Consolidating Guarantor Financial Information (Tables)

12 Months Ended

Dec. 28, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of December 28, 2014
(in thousands)

	Successor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	97,020		$	6,427		$	7,547		$	—		$	110,994
Accounts receivable	13,209			5,487			3,797			(3,658		)	18,835
Inventories	15,008			3,596			375			—			18,979
Other current assets	19,086			3,711			2,040			—			24,837
Total current assets	144,323			19,221			13,759			(3,658		)	173,645
Property and equipment, net	638,239			33,064			10,669			—			681,972
Goodwill	432,462			50,982			—			—			483,444
Intangible assets, net	24,649			466,751			—			—			491,400
Intercompany	129,429			25,090			32,655			(187,174		)	—
Investment in subsidiaries	428,836			—			—			(428,836		)	—
Other noncurrent assets	27,770			5,875			37			—			33,682
Total assets	$	1,825,708		$	600,983		$	57,120		$	(619,668	)	$	1,864,143
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	9,500		$	45		$	—		$	—		$	9,545
Capital lease obligations, current portion	405			—			3			—			408
Accounts payable and accrued expenses	82,995			21,989			(248		)	(484		)	104,252
Other current liabilities	2,990			—			—			—			2,990
Total current liabilities	95,890			22,034			(245		)	(484		)	117,195
Capital lease obligations, less current portion	15,395			—			81			—			15,476
Bank indebtedness and other long-term debt, less current portion	998,374			67			—			—			998,441
Deferred tax liability	207,258			14,877			780			—			222,915
Intercompany	6,309			126,497			57,542			(190,348		)	—
Other noncurrent liabilities	209,896			7,472			162			—			217,530
Total liabilities	1,533,122			170,947			58,320			(190,832		)	1,571,557
Stockholders' equity:
Common stock	—			—			—			—			—
Capital in excess of par value	355,587			465,451			3,089			(468,540		)	355,587
Retained earnings (deficit)	(62,088		)	(35,415		)	(3,376		)	38,791			(62,088		)
Accumulated other comprehensive income (loss)	(913		)	—			(913		)	913			(913		)
Total stockholders' equity	292,586			430,036			(1,200		)	(428,836		)	292,586
Total liabilities and stockholders' equity	$	1,825,708		$	600,983		$	57,120		$	(619,668	)	$	1,864,143



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 317 Day Period Ended December 28, 2014
(in thousands)

	Successor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	293,407		$	8,259		$	6,030		$	—		$	307,696
Entertainment and merchandise sales	391,818			2,490			10,094			—			404,402
Total Company store sales	685,225			10,749			16,124			—			712,098
Franchise fees and royalties	1,813			4,670			—			—			6,483
International Association assessments and other fees	1,006			1,233			37,388			(39,627		)	—
Total revenues	688,044			16,652			53,512			(39,627		)	718,581
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	75,772			2,324			1,900			—			79,996
Cost of entertainment and merchandise	23,832			244			660			(128		)	24,608
Total cost of food, beverage, entertainment and merchandise	99,604			2,568			2,560			(128		)	104,604
Labor expenses	192,651			2,922			5,282			—			200,855
Depreciation and amortization	111,816			1,197			2,938			—			115,951
Rent expense	73,337			938			2,423			—			76,698
Other store operating expenses	112,669			2,445			3,410			1,372			119,896
Total Company store operating costs	590,077			10,070			16,613			1,244			618,004
Advertising expense	38,511			638			31,712			(37,159		)	33,702
General and administrative expenses	18,414			34,176			1,091			(3,712		)	49,969
Transaction and severance costs	40,998			7,760			—			—			48,758
Asset Impairment	40			3			364			—			407
Total operating costs and expenses	688,040			52,647			49,780			(39,627		)	750,840
Operating income (loss)	4			(35,995		)	3,732			—			(32,259		)
Equity in earnings (loss) in affiliates	(36,988		)	—			—			36,988			—
Interest expense	59,644			770			538			—			60,952
Income (loss) before income taxes	(96,628		)	(36,765		)	3,194			36,988			(93,211		)
Income tax expense (benefit)	(34,540		)	2,441			976			—			(31,123		)
Net income (loss)	$	(62,088	)	$	(39,206	)	$	2,218		$	36,988		$	(62,088	)

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	(913	)	$	—		$	(913	)	$	913		$	(913	)
Total components of other comprehensive income (loss), net of tax	(913		)	—			(913		)	913			(913		)
Comprehensive income (loss)	$	(63,001	)	$	(39,206	)	$	1,305		$	37,901		$	(63,001	)



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 Twelve Months Ended December 29, 2013
(in thousands)

