BlueLinx (BXC) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 02, 2016	Aug. 04, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	BlueLinx Holdings Inc.
Entity Central Index Key	1,301,787
Trading Symbol	bxc
Current Fiscal Year Date	--01-02
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,031,275
Document Type	10-Q
Document Period End Date	Jul. 2, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Income Statement [Abstract]
Net sales	$ 509,011	$ 515,656	$ 983,337	$ 970,605
Cost of sales	451,624	455,673	868,354	860,426
Gross profit	57,387	59,983	114,983	110,179
Operating expenses:
Selling, general, and administrative	52,294	50,675	107,093	100,711
Depreciation and amortization	2,396	2,438	4,872	4,716
Total operating expenses	54,690	53,113	111,965	105,427
Operating income (loss)	2,697	6,870	3,018	4,752
Non-operating expenses (income):
Interest expense	6,250	6,690	13,457	13,243
Other expense (income), net	135	29	(237)	387
Loss before benefit from income taxes	(3,688)	151	(10,202)	(8,878)
Benefit from income taxes	(544)	(2,719)	(913)	(2,803)
Net loss	$ (3,144)	$ 2,870	$ (9,289)	$ (6,075)
Basic weighted average number of common shares outstanding (in shares)	8,895	8,739	8,886	8,728
Diluted weighted average number of common shares outstanding (in shares)	8,895	8,786	8,886	8,728
Basic and diluted net loss per share applicable to common stock (in dollars per shares)	$ (0.35)	$ 0.33	$ (1.05)	$ (0.70)
Comprehensive loss:
Net loss	$ (3,144)	$ 2,870	$ (9,289)	$ (6,075)
Other comprehensive income (loss):
Foreign currency translation, net of tax	34	(34)	306	(316)
Amortization of unrecognized pension loss, net of tax	223	211	447	422
Pension curtailment, net of tax	(12,185)	6,102	(12,185)	6,102
Total other comprehensive income (loss)	(11,928)	6,279	(11,432)	6,208
Comprehensive loss	$ (15,072)	$ 9,149	$ (20,721)	$ 133

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 02, 2016	Jan. 02, 2016
Current assets:
Cash	$ 5,240	$ 4,808
Receivables, less allowances of $3.4 million and $3.2 million, respectively	181,623	138,545
Inventories, net	214,802	226,660
Other current assets	28,562	32,011
Total current assets	430,227	402,024
Property and equipment:
Land and land improvements	35,926	40,108
Buildings	80,630	89,006
Machinery and equipment	78,646	79,173
Construction in progress	349	255
Property and equipment, at cost	195,551	208,542
Accumulated depreciation	(105,628)	(106,966)
Property and equipment, net	89,923	101,576
Other non-current assets	9,784	9,542
Total assets	529,934	513,142
Current liabilities:
Accounts payable	96,830	88,087
Bank overdrafts	17,330	17,287
Accrued compensation	6,829	4,165
Current maturities of long-term debt	62,653	6,611
Other current liabilities	12,942	14,023
Total current liabilities	196,584	130,173
Non-current liabilities:
Long-term debt	340,222	377,773
Pension benefit obligation	45,755	36,791
Other non-current liabilities	12,934	14,301
Total liabilities	595,495	559,038
Stockholders’ deficit:
Common Stock, $0.01 par value, Authorized - 20,000,000 shares, Issued - 9,031,275 and 8,943,846 respectively.	90	89
Additional paid-in capital	256,959	255,905
Accumulated other comprehensive loss	(46,206)	(34,774)
Accumulated stockholders’ deficit	(276,404)	(267,116)
Total stockholders’ deficit	(65,561)	(45,896)
Total liabilities and stockholders’ deficit	$ 529,934	$ 513,142

CONDENSED CONSOLIDATED BALANCE4

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions	Jul. 02, 2016	Jan. 02, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 3.4	$ 3.2
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	90,031,275	89,438,466

