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Restructuring and Asset Impairment
 4 Months Ended
Apr. 25, 2015
Restructuring And Related Activities [Abstract]  
Restructuring and Asset Impairment

Note 3 Restructuring and Asset Impairment

The following table provides the activity of restructuring costs for the 16 weeks ended April 25, 2015. 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.

 

 

Lease and

 

 

 

 

 

 

 

 

(In thousands)

Ancillary Costs

 

 

Severance

 

 

Total

 

 

Balance - January 3, 2015

$

 

13,988

 

 

$

 

80

 

 

$

 

14,068

 

 

Provision for lease and related ancillary costs, net of sublease

   income

 

 

6,760

 

 

 

—

 

 

 

 

6,760

 

(a)

Provision for severance

 

—

 

 

 

 

304

 

 

 

 

304

 

(b)

Changes in estimates

 

 

(287

)

 

 

—

 

 

 

 

(287

)

(c)

Lease termination adjustment

 

 

(1,745

)

 

 

—

 

 

 

 

(1,745

)

(d)

Accretion expense

 

 

175

 

 

 

—

 

 

 

 

175

 

 

Payments

 

 

(2,522

)

 

 

 

(284

)

 

 

 

(2,806

)

 

Balance - April 25, 2015

$

 

16,369

 

 

$

 

100

 

 

$

 

16,469

 

 

(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 relates to a distribution center closing in the Food Distribution segment.

(c)

The changes in estimates relate to revised estimates of lease and ancillary costs and sublease income associated with previously closed stores.

(d)

The lease termination adjustment represents the benefit recognized in connection with lease buyouts on two previously closed stores. The lease liabilities were formerly included in our restructuring cost liability based on initial estimates.

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:

 

 

16 Weeks Ended

 

 

 

April 25,

 

 

April 19,

 

 

(In thousands)

2015

 

 

2014

 

 

Asset impairment charges

$

 

2,353

 

 

$

 

906

 

(a)

Provision for leases and related ancillary costs, net of

   sublease income, related to store closings

 

 

6,760

 

 

 

 

18

 

(b)

Gains on sales of assets related to closed facilities

 

 

(1,540

)

 

 

 

(1,318

)

(c)

Provision for severance

 

 

304

 

 

 

 

196

 

(d)

Other costs associated with distribution center and store closings

 

 

1,493

 

 

 

 

724

 

 

Changes in estimates

 

 

(287

)

 

 

 

(399

)

(e)

Lease termination adjustment

 

 

(1,745

)

 

 

—

 

(f)

 

$

 

7,338

 

 

$

 

127

 

 

(a)

The asset impairment charges were incurred in the Retail segment due to the 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 gains on sales of assets resulted from the sale of a closed food distribution center in the 16 weeks ended April 25, 2015 and the sales of customer lists related to closed stores in the 16 weeks ended April 19, 2014.

(d)

The provision for severance related to distribution center closings in the Food Distribution segment.

(e)

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 segment realized $(287) and $(379) in the 16 weeks ended April 25, 2015 and April 19, 2014, respectively.

(f)

The lease termination adjustment represents the benefit recognized in connection with lease buyouts on two previously closed stores.