Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Jan. 03, 2016

Dec. 28, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents changes in the carrying value of goodwill for the periods ended January 3, 2016 and December 28, 2014:



	Successor
	January 3, 2016		December 28, 2014
	(in thousands)
Balance at beginning of period	$	483,444	$	—
Goodwill assigned in connection with Merger ⁽¹⁾	—		432,058
Goodwill assigned in acquisition of Peter Piper Pizza ^{(2) (3)}	432		50,982
Other additions ⁽⁴⁾	—		404
Balance at end of period	$	483,876	$	483,444

__________________


(1)	See Note 2 “Acquisition of CEC Entertainment, Inc.” for a discussion of goodwill recorded in connection with Merger.


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

(3)

During Fiscal 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 3 “Acquisition of Peter Piper Pizza” for a discussion of the measurement period adjustments.


(4)	Other additions for the 317 day period ended December 28, 2014 represents goodwill related to a franchise 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 January 3, 2016 and December 28, 2014:



		Successor
		January 3, 2016							December 28, 2014
	Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Chuck E. Cheese's tradename	Indefinite	$	400,000	$	—		$	400,000	$	400,000	$	—		$	400,000
Peter Piper Pizza tradename ⁽²⁾	Indefinite	26,700		—			26,700		24,800		—			24,800
Favorable lease agreements ⁽¹⁾ ⁽²⁾	10	14,880		(3,686		)	11,194		16,000		(1,679		)	14,321
Franchise agreements	25	53,300		(3,099		)	50,201		53,300		(1,021		)	52,279
		$	494,880	$	(6,785	)	$	488,095	$	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 $3.9 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.


(2)	During Fiscal 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 3 “Acquisition of Peter Piper Pizza” for a discussion of these adjustments.

Schedule of Finite-Lived Intangible Assets

The following table presents our indefinite and definite-lived intangible assets at January 3, 2016 and December 28, 2014:



		Successor
		January 3, 2016							December 28, 2014
	Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Chuck E. Cheese's tradename	Indefinite	$	400,000	$	—		$	400,000	$	400,000	$	—		$	400,000
Peter Piper Pizza tradename ⁽²⁾	Indefinite	26,700		—			26,700		24,800		—			24,800
Favorable lease agreements ⁽¹⁾ ⁽²⁾	10	14,880		(3,686		)	11,194		16,000		(1,679		)	14,321
Franchise agreements	25	53,300		(3,099		)	50,201		53,300		(1,021		)	52,279
		$	494,880	$	(6,785	)	$	488,095	$	494,100	$	(2,700	)	$	491,400

__________________

(1)


(2)	During Fiscal 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 3 “Acquisition of Peter Piper Pizza” for a discussion of these adjustments.

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 2016	$	1,938	$	2,049
Fiscal 2017	1,659		2,049
Fiscal 2018	1,246		2,049
Fiscal 2019	1,102		2,049
Fiscal 2020	1,050		2,088
Thereafter	4,199		39,917
	$11,194		$50,201