Restaurant Closure and Other Related Charges

At January 3, 2017 (Successor) and December 29, 2015 (Successor), the restaurant closure liability is $3.1 million and $4.8 million, respectively. The details of the restaurant closure activities are discussed below.

Restaurant Closures and Lease Reserves

The following table presents other restaurant closure liability activity for each period related to prior restaurant closures and sublease income shortfalls (dollars in thousands):



	Successor						Predecessor
	53 Weeks Ended January 3, 2017			26 Weeks Ended December 29, 2015			26 Weeks Ended June 30, 2015			52 Weeks Ended December 30, 2014
Closure liability at beginning of period	$	1,023		$	1,037		$	1,143		$	1,396
Adjustments to prior period activity	439			129			54			(5		)
Charges for accretion in current period	80			41			40			87
Cash payments	(177		)	(184		)	(200		)	(335		)
Closure liability at end of period	$	1,365		$	1,023		$	1,037		$	1,143

The current portion of the restaurant closure liability is $0.3 million at January 3, 2017 (Successor) and $0.1 million at December 29, 2015 (Successor) and is included in other accrued liabilities in the consolidated balance sheets. The non-current portion of the restaurant closure liability is $1.1 million and $0.9 million at January 3, 2017 (Successor) and December 29, 2015 (Successor), respectively, and is included in other non-current liabilities in the consolidated balance sheets.

Restaurant Closure and Other Related Charges for 12 Underperforming Restaurants

During the fourth fiscal quarter of 2015, the Company closed 12 company-operated restaurants as previously announced. No discontinued operations treatment was required for any of these closures. During the twenty-six weeks ended December 29, 2015 (Successor), the Company recorded restaurant closure and other related charges of $4.5 million, offset by $2.7 million related to the re-characterization and reclassification of lease related liabilities, for a net charge of $1.8 million, which is included in restaurant closure charges, net on the consolidated statements of comprehensive income (loss). The charges include (1) the present value of the future lease obligations, net of estimated sublease income, (2) a lease termination payment, (3) brokerage commission, (4) post closure rent, utilities, property tax and common area maintenance charges, (5) unused food and paper that could not be redeployed, (6) Worker Adjustment and Retraining Notification ("WARN") act and stay bonus payments to terminated employees, and (7) other direct costs associated with the closures. During the fifty-three weeks ended January 3, 2017 (Successor), the Company recorded accretion expense related to the closures, $0.2 million related to the write-off of fixed assets associated with the closures, direct expense of $0.2 million related to the closures and net adjustments to the lease termination liability for four closed restaurants due to changes in estimates based on executed subleases.

A summary of the restaurant closure liability activity for these 12 closed restaurants consisted of the following (in thousands):



	One-time employee termination benefits			Contract termination costs			Other associated costs			Total
Balance at June 30, 2015 (Predecessor)	$	—		$	—		$	—		$	—
Charges for accretion and other in current period	168			$	1,289		$	388		$	1,845
Cash payments	(168		)	$	(324	)	$	(225	)	$	(717	)
Reclassification of lease related liabilities	—			$	2,672		$	—		$	2,672
Balance at December 29, 2015 (Successor)	—			3,637			163			3,800
Charges for accretion in current period	—			133			—			133
Cash payments	—			(1,444		)	(163		)	(1,607		)
Adjustment to estimates based on current activity	—			(553		)	—			(553		)
Balance at January 3, 2017 (Successor)	$	—		$	1,773		$	—		$	1,773

The current portion of the restaurant closure liability is $0.6 million and $1.5 million at January 3, 2017 (Successor) and December 29, 2015 (Successor), respectively, and is included in other accrued liabilities in the consolidated balance sheets. The non-current portion of the restaurant closure liability is $1.2 million and $2.3 million at January 3, 2017 (Successor) and December 29, 2015 (Successor), respectively, and is included in other non-current liabilities in the consolidated balance sheets.