	Predecessor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	358,931		$	683		$	9,016		$	(46	)	$	368,584
Entertainment and merchandise sales	434,429			—			13,726			—			448,155
Total Company store sales	793,360			683			22,742			(46		)	816,739
Franchise fees and royalties	2,363			2,619			—			—			4,982
International Association assessments and other fees	—			63,400			43,463			(106,863		)	—
Total revenues	795,723			66,702			66,205			(106,909		)	821,721
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	87,543			33			2,787			—			90,363
Cost of entertainment and merchandise	28,952			(32		)	915			(60		)	29,775
Total cost of food, beverage, entertainment and merchandise	116,495			1			3,702			(60		)	120,138
Labor expenses	222,085			—			7,087			—			229,172
Depreciation and amortization	76,026			—			2,141			—			78,167
Rent expense	75,681			—			2,782			—			78,463
Other store operating expenses	189,087			(460		)	4,782			(62,374		)	131,035
Total Company store operating costs	679,374			(459		)	20,494			(62,434		)	636,975
Advertising expense	44,244			—			40,411			(43,438		)	41,217
General and administrative expenses	17,817			38,617			1,294			(1,037		)	56,691
Transaction and severance costs	316			—			—			—			316
Asset impairment	2,241			—			810			—			3,051
Total operating costs and expenses	743,992			38,158			63,009			(106,909		)	738,250
Operating income (loss)	51,731			28,544			3,196			—			83,471
Equity in earnings (loss) in affiliates	23,240			—			—			(23,240		)	—
Interest expense (income)	12,620			(6,002		)	835			—			7,453
Income (loss) before income taxes	62,351			34,546			2,361			(23,240		)	76,018
Income tax expense (benefit)	14,527			12,877			790			—			28,194
Net income (loss)	$	47,824		$	21,669		$	1,571		$	(23,240	)	$	47,824

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	(1,116	)	$	—		$	(1,116	)	$	1,116		$	(1,116	)
Total components of other comprehensive income (loss), net of tax	(1,116		)	—			(1,116		)	1,116			(1,116		)
Comprehensive income (loss)	$	46,708		$	21,669		$	455		$	(22,124	)	$	46,708



CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Twelve Months Ended December 30, 2012
(in thousands)

	Predecessor
	Issuer		Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	361,696	$	1,641		$	9,611		$	—		$	372,948
Entertainment and merchandise sales	410,853		1,132			14,004			—			425,989
Total Company store sales	772,549		2,773			23,615			—			798,937
Franchise fees and royalties	2,459		2,084			—			—			4,543
International Association assessments and other fees	—		57,863			30,019			(87,882		)	—
Total revenues	775,008		62,720			53,634			(87,882		)	803,480
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	89,946		316			3,155			—			93,417
Cost of entertainment and merchandise	29,860		66			929			—			30,855
Total cost of food, beverage, entertainment and merchandise	119,806		382			4,084			—			124,272
Labor expenses	215,787		558			7,260			—			223,605
Depreciation and amortization	76,323		188			2,258			—			78,769
Rent expense	72,218		258			2,836			—			75,312
Other store operating expenses	179,394		240			5,026			(57,805		)	126,855
Total Company store operating costs	663,528		1,626			21,464			(57,805		)	628,813
Advertising expense	32,791		89			32,521			(29,994		)	35,407
General and administrative expenses	18,176		34,349			995			(83		)	53,437
Asset impairment	6,012		—			740			—			6,752
Total operating costs and expenses	720,507		36,064			55,720			(87,882		)	724,409
Operating income (loss)	54,501		26,656			(2,086		)	—			79,071
Equity in earnings (loss) in affiliates	18,146		—			—			(18,146		)	—
Interest expense (income)	12,922		(4,218		)	697			—			9,401
Income (loss) before income taxes	59,725		30,874			(2,783		)	(18,146		)	69,670
Income tax expense (benefit)	16,135		10,937			(992		)	—			26,080
Net income (loss)	$	43,590	$	19,937		$	(1,791	)	$	(18,146	)	$	43,590

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	538	$	—		$	538		$	(538	)	$	538
Total components of other comprehensive income (loss), net of tax	538		—			538			(538		)	538
Comprehensive income (loss)	$	44,128	$	19,937		$	(1,253	)	$	(18,684	)	$	44,128

Condensed Consolidating Cash Flow Statement



CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the 317 Day Period Ended December 28, 2014
(in thousands)

	Successor
	Issuer				Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	70,034			$	(24,166	)	$	2,223		$	—		$	48,091

Cash flows from investing activities:
Acquisition of Predecessor	(946,898		)		—			—			—			(946,898		)
Acquisition of Peter Piper Pizza	(118,409		)		5,267			—			—			(113,142		)
Intercompany Note	—				375,539			—			(375,539		)	—
Purchases of property and equipment	(55,299		)		(5,665		)	(1,593		)	—			(62,557		)
Development of internal use software	—				(2,130		)	—			—			(2,130		)
Proceeds from sale of property and equipment	23				419			—			—			442
Cash flows provided by (used in) investing activities	(1,120,583		)		373,430			(1,593		)	(375,539		)	(1,124,285		)

