10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________________________________

FORM 10-Q

______________________________________________________________________

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 3, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                     

Commission File Number: 001-13687

____________________________________

CEC ENTERTAINMENT, INC.

(Exact name of registrant as specified in its charter)

____________________________________

Kansas (State or other jurisdiction of incorporation or organization)	48-0905805 (IRS Employer Identification No.)
1707 Market Place Blvd Irving, Texas	75063
(Address of principal executive offices)	(Zip Code)

(972) 258-8507

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

____________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes   ý     No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes   ý     No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	ý	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

As of May 2, 2016, an aggregate of 200 shares of the registrant’s common stock, par value $0.01 per share were outstanding.

CEC ENTERTAINMENT, INC.

TABLE OF CONTENTS

	Page
PART I FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)
Consolidated Balance Sheets at April 3, 2016 and January 3, 2016	3
Consolidated Statements of Earnings for the three months ended April 3, 2016, and March 29, 2015	4
Consolidated Statements of Comprehensive Income (Loss) for the three months ended April 3, 2016 and March 29, 2015	5
Consolidated Statements of Cash Flows for the three months ended April 3, 2016 and March 29, 2015	6
Notes to Consolidated Financial Statements	8
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	37
ITEM 4. Controls and Procedures	37
PART II OTHER INFORMATION
ITEM 1. Legal Proceedings	38
ITEM 1A. Risk Factors	38
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	38
ITEM 6. Exhibits	39
SIGNATURES

2

PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements.

CEC ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share information)

	April 3, 2016			January 3, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	69,998		$	50,654
Restricted cash	4,142			—
Accounts receivable	17,658			25,936
Inventories	26,425			23,275
Prepaid expenses	20,830			18,223
Total current assets	139,053			118,088
Property and equipment, net	613,637			629,047
Goodwill	483,876			483,876
Intangible assets, net	487,068			488,095
Other noncurrent assets	20,276			13,929
Total assets	$	1,743,910		$	1,733,035
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Bank indebtedness and other long-term debt	$	7,656		$	7,650
Capital lease obligations	435			421
Accounts payable	35,580			44,090
Accrued expenses	52,156			38,284
Unearned revenues	10,555			10,233
Accrued interest	3,912			9,757
Other current liabilities	3,780			3,678
Total current liabilities	114,074			114,113
Capital lease obligations, less current portion	14,934			15,044
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	970,556			971,333
Deferred tax liability	193,584			201,734
Accrued insurance	9,485			9,737
Other noncurrent liabilities	213,890			212,528
Total liabilities	1,516,523			1,524,489
Stockholder’s equity:
Common stock, $0.01 par value; authorized 1,000 shares; 200 shares issued as of April 3, 2016 and January 3, 2016	—			—
Capital in excess of par value	356,632			356,460
Retained earnings (deficit)	(126,683		)	(144,598		)
Accumulated other comprehensive income (loss)	(2,562		)	(3,316		)
Total stockholder’s equity	227,387			208,546
Total liabilities and stockholder’s equity	$	1,743,910		$	1,733,035

The accompanying notes are an integral part of these unaudited interim Consolidated Financial Statements.

3

CEC ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(in thousands)

	Three Months Ended
	April 3, 2016		March 29, 2015
REVENUES:
Food and beverage sales	$	122,202	$	116,537
Entertainment and merchandise sales	147,557		144,744
Total company store sales	269,759		261,281
Franchise fees and royalties	4,559		4,227
Total revenues	274,318		265,508
OPERATING COSTS AND EXPENSES:
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)	30,521		29,225
Cost of entertainment and merchandise (exclusive of items shown separately below)	8,750		8,522
Total cost of food, beverage, entertainment and merchandise	39,271		37,747
Labor expenses	69,043		67,173
Depreciation and amortization	27,629		29,241
Rent expense	24,150		24,458
Other store operating expenses	36,010		33,519
Total company store operating costs	196,103		192,138
Other costs and expenses:
Advertising expense	13,100		11,452
General and administrative expenses	18,018		16,326
Transaction, severance and related litigation costs	749		905
Total operating costs and expenses	227,970		220,821
Operating income (loss)	46,348		44,687
Interest expense	17,061		17,499
Income (loss) before income taxes	29,287		27,188
Income tax expense (benefit)	11,372		12,446
Net income (loss)	$	17,915	$	14,742

The accompanying notes are an integral part of these unaudited interim Consolidated Financial Statements.

