XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Reorganization and Realignment Costs | 12 Months Ended
--- | ---
Jan. 02, 2022
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
| 2021 |  | 2020 |  | 2019
Operations and field realignment | $ | 1,758 |  |  | $ | 3,801 |  |  | $ | — |
IT realignment | (10) |  |  | 7,288 |  |  | 9,127 |
G&A realignment | (52) |  |  | 614 |  |  | 7,749 |
System optimization initiative | 6,852 |  |  | 4,327 |  |  | 89 |
Reorganization and realignment costs | $ | 8,548 |  |  | $ | 16,030 |  |  | $ | 16,965 |
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 realigned 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. The Operations and Field Realignment Plan also included contract terminations, including the closure of certain field offices. During 2021 and 2020, the Company recognized costs totaling $1,758 and $3,801, respectively, which primarily included third-party and other costs in 2021 and severance and related employee costs and share-based compensation in 2020. The Company does not expect to incur any material additional costs under the Operations and Field Realignment Plan. The following is a summary of the activity recorded as a result of the Operations and Field Realignment Plan:
| Year Ended |  | Total Incurred Since Inception
| 2021 |  | 2020 |
Severance and related employee costs | $ | 270 |  |  | $ | 3,113 |  |  | $ | 3,383 |
Third-party and other costs | 1,488 |  |  | 67 |  |  | 1,555 |
| 1,758 |  |  | 3,180 |  |  | 4,938 |
Share-based compensation (a) | — |  |  | 621 |  |  | 621 |
Total operations and field realignment | $ | 1,758 |  |  | $ | 3,801 |  |  | $ | 5,559 |
_______________ (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. As of January 2, 2022, the accruals for the Operations and Field Realignment Plan are included in “Accrued expenses and other current liabilities.” As of January 3, 2021, 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, respectively. The tables below present a rollforward of our accruals for the Operations and Field Realignment Plan.
| Balance January 3, 2021 |  | Charges |  | Payments |  | Balance January 2, 2022
Severance and related employee costs | $ | 2,600 |  |  | $ | 270 |  |  | $ | (2,715) |  |  | $ | 155 |
Third-party and other costs | — |  |  | 1,488 |  |  | (1,477) |  |  | 11 |
| $ | 2,600 |  |  | $ | 1,758 |  |  | $ | (4,192) |  |  | $ | 166 |
| 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, enabling 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
| 2021 |  | 2020 |  | 2019 |
Severance and related employee costs (a) | $ | (165) |  |  | $ | 843 |  |  | $ | 7,548 |  |  | $ | 8,226 |
Recruitment and relocation costs | 146 |  |  | 1,296 |  |  | — |  |  | 1,442 |
Third-party and other costs | 9 |  |  | 5,149 |  |  | 1,386 |  |  | 6,544 |
| (10) |  |  | 7,288 |  |  | 8,934 |  |  | 16,212 |
Share-based compensation (b) | — |  |  | — |  |  | 193 |  |  | 193 |
Total IT realignment | $ | (10) |  |  | $ | 7,288 |  |  | $ | 9,127 |  |  | $ | 16,405 |
_______________ (a)2021 includes 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. The tables below present a rollforward of our accruals for the IT Realignment Plan, which are included in “Accrued expenses and other current liabilities” as of January 2, 2022 and January 3, 2021.
