Impairments and Disposal of Assets, Net

12 Months Ended

May 31, 2020

IMPAIRMENTS AND DISPOSAL OF ASSETS, NET

Impairments and disposal of assets, net, in our accompanying consolidated statements of earnings are comprised of the following:



	Fiscal Year Ended
(in millions)	May 31, 2020			May 26, 2019			May 27, 2018
Restaurant impairments	$	51.2		$	19.5		$	3.7
Disposal (gains) losses	(2.4		)	(0.7		)	(1.1		)
Other	172.2			0.2			0.8
Impairments and disposal of assets, net	$	221.0		$	19.0		$	3.4

Restaurant impairments for fiscal 2020 were primarily related to the economic impact of COVID-19 on 11 underperforming restaurants that were permanently closed during the fourth quarter of fiscal 2020 and 9 other restaurants whose projected cash flows were not sufficient to cover their respective carrying values. Restaurant impairments for fiscal 2019 and fiscal 2018 were primarily related to underperforming restaurants.

Disposal gains for fiscal 2020 were primarily related to a sale-leaseback, disposal of closed locations, and sale of liquor licenses. Disposal gains for 2019 and 2018 were primarily related to the sale of excess land parcels.

Other impairment charges for fiscal 2020 were primarily related to a trademark impairment resulting from the economic impact of COVID-19 on Cheddar’s Scratch Kitchen forecasted sales. Other impairments for fiscal 2020 also included impairments due to inventory obsolescence and a receivable deemed uncollectible.

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 discounted future cash flows (see Note 8). 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.