Reorganization and Realignment Costs (Tables)

9 Months Ended

Oct. 01, 2017

Restructuring Cost and Reserve

Restructuring and Related Costs

The following is a summary of the initiatives included in “Reorganization and realignment costs:”

	Three Months Ended				Nine Months Ended
	October 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
System optimization initiative	$	232	$	2,091	$	867	$	6,895
G&A realignment - November 2014 plan	—		38		—		971
G&A realignment - May 2017 plan	2,656		—		19,901		—
Reorganization and realignment costs	$	2,888	$	2,129	$	20,768	$	7,866

System Optimization

Restructuring Cost and Reserve

Restructuring and Related Costs

The following is a summary of the costs recorded as a result of our system optimization initiative:

	Three Months Ended				Nine Months Ended				Total Incurred Since Inception
	October 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
Severance and related employee costs	$	—	$	28	$	3	$	46	$	18,237
Professional fees	232		1,991		794		5,137		17,404
Other (a)	—		72		70		112		5,813
	232		2,091		867		5,295		41,454
Accelerated depreciation and amortization (b)	—		—		—		1,600		25,398
Share-based compensation (c)	—		—		—		—		5,013
Total system optimization initiative	$	232	$	2,091	$	867	$	6,895	$	71,865

_______________

(a) The nine months ended October 2, 2016 includes a reversal of an accrual of $50 as a result of a change in estimate.

(b) Primarily includes accelerated amortization of previously acquired franchise rights related to Company-operated restaurants in territories that have been sold in connection with our system optimization initiative.

(c) Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative.

Schedule of Restructuring Reserve by Type of Cost

The tables below present a rollforward of our accrual for our system optimization initiative, which is included in “Accrued expenses and other current liabilities.”

	Balance January 1, 2017		Charges		Payments			Balance October 1, 2017
Severance and related employee costs	$	—	$	3	$	(3	)	$	—
Professional fees	101		794		(885		)	10
Other	—		70		(70		)	—
	$	101	$	867	$	(958	)	$	10

	Balance January 3, 2016		Charges		Payments			Balance October 2, 2016
Severance and related employee costs	$	77	$	46	$	(123	)	$	—
Professional fees	708		5,137		(5,740		)	105
Other	90		112		(202		)	—
	$	875	$	5,295	$	(6,065	)	$	105

G&A Realignment – May 2017 Plan

Restructuring Cost and Reserve

Restructuring and Related Costs

The following is a summary of the activity recorded as a result of the May 2017 plan:

	Three Months Ended		Nine Months Ended
	October 1, 2017		October 1, 2017
Severance and related employee costs	$	1,210	$	14,436
Recruitment and relocation costs	145		145
Third-party and other costs	496		821
	1,851		15,402
Share-based compensation (a)	805		4,499
Total G&A realignment - May 2017 plan	$	2,656	$	19,901

_______________

(a) Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under our May 2017 plan. The three and nine months ended October 1, 2017 includes incremental share-based compensation of $652 related to the modification of stock options granted during August 2017.

Schedule of Restructuring Reserve by Type of Cost

As of October 1, 2017, the accruals for our May 2017 plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $7,766 and $5,429, respectively. The table below presents a rollforward of our accruals for the May 2017 plan.

	Balance January 1, 2017		Charges		Payments			Balance October 1, 2017
Severance and related employee costs	$	—	$	14,436	$	(1,350	)	$	13,086
Recruitment and relocation costs	—		145		(36		)	109
Third-party and other costs	—		821		(821		)	—
	$	—	$	15,402	$	(2,207	)	$	13,195