XML 120 R37.htm IDEA: XBRL DOCUMENT v3.19.3
Impairment and Other Charges, Net (Tables)
12 Months Ended
Sep. 29, 2019
Restructuring and Related Activities [Abstract]  
Impairment and Disposal Costs Included in Impairment and Other Charges
Impairment and other charges, net, in the accompanying consolidated statements of earnings is comprised of the following in each fiscal year (in thousands): 
 
 
2019
 
2018
 
2017
Restructuring costs
 
$
8,455


$
10,647


$
3,631

Costs of closed restaurants and other
 
8,628


4,803


5,736

(Gains) losses on disposition of property and equipment, net
 
(6,244
)
 
1,627

 
2,891

Accelerated depreciation
 
1,616


1,130


911

Operating restaurant impairment charges
 

 
211

 

 
 
$
12,455

 
$
18,418

 
$
13,169


Restructuring and Related Costs
The following is a summary of the costs incurred in connection with these activities during each fiscal year (in thousands):
 
 
2019
 
2018
 
2017
Employee severance and related costs
 
$
7,169

 
$
7,845

 
$
724

Strategic Alternatives Evaluation (1)
 
1,286

 

 

Qdoba Evaluation (2)
 

 
2,211

 
2,592

Other
 

 
591

 
315

 
 
$
8,455

 
$
10,647

 
$
3,631

___________________________________________
(1)
Strategic Alternative Evaluation costs are primarily related to third party advisory services.
(2)
Qdoba Evaluation consulting costs are primarily related to third party advisory services and retention compensation.
Restructuring Cost and Reserve [Line Items]  
Schedule of Restructuring Reserve
Total accrued severance costs related to our restructuring activities are included in “Accrued liabilities” and changed as follows during fiscal 2019 (in thousands):
Balance as of September 30, 2018
 
$
5,309

Costs incurred
 
7,731

Accruals released
 
(662
)
Cash payments
 
(10,278
)
Balance as of September 29, 2019
 
$
2,100


Contract Termination  
Restructuring Cost and Reserve [Line Items]  
Schedule of Restructuring Reserve
Accrued restaurant closing costs included in “Accrued liabilities” and “Other long-term liabilities” changed as follows during fiscal 2019 (in thousands):
Balance as of September 30, 2018
 
$
3,534

Adjustments (1)
 
590

Interest expense
 
1,292

Cash payments
 
(3,591
)
Balance as of September 29, 2019 (2) (3)
 
$
1,825

___________________________________________
(1)
Adjustments relate primarily to revisions of certain sublease and cost assumptions. Our estimates related to our future lease obligations, primarily the sublease income we anticipate, are subject to a high degree of judgment and may differ from actual sublease income due to changes in economic conditions, desirability of the sites, and other factors.
(2)
The weighted-average remaining lease term related to these commitments is approximately four years.
(3)
This balance excludes $1.5 million of restaurant closing costs that are included in “Accrued liabilities” and “Other long-term liabilities”, which were initially recorded as losses on the sale of company-operated restaurants to franchisees in prior years.