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

9 Months Ended

Jul. 05, 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
	July 5, 2015		July 6, 2014		July 5, 2015		July 6, 2014
Accelerated depreciation	$	2,610	$	152	$	4,749	$	1,302
Restaurant impairment charges	24		146		65		326
Losses on the disposition of property and equipment, net	228		491		580		1,042
Costs of closed restaurants (primarily lease obligations) and other	886		318		2,645		1,613
Restructuring costs	10		561		29		8,350
	$	3,758	$	1,668	$	8,068	$	12,633

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. In the third quarter of 2015, we recognized a $2.2 million charge related to the replacement of our beverage equipment at Jack in the Box restaurants.

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 were not material and primarily relate to 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 consist of future lease commitments, net of anticipated sublease rentals and expected ancillary costs related to our Jack in the Box restaurant operations. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities, changed as follows in 2015 (in thousands):



Balance as of September 28, 2014	$	13,173
Adjustments (1)	2,141
Cash payments	(4,760		)
Balance as of July 5, 2015	$	10,554

___________________________

(1) Adjustments relate primarily to revisions to certain sublease and cost assumptions. The estimates we make related to our future lease obligations, primarily the sublease income we anticipate, are subject to a high degree of judgment and may differ from actual sublease income due to changes in economic conditions, desirability of the sites and other factors.

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
	July 5, 2015		July 6, 2014		July 5, 2015		July 6, 2014
Severance costs	$	10	$	468	$	29	$	1,864
Other	—		93		—		6,486
	$	10	$	561	$	29	$	8,350

In 2014, other costs represents an 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
	July 5, 2015		July 6, 2014		July 5, 2015		July 6, 2014
Accelerated depreciation	$	2,610	$	152	$	4,749	$	1,302
Restaurant impairment charges	24		146		65		326
Losses on the disposition of property and equipment, net	228		491		580		1,042
Costs of closed restaurants (primarily lease obligations) and other	886		318		2,645		1,613
Restructuring costs	10		561		29		8,350
	$	3,758	$	1,668	$	8,068	$	12,633

Schedule of Restructuring and Related Costs



	Quarter				Year-to-date
	July 5, 2015		July 6, 2014		July 5, 2015		July 6, 2014
Severance costs	$	10	$	468	$	29	$	1,864
Other	—		93		—		6,486
	$	10	$	561	$	29	$	8,350

Contract Termination [Member]

Restructuring Cost and Reserve [Line Items]

Restaurant Closing Costs



Balance as of September 28, 2014	$	13,173
Adjustments (1)	2,141
Cash payments	(4,760		)
Balance as of July 5, 2015	$	10,554

___________________________

(1) Adjustments relate primarily 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 accrued liabilities and other long-term liabilities and changed as follows in 2015 (in thousands):



Balance as of September 28, 2014	$	5,737
Adjustments	3,853
Cash payments	(5,225		)
Balance as of July 5, 2015	$	4,365