Facility Action Charges, Net

6 Months Ended

Aug. 15, 2011

Facility Action Charges, Net

Facility Action Charges, Net

NOTE 12 — FACILITY ACTION CHARGES, NET

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

	Successor								Predecessor
	Twelve Weeks Ended August 15, 2011			Twenty-Eight Weeks Ended August 15, 2011			Four Weeks Ended August 9, 2010		Eight Weeks Ended July 12, 2010			Twenty-Four Weeks  Ended July 12, 2010
Estimated liability for new restaurant closures	$	—		$	133		$	—	$	—		$	363
Adjustments to estimated liability for closed restaurants		72			564			34		(13	)		60
Impairment of assets classified as held for sale		—			—			—		—			156
Impairment of assets classified as held and used		192			250			—		158			161
(Gain) loss on sales of restaurants and surplus properties, net		(460	)		(758	)		62		(486	)		(348	)
Amortization of discount related to estimated liability for closed restaurants		126			252			41		68			198
	$	(70	)	$	441		$	137	$	(273	)	$	590

During the twelve weeks and twenty-eight weeks ended August 15, 2011, we received cash of $250 and $500, respectively, and recorded a gain of $250 and $421, respectively, (included above) in connection with an agreement to terminate a restaurant lease.

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 categories:

	Successor						Predecessor
	Twelve Weeks Ended August 15, 2011		Twenty-Eight Weeks Ended August 15, 2011		Four Weeks Ended August 9, 2010		Eight Weeks Ended July 12, 2010		Twenty-Four Weeks  Ended July 12, 2010
Property and equipment:
Carl's Jr.	$	—	$	—	$	—	$	46	$	49
Hardee's		192		250		—		98		254
		192		250		—		144		303
Property under capital leases:
Carl's Jr.		—		—		—		14		14
Hardee's		—		—		—		—		—
		—		—		—		14		14
Total:
Carl's Jr.		—		—		—		60		63
Hardee's		192		250		—		98		254
	$	192	$	250	$	—	$	158	$	317