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Reorganization and Reorganization Costs
 12 Months Ended
Dec. 29, 2019
Restructuring and Related Activities [Abstract]  
Realignment and Reorganization Costs Reorganization and Realignment Costs

The following is a summary of the initiatives included in “Reorganization and realignment costs:”
 
Year Ended
 
2019
 
2018
 
2017
IT realignment
$
9,127

 
$
—

 
$
—

G&A realignment
7,749

 
8,785

 
21,663

System optimization initiative
89

 
283

 
911

Reorganization and realignment costs
$
16,965

 
$
9,068

 
$
22,574



Information Technology (“IT”) Realignment

In December 2019, our Board of Directors approved a plan to realign and reinvest resources in the Company’s IT organization to strengthen its ability to accelerate growth. The Company is partnering with a third-party global IT consultant on this new structure to leverage their global capabilities, which the Company believes will enable a more seamless integration between its digital and corporate IT assets. The Company expects that the realignment plan will reduce certain employee compensation and other related costs that the Company intends to reinvest back into IT to drive additional capabilities and capacity across all of its technology platforms. The Company expects the majority of the impact of the realignment plan to occur at its Restaurant Support Center in Dublin, Ohio. The Company expects to incur total costs aggregating approximately $13,000 to $15,000 related to the plan. During 2019, the Company recognized costs totaling $9,127, which primarily included severance and related employee costs and third-party and other costs. The Company expects to incur additional costs aggregating approximately $5,500, comprised of (1) severance and related employee costs of approximately $1,000 and (2) third-party and other costs of approximately $4,500. The Company expects to recognize the majority of the remaining costs associated with the plan during the first half of 2020.

The following is a summary of the activity recorded as a result of the IT realignment plan:
 
2019
Severance and related employee costs
$
7,548

Third-party and other costs
1,386

 
8,934

Share-based compensation (a)
193

Total IT realignment
$
9,127

_______________

(a)
Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under our IT realignment plan.

The table below presents a rollforward of our accruals for the plan, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $8,025 and $599 as of December 29, 2019, respectively.
 
Balance
December 30, 2018
 
Charges
 
Payments
 
Balance
December 29, 2019
Severance and related employee costs
$
—

 
$
7,548

 
$
—

 
$
7,548

Third-party and other costs
—

 
1,386

 
(310
)
 
1,076

 
$
—

 
$
8,934

 
$
(310
)
 
$
8,624



General and Administrative (“G&A”) Realignment

In May 2017, the Company initiated a plan to further reduce its G&A expenses. Additionally, the Company announced in May 2019 changes to its management and operating structure that included the creation of two new positions, a President, U.S and Chief Commercial Officer and a President, International and Chief Development Officer, and the elimination of the Chief Operations Officer position. During 2019, 2018 and 2017, the Company recognized costs related to the plan totaling $7,749,
$8,785 and $21,663, respectively, which primarily included severance and related employee costs and share-based compensation. The Company does not expect to incur any additional material costs under the plan.

As discussed in Note 26, the realignment of our management and operating structure described above resulted in a change in our operating segments as of December 29, 2019.

The following is a summary of the activity recorded as a result of the G&A realignment plan:
 
Year Ended
 
Total Incurred
Since Inception
 
2019
 
2018
 
2017
 
Severance and related employee costs
$
5,485

 
$
3,797

 
$
14,956

 
$
24,238

Recruitment and relocation costs
950

 
1,077

 
489

 
2,516

Third-party and other costs
100

 
1,019

 
1,091

 
2,210

 
6,535

 
5,893

 
16,536

 
28,964

Share-based compensation (a)
1,214

 
1,557

 
5,127

 
7,898

Termination of defined benefit plans (b)
—

 
1,335

 
—

 
1,335

Total G&A realignment
$
7,749

 
$
8,785

 
$
21,663

 
$
38,197

_______________

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

(b)
During 2018, the Company terminated two frozen defined benefit plans. See Note 19 for further information.

The accruals for our G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $4,504 and $855 as of December 29, 2019, respectively, and $6,280 and $1,044 as of December 30, 2018, respectively. The tables below present a rollforward of our accruals for the plan.
 
Balance
December 30, 2018
 
Charges
 
Payments
 
Balance
December 29, 2019
Severance and related employee costs
$
7,241

 
$
5,485

 
$
(7,450
)
 
$
5,276

Recruitment and relocation costs
83

 
950

 
(950
)
 
83

Third-party and other costs
—

 
100

 
(100
)
 
—

 
$
7,324

 
$
6,535

 
$
(8,500
)
 
$
5,359



 
Balance
December 31,
2017
 
Charges
 
Payments
 
Balance
December 30, 2018
Severance and related employee costs
$
12,093

 
$
3,797

 
$
(8,649
)
 
$
7,241

Recruitment and relocation costs
177

 
1,077

 
(1,171
)
 
83

Third-party and other costs
—

 
1,019

 
(1,019
)
 
—

 
$
12,270

 
$
5,893

 
$
(10,839
)
 
$
7,324



System Optimization Initiative

The Company has recognized costs related to its system optimization initiative, which includes a shift from Company-operated restaurants to franchised restaurants over time, through acquisitions and dispositions, as well as facilitating Franchise Flips. The Company does not expect to incur any material additional costs under the plan.

The following is a summary of the costs recorded as a result of our system optimization initiative:
 
Year Ended
 
Total Incurred Since Inception
 
2019
 
2018
 
2017
 
Severance and related employee costs
$
—

 
$
—

 
$
3

 
$
18,237

Professional fees
72

 
264

 
838

 
17,784

Other
17

 
19

 
70

 
5,849

 
89

 
283

 
911

 
41,870

Accelerated depreciation and amortization (a)
—

 
—

 
—

 
25,398

Share-based compensation (b)
—

 
—

 
—

 
5,013

Total system optimization initiative
$
89

 
$
283

 
$
911

 
$
72,281

_______________

(a)
Primarily includes accelerated amortization of previously acquired franchise rights related to Company-operated restaurants in territories that have been sold to franchisees 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 table below presents a rollforward of our accruals for our system optimization initiative, which were included in “Accrued expenses and other current liabilities” and “Other liabilities.” As of both December 29, 2019 and December 30, 2018, no accrual remained.
 
Balance
January 1, 2017
 
Charges
 
Payments
 
Balance
December 31, 2017
Severance and related employee costs
$
—

 
$
3

 
$
(3
)
 
$
—

Recruitment and relocation costs
101

 
838

 
(939
)
 
—

Other
—

 
70

 
(70
)
 
—

 
$
101

 
$
911

 
$
(1,012
)
 
$
—