Impairment and Disposal of Assets, Net

3 Months Ended

Aug. 30, 2015

Asset Impairment Charges [Abstract]

Impairment and Disposal of Assets, Net

Impairments and Disposal of Assets, Net

During the fiscal quarter ended August 30, 2015, we recognized a net gain of $1.7 million in impairments and disposal of assets, net ($1.0 million net of tax), primarily related to sale-leaseback transactions. During the fiscal quarter ended August 24, 2014, we recognized a net impairment loss of $7.0 million in impairments and disposal of assets, net ($4.3 million net of tax), primarily related to restaurant impairments. Impairment charges were measured based on the amount by which the carrying amount of these assets exceeded their fair value. Fair value is generally determined based on appraisals or sales prices of comparable assets and estimates of future cash flows. These amounts are included in impairments and disposal of assets, net as a component of earnings from continuing operations in the accompanying consolidated statements of earnings.