XML 25 R10.htm IDEA: XBRL DOCUMENT v3.21.2
OTHER GAINS AND CHARGES
12 Months Ended
Jun. 30, 2021
Other Gains and Charges [Abstract]  
OTHER GAINS AND CHARGES
Other (gains) and charges in the Consolidated Statements of Comprehensive Income consist of the following:
Fiscal Years Ended
June 30, 2021June 24, 2020June 26, 2019
COVID-19 related charges$3.3 $12.2 $— 
Restaurant impairment charges3.0 19.1 10.8 
Loss from natural disasters, net of (insurance recoveries)2.9 (0.7)(0.7)
Restaurant closure charges2.4 3.8 4.3 
Remodel-related costs2.3 3.2 7.7 
Loss on lease contingencies2.2 — — 
Severance and other benefit charges0.5 3.2 0.9 
Foreign currency transaction (gain) loss(0.6)1.4 (0.7)
Sale leaseback (gain), net of transaction charges— — (27.3)
Other3.0 5.2 0.5 
$19.0 $47.4 $(4.5)
Fiscal 2021
COVID-19 related charges consists of following costs related to both Chili’s and Maggiano’s:
employee assistance and related payroll taxes for certain team members,
conversion of certain parking lots into dining areas, and
initial purchases of restaurant and personal protective supplies such as face masks and hand sanitizers required to maintain open dining rooms.
Restaurant impairment charges primarily consisted of the long-lived assets of 11 underperforming Chili’s and three underperforming Maggiano’s restaurants.
Loss from natural disasters, net of (insurance recoveries) primarily consists of costs incurred related to Winter Storm Uri in February 2021.
Restaurant closure charges primarily consisted of Chili’s lease termination charges and certain Chili’s restaurant closure costs.
Remodel-related costs related to existing fixed asset write-offs associated with the Chili’s remodel project.
Loss on lease contingencies were recorded for estimated lease defaults on certain secondarily liable lease guarantees and subleases. Refer to Note 16 - Commitments and Contingencies for additional information about our secondarily liable lease guarantees.
Severance and other benefit charges primarily related to the elimination of certain Maggiano’s banquet manager positions.
Foreign currency transaction (gain) loss resulted from the change in the value of our Mexican peso denominated note receivable received as consideration from the sale of our equity interest in our Mexico joint venture in fiscal 2018.
Fiscal 2020
COVID-19 related charges were recorded related to the initial impact and our efforts to address the pandemic beginning in the third quarter of fiscal 2020. The charges consisted of following costs related to both Chili’s and Maggiano’s:
employee assistance payments and related payroll taxes expenses of $17.3 million for team members that experienced reduced shifts during the pandemic, who would have otherwise not received such payment under our normal compensation practices,
other COVID-19 related expenses of $1.5 million for restaurant supplies such as face masks and hand sanitizer required to reopen dining rooms, as well as costs related to canceled projects due to the pandemic, and $1.1 million of expenses related to spoiled inventory due to the unexpected decline in sales and dining room closures,
employee retention credit of $7.9 million for certain payroll taxes was received as part of the CARES Act relief package.
Restaurant impairment charges primarily consisted of the long-lived assets of 25 underperforming Chili’s and three underperforming Maggiano’s restaurants.
Loss from natural disasters, net of (insurance recoveries) primarily consisted of proceeds related to a previously filed fire claim, partially offset by costs incurred for damages from Tropical Storm Imelda.
Restaurant closure charges primarily consisted of Chili’s lease termination charges and certain Chili’s restaurant closure costs.
Remodel-related costs related to existing fixed asset write-offs associated with the Chili’s remodel project.
Severance and other benefit charges primarily consisted of $2.7 million of expenses incurred for a corporate reorganization related to the elimination of 44 corporate positions to align and support our current operating model in the fourth quarter of fiscal 2020.
Foreign currency transaction (gain) loss resulted from the change in the value of our Mexican peso denominated note receivable received as consideration from the sale of our equity interest in our Mexico joint venture in the second quarter of fiscal 2018.
Fiscal 2019
Restaurant impairment charges primarily consisted of the long-lived assets of 11 underperforming Chili’s restaurants.
Loss from natural disasters, net of (insurance recoveries) primarily consisted of insurance proceeds received related to a previously filed fire claim and final proceeds received from the Hurricane Harvey claim, partially offset by expenses associated with storm damages at certain restaurant locations.
Restaurant closure charges primarily consisted of Chili’s lease termination charges and certain Chili’s restaurant closure costs.
Remodel-related costs related to existing fixed asset write-offs associated with the Chili’s remodel project.
Severance and other benefit charges primarily consisted of the restructuring of certain Maggiano’s back-office positions.
Foreign currency transaction (gain) loss resulted from the change in the value of our Mexican peso denominated note receivable received as consideration from the sale of our equity interest in our Mexico joint venture in the second quarter of fiscal 2018.
Sale leaseback (gain), net of transaction charges were recorded related to the fiscal 2019 sale leaseback transactions, refer to Note 9 - Leases for further details on this transaction.