Company: THS
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001320695-25-000107
Chunk: 43

Company: TreeHouse Foods, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 during the third quarter of 2024. As a result of this distribution center exit, an impairment of $0.9 million of Operating lease right-of-use assets was recognized in our Grand Prairie asset group in the third quarter of 2024.Ready-to-drink Business Exit — During the second quarter of 2024, the Company made the decision to exit the Ready-to-drink ("RTD") business as part of the Company's portfolio optimization strategy to focus on higher-growth, higher margin categories. During the first quarter of 2025, production for the RTD business ceased, and the Company sold the related machinery and equipment. The total costs related to the business exit are expected to be approximately $4.0 million, and the cumulative costs incurred to date are $3.9 million. These costs include the decommissioning and disposal of related assets and inventory, as well as other transitioning costs. The costs for the three and nine months ended September 30, 2025 were $0.5 million and $2.0 million, respectively. Refer to Note 7 for additional information regarding the impairment of the RTD asset group in the second quarter of 2024.Below is a summary of costs by type associated with the facility closures: Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(In millions)Asset-related$4.9 $2.6 $9.4 $2.6 Employee-related3.8 0.2 5.4 0.2 Other costs4.5 0.9 6.8 5.3 Total$13.2 $3.7 $21.6 $8.1  

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TREEHOUSE FOODS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

For the three and nine months ended September 30, 2025 and 2024, asset-related costs consisted of accelerated depreciation,  inventory write-downs, operating lease right-of-use asset impairment, and loss on disposals of property, plant, and equipment; employee-related costs primarily consisted of severance and retention related to restructuring programs; other costs primarily consisted of third party and associated costs related to facility plant closures. Asset-related and other costs are recognized in Cost of sales and Other operating expense, net, and employee-related costs are recognized in Other operating expense, net in the Condensed Consolidated