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Restructuring Charges and Asset Impairment (Tables)
 9 Months Ended
Oct. 08, 2016
Restructuring And Related Activities [Abstract]  
Schedule of Activity of Reserves for Closed Properties

The following table provides the activity of reserves for closed properties for the 40 weeks ended October 8, 2016. Reserves for closed properties 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 at January 2, 2016

$

 

14,448

 

 

$

 

—

 

 

$

 

14,448

 

Provision for closing charges (a)

 

 

13,546

 

 

 

 

—

 

 

 

 

13,546

 

Provision for severance (b)

 

 

—

 

 

 

 

895

 

 

 

 

895

 

Changes in estimates (c)

 

 

218

 

 

 

 

(40

)

 

 

 

178

 

Accretion expense

 

 

525

 

 

 

 

—

 

 

 

 

525

 

Payments

 

 

(3,535

)

 

 

 

(855

)

 

 

 

(4,390

)

Balance at October 8, 2016

$

 

25,202

 

 

$

 

—

 

 

$

 

25,202

 

(a)

The provision for closing charges represents initial costs estimated to be incurred for lease and related ancillary costs, net of sublease income, related to store closings in the Retail segment and a distribution center closing in the Food Distribution segment.

(b)

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

(c)

As a result of changes in estimates, goodwill was reduced by $0.2 million as the initial charges for certain stores related to previous acquisitions were adjusted. The remaining change in estimates relates to revised estimates of lease costs, sublease income, and severance associated with previously closed properties.
Schedule of Restructuring Charges and Asset Impairment

Restructuring and asset impairment charges included in the condensed consolidated statements of earnings consisted of the following:

 

 

12 Weeks Ended

 

 

40 Weeks Ended

 

 

October 8,

 

 

October 10,

 

 

October 8,

 

 

October 10,

 

(In thousands)

2016

 

 

2015

 

 

2016

 

 

2015

 

Asset impairment charges (a)

$

 

2,059

 

 

$

 

1,867

 

 

$

 

5,542

 

 

$

 

4,220

 

Provision for closing charges (b)

 

 

375

 

 

 

 

—

 

 

 

 

13,546

 

 

 

 

6,760

 

(Gain) loss on sales of assets related to closed facilities (c)

 

 

—

 

 

 

 

(1,150

)

 

 

 

266

 

 

 

 

(3,026

)

Provision for severance (d)

 

 

—

 

 

 

 

40

 

 

 

 

895

 

 

 

 

344

 

Other costs associated with distribution center and store closings (e)

 

 

268

 

 

 

 

83

 

 

 

 

3,371

 

 

 

 

1,576

 

Changes in estimates (f)

 

 

(40

)

 

 

 

(80

)

 

 

 

394

 

 

 

 

(367

)

Lease termination adjustment (g)

 

 

—

 

 

 

 

—

 

 

 

 

(300

)

 

 

 

(1,745

)

 

$

 

2,662

 

 

$

 

760

 

 

$

 

23,714

 

 

$

 

7,762

 

(a)

Asset impairment charges were incurred in the Retail segment in conjunction with the Company’s retail store rationalization plan and due to the economic and competitive environment of certain stores. An asset impairment charge of $0.9 million was recorded in the 12 weeks ended October 10, 2015 related to a closed distribution center in the Military segment.

(b)

The provision for closing charges represents initial costs estimated to be incurred for lease and related ancillary costs, net of sublease income, related to store closings in the Retail segment in the current and prior year periods and a distribution center closing in the Food Distribution segment in the current year-to-date period.

(c)

The net (gain) loss on sales of assets resulted from the sales of previously closed retail stores, a food distribution center and vacant parcel of land in the current year-to-date period, and from the sale of a closed food distribution center and sales of closed stores in the prior year.

(d)

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

(e)

Other closing costs associated with distribution center and store closings represent additional costs, predominantly labor and inventory transfer costs, incurred in connection with winding down certain operations in the Food Distribution and Retail segments.

(f)

The changes in estimates relate to revised estimates of lease, ancillary and severance costs associated with previously closed facilities. The Food Distribution segment realized $0.4 million in the current year. The Retail segment realized $(0.4) million in the prior year.

(g)

The lease termination adjustments represent the benefits recognized in connection with lease buyouts on previously closed stores.