4

CEC ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(in thousands)

	Three Months Ended
	April 3, 2016		March 29, 2015
Net income (loss)	$	17,915	$	14,742
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	754		(1,642		)
Comprehensive income (loss)	$	18,669	$	13,100

The accompanying notes are an integral part of these unaudited interim Consolidated Financial Statements.

5

CEC ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

	Three Months Ended
	April 3, 2016			March 29, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	17,915		$	14,742
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,998			30,398
Deferred income taxes	(8,287		)	(13,268		)
Stock-based compensation expense	135			391
Amortization of lease related liabilities	12			5
Amortization of original issue discount and deferred debt financing costs	1,136			1,137
Loss on asset disposals, net	2,177			1,244
Non-cash rent expense	1,730			2,136
Other adjustments	27			19
Changes in operating assets and liabilities:
Restricted cash	(4,142		)	—
Accounts receivable	5,011			2,392
Inventories	(3,287		)	880
Prepaid expenses	(1,899		)	(752		)
Accounts payable	(7,551		)	(1,230		)
Accrued expenses	165			1,512
Unearned revenues	316			309
Accrued interest	(5,951		)	(5,326		)
Income taxes payable	16,717			25,551
Deferred landlord contributions	550			408
Net cash provided by operating activities	43,772			60,548
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Peter Piper Pizza	—			(663		)
Purchases of property and equipment	(18,823		)	(16,109		)
Acquisition of franchisee	—			—
Development of internal use software	(3,625		)	(185		)
Proceeds from sale of property and equipment	79			97
Net cash used in investing activities	(22,369		)	(16,860		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on senior term loan	(1,900		)	(1,900		)
Repayments on note payable	(7		)	(11		)
Payments on capital lease obligations	(101		)	(100		)
Payments on sale leaseback obligations	(474		)	(386		)
Excess tax benefit realized from stock-based compensation	4			—

6

CEC ENTERTAINMENT, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS, CONT'D

(Unaudited)

(in thousands)

Net cash provided by (used in) financing activities	(2,478		)	(2,397		)
Effect of foreign exchange rate changes on cash	419			(661		)
Change in cash and cash equivalents	19,344			40,630
Cash and cash equivalents at beginning of period	50,654			110,994
Cash and cash equivalents at end of period	$	69,998		$	151,624
	Three Months Ended
	April 3, 2016			March 29, 2015
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$	21,994		$	21,734
Income taxes paid, net	$	2,949		$	183
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued construction costs	$	783		$	2,870

The accompanying notes are an integral part of these unaudited interim Consolidated Financial Statements.

7

CEC ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Description of Business and Summary of Significant Accounting Policies:

Description of Business

The use of the terms “CEC Entertainment,” the “Company,” “we,” “us” and “our” throughout these unaudited notes to the interim Consolidated Financial Statements refer to CEC Entertainment, Inc. and its subsidiaries.

We currently operate and franchise Chuck E. Cheese’s and Peter Piper Pizza family dining and entertainment centers (also referred to as “stores”) in a total of 47 states and 12 foreign countries and territories. Our stores provide our guests with a variety of family entertainment and dining alternatives. All of our stores utilize a consistent restaurant-entertainment format that features both family dining and entertainment areas with the same general mix of food, beverages, entertainment and merchandise. The economic characteristics, products and services, preparation processes, distribution methods and types of customers are substantially similar for each of our stores. Therefore, we aggregate each store’s operating performance into one reportable segment for financial reporting purposes.

