Impairments and Exit Costs

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



	THIRTEEN WEEKS ENDED				TWENTY-SIX WEEKS ENDED
(dollars in thousands)	JULY 1, 2018		JUNE 25, 2017		JULY 1, 2018		JUNE 25, 2017
Impairment losses
U.S.	$	284	$	12	$	395	$	932
International	4,437		—		6,597		—
Total impairment losses	$	4,721	$	12	$	6,992	$	932
Restaurant closure expenses
U.S.	$	674	$	586	$	1,022	$	18,742
International	3,494		—		3,614		—
Total restaurant closure expenses	$	4,168	$	586	$	4,636	$	18,742
Provision for impaired assets and restaurant closings	$	8,889	$	598	$	11,628	$	19,674

Closure Initiatives - Since February 2017, the Company decided to close certain underperforming restaurants in the U.S. and certain Abbraccio restaurants outside of the core markets of São Paulo and Rio de Janeiro in Brazil and in 2016 the Company decided to close certain Bonefish Grill restaurants (collectively, the “Closure Initiatives”). Following is a summary of expenses related to the Closure Initiatives recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated:



	INCOME STATEMENT LOCATION	THIRTEEN WEEKS ENDED						TWENTY-SIX WEEKS ENDED
(dollars in thousands)	INCOME STATEMENT LOCATION	JULY 1, 2018			JUNE 25, 2017			JULY 1, 2018			JUNE 25, 2017
Impairment, facility closure and other expenses (1)	Provision for impaired assets and restaurant closings	$	1,607		$	(244	)	$	1,632		$	18,012
Severance and other expenses	General and administrative	110			766			232			2,948
Reversal of deferred rent liability	Other restaurant operating	(147		)	180			(147		)	(4,761		)
Total		$	1,570		$	702		$	1,717		$	16,199

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(1)	The Company recognized asset impairment and closure charges of $1.0 million within the International segment related to the Closure Initiatives during the thirteen and twenty-six weeks ended July 1, 2018. All other asset impairment and closure charges for the periods presented were recognized within the U.S. segment.

International Restructuring - During the thirteen and twenty-six weeks ended July 1, 2018, the Company recognized asset impairment and closure charges of $6.9 million and $9.2 million, respectively, related to the restructuring of certain international markets, including China.

The remaining restaurant impairment and closing charges resulted primarily from the carrying value of a restaurant’s assets exceeding its estimated fair market value, primarily due to locations identified for remodel, relocation or closure.

Projected Future Expenses and Cash Expenditures - The Company expects to incur additional charges for the Closure Initiatives through Q3 2019, including costs associated with lease obligations, employee terminations and other closure-related obligations. Following is a summary of remaining estimated pre-tax expense and future cash expenditures, by type, as of July 1, 2018:



Estimated future expense (dollars in millions)	CLOSURE INITIATIVES
Lease related liabilities, net of subleases	$	2.9	to	$	3.4
Employee severance and other obligations	0.3		to	0.6
Total estimated future expense	$	3.2	to	$	4.0

Total estimated future cash expenditures (dollars in millions)	$	22.3	to	$	27.4

Total future undiscounted cash expenditures for the Closure Initiatives, primarily related to lease liabilities, are expected to occur over the remaining lease terms with the final term ending in January 2029.

Accrued Facility Closure and Other Costs Rollforward - The following table summarizes the Company’s accrual activity related to facility closure and other costs, primarily associated with the Closure Initiatives, during the twenty-six weeks ended July 1, 2018:



	TWENTY-SIX WEEKS ENDED
(dollars in thousands)	JULY 1, 2018
Balance, beginning of the period	$	22,709
Charges	8,071
Cash payments	(8,186		)
Adjustments	(3,435		)
Balance, end of the period (1)	$	19,159

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(1)	As of July 1, 2018, the Company had exit-related accruals of $6.0 million recorded in Accrued and other current liabilities and $13.2 million recorded in Other long-term liabilities, net in the Consolidated Balance Sheet.