El Pollo Loco 2015 Annual Report Download - page 55

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Table of Contents
Asset Impairment and Close
-Store Reserves
We review long-lived assets such as property, equipment, and intangibles on a unit-by-unit basis for impairment when events or circumstances
indicate a carrying value of the assets that may not be recoverable, and record an impairment charge when appropriate. Closure costs include
non-cash restaurant charges such as up-front expensing of unpaid rent remaining on the life of a lease.
Interest Expense, Net
Interest expense, net, consists primarily of interest on our outstanding debt. Debt issuance costs are amortized at cost over the life of the related
debt.
Early Extinguishment of Debt
In October 2013, we refinanced the 2011 Financing Agreements by entering into the 2013 Credit Agreements, which included longer maturities
and lower interest rates than the indebtedness that they replaced. The proceeds from our IPO in July 2014 were primarily used to repay the 2013
Second Lien Term Loan. In December 2014, we refinanced our then-existing debt, replacing the 2013 Revolver and the 2013 First Lien Term
Loan with the 2014 Revolver. As a result of the 2013 Refinancing, the repayment of the 2013 Second Lien Term Loan, and the 2014
Refinancing, in both fiscal 2014 and 2013 we incurred charges for prepayment penalties and fees, call premium, accelerated accretion, and write-
off of deferred financing costs and fees and of unamortized discount.
Benefit (Provision) for Income Taxes
Benefit (provision) for income taxes consists of federal and state taxes on our income.
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