Basis of Presentation

The Company has a controlling financial interest in International Association of CEC Entertainment, Inc. (the “Association”), a VIE. The Association primarily administers the collection and disbursement of funds (the “Association Funds”) used for advertising, entertainment and media programs that benefit both us and our Chuck E. Cheese’s franchisees. We and our franchisees are required to contribute a percentage of gross sales to these funds and could be required to make additional contributions to fund any deficits that may be incurred by the Association. We include the Association in our Consolidated Financial Statements, as we concluded that we are the primary beneficiary of its variable interests because we (a) have the power to direct the majority of its significant operating activities; (b) provide it unsecured lines of credit; and (c) own the majority of the stores that benefit from the Association’s advertising, entertainment and media expenditures. The assets, liabilities and operating results of the Association are not material to our Consolidated Financial Statements.

Because the Association Funds are required to be segregated and used for specified purposes, we do not reflect franchisee contributions to the Association Funds as revenue, but rather record franchisee contributions as an offset to reported advertising expenses. Our contributions to the Association Funds are eliminated in consolidation. Contributions to the advertising, entertainment and media funds from our franchisees were $0.6 million for both the three months endedApril 3, 2016 and March 29, 2015. Cash balances held by the Association are restricted for use in our advertising, entertainment and media programs, and are recorded as “Restricted cash” on our Consolidated Balance Sheets at April 3, 2016.

The preparation of these unaudited Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our unaudited Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Interim Financial Statements

The accompanying Consolidated Financial Statements as of April 3, 2016 and for the three months ended April 3, 2016 and March 29, 2015 are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and, consequently, do not include all of the information and footnote disclosures required by GAAP. In the opinion of management, the Consolidated Financial Statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of its consolidated results of operations, financial position and cash flows as of the dates and for the periods presented in accordance with GAAP and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Our Consolidated Financial Statements include all necessary reclassification adjustments to conform prior year results to the current period presentation.

We reclassified $0.9 million of litigation costs related to the Merger (as defined in Note 7. “Commitments and Contingencies”) in our Consolidated Statement of Earnings for the three months endedMarch 29, 2015 from “General and administrative expenses” to “Transaction, severance and litigation related costs” to conform to the current period’s presentation.

Consolidated results of operations for interim periods are not necessarily indicative of results for the full year. The unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and

8

CEC ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

related notes included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2016, filed with the SEC on March 2, 2016.

Recently Issued Accounting Guidance

Accounting Guidance Not Yet Adopted:

In March 2016, The FASB issued ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20). This amendment provides a narrow scope exception to Liabilities - Extinguishment of Liabilities (Subtopic 405-20) that requires breakage for those liabilities to be accounted for in accordance with the breakage guidance in Revenue From Contracts With Customers (Topic 606). There is currently no guidance in GAAP, or pending guidance, regarding the derecognition of prepaid stored-value product liabilities within the scope of the amendments in this Update. Under the new guidance, if an entity expects to be entitled to a breakage amount for a liability resulting from the sale of a prepaid stored-value product, the entity shall derecognize the amount related to the expected breakage in proportion to the pattern of rights expected to be exercised by the product holder only to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. If an entity does not expect to be entitled to a breakage amount for a prepaid stored-value product, the entity shall derecognize the amount related to the breakage when the likelihood of the product holder exercising its remaining rights becomes remote. This change to an entity’s estimated breakage amount shall be accounted for as a change in accounting estimate. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. We are currently assessing the impact of adopting this new guidance on our Consolidated Financial Statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). This amendment will require that (i) all excess tax benefits and deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit on the income statement, (ii) the tax effects of exercised or vested awards should now be treated as discrete items in the reporting period in which they occur, and (iii) an entity should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period or not. On the statement of cash flows excess tax benefits should be classified along with other income tax cash flows as an operating activity. This amendment allows an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. The threshold for an award to qualify for equity classification permits withholding up to the maximum statutory tax rate in applicable jurisdictions, and the cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity on the statement of cash flows. Nonpublic entities can make an accounting policy election to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that meet certain conditions. For public entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. We are currently assessing the impact of adopting this new guidance on our Consolidated Financial Statements.

2. Property and Equipment:

Total depreciation and amortization expense was $29.0 million and $30.4 million for the three months ended April 3, 2016 and March 29, 2015, respectively, of which $1.4 million and $1.0 million, respectively, was included in “General and administrative expenses” in our Consolidated Statements of Earnings. Total depreciation and amortization expense for both the three months ended April 3, 2016 and March 29, 2015, includes approximately $0.5 million related to the amortization of franchise agreements (see Note 3. “Intangible Assets, Net”).

Asset Impairments

There were no impairment charges recognized during the three months ended April 3, 2016 and March 29, 2015, respectively.

9

CEC ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

3. Intangible Assets, Net:

The following table presents our indefinite and definite-lived intangible assets at April 3, 2016:

	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	26,700		—			26,700
Favorable lease agreements (1)	10	14,880		(4,200		)	10,680
Franchise agreements	25	53,300		(3,612		)	49,688
		$	494,880	$	(7,812	)	$	487,068

__________________

(1) In connection with the Merger and the acquisition of Peter Piper Pizza (“PPP”), 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.

Amortization expense related to favorable lease agreements was $0.5 million for both the three months endedApril 3, 2016 and March 29, 2015, and is included in “Rent expense” in our Consolidated Statements of Earnings. Amortization expense related to franchise agreements was $0.5 million for both the three months endedApril 3, 2016 and March 29, 2015, and is included in “General and administrative expenses” in our Consolidated Statements of Earnings.

Note 4. Accounts Payable:

Accounts payable consisted of the following as of the dates presented:

	April 3, 2016		January 3, 2016
	(in thousands)
Trade and other amounts payable	$	27,085	$	35,228
Book overdraft	8,495		8,862
Accounts Payable	$	35,580	$	44,090

Trade and other amounts payable represents amounts payable to our vendors, legal fee accruals and settlements payable. The book overdraft balance represents checks issued but not yet presented to banks.

5. Indebtedness and Interest Expense:

 Our long-term debt consisted of the following for the periods presented:

10

CEC ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	April 3, 2016			January 3, 2016
	(in thousands)
Term loan facility	$	744,800		$	746,700
Senior notes	255,000			255,000
Note payable	56			63
Total debt outstanding	999,856			1,001,763
Less:
Unamortized original issue discount	(2,641		)	(2,776		)
Deferred financing costs, net	(19,003		)	(20,004		)
Current portion	(7,656		)	(7,650		)
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	$	970,556		$	971,333

We were in compliance with the debt covenants in effect as of April 3, 2016 for both the Secured Credit Facilities and the senior notes. For further discussion regarding the debt covenants, see Secured Credit Facilities and Senior Unsecured Debt sections below.

Secured Credit Facilities

As of April 3, 2016, we had $744.8 million (excluding the original issue discount) outstanding under the Term loan facility, no borrowings outstanding under the revolving credit facility and $10.9 million of letters of credit issued but undrawn. The Secured Credit Facilities require scheduled quarterly payments on the term loan equal to 0.25% of the original principal amount of the Term loan from July 2014 to December 2020, with the remaining balance paid at maturity, February 14, 2021. Effective April 8, 2016, the balance of our letters of credit issued but undrawn was reduced to $9.9 million.

The term loan was issued net of $3.8 million of original issue discount. We also paid $17.8 million and $3.4 million in debt financing costs related to the term loan facility and revolving credit facility, respectively, which we capitalized in “Bank indebtedness and other long-term debt, net of deferred financing costs” on our Consolidated Balance Sheets. The original issue discount and deferred financing costs are amortized over the lives of the facilities and are included in “Interest expense” on our Consolidated Statements of Earnings.

