Impairment, Disposition Of Property And Equipment, Restaurant Closing Costs And Restructuring (Tables)

9 Months Ended

Jul. 07, 2013

Restructuring Cost and Reserve [Line Items]

Schedule of Impairment and Disposal Costs Included in Impairment and Other Charges

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

Restaurant Closing Costs

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.

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]

Restaurant Closing Costs

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.

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