Goodwill and Other Intangible Assets

12 Months Ended

Dec. 29, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in goodwill are summarized below (in thousands):



Balance December 31, 2013	$	292,623
Acquisition of Wendy’s business	2,003
Balance December 30, 2014	294,626
Fiscal 2015 activity	—
Balance December 29, 2015	$	294,626

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. The weighted average amortization period for all intangible assets is as follows:



	Years
Franchise rights, Pizza Hut operations	41
Franchise rights, Wendy’s operations	17
Favorable leasehold interests	16
Unfavorable leasehold interests	9

Intangible assets subject to amortization are summarized below (in thousands):



	December 29, 2015
	Gross Carrying Amount			Accumulated Amortization			Net Book Value
Amortizable intangible assets:
Franchise rights	$	688,825		$	(68,307	)	$	620,518
Favorable leasehold interests	13,850			(4,354		)	9,496
Unfavorable leasehold interests	(17,105		)	8,139			(8,966		)
	$	685,570		$	(64,522	)	$	621,048



	December 30, 2014
	Gross Carrying Amount			Accumulated Amortization			Net Book Value
Amortizable intangible assets:
Franchise rights	$	688,695		$	(49,650	)	$	639,045
Favorable leasehold interests	14,479			(3,679		)	10,800
Unfavorable leasehold interests	(17,417		)	6,447			(10,970		)
	$	685,757		$	(46,882	)	$	638,875

Amortization expense on intangible assets was $17.9 million, $17.3 million and $15.1 million for fiscal 2015, fiscal 2014 and fiscal 2013, respectively.

Annual amortization during the next five fiscal years is expected to be as follows (in thousands):



Fiscal years:
	2016	$	17,679
	2017	17,929
	2018	18,037
	2019	18,214
	2020	18,081

- 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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