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 weeks ended March 25, 2012 or the thirteen weeks ended March 27, 2011 included the following:



	Facilities Closures^(a)		Administrative Integration^(b)		Total
	(In thousands, except positions eliminated)
Earliest implementation date	July 2009		January 2010
Latest expected completion date	September 2014		March 2012
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	19,379		—		19,379
Total exit or disposal costs	$	41,301	$	47,108	$	88,409

Costs incurred during the thirteen weeks ended March 25, 2012:
Employee-related costs	$	78	$	—	$	78
Asset impairment costs	960		382		1,342
Other exit or disposal costs	1,543		—		1,543
Total exit or disposal costs	$	2,581	$	382	$	2,963

Costs incurred during the thirteen weeks ended March 27, 2011:
Employee-related costs	$	—	$	540	$	540
Asset impairment costs	1,766		—		1,766
Total exit or disposal costs	$	1,766	$	540	$	2,306

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	6,793		—		6,793
Total exit or disposal costs	$	28,715	$	47,108	$	75,823

(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 Holdings, Inc. These included the closures of administrative offices in Georgia and Texas.

Accrued exit or disposal costs are included in Accrued expenses and other current liabilities 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 thirteen weeks ended March 25, 2012 and March 27, 2011:



	Accrued Severance			Accrued Inventory Charges			Total
	(In thousands)
Balance at December 25, 2011	$	90		$	793		$	883
Accruals	—			—			—
Payment /Disposal	(147		)	(136		)	(283		)
Adjustments	78			—			78
Balance at March 25, 2012	$	21		$	657		$	678

Balance at December 26, 2010	$	4,150		$	793		$	4,943
Accruals	1,101			—			1,101
Payment /Disposal	(3,258		)	—			(3,258		)
Adjustments	(561		)	—			(561		)
Balance at March 27, 2011	$	1,432		$	793		$	2,225

Exit or disposal costs were included on the following lines in the accompanying Condensed Consolidated Statements of Operations:



	Thirteen Weeks Ended
	March 25, 2012		March 27, 2011
	(In thousands)
Cost of sales	$	78	$	—
Operational restructuring charges	—		1,348
Selling, general and administrative expense	—		540
Administrative restructuring charges	2,885		418
Total exit or disposal costs	$	2,963	$	2,306

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 recognized during the thirteen weeks ended March 25, 2012 and March 27, 2011 are summarized below:



	Thirteen Weeks Ended
	March 25, 2012		March 27, 2011
	(In thousands)
Operational restructuring charges:
Asset impairment costs (Note 8. Property, Plant and Equipment)	$	—	$	1,348

Administrative restructuring charges:
Asset impairment costs (Note 8. Property, Plant and Equipment)	$	1,342	$	418
Loss on egg sales and flock depletion expensed as incurred	455		—
Other restructuring costs	1,088		—
Total administrative restructuring charges	$	2,885	$	418

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 Note 10). 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.