The following table provides the activity of reserves for closed properties for the 40-week period ended October 3, 2020. Included in the liability are lease-related ancillary costs from the date of closure to the end of the remaining lease term, as well as related severance. 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. Reserves for severance are recorded in “Accrued payroll and benefits”.

	Reserves for Closed Properties
	Lease
	Ancillary
(In thousands)	Costs			Severance			Total
Balance at December 28, 2019	$	4,971		$	17		$	4,988
Provision for closing charges		325			—			325
Provision for severance		—			2,205			2,205
Changes in estimates		89			(193	)		(104	)
Accretion expense		95			—			95
Payments		(1,675	)		(1,760	)		(3,435	)
Balance at October 3, 2020	$	3,805		$	269		$	4,074

Restructuring and asset impairment activity included in the condensed consolidated statements of operations consisted of the following:

	12 Weeks Ended						40 Weeks Ended
	October 3,			October 5,			October 3,			October 5,
(In thousands)	2020			2019			2020			2019
Asset impairment charges (a)	$	6,767		$	1,447		$	16,411		$	15,512
Charge on customer advance (b)		—			—			—			1,941
Provision for closing charges		—			86			325			629
Loss (gain) on sales of assets related to closed facilities (c)		—			72			(31	)		(6,831	)
Provision for severance (d)		—			198			2,205			347
Other costs associated with site closures (e)		2			330			1,649			1,307
Changes in estimates (f)		(226	)		(539	)		(104	)		(750	)
Lease termination adjustments		—			(298	)		—			(1,940	)
	$	6,543		$	1,296		$	20,455		$	10,215

(a) Asset impairment charges in the current year were incurred primarily in the Food Distribution segment and relate to the evaluation of the expected net proceeds from the Fresh Kitchen facility which is currently held-for-sale, the exit of the Fresh Cut business, and the sale of equipment related to both Fresh Cut and Fresh Kitchen, which totaled $9.1 million. Due to the decision to abandon a tradename within the Food Distribution segment to better integrate with the Company’s overall transportation operations, an impairment charge of $7.0 million was recognized. In the prior year, charges primarily relate to the Fresh Production operations within the Food Distribution segment.

(b) The charge on the customer advance relates to an advance to an independent retailer customer which was not fully recoverable.

(c) Gain on sales of assets in the prior year primarily relates to the sale of a previously closed distribution center in the Food Distribution segment.

(d) Severance in the current year was related to the exit of the Fresh Cut business.

(e) Other costs primarily relate to the Fresh Cut and store closings in the current year, and a Food Distribution warehouse and store closings in the prior year.

(f) Changes in estimates primarily relate to revised estimates for turnover and other lease ancillary costs associated with previously closed locations, due to favorable dispute resolutions with landlords and fluctuations in the amount of certain ancillary costs, as well as reductions in the amount of estimated severance benefits.

Long-lived assets are measured at fair value on a nonrecurring basis using Level 3 inputs. In connection primarily with the Company’s exit of the Fresh Cut operations and planned sales of certain Fresh Kitchen equipment assets in the current year, long-lived assets and definite-lived intangible assets were tested for recoverability. Long-lived assets with a book value of $53.6 million were measured at a fair value of $44.2 million, resulting in impairment charges of $9.4 million in 2020. Long-lived assets with a book value of $5.9 million were measured at a fair value of $4.4 million, resulting in impairment charges of $1.5 million in 2019. Fair value of long-lived assets is determined by estimating the amount and timing of net future cash flows, including the expected proceeds from the sale of assets, 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 second quarter of 2019 the Company announced a plan to reposition the Caito Fresh Production operations and to close the Fresh Kitchen. As a result of this plan, the Company evaluated the Caito indefinite-lived trade names and long-lived assets for potential impairment. The indefinite-lived trade names with a book value of $35.5 million were measured at a fair value of $21.5 million, resulting in an impairment charge of $14.0 million related to the Caito tradename. During this test, the Company concluded the long-lived assets were not impaired. In the third quarter of 2020, the Company made the decision to abandon a tradename within the Food Distribution segment to better integrate with the Company’s overall transportation operations, which resulted in a charge of $7.0 million. Indefinite lived intangible assets are tested for impairment at least annually, and as needed if an indicator of potential impairment exists. Indefinite lived intangible assets are measured at fair value using Level 3 inputs under the fair value hierarchy, as further described in Note 7 – Fair Value Measurements. Fair value of indefinite-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 and, in the case of indefinite-lived trade name assets, estimated royalty rates. The Company has evaluated assets held for sale as of October 3, 2020 and concluded that the Fresh Kitchen facility meets the requirements for held for sale classification. Assets classified as held for sale in the consolidated balance sheet are valued at the expected net proceeds and are evaluated each quarter.