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Assets Held for Sale | 12 Months Ended
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Dec. 29, 2018
Property Plant And Equipment Assets Held For Sale Disclosure [Abstract] |
Assets Held for Sale |
Note 9. | Assets Held for Sale
The company repurchases distribution rights from IDPs in circumstances when the company decides to exit a territory or, in some cases, when the IDP elects to terminate its relationship with the company. In most 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 IDP. In the event an IDP terminates its relationship with the company, the company, although not legally obligated, may repurchase and operate those distribution rights as a company-owned territory. The IDPs may also sell their distribution rights to another person or entity. Distribution rights purchased from IDPs and operated as company-owned territories are recorded on the Consolidated Balance Sheets in the line item “Assets Held for Sale” while the company actively seeks another IDP to purchase the distribution rights for the territory. Distribution rights held for sale and operated by the company are sold to IDPs 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. The company sold 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 in the purchase price allocation. Subsequent to the acquisition of the Acquired Hostess Bread Assets, we determined that some of the acquired plants and depots did not meet our long-term operating strategy and were sold. 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 Consolidated Balance Sheets in the line item “Assets Held for Sale” and are included in the “Other” line item in the summary table below. During fiscal 2018, the company decided to sell its Tulsa, Oklahoma plant, which was a part of the Acquired Hostess Bread Assets and never placed in service. As a result, we recorded an impairment of $0.5 million. During fiscal 2016, the company decided to sell additional Acquired Hostess Bread Assets not specifically reserved for future use. As a result, we recorded an impairment of $5.3 million for these plants, depots, and equipment and completed the sale in the fourth quarter of fiscal 2016. The table below presents the proceeds from the sale of the Acquired Hostess Bread Assets for fiscal years 2018, 2017, and 2016 (amounts in thousands):
|  | Proceeds from sale of Acquired Hostess Bread Assets |
Fiscal 2018 |  | $ | 667 |
Fiscal 2017 |  | $ | 6,848 |
Fiscal 2016 |  | $ | 9,079 |
In addition to the impairments for the Acquired Hostess Bread Assets above, during the fourth quarter of our fiscal 2016, we recognized an impairment loss of $4.6 million for the difference between the carrying value and fair value of other assets classified as held for sale. Additional assets recorded in assets held for sale are for property, plant and equipment exclusive of the amounts disclosed as part of the Acquired Hostess Bread Assets and the disposal group discussed above. Also included in assets held for sale are property, plant and equipment of the Winston-Salem, North Carolina plant. The carrying values of assets held for sale are not amortized and are evaluated for impairment as required. The table below presents the assets held for sale as of December 29, 2018 and December 30, 2017, respectively (amounts in thousands):
|  | December 29, 2018 |  |  | December 30, 2017 |
Distribution rights |  | $ | 3,188 |  |  | $ | 13,584 |
Acquired Hostess Bread Assets plants and depots |  |  | 2,360 |  |  |  | 479 |
Other |  |  | 1,058 |  |  |  | 1,260 |
Total assets held for sale |  | $ | 6,606 |  |  | $ | 15,323 |

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