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Asset Impairment, Net
9 Months Ended
Feb. 22, 2015
Asset Impairment Charges [Abstract]  
Asset Impairment, Net
Asset Impairment, Net
During the quarter and nine months ended February 22, 2015, we recognized long-lived asset impairment charges of $4.4 million ($2.7 million net of tax) and $51.0 million ($33.4 million net of tax), respectively. Impairment charges resulted primarily from the carrying value of restaurant assets exceeding the estimated fair market value, which is based on projected cash flows. Of the total impairments, $0.3 million and $34.1 million for the quarter and nine months ended February 22, 2015, respectively, related to restaurant impairments. During the nine months ended February 22, 2015, management identified nine Olive Garden locations and three Seasons 52 locations where the estimated useful life was significantly shortened based on a re-evaluation of expected lease renewals, leading to significant decreases in projected cash flows. We also recognized impairments of assets related to the expected disposal of excess land parcels, our lobster aquaculture project and a corporate airplane in connection with the closure of our aviation department during the nine months ended February 22, 2015. During the quarter and nine months ended February 23, 2014, we recognized long-lived asset impairment charges of $0.0 million and $1.2 million ($0.7 million net of tax), respectively, primarily from the carrying value of restaurant assets exceeding the estimated fair market value, which is based on projected cash flows. These costs are included in asset impairments, net as a component of earnings from continuing operations in the accompanying consolidated statements of earnings. Impairment charges were measured based on the amount by which the carrying amount of these assets exceeded their fair value. Fair value is generally determined based on appraisals or sales prices of comparable assets and estimates of future cash flows.