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Restaurant Impairments, Closure Costs and Asset Disposals
 12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Restaurant Impairments, Closure Costs and Asset Disposals Restaurant Impairments, Closure Costs and Asset Disposals
The following table presents restaurant impairments, closure costs and asset disposals for fiscal years 2019, 2018 and 2017 (in thousands):
 
2019
 
2018
 
2017
Restaurant impairments(1)
$
6,218

 
$
1,453

 
$
16,154

Closure costs(1)
(54
)
 
4,149

 
20,052

Loss on disposal of assets and other
1,583

 
1,540

 
1,240

 
$
7,747

 
$
7,142

 
$
37,446

_____________________
(1)
Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed.
Restaurant Impairments
During 2019, 2018 and 2017, two restaurants, one restaurant and 34 restaurants were identified as impaired, respectively. In 2019, the Company recorded a $3.6 million write down of assets in connection with the sale of nine company-owned restaurants to a franchisee that closed in January of 2020. Impairment is based on 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.
In performing its impairment testing, the Company forecasts the future undiscounted cash flows by looking at recent restaurant level performance, restaurant level operating plans, sales trends and cost trends for cost of sales, labor and operating expenses. The Company compares this cash flow forecast to the asset’s carrying value at the restaurant. Based on this analysis, if the carrying amount of the assets is greater than the estimated future undiscounted cash flows, an impairment charge is recognized, measured as the amount by which the carrying amount exceeds the fair value of the asset.
Restaurant Closures
Closure costs during 2019 include costs related to five restaurants closed in 2019 as well as ongoing costs of previously closed restaurants and adjustments to the liabilities to landlords as lease terminations occur. In 2018 and 2017, the Company recognized $4.1 million and $20.1 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. 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.