RESTRUCTURING-RELATED ACTIVITIES

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

RESTRUCTURING-RELATED ACTIVITIES

RESTRUCTURING-RELATED ACTIVITIES

In 2018, the Company elected to close its 40 North Foods product incubator operation located in Boulder, Colorado. Implementation of this restructuring initiative is expected to result in total pre-tax charges of approximately $0.7 million, and approximately $0.6 million of these charges are estimated to result in cash outlays. These activities were initiated in the second quarter of 2018 and are expected to be substantially completed by the third quarter of 2019.

In 2017, the Company initiated a restructuring initiative to capitalize on cost-saving opportunities within its GNP operations located in Luverne, Minnesota and St. Cloud, Minnesota. Implementation of the initiative is expected to result in total pre-tax charges of approximately $7.0 million, and approximately $5.4 million of these charges are estimated to result in cash outlays. These activities were initiated in the first quarter of 2017 and are expected to be substantially completed by the second quarter of 2020.

The following table provides a summary of our estimates of costs associated with each restructuring initiative by major type of cost:

Type of Cost	40 North Foods		GNP		Total Estimated Amount Expected to be Incurred
	(In thousands)
Employee termination benefits	$	449	$	4,074	$	4,523
Inventory impairments	—		472		472
Asset impairments	103		470		573
Other charges(a)	150		1,983		2,133
	$	702	$	6,999	$	7,701

^(a)  Comprised of other costs directly related to the restructuring initiatives, including prepaid software impairment, St. Cloud, Minnesota office lease costs, Luverne, Minnesota plant closure costs, and Boulder, Colorado office lease costs.

During the thirteen weeks ended March 31, 2019, the Company recognized the following expenses (income) and incurred the following cash outlays related to each restructuring initiative:

	Expenses (Income)			Cash Outlays
	(In thousands)
40 North Foods other charges	$	(27	)	$	1
GNP employee termination benefits	—			34
	$	(27	)	$	35

These expenses (income) are reported in the line item Administrative restructuring activity on the Condensed Consolidated Statements of Income and are recognized in the U.S. segment.

The following table reconciles liabilities and reserves associated with each restructuring initiative from initiative inception to March 31, 2019. Ending liability balances for employee termination benefits and other charges are reported in the line item Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets. The ending reserve balance for inventory impairments is reported in the line item Inventories in our Condensed Consolidated Balance Sheets.

	40 North Foods Initiative									GNP Initiative
	Employee Termination Benefits			Other Charges			Total			Employee Termination Benefits			Inventory Impairments			Other Charges			Total
	(In thousands)
Restructuring charges incurred	$	—		$	—		$	—		$	3,381		$	699		$	752		$	4,832
Payments and disposals	—			—			—			(2,581		)	—			—			(2,581		)
Liability or reserve at December 31, 2017	—			—			—			800			699			752			2,251
Restructuring charges incurred	449			115			564			936			(227		)	(17		)	692
Payments and disposals	(449		)	(29		)	(478		)	(1,500		)	(472		)	(735		)	(2,707		)
Liability or reserve at December 30, 2018	—			86			86			236			—			—			236
Restructuring income recognized	—			(27		)	(27		)	—			—			—			—
Payments and disposals	—			(1		)	(1		)	(34		)	—			—			(34		)
Liability or reserve at March 31, 2019	$	—		$	58		$	58		$	202		$	—		$	—		$	202