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

6 Months Ended

Apr. 12, 2015

Restructuring and Related Activities [Abstract]

Impairment Disposition Of Property And Equipment, Restaurant Closing Costs And Resturcturing


	IMPAIRMENT AND OTHER CHARGES, NET

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



	Quarter					Year-to-date
	April 12, 2015			April 13, 2014		April 12, 2015		April 13, 2014
Accelerated depreciation	$	1,387		$	487	$	2,139	$	1,151
Restaurant impairment charges	27			85		41		180
(Gains) losses on the disposition of property and equipment, net	(269		)	262		352		550
Costs of closed restaurants (primarily lease obligations) and other	973			731		1,759		1,295
Restructuring costs	12			7,491		19		7,789
	$	2,130		$	9,056	$	4,310	$	10,965

Accelerated depreciation — When a long-lived asset will be replaced or otherwise disposed of prior to the end of its estimated useful life, the useful life of the asset is adjusted based on the estimated disposal date and accelerated depreciation is recognized. Accelerated depreciation primarily relates to expenses at our Jack in the Box company restaurants for the replacement of technology and beverage equipment in 2015 and restaurant facility enhancement programs in 2014.

Impairment charges — 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 all periods include charges for restaurants we intend to or have closed.

Disposition of property and equipment — Disposal costs primarily relate to gains or losses recognized upon the sale of closed restaurant properties. In 2015, losses on the disposition of property and equipment includes a gain of $0.9 million from the resolution of one eminent domain matter involving a Jack in the Box restaurant.

Costs of closed restaurants — Costs of closed restaurants primarily consists of future lease commitments, net of anticipated sublease rentals and expected ancillary costs. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities, changed as follows in 2015 (in thousands):



	Year-to-date
Balance as of September 28, 2014	$	13,173
Adjustments (1)	1,427
Cash payments	(3,319		)
Balance as of April 12, 2015	$	11,281

___________________________

(1) Adjustments relate primarily to revisions to certain sublease and cost assumptions due to changes in market conditions.

Restructuring costs — Since the beginning of 2012, we have been engaged in efforts to improve our cost structure and identify opportunities to reduce general and administrative expenses as well as improve profitability across both brands. The following is a summary of the costs incurred in connection with these activities (in thousands):



	Quarter				Year-to-date
	April 12, 2015		April 13, 2014		April 12, 2015		April 13, 2014
Severance costs	$	12	$	1,098	$	19	$	1,396
Other	—		6,393		—		6,393
	$	12	$	7,491	$	19	$	7,789

In 2014, other costs represent a $6.4 million impairment charge recognized in the second quarter of fiscal 2014 related to a restaurant software asset we no longer planned to place in service as we integrate certain systems across both of our brands. We may incur additional charges related to our restructuring activities; however, we are unable to make a reasonable estimate at this time.

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 earnings is comprised of the following (in thousands):



	Quarter					Year-to-date
	April 12, 2015			April 13, 2014		April 12, 2015		April 13, 2014
Accelerated depreciation	$	1,387		$	487	$	2,139	$	1,151
Restaurant impairment charges	27			85		41		180
(Gains) losses on the disposition of property and equipment, net	(269		)	262		352		550
Costs of closed restaurants (primarily lease obligations) and other	973			731		1,759		1,295
Restructuring costs	12			7,491		19		7,789
	$	2,130		$	9,056	$	4,310	$	10,965

Schedule of Restructuring and Related Costs



	Quarter				Year-to-date
	April 12, 2015		April 13, 2014		April 12, 2015		April 13, 2014
Severance costs	$	12	$	1,098	$	19	$	1,396
Other	—		6,393		—		6,393
	$	12	$	7,491	$	19	$	7,789

Contract Termination [Member]

Restructuring Cost and Reserve [Line Items]

Restaurant Closing Costs



	Year-to-date
Balance as of September 28, 2014	$	13,173
Adjustments (1)	1,427
Cash payments	(3,319		)
Balance as of April 12, 2015	$	11,281

___________________________

(1) Adjustments relate primarily to revisions to certain sublease and cost assumptions due to changes in market conditions.

Schedule of Restructuring and Related Costs

Our liability for lease commitments related to the 2013 Qdoba Closures is included in accrued liabilities and other long-term liabilities and changed as follows in 2015 (in thousands):



	Year-to-date
Balance as of September 28, 2014	$	5,737
Adjustments	2,185
Cash payments	(4,060		)
Balance as of April 12, 2015	$	3,862