Asset Retirement Obligations

12 Months Ended

Dec. 25, 2011

Asset Retirement Obligations [Abstract]

Asset Retirement Obligations

7. Asset Retirement Obligations

The Company has determined that it has obligations under certain of its restaurant leases. Specifically, the Company has the obligation to remove certain assets from its restaurants at the end of the lease term. The following is a breakdown of the activity related to the retirement obligation for the years ended December 25, 2011, December 26, 2010 and December 27, 2009.

	(in thousands)
Asset Retirement Obligation as of December 28, 2008	$	715
Accretion expense on the present-valued liability		30
Property additions requiring recognition of a liability		1
Asset Retirement Obligation as of December 27, 2009	$	746
Accretion expense on the present-valued liability		29
Property additions requiring recognition of a liability		—
Reversal for closed locations		(101	)
Asset Retirement Obligation as of December 26, 2010	$	674
Accretion expense on the present-valued liability		26
Reversal for closed locations		(7	)
Asset Retirement Obligation as of December 25, 2011	$	693

In calculating the present value of the asset retirement obligation, the Company used the 10-year treasury yield plus the margin that the Company pays above LIBOR in its credit agreement. The 10-year treasury yield was 4.4 percent and the spread over LIBOR was 1.3 percent.