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System Optimization Gains, Net (Tables)
 12 Months Ended
Dec. 31, 2023
System optimization gains, net  
Summary of Disposition Activity
Year End
December 31, 2023January 1, 2023
Land$373,634 $371,347 
Buildings and improvements519,244 510,685 
Leasehold improvements432,051 422,330 
Office, restaurant and transportation equipment344,623 314,223 
1,669,552 1,618,585 
Accumulated depreciation and amortization(778,472)(722,807)
$891,080 $895,778 
System Optimization  
System optimization gains, net  
Summary of Disposition Activity
The following is a summary of the disposition activity recorded as a result of our system optimization initiative:
Year Ended
202320222021
Number of restaurants sold to franchisees— 1 47 
Proceeds from sales of restaurants (a)$— $79 $50,518 
Net assets sold (b)— (141)(16,939)
Goodwill related to sales of restaurants— — (4,847)
Net unfavorable leases (c)— (360)(2,939)
Gain on sales-type leases— — 7,156 
Other (d)— 6 (2,148)
— (416)30,801 
Post-closing adjustments on sales of restaurants (e) (f)858 2,877 1,218 
Gain on sales of restaurants, net858 2,461 32,019 
Gain on sales of other assets, net (g)22 4,318 1,526 
System optimization gains, net$880 $6,779 $33,545 
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(a)In addition to the proceeds noted herein, the Company received cash proceeds of $378 and $39 during 2022 and 2021, respectively, related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants.

(b)Net assets sold consisted primarily of equipment.

(c)During 2021, the Company recorded favorable lease assets of $3,799 and unfavorable lease liabilities of $6,738 as a result of leasing and/or subleasing land, buildings and/or leasehold improvements to franchisees, in connection with the sale of the New York Company-operated restaurants (including Manhattan).

(d)2021 includes a deferred gain of $3,500 as a result of certain contingencies related to the extension of lease terms.

(e)2021 includes a gain on sales-type leases of $1,625 and the write-off of certain lease assets of $927 as a result of an amendment to lease terms in connection with a Manhattan Company-operated restaurant previously sold to a franchisee.
(f)2023, 2022 and 2021 include the recognition of deferred gains of $858, $3,522 and $515, respectively, as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees.

(g)During 2023, 2022 and 2021, the Company received cash proceeds of $2,115, $7,780 and $4,561, respectively, primarily from the sale of surplus and other properties.