
6.	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 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
Restructuring costs	$	7,744	$	10	$	7,744	$	29
Costs of closed restaurants (primarily lease obligations) and other	914		886		2,489		2,645
Accelerated depreciation	673		2,610		1,531		4,749
Losses on the disposition of property and equipment, net	637		228		2,283		580
Restaurant impairment charges	551		24		551		65
	$	10,519	$	3,758	$	14,598	$	8,068

Restructuring costs — Restructuring charges in the third quarter of 2016 are the result of a plan to reduce our general and administrative costs. This plan includes a comprehensive review of our organizational structure, with management identifying cost saving initiatives from workforce reductions, relocation of our Qdoba corporate support center, refranchising initiatives, and information technology consolidation across both brands. Charges consist primarily of employee severance pay and facility closing costs.

The following is a summary of our restructuring costs in both periods of 2016 (in thousands):



Employee severance and related costs	$	6,487
Facility closing costs	847
Other	410
	$	7,744

Approximately $1.8 million and $4.4 million of the 2016 restructuring costs are related to our Jack in the Box and Qdoba restaurant operating segments, respectively, and approximately $1.5 million is related to shared services functions. We currently expect to incur $10.0 million to $13.0 million in pre-tax charges in connection with our restructuring plan during fiscal 2016. At this time, we are unable to estimate additional charges to be incurred subsequent to 2016.

As of July 3, 2016, $4.6 million in accrued severance costs are included in accrued liabilities.

Restaurant closing costs — Costs of closed restaurants primarily consist of future lease commitments and expected ancillary costs, net of anticipated sublease rentals. Accrued restaurant closing costs, included in accrued liabilities and other long-term liabilities, changed as follows during 2016 (in thousands):



Balance as of September 27, 2015	$	9,707
Additions	310
Adjustments (1)	707
Interest expense	1,084
Cash payments	(4,044		)
Balance as of July 3, 2016 (2)	$	7,764

___________________________


(1)	Adjustments relate primarily to revisions of certain sublease and cost assumptions. Our estimates 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.


(2)	The weighted average remaining lease term related to these commitments is approximately five years.

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. In 2016 and 2015, accelerated depreciation primarily relates to expenses at our Jack in the Box company-operated restaurants for exterior facility enhancements and the replacement of technology equipment, and in 2015, the replacement of beverage equipment. 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.

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

Restaurant 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 2016 and 2015 were not material to our condensed consolidated financial statements.