| Balance January 3, 2021 |  | Charges |  | Payments |  | Balance January 2, 2022
Severance and related employee costs | $ | 1,508 |  |  | $ | (165) |  |  | $ | (1,250) |  |  | $ | 93 |
Recruitment and relocation costs | — |  |  | 146 |  |  | (146) |  |  | — |
Third-party and other costs | — |  |  | 9 |  |  | (9) |  |  | — |
| $ | 1,508 |  |  | $ | (10) |  |  | $ | (1,405) |  |  | $ | 93 |
| 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 |
General and Administrative (“G&A”) Realignment In May 2017, the Company initiated a plan to 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 and 2019, the Company recognized costs totaling $614 and $7,749, 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. 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
| 2021 |  | 2020 |  | 2019 |
Severance and related employee costs (a) | $ | (74) |  |  | $ | 28 |  |  | $ | 5,485 |  |  | $ | 24,192 |
Recruitment and relocation costs | 1 |  |  | 360 |  |  | 950 |  |  | 2,877 |
Third-party and other costs | 2 |  |  | 13 |  |  | 100 |  |  | 2,225 |
| (71) |  |  | 401 |  |  | 6,535 |  |  | 29,294 |
Share-based compensation (b) | 19 |  |  | 213 |  |  | 1,214 |  |  | 8,130 |
Termination of defined benefit plans | — |  |  | — |  |  | — |  |  | 1,335 |
Total G&A realignment | $ | (52) |  |  | $ | 614 |  |  | $ | 7,749 |  |  | $ | 38,759 |
_______________ (a)2021 includes 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 G&A Realignment Plan. The tables below present a rollforward of our accruals for the G&A Realignment Plan, which are included in “Accrued expenses and other current liabilities” as of January 2, 2022 and January 3, 2021.
| Balance January 3, 2021 |  | Charges |  | Payments |  | Balance January 2, 2022
Severance and related employee costs | $ | 932 |  |  | $ | (74) |  |  | $ | (847) |  |  | $ | 11 |
Recruitment and relocation costs | — |  |  | 1 |  |  | (1) |  |  | — |
Third-party and other costs | — |  |  | 2 |  |  | (2) |  |  | — |
| $ | 932 |  |  | $ | (71) |  |  | $ | (850) |  |  | $ | 11 |
| 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 |
System Optimization Initiative The Company recognizes costs related to acquisitions and dispositions under its system optimization initiative. During 2021, the Company recognized costs totaling $6,852, which were primarily comprised of the write-off of certain lease assets, lease termination fees and transaction fees associated with the NPC bankruptcy sale process, as well as professional fees and transaction fees associated with the Company’s acquisition of 93 franchise-operated restaurants in Florida during the fourth quarter of 2021. During 2020, the Company recognized costs totaling $4,327, which primarily included professional fees related to the NPC bankruptcy sale process. See Note 3 for further information. The Company expects to recognize a gain of approximately $800, primarily related to the write-off of certain NPC-related lease liabilities upon final termination of the leases. The following is a summary of the costs recorded as a result of our system optimization initiative:
| Year Ended |  | Total Incurred Since Inception
| 2021 |  | 2020 |  | 2019 |
Severance and related employee costs | $ | 661 |  |  | $ | — |  |  | $ | — |  |  | $ | 18,898 |
Professional fees | 1,570 |  |  | 4,323 |  |  | 72 |  |  | 23,677 |
Other (a) | 1,765 |  |  | 4 |  |  | 17 |  |  | 7,618 |
| 3,996 |  |  | 4,327 |  |  | 89 |  |  | 50,193 |
Accelerated depreciation and amortization (b) | — |  |  | — |  |  | — |  |  | 25,398 |
NPC lease termination costs (c) | 2,856 |  |  | — |  |  | — |  |  | 2,856 |
Share-based compensation (d) | — |  |  | — |  |  | — |  |  | 5,013 |
Total system optimization initiative | $ | 6,852 |  |  | $ | 4,327 |  |  | $ | 89 |  |  | $ | 83,460 |
_______________ (a)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)2021 includes the write-off of lease assets of $1,376 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. The tables below present 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 January 2, 2022
Severance and related employee costs | $ | — |  |  | $ | 661 |  |  | $ | (661) |  |  | $ | — |
Professional fees | 1,230 |  |  | 1,570 |  |  | (2,800) |  |  | — |
Other | — |  |  | 1,765 |  |  | (1,765) |  |  | — |
| $ | 1,230 |  |  | $ | 3,996 |  |  | $ | (5,226) |  |  | $ | — |
| 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 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration