Restaurant Impairments, Closure Costs and Asset Disposals (Tables)

12 Months Ended

Jan. 01, 2019

Restructuring and Related Activities [Abstract]

Schedule of Changes in Liabilities for Closed Properties

Restaurant Closures

During 2018, 2017 and 2016, the Company recognized $4.1 million, $20.1 million and $2.3 million of closure costs, respectively. The closure costs recognized during 2018 are primarily related to the 19 restaurants closed throughout 2018, most of which were approaching the expiration of their leases, as well as ongoing costs from restaurants closed in previous years. 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 previous years, and the closure costs recognized during 2016 are primarily related to the ongoing costs of 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 discount rates in effect on the closure date. The discount rates used to calculate the present value of the remaining non-cancellable lease payments after the closing date, net of estimated subtenant income, range from 4.45% to 6.15%. The following table contains a summary of the changes in the liability for closed restaurants as of January 1, 2019 and January 2, 2018 (in thousands):

	2018			2017
Closed restaurant reserves, beginning of period	$	8,179		$	1,880
Additions—restaurant closing costs recognized and accretion	2,843			18,341
Decreases—payments	(8,005		)	(12,042		)
Closed restaurant reserves, end of period	$	3,017		$	8,179