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Reorganization and Realignment Costs
 9 Months Ended
Sep. 27, 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 EndedNine Months Ended
September 27,
2020		September 29,
2019		September 27,
2020		September 29,
2019
Operations and field realignment$3,021 $— $3,021 $— 
IT realignment403 — 6,809 — 
G&A realignment(49)396 282 4,695 
System optimization initiative— 7 84 76 
Reorganization and realignment costs$3,375 $403 $10,196 $4,771 

Operations and Field Realignment

In September 2020, the Company initiated a plan to reallocate resources to better support the long-term growth strategies for Company and franchise operations (the “Operations and Field Realignment Plan”). The Operations and Field Realignment Plan realigns the Company’s restaurant operations team, including transitioning from separate leaders of Company and franchise operations to a single leader of all U.S. restaurant operations. We also expect to incur contract termination charges, including the planned closure of certain field offices. The Company expects to incur total costs aggregating approximately $7,000 to $9,000 related to the Operations and Field Realignment Plan. During the nine months ended September 27, 2020, the Company recognized costs totaling $3,021, which included severance and related employee costs and share-based compensation. The Company expects to incur additional costs aggregating approximately $4,000 to $6,000, comprised primarily of third-party and other costs. The Company expects to recognize the majority of the remaining costs associated with the Operations and Field Realignment Plan during the remainder of 2020 and 2021.

The following is a summary of the activity recorded as a result of the Operations and Field Realignment Plan:
Three Months Ended
September 27,
2020
Severance and related employee costs$2,502 
Share-based compensation (a)519 
Total operations and field realignment$3,021 
_______________

(a)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the Operations and Field Realignment Plan.

The table below presents a rollforward of our accruals for the Operations and Field Realignment Plan, which are included in “Accrued expenses and other current liabilities” as of September 27, 2020.
Balance
December 29, 2019		ChargesPaymentsBalance
September 27,
2020
Severance and related employee costs$— $2,502 $— $2,502 
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 “IT Realignment Plan”). The Company has partnered with a third-party global IT consultant on this new structure to leverage their global capabilities, which will enable a more seamless integration between its digital and corporate IT assets. The IT Realignment Plan has reduced and will continue to reduce certain employee compensation and other related costs that the Company is reinvesting back into IT to drive additional capabilities and capacity across all of its technology platforms. Additionally, in June 2020, the Company made changes to its leadership structure that included the creation of a Chief Information Officer position and the elimination of the Chief Digital Experience Officer position. As a result, the Company expects to incur total costs aggregating approximately $16,000 to $17,000 related to the IT Realignment Plan. During the nine months ended September 27, 2020, the Company recognized costs totaling $6,809, which primarily included third-party and other costs and severance and related employee costs. The Company expects to incur additional costs aggregating approximately $1,000, comprised primarily of recruitment and relocation costs. The Company expects to recognize the majority of the remaining costs associated with the IT Realignment Plan during the remainder of 2020. Subsequent to September 27, 2020, the Company announced the appointment of its new Chief Information Officer.

The following is a summary of the activity recorded as a result of the IT Realignment Plan:
Three Months EndedNine Months EndedTotal
Incurred Since Inception
September 27,
2020		September 27,
2020
Severance and related employee costs$34 $1,009 $8,557 
Recruitment and relocation costs345 659 659 
Third-party and other costs24 5,141 6,527 
403 6,809 15,743 
Share-based compensation (a)— — 193 
Total IT realignment $403 $6,809 $15,936 
_______________

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

The table below presents a rollforward of our accruals for the IT Realignment Plan, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $2,739 and $178 as of September 27, 2020, respectively.
Balance
December 29, 2019		ChargesPaymentsBalance
September 27,
2020
Severance and related employee costs$7,548 $1,009 $(5,640)$2,917 
Recruitment and relocation costs— 659 (659)— 
Third-party and other costs1,076 5,141 (6,217)— 
$8,624 $6,809 $(12,516)$2,917 
General and Administrative (“G&A”) Realignment

In May 2017, the Company initiated a plan to further reduce its G&A expenses (the “G&A Realignment Plan”). Additionally, in May 2019, the Company announced 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 nine months ended September 27, 2020 and September 29, 2019, the Company recognized costs related to the G&A Realignment Plan totaling $282 and $4,695, respectively, which primarily included share-based compensation for 2020 and severance and related employee costs and share-based compensation for 2019. The Company does not expect to incur any material additional costs under the G&A Realignment Plan.

The following is a summary of the activity recorded as a result of the G&A Realignment Plan:
Three Months EndedNine Months EndedTotal
Incurred Since Inception
September 27,
2020		September 29,
2019		September 27,
2020		September 29,
2019
Severance and related employee costs (a)$(116)$214 $30 $2,816 $24,268 
Recruitment and relocation costs27 58 42 654 2,558 
Third-party and other costs9 25 10 112 2,220 
(80)297 82 3,582 29,046 
Share-based compensation (b)31 99 200 1,113 8,098 
Termination of defined benefit plans— — — — 1,335 
Total G&A realignment$(49)$396 $282 $4,695 $38,479 
_______________

(a)The three and nine months ended September 27, 2020 includes a reversal of an accrual as a result of a change in estimate.

(b)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the G&A Realignment Plan.

The accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $1,705 and $18 as of September 27, 2020, respectively, and $3,491 and $507 as of September 29, 2019, respectively. The tables below present a rollforward of our accruals for the G&A Realignment Plan.
Balance
December 29,
2019		ChargesPaymentsBalance
September 27,
2020
Severance and related employee costs$5,276 $30 $(3,627)$1,679 
Recruitment and relocation costs83 42 (81)44 
Third-party and other costs— 10 (10)— 
$5,359 $82 $(3,718)$1,723 
Balance
December 30,
2018		ChargesPaymentsBalance
September 29,
2019
Severance and related employee costs$7,241 $2,816 $(6,216)$3,841 
Recruitment and relocation costs83 654 (580)157 
Third-party and other costs— 112 (112)— 
$7,324 $3,582 $(6,908)$3,998 
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.