Facility Consolidation

3 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

Facility Consolidation Costs

Facility Consolidation Costs

In September 2015, the Company approved a plan to consolidate many core restaurant and franchisee support functions at its headquarters in Glendale, California and communicated the plan to employees. In conjunction with this action, the Company will exit a significant portion of the Applebee's restaurant support center in Kansas City, Missouri. The Company estimates it will incur a total of approximately $8 million in employee termination and other personnel-related costs associated with the consolidation. As of March 31, 2016, the Company has incurred a total of $5.7 million in employee termination costs and expects to incur the majority of the remaining estimated costs in the second and third fiscal quarters of 2016. The Company estimates it will incur up to an additional $8 million in costs related to the exit of the facility. The majority of the facility exit costs will be incurred as of the date the Company will stop using a significant portion of the facility it will be vacating, estimated to be in the second quarter of fiscal 2016.

During the three months ended March 31, 2016, the Company incurred $1.1 million of employee termination costs, primarily relocation and severance costs associated with the consolidation. These charges were included in general and administrative expenses in the Consolidated Statements of Comprehensive Income.

	Employee Termination Costs
	(In millions )
Accrued termination costs at December 31, 2014	$	—
Charges	4.6
Payments	(1.1		)
Accrued termination costs at December 31, 2015	3.5
Charges	1.1
Payments	(2.3		)
Accrued termination costs at March 31, 2016	$	2.3

The $2.3 million of accrued termination costs were included in accrued employee compensation and benefits in the Consolidated Balance Sheet at March 31, 2016. Approximately $3.3 million and $0.2 million of accrued termination costs were included in accrued employee compensation and benefits and other accrued expenses, respectively, in the Consolidated Balance Sheet at December 31, 2015.