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Reorganization and Realignment Costs | 12 Months Ended
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Jan. 03, 2021
Restructuring and Related Activities [Abstract] |
Reorganization and Realignment Costs | Reorganization and Realignment Costs The following is a summary of the initiatives included in “Reorganization and realignment costs:”
| Year Ended
| 2020 |  | 2019 |  | 2018
Operations and field realignment | $ | 3,801 |  |  | $ | — |  |  | $ | — |
IT realignment | 7,288 |  |  | 9,127 |  |  | — |
G&A realignment | 614 |  |  | 7,749 |  |  | 8,785 |
System optimization initiative | 4,327 |  |  | 89 |  |  | 283 |
Reorganization and realignment costs | $ | 16,030 |  |  | $ | 16,965 |  |  | $ | 9,068 |
Operations and Field Realignment In September 2020, the Company initiated a plan to reallocate resources to better support the long-term growth strategies for Company and franchise operations (the “Operations and Field Realignment Plan”). The Operations and Field Realignment Plan realigns the Company’s restaurant operations team, including transitioning from separate leaders of Company and franchise operations to a single leader of all U.S. restaurant operations. We also expect to incur contract termination charges, including the planned closure of certain field offices. The Company expects to incur total costs aggregating approximately $7,000 to $9,000 related to the Operations and Field Realignment Plan. During 2020, the Company recognized costs totaling $3,801, which primarily included severance and related employee costs and share-based compensation. The Company expects to incur additional costs aggregating approximately $3,000 to $5,000, comprised primarily of third-party and other costs. The Company expects to recognize the majority of the remaining costs associated with the Operations and Field Realignment Plan during 2021. The following is a summary of the activity recorded as a result of the Operations and Field Realignment Plan:
| Year Ended
| 2020
Severance and related employee costs | $ | 3,113 |
Third party and other costs | 67 |
| 3,180 |
Share-based compensation (a) | 621 |
Total operations and field realignment | $ | 3,801 |
_______________ (a)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the Operations and Field Realignment Plan. The accruals for the Operations and Field Realignment Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $2,487 and $113 as of January 3, 2021. The table below presents a rollforward of our accruals for the Operations and Field Realignment Plan.
| Balance December 29, 2019 |  | Charges |  | Payments |  | Balance January 3, 2021
Severance and related employee costs | $ | — |  |  | $ | 3,113 |  |  | $ | (513) |  |  | $ | 2,600 |
Third party and other costs | — |  |  | 67 |  |  | (67) |  |  | — |
| $ | — |  |  | $ | 3,180 |  |  | $ | (580) |  |  | $ | 2,600 |
Information Technology (“IT”) Realignment In December 2019, our Board of Directors approved a plan to realign and reinvest resources in the Company’s IT organization to strengthen its ability to accelerate growth (the “IT Realignment Plan”). The Company has partnered with a third-party global IT consultant on this new structure to leverage their global capabilities, which will enable a more seamless integration between its digital and corporate IT assets. The IT Realignment Plan has reduced certain employee compensation and other related costs that the Company has reinvested back into IT to drive additional capabilities and capacity across all of its technology platforms. Additionally, in June 2020, the Company made changes to its leadership structure that included the elimination of the Chief Digital Experience Officer position and the creation of a Chief Information Officer position, for which the Company completed the hiring process in October 2020. During 2020 and 2019, the Company recognized costs totaling $7,288 and $9,127, respectively, which primarily included third-party and other costs and recruitment and relocation costs in 2020 and severance and related employee costs and third-party and other costs in 2019. The Company does not expect to incur any material additional costs under the IT Realignment Plan. The following is a summary of the activity recorded as a result of the IT Realignment Plan:
| Year Ended |  | Total Incurred Since Inception
| 2020 |  | 2019 |
Severance and related employee costs | $ | 843 |  |  | $ | 7,548 |  |  | $ | 8,391 |
Recruitment and relocation costs | 1,296 |  |  | — |  |  | 1,296 |
Third-party and other costs | 5,149 |  |  | 1,386 |  |  | 6,535 |
| 7,288 |  |  | 8,934 |  |  | 16,222 |
Share-based compensation (a) | — |  |  | 193 |  |  | 193 |
Total IT realignment | $ | 7,288 |  |  | $ | 9,127 |  |  | $ | 16,415 |
_______________ (a)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the IT realignment plan. As of January 3, 2021, the accruals for our IT Realignment Plan are included in “Accrued expenses and other current liabilities.” As of December 29, 2019, the accruals for our IT Realignment Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $8,025 and $599, respectively. The tables below present a rollforward of our accruals for the IT Realignment Plan:
| Balance December 29, 2019 |  | Charges |  | Payments |  | Balance January 3, 2021
Severance and related employee costs | $ | 7,548 |  |  | $ | 843 |  |  | $ | (6,883) |  |  | $ | 1,508 |
Recruitment and relocation costs | — |  |  | 1,296 |  |  | (1,296) |  |  | — |
