Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 27, 2015

Finite-Lived Intangible Assets [Line Items]

The following table presents changes in the carrying value of goodwill for the nine months ended September 27, 2015 (in thousands):



	Successor
Balance at December 28, 2014	$	483,444
Additions ⁽¹⁾	432
Balance at September 27, 2015	$	483,876

__________________

(1)

During the nine months ended September 27, 2015, we recorded certain adjustments to the initial PPP purchase price allocation related to the final settlement of net working capital, the valuation of favorable and unfavorable lease interests, the valuation of PPP’s tradename and the valuation of net operating losses acquired and other tax positions that resulted in a net increase to goodwill of $0.4 million. See Note 2 “Peter Piper Acquisition” for a discussion of the measurement period adjustments.

Schedule of Indefinite-Lived Intangible Assets

The following table presents our indefinite and definite-lived intangible assets at September 27, 2015:



	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 ⁽²⁾	Indefinite	26,700		—			26,700
Favorable lease agreements ⁽¹⁾ ⁽²⁾	10	14,880		(3,171		)	11,709
Franchise agreements	25	53,300		(2,560		)	50,740
		$	494,880	$	(5,731	)	$	489,149

__________________

(1)

In connection with the Merger and the PPP Acquisition, we also recorded unfavorable lease liabilities of $10.2 million and $3.9 million, respectively, which are included in “Other current liabilities” and “Other noncurrent liabilities” in our Consolidated Balance Sheets. Such amounts are being amortized over a weighted average life of 10 years, and are included in “Rent expense” in our Consolidated Statements of Earnings for the Successor periods.

Schedule of Finite-Lived Intangible Assets

The following table presents our indefinite and definite-lived intangible assets at September 27, 2015:



	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 ⁽²⁾	Indefinite	26,700		—			26,700
Favorable lease agreements ⁽¹⁾ ⁽²⁾	10	14,880		(3,171		)	11,709
Franchise agreements	25	53,300		(2,560		)	50,740
		$	494,880	$	(5,731	)	$	489,149

__________________

(1)


(2)	In the first quarter of 2015 we recorded adjustments related to the valuation of the favorable lease agreements intangible asset and PPP’s tradename of $(1.1) million and $1.9 million, respectively, recorded in connection with the PPP Acquisition. See Note 2 “Acquisition of Peter Piper Pizza” for a discussion of these adjustments.