Property and Equipment

9 Months Ended

Sep. 23, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

2. PROPERTY AND EQUIPMENT

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

	September 23, 2020		December 25, 2019
Land	$	12,323	$	12,323
Buildings and improvements		147,413		144,794
Other property and equipment		76,142		75,234
Construction in progress		2,120		4,213
		237,998		236,564
Less: accumulated depreciation and amortization		(157,453)		(144,786)
	$	80,545	$	91,778

Depreciation expense was $4.1 million and $4.3 million for the thirteen weeks ended September 23, 2020 and September 25, 2019, respectively, and $12.6 million and $13.6 million for the thirty-nine weeks September 23, 2020 and September 25, 2019, respectively.

Based on the Company’s review of its long-lived assets for impairment, the Company recorded non-cash impairment charges of $1.5 million and $2.9 million for the thirteen and thirty-nine weeks ended September 23, 2020, respectively, primarily related to the carrying value of the assets of four restaurants in California. During the thirteen and thirty-nine weeks ended September 25, 2019, the Company recorded non-cash impairment charges of $0.1 million and $0.3 million, respectively, primarily related to the carrying value of one restaurant in California. Depending on the severity and longevity of the COVID-19 pandemic, the Company’s financial performance could be further impacted and it is possible that material impairments could be identified in future periods. See “Impairment of Long-Lived Assets and ROU Assets” in Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” for additional information.