Facilities Relocation and Other Transition Costs

As announced in December 2011, we are relocating the Company’s Atlanta restaurant support center to Ohio. The Company expects to expense costs aggregating approximately $28,000 in 2012 and $2,600 in 2013 related to its relocation and other transition activities which are expected to be substantially completed during the third quarter of 2012. The costs expected to be expensed in 2013 primarily relate to severance and other costs for employees who will be assisting in the transition activities through the early part of 2013.

The components of “Facilities relocation and other transition costs” for the three and six months ended July 1, 2012, as well as the total expected to be incurred and total incurred since inception are presented in the table below:



	Three Months Ended July 1, 2012		Six Months Ended July 1, 2012		Total Incurred Since Inception		Total Expected to be Incurred
Severance, retention and other payroll costs	$	4,317	$	7,316	$	12,661	$	12,849
Relocation costs	1,505		2,081		2,081		6,652
Existing facilities closure costs	133		177		177		5,537
Consulting and professional fees	1,933		2,818		2,818		6,042
Other	879		1,265		1,250		3,090
	8,767		13,657		18,987		34,170
Accelerated depreciation	659		1,300		1,497		1,925
Total	$	9,426	$	14,957	$	20,484	$	36,095

The increase in the Total Expected to be Incurred noted above as compared to our 2011 year end estimate relates primarily to additional professional fees that became determinable during our 2012 first quarter.

An analysis of related activity in the facilities relocation and other transition costs accrual which is included in “Accrued expenses and other current liabilities” is as follows:



	Balance							Balance
	January 1, 2012		Charges		Payments			July 1, 2012
Severance, retention and other payroll costs	$	5,345	$	7,316	$	(4,862	)	$	7,799
Relocation costs	—		2,081		(1,035		)	1,046
Existing facilities closure costs	—		177		(177		)	—
Consulting and professional fees	—		2,818		(1,939		)	879
Other	—		1,265		(1,124		)	141
	$	5,345	$	13,657	$	(9,137	)	$	9,865