15.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 2013, 2012 and 2011 included the following:

			JBS USA
	Facility Closures^(a)		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	$	32,311	$	34,803
Asset impairment costs		25,018		38,514		63,532
Inventory valuation costs		344		-		344
Other exit or disposal costs		15,207		11,336		26,543
Total exit or disposal costs	$	43,061	$	82,161	$	125,222
Costs incurred since earliest implementation date:
Employee-related costs	$	2,492	$	32,311	$	34,803
Asset impairment costs		25,018		38,514		63,532
Inventory valuation costs		344		-		344
Other exit or disposal costs		14,241		11,336		25,577
Total exit or disposal costs	$	42,095	$	82,161	$	124,256

	2013						2012							2011
	Facility		JBS USA				Facility		JBS USA					Facility		JBS USA
	Closures(a)		Integration(b)		Total		Closures(a)		Integration(b)			Total		Closures(a)		Integration(b)		Total
	(In thousands)
Employee-related
costs	$	-	$	-	$	-	$	65	$	-		$	65	$	647	$	405	$	1,052
Asset impairment
costs		3,177		466		3,643		3,868		(1,098	)		2,770		9,203		13,693		22,896
Inventory
valuation costs		-		-		-		151		-			151		-		-		-
Other exit or
disposal costs		2,018		-		2,018		3,685		1,994			5,679		5,249		-		5,249
Total exit or
disposal costs	$	5,195	$	466	$	5,661	$	7,769	$	896		$	8,665	$	15,099	$	14,098	$	29,197

(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 Consolidated Balance Sheets. The following table sets forth activity that was recorded through the Company's accrued exit or disposal cost accounts during 2013 and 2012:

	Accrued			Inventory
	Severance			Reserves			Total
	(In thousands)
December 25, 2011	$	90		$	793		$	883
Accruals		65			151			216
Payment/Disposal	(155		)		(136	)		(291	)
December 30, 2012		-			808			808
Accruals		-			-			-
Payment/Disposal		-			(808	)		(808	)
December 29, 2013	$	-		$	-		$	-

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

	2013		2012		2011
	(In thousands)
Cost of sales	$	-	$	216	$	-
Operational restructuring charges		-		-		1,958
Selling, general and administrative expense		-		-		328
Administrative restructuring charges		5,661		8,449		26,911
Total exit or disposal costs	$	5,661	$	8,665	$	29,197

Certain exit and disposal costs were classified as either Operational restructuring charges, net or Administrative restructuring charges, net on the accompanying Consolidated Statements of Operations because management believed these costs were not directly related to the Company's ongoing operations. Components of operational restructuring charges and administrative restructuring charges are summarized below:

	2013		2012		2011
	(In thousands)
Operational restructuring charges:
Relocation charges expensed as incurred	$	-	$	-	$	-
Asset impairments (See "Note 8. Property, Plant and Equipment")		-		-		1,958
Loss on egg sales and flock depletion expensed as incurred		-		-		-
Total	$	-	$	-	$	1,958
Administrative restructuring charges:
Severance charges	$	-	$	-	$	724
Relocation charges expensed as incurred		-		-		-
Asset impairments (See "Note 8. Property, Plant and Equipment")		3,643		2,770		20,938
Loss on scrapped inventory expensed as incurred		-		-		-
Loss on egg sales and flock depletion expensed as incurred		-		509		2,390
Other restructuring costs		2,018		5,170		2,859
Total	$	5,661	$	8,449	$	26,911

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.