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Sale-Leaseback Transactions
6 Months Ended
Aug. 13, 2012
Financing Method Sale-Leaseback Transactions [Abstract]  
Sale-Leaseback Transactions
SALE-LEASEBACK TRANSACTIONS

During the twenty-eight weeks ended August 13, 2012, we entered into agreements with independent third parties under which we sold and leased back 2 Carl’s Jr. and 37 Hardee’s restaurant properties. The initial minimum lease terms are 20 years, and the leases include renewal options and right of first offer provisions that, for accounting purposes, constitute continuing involvement with the associated restaurant properties. Due to this continuing involvement, these sale-leaseback transactions are accounted for under the financing method, rather than as completed sales. Under the financing method, we include the sales proceeds received in other long-term liabilities until our continuing involvement with the properties is terminated, report the associated property as owned assets, continue to depreciate the assets over their remaining useful lives, and record the rental payments as interest expense. Closing costs and other fees related to these sale-leaseback transactions are recorded as deferred financing costs and amortized to interest expense over the initial minimum lease term. When and if our continuing involvement with a property terminates and the sale of that property is recognized for accounting purposes, we expect to record a gain equal to the excess of the proceeds received over the remaining net book value of the associated restaurant property and any unamortized deferred financing costs.

During the twenty-eight weeks ended August 13, 2012, we received proceeds of $57,507 and capitalized deferred financing costs of $3,344 in connection with 39 financing method sale-leaseback transactions. During the twenty-eight weeks ended August 15, 2011, we received proceeds of $16,991 and capitalized deferred financing costs of $964 in connection with 11 financing method sale-leaseback transactions.

The cumulative proceeds received in connection with financing method sale-leaseback transactions of $124,961 and $67,454 are included in other long-term liabilities in our accompanying unaudited Condensed Consolidated Balance Sheets as of August 13, 2012 and January 31, 2012, respectively. The net book value of the associated assets, which is included in property and equipment, net of accumulated depreciation and amortization in our accompanying unaudited Condensed Consolidated Balance Sheets, was $91,728 and $48,722 as of August 13, 2012 and January 31, 2012, respectively. With respect to the financing method sale-leaseback transactions, our future minimum cash obligations as of August 13, 2012 are $4,521, $9,041, $9,041, $9,041, $9,215, $9,835 and $153,960 for the period from August 14, 2012 through January 31, 2013, for fiscal 2014, 2015, 2016, 2017, 2018 and thereafter, respectively.