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015
Statement of Cash Flows [Abstract]
Net cash used in operating activities	$ (25,943)	$ (46,247)
Net cash provided by (used in) investing activities	1,853	(699)
Cash flows from financing activities:
Repayments on revolving credit facilities	(282,371)	(187,394)
Borrowings from revolving credit facilities	308,673	256,647
Principal payments on mortgage	(9,431)	(8,534)
Increase (decrease) in bank overdrafts	0	(15,428)
Decrease in restricted cash related to the mortgage	9,118	0
Other, net	(1,467)	(23)
Net cash provided by financing activities	24,522	45,268
Increase (decrease) in cash	432	(1,678)
Cash balance, beginning of period	4,808	4,522
Cash balance, end of period	$ 5,240	$ 2,844

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jul. 02, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (the “Company”). These financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K (the “Annual Report on Form 10-K”) for the year ended January 2, 2016 , as filed with the Securities and Exchange Commission. Reclassifications Certain amounts in the prior years’ consolidated financial statements have been revised to conform to the current year presentation, as the prior year Condensed Consolidated Statement of Cash Flow has been conformed to the current year condensed presentation. New Accounting Standards Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Under this ASU and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. The standard is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption of the standard is permitted, but not before December 15, 2016. We do not believe that the adoption of the revenue recognition standard will have a material impact on our Consolidated Financial Statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. Adoption of this standard may have a significant impact on our Consolidated Balance Sheets. Although we have not completed our assessment, we do not expect the adoption to change the recognition, measurement, or presentation of lease expenses within the Consolidated Statements of Operations and Cash Flows. Information about our current undiscounted future lease payments and the timing of those payments is in Note 13, “Lease Commitments,” in our Annual Report on Form 10-K for the year ended January 2, 2016 . Share-Based Compensation. In March 2016, the FASB issued ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718).” This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation, and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. We do not anticipate that the adoption of this accounting standard will have a material impact on our Consolidated Financial Statements.

Employee Benefits

Employee Benefits	6 Months Ended
	Jul. 02, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefits	Employee Benefits The following table shows the components of net periodic pension cost (in thousands): Three Months Ended Three Months Ended Service cost $ 252 $ 300 Interest cost on projected benefit obligation 1,271 1,250 Expected return on plan assets (1,551 ) (1,523 ) Amortization of unrecognized loss 223 211 Net periodic pension cost $ 195 $ 238 Six Months Ended July 2, 2016 Six Months Ended July 4, 2015 Service cost $ 504 $ 600 Interest cost on projected benefit obligation 2,542 2,500 Expected return on plan assets (3,102 ) (3,046 ) Amortization of unrecognized loss 447 422 Net periodic pension cost $ 391 $ 476 During the first six months of fiscal 2016, we renegotiated our collective bargaining agreements with certain unionized locations. These collective bargaining agreements cover a number of specific items such as wages, medical coverage, and certain other benefit programs, including pension plan participation. As a result of these renegotiations, a significant percentage of the participants in the plan are no longer accruing future years of service, which triggered a curtailment. The pension benefit obligation increased $12.2 million as a result of changes in actuarial assumptions related to the curtailment; primarily, the discount rate, as recorded on the Condensed Consolidated Balance Sheets; along with a decrease to accumulated other comprehensive income of $12.2 million recorded in other comprehensive loss on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). No intraperiod income tax effect was required to be recorded as a result of the curtailment.

