Discontinued Operations

12 Months Ended

Dec. 25, 2011

Discontinued Operations [Abstract]

Discontinued Operations

(14) Discontinued Operations

During the third quarter of fiscal year 2007, the Company was notified that the replacement tenant in the Manhattan-UN, New York location was placed in default by the landlord and as a result, the Company resumed lease payments with respect to this property during the third quarter of fiscal year 2008. Payments will equal $0.6 million in the aggregate per fiscal year through September 2016. The Company entered into a sublease agreement in April 2011, in order to recover some of the amounts due under the remaining lease term. As of December 25, 2011, the Company had recorded a contingent lease liability of $1.1 million related to this property. The Company accounted for the exit costs in accordance with the provisions of "Exit or Disposal Cost Obligations," FASB ASC Topic 420 (Topic 420), which requires that such costs be expensed in the periods whereby such costs are incurred. All of the losses incurred are included in discontinued operations in the accompanying consolidated statements of income.

During the second quarter of fiscal year 2009, the Company made the decision to close the Company-owned Ruth's Chris Steak House restaurant in Naples, Florida. During the fourth quarter of fiscal year 2010, the Company negotiated a lease termination with the landlord. The Company does not expect to incur significant expenses related to this location in the future. All gains and losses incurred with respect to this location are included in discontinued operations in the accompanying consolidated statements of income.

In June 2011, the Company closed the Ruth's Chris Steak House located in Santa Barbara, California. As the closing of this restaurant coincided with the termination of the lease agreement, the Company does not expect to incur significant expenses related to this location in the future. The results of operations with respect to this location are included in discontinued operations in the accompanying consolidated statements of income.

In October 2011, the Company closed the Mitchell's Fish Market located in Glenview, Illinois. As the closing of this restaurant coincided with the termination of the lease agreement, the Company does not expect to incur significant expenses related to this location in the future. The results of operations with respect to this location are included in discontinued operations in the accompanying consolidated statements of income.

The Company accounts for its closed restaurants in accordance with the provisions of Topic 360-10. Therefore, when a restaurant is closed, and the restaurant is either held for sale or abandoned, the restaurant's operations are eliminated from the ongoing operations. Accordingly, the operations of such restaurants, net of applicable income taxes, are presented as discontinued operations and prior period operations of such restaurants, net of applicable income taxes, are reclassified. The loss on discontinued operations for fiscal year 2010 included a $1.1 million charge for a change in estimate of lease exit costs. Discontinued operations for fiscal year 2011 included a $0.4 million benefit for a change in estimate of lease exit costs.

Discontinued operations consist of the following:

	Fiscal Year
	2009			2010			2011
Revenues	$	5,412		$	4,649		$	3,005
Income (loss) before income tax	$	(2,011	)	$	(1,308	)	$	640
Income (loss) from operations of discontinued restaurants, net of income tax benefit	$	(1,132	)	$	(853	)	$	458