Quarterly report pursuant to Section 13 or 15(d)

Other Charges (Gains), net

v3.23.1
Other Charges (Gains), net
 4 Months Ended
Apr. 16, 2023
Other Income and Expenses [Abstract]  
Other Charges (Gains), net Other Charges (Gains), net
Other charges (gains), net consisted of the following (in thousands):
Sixteen Weeks Ended
April 16, 2023 April 17, 2022
Litigation contingencies
 $ 4,300  $ 1,720 
Severance and executive transition
 1,891  — 
Restaurant closure costs, net
 1,750  949 
Other
 1,062  — 
Asset impairment
 694  2,122 
Closed corporate office costs, net of sublease income
 62  — 
Other financing costs
 —  309 
COVID-19 related charges
 —  207 
Other charges (gains), net $ 9,759  $ 5,307 
Litigation contingencies during the sixteen weeks ended April 16, 2023 and April 17, 2022 represent reserves for various in progress legal matters.
Severance and executive transition costs include one-time termination benefits related to a reduction in force of Team Members and costs associated with changes in leadership positions as a result of our strategic pivot and are accounted for in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. The Company expects to make the remaining payments related to these benefits in 2023.
The Company expects to incur a total of approximately $5.0 million in termination benefits, of which it has incurred a cumulative total of $4.4 million through April 16, 2023. Approximately $1.5 million in one-time termination benefits was incurred and recorded in Other charges in the Consolidated Statements of Operations and Comprehensive Loss during the sixteen weeks ended April 16, 2023. A reconciliation of our termination benefits liability, which is included in Accrued liabilities and other current liabilities in our Condensed Consolidated Balance Sheets is as follows:
Termination Benefits
Balance as of December 25, 2022
 $ 2,505 
Charges 1,476 
Cash Payments (2,788)
Balance as of April 16, 2023
 $ 1,193 
Restaurant closure costs (gains) include the ongoing restaurant operating costs of the Company-owned restaurants incurred for closed restaurants and closed restaurant lease termination gains or losses.
Other includes non-cash charges primarily related to terminated capital projects, disposals, and lease terminations.
The Company recognized non-cash impairment charges related to subleasing additional space at the Company's closed corporate office during the sixteen weeks ended April 16, 2023. The Company recognized non-cash impairment charges related to restaurant assets at three Company-owned restaurants for the sixteen weeks ended April 17, 2022.
Closed corporate office, net of sublease income includes expense and sublease income related to a corporate office facility that was vacated and subleased.
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.