Impairment and Disposal of Assets, Net

6 Months Ended

Nov. 29, 2015

Asset Impairment Charges [Abstract]

Impairment and Disposal of Assets, Net

Impairments and Disposal of Assets, Net

During the quarter and six months ended November 29, 2015, we recognized net impairment losses of $7.7 million ($4.8 million net of tax) and $6.0 million ($3.7 million net of tax), respectively, in impairments and disposal of assets, net. Of the total impairments, $7.3 million for the quarter and six months ended November 29, 2015, related to restaurant impairments. During the quarter and six months ended November 23, 2014, we recognized net impairment losses of $39.3 million ($26.2 million net of tax) and $46.3 million ($30.5 million net of tax), respectively, in impairments and disposal of assets, net. Of the total impairments, $28.3 million and $33.8 million for the quarter and six months ended November 23, 2014, respectively, were related to restaurant impairments. During the quarter and six months ended November 23, 2014, we also recognized impairments of assets related to our lobster aquaculture project and a corporate airplane in connection with the closure of our aviation department. 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.