Accounting Pronouncements Not Yet Adopted And Adoption Of New Accounting Pronouncements

4 Months Ended

May 21, 2012

Accounting Pronouncements Not Yet Adopted and Adoption of New Accounting Prounoucements [Abstract]

Accounting Pronouncements Not Yet Adopted And Adoption Of New Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED AND ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS

In September 2011, the FASB updated its guidance on the annual testing of goodwill for impairment to allow companies to first assess qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. If an entity determines, based on qualitative factors, that it is not more likely than not that a reporting unit’s fair value is less than its carrying amount, then it is not required to perform the quantitative two-step goodwill impairment test. This guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The provisions of this guidance apply to CKE Restaurants beginning in fiscal 2013. The adoption of this guidance has not had, and is not expected to have, a material impact on our Condensed Consolidated Financial Statements.