|9 Months Ended|
Oct. 01, 2017
|Other Income and Expenses [Abstract]|
Other charges consist of the following (in thousands):
During second quarter 2017, the Company determined that five Company-owned restaurants, including three restaurants nearing the end of their lease, were impaired and recognized a non-cash impairment charge of $1.6 million. During the twelve and forty weeks ended October 2, 2016, the Company determined that two and eight Company-owned restaurants were impaired and recognized non-cash impairment charges of $3.8 million and $7.7 million. The Company recognized the impairment charges resulting from the continuing and projected future results of these restaurants, primarily through projected cash flows. In first quarter 2016, the Company relocated one restaurant and recognized a $0.8 million asset impairment charge due to the relocation.
In third quarter 2016, the Company closed nine limited-service restaurants that were underperforming relative to Company expectations and recognized $5.5 million of restaurant closure costs, which comprised $3.7 million in fixed asset disposal costs, $1.5 million in charges related to future lease obligations, and immaterial one-time termination benefits, inventory write off costs, and other closure-related costs.
In first quarter 2016, the Company recorded $3.9 million of litigation contingencies for employment-related claims.
The entire disclosure for other income or other expense items (both operating and nonoperating). Sources of nonoperating income or nonoperating expense that may be disclosed, include amounts earned from dividends, interest on securities, profits (losses) on securities, net and miscellaneous other income or income deductions.
Reference 1: http://www.xbrl.org/2003/role/presentationRef