IMPAIRMENT AND OTHER CHARGES, NET

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



	2017		2016		2015
Restructuring costs	$	8,837	$	10,067	$	29
Costs of closed restaurants and other	7,237		3,431		3,592
Losses on disposition of property and equipment, net (1)	3,635		2,801		1,319
Restaurant impairment charges	3,096		544		557
Accelerated depreciation	2,336		2,214		6,260
	$	25,141	$	19,057	$	11,757

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(1)	In 2015, losses on the disposition of property and equipment were offset by $0.9 million in gains from the resolution of one eminent domain matter involving a Jack in the Box restaurant.

Restructuring costs — Restructuring charges in fiscal years 2017 and 2016 are the result of a plan that management initiated in fiscal 2016 to reduce our general and administrative costs. This plan includes cost saving initiatives from workforce reductions, relocation and consolidation of our Qdoba corporate support center, refranchising initiatives, and the consolidation of information technology across both brands. Further, during 2017, we retained Morgan Stanley & Co. LLC to assist our Board of Directors in its evaluation of potential alternatives with respect to Qdoba (the “Qdoba Evaluation”), as well as other ways to enhance shareholder value, and these costs are also included in 2017 restructuring charges.

The following is a summary of the costs incurred in connection with these activities during each fiscal year (in thousands):



	2017		2016		2015
Qdoba Evaluation costs (1)	$	5,285	$	—	$	—
Facility closing costs (2)	2,052		2,004		—
Employee severance and related costs	731		7,583		29
Other (3)	769		480		—
	$	8,837	$	10,067	$	29

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(1)	Qdoba Evaluation costs are primarily comprised of legal services, third party consulting and audit fees.

(2)

In 2017, facility closing costs include $2.0 million in costs related to the exit and early lease termination of the Qdoba corporate support center, which was offset by $0.9 million due to the reversal of the related tenant improvement allowance, and $0.3 million due to the reversal of the related straight-line rent expense. In 2017, facility closing costs also includes $1.2 million of accelerated depreciation related to the relocation of our Qdoba corporate support center.


(3)	In 2017, other primarily represents employee relocation costs and moving expenses related to the relocation of our Qdoba corporate support center. In 2016, other primarily represents employee relocation costs.

The following is a summary of our restructuring costs by operating segment in each fiscal year (in thousands):



	2017		2016		2015
Qdoba restaurant operations (1)	$	5,206	$	1,991	$	—
Shared services (2)	3,423		1,764		29
Jack in the Box restaurant operations	208		6,312		—
	$	8,837	$	10,067	$	29

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(1)	In 2017, Qdoba restaurant operations includes $2.3 million of Qdoba Evaluation costs.


(2)	Shared service functions consist primarily of accounting/finance, information technology, human resources, audit services, legal, tax and treasury. In 2017, costs include $3.0 million of Qdoba Evaluation costs.

At this time, we are unable to estimate additional charges to be incurred.

Total accrued severance costs related to our restructuring activities are included in accrued liabilities and changed as follows during fiscal 2017 (in thousands):



Balance as of October 2, 2016	$	4,198
Additions	731
Cash payments	(4,281		)
Balance as of October 1, 2017	$	648

Restaurant closing costs — Costs of closed restaurants in 2017 primarily include costs related to canceled capital projects, primarily new site development, and future lease commitments and expected ancillary cost, net of anticipated sublease rentals. Cost of closed restaurants in 2016 and 2015 primarily consist of future lease commitment charges 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 fiscal 2017 (in thousands):



Balance as of October 2, 2016	$	7,231
Interest expense	1,594
Adjustments (1)	959
Additions	549
Cash payments	(4,130		)
Balance as of October 1, 2017 (2) (3)	$	6,203

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(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 four years.


(3)	This balance excludes $2.9 million of restaurant closing costs that are included in accrued liabilities and other long-term liabilities, which were initially recorded as losses on the sale of company-operated restaurants upon sale to Jack in the Box franchisees in prior years.

The future minimum lease payments and receipts for the next five fiscal years and thereafter are included in the amounts disclosed in Note 8, Leases. Our obligations under the leases included in the above table expire at various dates between fiscal 2018 and 2029.

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. In 2017, restaurant impairment charges included $2.4 million related to the impairment of three underperforming Qdoba restaurants which are currently held for use, and $0.7 million in charges for Qdoba furniture and equipment resulting from new restaurant design changes. Impairment charges in 2016 and 2015 were not material to our consolidated financial statements.

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 fiscal 2017, accelerated depreciation primarily relates to Qdoba and Jack in the Box restaurant remodels, as well as the anticipated closure of three Jack in the Box and three Qdoba company-operated restaurants. In fiscal 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 fiscal 2015 it also includes the replacement of beverage equipment.