Quarterly report pursuant to Section 13 or 15(d)

Other Charges

v3.21.2
Other Charges
 9 Months Ended
Oct. 03, 2021
Other Income and Expenses [Abstract]  
Other Charges Other Charges
Other charges consist of the following (in thousands):
Twelve Weeks Ended Forty Weeks Ended
October 3, 2021 October 4, 2020 October 3, 2021 October 4, 2020
Restaurant closure costs $ 1,102  $ 3,982  $ 5,301  $ 12,990 
Asset impairment —  —  1,357  20,779 
Litigation contingencies 160  —  1,330  4,500 
COVID-19 related costs 299  430  1,112  1,279 
Board and stockholder matter costs —  4  128  2,453 
Goodwill impairment —  —  —  95,414 
Severance and executive transition —  —  —  881 
Other charges $ 1,561  $ 4,416  $ 9,228  $ 138,296 
Restaurant closure costs represent costs incurred for permanently closed restaurants, including lease termination costs, as well as the ongoing restaurant operating costs of Company-owned restaurants that remained temporarily closed due to the COVID-19 pandemic.
During the forty weeks ended October 3, 2021, Asset impairment primarily related to the impairment of long-lived assets at one Company-owned restaurant with a carrying value of $3.8 million (including right of use assets), recognizing an impairment expense of $1.2 million related to the net book value of long-lived restaurant assets for this restaurant. During the twelve and forty weeks ended October 4, 2020 the Company recognized non-cash impairment charges related to restaurant assets at two and thirty-six Company-owned restaurants, respectively, 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 new board members, and other board and stockholder matters.
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 in April 2020.