XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.20.4

Other Charges | 12 Months Ended
--- | ---
Dec. 27, 2020
Other Income and Expenses [Abstract] |
Other Charges | Other Charges Other charges consist of the following (in thousands):
|  | Year Ended
|  | December 27, 2020 |  | December 29, 2019 |  | December 30, 2018
Goodwill impairment |  | $ | 95,414 |  |  | $ | — |  |  | $ | — |
Asset impairment |  | 26,940 |  |  | 15,094 |  |  | 28,127 |
Restaurant closure and refranchising costs (gains) |  | 19,846 |  |  | (1,187) |  |  | — |
Litigation contingencies |  | 6,440 |  |  | — |  |  | 4,795 |
Board and stockholder matters costs |  | 2,504 |  |  | 3,261 |  |  | — |
COVID-19 related costs |  | 1,858 |  |  | — |  |  | — |
Severance and executive transition |  | 881 |  |  | 3,450 |  |  | — |
Executive retention |  | — |  |  | 980 |  |  | — |
Reorganization costs |  | — |  |  | — |  |  | 3,273 |
Smallwares disposal |  | — |  |  | — |  |  | 2,936 |
Other charges |  | $ | 153,883 |  |  | $ | 21,598 |  |  | $ | 39,131 |
Goodwill Impairment The Company recognized full goodwill impairment during the first quarter of 2020 totaling $95.4 million resulting from the negative effects of COVID-19 on our business. See Note 1, Description of Business and Summary of Significant Accounting Policies, for further discussion. Asset Impairment During 2020, the Company determined long-lived assets at 40 Company-owned restaurants were impaired and recognized non-cash impairment charges of $21.7 million. See Note 2, COVID-19 Pandemic, for further discussion. Additionally, the Company impaired information technology assets totaling $5.2 million due to the COVID-19 pandemic redirecting our implementation of certain digital platforms in order to accelerate our speed to market. During 2019 and 2018, the Company impaired long-lived assets of 29 and 41 Company-owned restaurants and recognized non-cash impairment charges of $15.1 million and $28.1 million. Restaurant Closure and Refranchising Costs During 2020, the Company temporarily closed 35 restaurants due to COVID-19. Of the temporarily closed restaurants, we permanently closed six restaurants and reopened 17 restaurants as of the end of 2020. During periods of temporary closure, restaurant operating and occupancy costs were included in Restaurant closures and refranchising costs. In total, the Company permanently closed 11 restaurants, of which six were initially temporarily closed due to COVID-19. Due to permanent closure of certain restaurants during 2020, we impaired long-lived assets at six of the 11 permanently closed restaurants totaling $5.7 million. Additionally, during 2020, the Company substantially completed the exit of Company-owned restaurants in Canada and accordingly recognized the accumulated currency translation adjustment as a loss in Other charges on the consolidated statements of operations and comprehensive loss totaling $5.5 million. During 2019, the Company closed 18 restaurants resulting in a gain of $1.2 million. The gain is driven by early lease terminations on previously closed restaurants. During 2018, the Company closed four restaurants resulting in immaterial restaurant closure costs. Litigation Contingencies In 2020, the Company recorded $6.4 million of legal settlement costs primarily related to class action employment cases. See Note 13, Commitments and Contingencies, for further discussion. In 2018, the Company recorded $4.8 million of litigation contingencies for class action employment cases that were settled in January 2021. Board and Stockholder Matters Costs During 2020, the Company recorded $2.5 million of board and stockholder matters costs primarily related to the shareholder rights plan and the recruitment and appointment of a new board member in the first quarter of 2020. During 2019, the Company recorded $3.3 million of board and stockholder matters costs primarily related to the recruitment and appointment of the three new board members and the adoption of a shareholder rights plan. COVID-19 Related Costs In 2020, the Company recorded $1.9 million of costs related to purchasing personal protective equipment for restaurant Team Members and Guests and providing emergency sick pay to restaurant Team Members during the pandemic. Severance and Executive Transition During 2020, the Company recorded $0.9 million of severance and executive transition costs primarily related to severance costs associated with the reduction in force of restaurant support center Team Members in the first quarter of 2020. During 2019, the Company recorded $3.5 million of severance and executive transition costs primarily related to the transition and realignment of our executive team, including the appointment of a new CEO in the third quarter of 2019. Executive Retention During 2019, the Company recorded $1.0 million of executive retention costs related to payments made to retain executive leadership believed to be critical to the ongoing operation of the Company during the uncertainty created following the retirement of our CEO in early April 2019 and throughout the subsequent transition period. Reorganization Costs During 2018, the Company recorded $3.3 million of severance costs related to the reorganization in first quarter 2018. Smallwares Disposal During 2018, the Company recorded $2.9 million of costs related to the disposal of smallwares.

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

X
- Definition The entire disclosure for other income or other expense items (both operating and nonoperating). Sources of nonoperating income or nonoperating expense that may be disclosed, include amounts earned from dividends, interest on securities, profits (losses) on securities, net and miscellaneous other income or income deductions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 720 -URI http://asc.fasb.org/topic&trid=2122503 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 610 -URI http://asc.fasb.org/topic&trid=49130413 + Details
Name: | us-gaap_OtherIncomeAndOtherExpenseDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration