Closed Restaurant Reserve

12 Months Ended

Dec. 29, 2015

Restructuring and Related Activities [Abstract]

The following table presents restaurant impairments, closure costs and asset disposals for fiscal years 2015, 2014 and 2013 (in thousands):



	2015		2014		2013
Restaurant impairments⁽¹⁾	$	25,436	$	57	$	54
Closure costs⁽¹⁾	3,076		91		129
Loss on disposal of assets and other	1,104		1,243		981
	$	29,616	$	1,391	$	1,164

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(1)	Restaurant impairments and closure costs can include expenditures related to restaurants previously impaired or closed.

Restaurant Impairments

During fiscal year 2015, the Company recognized restaurant impairment expense, primarily related to management's current assessment of the expected future cash flows of various restaurants based on recent results. During fiscal year 2015, 39 restaurants were identified as impaired. Fifteen of the 39 restaurants impaired in fiscal year 2015 were also closed in that year. Impairment expense is a Level 3 fair value measure and was determined by comparing the carrying value of restaurant assets to the estimated fair value of the restaurant assets at resale value. These expenses are included in the "Restaurant impairments, closure costs and asset disposals" line in the consolidated statements of income.

7. Impairment and Closed Restaurant Reserve (continued)

Restaurant Closures

During fiscal year 2015, the Company closed 16 restaurants that operated below acceptable profitability levels. The Company did not close any restaurants in fiscal year 2014. In fiscal year 2013, one restaurant was closed at the end of its lease term. The Company recorded minimal closure costs in fiscal years 2014 and 2013 related to previously closed restaurants.

The Company provides for closed property operating lease liabilities using a discount rate of 4.45% to calculate the present value of the remaining non-cancelable lease payments after the closing date, net of estimated subtenant income. The following table contains a summary of the changes in the liability for closed properties as of December 29, 2015 and December 30, 2014 (in thousands):



	2015			2014
Closed restaurant reserves, beginning of period	$	444		$	583
Additions—store closing costs recognized and accretion	4,518			77
Decreases—payments	(216		)	(216		)
Closed restaurant reserves, end of period	$	4,746		$	444

The current portion of the liability, $2.4 million and $0.2 million as of December 29, 2015 and December 30, 2014, respectively, is recorded in accrued expenses and other liabilities, and the long-term portion is reported in other noncurrent liabilities in the Company's consolidated balance sheets.