Condensed Consolidating Schedules (Tables)

9 Months Ended

Sep. 28, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of September 28, 2014
(in thousands)
	Successor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	222,314		$	14		$	18,657		$	—		$	240,985
Accounts receivable	11,176			1,652			4,086			(3,489		)	13,425
Inventories	14,763			3,037			428			—			18,228
Other current assets	17,059			2,390			2,376			—			21,825
Total current assets	265,312			7,093			25,547			(3,489		)	294,463
Property and equipment, net	649,564			19,011			14,143			—			682,718
Goodwill	430,697			—			—			—			430,697
Intangible assets, net	25,344			400,960			—			—			426,304
Intercompany	61,376			24,482			24,472			(110,330		)	—
Investment in subsidiaries	388,504			—			—			(388,504		)	—
Other noncurrent assets	28,551			4,945			443			(128		)	33,811
Total assets	$	1,849,348		$	456,491		$	64,605		$	(502,451	)	$	1,867,993
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	—		$	—		$	—		$	7,600
Capital lease obligations, current portion	394			—			3			—			397
Accounts payable and accrued expenses	81,955			16,277			472			—			98,704
Other current liabilities	2,904			—			—			—			2,904
Total current liabilities	92,853			16,277			475			—			109,605
Capital lease obligations, less current portion	15,499			—			86			—			15,585
Bank indebtedness and other long-term debt, less current portion	1,002,037			—			—			—			1,002,037
Deferred tax liability	212,362			—			955			(98		)	213,219
Intercompany	3,482			44,715			65,652			(113,849		)	—
Other noncurrent liabilities	207,961			4,310			122			—			212,393
Total liabilities	1,534,194			65,302			67,290			(113,947		)	1,552,839
Stockholders' equity:
Common stock	—			—			—			—			—
Capital in excess of par value	355,240			410,178			3,354			(413,532		)	355,240
Retained earnings (deficit)	(39,935		)	(18,989		)	(5,888		)	24,877			(39,935		)
Accumulated other comprehensive income (loss)	(151		)	—			(151		)	151			(151		)
Total stockholders' equity	315,154			391,189			(2,685		)	(388,504		)	315,154
Total liabilities and stockholders' equity	$	1,849,348		$	456,491		$	64,605		$	(502,451	)	$	1,867,993

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of December 29, 2013
(in thousands)
	Predecessor
	Issuer			Guarantor		Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	10,177		$	1,914	$	8,595		$	—		$	20,686
Accounts receivable	22,686			1,420		3,752			(2,977		)	24,881
Inventories	15,865			2,965		420			—			19,250
Other current assets	16,367			3,222		2,613			—			22,202
Total current assets	65,095			9,521		15,380			(2,977		)	87,019
Property and equipment, net	661,593			15,242		14,619			—			691,454
Goodwill	3,458			—		—			—			3,458
Intercompany	20,689			379,695		1,636			(402,020		)	—
Investment in subsidiaries	6,190			—		—			(6,190		)	—
Other noncurrent assets	4,333			5,305		1,344			(1,302		)	9,680
Total assets	$	761,358		$	409,763	$	32,979		$	(412,489	)	$	791,611
Current liabilities:
Capital lease obligations, current portion	$	947		$	—	$	67		$	—		$	1,014
Accounts payable and accrued expenses	61,680			21,665		1,907			—			85,252
Other current liabilities	440			—		—			—			440
Total current liabilities	63,067			21,665		1,974			—			86,706
Capital lease obligations, less current portion	19,752			—		613			—			20,365
Bank indebtedness and other long-term debt	—			361,500		—			—			361,500
Deferred tax liability	58,996			—		184			(1,349		)	57,831
Intercompany	362,748			12,224		29,978			(404,950		)	—
Other noncurrent liabilities	96,027			4,432		3,982			—			104,441
Total liabilities	600,590			399,821		36,731			(406,299		)	630,843
Stockholders' equity:
Common stock	6,187			—		—			—			6,187
Capital in excess of par value	453,702			—		—			—			453,702
Retained earnings (deficit)	853,464			9,942		(8,516		)	(1,426		)	853,464
Accumulated other comprehensive income (loss)	4,764			—		4,764			(4,764		)	4,764
Less treasury stock	(1,157,349		)	—		—			—			(1,157,349		)
Total stockholders' equity	160,768			9,942		(3,752		)	(6,190		)	160,768
Total liabilities and stockholders' equity	$	761,358		$	409,763	$	32,979		$	(412,489	)	$	791,611

