Restaurant Impairments, Closure Costs and Asset Disposals (Tables)

12 Months Ended

Jan. 02, 2018

Restructuring and Related Activities [Abstract]

Schedule of Changes in Liabilities for Closed Properties

Restaurant Closures

During 2017, 2016 and 2015, the Company recognized $20.1 million, $2.3 million and $3.1 million of closure costs, respectively. The closure costs recognized during 2017 are primarily related to the 55 restaurants closed during the first quarter of 2017 and ongoing costs of restaurants closed in the fourth quarter of 2015. The closure costs recognized during 2016 are related to the ongoing costs of restaurants closed during 2015, and closure costs recognized during 2015 relate to the 16 restaurants closed in the fourth quarter of 2015. Closure costs can include fees from real estate advisors and brokers related to terminations of the leases and charges resulting from final adjustments to liabilities as lease terminations occur.

The measurement of an estimated closed restaurant operating lease liability is a Level 3 fair value measure. The Company provides for closed restaurant operating lease liabilities using a discount rate of 4.64% to calculate the present value of the remaining non-cancellable 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 restaurants as of January 2, 2018 and January 3, 2017 (in thousands):

	2017			2016
Closed restaurant reserves, beginning of period	$	1,880		$	4,746
Additions—restaurant closing costs recognized and accretion	18,341			858
Decreases—payments	(12,042		)	(3,724		)
Closed restaurant reserves, end of period	$	8,179		$	1,880