Impairment and other charges, net (Tables)

9 Months Ended

Jul. 07, 2019

Restructuring Cost and Reserve [Line Items]

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

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 7, 2019			July 8, 2018		July 7, 2019			July 8, 2018
Restructuring costs	$	(64	)	$	1,872	$	6,722		$	4,805
Costs of closed restaurants and other	2,010			378		3,259			3,483
Accelerated depreciation	416			538		1,342			912
(Gains) losses on disposition of property and equipment, net (1)	(5,618		)	477		(5,756		)	958
Operating restaurant impairment charges (2)	—			—		—			291
	$	(3,256	)	$	3,265	$	5,567		$	10,449

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(1) In 2019, includes a $0.8 million gain recognized in the second quarter related to an eminent domain transaction and a $5.7 million gain related to a sale of property recognized in the third quarter.

(2)

In 2018, impairment charges relate to our landlord’s sale of a restaurant property to a franchisee.

Restructuring and Related Costs

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

	Quarter					Year-to-date
	July 7, 2019			July 8, 2018		July 7, 2019		July 8, 2018
Employee severance and related costs	$	287		$	1,476	$	5,436	$	2,828
Strategic Alternatives Evaluation (1)	(351		)	376		1,286		1,188
Qdoba Evaluation (2)	—			20		—		788
Other	—			—		—		1
	$	(64	)	$	1,872	$	6,722	$	4,805

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(1) Strategic Alternative Evaluation costs are primarily related to third party advisory services.

(2)

Qdoba Evaluation costs are primarily related to retention compensation and third party advisory services.

Schedule of Restructuring Reserve by Type of Cost

Total accrued severance costs related to our restructuring activities are included in “Accrued liabilities” on our condensed consolidated balance sheets, and changed as follows during 2019 (in thousands):

Balance as of September 30, 2018	$	5,309
Costs incurred	5,946
Accruals released	(605		)
Cash payments	(8,167		)
Balance as of July 7, 2019	$	2,483

Impairment, Disposition, Closing Costs, and Restructuring [Member]

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring Reserve by Type of Cost

The liability for lease termination costs related to closed restaurants, included in “Accrued liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheets, changed as follows during 2019 (in thousands):

Balance as of September 30, 2018	$	3,534
Additions	—
Adjustments (1)	572
Interest expense	1,094
Cash payments	(3,156		)
Balance as of July 7, 2019 (2) (3)	$	2,044

___________________________

(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 4 years.

(3)

This balance excludes $1.7 million of restaurant closing costs that are included in “Accrued liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheets, which were initially recorded as losses on the sale of company-operated restaurants to franchisees.