Company: THS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001320695-25-000089
Chunk: 27

Company: TreeHouse Foods, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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2024. During the third quarter of 2024, the Company exited a distribution center in Grand Prairie, Texas as it continued to execute upon integration activities associated with the Coffee Roasting Capability acquisition. The Company expects the total costs related to the Dallas facility closure and associated distribution network optimization to be approximately $14.0 million, and the cumulative costs incurred to date are $12.9 million. The costs incurred for the three months ended March 31, 2025 and March 31, 2024 were $0.7 million and $1.9 million, respectively.Expenses associated with these activities are recorded in Cost of sales and Other operating expense, net in the Condensed Consolidated Statements of Operations.

10

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

Below is a summary of costs by line item for the Restructuring Programs:Three Months EndedMarch 31,20252024(In millions)Cost of sales$2.8 $— Other operating expense, net15.5 6.7 Total$18.3 $6.7 Below is a summary of costs by type associated with the Restructuring Programs:Three Months EndedMarch 31,20252024 (In millions)Employee-related$10.1 $2.6 Other costs4.3 4.1 Asset-related3.9 — Total$18.3 $6.7  For the three months ended March 31, 2025 and 2024, employee-related costs primarily consisted of severance and retention related to restructuring programs; other costs primarily consisted of consulting services; and asset-related costs primarily consisted of inventory write-downs and accelerated depreciation. Employee-related and other costs are primarily recognized in Other operating expense, net in the Condensed Consolidated Statements of Operations, and asset-related costs are recognized in Cost of sales and Other operating expense, net in the Condensed Consolidated Statements of Operations.The table below presents the exit cost liability related to severance activity for the Restructuring Programs as of March 31, 2025: Severance (In millions)Balance as of December 31, 2024$1.8 Expenses recognized9.1 Cash payments(0.7)Balance as of March 31, 2025$10.2  The severance liabilities are included in Accrued expenses in the Condensed Consolidated