The company repurchases distribution rights from IDPs in circumstances when the company decides to exit a territory or, in some cases, when the IDP elects to terminate its relationship with the company. In most distributor agreements, if the company decides to exit a territory or stop using the independent distribution model in a territory, the company is contractually required to purchase the distribution rights from the IDP. In the event an IDP terminates its relationship with the company, the company, although not legally obligated, may repurchase and operate those distribution rights as a company-owned territory. The IDPs may also sell their distribution rights to another person or entity. Distribution rights purchased from IDPs and operated as company-owned territories are recorded on the Consolidated Balance Sheets in the line item “Assets Held for Sale” while the company actively seeks another IDP to purchase the distribution rights for the territory. Distribution rights held for sale and operated by the company are sold to IDPs at fair market value pursuant to the terms of a distributor agreement. There are multiple versions of the distributor agreement in place at any given time and the terms of such distributor agreements vary.

During Fiscal 2021, the company sold an office building and certain distribution depots included in assets held for sale at January 2, 2021. The company received net proceeds of $2.2 million and recognized a gain of $0.9 million at the time of sale. Also during Fiscal 2021, the company acquired and classified $1.6 million and $4.3 million of equipment and property, respectively, as held for sale.

During the first quarter of Fiscal 2020, two closed bakeries were reclassified as held for sale. During the second quarter of Fiscal 2020, the company entered into a contract to sell these two closed bakeries and an additional bakery previously recorded as held for sale, resulting in the recognition of $4.2 million of impairment charges. The company recognized a net loss on sale of these assets during the fourth quarter of Fiscal 2020 of $1.4 million recognized in the restructuring and related impairment charges line item on the Consolidated Statements of Income.

The company sold a closed plant in Winston-Salem, North Carolina, which was reclassified to assets held for sale in Fiscal 2017, during the third quarter of Fiscal 2019. The company received $1.9 million and recognized a gain of $0.8 million at the time of sale. The gain on sale is recognized in the restructuring and related impairment charges line item on the Consolidated Statements of Income.

Additional assets recorded in assets held for sale are for property, plant and equipment. The carrying values of assets held for sale are not amortized and are evaluated for impairment as required. The table below presents the assets held for sale as of January 1, 2022 and January 2, 2021, respectively (amounts in thousands):

	January 1, 2022		January 2, 2021
Distribution rights	$	5,147	$	3,707
Property, plant and equipment		6,222		1,934
Total assets held for sale	$	11,369	$	5,641