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Reorganization and Realignment Costs
 12 Months Ended
Jan. 03, 2021
Restructuring and Related Activities [Abstract]  
Reorganization and Realignment Costs Reorganization and Realignment Costs
The following is a summary of the initiatives included in “Reorganization and realignment costs:”
Year Ended
202020192018
Operations and field realignment$3,801 $— $— 
IT realignment7,288 9,127 — 
G&A realignment614 7,749 8,785 
System optimization initiative4,327 89 283 
Reorganization and realignment costs$16,030 $16,965 $9,068 

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 2020, the Company recognized costs totaling $3,801, which primarily included severance and related employee costs and share-based compensation. The Company expects to incur additional costs aggregating approximately $3,000 to $5,000, 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 2021.

The following is a summary of the activity recorded as a result of the Operations and Field Realignment Plan:

Year Ended
2020
Severance and related employee costs$3,113 
Third party and other costs67 
3,180 
Share-based compensation (a)621 
Total operations and field realignment$3,801 
_______________

(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 accruals for the Operations and Field Realignment Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $2,487 and $113 as of January 3, 2021. The table below presents a rollforward of our accruals for the Operations and Field Realignment Plan.

Balance December 29, 2019ChargesPaymentsBalance January 3, 2021
Severance and related employee costs$— $3,113 $(513)$2,600 
Third party and other costs— 67 (67)— 
$— $3,180 $(580)$2,600 
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 certain employee compensation and other related costs that the Company has reinvested 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 elimination of the Chief Digital Experience Officer position and the creation of a Chief Information Officer position, for which the Company completed the hiring process in October 2020. During 2020 and 2019, the Company recognized costs totaling $7,288 and $9,127, respectively, which primarily included third-party and other costs and recruitment and relocation costs in 2020 and severance and related employee costs and third-party and other costs in 2019. The Company does not expect to incur any material additional costs under the IT Realignment Plan.

The following is a summary of the activity recorded as a result of the IT Realignment Plan:
Year EndedTotal Incurred Since Inception
20202019
Severance and related employee costs$843 $7,548 $8,391 
Recruitment and relocation costs1,296 — 1,296 
Third-party and other costs5,149 1,386 6,535 
7,288 8,934 16,222 
Share-based compensation (a)— 193 193 
Total IT realignment $7,288 $9,127 $16,415 
_______________

(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.

As of January 3, 2021, the accruals for our IT Realignment Plan are included in “Accrued expenses and other current liabilities.” As of December 29, 2019, the accruals for our IT Realignment Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $8,025 and $599, respectively. The tables below present a rollforward of our accruals for the IT Realignment Plan:
Balance December 29, 2019ChargesPaymentsBalance January 3, 2021
Severance and related employee costs$7,548 $843 $(6,883)$1,508 
Recruitment and relocation costs— 1,296 (1,296)— 
Third-party and other costs1,076 5,149 (6,225)— 
$8,624 $7,288 $(14,404)$1,508 

Balance December 30, 2018ChargesPaymentsBalance December 29, 2019
Severance and related employee costs$— $7,548 $— $7,548 
Recruitment and relocation costs— — — — 
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 (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 2020, 2019 and 2018, the Company recognized costs related to the plan totaling $614, $7,749 and $8,785, respectively, which primarily included recruitment and relocation costs and share-based compensation in 2020 and severance and related employee costs and share-based compensation in 2019 and 2018. 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:
Year EndedTotal Incurred
Since Inception
202020192018
Severance and related employee costs$28 $5,485 $3,797 $24,266 
Recruitment and relocation costs360 950 1,077 2,876 
Third-party and other costs13 100 1,019 2,223 
401 6,535 5,893 29,365 
Share-based compensation (a)213 1,214 1,557 8,111 
Termination of defined benefit plans (b)— — 1,335 1,335 
Total G&A realignment$614 $7,749 $8,785 $38,811 
_______________

(a)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.

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

As of January 3, 2021, the accruals for the G&A Realignment Plan are included in “Accrued expenses and other current liabilities.” As of December 29, 2019, the accruals for the G&A Realignment Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $4,504 and $855, respectively. The tables below present a rollforward of our accruals for the G&A Realignment Plan.
Balance
December 29,
2019		ChargesPaymentsBalance
January 3,
2021
Severance and related employee costs$5,276 $28 $(4,372)$932 
Recruitment and relocation costs83 360 (443)— 
Third-party and other costs— 13 (13)— 
$5,359 $401 $(4,828)$932 
Balance
December 30,
2018		ChargesPaymentsBalance
December 29,
2019
Severance and related employee costs$7,241 $5,485 $(7,450)$5,276 
Recruitment and relocation costs83 950 (950)83 
Third-party and other costs— 100 (100)— 
$7,324 $6,535 $(8,500)$5,359 
System Optimization Initiative

The Company recognizes costs related to acquisitions and dispositions under its system optimization initiative. During 2020, the Company recognized costs totaling $4,327, which were primarily comprised of professional fees related to the NPC bankruptcy sale process. See Note 4 for further information. The Company expects to incur additional costs of approximately $3,000 related to the NPC bankruptcy sale process during 2021.

The following is a summary of the costs recorded as a result of our system optimization initiative:
Year EndedTotal Incurred Since Inception
202020192018
Severance and related employee costs$— $— $— $18,237 
Professional fees4,323 72 264 22,107 
Other4 17 19 5,853 
4,327 89 283 46,197 
Accelerated depreciation and amortization (a)— — — 25,398 
Share-based compensation (b)— — — 5,013 
Total system optimization initiative$4,327 $89 $283 $76,608 
_______________

(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 are included in “Accrued expenses and other current liabilities.”
Balance
December 29, 2019		ChargesPaymentsBalance
January 3, 2021
Professional fees$— $4,323 $(3,093)$1,230 
Other— 4 (4)— 
$— $4,327 $(3,097)$1,230