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&lt;p style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt;"&gt;&lt;b&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;Note 4 &amp;#8212; Asset Impairments&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="TEXT-ALIGN: justify; TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;In accordance with FASB Accounting Standards Codification Topic 360 (ASC Topic 360), &lt;i&gt;Property, Plant&amp;#160;&amp;amp; Equipment,&lt;/i&gt; we evaluate possible impairments at the individual restaurant level periodically and record an impairment loss whenever we determine impairment factors are present. We consider a history of poor financial operating performance to be the primary indicator of potential impairment for individual restaurant locations. We determine whether a restaurant location is impaired based on expected undiscounted cash flows, generally for the remainder of the lease term, and then determine the impairment charge based on discounted cash flows for the same period. Restaurants are not considered for impairment during the period before they enter the comparable restaurant base, unless specific circumstances warrant otherwise.&lt;/font&gt;&lt;/p&gt;
&lt;p style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt;" align="center"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;During the three and six months ended July&amp;#160;1, 2013, we recorded asset impairment and disposal charges of approximately $0.4 million and $0.7 million, respectively. We did not record any asset impairment and disposal charges during the three and six months of fiscal 2012.&lt;/font&gt;&lt;/p&gt;
&lt;p style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
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