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

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



	Quarter				Year-to-Date
	July 7, 2013		July 8, 2012		July 7, 2013		July 8, 2012
Impairment charges	$	501	$	656	$	3,385	$	2,765
Losses on the disposition of property and equipment, net	2,055		884		2,525		3,712
Costs of closed restaurants (primarily lease obligations) and other	733		2,337		1,849		5,270
Restructuring costs	139		11,284		1,294		12,809
	$	3,428	$	15,161	$	9,053	$	24,556

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. Impairment charges in 2013 and in 2012 primarily represent charges to write down the carrying value of underperforming Jack in the Box restaurants and 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 gains or losses recognized upon the sale of closed restaurant properties, and charges from our ongoing re-image and logo program and normal capital maintenance activities. Losses on the disposition of property and equipment, net for the year-to-date period ended July 7, 2013 includes income of $2.4 million from the resolution of two eminent domain matters involving Jack in the Box restaurants.

Restaurant closing costs consist of future lease commitments, net of anticipated sublease rentals and expected ancillary costs, and are included in impairment and other charges, net in the accompanying condensed consolidated statements of operations. Total accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities, changed as follows (in thousands):



	Quarter						Year-to-Date
	July 7, 2013			July 8, 2012			July 7, 2013			July 8, 2012
Balance at beginning of period	$	18,437		$	20,167		$	20,677		$	21,657
Additions	1,285			119			1,285			546
Adjustments	367			1,682			1,105			3,167
Cash payments	(1,480		)	(1,649		)	(4,458		)	(5,051		)
Balance at end of quarter	$	18,609		$	20,319		$	18,609		$	20,319

In fiscal 2013, additions in the quarter and year-to-date periods primarily relate to two Jack in the Box restaurants which were closed in connection with the sale of a market. Refer to Note 4, Summary of Refranchisings, Franchise Development and Acquisitions, for additional information. In fiscal 2012, adjustments primarily relate to revisions to certain sublease and cost assumptions.

Restructuring costs — Since the beginning of 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. The following is a summary of these costs (in thousands):



	Quarter				Year-to-Date
	July 7, 2013		July 8, 2012		July 7, 2013		July 8, 2012
Enhanced pension benefits	$	—	$	6,167	$	—	$	6,167
Severance costs	4		3,972		674		5,497
Other	135		1,145		620		1,145
	$	139	$	11,284	$	1,294	$	12,809

Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows (in thousands):



	Quarter						Year-to-Date
	July 7, 2013			July 8, 2012			July 7, 2013			July 8, 2012
Balance at beginning of period	$	39		$	1,525		$	1,758		$	—
Additions	4			3,972			674			5,497
Cash payments	(15		)	(2,826		)	(2,404		)	(2,826		)
Balance at end of quarter	$	28		$	2,671		$	28		$	2,671

As part of the ongoing review of our organization structure, we expect to incur additional charges related to our restructuring activities; however, we are unable to make a reasonable estimate of the additional costs at this time. Our continuing efforts to lower our cost structure include identifying opportunities to reduce general and administrative costs as well as improve restaurant profitability across both brands.