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.