Impairments and Exit Costs (Tables)

12 Months Ended

Dec. 29, 2019

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Provision for impaired assets and restaurant closings

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

	FISCAL YEAR
(dollars in thousands)	2019			2018		2017
Impairment losses
U.S.	$	6,381		$	15,342	$	15,325
International	2,026			11,457		10,124
Corporate	727			—		—
Total impairment losses	$	9,134		$	26,799	$	25,449
Restaurant closure expenses
U.S.	$	(105	)	$	6,536	$	26,749
International	56			3,528		131
Total restaurant closure expenses	$	(49	)	$	10,064	$	26,880
Provision for impaired assets and restaurant closings	$	9,085		$	36,863	$	52,329

Schedule of restructuring reserve by type of cost, facility closure and other costs

The following table summarizes the Company’s rollforward of closed facility lease liabilities and other accrued costs associated with the Closure Initiatives for the period indicated:

	FISCAL YEAR
(dollars in thousands)	2019
Beginning of the year	$	18,094
Additions (1)	1,288
Cash payments	(5,538		)
Accretion	1,253
Adjustments	(555		)
End of the year (2)	$	14,542

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(1) Includes closure initiative related lease liabilities recognized as a result of the adoption of ASU No. 2016-02.

(2)

As of December 29, 2019, the Company had exit-related accruals related to the Closure Initiatives of $3.3 million recorded in Accrued and other current liabilities and $11.2 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet.

Other property [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Impairments and disposals, restructuring and restaurant closure initiatives

Following is a summary of the carrying value and number of surplus properties as of the periods indicated:

(dollars in thousands)	CONSOLIDATED BALANCE SHEET CLASSIFICATION	DECEMBER 29, 2019		DECEMBER 30, 2018
Surplus properties - assets held for sale	Other current assets, net	$	3,317	$	4,594
Surplus properties - assets held and used	Property, fixtures and equipment, net	18,188		15,254
Total surplus properties		$	21,505	$	19,848
Number of surplus properties owned		20		16

Restructuring and Restaurant Closure Initiatives [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Impairments and disposals, restructuring and restaurant closure initiatives

Following is a summary of expenses related to the 2017 Closure Initiative and the Bonefish Restructuring (the “Closure Initiatives”), recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income for the periods indicated:

	FISCAL YEAR
(dollars in thousands)	2019			2018			2017
Impairment, facility closure and other expenses
2017 Closure Initiative (1)	$	1,717		$	1,662		$	20,352
Bonefish Restructuring (2)	(19		)	1,405			3,783
Impairment, facility closure and other expenses - Provision for impaired assets and restaurant closings	$	1,698		$	3,067		$	24,135
Severance and other expenses
2017 Closure Initiative (1)	$	1,108		$	434		$	3,299
Bonefish Restructuring (2)	—			136			67
Severance and other expenses - General and administrative expense	$	1,108		$	570		$	3,366
Reversal of deferred rent liability
2017 Closure Initiative (1)	$	(96	)	$	(469	)	$	(4,755	)
Bonefish Restructuring (2)	—			(147		)	—
Reversal of deferred rent liability - Other restaurant operating expense	$	(96	)	$	(616	)	$	(4,755	)
	$	2,710		$	3,021		$	22,746

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(1) On February 15, 2017 and August 28, 2017, the Company decided to close 43 underperforming restaurants in the U.S. and two Abbraccio restaurants outside of the core markets of São Paulo and Rio de Janeiro in Brazil (the “2017 Closure Initiative”). Most of these restaurants were closed in 2017, with the balance mostly closing as leases and certain operating covenants expired or were amended or waived. In connection with the 2017 Closure Initiative, the Company recognized impairments and closure costs of $1.7 million, $0.6 million and $17.9 million within the U.S. segment for 2019, 2018 and 2017, respectively, and $1.1 million and $2.5 million within the international segment for 2018 and 2017, respectively.

(2) On February 12, 2016, the Company decided to close 14 Bonefish Grill restaurants (the “Bonefish Restructuring”). Expenses related to the Bonefish Restructuring are recognized within the U.S. segment.

Restructuring and related costs

Following is a summary of cumulative expenses related to the Closure Initiatives incurred through December 29, 2019 (dollars in thousands):

DESCRIPTION	LOCATION OF CHARGE IN THE CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME	CLOSURE INITIATIVES AND RESTRUCTURING
		2017			BONEFISH			TOTAL (1)
Impairments, facility closure and other expenses	Provision for impaired assets and restaurant closings	$	70,231		$	34,232		$	104,463
Severance and other expenses	General and administrative	4,841			947			5,788
Reversal of deferred rent liability	Other restaurant operating	(8,591		)	(3,704		)	(12,295		)
		$	66,481		$	31,475		$	97,956

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(1)

The 2017 Closure Initiative expenses included $64.2 million and $2.2 million within the U.S. and international segment, respectively.