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Restructuring and Asset Impairment (Tables) | 6 Months Ended
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Jul. 13, 2024
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 28-week period ended July 13, 2024. 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 |
(In thousands) |  | Lease Ancillary Costs |  |  | Severance |  |  | Total |
Balance at December 30, 2023 |  | $ |  | 2,977 |  |  | $ |  | — |  |  | $ |  | 2,977 |
Provision for severance |  |  |  | — |  |  |  |  | 27 |  |  |  |  | 27 |
Lease termination adjustments |  |  |  | (451 | ) |  |  |  |  |  |  |  | (451 | )
Accretion expense |  |  |  | 42 |  |  |  |  | — |  |  |  |  | 42 |
Payments |  |  |  | (253 | ) |  |  |  | (27 | ) |  |  |  | (280 | )
Balance at July 13, 2024 |  | $ |  | 2,315 |  |  | $ |  | — |  |  | $ |  | 2,315 |
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 |  |  | 28 Weeks Ended |
(In thousands) | July 13, 2024 |  |  | July 15, 2023 |  |  | July 13, 2024 |  |  | July 15, 2023 |
Asset impairment charges (a) | $ |  | 6,863 |  |  | $ |  | — |  |  | $ |  | 12,984 |  |  | $ |  | 3,745 |
Gain on sales of assets related to closed facilities (b) |  |  | (96 | ) |  |  |  | (2,529 | ) |  |  |  | (45 | ) |  |  |  | (2,590 | )
Provision for severance |  |  | 27 |  |  |  |  | 20 |  |  |  |  | 27 |  |  |  |  | 20 |
Other (income) costs associated with site closures |  |  | (17 | ) |  |  |  | 286 |  |  |  |  | (271 | ) |  |  |  | 600 |
Lease termination adjustments (c) |  |  | (670 | ) |  |  |  | — |  |  |  |  | (820 | ) |  |  |  | — |
Changes in estimates |  |  | — |  |  |  |  | (31 | ) |  |  |  | — |  |  |  |  | 54 |
Total | $ |  | 6,107 |  |  | $ |  | (2,254 | ) |  | $ |  | 11,875 |  |  | $ |  | 1,829 |
(a) Asset impairment charges in the current year were incurred in the Retail segment related to long-lived assets and an indefinite-lived trade name as a result of changes in the competitive environment. In the prior year, asset impairment charges related 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. (b) Gains on sales of assets in the prior year relate to the sale of a store within the Retail segment. (c) Lease termination adjustments in the current quarter relate to the gain recognized to terminate a lease agreement, which included a $0.2 million write-off of the lease liability and a $0.5 million write-off of lease ancillary costs included in the reserve for closed properties. Due to changes in the competitive environment, the Company evaluated an indefinite-lived trade name within the Retail segment for potential impairment. The indefinite-lived trade name with a book value of $23.7 million was measured at a fair value of $17.6 million, resulting in an impairment charge of $6.1 million. Indefinite-lived intangible assets are measured at fair value using Level 3 inputs under the fair value hierarchy, as further described in Note 6. 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.

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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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + 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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.b.2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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