Restructuring, Asset Impairment and Other Charges (Tables)

12 Months Ended

Dec. 31, 2022

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 2022, 2021 and 2020. 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, 2019	$	4,971		$	17		$	4,988
Provision for closing charges		325			2,205			2,530
Changes in estimates		26			(228	)		(202	)
Accretion expense		121			—			121
Payments		(2,094	)		(1,880	)		(3,974	)
Balance at January 2, 2021		3,349			114			3,463
Provision for closing charges		1,509			—			1,509
Provision for severance		—			362			362
Lease termination adjustments		(220	)		—			(220	)
Changes in estimates		2			—			2
Accretion expense		91			—			91
Payments		(1,607	)		(476	)		(2,083	)
Balance at January 1, 2022		3,124			—			3,124
Provision for closing charges		1,837			—			1,837
Provision for severance		—			9			9
Lease termination adjustments		(86	)		—			(86	)
Changes in estimates		28			—			28
Accretion expense		67			—			67
Payments		(993	)		(9	)		(1,002	)
Balance at December 31, 2022	$	3,977		$	-		$	3,977

Schedule of Restructuring Asset Impairment and Other Charges

Restructuring, asset impairment and other charges included in the consolidated statements of earnings consisted of the following:


	2022			2021			2020
(In thousands)	(52 Weeks)			(52 Weeks)			(53 Weeks)
Asset impairment charges (a)	$	5,086		$	3,783		$	20,148
Provision for closing charges		1,837			1,509			325
Gain on sales of assets related to closed facilities (b)		(6,324	)		(2,607	)		(31	)
Provision for severance (c)		9			362			2,205
Other costs associated with site closures (d)		271			636			1,953
Lease termination adjustments (e)		(102	)		(799	)		—
Changes in estimates (f)		28			2			(202	)
Total	$	805		$	2,886		$	24,398

(a)

Asset impairment charges in the current year were incurred primarily in the Retail segment and relate to restructuring of the Retail segment's e-commerce delivery model and a current year store closure. Asset impairment charges in 2021 were incurred primarily in the Retail segment and relate to 2021 store closures and previously closed locations, as well as site closures in connection with the Company’s supply chain transformation initiatives within the Wholesale segment. In 2020, asset impairment charges of $9.1 million were incurred in the Wholesale segment related to the evaluation of the expected net proceeds from the Fresh Kitchen facility, the exit of the Fresh Cut business, and the sale of equipment related to both Fresh Cut and Fresh Kitchen. Charges of $8.6 million primarily relate to the abandonment of a tradename related to the integration of the Company’s transportation operations. Additionally, certain of the Company’s Retail assets were determined not to be recoverable based on management’s intention to close stores or sell assets related to previously closed stores, resulting in impairment charges totaling $2.1 million.

(b)

Gain on sales of assets in the current year primarily relates to the sales of real property of previously closed locations within both the Wholesale and Retail segments. In 2021, gain on sales of assets primarily relate to sales of pharmacy customer lists, equipment, and real estate associated with the store closings in the Retail segment, in addition to gains on sale of vacant land in the Wholesale segment.

(c)

Severance in 2021 relates to closures in the Wholesale segment as well as Retail store closings. In 2020, severance was related to the exit of the Fresh Cut business within the Wholesale segment.

(d)

Other costs associated with distribution center and store closings represent additional costs, including labor, inventory transfer and other administrative costs, incurred in connection with restructuring operations in the Wholesale and Retail segments.

(e)

Lease termination adjustments represent the benefits recognized in connection with early lease buyouts for previously closed sites. Payments made in connection with lease buyouts were applied to reserves for closed properties and lease liabilities, as applicable. In the current year, adjustments include the gain recognized to terminate a lease agreement, which includes a $16 thousand write-off of the lease liability and $86 thousand reduction of lease ancillary costs included in the reserve for closed properties. In 2021, adjustments include gains of $0.8 million and $0.2 million from write-offs of the lease liability and lease ancillary costs, offset by the cost of a $0.2 million early termination fee.

(f)

Changes in estimates primarily relate to revised estimates for turnover and other lease ancillary costs associated with previously closed locations.