Third-party and other costs | 1,076 |  |  | 5,149 |  |  | (6,225) |  |  | — |
| $ | 8,624 |  |  | $ | 7,288 |  |  | $ | (14,404) |  |  | $ | 1,508 |
| Balance December 30, 2018 |  | Charges |  | Payments |  | Balance December 29, 2019
Severance and related employee costs | $ | — |  |  | $ | 7,548 |  |  | $ | — |  |  | $ | 7,548 |
Recruitment and relocation costs | — |  |  | — |  |  | — |  |  | — |
Third-party and other costs | — |  |  | 1,386 |  |  | (310) |  |  | 1,076 |
| $ | — |  |  | $ | 8,934 |  |  | $ | (310) |  |  | $ | 8,624 |
General and Administrative (“G&A”) Realignment In May 2017, the Company initiated a plan to further reduce its G&A expenses (the “G&A Realignment Plan”). Additionally, in May 2019, the Company announced changes to its management and operating structure that included the creation of two new positions, a President, U.S and Chief Commercial Officer and a President, International and Chief Development Officer, and the elimination of the Chief Operations Officer position. During 2020, 2019 and 2018, the Company recognized costs related to the plan totaling $614, $7,749 and $8,785, respectively, which primarily included recruitment and relocation costs and share-based compensation in 2020 and severance and related employee costs and share-based compensation in 2019 and 2018. The Company does not expect to incur any material additional costs under the G&A Realignment Plan. The following is a summary of the activity recorded as a result of the G&A Realignment Plan:
| Year Ended |  | Total Incurred Since Inception
| 2020 |  | 2019 |  | 2018 |
Severance and related employee costs | $ | 28 |  |  | $ | 5,485 |  |  | $ | 3,797 |  |  | $ | 24,266 |
Recruitment and relocation costs | 360 |  |  | 950 |  |  | 1,077 |  |  | 2,876 |
Third-party and other costs | 13 |  |  | 100 |  |  | 1,019 |  |  | 2,223 |
| 401 |  |  | 6,535 |  |  | 5,893 |  |  | 29,365 |
Share-based compensation (a) | 213 |  |  | 1,214 |  |  | 1,557 |  |  | 8,111 |
Termination of defined benefit plans (b) | — |  |  | — |  |  | 1,335 |  |  | 1,335 |
Total G&A realignment | $ | 614 |  |  | $ | 7,749 |  |  | $ | 8,785 |  |  | $ | 38,811 |
_______________ (a)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the G&A Realignment Plan. (b)During 2018, the Company terminated two frozen defined benefit plans. See Note 19 for further information. As of January 3, 2021, the accruals for the G&A Realignment Plan are included in “Accrued expenses and other current liabilities.” As of December 29, 2019, the accruals for the G&A Realignment Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $4,504 and $855, respectively. The tables below present a rollforward of our accruals for the G&A Realignment Plan.
| Balance December 29, 2019 |  | Charges |  | Payments |  | Balance January 3, 2021
Severance and related employee costs | $ | 5,276 |  |  | $ | 28 |  |  | $ | (4,372) |  |  | $ | 932 |
Recruitment and relocation costs | 83 |  |  | 360 |  |  | (443) |  |  | — |
Third-party and other costs | — |  |  | 13 |  |  | (13) |  |  | — |
| $ | 5,359 |  |  | $ | 401 |  |  | $ | (4,828) |  |  | $ | 932 |
| Balance December 30, 2018 |  | Charges |  | Payments |  | Balance December 29, 2019
Severance and related employee costs | $ | 7,241 |  |  | $ | 5,485 |  |  | $ | (7,450) |  |  | $ | 5,276 |
Recruitment and relocation costs | 83 |  |  | 950 |  |  | (950) |  |  | 83 |
Third-party and other costs | — |  |  | 100 |  |  | (100) |  |  | — |
| $ | 7,324 |  |  | $ | 6,535 |  |  | $ | (8,500) |  |  | $ | 5,359 |
System Optimization Initiative The Company recognizes costs related to acquisitions and dispositions under its system optimization initiative. During 2020, the Company recognized costs totaling $4,327, which were primarily comprised of professional fees related to the NPC bankruptcy sale process. See Note 4 for further information. The Company expects to incur additional costs of approximately $3,000 related to the NPC bankruptcy sale process during 2021. The following is a summary of the costs recorded as a result of our system optimization initiative:
| Year Ended |  | Total Incurred Since Inception
| 2020 |  | 2019 |  | 2018 |
Severance and related employee costs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 18,237 |
Professional fees | 4,323 |  |  | 72 |  |  | 264 |  |  | 22,107 |
Other | 4 |  |  | 17 |  |  | 19 |  |  | 5,853 |
| 4,327 |  |  | 89 |  |  | 283 |  |  | 46,197 |
Accelerated depreciation and amortization (a) | — |  |  | — |  |  | — |  |  | 25,398 |
Share-based compensation (b) | — |  |  | — |  |  | — |  |  | 5,013 |
Total system optimization initiative | $ | 4,327 |  |  | $ | 89 |  |  | $ | 283 |  |  | $ | 76,608 |
_______________ (a)Primarily includes accelerated amortization of previously acquired franchise rights related to Company-operated restaurants in territories that have been sold to franchisees in connection with our system optimization initiative. (b)Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative. The table below presents a rollforward of our accruals for our system optimization initiative, which are included in “Accrued expenses and other current liabilities.”
| Balance December 29, 2019 |  | Charges |  | Payments |  | Balance January 3, 2021
Professional fees | $ | — |  |  | $ | 4,323 |  |  | $ | (3,093) |  |  | $ | 1,230 |
Other | — |  |  | 4 |  |  | (4) |  |  | — |
| $ | — |  |  | $ | 4,327 |  |  | $ | (3,097) |  |  | $ | 1,230 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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