Borrowings under the Secured Credit Facilities bear interest at a rate equal to, at our option, either (a) a London Interbank Offered Rate (“LIBOR”) determined by reference to the costs of funds for Eurodollar deposits for the interest period relevant to such borrowings, adjusted for certain additional costs, subject to a 1.00% floor in the case of term loans or (b) a base rate determined by reference to the highest of (i) the federal funds effective rate plus 0.50%; (ii) the prime rate of Deutsche Bank AG New York Branch; and (iii) the one-month adjusted LIBOR plus 1.00%, in each case plus an applicable margin. Effective March 4, 2016, the applicable margin for borrowings under the term loan facility stepped down from 3.25% to 3.00%, the applicable margin for borrowings under the revolving credit facility stepped down from 3.25% to 3.00%, and the applicable unused commitment fee rate stepped down from 0.5% to 0.375% based on our first lien senior secured leverage ratio. During the three months endedApril 3, 2016, the federal funds rate ranged from 0.25% to 0.38%, the prime rate was 3.25% and the one-month LIBOR ranged from 0.42% to 0.44%.

The weighted average effective interest rate incurred on our borrowings under our Secured Credit Facilities was 4.7% and 4.6% for the three months endedApril 3, 2016 and March 29, 2015, respectively, which includes amortization of debt issuance costs related to our Secured Credit Facilities, amortization of our term loan facility original issue discount and commitment and other fees related to our Secured Credit Facilities.

As of April 3, 2016, the borrowings under the revolving credit facility were less than 30% of the outstanding commitments; therefore, the springing financial maintenance covenant under our revolving credit facility was not in effect.

Senior Unsecured Debt

Our $255.0 million aggregate principal amount borrowings of 8.000% Senior Notes due 2022 (the “senior notes”) bear interest at a rate of 8.000% per year and mature on February 15, 2022.

Our obligations under the senior notes are fully and unconditionally guaranteed, jointly and severally, by our present and future direct and indirect wholly-owned material domestic subsidiaries that guarantee our Secured Credit Facilities.

11

CEC ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The weighted average effective interest rate incurred on borrowings under our senior notes was 8.3% for both the three months endedApril 3, 2016 and the three months endedMarch 29, 2015, which included amortization of debt issuance costs and other fees related to our senior notes.

12

CEC ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Interest Expense

Interest expense consisted of the following for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands)
Term loan facility (1)	$	8,157		$	7,907
Senior notes	5,157			5,157
Capital lease obligations	440			455
Sale leaseback obligations	2,758			2,783
Amortization of debt issuance costs	1,001			1,001
Other	(452		)	196
Total interest expense	$	17,061		$	17,499

 __________________

(1)    Includes amortization of original issue discount.

The weighted average effective interest rate incurred on our combined borrowings under our Secured Credit Facilities and senior notes was 5.6% and 5.5% for the three months endedApril 3, 2016, and March 29, 2015, respectively.

6. Fair Value of Financial Instruments:

The following table presents information on our financial instruments as of the periods presented:

	April 3, 2016				January 3, 2016
	Carrying Amount (1)		Estimated Fair Value		Carrying Amount (1)		Estimated Fair Value
	(in thousands)
Financial Liabilities:
Bank indebtedness and other long-term debt, less current portion	$	989,559	$	920,101	$	991,337	$	962,600

 _________________

(1)    Excluding net deferred financing costs

Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, our Secured Credit Facilities and our senior notes. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. The estimated fair value of our Secured Credit Facilities' term loan and senior notes was determined by using estimated market prices of our outstanding borrowings under our term loan facility and the senior notes, which are classified as Level 2 in the fair value hierarchy.

During the three months ended April 3, 2016 and March 29, 2015, there were no significant transfers among level 1, 2 or 3 fair value determinations.

7. Commitments and Contingencies:

Legal Proceedings

From time to time, we are involved in various inquiries, investigations, claims, lawsuits and other legal proceedings that are incidental to the conduct of our business. These matters typically involve claims from customers, employees or other

13

CEC ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

third parties involved in operational issues common to the retail, restaurant and entertainment industries. Such matters typically represent actions with respect to contracts, intellectual property, taxation, employment, employee benefits, personal injuries and other matters. A number of such claims may exist at any given time, and there are currently a number of claims and legal proceedings pending against us.

