Divestitures

Refranchising Initiative

In February 2015, the Company announced a plan to refranchise approximately 50 to 150 Company-owned bakery-cafes. As of March 29, 2016, the Company had completed the sale of 75 Company-owned bakery-cafes.

During the thirteen weeks ended March 29, 2016, 20 Company-owned bakery-cafes that the Company concluded no longer met all of the criteria required to be classified as held for sale were reclassified to held and used at their fair value.

The Company classified as held for sale the assets and certain liabilities of 15 and 35 Company-owned bakery-cafes as of March 29, 2016 and December 29, 2015, respectively. The Company classifies assets as held for sale and ceases depreciation of the assets when those assets meet the held for sale criteria, as defined in GAAP. The following summarizes the financial statement carrying amounts of assets and liabilities associated with the bakery-cafes classified as held for sale (in thousands):



	March 29, 2016		December 29, 2015
Inventories	$	298	$	738
Property and equipment, net	14,842		26,462
Goodwill	913		1,499
Assets held for sale	$	16,053	$	28,699

Deferred rent	$	1,029	$	2,410
Asset retirement obligation	202		535
Liabilities associated with assets held for sale	$	1,231	$	2,945

Assets held for sale were valued using Level 3 inputs, primarily representing information obtained from signed letters of intent. Costs to sell are considered in the estimates of fair value for those assets included in Assets held for sale in the Company's Consolidated Balance Sheets.

The following summarizes activity associated with the refranchising initiative recorded in the caption entitled Refranchising loss in the Consolidated Statements of Income for the periods indicated (in thousands):



	For the 13 Weeks Ended
	March 29, 2016		March 31, 2015
Loss on assets held for sale (1)	$	—	$	7,625
Lease termination costs and impairment of long-lived assets (1)	905		3,836
Professional fees, severance, and other	166		—
Loss (gain) on sale of bakery-cafes (1)	—		(2,570		)
Refranchising loss	$	1,071	$	8,891


(1)	Amounts for the thirteen weeks ended March 31, 2015 are included in the caption entitled Refranchising loss in the Consolidated Statements of Cash Flows as a non-cash adjustment to reconcile net income to net cash provided by operating activities.