Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation (Tables)

4 Months Ended

Dec. 16, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidation Basis of Accounting, Expected Costs and Incomes Accrued

Upon transition to the liquidation basis of accounting on November 19, 2020, the Company accrued the following revenues and expenses expected to be earned or incurred during liquidation (in thousands):

Initial Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation	November 19, 2020
Total estimated receipts during liquidation	92,017
Total estimated costs of operations	(76,151)
Selling, general and administrative expenses	(18,745)
Interest expense	(2,305)
Interest component of operating lease payments	(7,064)
Capital expenditures	(943)
Sales costs	(4,079)
Total estimated costs during liquidation	(109,287)
Liability for estimated costs in excess of estimated receipts during liquidation	$	(17,270)

Liquidation Basis of Accounting, Estimated Costs in Excess of Estimated Receipts

The change in the liability for estimated costs in excess of estimated receipts during liquidation between November 19, 2020 and December 16, 2020 is as follows (in thousands):

	November 19, 2020		Net Change in Working Capital		Remeasurement of Assets and Liabilities (3)		December 16, 2020
Assets:
Estimated net inflows from operations (1)	$	7,859	$	(2,470)	$	—	$	5,389
	7,859		(2,470)		—		5,389
Liabilities:
Sales costs	(4,079)		—		—		(4,079)
Corporate expenditures (2)	(21,050)		2,929		36		(18,085)
	(25,129)		2,929		36		(22,164)
Liability for estimated costs in excess of estimated receipts during liquidation	$	(17,270)	$	459	$	36	$	(16,775)

(1) Estimated net inflows from operations consists of total estimated receipts during liquidation less the sum of (i) total estimated costs of operations during liquidation, (ii) interest component of operating lease payments and (iii) capital expenditures.

(2) Corporate expenditures consists of (i) selling, general and administrative expenses and (ii) interest expense.

(3) Net assets in liquidation decreased by $36 thousand during the period from November 19, 2020 through December 16, 2020. The primary reason for the decrease in net assets was due to a remeasurement of expected cash flows from operations.