Operational Efficiency Initiati

Operational Efficiency Initiatives	6 Months Ended
	Jul. 02, 2016
Restructuring and Related Activities [Abstract]
Operational Efficiency Initiatives	Operational Efficiency Initiatives During the second quarter of fiscal 2016, we announced operational efficiency initiatives which will result in the closure of four owned distribution centers by the end of the third quarter of 2016, and a corresponding reduction in force of approximately 60 full-time employees. A $1.2 million severance and employee benefits charge was recorded in the second quarter of fiscal 2016 in “Selling, general, and administrative expenses” in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), with a corresponding liability recorded in the Condensed Consolidated Balance Sheet in “Other current liabilities” due to the initiative. T he payments for the severance and employee benefits charges are expected to occur throughout the remainder of fiscal 2016. Additionally, for the first six months of fiscal 2016, we announced the closure of our Canadian sales center and administrative office, in the first quarter of fiscal 2016, which resulted in a reduction in force of approximately 11 full-time employees. Severance charges recorded in the first quarter of fiscal 2016 were immaterial. Furthermore, as part of the operational efficiency initiative process, we also began a stock keeping unit (“SKU”) rationalization initiative in local markets during the second quarter of fiscal 2016, resulting in the identification of certain less productive SKUs which we decided to discontinue offering. The SKU rationalization initiative was substantially completed by the end of the second quarter of fiscal 2016. We recognized total inventory adjustments in “Inventories” on the Condensed Consolidated Balance Sheet related to the operational efficiency initiatives of approximately $4.3 million , recorded as a reduction of gross margin. We also recognized an additional $2.2 million of “selling, general, and administrative” expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) primarily for cost to serve, which included material handling and delivery cash payments.

Assets Held for Sale and Net Ga

Assets Held for Sale and Net Gain on Disposition	6 Months Ended
	Jul. 02, 2016
Discontinued Operations and Disposal Groups [Abstract]
Assets Held for Sale and Net Gain on Disposition	Assets Held for Sale and Net Gain on Disposition We have designated certain properties as held for sale, due to strategic initiatives. At the time of designation, we ceased recognizing depreciation expense on these assets. As of July 2, 2016 , and January 2, 2016 , total assets held for sale were $8.4 million and $2.3 million , respectively, and were included in “Other current assets” in our Consolidated Balance Sheets. During the second quarter of fiscal 2016, we sold our Pearl, Mississippi distribution facility, reduced the balance of the mortgage by the cash received from the sale of $0.6 million , and recognized a gain of $0.3 million . We are actively marketing all properties that are designated as held for sale.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 02, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Carrying amounts for our financial instruments are not significantly different from their fair values, with the exception of our mortgage. To determine the fair value of our mortgage, we use a discounted cash flow model. We believe the mortgage fair value valuation to be Level 2 in the fair value hierarchy, as the valuation model has inputs that are observable for substantially the full term of the liability. As of July 2, 2016 , the carrying amount and fair value of our mortgage was $158.8 million and $167.3 million , respectively. The difference between the book value and the fair value is derived from the difference between the period-end market interest rate and the stated rate of our fixed-rate mortgage. The fair value of our debt is not indicative of the amounts at which we could settle our debt. Additionally, certain of our equity-based compensation awards are valued using an option-pricing model, which we believe to be Level 2 in the fair value hierarchy, as the valuation model has inputs that are observable for substantially the full term of the liability. See Note 7 for a discussion of these awards and the associated fair value measurements.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jul. 02, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Earnings per Share We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding unvested restricted shares. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock awards, restricted stock units, performance shares, performance units, and stock options. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material. Due to year-to-date net losses, basic and diluted earnings per share are equivalent for the three and six months ended July 2, 2016 , and the six months ended July 4, 2015 . The reconciliation of basic and diluted income per common share for the three months ended July 4, 2015 was as follows (in thousands, except per share data): Three Months Ended Net income $ 2,870 Basic weighted shares outstanding 8,739 Dilutive effect of share-based awards 47 Diluted weighted average shares outstanding 8,786 Basic earnings per share $ 0.33 Diluted earnings per share $ 0.33

