Intangible Assets, net and Goodwill

6 Months Ended

Jun. 30, 2011

Intangible Assets, net and Goodwill [Abstract]

Note 6. Intangible Assets, net and Goodwill

As a result of the Merger on the Merger Date, and the related application of acquisition accounting, the Company completed a preliminary valuation of the Brand and other identifiable intangible assets as of that date. The Brand, the Company’s only intangible asset with an indefinite life, had a carrying value of $2.3 billion and $2.2 billion as of June 30, 2011 and December 31, 2010, respectively. As of June 30, 2011 and December 31, 2010, goodwill had a carrying value of $634.4 million. The goodwill is attributable to preliminary acquisition accounting and will be allocated to reporting units upon completion of the fair value studies in 2011. The change in the carrying value of the Brand, the franchise agreements and favorable leases between December 31, 2010 and June 30, 2011 is attributable to foreign currency translation.

The tables below present intangible assets subject to amortization:


	As of
	June 30,			December 31,
	2011			2010
	(In millions)
Franchise agreements	$	501.4		$	486.8
Accumulated amortization		(15.1	)		(4.0	)

Total, net	$	486.3		$	482.8


	As of
	June 30,			December 31,
	2011			2010
	(In millions)
Favorable leases	$	162.2		$	159.9
Accumulated amortization		(12.5	)		(3.8	)

Total, net	$	149.7		$	156.1

The Company recorded amortization expense on intangible assets of $9.8 million and $19.5 million during the three and six months ended June 30, 2011, respectively. The Predecessor recorded amortization expense on intangible assets of $2.3 million and $4.4 million during the three and six months ended June 30, 2010, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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