Impairment of Long-Lived Assets

9 Months Ended

Oct. 02, 2016

During the three and nine months ended October 2, 2016 and September 27, 2015, the Company recorded impairment charges on long-lived assets as a result of (1) the Company’s decision to lease and/or sublease properties to franchisees in connection with the sale or anticipated sale of company-owned restaurants, (2) closing company-owned restaurants and classifying such properties as held for sale and (3) the deterioration in operating performance of certain company-owned restaurants and charges for capital improvements in restaurants impaired in prior years which did not subsequently recover. The Company may recognize additional impairment charges resulting from leasing or subleasing additional properties to franchisees in connection with sales of company-owned restaurants to franchisees.

The following is a summary of impairment losses recorded, which represent the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets.”



	Three Months Ended				Nine Months Ended
	October 2, 2016		September 27, 2015		October 2, 2016		September 27, 2015
Restaurants leased or subleased to franchisees	$	163	$	1,235	$	12,654	$	9,491
Surplus properties	119		59		223		1,211
Company-owned restaurants	79		219		114		2,766
	$	361	$	1,513	$	12,991	$	13,468