Impairment of Long-Lived Assets

Our company-owned restaurant impairment losses for the nine months ended September 30, 2012 and for the nine months ended October 2, 2011, predominantly reflect impairment charges on restaurant-level assets resulting from the deterioration in operating performance of certain restaurants, and additional charges for capital improvements in restaurants impaired in prior years which did not subsequently recover.

During the second quarter of 2012, we closed 15 company-owned restaurants in connection with our review of certain underperforming locations. The closing of these restaurants resulted in an impairment charge of $3,270. In addition, we incurred costs related to these restaurant closings of $1,477, primarily for continuing lease obligations, which are included in “Other operating expense, net.”

Also, during the second quarter of 2012, we reclassified our company-owned aircraft as held and used from its previous held-for-sale classification. For the nine months ended September 30, 2012, the Company recorded an impairment charge of $1,628 on the company-owned aircraft. As of September 30, 2012, the carrying value of the aircraft, which reflects current market conditions, approximated its fair value and is included in “Properties.” See Note 13 for information regarding an amended and restated lease agreement for the company-owned aircraft.

These impairment losses, as detailed in the following table, represented the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets.”



	Three Months Ended				Nine Months Ended
	September 30, 2012		October 2, 2011		September 30, 2012		October 2, 2011
Impairment of company-owned restaurants:
Properties	$	—	$	—	$	6,150	$	6,449
Intangible assets	—		—		3		1,813
Aircraft	—		—		1,628		—
Total	$	—	$	—	$	7,781	$	8,262

Arby’s impairment losses for the period from January 3, 2011 through July 3, 2011 were not significant and are included in discontinued operations and are not included in the table above. See Note 2 for more information on discontinued operations.