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Restructuring Charges and Asset Impairment | 12 Months Ended
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Dec. 31, 2016
Restructuring And Related Activities [Abstract] |
Restructuring Charges and Asset Impairment | Note 6 – Restructuring Charges and Asset Impairment The following table summarizes the reserve activity for closed properties for the fiscal years ended December 31, 2016, January 2, 2016 and January 3, 2015. Reserves for closed properties 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.
| Lease and |  |  |  |  |  |  |
(In thousands) | Ancillary Costs |  |  | Severance |  |  | Total |
Balance at December 28, 2013 | $ |  | 19,496 |  |  | $ |  | 1,035 |  |  | $ |  | 20,531 |
Provision for closing charges (a) |  |  | 543 |  |  |  |  | — |  |  |  |  | 543 |
Provision for severance (b) |  |  | — |  |  |  |  | 306 |  |  |  |  | 306 |
Changes in estimates (c) |  |  | (563 | ) |  |  |  | — |  |  |  |  | (563 | )
Accretion expense |  |  | 841 |  |  |  |  | — |  |  |  |  | 841 |
Payments |  |  | (6,329 | ) |  |  |  | (1,261 | ) |  |  |  | (7,590 | )
Balance at January 3, 2015 |  |  | 13,988 |  |  |  |  | 80 |  |  |  |  | 14,068 |
Provision for closing charges (a) |  |  | 7,200 |  |  |  |  | — |  |  |  |  | 7,200 |
Provision for severance (b) |  |  | — |  |  |  |  | 395 |  |  |  |  | 395 |
Changes in estimates (c) |  |  | (56 | ) |  |  |  | (80 | ) |  |  |  | (136 | )
Lease termination adjustment (d) |  |  | (1,745 | ) |  |  |  | — |  |  |  |  | (1,745 | )
Accretion expense |  |  | 592 |  |  |  |  | — |  |  |  |  | 592 |
Payments |  |  | (5,531 | ) |  |  |  | (395 | ) |  |  |  | (5,926 | )
Balance at January 2, 2016 |  |  | 14,448 |  |  |  |  | — |  |  |  |  | 14,448 |
Provision for closing charges (a) |  |  | 13,925 |  |  |  |  | — |  |  |  |  | 13,925 |
Provision for severance (b) |  |  | — |  |  |  |  | 919 |  |  |  |  | 919 |
Changes in estimates (c) |  |  | 689 |  |  |  |  | (40 | ) |  |  |  | 649 |
Lease termination adjustment (d) |  |  | (2,437 | ) |  |  |  | — |  |  |  |  | (2,437 | )
Accretion expense |  |  | 675 |  |  |  |  | — |  |  |  |  | 675 |
Payments |  |  | (5,368 | ) |  |  |  | (879 | ) |  |  |  | (6,247 | )
Balance at December 31, 2016 | $ |  | 21,932 |  |  | $ |  | — |  |  | $ |  | 21,932 |
| (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 and distribution center closings in the Retail and Food Distribution segments, respectively.
| (b) | The provision for severance represents severance charges made in connection with property closures.
| (c) | As a result of changes in estimates, goodwill was reduced by $0.2 million and $1.3 million in the fiscal years ended December 31, 2016 and January 3, 2015, respectively, as the initial charges for certain stores were adjusted in the purchase price allocations for previous acquisitions.
| (d) | The lease termination adjustment represents the benefit recognized in connection with lease buyouts on previously closed stores. The lease liabilities were formerly included in the Company’s restructuring cost liability based on initial estimates.
Restructuring charges and asset impairment included in the consolidated statements of earnings consisted of the following:
| December 31, |  |  | January 2, |  |  | January 3, |
| 2016 |  |  | 2016 |  |  | 2015 |
(In thousands) | (52 Weeks) |  |  | (52 Weeks) |  |  | (53 Weeks) |
Asset impairment charges (a) | $ |  | 15,586 |  |  | $ |  | 4,220 |  |  | $ |  | 7,550 |
Provision for closing charges (b) |  |  | 13,925 |  |  |  |  | 7,200 |  |  |  |  | 543 |
Gain on sales of assets related to closed facilities (c) |  |  | (134 | ) |  |  |  | (2,997 | ) |  |  |  | (4,518 | )
Provision for severance (d) |  |  | 919 |  |  |  |  | 395 |  |  |  |  | 306 |
Other costs associated with distribution center and store closings (e) |  |  | 3,692 |  |  |  |  | 1,865 |  |  |  |  | 1,504 |
Changes in estimates (f) |  |  | 865 |  |  |  |  | (136 | ) |  |  |  | 781 |
Lease termination adjustment (g) |  |  | (2,737 | ) |  |  |  | (1,745 | ) |  |  |  | — |
| $ |  | 32,116 |  |  | $ |  | 8,802 |  |  | $ |  | 6,166 |
| (a) | Asset impairment charges were recorded in each fiscal year presented in the Retail segment in connection with the Company’s store rationalization plan and the underperformance of certain retail stores. Asset impairment charges of $880 were recorded in the fiscal year ended January 2, 2016 in connection with the closure of a 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 property closures. In each fiscal year presented, closing charges were recorded for store closings in the Retail segment, particularly retail stores in the western geographies in connection with the Company’s store rationalization plan. In fiscal 2016, closing charges were also recorded in the Food Distribution segment associated with the closure of a distribution center.
| (c) | The gain on sales of assets in fiscal 2016 relate to gains on the sale of vacant land in the Military segment and net gains on the sale of previously closed stores in the Retail segment, partially offset by losses on the sale of a closed distribution center in the Food Distribution segment. The gain on sales of assets in the fiscal year ended January 2, 2016 resulted from the sale of a closed distribution center in the Food Distribution segment and net gains on the sales of closed stores in the Retail segment. The gains on sales of assets in the fiscal year ended January 3, 2015 resulted from sales of closed stores in the Retail segment.
| (d) | The provision for severance relates to distribution center closings in the Food Distribution and Military segments and store closings in the Retail segment.
| (e) | Other closing costs associated with distribution center and store closings represent additional costs, mainly labor, inventory transfer and other administrative 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, primarily in the Retail and Food Distribution segments.
| (g) | The lease termination adjustment represents the benefits recognized in connection with lease buyouts on previously closed stores.
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.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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