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation During the second quarter of 2016, our stockholders approved our new 2016 Long-Term Incentive Plan (the “2016 Plan”), as a stock-based compensation plan covering officers, directors, and employees. The 2016 Plan also provides for the granting of certain cash-settled awards, such as Stock Appreciation Rights (“SARs”). These SARs allow the holder to receive in cash the difference between the cash-settled SARs’ grant price (the market value of our stock on the grant date) and the market value of our stock on the vesting date of the SAR. During the second quarter of fiscal 2016, we issued cash-settled SARs under the 2016 Plan. Quarterly expense attributions of the cash-settled SARs are based on estimates of the fair market value of the awards at the end of each quarter during the service period using the Black-Scholes-Merton option-pricing model (the “Black-Scholes model”).The Black-Scholes model requires the input of highly subjective assumptions such as the expected stock price volatility. The following table summarizes the assumptions used to compute the current fair value of our cash-settled SARs: Expected volatility 64.31 % Risk-free interest rate 0.59 % Expected term (in years) 2.04 Expected dividend yield Not applicable The cash-settled SARs vest on July 16, 2018, at which time half of any appreciation over the $7.00 exercise price will become payable within thirty days of the vesting date, and the remainder payable within one year . At July 2, 2016 , there were 369,000 cash-settled SARs issued and outstanding. Expense recorded in the second quarter of fiscal 2016 for these awards was immaterial.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 02, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Comprehensive income (loss) is a measure of income (loss) which includes both net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) results from items deferred from recognition into our Consolidated Statements of Operations and Comprehensive Income (Loss). Accumulated other comprehensive loss is separately presented on our Consolidated Balance Sheets as part of common stockholders’ deficit. The changes in balances for each component of Accumulated Other Comprehensive Income (Loss) for the quarter ended July 2, 2016 , were as follows (in thousands): Foreign currency, net of tax Defined benefit pension plan, net of tax Other, net of tax Total Accumulated Other Comprehensive Loss January 2, 2016, beginning balance $ 396 $ (35,382 ) $ 212 $ (34,774 ) Other comprehensive income (loss), net of tax (1) 306 (11,738 ) — (11,432 ) July 2, 2016, ending balance, net of tax $ 702 $ (47,120 ) $ 212 $ (46,206 ) (1) For the six months ended July 2, 2016 , there was $0.4 million of actuarial loss recognized in the statements of operations as a component of net periodic pension cost, which reduced the $12.2 million loss recognized in Other Comprehensive Loss as a result of the pension curtailment (see Note 2). There was no intraperiod income tax allocation and the deferred tax benefit was fully offset by a valuation allowance.

Liquidity

Liquidity	6 Months Ended
	Jul. 02, 2016
Debt Disclosure [Abstract]
Liquidity	Liquidity A portion of our debt is classified as “Current maturities of long-term debt” on our Condensed Consolidated Balance Sheet as of July 2, 2016 , since it is due within the next twelve months. These amounts consist of a remaining $59.1 million principal reduction of our mortgage, which is due by July 1, 2017 , and $3.5 million of the Tranche A Loan. We are actively engaged in marketing certain of our real estate holdings in order to meet the principal reduction date specified by our mortgage loan (see Note 4).

Subsequent Event

Subsequent Event	6 Months Ended
	Jul. 02, 2016
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On July 26, 2016, we were notified by the New York Stock Exchange (“NYSE”) that, as of that date, the average closing price of our common stock was no longer considered by the NYSE to be below $1.00 per share over a period of 30 consecutive trading days, which is the minimum average share price for continued listing on the NYSE. Accordingly, we have regained compliance with the NYSE’s minimum average share price continued listing standard. As previously disclosed in Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended January 2, 2016, we have not yet regained compliance with the NYSE’s average market capitalization and stockholders’ equity continued listing standard, because our average global market capitalization over a consecutive 30 trading-day period was less than $50 million, and, at the same time, our stockholders’ equity was less than $50 million. However, we have maintained a market capitalization of at least $50 million on a daily basis since March 29, 2016.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 02, 2016
Accounting Policies [Abstract]
Reclassifications	Reclassifications Certain amounts in the prior years’ consolidated financial statements have been revised to conform to the current year presentation, as the prior year Condensed Consolidated Statement of Cash Flow has been conformed to the current year condensed presentation.
New Accounting Standards	New Accounting Standards Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Under this ASU and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. The standard is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption of the standard is permitted, but not before December 15, 2016. We do not believe that the adoption of the revenue recognition standard will have a material impact on our Consolidated Financial Statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. Adoption of this standard may have a significant impact on our Consolidated Balance Sheets. Although we have not completed our assessment, we do not expect the adoption to change the recognition, measurement, or presentation of lease expenses within the Consolidated Statements of Operations and Cash Flows. Information about our current undiscounted future lease payments and the timing of those payments is in Note 13, “Lease Commitments,” in our Annual Report on Form 10-K for the year ended January 2, 2016 . Share-Based Compensation. In March 2016, the FASB issued ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718).” This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation, and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. We
Earnings per Share	Earnings per Share We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding unvested restricted shares. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock awards, restricted stock units, performance shares, performance units, and stock options. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material. Due to year-to-date net losses, basic and diluted earnings per share are equivalent for the three and six months ended July 2, 2016 , and the six months ended July 4, 2015 .

