Related Party Transactions

12 Months Ended

Jan. 01, 2023

Related Party Transactions [Abstract]

Related Party Transactions

(11)Related Party Transactions

Prior to his death in fiscal 2008, the Company had an employment agreement with Robert W. Miller (“Mr. Miller”), co-founder of the Company and the father of Steven G. Miller, Chairman of the Board, President, Chief Executive Officer and a director of the Company. The employment agreement provided for Mr. Miller to receive an annual base salary of $350,000. The employment agreement further provided that, following his death, the Company would pay his surviving wife $350,000 per year and provide her specified benefits for the remainder of her life. During fiscal 2020, the Company made a payment of $350,000 to Mr. Miller’s wife. The Company recognized expense of $0.3 million in fiscal 2020, to provide for a liability for the future obligations under this agreement. Based upon actuarial valuation estimates related to this agreement, the Company had a recorded liability of $1.0 million as of January 3, 2021. The short-term portion of this liability was recorded in accrued expenses in the Company’s consolidated balance sheets and the long-term portion was recorded in other long-term liabilities in the Company’s consolidated balance sheet.

In January 2021, Mrs. Miller passed away and, accordingly, the Company eliminated the liability of $1.0 million and reduced selling and administrative expense by the same amount in the first quarter of fiscal 2021.