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Restructuring Charges
 12 Months Ended
Jan. 03, 2015
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Restructuring Charges
We account for exit and disposal costs by recognizing a liability for costs associated with an exit or disposal activity at fair value in the period in which it is incurred, or when the we cease using the right conveyed by a contract (i.e., the right to use a leased property). We account for severance and outplacement costs by recognizing a liability for employees’ rights to post-employment benefits when management has committed to a plan, due to the existence of a post-employment benefit agreement. These costs are included in “Selling, general, and administrative” expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss), and in “Accrued compensation” on the Consolidated Balance Sheets.
During fiscal 2013, we strategically reviewed our distribution centers, which resulted in designating five distribution centers to be sold or closed. These distribution centers were closed or ceased operations during the third quarter of fiscal 2013. Also during fiscal 2013, we announced a change in executive leadership and reduction in force. These events are referred to as the “2013 restructuring”. In connection with the 2013 restructuring the Company recognized severance-related charges of $5.7 million, $2.9 million of related share-based compensation, and $1.4 million of other restructuring charges during fiscal 2013. In addition, the Company recognized facility lease obligation charges of $1.4 million for two closed facilities during fiscal 2013.
The table below summarizes our restructuring activity:
 
Reduction in
Force
Activities
 
Facility Lease
Obligation
 
Total
 
(In thousands)
Balance at December 29, 2012
$
—

 
$
—

 
$
—

Charges
5,709

 
1,398

 
7,107

Adjustments to reserves
(102
)
 
(68
)
 
(170
)
Payments
(3,057
)
 
(402
)
 
(3,459
)
Balance at January 4, 2014
$
2,550

 
$
928

 
$
3,478

Charges
—

 
—

 
—

Adjustments to reserves
(168
)
 
32

 
(136
)
Payments
(2,069
)
 
(413
)
 
(2,482
)
Balance at January 3, 2015
$
313

 
$
547

 
$
860