System Optimization Gains, Net (Tables)

3 Months Ended

Apr. 04, 2021

System optimization gains, net

Summary of Disposition Activity

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

	Three Months Ended
	April 4, 2021		March 29, 2020
Post-closing adjustments on sales of restaurants (a)	$	515	$	345
Gain on sales of other assets, net (b)	1		(22)
System optimization gains, net	$	516	$	323

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(a)Represents the recognition of deferred gains as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees.

(b)During the three months ended April 4, 2021 and March 29, 2020, the Company received net cash proceeds of $3 and $195, respectively, primarily from the sale of surplus and other properties.

Assets Held for Sale

	April 4, 2021		January 3, 2021
Number of restaurants classified as held for sale	47		43
Net restaurant assets held for sale (a)	$	21,747	$	20,587
Other assets held for sale (b)	$	1,732	$	1,732

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(a)Net restaurant assets held for sale represent the New York Company-operated restaurants we expect to sell in the second quarter of 2021 (including Manhattan as of April 4, 2021) and consist primarily of cash, inventory, property and an estimate of allocable goodwill.

(b)Other assets held for sale primarily consist of surplus properties.