XML 22 R15.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Restructuring and Asset Impairment | 6 Months Ended
--- | ---
Jul. 13, 2024
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 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 |
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. 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 $0.5 million, resulting in impairment charges of $6.9 million. In the prior year, long-lived 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. 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.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: 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 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration