In Fiscal 2016, we announced the launch of Project Centennial, a comprehensive business and operational review. We identified opportunities to enhance revenue growth, streamline operations, improve efficiencies, and make investments that strengthen our competitive position and improve margins over the long term. We began Project Centennial with an evaluation of our brands, product mix, and organizational structure. Most importantly, Project Centennial marked a significant shift in mindset from a sales and operations focused enterprise to a brand focused, consumer focused packaged foods company. Strategic priorities developed as part of Project Centennial were designed to improve margins and profitably grow revenue over time. These priorities included: reducing costs to fuel growth, developing leading capabilities, reinvigorating core business, and capitalizing on product adjacencies.

The company operated under an organizational structure established with two business units (“BUs”), Fresh Bakery and Snacking/Specialty since May of 2017, and realigned key leadership roles. This structure also provided for centralized marketing, sales, supply chain, shared-services/administrative, and corporate strategy functions, each with more clearly defined roles and responsibilities. On July 17, 2020, the company implemented additional organizational structure changes designed to increase focus on brand growth, product innovation, and improving underperforming bakeries. Elimination of the BUs and adoption of a brand focused organizational structure was completed in the third quarter of Fiscal 2020 and the company continues to report our financial results in one operating segment. Project Centennial was completed in Fiscal 2020 and there were no additional costs recognized in Fiscal 2021. See Note 1, Basis of Presentation, for a description of our segment presentation.

Unless otherwise noted, restructuring related costs are recorded in the restructuring and related impairments line item on our Consolidated Statements of Income.

The table below presents the components of costs associated with Project Centennial in Fiscal 2020 and 2019 (amounts in thousands):

	Fiscal 2020		Fiscal 2019
Restructuring and related impairment charges:
Reorganization costs	$	—	$	253
Lease termination charges		4,077		—
Impairment charges, net of gain on sale		23,627		20,229
Employee termination benefits		7,779		3,042
Restructuring and related impairment charges (1)		35,483		23,524
Project Centennial implementation costs (2)		15,548		784
Total Project Centennial restructuring and implementation costs	$	51,031	$	24,308

The table below details the restructuring impairments (inclusive of property, plant and equipment, ingredient and packaging, and spare parts and intangible assets) that were recognized during Fiscal 2020 and 2019 (amounts in thousands):

	Fiscal 2020		Fiscal 2019
Plant closure costs	$	5,747	$	5,133
Line and distribution depot closure costs		629		356
Spare parts		734		174
Brand rationalization study impairments		7,120		15,399
Lease impairment charges		9,397		—
Gain on sale		—		(833	)
Total restructuring impairment of assets	$	23,627	$	20,229

In order to optimize sales and production of our organic products, the company decided to cease using the Alpine Valley finite-lived trademark, resulting in a $4.6 million impairment charge in the second quarter of Fiscal 2020. In the fourth quarter of Fiscal 2020, the company decided to cease using one of its regional brands and recognized an additional $1.3 million impairment charge. Additionally, we recognized $1.2 million of ingredient and packaging impairments as a result of brand and product rationalization initiatives.

During Fiscal 2020, the company sold three closed bakeries that were included in assets held for sale and certain idle equipment at other bakeries that were included in property, plant, and equipment, resulting in the recognition of $5.7 million of impairment charges. Additionally, the company recognized property, plant, and equipment impairment charges of $0.6 million for manufacturing line and distribution depot closures and an office building it has decided to sell, and $0.7 million for spare parts related to equipment the company no longer intends to use.

In order to optimize our distribution network, we vacated certain distribution depots during Fiscal 2020, some of which are owned and others that were leased. This resulted in the recognition of lease impairment charges totaling $9.4 million and lease termination charges of $4.1 million.

During Fiscal 2020, the company incurred $2.6 million of employee termination benefits charges related to a voluntary employee separation incentive plan (the “VSIP”). Additionally, the company announced an involuntary reduction-in-force plan (the “RIF”) and recognized charges of $5.3 million during Fiscal 2020. These charges consisted primarily of employee severance and benefits-related costs. All remaining payments related to the plans were paid in early Fiscal 2021.

We began relocating certain employees during the third quarter of Fiscal 2017 as we transition to the enhanced organizational structure. Reorganization costs of $0.3 million for Fiscal 2019 for relocating employees were incurred. Additionally, a brand rationalization study which identified certain regional brand products that transitioned to national brands resulted in an additional impairment charge of $15.4 million on certain finite-lived intangible assets.

The company recognized an impairment charge of $3.9 million and severance costs of $1.5 million during the third quarter of Fiscal 2019 for the Opelika, Alabama plant closure costs. The company recognized impairment charges during the first quarter of Fiscal 2019 related to manufacturing line closures of $0.4 million. During the second quarter of Fiscal 2019, an impairment charge of $1.3 million was recognized for a closed plant recorded in assets held for sale.

The table below presents the components of, and changes in, our restructuring accruals (amounts in thousands):

	VSIP			RIF			Employee termination benefits⁽¹⁾			Reorganization costs⁽²⁾			Distribution Network Optimization			Total
Liability balance at December 29, 2018	$	174		$	—		$	227		$	—		$	—		$	401
Charges		—			—			3,042			253			—			3,295
Cash payments		—			—			(1,819	)		(253	)		—			(2,072	)
Liability balance (3) at December 28, 2019	$	174		$	—		$	1,450		$	—		$	—		$	1,624
Charges		2,639			5,289			(149	)		—			4,077			11,856
Cash payments		(1,777	)		(4,817	)		(1,301	)		—			(4,077	)		(11,972	)
Liability balance (3) at January 2, 2021	$	1,036		$	472		$	—		$	—		$	—		$	1,508
Charges		—			—			—			—			—			—
Cash payments		(1,036	)		(472	)		—			—			—			(1,508	)
Liability balance (3) at January 1, 2022	$	—		$	—		$	—		$	—		$	—		$	—