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Restructuring, Asset Impairment and Other Charges | 12 Months Ended
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Dec. 29, 2018
Restructuring And Related Activities [Abstract] |
Restructuring, Asset Impairment and Other Charges | Note 6 – Restructuring, Asset Impairment and Other Charges The following table provides the activity of reserves for closed properties for 2018, 2017 and 2016. 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 January 2, 2016 |  |  |  | $ |  | 14,448 |  |  | $ |  | — |  |  | $ |  | 14,448 |
Provision for closing charges |  |  |  |  |  | 13,925 |  |  |  |  | — |  |  |  |  | 13,925 |
Provision for severance |  |  |  |  |  | — |  |  |  |  | 919 |  |  |  |  | 919 |
Changes in estimates |  |  |  |  |  | 689 |  |  |  |  | (40 | ) |  |  |  | 649 |
Lease termination adjustments |  |  |  |  |  | (2,437 | ) |  |  |  | — |  |  |  |  | (2,437 | )
Accretion expense |  |  |  |  |  | 675 |  |  |  |  | — |  |  |  |  | 675 |
Payments |  |  |  |  |  | (5,368 | ) |  |  |  | (879 | ) |  |  |  | (6,247 | )
Balance at December 31, 2016 |  |  |  |  |  | 21,932 |  |  |  |  | — |  |  |  |  | 21,932 |
Provision for closing charges |  |  |  |  |  | 3,852 |  |  |  |  | — |  |  |  |  | 3,852 |
Provision for severance |  |  |  |  |  | — |  |  |  |  | 624 |  |  |  |  | 624 |
Changes in estimates |  |  |  |  |  | 1,191 |  |  |  |  | (163 | ) |  |  |  | 1,028 |
Lease termination adjustments |  |  |  |  |  | (2,600 | ) |  |  |  | — |  |  |  |  | (2,600 | )
Accretion expense |  |  |  |  |  | 526 |  |  |  |  | — |  |  |  |  | 526 |
Payments |  |  |  |  |  | (7,012 | ) |  |  |  | (458 | ) |  |  |  | (7,470 | )
Balance at December 30, 2017 |  |  |  |  |  | 17,889 |  |  |  |  | 3 |  |  |  |  | 17,892 |
Provision for closing charges |  |  |  |  |  | 4,499 |  |  |  |  | — |  |  |  |  | 4,499 |
Provision for severance |  |  |  |  |  | — |  |  |  |  | 153 |  |  |  |  | 153 |
Changes in estimates |  |  |  |  |  | (1,181 | ) |  |  |  | — |  |  |  |  | (1,181 | )
Other |  |  |  |  |  | 554 |  |  |  |  | — |  |  |  |  | 554 |
Accretion expense |  |  |  |  |  | 579 |  |  |  |  | — |  |  |  |  | 579 |
Payments |  |  |  |  |  | (5,954 | ) |  |  |  | (156 | ) |  |  |  | (6,110 | )
Balance at December 29, 2018 |  |  |  | $ |  | 16,386 |  |  | $ |  | — |  |  | $ |  | 16,386 |
Included in the liability are lease obligations recorded at the present value of future minimum lease payments and related ancillary costs from the date of closure to the end of the remaining lease term, net of estimated sublease income, calculated using a risk-free interest rate. Restructuring, asset impairment and other charges included in the consolidated statements of operations consisted of the following:
(In thousands) | 2018 |  |  | 2017 |  |  | 2016 |
Asset impairment charges | $ |  | 2,630 |  |  | $ |  | 33,679 |  |  | $ |  | 15,586 |
Charge on customer advance |  |  | 32,000 |  |  |  |  | — |  |  |  |  | — |
Provision for closing charges |  |  | 4,499 |  |  |  |  | 3,852 |  |  |  |  | 13,925 |
(Gain) loss on sales of assets related to closed facilities |  |  | (1,352 | ) |  |  |  | 998 |  |  |  |  | (134 | )
Provision for severance |  |  | 153 |  |  |  |  | 624 |  |  |  |  | 919 |
Other costs associated with distribution center and store closings |  |  | 797 |  |  |  |  | 1,851 |  |  |  |  | 3,692 |
Changes in estimates |  |  | (1,181 | ) |  |  |  | 1,028 |  |  |  |  | 865 |
Lease termination adjustments |  |  | — |  |  |  |  | (2,600 | ) |  |  |  | (2,737 | )
| $ |  | 37,546 |  |  | $ |  | 39,432 |  |  | $ |  | 32,116 |
The charge on the customer advance relates to an independent retailer customer which is not expected to be fully recoverable and was therefore written down to its estimated realizable value, resulting in a charge of $32.0 million. See Note 15 – Concentration of Credit Risk for further information. Asset impairment charges in all years were incurred on long-lived assets primarily 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 changes in estimates primarily relate to revised estimates performed in the current year related to lease turnover, ancillary costs and sublease income associated with previously closed locations, which were lower than the previous expectations at certain properties in the current year and reflected the deterioration of the condition of certain properties in 2017 and 2016. Lease termination adjustments represent the benefits recognized in connection with lease buyouts negotiated related to previously closed stores. 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, the Company estimates future cash flows expected from the use of the assets and any proceeds from 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 operations. Measurement of the impairment loss 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 of identifiable cash flows that are largely independent of the cash flows of other groups of assets. 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 8, Fair Value Measurements. Assets consisting of property and equipment with a book value of $3.7 million were measured at a fair value of $1.1 million, resulting in impairment charges of $2.6 million in 2018. Assets consisting primarily of property and equipment 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.

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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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