Fair Value Measurements (Tables)

12 Months Ended

Dec. 27, 2015

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of December 27, 2015 and December 28, 2014:



	DECEMBER 27, 2015						DECEMBER 28, 2014
(dollars in thousands)	TOTAL		LEVEL 1		LEVEL 2		TOTAL		LEVEL 1		LEVEL 2
Assets:
Cash equivalents:
Fixed income funds	$	6,333	$	6,333	$	—	$	4,602	$	4,602	$	—
Money market funds	7,168		7,168		—		7,842		7,842		—
Restricted cash equivalents:
Fixed income funds	551		551		—		—		—		—
Money market funds	2,681		2,681		—		3,360		3,360		—
Other current assets, net:
Derivative instruments - foreign currency forward contracts	59		—		59		—		—		—
Total asset recurring fair value measurements	$	16,792	$	16,733	$	59	$	15,804	$	15,804	$	—

Liabilities:
Accrued and other current liabilities:
Derivative instruments - interest rate swaps	$	5,142	$	—	$	5,142	$	2,617	$	—	$	2,617
Derivative instruments - commodities	583		—		583		566		—		566
Derivative instruments - foreign currency forward contracts	703		—		703		—		—		—
Other long-term liabilities:
Derivative instruments - interest rate swaps	5,007		—		5,007		1,307		—		1,307
Total liability recurring fair value measurements	$	11,435	$	—	$	11,435	$	4,490	$	—	$	4,490

Fair value inputs, assets and liabilities, quantitative information

Fair value of each class of financial instrument is determined based on the following:



FINANCIAL INSTRUMENT		METHODS AND ASSUMPTIONS
Fixed income funds and Money market funds		Carrying value approximates fair value because maturities are less than three months.
Derivative instruments		The Company’s derivative instruments include interest rate swaps, interest rate caps, foreign currency forward contracts and commodities. Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. The foreign currency forwards are valued by comparing the contracted forward exchange rate to the current market exchange rate. Key inputs for the valuation of the foreign currency forwards are spot rates, foreign currency forward rates, and the interest rate curve of the domestic currency. The Company incorporates credit valuation adjustments to reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of December 27, 2015 and December 28, 2014, the Company has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives.

Fair value, assets and liabilities measured on a nonrecurring basis

The following table summarizes the fair value remeasurements for Assets held for sale and Property, fixtures and equipment for fiscal years 2015, 2014 and 2013 aggregated by the level in the fair value hierarchy within which those measurements fall:



	2015				2014				2013
(dollars in thousands)	CARRYING VALUE		TOTAL IMPAIRMENT		CARRYING VALUE		TOTAL IMPAIRMENT		CARRYING VALUE		TOTAL IMPAIRMENT
Assets held for sale (1)	$	4,136	$	1,028	$	9,613	$	23,974	$	—	$	—
Property, fixtures and equipment (2)	3,634		27,126		2,429		13,097		9,990		19,761
	$	7,770	$	28,154	$	12,042	$	37,071	$	9,990	$	19,761

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(1)	Carrying value approximates fair value with all assets measured using Level 2 inputs. Third-party market appraisals (Level 2) and purchase contracts (Level 2) were used to estimate the fair value. Refer to Note 4 - Impairments, Disposals and Exit Costs for discussion of impairments related to corporate airplanes and Roy’s.

(2)

Carrying value approximates fair value. Carrying values for assets measured using Level 2 inputs totaled $2.5 million, $1.8 million and $8.3 million for fiscal years 2015, 2014 and 2013, respectively. Assets measured using Level 3 inputs, had carrying values of $1.1 million, $0.6 million and $1.6 million for fiscal years 2015, 2014 and 2013, respectively. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate the fair value. Refer to Note 4 - Impairments, Disposals and Exit Costs for discussion of impairments related to restaurant closure initiatives and the Bonefish Restructuring.

Schedule of carrying value and fair value of senior secured credit facilities, CMBS loan and other unsecured debt

The following table includes the carrying value and fair value of the Company’s debt as of December 27, 2015 and December 28, 2014 aggregated by the level in the fair value hierarchy in which those measurements fall:



	2015						2014
			FAIR VALUE						FAIR VALUE
(dollars in thousands)	CARRYING VALUE		LEVEL 2		LEVEL 3		CARRYING VALUE		LEVEL 2		LEVEL 3
Senior Secured Credit Facility:
Term loan A	$	277,500	$	276,459	$	—	$	296,250	$	294,769	$	—
Term loan A-1	150,000		149,438		—		—		—		—
Term loan B	—		—		—		225,000		222,188		—
Revolving credit facility	432,000		429,300		—		325,000		322,563		—
2012 CMBS loan:
Mortgage loan	289,588		—		293,222		299,765		—		308,563
First mezzanine loan	84,028		—		83,608		85,127		—		85,187
Second mezzanine loan	85,353		—		85,780		86,067		—		86,988
Other notes payable	931		—		918		2,722		—		2,625

Fair value inputs, liabilities, quantitative information

Fair value of debt is determined based on the following:



DEBT FACILITY		METHODS AND ASSUMPTIONS
Senior Secured Credit Facility		Quoted market prices in inactive markets.
2012 CMBS loan		Assumptions derived from current conditions in the real estate and credit markets, changes in the underlying collateral and expectations of management.
Other notes payable		Discounted cash flow approach. Discounted cash flow inputs primarily include cost of debt rates which are used to derive the present value factors for the determination of fair value.