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EXIT OR DISPOSAL ACTIVITIES | 9 Months Ended
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Sep. 29, 2013
EXIT OR DISPOSAL ACTIVITIES [Abstract] |
EXIT OR DISPOSAL ACTIVITIES | 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.

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- 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 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=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 3: 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=27011515&loc=d3e140904-122747 Reference 4: 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 + Details
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