Quarterly report pursuant to Section 13 or 15(d)

Other Charges (Gains), net

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Other Charges (Gains), net
 9 Months Ended
Oct. 02, 2022
Other Income and Expenses [Abstract]  
Other Charges, net Other Charges (Gains), net
Other charges (gains), net consisted of the following (in thousands):
Twelve Weeks Ended Forty Weeks Ended
October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021
Asset impairment $ 2,187  $ —  $ 13,048  $ 1,357 
Gain on sale of restaurant property (9,204) —  (9,204) — 
Executive transition 1,825  —  1,954  — 
Other financing costs 1,022  —  1,392  — 
COVID-19 related charges 123  299  423  1,112 
Restaurant closure costs (gains) (1,570) 1,102  309  5,301 
Closed corporate office, net of sublease income 267  —  267  — 
Litigation contingencies 133  160  47  1,330 
Board and stockholder matter costs —  —  —  128 
Other charges (gains), net $ (5,217) $ 1,561  $ 8,236  $ 9,228 
The Company recognized non-cash impairment charges primarily related to restaurant assets at one and ten Company-owned restaurants during the twelve and forty weeks ended October 2, 2022, respectively, and one Company-owned restaurant for the forty weeks ended October 3, 2021.
During the second quarter of 2022 the Company closed on an agreement to sell a restaurant property that the Company owned and leased back on a short-term basis. The Company collected initial net proceeds from the purchaser-lessor of $3.9 million, which represented a portion of the total consideration received from the sale. The Company did not recognize a sale in the second quarter of 2022 as certain criteria to recognize a sale in accordance with ASC Topic 842, Leases, and ASC Topic 606, Revenue from Contracts with Customers, were not met. During third quarter of 2022, the Company received the remaining proceeds, upon which the lease terminated and the sale transaction was completed, and recognized a $9.2 million gain on the sale of the restaurant property . The initial net proceeds of $3.9 million are included within cash flows from financing activities and the final proceeds received of $8.5 million are included within cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows for the forty weeks ended October 2, 2022.
Executive transition costs include costs associated with transitioning to a new Chief Executive Officer.
Other financing costs include fees related to the entry by the Company into the new Credit Agreement (as defined below) on March 4, 2022 that were not capitalized with the closing of the Credit Facility. See Note 6. Borrowings.
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 related to the COVID-19 pandemic.
Restaurant closure costs (gains) include the ongoing restaurant operating costs of the Company-owned restaurants incurred for permanently closed restaurants and closed restaurant lease termination gains or losses.
Closed corporate office, net of sublease income includes expense and sublease income related to a corporate office facility that was vacated and subleased.
Litigation contingencies during the twelve and forty weeks ended October 2, 2022 include the impact of cash proceeds received by the Company related to certain legal claims. Litigation contingencies during the twelve and forty weeks ended October 2, 2022 and October 3, 2021 include legal settlement costs accrued related to pending or threatened litigation.
Board and stockholder matters costs were primarily related to the recruitment and appointment of a new board member in the first quarter of 2021.