Employee Benefits (Tables)

Employee Benefits (Tables)	6 Months Ended
	Jul. 02, 2016
Compensation and Retirement Disclosure [Abstract]
Schedule of net periodic pension cost for pension plans	The following table shows the components of net periodic pension cost (in thousands): Three Months Ended Three Months Ended Service cost $ 252 $ 300 Interest cost on projected benefit obligation 1,271 1,250 Expected return on plan assets (1,551 ) (1,523 ) Amortization of unrecognized loss 223 211 Net periodic pension cost $ 195 $ 238 Six Months Ended July 2, 2016 Six Months Ended July 4, 2015 Service cost $ 504 $ 600 Interest cost on projected benefit obligation 2,542 2,500 Expected return on plan assets (3,102 ) (3,046 ) Amortization of unrecognized loss 447 422 Net periodic pension cost $ 391 $ 476

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jul. 02, 2016
Earnings Per Share [Abstract]
Earnings Per Share	The reconciliation of basic and diluted income per common share for the three months ended July 4, 2015 was as follows (in thousands, except per share data): Three Months Ended Net income $ 2,870 Basic weighted shares outstanding 8,739 Dilutive effect of share-based awards 47 Diluted weighted average shares outstanding 8,786 Basic earnings per share $ 0.33 Diluted earnings per share $ 0.33

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Assumptions used to compute the current fair value of cash settled-SARs	The following table summarizes the assumptions used to compute the current fair value of our cash-settled SARs: Expected volatility 64.31 % Risk-free interest rate 0.59 % Expected term (in years) 2.04 Expected dividend yield Not applicable

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 02, 2016
Equity [Abstract]
Schedule of changes in accumulated balances for each component of other comprehensive income (loss)	The changes in balances for each component of Accumulated Other Comprehensive Income (Loss) for the quarter ended July 2, 2016 , were as follows (in thousands): Foreign currency, net of tax Defined benefit pension plan, net of tax Other, net of tax Total Accumulated Other Comprehensive Loss January 2, 2016, beginning balance $ 396 $ (35,382 ) $ 212 $ (34,774 ) Other comprehensive income (loss), net of tax (1) 306 (11,738 ) — (11,432 ) July 2, 2016, ending balance, net of tax $ 702 $ (47,120 ) $ 212 $ (46,206 ) (1) For the six months ended July 2, 2016 , there was $0.4 million of actuarial loss recognized in the statements of operations as a component of net periodic pension cost, which reduced the $12.2 million loss recognized in Other Comprehensive Loss as a result of the pension curtailment (see Note 2). There was no intraperiod income tax allocation and the deferred tax benefit was fully offset by a valuation allowance.

Employee Benefits (Details)

Employee Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Compensation and Retirement Disclosure [Abstract]
Service cost	$ 252	$ 300	$ 504	$ 600
Interest cost on projected benefit obligation	1,271	1,250	2,542	2,500
Expected return on plan assets	(1,551)	(1,523)	(3,102)	(3,046)
Amortization of unrecognized loss	223	211	447	422
Net periodic pension cost	$ 195	$ 238	$ 391	$ 476

Employee Benefits (Narrative) (

Employee Benefits (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Compensation and Retirement Disclosure [Abstract]
Defined Benefit Plan, Actuarial Gain (Loss)			$ (12,200)
Pension curtailment, net of tax	$ 12,185	$ (6,102)	$ 12,185	$ (6,102)

