Reorganization and Realignment Costs

The following is a summary of the initiatives included in “Reorganization and realignment costs:”



	Year Ended
	2015		2014		2013
G&A realignment	$	10,342	$	12,926	$	—
System optimization initiative	11,568		18,977		31,062
Facilities relocation and other transition costs	—		—		4,574
Breakfast discontinuation	—		—		1,118
Arby’s transaction related costs	—		—		263
Reorganization and realignment costs	$	21,910	$	31,903	$	37,017

G&A Realignment

In November 2014, the Company initiated a plan to reduce its general and administrative expenses. The plan included a realignment and reinvestment of resources to focus primarily on accelerated restaurant development and consumer-facing restaurant technology to drive long-term growth. The Company achieved the majority of the expense reductions through the realignment of its U.S. field operations and savings at its Restaurant Support Center in Dublin, Ohio, which was substantially completed by the end of the second quarter of 2015. The Company recognized costs totaling $10,342 during 2015 and $23,268 in aggregate since inception. The Company expects to incur additional costs aggregating approximately $1,900 during 2016, comprised primarily of recruitment and relocation costs for the reinvestment in resources to drive long-term growth.

The following is a summary of the activity recorded as a result of our G&A realignment plan:



	Year Ended				Total Incurred Since Inception
	2015		2014		Total Incurred Since Inception
Severance and related employee costs	$	3,011	$	11,917	$	14,928
Recruitment and relocation costs	1,658		209		1,867
Other	49		88		137
	4,718		12,214		16,932
Share-based compensation (a)	5,624		712		6,336
Total G&A realignment	$	10,342	$	12,926	$	23,268

_______________


(a)	Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our G&A realignment plan.

The tables below present a rollforward of our accruals for our G&A realignment plan, which are included in “Accrued expenses and other current liabilities” and “Other liabilities.”



	Balance December 28, 2014		Charges		Payments			Balance January 3, 2016
Severance and related employee costs	$	11,609	$	3,011	$	(11,189	)	$	3,431
Recruitment and relocation costs	149		1,658		(1,663		)	144
Other	5		49		(54		)	—
	$	11,763	$	4,718	$	(12,906	)	$	3,575



	Balance December 29, 2013		Charges		Payments			Balance December 28, 2014
Severance and related employee costs	$	—	$	11,917	$	(308	)	$	11,609
Recruitment and relocation costs	—		209		(60		)	149
Other	—		88		(83		)	5
	$	—	$	12,214	$	(451	)	$	11,763

System Optimization Initiative

The Company has recognized costs related to its system optimization initiative which includes a shift from company-owned restaurants to franchised restaurants over time, through acquisitions and dispositions, as well as helping to facilitate franchisee-to-franchisee restaurant transfers. The Company expects to incur additional costs of approximately $8,600 during 2016, which are primarily comprised of professional fees of approximately $7,000 and accelerated amortization of previously acquired franchise rights related to company-owned restaurants in territories that will be sold to franchisees of approximately $1,600.

The following is a summary of the costs recorded as a result of our system optimization initiative:



	Year Ended						Total Incurred Since Inception
	2015		2014		2013		Total Incurred Since Inception
Severance and related employee costs	$	894	$	7,608	$	9,650	$	18,152
Professional fees	3,360		3,424		2,389		9,173
Other	930		3,678		863		5,471
	5,184		14,710		12,902		32,796
Accelerated depreciation and amortization (a)	6,384		507		16,907		23,798
Share-based compensation (b)	—		3,760		1,253		5,013
Total system optimization initiative	$	11,568	$	18,977	$	31,062	$	61,607

_______________


(a)	Primarily includes accelerated amortization of previously acquired franchise rights related to company-owned restaurants in territories that will be or have been sold in connection with our system optimization initiative.


(b)	Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative.

The tables below present a rollforward of our accrual for our system optimization initiative, which is included in “Accrued expenses and other current liabilities.”



	Balance December 28, 2014		Charges		Payments			Balance January 3, 2016
Severance and related employee costs	$	2,235	$	894	$	(3,052	)	$	77
Professional fees	146		3,360		(2,798		)	708
Other	423		930		(1,263		)	90
	$	2,804	$	5,184	$	(7,113	)	$	875



	Balance December 29, 2013		Charges		Payments			Balance December 28, 2014
Severance and related employee costs	$	7,051	$	7,608	$	(12,424	)	$	2,235
Professional fees	137		3,424		(3,415		)	146
Other	260		3,678		(3,515		)	423
	$	7,448	$	14,710	$	(19,354	)	$	2,804

Facilities Relocation and Other Transition Costs

During 2012, the Company substantially completed the relocation of the Company’s Atlanta restaurant support center to Ohio. The Company did not incur any expenses during 2015 or 2014 and does not expect to incur additional costs related to the relocation.



	Year Ended		Total Incurred Since Inception
	2013		Total Incurred Since Inception
Severance, retention and other payroll costs	$	1,856	$	17,153
Relocation costs	1,898		7,120
Atlanta facility closure costs	337		4,878
Consulting and professional fees	128		5,056
Other	355		2,495
	4,574		36,702
Accelerated depreciation expense	—		2,118
Share-based compensation	—		271
Total	$	4,574	$	39,091

As of January 3, 2016, our accruals for facilities relocation and other transition costs, which are included in “Accrued expenses and other current liabilities” and “Other liabilities,” totaled $1,863 and related to Atlanta facility closure costs.

Breakfast Discontinuation

During 2013, the Company reflected costs totaling $1,118, resulting from the discontinuation of the breakfast daypart at certain restaurants. Costs during 2013 primarily consisted of the remaining carrying value of breakfast related equipment no longer being used.

Arby’s Transaction Related Costs

As a result of the sale of Arby’s in July 2011, we expensed costs related to the Arby’s transaction during 2013 of $263 and $41,919 since inception. The Company did not incur any expenses during 2015 or 2014 and does not expect to incur additional costs related to the transaction.