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Fair Value Measurements
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current liabilities approximate their fair values due to their short-term nature. The carrying amounts of borrowings approximate fair value as the line of credit and term borrowings vary with market interest rates and negotiated terms and conditions are consistent with current market rates. The fair value of the Company’s line of credit and term borrowings are measured using Level 2 inputs.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets recognized or disclosed at fair value in the condensed consolidated financial statements on a non-recurring basis include items such as leasehold improvements, property and equipment, operating lease assets, goodwill and other intangible assets. These assets are measured at fair value if determined to be impaired or when acquired.

Upon completion of the first quarter of 2020, due to the impact of the COVID-19 pandemic on its operating results, the Company performed an interim qualitative impairment assessment of goodwill. Based on the qualitative assessment performed, management determined that it is not more likely than not that the Company’s goodwill has been impaired as of March 31, 2020 and, as a result, no impairment charge was recorded in the first quarter of 2020.

Adjustments to the fair value of assets measured at fair value on a non-recurring basis as of March 31, 2020 and April 2, 2019 are discussed in Note 7, Restaurant Impairments, Closure Costs and Asset Disposals.