Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 28, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents changes in the carrying value of goodwill for the periods ended December 29, 2013 and December 28, 2014 (in thousands):



Predecessor:
Balance at December 29, 2013 ⁽¹⁾	$	3,458

Successor:
Goodwill assigned in connection with Merger ⁽¹⁾	$	432,058
Goodwill assigned in acquisition of Peter Piper Pizza ⁽²⁾	50,982
Other additions ⁽³⁾	404
Balance at December 28, 2014	$	483,444

_________________________


(1)	The Predecessor goodwill was eliminated in acquisition accounting. See Note 2 “Acquisition of CEC Entertainment, Inc.” for a discussion of goodwill recorded in connection with the Merger.


(2)	See Note 3 “Acquisition of Peter Piper Pizza” for a discussion of goodwill recorded in connection with the Peter Piper Pizza acquisition.


(3)	Represents goodwill related to a franchisee the Company acquired in the second quarter of 2014.

Schedule of Indefinite-Lived Intangible Assets

The following table presents our indefinite and definite-lived intangible assets at December 28, 2014. We did not have any indefinite or definite-lived intangible assets prior to the Merger.



	Successor
	Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Chuck E. Cheese’s tradename	Indefinite	$	400,000	$	—		$	400,000
Peter Piper Pizza tradename	Indefinite	$	24,800	—			24,800
Favorable lease agreements ⁽¹⁾	10	16,000		(1,679		)	14,321
Franchise agreements	25	53,300		(1,021		)	52,279
		$	494,100	$	(2,700	)	$	491,400

_________________

(1)

In connection with the Merger and the PPP Acquisition, we also recorded unfavorable lease liabilities of $10.2 million and $3.3 million, respectively, which are included in “Other current liabilities” and “Other non-current liabilities” in our Consolidated Balance Sheets for the Successor period. Such amounts are being amortized over a weighted average life of 10 years, which is included in “Rent expense” in our

Consolidated Statements of Earnings for the Successor period.

Schedule of Finite-Lived Intangible Assets

The following table presents our indefinite and definite-lived intangible assets at December 28, 2014. We did not have any indefinite or definite-lived intangible assets prior to the Merger.



	Successor
	Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Chuck E. Cheese’s tradename	Indefinite	$	400,000	$	—		$	400,000
Peter Piper Pizza tradename	Indefinite	$	24,800	—			24,800
Favorable lease agreements ⁽¹⁾	10	16,000		(1,679		)	14,321
Franchise agreements	25	53,300		(1,021		)	52,279
		$	494,100	$	(2,700	)	$	491,400

_________________

(1)

Consolidated Statements of Earnings for the Successor period.

Schedule of Estimated Future Amortization Expense

Our estimated future amortization expense related to the favorable lease agreements and franchise agreements is set forth as follows (in thousands):



	Favorable Lease Agreements	Franchise Agreements
Fiscal 2015	2,109	2,070
Fiscal 2016	1,987	2,053
Fiscal 2017	1,709	2,053
Fiscal 2018	1,365	2,053
Fiscal 2019	1,221	2,053
Thereafter	5,930	41,997
	14,321	$	52,279