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	(3,800		)		(7		)	—			—			(3,807		)
Intercompany Note	(375,539		)		5,050			(5,050		)	375,539			—
Proceeds from financing sale-leaseback transaction	183,685				—			—			—			183,685
Payment of debt financing costs	(27,575		)		—			—			—			(27,575		)
Payments on capital lease obligations	(297		)		—			—			—			(297		)
Payments on sale leaseback transactions	(742		)	—	—			—			—			(742		)
Dividends paid	(890		)		—			—			—			(890		)
Excess tax benefit realized from stock-based compensation	4,874				—			—			—			4,874
Equity contribution	350,000				—			—			—			350,000
Cash flows provided by (used in) financing activities	1,140,916				(342,957		)	(5,050		)	375,539			1,168,448
Effect of foreign exchange rate changes on cash	—				—			(444		)	—			(444		)

Change in cash and cash equivalents	90,367				6,307			(4,864		)	—			91,810
Cash and cash equivalents at beginning of period	6,653				120			12,411			—			19,184
Cash and cash equivalents at end of period	$	97,020			$	6,427		$	7,547		$	—		$	110,994



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 Twelve Months Ended December 29, 2013
(in thousands)

	Predecessor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	179,913		$	(43,734	)	$	2,485		$	—		$	138,664

Cash flows from investing activities:
Intercompany Note	—			87,775			—			(87,775		)	—
Purchases of property and equipment	(71,947		)	(1,265		)	(873		)	—			(74,085		)
Proceeds from sale of property and equipment	1,890			640			—			—			2,530
Other investing activities	613			—			—			—			613
Cash flows provided by (used in) investing activities	(69,444		)	87,150			(873		)	(87,775		)	(70,942		)

Cash flows from financing activities:
Net proceeds from (repayments on) revolving credit facility	—			(28,000		)	—			—			(28,000		)
Intercompany Note	(73,650		)	(13,750		)	(375		)	87,775			—
Payments on capital lease obligations	(885		)	—			(68		)	—			(953		)
Dividends paid	(17,097		)	—			—			—			(17,097		)
Excess tax benefit realized from stock-based compensation	343			—			—			—			343
Restricted stock returned for payment of taxes	(2,212		)	—			—			—			(2,212		)
Purchases of treasury stock	(18,112		)	—			—			—			(18,112		)
Cash flows provided by (used in) financing activities	(111,613		)	(41,750		)	(443		)	87,775			(66,031		)
Effect of foreign exchange rate changes on cash	—			—			(641		)	—			(641		)

Change in cash and cash equivalents	(1,144		)	1,666			528			—			1,050
Cash and cash equivalents at beginning of period	11,321			248			8,067			—			19,636
Cash and cash equivalents at end of period	$	10,177		$	1,914		$	8,595		$	—		$	20,686



CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Twelve Months Ended December 30, 2012
(in thousands)

	Predecessor
	Issuer				Guarantors				Non-Guarantors				Eliminations				Consolidated
Cash flows provided by (used in) operating activities:	568,923				(430,697		)		(1,134		)		—				137,092

Cash flows from investing activities:
Acquisition of Predecessor	—				—				—				—				—
Acquisition of Franchise	(241		)		3				—				—				(238		)
Intercompany Note	—				437,125				—				(437,125		)		—
Purchases of property and equipment	(91,266		)		(6,627		)		(1,358		)		—				(99,251		)
Proceeds from sale of property and equipment	586				—				—				—				586
Other investing activities	—				—				—				—				—
Cash flows provided by (used in) investing activities	(90,921		)	—	430,501			—	(1,358		)	—	(437,125		)	—	(98,903		)

Cash flows from financing activities:
Net proceeds from (repayments on) revolving credit facility	—				(100		)		—				—				(100		)
Intercompany Note	(440,475		)		—				3,350				437,125				—
Payments on capital lease obligations	(903		)		—				(46		)		—				(949		)
Dividends paid	(19,846		)		—				—				—				(19,846		)
Excess tax benefit realized from stock-based compensation	619				—				—				—				619
Restricted stock returned for payment of taxes	(2,656		)		—				—				—				(2,656		)
Purchases of treasury stock	(14,353		)		—				—				—				(14,353		)
Cash flows provided by (used in) financing activities	(477,614		)	—	(100		)	—	3,304			—	437,125			—	(37,285		)
Effect of foreign exchange rate changes on cash	—				—				59				—				59

Change in cash and cash equivalents	388			—	(296		)	—	871			—	—			—	963
Cash and cash equivalents at beginning of period	10,933				544				7,196				—				18,673
Cash and cash equivalents at end of period	$	11,321			$	248			$	8,067			$	—			$	19,636