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Restructuring and Asset Impairment (Tables) | 9 Months Ended
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Oct. 09, 2021
Restructuring And Related Activities [Abstract] |
Schedule of Activity of Reserves for Closed Properties | The following table provides the activity of reserves for closed properties for the 40-week period ended October 9, 2021. 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 January 2, 2021 |  |  |  | $ |  | 3,349 |  |  | $ |  | 114 |  |  | $ |  | 3,463 |
Provision for closing charges |  |  |  |  |  | 1,410 |  |  |  |  | — |  |  |  |  | 1,410 |
Provision for severance |  |  |  |  |  | — |  |  |  |  | 357 |  |  |  |  | 357 |
Lease termination adjustments |  |  |  |  |  | (220 | ) |  |  |  | — |  |  |  |  | (220 | )
Changes in estimates |  |  |  |  |  | (44 | ) |  |  |  | — |  |  |  |  | (44 | )
Accretion expense |  |  |  |  |  | 74 |  |  |  |  | — |  |  |  |  | 74 |
Payments |  |  |  |  |  | (1,027 | ) |  |  |  | (433 | ) |  |  |  | (1,460 | )
Balance at October 9, 2021 |  |  |  | $ |  | 3,542 |  |  | $ |  | 38 |  |  | $ |  | 3,580 |
Schedule of Restructuring and Asset Impairment, Net | Restructuring and asset impairment, net in the condensed consolidated statements of earnings consisted of the following:
| 12 Weeks Ended |  |  | 40 Weeks Ended |
| October 9, |  | October 3, |  |  | October 9, |  |  | October 3, |
(In thousands) | 2021 |  | 2020 |  |  | 2021 |  |  | 2020 |
Asset impairment charges (a) | $ |  | 207 |  | $ |  | 6,767 |  |  | $ |  | 3,783 |  |  | $ |  | 16,411 |
Provision for closing charges |  |  | — |  |  |  | — |  |  |  |  | 1,410 |  |  |  |  | 325 |
Gain on sales of assets related to closed facilities (b) |  |  | (358 | ) |  |  | — |  |  |  |  | (2,544 | ) |  |  |  | (31 | )
Provision for severance (c) |  |  | 233 |  |  |  | — |  |  |  |  | 357 |  |  |  |  | 2,205 |
Other costs associated with site closures (d) |  |  | 196 |  |  |  | 2 |  |  |  |  | 507 |  |  |  |  | 1,649 |
Changes in estimates (e) |  |  | 15 |  |  |  | (226 | ) |  |  |  | (44 | ) |  |  |  | (104 | )
Lease termination adjustments (f) |  |  | (488 | ) |  |  | — |  |  |  |  | (488 | ) |  |  |  | — |
Total | $ |  | (195 | ) | $ |  | 6,543 |  |  | $ |  | 2,981 |  |  | $ |  | 20,455 |
(a) Asset impairment charges in the current year were incurred primarily in the Retail segment and relate to current year store closures and previously closed locations, as well as site closures in connection with the Company’s supply chain transformation within the Food Distribution segment. Prior year charges were incurred primarily within the Food Distribution segment and related to the evaluation of the expected net proceeds from the sale of the Fresh Kitchen facility, 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 a decision in the prior year to abandon a tradename within the Food Distribution segment an impairment charge of $7.0 million was recognized. (b) Gain on sales of assets in the current year primarily relate to sales of pharmacy customer lists, equipment, and real estate associated with store closings in the Retail segment, in addition to gains on sale of vacant land in the Military segment. (c) Severance in the current year relates to the closure of distribution centers in the Food Distribution segment as well as Retail store closings. In the prior year, severance was related to the exit of the Fresh Cut business. (d) Other costs in the current year primarily relates to Retail and Food Distribution site closures and restructuring activities. In the prior year, other costs primarily related to the Fresh Cut business and Retail store closings. (e) 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. (f) Lease termination adjustments relate to the gain recognized to terminate a lease agreement in the current year, which includes a $0.3 million write-off of the lease liability and $0.2 million of lease ancillary costs included in the reserve for closed properties.

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- Definition Tabular disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -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=115931487&loc=d3e140864-122747 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -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 3: http://fasb.org/us-gaap/role/ref/legacyRef -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=115931487&loc=d3e140904-122747 + Details
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- Definition Tabular disclosure of an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. This element may also include a description of any reversal and other adjustment made during the period to the amount of an accrued liability for restructuring activities. This element may be used to encapsulate the roll forward presentations of an entity's restructuring reserve by type of cost and in total, and explanation of changes that occurred in the period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(b)(2)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 + Details
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