RESTRUCTURING

On July 29, 2016, the Company announced that a thorough review of the Company-operated store portfolio would be performed. As a result of this evaluation and other cost-reduction initiatives, during the three months ended September 30, 2016, the Company closed two underperforming Company-operated stores and will close 54 additional Company-operated stores during the three months ending December 31, 2016. Additional store closings are expected during 2017. The Company also optimized its home office and field support staff, which resulted in a reduction in employee headcount in those areas, to more closely align with current business conditions. Total restructuring charges of $4.7 million were recorded during the three months ended September 30, 2016, comprised of $2.5 million related to the write-off and impairment of store property, plant and equipment and $2.1 million related to workforce reductions. These costs were included in the line item "Restructuring expenses" in the condensed consolidated statements of earnings.

Total restructuring charges of $2.6 million, $2.0 million, and $88,000 have been included in the Sales and Lease Ownership, Other, and Franchise segment results, respectively. The Company currently anticipates it will incur approximately $13.0 million related to this restructuring plan in the fourth quarter of 2016, principally related to contractual lease obligations for store locations that are being closed, all of which will be included within the Sales and Lease Ownership segment results.

The following table summarizes the balance of the accruals related to the restructuring charges and the movement in that accrual for the nine months ended September 30, 2016:



(In Thousands)	Severance			Fixed Assets			Total
Balance at January 1, 2016	$	—		$	—		$	—
Restructuring Expenses	2,115			2,543			4,658
Payments	(1,229		)	—			(1,229		)
Impairment and Assets Written Off	—			(2,543		)	(2,543		)
Balance at September 30, 2016	$	886		$	—		$	886