XML 27 R26.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Summary Of Significant Accounting Policies (Tables)
12 Months Ended
Jul. 29, 2011
Summary Of Significant Accounting Policies [Abstract]  
Schedule of estimated useful lives of assets
Property and equipment – Property and equipment are stated at cost.  For financial reporting purposes, depreciation and amortization on these assets are computed by use of the straight-line and double-declining balance methods over the estimated useful lives of the respective assets, as follows:
 
Years
Buildings and improvements
30-45
Buildings under capital leases
15-25
Restaurant and other equipment
2-10
Leasehold improvements
1-35
Schedule of swapped portion of outstanding debt or notional amount of interest rate swap
The swapped portion of the outstanding debt or notional amount of the interest rate swap is as follows:

From August 3, 2006 to May 2, 2007
$                  525,000
From May 3, 2007 to May 5, 2008
650,000
From May 6, 2008 to May 4, 2009
625,000
From May 5, 2009 to May 3, 2010
600,000
From May 4, 2010 to May 2, 2011
575,000
From May 3, 2011 to May 2, 2012
550,000
From May 3, 2012 to May 3, 2013
525,000
Assumptions used in determining the fair value of each option award
The fair value of each option award is estimated on the date of grant using a binomial lattice-based option valuation model, which incorporates ranges of assumptions for inputs as shown in the following table.  The assumptions are as follows:

·
The expected volatility is a blend of implied volatility based on market-traded options on the Company's common stock and historical volatility of the Company's stock over the contractual life of the options.
·
The Company uses historical data to estimate option exercise and employee termination behavior within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes.  The expected life of options granted is derived from the output of the option valuation model and represents the period of time the options are expected to be outstanding.
·
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the contractual life of the option.
·
The expected dividend yield is based on the Company's current dividend yield as the best estimate of projected dividend yield for periods within the contractual life of the option.

 
Year Ended
 
July 29,
July 30,
July 31,
 
2011
2010
2009
Dividend yield range
1.7%
2.5%
2.59%- 5.35%
Expected volatility
40%
47%
43% - 61%
Risk-free interest rate range
0.3%- 4.6%
0.4%- 5.1%
0.5%- 5.4%
Expected term (in years)
6.6*
6.8
6.7 – 6.9
 
Additionally, for the PBSU's granted in 2011, the Monte-Carlo simulation model used the average prices for the 60-consecutive calendar days from July 1, 2010 to August 31, 2010.

   
Year Ended
 
   
July 29, 2011
 
     
Dividend yield range
  1.6% 
Expected volatility
  43% 
Risk-free interest rate
  0.8% 
Effect of reclassifications on store operating income
The following table presents the effect of these reclassifications on store operating income at:

   
2010
  
2009
 
        
Store operating income as previously reported
 $310,550  $262,438 
Impairment and store dispositions, net
  2,800   2,088 
Store operating income as currently reported
 $313,350  $264,526 

The following table presents the effect of these reclassifications on store operating income for the quarters ended October 29, 2010 (“1st Quarter 2011”) and January 28, 2011 (“2nd Quarter 2011”):

   
1st Quarter 2011
  
2nd Quarter 2011
 
        
Store operating income as previously reported
 $82,292  $85,540 
Impairment and store dispositions, net
  83   1 
Store operating income as currently reported
 $82,375  $85,541 
Assumptions used in determining the fair value of PBSU award
The fair value of the PBSUs is determined using the Monte-Carlo simulation model, which simulates a range of possible future stock prices and estimates the probabilities of the potential payouts.  This model incorporates several key assumptions that are similar to those used to value stock options.  Those inputs include expected volatility, risk-free rate of return and expected dividend yield and are included in the following table.  Additionally, for the PBSU's granted in 2011, the Monte-Carlo simulation model used the average prices for the 60-consecutive calendar days from July 1, 2010 to August 31, 2010.

   
Year Ended
 
   
July 29, 2011
 
     
Dividend yield range
  1.6% 
Expected volatility
  43% 
Risk-free interest rate
  0.8%