In Fiscal 2016, we announced the launch of Project Centennial, a comprehensive business and operational review. We identified opportunities to enhance revenue growth, streamline operations, improve efficiencies, and make investments that strengthen our competitive position and improve margins over the long term. We began Project Centennial with an evaluation of our brands, product mix, and organizational structure. Most importantly, Project Centennial marked a significant shift in mindset from a sales and operations focused enterprise to a brand focused, consumer focused packaged foods company. Strategic priorities developed as part of Project Centennial were designed to improve margins and profitably grow revenue over time. These priorities included: reducing costs to fuel growth, developing leading capabilities, reinvigorating core business, and capitalizing on product adjacencies.

The company operated under an organizational structure established with two business units (“BUs”), Fresh Bakery and Snacking/Specialty since May of 2017, and realigned key leadership roles. This structure also provided for centralized marketing, sales, supply chain, shared-services/administrative, and corporate strategy functions, each with more clearly defined roles and responsibilities. On July 17, 2020, the company implemented additional organizational structure changes designed to increase focus on brand growth, product innovation, and improving underperforming bakeries. Elimination of the BUs and adoption of a brand focused organizational structure was completed in the third quarter of Fiscal 2020 and the company continues to report our financial results in one operating segment. See Note 1, Basis of Presentation for a description of our segment presentation.

Today, we have an organization dedicated to the consumer and we have refined our strategic priorities as further described below. We are hyper-focused on growing our brands and committed to real innovation to drive growth, with a renewed sense of passion about cost management. We have updated the strategic priorities to include the following:

Focus on brands: Enhance relevancy and expand presence. This objective is to invest in our brands to align brands to consumers to maximize our return on investment. We expect to incur significant incremental marketing costs annually for brand development. These costs will not be restructuring and will be recognized as incurred.

Smart M&A: Disciplined approach to acquisitions in baked foods that enhance our branded portfolio and margin profile.

Unless otherwise noted, restructuring related costs are recorded in the restructuring and related impairments line item on our Consolidated Statements of Income.

The table below presents the components of costs associated with Project Centennial (amounts in thousands):

	Fiscal 2020		Fiscal 2019		Fiscal 2018
Restructuring and related impairment charges:
Reorganization costs	$	—	$	253	$	4,209
Lease termination charges		4,077		—		—
Impairment charges, net of gain on sale		23,627		20,229		5,593
Employee termination benefits (credits)		7,779		3,042		(35	)
Restructuring and related impairment charges (1)		35,483		23,524		9,767
Project Centennial implementation costs (2)		15,548		784		9,723
Total Project Centennial restructuring and implementation costs	$	51,031	$	24,308	$	19,490

The table below details the restructuring impairments (inclusive of property, plant and equipment, ingredient and packaging, and spare parts and intangible assets) that were recognized during Fiscal 2020, 2019, and 2018 (amounts in thousands):

	Fiscal 2020		Fiscal 2019			Fiscal 2018
Plant closure costs	$	5,747	$	5,133		$	3,156
Line and distribution depot closure costs		629		356			661
Spare parts		734		174			238
Brand rationalization study impairments		7,120		15,399			1,538
Lease impairment charges		9,397		—			—
Gain on sale		—		(833	)		—
Total restructuring impairment of assets	$	23,627	$	20,229		$	5,593

In order to optimize sales and production of our organic products, the company decided to cease using the Alpine Valley finite-lived trademark, resulting in a $4.6 million impairment charge in the second quarter of Fiscal 2020. In the fourth quarter of Fiscal 2020, the company decided to cease using one of its regional brands and recognized an additional $1.3 million impairment charge. Additionally, we recognized $1.2 million of ingredient and packaging impairments as a result of brand and product rationalization initiatives.

During Fiscal 2020, the company sold three closed bakeries that were included in assets held for sale and certain idle equipment at other bakeries that were included in property, plant, and equipment, resulting in the recognition of $5.7 million of impairment

charges. Additionally, the company recognized property, plant, and equipment impairment charges of $0.6 million for manufacturing line and distribution depot closures and an office building it has decided to sell, and $0.7 million for spare parts related to equipment the company no longer intends to use.

In order to optimize our distribution network, we vacated certain distribution depots during Fiscal 2020, some of which are owned and others that were leased. This resulted in the recognition of lease impairment charges totaling $9.4 million and lease termination charges of $4.1 million.

During Fiscal 2020, the company incurred $2.6 million of employee termination benefits charges related to a voluntary employee separation incentive plan (the “VSIP”). Additionally, the company announced an involuntary reduction-in-force plan (the “RIF”) and recognized charges of $5.3 million during Fiscal 2020. These charges consisted primarily of employee severance and benefits-related costs. All remaining payments related to the plans were paid in early Fiscal 2021.

We began relocating certain employees during the third quarter of Fiscal 2017 as we transition to the enhanced organizational structure. Reorganization costs of $0.3 million and $4.2 million for Fiscal years 2019 and 2018, respectively, for relocating employees were incurred. Additionally, a brand rationalization study which identified certain regional brand products that transitioned to national brands resulted in an additional impairment charge of $15.4 million on certain finite-lived intangible assets.

The company recognized an impairment charge of $3.9 million and severance costs of $1.5 million during the third quarter of Fiscal 2019 for the Opelika, Alabama plant closure costs. The company recognized impairment charges during the first quarter of Fiscal 2019 related to manufacturing line closures of $0.4 million. During the second quarter of Fiscal 2019, an impairment charge of $1.3 million was recognized for a closed plant recorded in assets held for sale.

On November 6, 2018, the company announced the closure of a bakery in Brattleboro, Vermont. The bakery was closed during the fourth quarter of Fiscal 2018 and consisted of a $2.5 million charge for property, plant, and equipment and a charge of $0.2 million for spare parts. An additional $0.5 million was related to a decision to sell a plant that is classified as held for sale. Also, during Fiscal 2018, the company recognized $0.7 million for closing various equipment lines at certain plants and $1.5 million of impairment charges related to a product rationalization study resulting in the write-off of certain ingredient, packaging, and advertising displays for discontinued items.

Employee termination benefits in Fiscal 2018 were primarily for severance related to the bakery closure discussed above, net of an adjustment to the VSIP charge recognized in Fiscal 2017.

The table below presents the components of, and changes in, our restructuring accruals (amounts in thousands):

	VSIP			RIF			Employee termination benefits⁽¹⁾			Reorganization costs⁽²⁾			Distribution Network Optimization			Total
Liability balance at December 30, 2017	$	25,022		$	—		$	468		$	—		$	—		$	25,490
Charges		(606	)		—			571			4,209			—			4,174
Cash payments		(24,242	)		—			(812	)		(4,209	)		—			(29,263	)
Liability balance (3) at December 29, 2018	$	174		$	—		$	227		$	—		$	—		$	401
Charges		—			—			3,042			253			—			3,295
Cash payments		—			—			(1,819	)		(253	)		—			(2,072	)
Liability balance (3) at December 28, 2019	$	174		$	—		$	1,450		$	—		$	—		$	1,624
Charges		2,639			5,289			(149	)		—			4,077			11,856
Cash payments		(1,777	)		(4,817	)		(1,301	)		—			(4,077	)		(11,972	)
Liability balance (3) at January 2, 2021	$	1,036		$	472		$	—		$	—		$	—		$	1,508

During Fiscal 2018, we paid $24.2 million related to the VSIP implemented during Fiscal 2017 as part of our restructuring efforts.