Restaurant Impairment, Closure Costs and Asset Disposals Restaurant Impairment, Closure Costs and Asset Disposals

3 Months Ended

Apr. 04, 2017

Property, Plant and Equipment Impairment or Disposal [Abstract]

Restaurant Impairment, Closure Costs and Asset Disposals

Restaurant Impairments, Closure Costs and Asset Disposals

The following table presents restaurant impairments, closure costs and asset disposals (in thousands):

	Fiscal Quarter Ended
	April 4, 2017		March 29, 2016
Restaurant impairments (1)	$	1,935	$	194
Closure costs (1)	19,886		549
Loss on disposal of assets and other	233		273
	$	22,054	$	1,016

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(1) Restaurant impairments and closure costs in all periods presented above include expenditures related to restaurants previously impaired or closed.

During the first quarter of 2017, four restaurants were identified as impaired compared to one restaurant during the first quarter of 2016, primarily related to management’s current assessment of the expected future cash flows of various restaurants based on recent results and other specific market factors. Impairment expense is a Level 3 fair value measure and was determined by comparing the carrying value of restaurant assets to the estimated fair market value of the restaurant assets at resale value. The closure costs of $19.9 million recognized during the first quarter of 2017 are primarily related to the 55 restaurants closed during the first quarter of 2017. The closure costs of $0.5 million recognized during the first quarter of 2016 are related to the ongoing costs of restaurants closed in the fourth quarter of 2015. These expenses are included in the “Restaurant impairments, closure costs and asset disposals” line in the Condensed Consolidated Statements of Operations.