Discontinued Operations (Tables)

9 Months Ended

Jul. 07, 2013

Restructuring Cost and Reserve [Line Items]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

The following is a summary of our distribution business assets held for sale as of September 30, 2012 (in thousands):

Inventories	$	26,844
Property and equipment, net	3,747
Total assets of discontinued operations	$	30,591

The following is a summary of our distribution business operating results, which are included in discontinued operations for each period (in thousands):

	Quarter					Year-to-Date
	July 7, 2013			July 8, 2012		July 7, 2013			July 8, 2012
Revenue	$	—		$	138,839	$	37,743		$	473,779
Operating loss before income tax benefit	$	(557	)	$	—	$	(6,030	)	$	—

The loss on the sale of the distribution business was not material to our results of operations. The operating loss year-to-date includes $1.9 million for accelerated depreciation of a long-lived asset disposed of upon completion of the transaction, $1.8 million for future lease commitments and $1.2 million primarily related to costs incurred to exit certain vendor contracts. Our liability for lease commitments related to our distribution centers is included in other long-term liabilities and has changed during 2013 as follows (in thousands):

	Quarter			Year-to-Date
Balance at beginning of period	$	2,116		$	697
Additions	—			1,846
Adjustments	29			237
Cash payments	(349		)	(984		)
Balance at end of quarter	$	1,796		$	1,796

Qdoba restaurant closures — During the third quarter of fiscal 2013, we closed 62 Qdoba restaurants (the “2013 Qdoba Closures”). The decision to close these restaurants was based on a comprehensive analysis that took into consideration levels of return on investment and other key operating performance metrics.

Given the proximity of the closed locations to those remaining in operation, we do not expect the majority of cash flows and sales lost from these closures to be recovered. In addition, there will not be any ongoing involvement or significant direct cash flows from the closed stores. Therefore, in accordance with the provisions of ASC 205, Presentation of Financial Statements, the results of operations for the 2013 Qdoba Closures are reported as discontinued operations for all periods presented.

The following is a summary of the unaudited quarterly results of operations for fiscal years 2013 and 2012 related to the 2013 Qdoba Closures (in thousands, except per share data):

	16 Weeks Ended			12 Weeks Ended
	January 20, 2013			April 14, 2013			July 7, 2013
Company restaurant sales	$	11,188		$	8,400		$	8,448
Operating loss before income tax benefit	$	(3,510	)	$	(2,717	)	$	(36,660	)
Net losses	$	(2,165	)	$	(1,675	)	$	(22,608	)
Net losses per share:
Basic	$	(0.05	)	$	(0.04	)	$	(0.52	)
Diluted	$	(0.05	)	$	(0.04	)	$	(0.50	)

	16 Weeks Ended			12 Weeks Ended									52 Weeks Ended
	January 22, 2012			April 15, 2012			July 8, 2012			September 30, 2012			September 30, 2012
Company restaurant sales	$	9,831		$	8,228		$	8,930		$	8,743		$	35,732
Operating loss before income tax benefit	$	(2,547	)	$	(1,838	)	$	(1,643	)	$	(2,299	)	$	(8,327	)
Net losses	$	(1,569	)	$	(1,133	)	$	(1,012	)	$	(1,418	)	$	(5,132	)
Net losses per share:
Basic	$	(0.04	)	$	(0.03	)	$	(0.02	)	$	(0.03	)	$	(0.12	)
Diluted	$	(0.04	)	$	(0.03	)	$	(0.02	)	$	(0.03	)	$	(0.11	)

In 2013, the operating loss recognized includes $22.7 million for asset impairments, $9.8 million for future lease commitments, net of reversals for deferred rent and tenant improvement allowances of $4.3 million, $1.6 million of other exits costs (primarily severance and inventory write-offs) and a $2.6 million net loss from operations in the quarter and $8.8 million year-to-date. We do not expect the remaining costs to be incurred related to this transaction to be material. Our liability for lease commitments related to the 2013 Qdoba closures is included in other long-term liabilities and has changed as follows during the quarter and year-to-date periods ended July 7, 2013 (in thousands):

Balance at beginning of period	$	—
Additions	14,072
Cash payments	(928		)
Balance at end of quarter	$	13,144

Schedule of Restructuring and Related Costs

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

Contract Termination [Member]

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring and Related Costs

Our liability for lease commitments related to the 2013 Qdoba closures is included in other long-term liabilities and has changed as follows during the quarter and year-to-date periods ended July 7, 2013 (in thousands):

Balance at beginning of period	$	—
Additions	14,072
Cash payments	(928		)
Balance at end of quarter	$	13,144