Property and Equipment

6 Months Ended

Jun. 28, 2017

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

The costs and related accumulated depreciation and amortization of major classes of property and equipment are as follows (in thousands):



	June 28, 2017			December 28, 2016
Land	$	12,323		$	12,323
Buildings and improvements	141,457			125,159
Other property and equipment	70,727			65,831
Construction in progress	5,649			11,539
	230,156			214,852
Less: accumulated depreciation and amortization	(103,525		)	(96,382		)
	$	126,631		$	118,470

Depreciation expense was $4.6 million and $4.0 million for the thirteen weeks ended June 28, 2017 and June 29, 2016, respectively, and $8.9 million and $7.7 million for the twenty-six weeks ended June 28, 2017 and June 29, 2016, respectively. The gross value of assets under capital leases for buildings and improvements was $1.6 million at June 28, 2017 and December 28, 2016. Accumulated depreciation for assets under capital leases was $1.5 million as of June 28, 2017 and December 28, 2016. For the thirteen weeks ended June 28, 2017, capital expenditures totaled $7.4 million, including $1.4 million for restaurant remodeling and $4.4 million for new restaurant expenditures. For the twenty-six weeks ended June 28, 2017, capital expenditures totaled $19.0 million, including $2.8 million for restaurant remodeling and $13.9 million for new restaurant expenditures. For the thirteen weeks ended June 29, 2016, capital expenditures totaled $8.4 million, including $0.1 million for restaurant remodeling and $6.3 million for new restaurant expenditures. For the twenty-six weeks ended June 29, 2016, capital expenditures totaled $14.3 million, including $1.6 million for restaurant remodeling and $9.2 million for new restaurant expenditures. Capital expenditures for these periods exclude unpaid purchases of property and equipment.

Based on the Company’s review of its long-lived assets for impairment, the Company recorded non-cash impairment charges of $0.4 million for both the thirteen and twenty-six weeks ended June 28, 2017. For the thirteen and twenty-six weeks ended June 29, 2016, the Company recorded an immaterial non-cash impairment charge related to capital expenditures for stores fully impaired in previous years.