XML 15 R10.htm IDEA: XBRL DOCUMENT v3.19.3
OTHER (GAINS) AND CHARGES
 3 Months Ended
Sep. 25, 2019
Other Gains and Charges [Abstract]  
Other (Gains) and Charges
Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited) consist of the following:
 
Thirteen Week Periods Ended
 
September 25,
2019
 
September 26,
2018
Lease modification (gain)
$
(3.1
)
 
$
—

Acquisition of franchise restaurants costs, net of (gains)
(0.5
)
 
—

Remodel-related costs
0.7

 
0.5

Property damages, net of (insurance recoveries)
0.3

 
(0.8
)
Corporate headquarters relocation charges
0.3

 
—

Restaurant closure charges
0.2

 
1.7

Foreign currency transaction (gain) loss
0.2

 
(0.8
)
Severance and other benefit charges
0.2

 
—

Sale leaseback (gain), net of transaction charges
—

 
(13.3
)
Accelerated depreciation of previous headquarters
—

 
0.5

Cyber security incident charges
—

 
0.4

Other
0.8

 
0.7

 
$
(0.9
)
 
$
(11.1
)

Fiscal 2020
•
Lease modification (gain) of $3.1 million during the thirteen week period ended September 25, 2019 relates to the lease termination of a previously impaired Chili’s operating lease.
•
Acquisition of franchise restaurants costs, net of (gains) during the thirteen week period ended September 25, 2019 related to the 116 restaurants acquired from a franchisee, refer to Note 2 - Chili’s Restaurant Acquisition for details.
•
Remodel-related costs during the thirteen week period ended September 25, 2019 of $0.7 million were recorded related to existing fixed asset write-offs associated with the Chili’s remodel project.
•
Property damages, net of (insurance recoveries) during the thirteen week period ended September 25, 2019 consisted primarily of costs incurred for damages from Tropical Storm Imelda.
•
Corporate headquarters relocation charges of $0.3 million during the thirteen week period ended September 25, 2019 related to costs associated with the previous corporate headquarters location.
•
Restaurant closure charges of $0.2 million during the thirteen week period ended September 25, 2019 related to leases on certain closed restaurant locations.
•
Foreign currency transaction (gain) loss related to the CMR note denominated in pesos received from the sale of our equity interest in our Chili’s joint venture in Mexico during the second quarter of fiscal 2018. During the thirteen week period ended September 25, 2019, the value of the peso decreased as compared to the United States dollar resulting in a foreign currency transaction loss of $0.2 million.
•
Severance and other benefit charges during the thirteen week period ended September 25, 2019 related to the elimination of certain corporate headquarters positions.
Fiscal 2019
•
Sale leaseback (gain), net of transaction charges during the thirteen week period ended September 26, 2018 included gains of $20.1 million, associated with the transactions, less transaction costs incurred of $6.8 million
related to professional services, legal and accounting fees. Refer to Note 3 - Leases for further details on this transaction.
•
Property damages, net of (insurance recoveries) during the thirteen week period ended September 26, 2018 included $0.9 million of insurance proceeds received related to a previously filed fire claim, partially offset by expenses incurred associated with storm damages at certain restaurant locations.
•
Foreign currency transaction (gain) loss during the thirteen week period ended September 26, 2018 included gains of $0.8 million resulting from the change in value of the Mexican peso as compared to that of the United States dollar on our Mexican peso denominated note receivable.
•
Restaurant closure charges during the thirteen week period ended September 26, 2018 included $1.7 million which were primarily related to Chili’s lease termination charges and certain Chili’s restaurant closure costs.
•
Accelerated depreciation of previous headquarters during the thirteen week period ended September 26, 2018 included $0.5 million of depreciation on certain leasehold improvements associated with the leased portion of our previous corporate headquarters property which closed during the third quarter of fiscal 2019.
•
Remodel-related costs during the thirteen week period ended September 26, 2018 totaling $0.5 million were recorded related to existing fixed asset write-offs associated with the Chili’s remodel project.
•
Cyber security incident charges during the thirteen week period ended September 26, 2018 of $0.4 million were recorded related to professional services associated with our response to the fourth quarter fiscal 2018 incident that are not believed to be covered by our insurance coverage. Refer to Note 15 - Commitments and Contingencies for more information.