XML 35 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Purchase And Sale Of Assets
12 Months Ended
Jan. 30, 2012
Purchase And Sale Of Assets [Abstract]  
Purchase And Sale Of Assets

NOTE 6 — PURCHASE AND SALE OF ASSETS

Purchase of Restaurant Assets

During fiscal 2012, we purchased three Hardee's restaurants from one of our franchisees for the aggregate purchase price consideration of $1,500, which was reduced by the settlement of certain pre-existing liabilities, resulting in a net purchase price consideration of $1,207. As a result of this transaction, we recorded property and equipment (including capital lease assets) of $109, identifiable intangible assets of $85 and capital lease obligations of $55, resulting in $1,068 of additional goodwill in our Hardee's operating segment.

During fiscal 2010, we purchased two Carl's Jr. restaurants from two of our franchisees for $1,041. As a result of these transactions, we recorded inventories of $15, property and equipment of $122, identifiable intangible assets of $3, and goodwill of $901 in our Carl's Jr. operating segment.

Sale of Assets

On July 2, 2010, pursuant to an Asset Purchase Agreement ("APA") with MBM, we sold to MBM our Carl's Jr. distribution center assets located in Ontario, California and Manteca, California ("Distribution Center"). In connection with the APA, we received total consideration of $21,195 from MBM for the Distribution Center assets, which included inventory, fixed assets, real property in Manteca, California, and other related assets. Additionally, we entered into sublease agreements with MBM to sublease the facility in Ontario, California, as well as certain leased vehicles and equipment. We will remain principally liable for the lease obligations. We also remain liable for all liabilities incurred prior to the sale, which include workers' compensation claims, employment related matters and litigation, and other liabilities. As a result of the transaction, we recorded a gain of $3,442, which is included in other operating expenses, net in our accompanying Consolidated Statement of Operations for the Predecessor twenty-four weeks ended July 12, 2010.

On July 2, 2010, we and our franchisees entered into distribution agreements with MBM to provide distribution services to our Carl's Jr. and Hardee's restaurants through June 30, 2017.

Related Party Transactions

During fiscal 2010, we sold three company-operated Carl's Jr. restaurants and related real property with a net book value of $965 to a former executive and new franchisee. In connection with this transaction, we received aggregate consideration of $1,300, including $100 in initial franchise fees, which is included in franchised restaurants and other revenue, and we recognized a net gain of $233, which is included in facility action charges, net, in our accompanying Consolidated Statement of Operations for fiscal 2010, in our Carl's Jr. operating segment. As part of this transaction, the franchisee acquired the real property and/or subleasehold interest in the real property related to the restaurant locations.