Condensed Consolidating Income Statement

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended September 28, 2014
(in thousands)
	Successor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	80,296		$	75		$	1,900		$	—		$	82,271
Entertainment and merchandise sales	112,560			—			3,325			—			115,885
Total Company store sales	192,856			75			5,225			—			198,156
Franchise fees and royalties	526			1,007			—			—			1,533
International Association assessments and other fees	5,002			398			10,596			(15,996		)	—
Total revenues	198,384			1,480			15,821			(15,996		)	199,689
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	20,575			9			583			—			21,167
Cost of entertainment and merchandise	6,566			(8		)	223			(112		)	6,669
Total cost of food, beverage, entertainment and merchandise	27,141			1			806			(112		)	27,836
Labor expenses	55,414			—			1,672			—			57,086
Depreciation and amortization	30,673			—			949			—			31,622
Rent expense	21,800			—			787			—			22,587
Other store operating expenses	29,028			4,336			1,262			497			35,123
Total Company store operating costs	164,056			4,337			5,476			385			174,254
Advertising expense	10,778			—			9,709			(10,373		)	10,114
General and administrative expenses	10,864			9,625			329			(6,998		)	13,820
Transaction and severance costs	5,757			(15		)	—			—			5,742
Total operating costs and expenses	191,455			13,947			15,514			(16,986		)	203,930
Operating income (loss)	6,929			(12,467		)	307			990			(4,241		)
Equity in earnings (loss) in affiliates	(10,913		)	—			—			10,913			—
Interest expense (income)	14,955			(123		)	152			990			15,974
Income (loss) before income taxes	(18,939		)	(12,344		)	155			10,913			(20,215		)
Income tax expense (benefit)	(5,660		)	(1,360		)	84			—			(6,936		)
Net income (loss)	(13,279		)	(10,984		)	71			10,913			(13,279		)
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	(652	)	$	—		$	(652	)	$	652		$	(652	)
Total components of other comprehensive income (loss), net of tax	(652		)	—			(652		)	652			(652		)
Comprehensive income (loss)	(13,931		)	(10,984		)	(581		)	11,565			(13,931		)

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended September 29, 2013
(in thousands)
	Predecessor
	Issuer		Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	84,779	$	269		$	2,122		$	—		$	87,170
Entertainment and merchandise sales	104,203		—			3,426			—			107,629
Total Company store sales	188,982		269			5,548			—			194,799
Franchise fees and royalties	535		572			—			—			1,107
International Association assessments and other fees	808		17,115			10,348			(28,271		)	—
Total revenues	190,325		17,956			15,896			(28,271		)	195,906
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	20,179		19			652			—			20,850
Cost of entertainment and merchandise	6,785		(8		)	231			(32		)	6,976
Total cost of food, beverage, entertainment and merchandise	26,964		11			883			(32		)	27,826
Labor expenses	54,495		—			1,974			—			56,469
Depreciation and amortization	19,129		—			474			—			19,603
Rent expense	18,983		—			689			—			19,672
Other store operating expenses	50,432		(318		)	1,133			(16,846		)	34,401
Total Company store operating costs	170,003		(307		)	5,153			(16,878		)	157,971
Advertising expense	10,516		—			10,476			(10,348		)	10,644
General and administrative expenses	4,191		10,159			227			(1,048		)	13,529
Asset impairment	537		—			—			—			537
Total operating costs and expenses	185,247		9,852			15,856			(28,274		)	182,681
Operating income (loss)	5,078		8,104			40			3			13,225
Equity in earnings (loss) in affiliates	10,775		—			—			(10,775		)	—
Interest expense (income)	3,086		(2,012		)	201			3			1,278
Income (loss) before income taxes	12,767		10,116			(161		)	(10,775		)	11,947
Income tax expense (benefit)	5,328		(738		)	(82		)	—			4,508
Net income (loss)	7,439		10,854			(79		)	(10,775		)	7,439
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	225	$	—		$	225		$	(225	)	$	225
Total components of other comprehensive income (loss), net of tax	225		—			225			(225		)	225
Comprehensive income (loss)	7,664		10,854			146			(11,000		)	7,664

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the 226 Day Period Ended September 28, 2014
(in thousands)
	Successor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	219,044		$	196		$	4,957		$	—		$	224,197
Entertainment and merchandise sales	292,064			—			8,085			—			300,149
Total Company store sales	511,108			196			13,042			—			524,346
Franchise fees and royalties	1,452			2,041			—			—			3,493
International Association assessments and other fees	10,502			1,822			27,964			(40,288		)	—
Total revenues	523,062			4,059			41,006			(40,288		)	527,839
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	55,705			38			1,507			—			57,250
Cost of entertainment and merchandise	17,013			(22		)	527			(92		)	17,426
Total cost of food, beverage, entertainment and merchandise	72,718			16			2,034			(92		)	74,676
Labor expenses	139,673			—			4,108			—			143,781
Depreciation and amortization	81,874			—			2,267			—			84,141
Rent expense	51,196			—			1,816			—			53,012
Other store operating expenses	81,398			9,955			2,654			(9,906		)	84,101
Total Company store operating costs	426,859			9,971			12,879			(9,998		)	439,711
Advertising expense	28,513			(17		)	24,003			(27,697		)	24,802
General and administrative expenses	12,886			21,453			830			(2,593		)	32,576
Transaction and severance costs	37,271			5,992			—			—			43,263
Total operating costs and expenses	505,529			37,399			37,712			(40,288		)	540,352
Operating income (loss)	17,533			(33,340		)	3,294			—			(12,513		)
Equity in earnings (loss) in affiliates	(21,779		)	—			—			21,779			—
Interest expense (income)	42,907			(47		)	396			—			43,256
Income (loss) before income taxes	(47,153		)	(33,293		)	2,898			21,779			(55,769		)
Income tax expense (benefit)	(7,218		)	(9,321		)	705			—			(15,834		)
Net income (loss)	(39,935		)	(23,972		)	2,193			21,779			(39,935		)
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	(151	)	$	—		$	(151	)	$	151		$	(151	)
Total components of other comprehensive income (loss), net of tax	(151		)	—			(151		)	151			(151		)
Comprehensive income (loss)	(40,086		)	(23,972		)	2,042			21,930			(40,086		)

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the 47 Day Period Ended February 14, 2014
(in thousands)
	Predecessor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	49,803		$	32		$	1,062		$	—		$	50,897
Entertainment and merchandise sales	61,082			—			1,577			—			62,659
Total Company store sales	110,885			32			2,639			—			113,556
Franchise fees and royalties	353			334			—			—			687
International Association assessments and other fees	—			4,558			6,095			(10,653		)	—
Total revenues	111,238			4,924			8,734			(10,653		)	114,243
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	11,924			25			336			—			12,285
Cost of entertainment and merchandise	3,618			—			131			(20		)	3,729
Total cost of food, beverage, entertainment and merchandise	15,542			25			467			(20		)	16,014
Labor expenses	31,107			—			891			—			31,998
Depreciation and amortization	9,430			—			303			—			9,733
Rent expense	11,962			—			403			—			12,365
Other store operating expenses	20,193			(44		)	(82		)	(4,307		)	15,760
Total Company store operating costs	88,234			(19		)	1,982			(4,327		)	85,870
Advertising expense	6,144			17			5,853			(6,111		)	5,903
General and administrative expenses	4,124			3,863			191			(215		)	7,963
Transaction and severance costs	1,800			9,834			—			—			11,634
Total operating costs and expenses	100,302			13,695			8,026			(10,653		)	111,370
Operating income (loss)	10,936			(8,771		)	708			—			2,873
Equity in earnings (loss) in affiliates	(4,523		)	—			—			4,523			—
Interest expense (income)	1,822			(771		)	100			—			1,151
Income (loss) before income taxes	4,591			(8,000		)	608			4,523			1,722
Income tax expense (benefit)	3,887			(3,040		)	171			—			1,018
Net income (loss)	704			(4,960		)	437			4,523			704
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(541		)	—			(541		)	541			$	(541	)
Total components of other comprehensive income (loss), net of tax	(541		)	—			(541		)	541			(541		)
Comprehensive income (loss)	163			(4,960		)	(104		)	5,064			163

