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Reorganization and Realignment Costs
 3 Months Ended
Mar. 29, 2020
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:”
 
Three Months Ended
 
March 29,
2020
 
March 31,
2019
IT realignment
$
3,559

 
$
—

G&A realignment
267

 
782

System optimization initiative
84

 
16

Reorganization and realignment costs
$
3,910

 
$
798



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 the three months ended March 29, 2020, the Company recognized costs totaling $3,559, which primarily included third-party and other costs. The Company expects to incur additional costs aggregating approximately $1,500, comprised primarily of third-party and other costs. The Company expects to recognize the majority of the remaining costs associated with the plan during the second quarter of 2020.

The following is a summary of the activity recorded as a result of the IT realignment plan:
 
Three Months Ended
 
Total
Incurred Since Inception
 
March 29,
2020
 
Severance and related employee costs
$
145

 
$
7,693

Recruitment and relocation costs
171

 
171

Third-party and other costs
3,243

 
4,629

 
3,559

 
12,493

Share-based compensation (a)
—

 
193

Total IT realignment
$
3,559

 
$
12,686

_______________

(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 $6,744 and $237 as of March 29, 2020, respectively.
 
Balance
December 29, 2019
 
Charges
 
Payments
 
Balance
March 29, 2020
Severance and related employee costs
$
7,548

 
$
145

 
$
(712
)
 
$
6,981

Recruitment and relocation costs
—

 
171

 
(171
)
 
—

Third-party and other costs
1,076

 
3,243

 
(4,319
)
 
—

 
$
8,624

 
$
3,559

 
$
(5,202
)
 
$
6,981



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 the three months ended March 29, 2020 and March 31, 2019, the Company recognized costs related to the plan totaling $267 and $782, 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.

The following is a summary of the activity recorded as a result of the G&A realignment plan:
 
Three Months Ended
 
Total
Incurred Since Inception
 
March 29,
2020
 
March 31,
2019
 
Severance and related employee costs
$
152

 
$
472

 
$
24,390

Recruitment and relocation costs
15

 
114

 
2,531

Third-party and other costs
1

 
16

 
2,211

 
168

 
602

 
29,132

Share-based compensation (a)
99

 
180

 
7,997

Termination of defined benefit plans
—

 
—

 
1,335

Total G&A realignment
$
267

 
$
782

 
$
38,464

_______________

(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.

The accruals for our G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $3,781 and $408 as of March 29, 2020, respectively, and $4,730 and $765 as of March 31, 2019, respectively. The tables below present a rollforward of our accruals for the plan.
 
Balance
December 29,
2019
 
Charges
 
Payments
 
Balance
March 29,
2020
Severance and related employee costs
$
5,276

 
$
152

 
$
(1,306
)
 
$
4,122

Recruitment and relocation costs
83

 
15

 
(31
)
 
67

Third-party and other costs
—

 
1

 
(1
)
 
—

 
$
5,359

 
$
168

 
$
(1,338
)
 
$
4,189


 
Balance
December 30,
2018
 
Charges
 
Payments
 
Balance
March 31,
2019
Severance and related employee costs
$
7,241

 
$
472

 
$
(2,218
)
 
$
5,495

Recruitment and relocation costs
83

 
114

 
(197
)
 
—

Third-party and other costs
—

 
16

 
(16
)
 
—

 
$
7,324

 
$
602

 
$
(2,431
)
 
$
5,495



System Optimization Initiative

The Company recognizes costs related to acquisitions and dispositions under its system optimization initiative. The Company has incurred costs of $72,365 under the initiative since inception and does not expect to incur any material additional costs under the plan.