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Equity Method Investment
12 Months Ended
Dec. 27, 2015
Equity Method Investment [Abstract]  
Equity Method Investment

(5)      Equity Method Investment

The Company owns an interest in a joint venture, Discovery Family Channel (the "Network"), with Discovery Communications, Inc. ("Discovery"). The Company has determined that it does not meet the control requirements to consolidate the Network and accounts for the investment using the equity method of accounting. The Network was established to create a cable television network in the United States dedicated to high-quality children's and family entertainment. In October 2009, the Company purchased an initial 50% share in the Network for a payment of $300,000 and certain future tax payments based on the value of certain tax benefits expected to be received by the Company. On September 23, 2014, the Company and Discovery amended their relationship with respect to the Network and Discovery increased its equity interest in the Network to 60% while the Company retained a 40% equity interest in the Network. The change in equity interests was accomplished partly through a redemption of interests owned by the Company and partly through the purchase of interests by Discovery from the Company. In connection with this reduction in its equity ownership the Company was paid a cash purchase price of $64,400 by Discovery. In connection with the restructuring of the Network in 2014, the Company recognized a net expense of $28,326, which includes a charge resulting from an option agreement and the Company's share of severance charges and programming write-downs recognized by the Network, partially offset by a gain from the reduction of amounts due to Discovery under a tax sharing agreement and is primarily included in other (income) expense, net in the consolidated statements of operations.

In connection with the amendment, the Company and Discovery entered into an option agreement related to the Company's remaining 40% ownership in the Network, exercisable during the one-year period following December 31, 2021. The exercise price of the option agreement is based upon 80% of the then fair market value of the Network, subject to a fair market value floor. In connection with the amendment, the Company recorded a charge in other expense in the third quarter of 2014, related to the then fair market value of the option agreement totaling $25,590. At December 27, 2015, and December 28, 2014, the fair market value of this agreement was $28,360 and $25,340, respectively and was included as a component of other liabilities related to the fair value of this option agreement. During 2015 and 2014, the Company recorded losses (gains) of $3,020 and $(250) in other expense, net relating to the changein value of this agreement.

As a result of the reduction in the Company's ownership in the Network, the Company also received a benefit from a reduction in amounts due to Discovery under the existing tax sharing agreement. The present value of the expected future payments at the acquisition date totaled approximately $67,900 and was recorded as a component of the Company's investment in the joint venture. For the year ended December 28, 2014 the Company recorded a net benefit in other expense related to the reduction in the amounts due to Discovery under the tax sharing agreement totaling $12,834. The balance of the associated liability, including imputed interest, was $54,521and $55,107 at December 27, 2015 and December 28, 2014, respectively, and is included as a component of other liabilities in the accompanying consolidated balance sheets. During 2015, 2014 and 2013, the Company made payments under the tax sharing agreement to Discovery of $4,971, $7,010 and $6,541, respectively.

The Company has a license agreement with the Network that requires the payment of royalties by the Company to the Network based on a percentage of revenue derived from products related to television shows broadcast by the joint venture. The license includes a minimum royalty guarantee of $125,000, which was paid in 5 annual installments of $25,000 per year, commencing in 2009, which can be earned out over approximately a 10-year period.  The last payment was made in 2013 and is included in other, including long-term advances in the consolidated statements of cash flows. In connection with the 2014 amendment, the terms of this license were modified resulting in a benefit recorded to royalties totaling $2,328 in the consolidated statements of operations.  As of December 27, 2015 and December 28, 2014, the Company had $77,482 and $89,328 of prepaid royalties, respectively, related to this agreement, $14,235 and $12,207, respectively, of which are included in prepaid expenses and other current assets and $63,247 and $77,121, respectively, of which are included in other assets. The Company and the Network are also parties to an agreement under which the Company will provide the Network with an exclusive first look in the U.S. to license certain types of programming developed by the Company based on its intellectual property.  In the event the Network licenses the programming from the Company to air, it is required to pay the Company a license fee.

As of December 27, 2015 and December 28, 2014 the Company's investment in the Network totaled $242,932 and $244,587, respectively. The Company's share in the (earnings) loss of the Network for the years ended December 27, 2015, December 28, 2014 and December 29, 2013 totaled $(19,045), $9,187 and $2,386, respectively and is included as a component of other (income) expense, net in the accompanying consolidated statements of operations.  In 2014, the Company's share in the loss of the Network included charges related to its restructuring totaling $17,278. The Company also enters into certain other transactions with the Network including the licensing of television programming and the purchase of advertising. During 2015, 2014 and 2013, these transactions were not material.