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Reorganization and Realignment Costs
 6 Months Ended
Jul. 03, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
Reorganization and Realignment Costs

The following is a summary of the initiatives included in “Reorganization and realignment costs:”
 
Three Months Ended
 
Six Months Ended
 
July 3,
2016
 
June 28,
2015
 
July 3,
2016
 
June 28,
2015
G&A realignment
$
406

 
$
4,372

 
$
933

 
$
8,535

System optimization initiative
2,081

 
1,907

 
4,804

 
2,357

Reorganization and realignment costs
$
2,487

 
$
6,279

 
$
5,737

 
$
10,892



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 $933 during the six months ended July 3, 2016 and $24,201 in aggregate since inception. The Company expects to incur additional costs aggregating approximately $950 during the remainder of 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:
 
Three Months Ended
 
Six Months Ended
 
Total
Incurred
Since
Inception
 
July 3,
2016
 
June 28,
2015
 
July 3,
2016
 
June 28,
2015
 
Severance and related employee costs (a)
$
35

 
$
637

 
$
11

 
$
2,619

 
$
14,939

Recruitment and relocation costs
353

 
514

 
893

 
984

 
2,760

Other
18

 
9

 
29

 
41

 
166

 
406

 
1,160

 
933

 
3,644

 
17,865

Share-based compensation (b)
—

 
3,212

 
—

 
4,891

 
6,336

   Total G&A realignment
$
406

 
$
4,372

 
$
933

 
$
8,535

 
$
24,201

_______________

(a)
The six months ended July 3, 2016 includes a reversal of an accrual of $32 as a result of a change in estimate.

(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 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.”
 
Balance
January 3, 2016
 
Charges
 
Payments
 
Balance
July 3,
2016
Severance and related employee costs
$
3,431

 
$
11

 
$
(2,325
)
 
$
1,117

Recruitment and relocation costs
144

 
893

 
(807
)
 
230

Other
—

 
29

 
(29
)
 
—

 
$
3,575

 
$
933

 
$
(3,161
)
 
$
1,347



 
 
Balance
December 28, 2014
 
Charges
 
Payments
 
Balance
June 28,
2015
Severance and related employee costs
 
$
11,609

 
$
2,619

 
$
(5,974
)
 
$
8,254

Recruitment and relocation costs
 
149

 
984

 
(902
)
 
231

Other
 
5

 
41

 
(46
)
 
—

 
 
$
11,763

 
$
3,644

 
$
(6,922
)
 
$
8,485



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 facilitating franchisee-to-franchisee restaurant transfers. The Company expects to incur additional costs of approximately $3,700 during the remainder of 2016, which are primarily comprised of professional fees.

The following is a summary of the costs recorded as a result of our system optimization initiative:
 
Three Months Ended
 
Six Months Ended
 
Total
Incurred Since Inception
 
July 3,
2016
 
June 28,
2015
 
July 3,
2016
 
June 28,
2015
 
Severance and related employee costs
$
18

 
$
303

 
$
18

 
$
629

 
$
18,170

Professional fees
1,445

 
110

 
3,146

 
151

 
12,319

Other (a)
(37
)
 
(128
)
 
40

 
(45
)
 
5,511

 
1,426

 
285

 
3,204

 
735

 
36,000

Accelerated depreciation and amortization (b)
655

 
1,622

 
1,600

 
1,622

 
25,398

Share-based compensation (c)
—

 
—

 
—

 
—

 
5,013

Total system optimization initiative
$
2,081

 
$
1,907

 
$
4,804

 
$
2,357

 
$
66,411

_______________

(a)
The three and six months ended July 3, 2016 and June 28, 2015 include a reversal of an accrual of $50 and $210, respectively, as a result of a change in estimate.

(b)
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.

(c)
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
January 3,
2016
 
Charges
 
Payments
 
Balance
July 3,
2016
Severance and related employee costs
$
77

 
$
18

 
$
(35
)
 
$
60

Professional fees
708

 
3,146

 
(3,497
)
 
357

Other
90

 
40

 
(130
)
 
—

 
$
875

 
$
3,204

 
$
(3,662
)
 
$
417


 
Balance
December 28,
2014
 
Charges
 
Payments
 
Balance
June 28,
2015
Severance and related employee costs
$
2,235

 
$
629

 
$
(2,438
)
 
$
426

Professional fees
146

 
151

 
(159
)
 
138

Other
423

 
(45
)
 
(254
)
 
124

 
$
2,804

 
$
735

 
$
(2,851
)
 
$
688