Restructuring Charges and Asset Impairment (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring And Related Activities [Abstract]

Schedule of Reserve Activity for Closed Properties

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.

Schedule of Restructuring Charges and Asset Impairment

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.