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Restructuring and Asset Impairment | 9 Months Ended
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Oct. 07, 2023
Restructuring and Related Activities [Abstract] |
Restructuring and Asset Impairment | Note 5 – Restructuring and Asset Impairment The following table provides the activity of reserves for closed properties for the 40-week period ended October 7, 2023. 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 31, 2022 |  | $ |  | 3,977 |  |  | $ |  | — |  |  | $ |  | 3,977 |
Provision for severance |  |  |  | — |  |  |  |  | 21 |  |  |  |  | 21 |
Changes in estimates |  |  |  | (228 | ) |  |  |  | — |  |  |  |  | (228 | )
Accretion expense |  |  |  | 83 |  |  |  |  | — |  |  |  |  | 83 |
Payments |  |  |  | (836 | ) |  |  |  | (21 | ) |  |  |  | (857 | )
Balance at October 7, 2023 |  | $ |  | 2,996 |  |  | $ |  | — |  |  | $ |  | 2,996 |
Restructuring and asset impairment, net in the condensed consolidated statements of earnings consisted of the following:
| 12 Weeks Ended |  |  | 40 Weeks Ended |
| October 7, |  |  | October 8, |  |  | October 7, |  |  | October 8, |
(In thousands) | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Asset impairment charges (a) | $ |  | — |  |  | $ |  | 752 |  |  | $ |  | 3,745 |  |  | $ |  | 4,232 |
Provision for closing charges |  |  | — |  |  |  |  | 857 |  |  |  |  | — |  |  |  |  | 857 |
Loss (gain) on sales of assets related to closed facilities (b) |  |  | 120 |  |  |  |  | (2,553 | ) |  |  |  | (2,470 | ) |  |  |  | (3,168 | )
Provision for severance |  |  | 1 |  |  |  |  | — |  |  |  |  | 21 |  |  |  |  | 9 |
Other (income) costs associated with site closures (c) |  |  | (4 | ) |  |  |  | 58 |  |  |  |  | 596 |  |  |  |  | (17 | )
Lease termination adjustments (d) |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | (102 | )
Changes in estimates (e) |  |  | (575 | ) |  |  |  | — |  |  |  |  | (521 | ) |  |  |  | (73 | )
Total | $ |  | (458 | ) |  | $ |  | (886 | ) |  | $ |  | 1,371 |  |  | $ |  | 1,738 |
(a) Asset impairment charges in the current year relate to two store closures within the Retail segment and impairment losses related to a distribution location that sustained significant storm damage within the Wholesale segment. In the prior year, asset impairment charges were incurred in the Retail segment and related to restructuring of the Retail segment's e-commerce delivery model and a store closure. (b) Loss (gain) on sales of assets in the current year primarily relate to the sale of a store within the Retail segment. Gains on sales of assets in the prior year relates to the sales of real property of previously closed locations within the Wholesale and Retail segments. (c) Other costs net activity in the current year primarily relate to Retail store closings. In the prior year, activity primarily relates to restructuring activity within the Wholesale segment and Retail store closings. (d) Lease termination adjustments in the prior year relate to the gain recognized to terminate a lease agreement. (e) Changes in estimates primarily relate to revised estimates for turnover and other lease ancillary costs associated with previously closed locations. The current quarter also included a $0.3 million gain for additional insurance proceeds received related to a distribution location that sustained significant storm damage within the Wholesale segment. Long-lived assets which are not recoverable are measured at fair value on a nonrecurring basis using Level 3 inputs under the fair value hierarchy, as further described in Note 6. In the current year, assets with a book value of $7.4 million were measured at a fair value of $3.7 million, resulting in impairment charges of $3.7 million. In the prior year, long-lived assets with a book value of $4.3 million were measured at a fair value of $0.1 million, resulting in impairment charges of $4.2 million. The 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 and expected insurance recoveries, 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 the support of 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://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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