Annual report pursuant to Section 13 and 15(d)

Restructuring (Notes)

Restructuring (Notes)
12 Months Ended
Dec. 29, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
During 2018, the Company initiated plans to restructure the operations of the Canada segment. The restructuring seeks to streamline operations in the greater Toronto area by consolidating facilities, exiting certain lines of business, and rationalizing stock keeping units (“SKUs”). The intended result of the Canada restructuring will be a more streamlined and scalable operation focused on delivering optimal service and a broad offering of products across the Company's core categories. Plans were finalized during the fourth quarter of 2018. The Company expects to incur restructuring related charges and capital expenditures in our Canada segment over the next year as plans are implemented. Charges incurred in the current year include: 
Year Ended
December 29, 2018
Facility consolidation (1)
Inventory valuation adjustments

Labor expense

Consulting and legal fees


Gain on sale of building
Exit of certain lines of business (2)
Inventory valuation adjustments

Asset impairments



Facility consolidation includes inventory valuation adjustments associated with SKU rationalization, labor expense related to organizing inventory and equipment in preparation for the facility consolation, consulting and legal fees related to the project, the gain on the sale of an existing building, and other expenses. The labor, consulting, and legal expenses were included in selling, general and administrative expense ("SG&A") on the condensed consolidated statement of comprehensive income (loss). The inventory valuation adjustments were included in cost of goods sold on the condensed consolidated statement of comprehensive income (loss).
As part of the restructuring, the Company is exiting a manufacturing business line. Related charges included adjustments to write inventory down to net realizable value, asset impairment charges, and employee severance, which were included in cost of goods sold, other income and expense, and SG&A on the condensed consolidated statement of comprehensive income (loss), respectively.
The following represents the roll forward of restructuring reserves for the year ended December 29, 2018:
Balance as of December 30, 2017
Impact to Earnings
Cash Paid
Balance as of December 29, 2018
Severance and related expense



During the year ended December 29, 2018, the Company paid approximately $1,212 in severance and related expense.