In the fourth quarter of 1999, the Company recorded a pre-tax charge to earnings of $5,493,000 which includes approximately $3,617,000 for the write down of impaired assets, $1,876,000 related to restaurant closings, severance and other costs. The write down primarily related to Carrabba's restaurant properties and assets of ancillary businesses.

   In accordance with SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets," the Company identified certain long-lived assets which are held and used in the Carrabba's restaurants as impaired. An impairment was recognized when the future undiscounted cash flows of certain assets were estimated to be less than the assets' related carrying value. As such, the carrying values were written down to the Company's estimates of fair value. Fair value was estimated utilizing the best information available making whatever estimates, judgments, and projections were considered necessary.