Impairment and Exit Costs

12 Months Ended

Dec. 31, 2023

Impairments and Exit Costs [Abstract]

The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated:


	FISCAL YEAR
(dollars in thousands)	2023		2022		2021
Impairment losses
U.S.	$	39,812	$	3,942	$	11,945
International	600		1,537		1,186
Corporate	—		7		270
Total impairment losses	40,412		5,486		13,401
Restaurant closure (benefit) charges
U.S.	(7,143)		478		422
International	305		—		(86)
Total restaurant closure (benefit) charges	(6,838)		478		336
Provision for impaired assets and restaurant closings	$	33,574	$	5,964	$	13,737

2023 Closure Initiative - During the fourteen weeks ended December 31, 2023, the Company recognized asset impairments and closure charges in connection with the closure of three U.S. and two international Aussie Grill restaurants and the decision to close 36 predominantly older, underperforming U.S. restaurants (the “2023 Closure Initiative”). All remaining restaurant closures under the 2023 Closure Initiative were completed in February 2024, with an estimated $8 million to $11 million of related severance and closure charges to be recorded during the thirteen weeks ended March 31, 2024. Following is a summary of the 2023 Closure Initiative charges recognized in the Consolidated Statements of Operations and Comprehensive Income for the periods indicated (dollars in thousands):

DESCRIPTION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME CLASSIFICATION

FOURTEEN WEEKS AND FISCAL YEAR ENDED

DECEMBER 31, 2023

Property, fixtures and equipment impairments

Provision for impaired assets and restaurant closings

23,934

Lease right-of-use asset impairments and closure charges

Provision for impaired assets and restaurant closings

10,266

Severance and other expenses

General and administrative

622

Lease remeasurement gains

Other restaurant operating

(2,450)

32,372

During 2023, the Company recognized a lease termination gain of $6.7 million, net of related asset impairments, in connection with the closure of one U.S. restaurant.

The remaining impairment and closure charges during the periods presented resulted primarily from locations identified for closure or relocation.

Accrued Closed Facility Liabilities Rollforward - The following table is a rollforward of the Company’s closed facility lease-related liabilities and other accrued costs associated with closure and restructuring initiatives for the period indicated:


	FISCAL YEAR
(dollars in thousands)	2023
Balance, beginning of the period	$	5,476
Additions	3,340
Cash payments	(1,142)
Accretion	317
Adjustments	(1,737)
Balance, end of the period	$	6,254