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Fair Value of Financial Instruments
 6 Months Ended
Jun. 26, 2013
Fair Value Disclosures [Abstract]  
Fair Value Disclosures
Fair Value of Financial Instruments

Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis
 
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
 
 
Total
 
Quoted Prices in Active Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Valuation Technique
 
(In thousands)
 
 
Fair value measurements as of June 26, 2013:
 
 
 
 
 
 
 
 
 
Deferred compensation plan investments (1)
$
7,348

 
$
7,348

 
$
—

 
$
—

 
market approach
Interest rate swaps (2)
$
3,870

 
—

 
3,870

 
—

 
income approach
Interest rate caps (2)
$
89

 
$
—

 
$
89

 
$
—

 
income approach
Total
$
11,307

 
$
7,348

 
$
3,959

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Fair value measurements as of December 26, 2012:
 
 
 
 
 
 
 
 
 
Deferred compensation plan investments (1)
$
6,371

 
$
6,371

 
$
—

 
$
—

 
market approach
Interest rate caps (2)
$
8

 
$
—

 
$
8

 
$
—

 
income approach
Total
$
6,379

 
$
6,371

 
$
8

 
$
—

 
 
 
(1)
The fair values of our deferred compensation plan investments are based on the closing market prices of the participants’ elected investments.
(2)
The fair values of our interest rate swaps and interest rate caps are based upon Level 2 inputs which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves.
 
Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below:

 
Total
 
Quoted Prices in Active Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Valuation Technique
 
(In thousands)
 
 
Fair value measurements as of June 26, 2013:
 
 
 
 
 
 
 
 
 
Assets held for sale (1)
$
1,496

 
$
—

 
$
1,496

 
$
—

 
market approach
Total
$
1,496

 
$
—

 
$
1,496

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Fair value measurements as of December 26, 2012:
 
 
 
 
 
 
 
 
 
Assets held and used (2)
$
228

 
$
—

 
$
—

 
$
228

 
income approach
Total
$
228

 
$
—

 
$
—

 
$
228

 
 

(1)
As of June 26, 2013, assets held for sale were written down to their fair value. Impairment charges of $0.8 million were recognized as a component of operating (gains), losses and other charges, net in our Condensed Consolidated Statements of Comprehensive Income.
(2)
As of December 26, 2012, impaired assets related to an underperforming restaurant were written down to their fair value. Impairment charges of $0.7 million were recognized as a component of operating (gains), losses and other charges, net in our Condensed Consolidated Statements of Comprehensive Income. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly.

Disclosures of Fair Value of Other Assets and Liabilities
 
The liabilities under our credit facility are carried at historical cost in our Condensed Consolidated Balance Sheets. As of June 26, 2013 and December 26, 2012, the estimated fair value (Level 2) of our senior secured term loan approximated its carrying value. The fair value of our long-term debt is determined based on market prices or, if market prices are not available, the present value of the underlying cash flows discounted at market rates.