Operational Efficiency Initia23

Operational Efficiency Initiatives (Details) - Operational Efficiency Initiatives $ in Thousands	3 Months Ended
	Jul. 02, 2016USD ($)distribution_centerposition
Facility Closing
Restructuring Cost and Reserve [Line Items]
Number of distribution centers to be closed or sold | distribution_center	4
Number of positions eliminated | position	60
Selling, general and administrative expenses
Restructuring Cost and Reserve [Line Items]
Other Restructuring Costs	$ 2,200
Selling, general and administrative expenses | Facility Closing
Restructuring Cost and Reserve [Line Items]
Severance Costs	1,200
Cost of sales
Restructuring Cost and Reserve [Line Items]
Inventory Write-down	4,300
Other Current Liabilities | Facility Closing
Restructuring Cost and Reserve [Line Items]
Severance Costs	$ 1,200

Assets Held for Sale and Net 24

Assets Held for Sale and Net Gain on Disposition (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 02, 2016	Jan. 02, 2016
Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Assets, Current	$ 8.4
Total Assets Held For Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Assets, Current		$ 2.3
Assets Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of facility	0.6
Gain on sale of facility	$ 0.3

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Millions	Jul. 02, 2016USD ($)
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage, fair value disclosure	$ 158.8
Fair Value, Inputs, Level 2 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage, fair value disclosure	$ 167.3

Earnings Per Share Earnings Per

Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Earnings Per Share [Abstract]
Net income	$ (3,144)	$ 2,870	$ (9,289)	$ (6,075)
Basic weighted shares outstanding	8,895	8,739	8,886	8,728
Dilutive effect of share-based awards		47
Diluted weighted average shares outstanding	8,895	8,786	8,886	8,728
Basic earnings per share (in dollars per share)		$ 0.33
Diluted earnings per share (in dollars per share)		$ 0.33

Share-Based Compensation (Detai

Share-Based Compensation (Details) - Long-Term 2016 Incentive Plan - Stock Appreciation Rights (SARs)	6 Months Ended
	Jul. 02, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	64.31%
Risk-free interest rate	0.59%
Expected term (in years)	2 years 15 days
Period At Which First Half of Stock Appreciation Rights Appreciation is Payable, 30 days	30 days
Period At Which Second Half of Stock Appreciation Rights Appreciation is Payable, one year	1 year
Exercise Price (in dollars per share) | $ / shares	$ 7
SARs issued and outstanding (in shares) | shares	369,000

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			$ (45,896)
Other comprehensive income, net of tax	$ (11,928)	$ 6,279	(11,432)	$ 6,208
Ending balance, net of tax	(65,561)		(65,561)
Pension curtailment, net of tax	(12,185)	$ 6,102	(12,185)	$ 6,102
Foreign currency, net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			396
Other comprehensive income, net of tax			306
Ending balance, net of tax	702		702
Defined benefit pension plan, net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			(35,382)
Other comprehensive income, net of tax			(11,738)
Ending balance, net of tax	(47,120)		(47,120)
Other, net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			212
Other comprehensive income, net of tax			0
Ending balance, net of tax	212		212
Total Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			(34,774)
Other comprehensive income, net of tax			(11,432)
Ending balance, net of tax	$ (46,206)		(46,206)
Defined benefit pension plans adjustment, net gain (loss), net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Reclassification of actuarial loss			$ 400

Liquidity (Details)

Liquidity (Details) - USD ($) $ in Thousands	Jul. 02, 2016	Jan. 02, 2016
Debt Instrument [Line Items]
Long-term Debt, Current Maturities	$ 62,653	$ 6,611
Mortgages
Debt Instrument [Line Items]
Long-term Debt, Current Maturities	59,100
Tranche A Loan
Debt Instrument [Line Items]
Long-term Debt, Current Maturities	$ 3,500

Subsequent Event (Details)

Subsequent Event (Details) $ in Millions	4 Months Ended
	Jul. 26, 2016USD ($)
Subsequent Event
Subsequent Event [Line Items]
Daily market capitalization minimum	$ 50