or disposal costs |  |  | 19,433 |  |  | — |  |  | 19,433
Total exit or disposal costs |  | $ | 41,355 |  | $ | 47,108 |  | $ | 88,463
Costs incurred since inception: |  |  |  |  |  |  |  |  |
Employee-related costs |  | $ | 3,170 |  | $ | 14,578 |  | $ | 17,748
Asset impairment costs |  |  | 17,902 |  |  | 32,530 |  |  | 50,432
Inventory valuation costs |  |  | 850 |  |  | — |  |  | 850
Other exit or disposal costs |  |  | 7,181 |  |  | — |  |  | 7,181
Total exit or disposal costs |  | $ | 29,103 |  | $ | 47,108 |  | $ | 76,211
|  | Thirteen Weeks Ended June 24, 2012 |  | Twenty-Six Weeks Ended June 24, 2012
|  | Facility |  | Administrative |  |  |  |  | Facility |  | Administrative |  |  |
|  | Closures |  | Integration |  | Total |  | Closures |  | Integration |  | Total
|  | (In thousands)
Employee-related costs |  | $ | — |  | $ | — |  | $ | — |  | $ | 78 |  | $ | — |  | $ | 78
Asset impairment costs |  |  | — |  |  | — |  |  | — |  |  | 960 |  |  | 382 |  |  | 1,342
Other exit or disposal costs |  |  | 389 |  |  | — |  |  | 389 |  |  | 1,932 |  |  | — |  |  | 1,932
Total exit or disposal costs |  | $ | 389 |  | $ | — |  | $ | 389 |  | $ | 2,970 |  | $ | 382 |  | $ | 3,352
|  | Thirteen Weeks Ended June 26, 2011 |  | Twenty-Six Weeks Ended June 26, 2011
|  | Facility |  | Administrative |  |  |  |  | Facility |  | Administrative |  |  |
|  | Closures |  | Integration |  | Total |  | Closures |  | Integration |  | Total
|  | (In thousands)
Employee-related costs |  | $ | — |  | $ | 76 |  | $ | 76 |  | $ | — |  | $ | 616 |  | $ | 616
Asset impairment costs |  |  | 1,957 |  |  | 850 |  |  | 2,807 |  |  | 3,723 |  |  | 850 |  |  | 4,573
Total exit or disposal costs |  | $ | 1,957 |  | $ | 926 |  | $ | 2,883 |  | $ | 3,723 |  | $ | 1,466 |  | $ | 5,189
(a) |  | Significant facilities closed included one processing plant in2008, two processing plants in2009, two processing plants in the transition period and one processing plant in2011. The transition period began September27,2009and ended December27,2009and resulted from the Company's change in its fiscal year end from the Saturday nearest September30each 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 twenty-six weeks ended June24,2012 and June26,2011:
|  |  |  |  |  | Accrued |  |  |  |
|  | Accrued |  | Inventory |  |  |  |
|  | Severance |  | Charges |  | Total
|  | (In thousands)
Balance at December25,2011 |  | $ | 90 |  |  | $ | 793 |  |  | $ | 883 |
Accruals |  |  | — |  |  |  | — |  |  |  | — |
Payment /Disposal |  |  | (155 | ) |  |  | (136 | ) |  |  | (291 | )
Adjustments |  |  | 78 |  |  |  | — |  |  |  | 78 |
Balance at June24,2012 |  | $ | 13 |  |  | $ | 657 |  |  | $ | 670 |
Balance at December26,2010 |  | $ | 4,150 |  |  | $ | 793 |  |  | $ | 4,943 |
Accruals |  |  | 1,290 |  |  |  | — |  |  |  | 1,290 |
Payment /Disposal |  |  | (3,864 | ) |  |  | — |  |  |  | (3,864 | )
Adjustments |  |  | (674 | ) |  |  | — |  |  |  | (674 | )
Balance at June26,2011 |  | $ | 902 |  |  | $ | 793 |  |  | $ | 1,695 |
Exit or disposal costs were included on the following lines in the accompanying Condensed Consolidated Statements of Operations:
|  | Thirteen Weeks Ended |  | Twenty-Six Weeks Ended
|  | June 24, 2012 |  | June 26, 2011 |  | June 24, 2012 |  | June 26, 2011
|  | (In thousands)
Cost of sales |  | $ | 0 |  | $ | 0 |  | $ | 78 |  | $ | 0
Operational restructuring charges |  |  | — |  |  | 1,957 |  |  | — |  |  | 3,305
Selling, general and administrative expense |  |  | — |  |  | 76 |  |  | 0 |  |  | 616
Administrative restructuring charges |  |  | 389 |  |  | 850 |  |  | 3,274 |  |  | 1,268
Total exit or disposal costs |  | $ | 389 |  | $ | 2,883 |  | $ | 3,352 |  | $ | 5,189
Certain exit or disposal costs were classified as either Operational restructuring charges or Administrative restructuring charges on the accompanying Condensed Consolidated Statements of Operations because management believed these costs were not directly related to the Company’s ongoing operations. Components of operating restructuring charges and administrative restructuring charges are summarized below:
|  | Thirteen Weeks Ended |  | Twenty-Six Weeks Ended
|  | June 24, 2012 |  | June 26, 2011 |  | June 24, 2012 |  | June 26, 2011
|  | (In thousands)
Operational restructuring charges: |  |  |  |  |  |  |  |  |  |  |  |
Asset impairment costs (Note8. Property, Plant and |  |  |  |  |  |  |  |  |  |  |  |
Equipment) |  | $ | — |  | $ | 1,957 |  | $ | — |  | $ | 3,305
Administrative restructuring charges: |  |  |  |  |  |  |  |  |  |  |  |
Asset impairment costs (Note8. Property, Plant and |  |  |  |  |  |  |  |  |  |  |  |
Equipment) |  | $ | — |  | $ | 850 |  | $ | 1,342 |  | $ | 1,268
Loss on egg sales and flock depletion expensed as |  |  |  |  |  |  |  |  |  |  |  |
incurred |  |  | 54 |  |  | — |  |  | 509 |  |  | —
Other restructuring costs |  |  | 335 |  |  | — |  |  | 1,423 |  |  | —
Total administrative restructuring charges |  | $ | 389 |  | $ | 850 |  | $ | 3,274 |  | $ | 1,268
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, employee relocation and voluntary and involuntary employee separation programs. Any such actions may require us to obtain the pre-approval of our lenders under our U.S. Credit Facility (as defined in Note10- Long-term Debt and Other Borrowing Arrangements). 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.

X
- Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration