XML 75 R61.htm IDEA: XBRL DOCUMENT v3.20.2
FISCAL 2020 CHILI'S RESTAURANT ACQUISITION (Details)
$ in Millions
3 Months Ended 12 Months Ended
Sep. 05, 2019
USD ($)
Restaurants
Sep. 25, 2019
USD ($)
Jun. 24, 2020
USD ($)
Sep. 23, 2020
USD ($)
Restaurants
Business Acquisition [Line Items]        
Number of restaurants | Restaurants       1,660
Goodwill     $ 187.6 $ 187.7
Chili's restaurant acquisition [Member]        
Business Acquisition [Line Items]        
Number of restaurants | Restaurants 116      
Cash consideration for acquisition, including post-closing adjustments     $ 96.0  
Acquisition of franchise restaurants costs, net of (gains)   $ (0.5)    
Franchise deferred revenue recognized upon acquisition   2.6    
Professional services, transaction and transition related costs   1.5    
Loss on derecognition of franchisee straight-line rent balance   $ 0.6    
Current assets [1] $ 7.3      
Property and equipment 60.3      
Operating lease assets 163.5      
Reacquired franchise rights [2] 6.9      
Goodwill [3] 22.4      
Total assets acquired 260.4      
Current liabilities [4] 9.1      
Operating lease liabilities, less current portion 158.3      
Total liabilities assumed 167.4      
Net assets acquired [5] $ 93.0      
Weighted average amortization period, reacquired franchise rights 8 years      
Purchase price excluding customary working capital adjustments $ 99.0      
Closing adjustments 3.2      
Prepayment of leases between Brinker and franchisee $ 2.8      
[1] Current assets included petty cash, inventory, and restaurant supplies.
[2] Reacquired franchise rights have a weighted average amortization period of approximately 8 years.
[3] Goodwill is expected to be deductible for tax purposes. The portion of the purchase price attributable to goodwill represents the benefits expected as a result of the acquisition, including sales and unit growth opportunities, and the benefit of the assembled workforce of the acquired restaurants.
[4] Current liabilities included current portion of operating lease liabilities, gift card liability and accrued property tax.
[5] Net assets acquired at fair value are equal to the total purchase price of $99.0 million, less $3.2 million of closing adjustments and $2.8 million allocated to prepayment of leases entered into between us and the franchisee.