Dispositions (Tables)

12 Months Ended

Jan. 02, 2022

Discontinued Operations and Disposal Groups [Abstract]

Dispositions

A summary of assets and liabilities of the discontinued operations is as follows:

	January 3, 2021
Carrying amount of major classes of assets included as part of discontinued operations:
Accounts receivable	$	3,951
Inventories	2,104
Prepaid expenses and other current assets	2,423
Total current assets of the disposal group classified as held for sale	8,478
Property and equipment, net	63,214
Operating lease right-of-use assets	96,639
Other assets	170
Total non-current assets of the disposal group classified as held for sale	160,023
Total assets of the disposal group classified as held for sale	$	168,501
Carrying amount of major classes of liabilities included as part of discontinued operations:
Current portion of long-term debt	$	199
Accounts payable	5,014
Accrued liabilities	9,363
Other current liabilities	12,649
Total current liabilities of the disposal group classified as held for sale	27,225
Long-term debt, net of current portion	740
Operating lease liabilities	93,970
Deferred tax liabilities	1,840
Other non-current liabilities	1,773
Total non-current liabilities of the disposal group classified as held for sale	98,323
Total liabilities of the disposal group classified as held for sale	$	125,548

A summary of the results of the discontinued operations is as follows:

	Year Ended
	January 2, 2022		January 3, 2021		December 29, 2019
Major classes of line items constituting pretax loss of discontinued operations:
Revenues:
Total revenues	$	152,339	$	239,445	$	297,470
Costs and expenses:
Cost of sales	43,480		70,433		92,334
Restaurant wages and related expenses (including stock-based compensation expense of $172, $127, and $125, respectively)	48,399		74,817		94,269
Restaurant rent expense	12,995		22,588		25,755
Other restaurant operating expenses	24,814		34,357		41,623
General and administrative (including stock-based compensation expense of $1,688, $603, and $329, respectively)	11,442		13,229		14,290
Depreciation and amortization	7,799		16,197		17,009
Pre-opening costs	—		69		592
Goodwill impairment	—		—		67,909
Other income and expense items that are not major	3,935		10,133		24,994
Total operating expenses	152,864		241,823		378,775
Income (loss) from operations	(525)		(2,378)		(81,305)
Interest expense	4,678		4,464		3,547
Gain on sale of Taco Cabana	(24,979)		—		—
Loss on extinguishment of debt	5,307		1,241		—
Income (loss) from discontinued operations before income taxes	14,469		(8,083)		(84,852)
Provision for (benefit from) income taxes	(3,986)		(1,258)		(2,461)
Income (loss) from discontinued operations, net of tax	$	18,455	$	(6,825)	$	(82,391)

A summary of significant investing activity and non-cash operating, investing, and financing activity of the discontinued operations from the consolidated statements of cash flows is as follows:

	Year Ended
	January 2, 2022		January 3, 2021		December 29, 2019
Non-cash operating activities:
Loss (gain) on disposals of property and equipment, net	$	(217)	$	(551)	$	21
Stock-based compensation	1,860		730		454
Impairment and other lease charges	132		1,116		13,086
Goodwill impairment	—		—		67,909
Loss on extinguishment of debt	5,307		1,241		—
Gain on sale of Taco Cabana	(24,979)		—		—
Depreciation and amortization	7,799		16,197		17,009
Investing activities:
Capital expenditures:
New restaurant development	$	—	$	(854)	$	(4,065)
Restaurant remodeling	(1,283)		(745)		(919)
Other restaurant capital expenditures	(5,050)		(4,728)		(9,266)
Corporate and restaurant information systems	(169)		(1,559)		(3,875)
Total capital expenditures	(6,502)		(7,886)		(18,125)
Proceeds from sale of Taco Cabana	74,910		—		—
Proceeds from disposals of properties	1,307		4,305		—
Proceeds from sale-leaseback transactions	3,083		3,966		—
Net cash provided by (used in) investing activities – discontinued operations	$	72,798	$	385	$	(18,125)
Supplemental cash flow disclosures:
Interest paid on long-term debt (including capitalized interest of $0, $57, and $247, respectively)	$	4,338	$	4,001	$	4,198
Supplemental cash flow disclosures of non-cash investing and financing activities:
Accruals for capital expenditures	$	—	$	1,027	$	1,510
Accruals for financing costs associated with debt amendment	—		277		—
Right-of-use assets obtained in exchange for lease liabilities:
Operating lease ROU assets	5,156		18,466		6,456
Finance lease ROU assets	—		33		304
Right-of-use assets and lease liabilities reduced for terminated leases:
Operating lease ROU assets	2,695		953		794
Operating lease liabilities	3,443		1,217		1,054
Operating lease right-of-use assets obtained and lease liabilities incurred as a result of adoption of ASC 842:
Operating lease ROU assets	—		—		112,905
Operating lease liabilities	—		—		122,441