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Reorganization and Realignment Costs (Tables) | 9 Months Ended
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Oct. 03, 2021
Restructuring Cost and Reserve |
Restructuring and Related Costs | The following is a summary of the initiatives included in “Reorganization and realignment costs:”
| Three Months Ended |  | Nine Months Ended
| October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020
Operations and field realignment | $ | 74 |  |  | $ | 3,021 |  |  | $ | 1,563 |  |  | $ | 3,021 |
IT realignment | (17) |  |  | 403 |  |  | (11) |  |  | 6,809 |
G&A realignment | (7) |  |  | (49) |  |  | (41) |  |  | 282 |
System optimization initiative | 295 |  |  | — |  |  | 5,870 |  |  | 84 |
Reorganization and realignment costs | $ | 345 |  |  | $ | 3,375 |  |  | $ | 7,381 |  |  | $ | 10,196 |
Operations and Field Realignment |
Restructuring Cost and Reserve |
Restructuring and Related Costs | The following is a summary of the activity recorded as a result of the Operations and Field Realignment Plan:
| Three Months Ended |  | Nine Months Ended |  | Total Incurred Since Inception
| October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020 |
Severance and related employee costs | $ | — |  |  | $ | 2,502 |  |  | $ | 333 |  |  | $ | 2,502 |  |  | $ | 3,446 |
Third-party and other costs | 74 |  |  | — |  |  | 1,230 |  |  | — |  |  | 1,297 |
| 74 |  |  | 2,502 |  |  | 1,563 |  |  | 2,502 |  |  | 4,743 |
Share-based compensation (a) | — |  |  | 519 |  |  | — |  |  | 519 |  |  | 621 |
Total operations and field realignment | $ | 74 |  |  | $ | 3,021 |  |  | $ | 1,563 |  |  | $ | 3,021 |  |  | $ | 5,364 |
_______________ (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.
Schedule of Restructuring Reserve by Type of Cost | The table below presents a rollforward of our accruals for the Operations and Field Realignment Plan, which are included in “Accrued expenses and other current liabilities” as of October 3, 2021.
| Balance January 3, 2021 |  | Charges |  | Payments |  | Balance October 3, 2021
Severance and related employee costs | $ | 2,600 |  |  | $ | 333 |  |  | $ | (2,377) |  |  | $ | 556 |
Third-party and other costs | — |  |  | 1,230 |  |  | (1,230) |  |  | — |
| $ | 2,600 |  |  | $ | 1,563 |  |  | $ | (3,607) |  |  | $ | 556 |
| Balance December 29, 2019 |  | Charges |  | Payments |  | Balance September 27, 2020
Severance and related employee costs | $ | — |  |  | $ | 2,502 |  |  | $ | — |  |  | $ | 2,502 |
IT Realignment |
Restructuring Cost and Reserve |
Restructuring and Related Costs | The following is a summary of the activity recorded as a result of the IT Realignment Plan:
| Three Months Ended |  | Nine Months Ended |  | Total Incurred Since Inception
| October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020 |
Severance and related employee costs (a) | $ | (32) |  |  | $ | 34 |  |  | $ | (151) |  |  | $ | 1,009 |  |  | $ | 8,240 |
Recruitment and relocation costs | 12 |  |  | 345 |  |  | 133 |  |  | 659 |  |  | 1,429 |
Third-party and other costs | 3 |  |  | 24 |  |  | 7 |  |  | 5,141 |  |  | 6,542 |
| (17) |  |  | 403 |  |  | (11) |  |  | 6,809 |  |  | 16,211 |
Share-based compensation (b) | — |  |  | — |  |  | — |  |  | — |  |  | 193 |
Total IT realignment | $ | (17) |  |  | $ | 403 |  |  | $ | (11) |  |  | $ | 6,809 |  |  | $ | 16,404 |
_______________ (a)The three and nine months ended October 3, 2021 include a reversal of an accrual as a result of a change in estimate. (b)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.
Schedule of Restructuring Reserve by Type of Cost | As of October 3, 2021, the accruals for the IT Realignment Plan are included in “Accrued expenses and other current liabilities.” As of September 27, 2020, the accruals for the IT Realignment Plan were included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $2,739 and $178, respectively. The tables below present a rollforward of our accruals for the IT Realignment Plan.
