Facility Action Charges, Net

9 Months Ended

Nov. 05, 2012

Facility Action Charges, Net [Abstract]

Facility Action Charges, Net

FACILITY ACTION CHARGES, NET

The components of facility action charges, net are as follows:

	Twelve Weeks Ended						Forty Weeks Ended
	November 5, 2012			November 7, 2011			November 5, 2012			November 7, 2011
Estimated liability for new restaurant closures	$	—		$	—		$	—		$	133
Adjustments to estimated liability for closed restaurants	20			(103		)	(237		)	420
Impairment of assets to be held and used	—			342			2,525			592
Loss (gain) on disposal of property and equipment	45			(9		)	88			(476		)
Other gains	(33		)	(87		)	(124		)	(337		)
Amortization of discount related to estimated liability for closed restaurants	70			119			280			371
	$	102		$	262		$	2,532		$	703

We evaluate our restaurant-level long-lived assets for impairment whenever events or circumstances indicate that the carrying value of assets may be impaired. We determine whether the assets are recoverable by comparing the undiscounted future cash flows that we expect to generate from their use and disposal to their carrying value. Restaurant-level assets that are not deemed to be recoverable are written down to their estimated fair value, which is determined by assessing the highest and best use of the assets and the amounts that would be received for such assets in an orderly transaction between market participants. The determination of fair value is dependent upon level 3 significant unobservable inputs.

Impairment charges recognized in facility action charges, net were recorded against the following asset category:

	Twelve Weeks Ended				Forty Weeks Ended
	November 5, 2012		November 7, 2011		November 5, 2012		November 7, 2011
Property and equipment:
Carl’s Jr.	$	—	$	—	$	1,195	$	—
Hardee’s	—		342		1,330		592
	$	—	$	342	$	2,525	$	592