OTHER GAINS AND CHARGES

12 Months Ended

Jun. 25, 2025

Other (gains) and charges in the Consolidated Statements of Comprehensive Income consist of the following:


	Fiscal Years Ended
	June 25, 2025		June 26, 2024		June 28, 2023
Litigation & claims, net	$	22.4	$	6.6	$	2.5
Enterprise system implementation costs	14.1		14.0		4.7
Restaurant-level impairment charges	4.6		12.3		12.1
Restaurant closure asset write-offs and charges	4.1		10.1		8.3
Severance and other benefit charges	2.4		0.5		3.7
Lease contingencies	1.7		0.8		2.0
Gain on sale of assets, net	(0.5)		(2.7)		(3.7)
Loss from natural disasters, net (of insurance recoveries)	(3.7)		(0.4)		0.8
Lease modification gain, net	(5.1)		(0.3)		(0.7)
Other	1.8		2.3		3.0
	$	41.8	$	43.2	$	32.7

Litigation & claims, net in the current year primarily relates to legal contingencies, inclusive of certain extraordinary one-time settlements related to employment and intellectual property claims, and alcohol service-related cases.

Enterprise system implementation costs primarily consists of software subscription fees and certain other costs prior to implementation and post go-live support of the cloud based Enterprise Resource Planning (“ERP”) system.

Restaurant-level impairment charges primarily associated with the following long-lived assets:

•Fiscal 2025 - 13 underperforming Chili’s restaurants. Refer to Note 3 - Fair Value Measurements for further details.

•Fiscal 2024 - 35 underperforming Chili’s restaurants.

•Fiscal 2023 - 38 underperforming Chili’s restaurants.

Restaurant closure asset write-offs and charges includes costs associated with the closure of certain Chili’s and Maggiano’s restaurants.

Severance and other benefit charges relates to changes in our management team and organizational structure.

Lease contingencies includes expenses related to lease guarantees and certain sublease receivables for divested brands when we have determined it is probable that the current lessee will default on the lease obligation. Refer to Note 8 - Commitments and Contingencies for additional information about our secondarily liable lease guarantees.

Gain on sale of assets, net relates to the sale of alcohol licenses for closed restaurants in fiscal 2025 and the sale of a land parcel for a closed Chili’s restaurant in fiscal 2024.

Loss from natural disasters, net (of insurance recoveries) in the current year primarily relates to proceeds received from fiscal 2021 Winter Storm claim, partially offset by costs incurred related to Hurricane Helene and Hurricane Milton.

Lease modification gain, net in the current year primarily relates to a lease termination fee received from a landlord associated with a Maggiano’s location and reduction of lease liabilities of certain closed Chili’s restaurants.