Restaurant Closure Charges, Net

3 Months Ended

Mar. 28, 2017

Restructuring and Related Activities [Abstract]

At March 28, 2017 and January 3, 2017, the restaurant closure liability is $2.8 million and $3.1 million, respectively. The details of the restaurant closure activities are discussed below.

Restaurant Closures and Lease Reserves

The following table represents other restaurant closure liability activity related to restaurant closures prior to 2015 and sublease income shortfalls (in thousands):



	Total
Balance at January 3, 2017	$	1,365
Charges for accretion in current period	26
Cash payments	(60		)
Balance at March 28, 2017	$	1,331

The current portion of the restaurant closure liability is $0.3 million at both March 28, 2017 and January 3, 2017 and is included in other accrued liabilities in the consolidated balance sheets. The non-current portion of the restaurant closure liability is $1.0 million and $1.1 million at March 28, 2017 and January 3, 2017, 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. During the twelve weeks ended March 28, 2017, the Company recorded accretion expense related to the closures, offset by $34,000 of sublease income from leases which are treated as deemed landlord financing. A summary of the restaurant closure liability activity for these 12 closed restaurants consisted of the following (in thousands):



	Contract termination costs			Other associated costs		Total
Balance at January 3, 2017	$	1,773		$	—	$	1,773
Charges for accretion in current period	17			—		17
Cash payments	(253		)	—		(253		)
Balance at March 28, 2017	$	1,537		$	—	$	1,537

The current portion of the restaurant closure liability is $0.3 million and $0.6 million at March 28, 2017 and January 3, 2017, 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 at both March 28, 2017 and January 3, 2017 and is included in other non-current liabilities in the consolidated balance sheets.