Restructuring and Asset Impairment

6 Months Ended

Jul. 12, 2014

Restructuring And Related Activities [Abstract]

Note 5 Restructuring and Asset Impairment

The following table provides the activity of restructuring costs for the 28 weeks ended July 12, 2014. Accrued restructuring costs recorded in the Condensed Consolidated Balance Sheets are included in “Other accrued expenses” in Current liabilities and “Other long-term liabilities” in Long-term liabilities based on when the obligations are expected to be paid.


(In thousands)	Lease and Ancillary Costs			Severance			Total
Balance at December 28, 2013	$	19,496		$	1,035		$	20,531
Provision for lease and related ancillary costs, net of sublease income		236			—			236	(a)
Provision for severance		—			266			266	(b)
Changes in estimates		(370	)		—			(370	)(c)
Accretion expense		383			—			383
Payments		(4,010	)		(1,217	)		(5,227	)

Balance at July 12, 2014	$	15,735		$	84		$	15,819

(a)	The provision for lease and related ancillary costs represents the initial charges estimated to be incurred for store closings in the Retail segment.

(b)	The provision for severance includes $0.1 million related to a distribution center closing in the Food Distribution segment and $0.2 million related to store closings in the Retail segment.

(c)	Goodwill was reduced by $0.3 million as a result of these changes in estimates as the initial charges for certain stores were established in the purchase price allocations for previous acquisitions.

Included in the liability are lease obligations recorded at the present value of future minimum lease payments, calculated using a risk-free interest rate, and related ancillary costs from the date of closure to the end of the remaining lease term, net of estimated sublease income.

Restructuring and asset impairment charges included in the Condensed Consolidated Statements of Earnings consisted of the following:


	12 weeks ended				28 weeks ended
(In thousands)	July 12, 2014		July 20, 2013		July 12, 2014			July 20, 2013
Asset impairment charges (a)	$	—	$	987	$	906		$	2,220
Provision for leases and related ancillary costs, net of sublease income, related to store closings (b)		218		—		236			—
Loss (gains) on sales of assets related to stores closed		320		—		(998	)		—
Provision for severance (c)		70		—		266			—
Other costs associated with distribution center and store closings		163		—		887			—
Changes in estimates (d)		307		—		(92	)		—

	$	1,078	$	987	$	1,205		$	2,220

(a)	The asset impairment charges were incurred in the Retail segment due to economic and competitive environment of certain stores.

(b)	The provision for lease and related ancillary costs, net of sublease income, represents the initial charges estimated to be incurred for store closings in the Retail segment.

(c)	The provision for severance related to a distribution center closing in the Food Distribution segment and store closings in the Retail segment.

(d)

The majority of the changes in estimates relates to revised estimates of lease ancillary costs associated with previously closed facilities in the Retail and Food Distribution segments. The Retail and Food Distribution segments realized $(379) and $287, respectively, in the 28 weeks ended July 12, 2014.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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