| Balance January 3, 2021 |  | Charges |  | Payments |  | Balance October 3, 2021
Severance and related employee costs | $ | 1,508 |  |  | $ | (151) |  |  | $ | (1,115) |  |  | $ | 242 |
Recruitment and relocation costs | — |  |  | 133 |  |  | (133) |  |  | — |
Third-party and other costs | — |  |  | 7 |  |  | (7) |  |  | — |
| $ | 1,508 |  |  | $ | (11) |  |  | $ | (1,255) |  |  | $ | 242 |
| Balance December 29, 2019 |  | Charges |  | Payments |  | Balance September 27, 2020
Severance and related employee costs | $ | 7,548 |  |  | $ | 1,009 |  |  | $ | (5,640) |  |  | $ | 2,917 |
Recruitment and relocation costs | — |  |  | 659 |  |  | (659) |  |  | — |
Third-party and other costs | 1,076 |  |  | 5,141 |  |  | (6,217) |  |  | — |
| $ | 8,624 |  |  | $ | 6,809 |  |  | $ | (12,516) |  |  | $ | 2,917 |
G&A Realignment |
Restructuring Cost and Reserve |
Restructuring and Related Costs | The following is a summary of the activity recorded as a result of the G&A Realignment Plan:
| Three Months Ended |  | Nine Months Ended |  | Total Incurred Since Inception
| October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020 |
Severance and related employee costs (a) | $ | (8) |  |  | $ | (116) |  |  | $ | (61) |  |  | $ | 30 |  |  | $ | 24,205 |
Recruitment and relocation costs | 1 |  |  | 27 |  |  | 1 |  |  | 42 |  |  | 2,877 |
Third-party and other costs | — |  |  | 9 |  |  | — |  |  | 10 |  |  | 2,223 |
| (7) |  |  | (80) |  |  | (60) |  |  | 82 |  |  | 29,305 |
Share-based compensation (b) | — |  |  | 31 |  |  | 19 |  |  | 200 |  |  | 8,130 |
Termination of defined benefit plans | — |  |  | — |  |  | — |  |  | — |  |  | 1,335 |
Total G&A realignment | $ | (7) |  |  | $ | (49) |  |  | $ | (41) |  |  | $ | 282 |  |  | $ | 38,770 |
_______________ (a)The three and nine months ended October 3, 2021 and September 27, 2020 include a reversal of an accrual as a result of a change in estimate. (b)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under our G&A Realignment Plan.
Schedule of Restructuring Reserve by Type of Cost | As of October 3, 2021, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities.” As of September 27, 2020, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled and $1,705 and $18, respectively. The tables below present a rollforward of our accruals for the G&A Realignment Plan.
| Balance January 3, 2021 |  | Charges |  | Payments |  | Balance October 3, 2021
Severance and related employee costs | $ | 932 |  |  | $ | (61) |  |  | $ | (828) |  |  | $ | 43 |
Recruitment and relocation costs | — |  |  | 1 |  |  | (1) |  |  | — |
Third-party and other costs | — |  |  | — |  |  | — |  |  | — |
| $ | 932 |  |  | $ | (60) |  |  | $ | (829) |  |  | $ | 43 |
| Balance December 29, 2019 |  | Charges |  | Payments |  | Balance September 27, 2020
Severance and related employee costs | $ | 5,276 |  |  | $ | 30 |  |  | $ | (3,627) |  |  | $ | 1,679 |
Recruitment and relocation costs | 83 |  |  | 42 |  |  | (81) |  |  | 44 |
Third-party and other costs | — |  |  | 10 |  |  | (10) |  |  | — |
| $ | 5,359 |  |  | $ | 82 |  |  | $ | (3,718) |  |  | $ | 1,723 |
System Optimization Initiative |
Restructuring Cost and Reserve |
Restructuring and Related Costs | The following is a summary of the costs recorded as a result of our system optimization initiative:
| Three Months Ended |  | Nine Months Ended |  | Total Incurred Since Inception
| October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020 |
Severance and related employee costs | $ | — |  |  | $ | — |  |  | $ | 661 |  |  | $ | — |  |  | $ | 18,898 |
Professional fees | 277 |  |  | — |  |  | 1,016 |  |  | 80 |  |  | 23,123 |
Other (a) | — |  |  | — |  |  | 1,354 |  |  | 4 |  |  | 7,207 |
| 277 |  |  | — |  |  | 3,031 |  |  | 84 |  |  | 49,228 |
Accelerated depreciation and amortization (b) | — |  |  | — |  |  | — |  |  | — |  |  | 25,398 |
NPC lease termination costs (c) | 18 |  |  | — |  |  | 2,839 |  |  | — |  |  | 2,839 |
Share-based compensation (d) | — |  |  | — |  |  | — |  |  | — |  |  | 5,013 |
Total system optimization initiative | $ | 295 |  |  | $ | — |  |  | $ | 5,870 |  |  | $ | 84 |  |  | $ | 82,478 |
_______________ (a)The nine months ended October 3, 2021 includes transaction fees of $1,350 associated with the NPC bankruptcy sale process. (b)Primarily includes accelerated amortization of previously acquired franchise rights related to the Company-operated restaurants in territories that have been sold to franchisees in connection with our system optimization initiative. (c)The nine months ended October 3, 2021 includes the write-off of lease assets of $1,359 and lease termination fees paid of $1,480. (d)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.
Schedule of Restructuring Reserve by Type of Cost | The table below presents a rollforward of our accruals for our system optimization initiative, which were included in “Accrued expenses and other current liabilities” as of January 3, 2021.
| Balance January 3, 2021 |  | Charges |  | Payments |  | Balance October 3, 2021
Severance and related employee costs | $ | — |  |  | $ | 661 |  |  | $ | (661) |  |  | $ | — |
Professional fees | 1,230 |  |  | 1,016 |  |  | (2,246) |  |  | — |
Other | — |  |  | 1,354 |  |  | (1,354) |  |  | — |
| $ | 1,230 |  |  | $ | 3,031 |  |  | $ | (4,261) |  |  | $ | — |

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