Discontinued Operations

9 Months Ended

Oct. 02, 2011

Discontinued Operations [Abstract]

Discontinued Operations

 

B.  DISCONTINUED OPERATIONS

During fiscal year 2010, the Company closed 24 underperforming restaurants: 14 O'Charley's restaurants and 10 Ninety Nine restaurants.  The decision to close these restaurants was the result of an extensive review of the Company's restaurant portfolio that examined each restaurant's recent and historical financial and operating performance, its position in the marketplace, and other operating considerations. Given the geographic location of certain restaurants and in accordance with relevant GAAP, nine of these restaurants were considered discontinued operations.  Due to the consideration of these nine restaurants as discontinued operations, prior-year revenues and expenses have been revised in the accompanying unaudited interim consolidated statements of operations.

During the 12 week period ended October 2, 2011, the Company recorded a $0.1 million loss from discontinued operations, net of taxes, which represents exit and disposal costs, partly offset by a net gain on the sale of the remaining assets from one Ninety Nine restaurant location. During the 12 week period ended October 3, 2010, the Company recorded a $0.4 million loss from discontinued operations, net of taxes, which represents net loss from operations. During the 40 week period ended October 2, 2011, the Company recorded a $0.3 million loss from discontinued operations, net of taxes, which represents $0.6 million of exit and disposal costs, partly offset by a $0.3 million gain on the sale of an O'Charley's restaurant location as well as a minimal net gain on the sale of the remaining assets from two O'Charley's restaurant locations and one Ninety Nine restaurant location. During the 40 week period ended October 3, 2010, the Company recorded a $3.4 million loss from discontinued operations, net of taxes, which represents $2.4 million in asset impairments and a $1.0 million net loss from operations.

The results of discontinued operations for the 12 and 40 week periods ended October 2, 2011 and October 3, 2010 were as follows (in thousands):

		12 Weeks Ended						40 Weeks Ended
		October 2,			October 3,			October 2,			October 3,
		2011			2010			2011			2010
Revenues	$	—		$	3,107		$	—		$	10,662
Loss before income taxes		(59	)		(397	)		(308	)		(3,474	)
Income tax expense (benefit)		—			11			—			(44	)
Net Loss	$	(59	)	$	(408	)	$	(308	)	$	(3,430	)