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Restructuring Charges and Asset Impairment | 9 Months Ended
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Oct. 06, 2018
Restructuring And Related Activities [Abstract] |
Restructuring Charges and Asset Impairment | Note 5 – Restructuring Charges and Asset Impairment The following table provides the activity of reserves for closed properties for the 40-week period ended October 6, 2018. 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 the timing of when the obligations are expected to be paid.
|  |  |  | Lease and |  |  |  |  |  |  |  |  |  |  |
(In thousands) |  |  |  | Ancillary Costs |  |  | Severance |  |  | Total |
Balance at December 30, 2017 |  |  |  | $ |  | 17,889 |  |  | $ |  | 3 |  |  | $ |  | 17,892 |
Provision for closing charges |  |  |  |  |  | 4,499 |  |  |  |  | — |  |  |  |  | 4,499 |
Provision for severance |  |  |  |  |  | — |  |  |  |  | 142 |  |  |  |  | 142 |
Other |  |  |  |  |  | 554 |  |  |  |  | — |  |  |  |  | 554 |
Changes in estimates |  |  |  |  |  | (633 | ) |  |  |  | — |  |  |  |  | (633 | )
Accretion expense |  |  |  |  |  | 457 |  |  |  |  | — |  |  |  |  | 457 |
Payments |  |  |  |  |  | (4,797 | ) |  |  |  | (142 | ) |  |  |  | (4,939 | )
Balance at October 6, 2018 |  |  |  | $ |  | 17,969 |  |  | $ |  | 3 |  |  | $ |  | 17,972 |
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:
| 12 Weeks Ended |  |  | 40 Weeks Ended |
| October 6, |  |  | October 7, |  |  | October 6, |  |  | October 7, |
(In thousands) | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Asset impairment charges | $ |  | 570 |  |  | $ |  | 33,158 |  |  | $ |  | 2,040 |  |  | $ |  | 33,678 |
Provision for closing charges |  |  | 596 |  |  |  |  | 481 |  |  |  |  | 4,499 |  |  |  |  | 886 |
(Gain) loss on sales of assets related to closed facilities |  |  | (171 | ) |  |  |  | 238 |  |  |  |  | (1,578 | ) |  |  |  | 912 |
Provision for severance |  |  | 3 |  |  |  |  | 76 |  |  |  |  | 142 |  |  |  |  | 620 |
Other costs associated with distribution center and store closings |  |  | 203 |  |  |  |  | 532 |  |  |  |  | 799 |  |  |  |  | 1,306 |
Changes in estimates |  |  | (969 | ) |  |  |  | 1,141 |  |  |  |  | (633 | ) |  |  |  | 1,141 |
Lease termination adjustments |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | (1,910 | )
| $ |  | 232 |  |  | $ |  | 35,626 |  |  | $ |  | 5,269 |  |  | $ |  | 36,633 |
Restructuring and asset impairment charges in the current year were primarily incurred in the Retail segment due to the economic and competitive environment of certain stores and in conjunction with the Company’s retail store rationalization plan. The Company also realized a gain on the sale of a Military distribution center in the second quarter of 2018, an asset impairment charge related to certain discontinued Food Distribution warehouse equipment in the first quarter of 2018, and other closing costs related to a Food Distribution warehouse in the prior year. The changes in estimates relate to revised estimates of ancillary costs associated with previously closed locations, due to lower than expected costs, offset by the deterioration of the condition of certain properties. The lease termination adjustments represent the benefits recognized in connection with lease buyouts negotiated related to previously closed stores. Long-lived assets are measured at fair value on a nonrecurring basis using Level 3 inputs under the fair value hierarchy, as further described in Note 6 – Fair Value Measurements. Assets with a book value of $2.4 million were measured at a fair value of $0.4 million, resulting in an impairment charge of $2.0 million in 2018. Assets with a book value of $48.6 million were measured at a fair value of $14.9 million, resulting in an impairment charge of $33.7 million in 2017. Fair value of long-lived assets is determined by estimating the amount and timing of net future cash flows, discounted using a risk-adjusted rate of interest. The Company estimates future cash flows based on historical results of operations, external factors expected to impact future performance, experience and knowledge of the geographic area in which the assets are located, and when necessary, uses real estate brokers. In the prior year quarter, it was determined that the carrying value of the Retail segment exceeded its fair value, and the company recorded a goodwill impairment charge of $189.0 million.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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