Restructuring and Impairment Charges

Restructuring costs, goodwill and long-lived asset impairments, and a valuation allowance recorded in the Consolidated Statements of Comprehensive Income are as follows (in thousands):



	2018			2017		2016
Cost of sales - accelerated depreciation	$	—		$	10,327	$	5,302

Restructuring charges	$	2,325		$	6,205	$	5,229
Goodwill and long-lived asset impairments	15,200			20,947		5,776
Valuation allowance of long-term note receivable	(1,800		)	10,264		—
Restructuring and impairment charges	$	15,725		$	37,416	$	11,005

Restructuring costs in 2018 were primarily incurred as part of the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana. Impairment charges include the impairment of goodwill and long-lived assets for office furniture companies and an impairment charge from the sale of the closed manufacturing facility in Paris, Kentucky. The Corporation also recovered a portion of a long-term note receivable previously impaired.

Restructuring costs in 2017, which include accelerated depreciation recorded in "Cost of sales" in the Consolidated Statements of Comprehensive Income, were primarily incurred as part of the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana. As of December 30, 2017, the estimated fair value of the Paris, Kentucky hearth manufacturing facility of $4.6 million was classified as held for sale and is included in "Prepaid expenses and other current assets" in the Consolidated Balance Sheets.

Restructuring costs in 2016, which include accelerated depreciation recorded in "Cost of sales" in the Consolidated Statements of Comprehensive Income, were primarily incurred as part of the previously announced closures of the Paris, Kentucky hearth manufacturing facility and the Orleans, Indiana office furniture manufacturing facility.

See "Note 7. Goodwill and Other Intangible Assets" in the Notes to Consolidated Financial Statements for more information on goodwill and long-lived asset impairments.

See "Note 5. Acquisitions and Divestitures" in the Notes to Consolidated Financial Statements for more information on the valuation allowance of a long-term note receivable.

The accrued restructuring expenses are expected to be paid in the next twelve months and are included in "Accounts payable and accrued expenses" in the Consolidated Balance Sheets. The following is a summary of changes in restructuring accruals (in thousands):



	Severance Costs			Facility Exit Costs & Other			Total
Restructuring allowance as of January 2, 2016	$	206		$	15		$	221
Restructuring charges	3,883			1,346			5,229
Cash payments	(1,385		)	(1,361		)	(2,746		)
Restructuring allowance as of December 31, 2016	2,704			—			2,704
Restructuring charges	1,436			4,769			6,205
Cash payments	(2,797		)	(4,253		)	(7,050		)
Restructuring allowance as of December 30, 2017	1,343			516			1,859
Restructuring charges	355			1,970			2,325
Cash payments	(1,562		)	(2,336		)	(3,898		)
Restructuring allowance as of December 29, 2018	$	136		$	150		$	286

Real Estate Transaction

As part of the Corporation's continued efforts to drive efficiency and simplification, the Corporation entered into a sale-leaseback transaction in the first quarter of 2018, selling a manufacturing facility and subsequently leasing back a portion of the facility for a term of 10 years. The net proceeds from the sale of the facility of $16.9 million are reflected in "Proceeds from sale and license of property, plant, equipment, and intangibles" in the Consolidated Statements of Cash Flows. In accordance with ASC 840, Leases, the $5.1 million gain on the sale of the facility was deferred and is being amortized as a reduction to rent expense evenly over the term of the lease. As of December 29, 2018, the current portion of the deferred gain is $0.5 million and included within "Accounts payable and accrued expenses" and the long-term portion of the deferred gain is $4.2 million and included within "Other Long-Term Liabilities" in the Consolidated Balance Sheets. The transaction did not have a material impact to the Consolidated Statements of Comprehensive Income.