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Nine Months Ended September 29, 2013
(in thousands)
	Predecessor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	281,913		$	544		$	7,031		$	—		$	289,488
Entertainment and merchandise sales	339,138			—			10,819			—			349,957
Total Company store sales	621,051			544			17,850			—			639,445
Franchise fees and royalties	1,755			1,953			—			—			3,708
International Association assessments and other fees	808			48,166			34,046			(83,020		)	—
Total revenues	623,614			50,663			51,896			(83,020		)	643,153
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	67,597			36			2,182			—			69,815
Cost of entertainment and merchandise	22,597			(25		)	716			(32		)	23,256
Total cost of food, beverage, entertainment and merchandise	90,194			11			2,898			(32		)	93,071
Labor expenses	169,021			—			5,388			—			174,409
Depreciation and amortization	57,040			—			1,626			—			58,666
Rent expense	56,549			—			2,099			—			58,648
Other store operating expenses	142,067			(290		)	3,970			(46,972		)	98,775
Total Company store operating costs	514,871			(279		)	15,981			(47,004		)	483,569
Advertising expense	34,508			—			32,473			(34,021		)	32,960
General and administrative expenses	14,224			30,041			680			(1,995		)	42,950
Asset impairment	763			—			—			—			763
Total operating costs and expenses	564,366			29,762			49,134			(83,020		)	560,242
Operating income (loss)	59,248			20,901			2,762			—			82,911
Equity in earnings (loss) in affiliates	16,549			—			—			(16,549		)	—
Interest expense (income)	9,530			(4,649		)	628			—			5,509
Income (loss) before income taxes	66,267			25,550			2,134			(16,549		)	77,402
Income tax expense (benefit)	18,332			10,453			682			—			29,467
Net income (loss)	$	47,935		$	15,097		$	1,452		$	(16,549	)	$	47,935
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	(596	)	$	—		$	(596	)	$	596		$	(596	)
Total components of other comprehensive income (loss), net of tax	(596		)	—			(596		)	596			(596		)
Comprehensive income (loss)	$	47,339		$	15,097		$	856		$	(15,953	)	$	47,339

Condensed Consolidating Cash Flow Statement

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the 226 Day Period Ended September 28, 2014
(in thousands)
	Successor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	93,262		$	(68,202	)	$	12,402		$	—		$	37,462
Cash flows from investing activities:
Acquisition of Predecessor	(946,898		)	—			—			—			(946,898		)
Intercompany Note	(41,149		)	375,358			—			(334,209		)	—
Purchases of property and equipment	(33,374		)	(3,667		)	(3,354		)	—			(40,395		)
Proceeds from sale of property and equipment	—			350			—			—			350
Cash flows provided by (used in) investing activities	(1,021,421		)	372,041			(3,354		)	(334,209		)	(986,943		)
Cash flows from financing activities:
Net proceeds from senior term loan, net of original issue discount	756,200			—			—			—			756,200
Net proceeds from senior unsecured notes	255,000			—			—			—			255,000
Repayment of Predecessor Facility	—			(348,000		)	—			—			(348,000		)
Repayments on senior term loan	(1,900		)	—			—			—			(1,900		)
Intercompany Note	(375,539		)	44,055			(2,725		)	334,209			—
Proceeds from financing sale-leaseback transaction	183,685			—			—			—			183,685
Payment of debt financing costs	(27,575		)	—			—			—			(27,575		)
Payments on capital lease obligations	(204		)	—			—			—			(204		)
Dividends paid	(890		)	—			—			—			(890		)
Excess tax benefit realized from stock-based compensation	5,043			—			—			—			5,043
Equity contribution	350,000			—			—			—			350,000
Cash flows provided by (used in) financing activities	1,143,820			(303,945		)	(2,725		)	334,209			1,171,359
Effect of foreign exchange rate changes on cash	—			—			(77		)	—			(77		)
Change in cash and cash equivalents	215,661			(106		)	6,246			—			221,801
Cash and cash equivalents at beginning of period	6,653			120			12,411			—			19,184
Cash and cash equivalents at end of period	$	222,314		$	14		$	18,657		$	—		$	240,985

