Impairment Of Long-Lived Assets

12 Months Ended

Aug. 31, 2013

Impairment Of Long-Lived Assets [Abstract]

Impairment Of Long-Lived Assets

3.  Impairment of Long-Lived Assets

During the fiscal years ended August 31, 2013, 2012 and 2011, the Company identified impairments for certain brand technology assets, surplus property and drive-in assets through regular quarterly reviews of long-lived assets.  The recoverability of Company Drive-Ins is assessed by estimating the undiscounted net cash flows expected to be generated over the remaining life of the Company Drive-Ins.  This involves estimating same-store sales and margins for the cash flow periods.  When impairment exists, the carrying value of the asset is written down to fair value.   

The Company’s assessment in fiscal year 2013 resulted in provisions for impairment totaling $1.8 million.  Of this total, $1.6 million related to the write-off of assets associated with a change in the vendor providing technology for the Sonic system’s new point-of-sale technology.  The remaining $0.2 million reflects reducing the carrying amount of surplus properties to fair value.  

In fiscal years 2012 and 2011 the Company recorded $0.8 millionin provisions for impairment resulting from the assessment of surplus properties in both years and properties leased to franchisees in fiscal year 2011.  These write-downs were completed to reduce the carrying amount of these properties to fair value.