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ASSETS HELD FOR SALE | 9 Months Ended
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Oct. 08, 2016
Property Plant And Equipment Assets Held For Sale Disclosure [Abstract] |
ASSETS HELD FOR SALE | 17. ASSETS HELD FOR SALE The company purchases distribution rights from and sells distribution rights to independent distributors from time to time. The company repurchases distribution rights from independent distributors in circumstances when the company decides to exit a territory or, in some cases, when the independent distributor elects to terminate the relationship with the company. In the majority of the Distributor Agreements, if the company decides to exit a territory or stop using the independent distribution model in a territory, the company is contractually required to purchase the distribution rights from the independent distributor. In the event an independent distributor terminates his or her relationship with the company, the company, although not legally obligated, may repurchase and operate those distribution rights as a company-owned territory. The independent distributors may also sell their distribution rights to another person or entity. Distribution rights purchased from independent distributors and operated as company-owned territories are recorded on the company’s Condensed Consolidated Balance Sheet in the line item “Assets Held for Sale” while the company actively seeks another independent distributor to purchase the distribution rights for the territory. Distributions rights held for sale and operated by the company are sold to independent distributors at fair market value pursuant to the terms of a Distributor Agreement. There are multiple versions of the Distributor Agreement in place at any given time and the terms of such Distributor Agreements vary. When this occurs, the company records a liability for this amount during the six-month period. If the independent distributor’s truck is leased, the company will assume the lease payment (but not the lease) until such time as the distribution rights are sold to a new purchaser or until the expiration of the six month period, whichever comes first. Under a majority of Distributor Agreements, should the independent distributor wish to sell the distribution rights after the six-month period has expired, the company has a right of first refusal but is not required to purchase the distribution rights. After the six-month period expires, if the distribution rights have not sold and the business is still being operated by the company, a liability is recorded as deferred income and will be recognized over the term of the distribution rights’ note receivable. The company is also selling certain plants and depots that it acquired in July 2013 from Hostess Brands, Inc., which initially included 20 closed plants and 36 depots (the “Acquired Hostess Bread Assets”). The Acquired Hostess Bread Assets were originally recorded as held and used. Subsequent to the acquisition of the Acquired Hostess Bread Assets, we determined that some of the acquired plants and depots do not meet our long-term operating strategy, and we are actively marketing them for sale. Since the acquisition, the company has sold ten plants and 19 depots through October 8, 2016. Three of the plants have been opened, four of the plants are currently reported as held for sale (and are being actively marketed for sale) and three of the plants are under review for future use. We continually review the Acquired Hostess Bread Assets and during our third quarter of fiscal 2016 we decided to market an additional plant as held for sale. There are certain other properties not associated with the Acquired Hostess Bread Assets that are also in the process of being sold. These assets are recorded on the Condensed Consolidated Balance Sheet in the line item “Assets Held for Sale” and are included in the “Other” line item in the summary table below. Additional assets recorded in assets held for sale are for property, plant and equipment, exclusive of the assets acquired as part of the Acquired Hostess Bread Assets discussed above. The carrying values of assets held for sale are not amortized and are evaluated for impairment as required at the end of the reporting period. The table below presents the assets held for sale as of October 8, 2016 and January 2, 2016, respectively (amounts in thousands):
|  | October 8, 2016 |  |  | January 2, 2016 |
Distributor territories |  | $ | 30,780 |  |  | $ | 28,325 |
Acquired Hostess Bread Assets plants and depots |  |  | 7,764 |  |  |  | 3,082 |
Other |  |  | 5,142 |  |  |  | 4,784 |
Total assets held for sale |  | $ | 43,686 |  |  | $ | 36,191 |

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