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Restructuring, Asset Impairment and Other Charges | 12 Months Ended
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Dec. 30, 2023
Restructuring and Related Activities [Abstract] |
Restructuring, Asset Impairment and Other Charges | Note 5 – Restructuring, Asset Impairment and Other Charges The following table provides the activity of reserves for closed properties for 2023, 2022 and 2021. 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, 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 |
Provision for severance |  |  | — |  |  |  | 21 |  |  |  | 21 |
Changes in estimates |  |  | (258 | ) |  |  | — |  |  |  | (258 | )
Accretion expense |  |  | 102 |  |  |  | — |  |  |  | 102 |
Payments |  |  | (844 | ) |  |  | (21 | ) |  |  | (865 | )
Balance at December 30, 2023 | $ |  | 2,977 |  | $ |  | — |  | $ |  | 2,977 |
Included in the liability are lease-related ancillary costs from the date of site closure to the end of the remaining lease term. Restructuring, asset impairment and other charges included in the consolidated statements of earnings consisted of the following:
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Asset impairment charges (a) |  | $ |  | 11,749 |  |  | $ |  | 5,086 |  |  | $ |  | 3,783 |
Provision for closing charges |  |  |  | — |  |  |  |  | 1,837 |  |  |  |  | 1,509 |
Gain on sales of assets related to closed facilities (b) |  |  |  | (2,614 | ) |  |  |  | (6,324 | ) |  |  |  | (2,607 | )
Provision for severance (c) |  |  |  | 21 |  |  |  |  | 9 |  |  |  |  | 362 |
Other costs associated with site closures (d) |  |  |  | 584 |  |  |  |  | 271 |  |  |  |  | 636 |
Lease termination adjustments (e) |  |  |  | — |  |  |  |  | (102 | ) |  |  |  | (799 | )
Changes in estimates (f) |  |  |  | (550 | ) |  |  |  | 28 |  |  |  |  | 2 |
Total |  | $ |  | 9,190 |  |  | $ |  | 805 |  |  | $ |  | 2,886 |
(a) In the current year, asset impairment charges of $8.0 million were incurred in the Wholesale segment related to the Company's continued supply chain network optimization in response to customer demand changes. Additional charges in the current year were incurred related to two store closures in the Retail segment and impairment losses related to a distribution location that sustained storm damage in the Wholesale segment. Asset impairment charges in 2022 were incurred primarily in the Retail segment and relate to restructuring of the Retail segment's e-commerce delivery model and a store closure. In 2021, asset impairment charges were incurred primarily in the Retail segment and relate to store closures, as well as site closures in connection with the Company’s supply chain transformation initiatives within the Wholesale segment. (b) Gain on sales of assets in the current year primarily relate to the sale of a store within the Retail segment. In 2022, gain on sales of assets primarily relates to the sales of real property of previously closed locations within both the Wholesale and Retail segments. Gain on sales of assets in 2021 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 charges relate to closures in the Wholesale segment as well as Retail store closings. (d) Other costs net activity in the current year primarily relates to Retail store closings. In the prior year, activity primarily relates to restructuring activity within the Wholesale segment and Retail store closings. (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. (f) Changes in estimates primarily relate to revised estimates for turnover and other lease ancillary costs associated with previously closed locations. The current year 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 7. In the current year, long-lived assets with a book value of $20.6 million were measured at a fair value of $8.9 million, resulting in impairment charges of $11.7 million. In the prior year, long-lived assets with a book value of $5.2 million were measured at a fair value of $0.1 million, resulting in impairment charges of $5.1 million. In 2021, long-lived assets consisting of property and equipment with a book value of $27.5 million were measured at a fair value of $23.7 million, resulting in impairment charges of $3.8 million. The 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, consultations with 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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