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Note 3 - Intangible Assets
12 Months Ended
Mar. 03, 2013
Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 3. INTANGIBLE ASSETS


Intangible assets consisted of the following as of the indicated dates:


 

Intangible Assets

 

As of March 3, 2013

As of February 26, 2012

 

Gross Carrying

Amount

Accumulated

Amortization

Gross Carrying

Amount

Accumulated

Amortization

                                 

Franchise Agreements

  $ 2,036,000   $ (1,347,000 )   $ 2,106,000   $ (1,285,000 )

Goodwill

    10,279,000     (1,329,000 )     10,418,000     (1,346,000 )

Total

  $ 12,315,000   $ (2,676,000 )   $ 12,524,000   $ (2,631,000 )

Goodwill and intangibles with indefinite lives are not subject to amortization, but are subject to assessment for impairment whenever there is an indication of impairment or, at least annually as of the Company’s fiscal year end by applying a fair value based test. The Company has five reporting units for the purpose of evaluating goodwill impairment which are based on the geographic market areas of its restaurants. These five reporting units are Youngstown, OH, Parkersburg/Wheeling, WV, Pittsburgh, PA, St Louis, MO and Erie, PA. The Company has performed the annual goodwill impairment tests for fiscal 2013 and 2012 and determined that the fair value of each reporting unit was greater than its carrying value at each date. When a property is sold, the proportion that the sales proceeds of the property bears to the total fair value of the restaurants in the related market area is removed from the goodwill balance of that market.


The Company’s intangible asset amortization expense relating to its franchise agreements was $132,000 and $109,000 for fiscal 2013 and 2012, respectively. The estimated intangible amortization expense for each of the next five years is $105,000 per year.


The decrease in franchise agreements in fiscal 2013 resulted from the write off of agreements for three closed restaurants. The $122,000 decrease in goodwill resulted from the sale of three properties in Pennsylvania.