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Closed Restaurants and Discontinued Operations
 6 Months Ended
Dec. 28, 2014
Closed restaurants and discontinued operations  
Closed restaurants and discontinued operations

(6)           Closed restaurants and discontinued operations

 

The authoritative guidance on“Accounting for the Impairment or Disposal of Long-Lived Assets,” requires that discontinued operations that meet certain criteria be reflected in the statement of operations after results of continuing operations as a net amount.  This guidance also requires that the operations of closed restaurants, including any impairment charges, be reclassified to discontinued operations for all periods presented. 

               

The authoritative guidance on“Accounting for Costs Associated with Exit or Disposal Activities,” requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred.  This authoritative guidance also establishes that fair value is the objective for initial measurement of the liability.

 

                Discontinued operations reflect losses from two Company-owned Pizza Inn locations in Texas.  These losses were attributable to leasehold expense associated with a restaurant closed during fiscal 2008 and operating results for a restaurant closed in the fourth quarter of fiscal 2014.