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the 47 Day Period Ended February 14, 2014
(in thousands)
	Predecessor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	(12,224	)	$	29,906		$	4,632		$	—		$	22,314
Cash flows from investing activities:
Intercompany Note	—			(17,601		)	—			17,601			—
Purchases of property and equipment	(8,538		)	(1,082		)	(90		)	—			(9,710		)
Proceeds from sale of property and equipment	(2		)	53			—			—			51
Cash flows provided by (used in) investing activities	(8,540		)	(18,630		)	(90		)	17,601			(9,659		)
Cash flows from financing activities:
Net proceeds from (repayments on) revolving credit facility	—			(13,500		)	—			—			(13,500		)
Intercompany Note	17,571			430			(400		)	(17,601		)	—
Payments on capital lease obligations	(153		)	—			(11		)	—			(164		)
Dividends paid	(38		)	—			—			—			(38		)
Restricted stock returned for payment of taxes	(142		)	—			—			—			(142		)
Cash flows provided by (used in) financing activities	17,238			(13,070		)	(411		)	(17,601		)	(13,844		)
Effect of foreign exchange rate changes on cash	—			—			(313		)	—			(313		)
Change in cash and cash equivalents	(3,526		)	(1,794		)	3,818			—			(1,502		)
Cash and cash equivalents at beginning of period	10,177			1,914			8,595			—			20,686
Cash and cash equivalents at end of period	$	6,651		$	120		$	12,413		$	—		$	19,184

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Nine Months Ended September 29, 2013
(in thousands)
	Predecessor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	222,077		$	(99,747	)	$	1,425		$	—		$	123,755
Cash flows from investing activities:
Intercompany Note	—			143,339			—			(143,339		)	—
Purchases of property and equipment	(48,684		)	(4,843		)	(919		)	—			(54,446		)
Proceeds from sale of property and equipment	1,888			372			—			—			2,260
Other investing activities	678			—			—			—			678
Cash flows provided by (used in) investing activities	(46,118		)	138,868			(919		)	(143,339		)	(51,508		)
Cash flows from financing activities:
Net proceeds from (repayments on) revolving credit facility	—			(41,000		)	—			—			(41,000		)
Intercompany Note	(145,996		)	1,757			900			143,339			—
Payments on capital lease obligations	(646		)	—			(51		)	—			(697		)
Dividends paid	(8,445		)	—			—			—			(8,445		)
Excess tax benefit realized from stock-based compensation	249			—			—			—			249
Restricted stock returned for payment of taxes	(2,191		)	—			—			—			(2,191		)
Purchases of treasury stock	(18,112		)	—			—			—			(18,112		)
Cash flows provided by (used in) financing activities	(175,141		)	(39,243		)	849			143,339			(70,196		)
Effect of foreign exchange rate changes on cash	—			—			(303		)	—			(303		)
Change in cash and cash equivalents	818			(122		)	1,052			—			1,748
Cash and cash equivalents at beginning of period	11,321			248			8,067			—			19,636
Cash and cash equivalents at end of period	$	12,139		$	126		$	9,119		$	—		$	21,384