Operating (Gains), Losses and Other Charges, Net

12 Months Ended

Dec. 25, 2019

Other Income and Expenses [Abstract]

Operating (Gains), Losses and Other Charges, Net

Operating (gains), losses and other charges, net were comprised of the following:



	Fiscal Year Ended
	December 25, 2019			December 26, 2018			December 27, 2017
	(In thousands)
Gains on sales of assets and other, net	$	(93,608	)	$	(513	)	$	(1,729	)
Software implementation costs	—			—			5,247
Restructuring charges and exit costs	2,428			1,575			485
Impairment charges	—			1,558			326
Operating (gains), losses and other charges, net	$	(91,180	)	$	2,620		$	4,329

Gains on sales of assets and other, net of $93.6 million for the year ended December 25, 2019 were primarily the result of sales of company restaurants and real estate as part of our refranchising and development strategy. See Note 4 for details on refranchisings. Gains on sales of assets and other, net of $0.5 million for the year ended December 26, 2018 primarily related to gains of $1.2 million of insurance settlements on fire-damaged and hurricane-damaged restaurants, partially offset by $0.7 million of losses on sales of company owned units to franchisees. Gains on the sales of assets and other, net of $1.7 million for the year ended December 27, 2017 primarily related to real estate sold to franchisees. Software implementation costs of $5.2 million for the year ended December 27, 2017 were the result of our investment in a new cloud-based Enterprise Resource Planning system.

Restructuring charges and exit costs were comprised of the following:



	Fiscal Year Ended
	December 25, 2019		December 26, 2018		December 27, 2017
	(In thousands)
Exit costs	$	272	$	518	$	385
Severance and other restructuring charges	2,156		1,057		100
Total restructuring charges and exit costs	$	2,428	$	1,575	$	485

Exit costs are primarily comprised of costs related to closed restaurants. Exit cost liabilities were $0.2 million and $1.2 million as of December 25, 2019 and December 26, 2018, respectively. As a result of the adoption of Topic 842, exit cost liabilities related to lease costs are now included as a component of operating lease liabilities in our Consolidated Balance Sheets. See Note 3.

The components of the change in accrued exit cost liabilities for the fiscal year-ended December 26, 2018 were as follows:



Balance, beginning of year	$	1,180
Exit costs ⁽¹⁾	518
Payments, net of sublease receipts	(615		)
Interest accretion	72
Balance, end of year	1,155
Less current portion included in other current liabilities	546
Long-term portion included in other noncurrent liabilities	$	609


(1)	Included as a component of operating (gains), losses and other charges, net.

The increase in severance and other restructuring charges for the years ended December 25, 2019 and December 26, 2018 was primarily the result of positions eliminated as part of our refranchising and development strategy announced during the fourth quarter of 2018. As of December 25, 2019 and December 26, 2018, we had accrued severance and other restructuring charges of $0.9 million and $0.6 million, respectively. The balance as of December 25, 2019 is expected to be paid during the next 12 months.

Impairment charges of $1.6 million for the year ended December 26, 2018 primarily related to the impairment of an underperforming unit. Impairment charges of $0.3 million for the year ended December 27, 2017 related to the relocation of two high-performing company restaurants due to the loss of property control.