Discontinued Operations

12 Months Ended

Dec. 29, 2013

Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract]

Discontinued Operations

Discontinued Operations

On May 7, 2012, the Company completed the Spin-off of Fiesta, a former wholly owned subsidiary of Carrols which included the Pollo Tropical and Taco Cabana restaurant brands, through the distribution in the form of a pro rata dividend of all of Fiesta's issued and outstanding common stock to Carrols Restaurant Group’s stockholders whereby each stockholder of Carrols Restaurant Group on April 26, 2012 received one share of Fiesta’s common stock for every one share of the Company's common stock held. As a result of the Spin-off, Fiesta is an independent public company whose common stock is traded on The NASDAQ Global Select Market under the symbol “FRGI.” At the date of the Spin-off, the dividend of Fiesta common stock to the Company's stockholders resulted in a distribution of net assets of $9.9 million to Fiesta. Carrols made additional distributions of $0.9 million in the fourth quarter of 2012 related to the allocation to Fiesta of estimated 2012 net operating loss carryforwards and $0.7 million in 2013 related to income taxes for the periods prior to the Spin-off.

As a result of the Spin-off, the Company had no remaining Fiesta assets and liabilities as of December 30, 2012. The consolidated statements of operations and consolidated statements of cash flows present Fiesta’s businesses for the period from January 3, 2011 through May 7, 2012 as discontinued operations.

The consolidated statements of operations and comprehensive loss for periods through the completion of the Spin-off included certain general and administrative expenses associated with administrative support to Fiesta for executive management, information systems and certain accounting, legal and other administrative functions, which had previously been allocated to Fiesta. The allocation of certain of these expenses do not qualify for classification within discontinued operations, and therefore are included as general and administrative expenses within continuing operations. In addition, certain expenses directly related to the Spin-off which had previously been allocated to both the Company and Fiesta have been included in discontinued operations in their entirety.

The following table details amounts associated with the Spin-off which have been reported in discontinued operations:

	December 30, 2012			January 1, 2012
Revenues	$	175,364		$	474,968
Income (loss) from discontinued operations before income taxes	(625		)	17,591
Net income (loss) from discontinued operations	$	(72	)	$	11,742

In connection with the Spin-off, on April 24, 2012 Carrols Restaurant Group and Carrols entered into several agreements with Fiesta that govern the Company’s post Spin-off relationship with Fiesta, including a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement and Transition Services Agreement. Amounts earned by Carrols under the Transition Services Agreement were $3.4 million and $3.8 million during the years ended December 29, 2013 and December 30, 2012, respectively.