IMPAIRMENT, DISPOSITION OF PROPERTY AND EQUIPMENT, RESTAURANT CLOSING COSTS AND RESTRUCTURING

Impairment and other charges, net in the accompanying condensed consolidated statements of earnings is comprised of the following (in thousands):



	Quarter				Year-to-Date
	July 8, 2012		July 10, 2011		July 8, 2012		July 10, 2011
Impairment charges	$	656	$	517	$	2,765	$	1,684
Losses on the disposition of property and equipment, net	904		660		3,762		6,084
Costs of closed restaurants (primarily lease obligations) and other	2,337		924		5,270		2,423
Restructuring costs	11,284		—		12,809		—
	$	15,181	$	2,101	$	24,606	$	10,191

Impairment — When events and circumstances indicate that our long-lived assets might be impaired and their carrying amount is greater than the undiscounted cash flows we expect to generate from such assets, we recognize an impairment loss as the amount by which the carrying value exceeds the fair value of the assets. We typically estimate fair value based on the estimated discounted cash flows of the related asset using marketplace participant assumptions. Impairment charges in 2012 primarily represent charges to write down the carrying value of five underperforming Jack in the Box restaurants and three Jack in the Box restaurants we intend to or have closed.

Disposition of property and equipment — We also recognize accelerated depreciation and other costs on the disposition of property and equipment. When we decide to dispose of a long-lived asset, depreciable lives are adjusted based on the estimated disposal date, and accelerated depreciation is recorded. Other disposal costs primarily relate to charges from our ongoing re-image and logo program and normal capital maintenance activities.

Restaurant closing costs consist of future lease commitments, net of anticipated sublease rentals and expected ancillary costs. Total accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities, changed as follows (in thousands):



	Quarter						Year-to-Date
	July 8, 2012			July 10, 2011			July 8, 2012			July 10, 2011
Balance at beginning of period	$	20,167		$	22,163		$	21,657		$	25,020
Additions and adjustments	1,801			379			3,713			1,163
Cash payments	(1,649		)	(1,661		)	(5,051		)	(5,302		)
Balance at end of quarter	$	20,319		$	20,881		$	20,319		$	20,881

Additions and adjustments in all periods primarily relate to revisions to certain sublease and cost assumptions.

Restructuring costs — During fiscal 2012, we have been engaged in a comprehensive review of our organization structure, including evaluating opportunities for outsourcing, restructuring of certain functions and workforce reductions. As part of these cost-saving initiatives, we announced a voluntary early retirement program (“VERP”) to eligible employees and initiated workforce reductions. Restructuring costs consist primarily of pension and employee termination costs related to the VERP offered by the Company. The following is a summary of these costs in each period (in thousands):



	Quarter				Year-to-Date
	July 8, 2012		July 10, 2011		July 8, 2012		July 10, 2011
Enhanced pension benefits	$	6,167	$	—	$	6,167	$	—
Severance costs	3,972		—		5,497		—
Other	1,145		—		1,145		—
	$	11,284	$	—	$	12,809	$	—

Refer to Note 7, Retirement Plans, for further information regarding the costs associated with enhanced pension benefits. Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows in each period (in thousands):



	Quarter					Year-to-Date
	July 8, 2012			July 10, 2011		July 8, 2012			July 10, 2011
Balance at beginning of period	$	1,525		$	—	$	—		$	—
Additions	3,972			—		5,497			—
Cash payments	(2,826		)	—		(2,826		)	—
Balance at end of quarter	$	2,671		$	—	$	2,671		$	—

As part of the ongoing review of our organization structure, we expect to incur additional charges related to this activity; however, we are unable to reasonably estimate the additional costs at this time.