Goodwill and Other Intangible Assets

9 Months Ended

Sep. 25, 2012

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

Note 3 – Goodwill and Other Intangible Assets

Changes in goodwill for the year-to-date period of 2012 are summarized below (in thousands):

Balance at December 27, 2011	$	191,701
Purchase accounting adjustment		(191,701	)
Allocation of purchase price, net of taxes		197,054
Purchase accounting adjustment for impact of deferred income taxes		92,090
Acquisition of business assets		1,364
Balance September 25, 2012	$	290,508

Amortizable other intangible assets consist of franchise rights and leasehold interests. These intangible assets are amortized on a straight-line basis over the lesser of their economic lives or the remaining life of the applicable agreement. Intangible assets subject to amortization are summarized below (in thousands):

	September 25, 2012
	Gross Carrying Amount			Accumulated Amortization			Net Book Value
Amortizable intangible assets:
Franchise rights	$	638,014		$	(11,643	)	$	626,371
Unfavorable leasehold interests, net		(4,640	)		1,123			(3,517	)
	$	633,374		$	(10,520	)	$	622,854
	December 27, 2011
	Gross Carrying Amount			Accumulated Amortization			Net Book Value
Amortizable intangible assets:
Franchise rights	$	440,637		$	(50,527	)	$	390,110
Favorable leasehold interests, net		6,013			(1,842	)		4,171
	$	446,650		$	(52,369	)	$	394,281

Amortization expense on intangible assets was $3.5 million and $2.5 million for the 13 weeks ended September 25, 2012 and September 27, 2011, respectively, and $10.5 million and $7.6 million for the 39 weeks ended September 25, 2012 and September 27, 2011, respectively.

Annual amortization during the next five fiscal years is expected to be as follows: $14.4 million for fiscal 2013; $14.6 million in each of the years for fiscal 2014 through 2016; and $14.9 million for fiscal 2017.