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Restructuring Liabilities
12 Months Ended
Dec. 30, 2017
Restructuring And Related Activities [Abstract]  
Restructuring Liabilities

13.

RESTRUCTURING LIABILITIES

The following table summarizes the changes in the restructuring liabilities for the last three fiscal years (in thousands):

 

 

 

Severance

 

 

Facility

 

 

 

 

 

 

 

and Related

 

 

Closing

 

 

 

 

 

 

 

Costs

 

 

Costs

 

 

Total

 

Balance at December 27, 2014

 

$

56,450

 

 

$

431

 

 

$

56,881

 

Current period charges

 

 

175,749

 

 

 

36

 

 

 

175,785

 

Change in estimate

 

 

(4,196

)

 

 

 

 

 

(4,196

)

Payments and usage—net of accretion

 

 

(109,369

)

 

 

(257

)

 

 

(109,626

)

Balance at January 2, 2016

 

 

118,634

 

 

 

210

 

 

 

118,844

 

Current period charges

 

 

71,514

 

 

 

2,563

 

 

 

74,077

 

Change in estimate

 

 

(21,004

)

 

 

267

 

 

 

(20,737

)

Payments and usage—net of accretion

 

 

(146,548

)

 

 

(2,175

)

 

 

(148,723

)

Balance at December 31, 2016

 

 

22,596

 

 

 

865

 

 

 

23,461

 

Current period charges

 

 

6,968

 

 

 

 

 

 

6,968

 

Change in estimate

 

 

(5,007

)

 

 

(256

)

 

 

(5,263

)

Payments and usage—net of accretion

 

 

(19,722

)

 

 

(109

)

 

 

(19,831

)

Balance at December 30, 2017

 

$

4,835

 

 

$

500

 

 

$

5,335

 

 

The Company periodically closes or consolidates distribution facilities and implements initiatives in its ongoing efforts to reduce costs and improve operating effectiveness. In connection with these activities, the Company incurs various costs including multiemployer pension withdrawal liabilities and settlements, severance and other employee separation costs that are included in the above table.

2017 Activities

During fiscal year 2017, the Company incurred a net charge of $2 million, primarily for severance and related costs associated with its efforts to streamline its corporate back office organization and centralize replenishment activities.

2016 Activities

During fiscal year 2016, the Company incurred a net charge of $50 million for severance and related costs associated with its efforts to streamline its field operations model, streamline its corporate back office organization, centralize replenishment activities and complete the closure of the Baltimore, Maryland distribution facility.  The Company also incurred $3 million in facility closing costs related to a lease termination settlement.

2015 Activities

During fiscal year 2015, the Company incurred a net charge of $172 million primarily for severance and related costs related to the field reorganization and closure of the Baltimore, Maryland facility, both announced in 2015, and settlement of the Central States Teamsters Union Pension Plan (“Central States”).

The field reorganization included $30 million of severance and related costs. The Baltimore, Maryland distribution facility closure resulted in $55 million of severance and related costs, including $50 million of estimated multiemployer pension withdrawal liabilities, which were settled in fiscal year 2016.

In December 2015, the Company reached a settlement with Central States that relieved the Company’s participation in the “legacy” pool and settled the related legacy multiemployer pension withdrawal liability, and commenced the Company as a new employer in the “hybrid” pool of the Central States Teamsters Southeast and Southwest Area Pension Fund. The payment also included the settlement of certain other Central States multiemployer pension withdrawal liabilities relating to facilities closed prior to 2015, and a related labor dispute. The settlement resulted in a restructuring charge of $88 million.