Quarterly report pursuant to Section 13 or 15(d)

Other Charges

v3.21.1
Other Charges
 4 Months Ended
Apr. 18, 2021
Other Income and Expenses [Abstract]  
Other Charges (Gains) Other Charges
Other charges consist of the following (in thousands):
Sixteen Weeks Ended
April 18, 2021 April 19, 2020
Restaurant closure and refranchising costs $ 2,447  $ 1,406 
Restaurant asset impairment 1,242  15,498 
Litigation contingencies 1,085  4,500 
COVID-19 related costs 569  198 
Board and stockholder matter costs 128  1,482 
Goodwill impairment —  95,414 
Severance and executive transition —  881 
Other charges $ 5,471  $ 119,379 
Restaurant closure and refranchising costs include the ongoing restaurant operating costs of the Company-owned restaurants that remained temporarily closed due to the COVID-19 pandemic, as well as any costs incurred for permanently closed restaurants including lease termination costs.
The Company recognized non-cash impairment charges related to restaurant assets at one and 24 Company-owned restaurants during the sixteen weeks ended April 18, 2021 and April 19, 2020 resulting from quantitative impairment analyses.
Litigation contingencies include legal settlement costs accrued within the period presented related to class action employment cases and other employment matters.
COVID-19 related costs include the costs of purchasing personal protective equipment for restaurant Team Members and Guests and emergency sick pay provided to restaurant Team Members during the pandemic.
Board and stockholder matters costs were primarily related to the recruitment and appointment of a new board member in the first quarter of 2021 and to the recruitment and appointment of a new board member, and other board and stockholder matters in the first quarter of 2020.
We performed a goodwill impairment analysis during the first quarter of 2020 resulting in full impairment of our goodwill balance. The goodwill impairment was measured as the amount by which the carrying amount of the reporting unit, including goodwill, exceeded its fair value.
Severance and executive transition in 2020 primarily relates to severance costs associated with the reduction in force of restaurant support center Team Members