Note 4

Restructuring, Asset Impairment and Other

The following table provides the activity of restructuring costs for fiscal year ended January 3, 2015, the 39 week period ended December 28, 2013, and fiscal year ended March 30, 2013. Restructuring costs recorded in the 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 March 31, 2012	$	11,102		$	—		$	11,102
Changes in estimates (Note 3)		(696	)		—			(696	) (a)
Accretion expense		384			—			384
Payments		(2,815	)		—			(2,815	)
Balance at March 30, 2013		7,975			—			7,975
Assumed with merger		8,766			—			8,766
Provision for lease and related ancillary costs, net of sublease income		4,923			—			4,923	(b)
Provision for severance		—			1,061			1,061	(c)
Changes in estimates (Note 3)		(1,333	)		—			(1,333	) (a)
Accretion expense		249			—			249
Reclassifications from deferred rent		1,104			—			1,104
Payments		(2,188	)		(26	)		(2,214	)
Balance at December 28, 2013		19,496			1,035			20,531
Provision for lease and related ancillary costs, net of sublease income		543			—			543	(b)
Provision for severance		—			306			306	(c)
Changes in estimates (Note 3)		(563	)		—			(563	) (a)
Accretion expense		841			—			841
Payments		(6,329	)		(1,261	)		(7,590	)
Balance at January 3, 2015	$	13,988		$	80		$	14,068

(a)

Goodwill was reduced by $1.3 million, $1.3 million and $0.6 million in fiscal year ended January 3, 2015, the 39 week period ended December 28, 2013, and fiscal year ended March 30, 2013, respectively, 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.

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

(c)	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.

Restructuring, asset impairment and other included in the Consolidated Statements of Earnings consisted of the following:

(In thousands)	January 3, 2015			December 28, 2013			March 31, 2013
Asset impairment charges (a)	$	7,550		$	9,691		$	1,682
Provision for leases and related ancillary costs, net of sublease income, related to store closings (b)		543			4,923			—
Gains on sales of assets related to closed sites		(4,518	)		—			—
Provision for severance (c)		306			1,061			—
Other costs associated with distribution center and store closings		1,504			—			—
Changes in estimates (d)		781			(31	)		(93	)
	$	6,166		$	15,644		$	1,589

(a)

The asset impairment charges were incurred in the Retail segment due to the economic and competitive environment of certain stores and market deterioration in property held for future development. We utilize a discounted cash flow model and market approach that incorporates unobservable level 3 inputs to test for long-lived asset impairments.

(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 relate to revised estimates of lease and ancillary costs associated with previously closed facilities in the Retail and Food Distribution segments. The Retail and Food Distribution segments realized $0.6 million and $0.2, million respectively, in the fiscal year ended January 3, 2015.

Lease obligations for closed facilities included in restructuring costs include 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.

Long-lived assets are analyzed for impairment whenever circumstances arise that could indicate the carrying value of long-lived assets may not be recoverable. If such circumstances exist, then estimates are made of future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized in the Consolidated Statements of Earnings. Measurement of the impairment loss to be recorded is equal to the excess of the carrying amount of the assets over the discounted future cash flows. When analyzing the assets for impairment, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets.