Facilities Relocation and Other Transition Costs

As announced in December 2011, we commenced the relocation of the Company’s Atlanta restaurant support center to Ohio. The Company expects to expense costs aggregating approximately $30,800 in 2012 and $4,500 in 2013, related to its relocation and other transition activities which were substantially completed during the third quarter of 2012. The costs expected to be expensed in 2013 primarily relate to severance and other costs.

The components of “Facilities relocation and other transition costs” for the three and nine months ended September 30, 2012, as well as the total expected to be incurred and total incurred since inception, are presented in the table below:



	Three Months Ended September 30, 2012		Nine Months Ended September 30, 2012		Total Incurred Since Inception		Total Expected to be Incurred
Severance, retention and other payroll costs	$	2,236	$	9,552	$	14,897	$	18,376
Relocation costs	1,776		3,857		3,857		7,043
Atlanta facility closure costs	4,224		4,401		4,401		4,501
Consulting and professional fees	1,676		4,494		4,494		6,074
Other	752		2,017		2,002		2,242
	10,664		24,321		29,651		38,236
Accelerated depreciation expense	621		1,921		2,118		2,593
Total	$	11,285	$	26,242	$	31,769	$	40,829

The increase in the total expected to be incurred noted above, as compared to our 2011 year end estimate, relates primarily to an increase in our estimates for severance, retention and other payroll costs, an increase in accelerated depreciation on assets at the Atlanta restaurant support center and additional professional fees. These increases were partially offset by a decrease in the Atlanta facility closure costs related to the Atlanta restaurant support center operating lease.

An analysis of related activity in the facilities relocation and other transition costs accrual, which is included in “Accrued expenses and other current liabilities,” is as follows:



	Balance							Balance
	January 1, 2012		Charges		Payments and Adjustments			September 30, 2012
Severance, retention and other payroll costs	$	5,345	$	9,552	$	(9,020	)	$	5,877
Relocation costs	—		3,857		(2,780		)	1,077
Atlanta facility closure costs (a)	—		4,401		661			5,062
Consulting and professional fees	—		4,494		(3,462		)	1,032
Other	—		2,017		(1,823		)	194
	$	5,345	$	24,321	$	(16,424	)	$	13,242

(a) Includes an $838 adjustment for the reclassification of the Atlanta facility closure costs from other accounts.