
	IMPAIRMENT, DISPOSITION OF PROPERTY AND EQUIPMENT, RESTAURANT CLOSING COSTS AND RESTRUCTURING

Impairment and other charges, net in the accompanying condensed consolidated statements of earnings is comprised of the following (in thousands):



	Sixteen Weeks Ended
	January 19, 2014		January 20, 2013
Impairment charges	$	95	$	2,522
Losses (gains) on the disposition of property and equipment, net	952		(832		)
Costs of closed restaurants (primarily lease obligations) and other	564		751
Restructuring costs	298		812
	$	1,909	$	3,253

Impairment — When events and circumstances indicate that our long-lived assets might be impaired and their carrying amount is greater than the undiscounted cash flows we expect to generate from such assets, we recognize an impairment loss as the amount by which the carrying value exceeds the fair value of the assets. Impairment charges in both periods include charges for restaurants we have closed, and additionally in 2013, charges for underperforming Jack in the Box restaurants.

Disposition of property and equipment — We also recognize accelerated depreciation and other costs on the disposition of property and equipment. When we decide to dispose of a long-lived asset, depreciable lives are adjusted based on the estimated disposal date and accelerated depreciation is recorded. Other disposal costs primarily relate to gains or losses recognized upon the sale of closed restaurant properties, and charges from our ongoing restaurant upgrade programs, remodels and rebuilds, and other corporate initiatives. In 2013, losses on the disposition of property and equipment include income of $2.1 million from the resolution of two eminent domain matters involving Jack in the Box restaurants.

Restaurant closing costs consist of future lease commitments, net of anticipated sublease rentals and expected ancillary costs, and are included in impairment and other charges, net in the accompanying condensed consolidated statements of earnings. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities, changed as follows (in thousands):



	Sixteen Weeks Ended
	January 19, 2014			January 20, 2013
Balance at beginning of period	$	16,321		$	20,677
Adjustments	612			426
Cash payments	(1,434		)	(1,542		)
Balance at end of quarter	$	15,499		$	19,561

In 2014 and 2013, adjustments primarily relate to revisions to certain sublease and cost assumptions due to changes in market conditions.

Restructuring costs — Since the beginning of 2012, we have been engaged in a comprehensive review of our organization structure, including evaluating opportunities for outsourcing, restructuring of certain functions and workforce reductions. The following is a summary of the costs incurred in connection with these activities (in thousands):



	Sixteen Weeks Ended
	January 19, 2014		January 20, 2013
Severance costs	$	298	$	368
Other	—		444
	$	298	$	812

Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows (in thousands):



	Sixteen Weeks Ended
	January 19, 2014			January 20, 2013
Balance at beginning of period	$	253		$	1,758
Additions	298			368
Cash payments	(453		)	(1,455		)
Balance at end of quarter	$	98		$	671

As part of the ongoing review of our organization structure, we expect to incur additional charges related to our restructuring activities; however, we are unable to make a reasonable estimate at this time. Our continuing efforts to lower our cost structure include identifying opportunities to reduce general and administrative costs as well as improve restaurant profitability across both brands.