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Merger And Integration Activities
9 Months Ended
Sep. 29, 2012
Business Combination, Description [Abstract]  
Merger And Integration Activities
MERGER AND INTEGRATION ACTIVITIES
On December 6, 2010, Lance, Inc. and Snyder’s of Hanover, Inc. completed a merger (“Merger”) to create Snyder’s-Lance, Inc. The primary focus of our integration activities throughout 2011 and the first half of 2012 was on the execution of our plan to convert the vast majority of company-owned routes to an independent business owner (“IBO”) distribution structure. This conversion was complete by the end of the second quarter of 2012. However, the sale and associated financing of certain route businesses are still in process.
During the quarters ended September 29, 2012, and October 1, 2011, we incurred $0.2 million and $3.4 million, respectively, in severance costs and professional fees related to the Merger and integration activities, which are included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income. In addition, for the quarter ended September 29, 2012, we recorded a net gain of $1.4 million from the sale of route businesses, most of which were associated with the conversion to an IBO distribution structure. This compared to $3.5 million in net gains on the sale of route businesses in the third quarter of 2011, which were almost all associated with the IBO conversion.
During the nine months ended September 29, 2012, and October 1, 2011, costs incurred associated with the Merger and integration activities included severance and professional fees of $1.9 million and $18.2 million, respectively. These costs are included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income. In addition, we recorded a net gain of $21.6 million from the sale of route businesses, most of which were associated with the conversion to an IBO distribution structure, for the nine months ended September 29, 2012, compared with a gain of $3.8 million for the nine months ended October 1, 2011.
In the fourth quarter of 2011, we announced the closing of the Corsicana, Texas manufacturing facility. In conjunction with the closure of the facility, many of the assets were relocated to other manufacturing locations throughout the Company. Expenses incurred as part of the relocation process were $2.0 million for the nine months ended September 29, 2012, and were included in cost of sales in the Condensed Consolidated Statements of Income. The land and building in Corsicana, Texas remain in assets held for sale in the Condensed Consolidated Balance Sheets at $1.9 million at September 29, 2012. In addition, during the quarter ended September 29, 2012, we made the decision to close our Greenville, TX warehouse. Severance, lease termination costs and losses on the disposal of fixed assets totaling $0.8 million were recorded in conjunction with the closing of the warehouse during the quarter ended September 29, 2012.
During the nine months ended October 1, 2011, we recorded $10.1 million in asset impairment charges in other expense/(income), net in the Condensed Consolidated Statements of Income related to the decision to sell route trucks prior to the end of their useful lives. As of September 29, 2012, we have $0.6 million, net of impairment, in route trucks classified as assets held for sale in the Condensed Consolidated Balance Sheets.