In the opinion of our management, after consultation with legal counsel, the amount of liability with respect to claims or proceedings currently pending against us is not expected to have a material effect on our consolidated financial condition, results of operations or cash flows. All necessary loss accruals based on the probability and estimate of loss have been recorded.

Employment-Related Litigation: On January 27, 2014, former CEC employee Franchesca Ford filed a purported class action lawsuit against the Company in San Francisco County Superior Court, California (the “Ford Litigation”). The plaintiff claims to represent other similarly-situated hourly non-exempt employees and former employees of the Company in California who were employed from January 27, 2010 to the present, and she alleges violations of California state wage and hour laws. In March 2014, the Company removed the Ford Litigation to the U.S. District Court for the Northern District of California, San Francisco Division, and subsequently defeated the plaintiff’s motion to remand the case to California state court. In May 2015, the parties reached an agreement to settle the lawsuit on a class-wide basis. The settlement would result in the plaintiffs’ dismissal of all claims asserted in the action, as well as certain related but unasserted claims, and grant of complete releases, in exchange for the Company’s settlement payment. On March 24, 2016, the Court issued an order granting preliminary approval of the class settlement and setting a final approval hearing regarding the settlement for August 2016. The settlement of this action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources.

On October 10, 2014, former store General Manager Richard Sinohui filed a purported class action lawsuit against the Company in the Superior Court of California, Riverside County (the “Sinohui Litigation”), claiming to represent other similarly-situated current and former General Managers of the Company in California during the period October 10, 2010 to the present. The lawsuit alleges CEC wrongfully classified current and former California General Managers as exempt from overtime protections, that such General Managers worked more than 40 hours a week without overtime premium pay, paid rest periods and paid meal periods, and that the Company failed to provide accurate itemized wage statements or to pay timely wages upon separation from employment, in violation of the California Labor Code, California Business and Professions Code, and the applicable Wage Order issued by the California Industrial Welfare Commission. Additionally, the plaintiff alleged that the Company failed to reimburse General Managers for certain business expenses, including for personal cell phone usage and mileage, in violation of the California Labor Code; he also asserted a claim for civil penalties under the California Private Attorneys General Act (“PAGA”). The plaintiff seeks an unspecified amount in damages. On December 5, 2014, the Company removed the Sinohui Litigation to the U.S. District Court for the Central District of California, Southern Division. On March 16, 2016, the Court issued an order denying in part and granting in part Plaintiff’s Motion for Class Certification. Specifically, the Court denied Plaintiff’s motion to the extent that he sought to certify a class on Plaintiff’s misclassification and wage statement claims, but certified a class with respect to Plaintiff’s claims that the Company had wrongfully failed to reimburse him for cell phone expenses and/or mileage. The Sinohui Litigation is set for trial in August 2016. We believe the Company has meritorious defenses to this lawsuit and we intend to vigorously defend it. While no assurance can be given as to the ultimate outcome of this matter, we currently believe that the final resolution of this action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources.

Litigation Related to the Merger: Following the January 16, 2014 announcement that the Company had entered into a merger agreement (the “Merger Agreement”), pursuant to which an entity controlled by Apollo Global Management, LLC and its subsidiaries merged with and into CEC Entertainment Inc., with CEC Entertainment Inc. surviving the merger (the “Merger”), four putative shareholder class actions were filed in the District Court of Shawnee County, Kansas, on behalf of purported stockholders of the Company, against the Company, its directors, Apollo, Parent and Merger Sub, in connection with the Merger Agreement and the transactions contemplated thereby. These actions were consolidated into one action in March 2014.

On July 21, 2015, a consolidated class action petition was filed as the operative consolidated complaint, asserting claims against CEC and its former directors, adding The Goldman Sachs Group (“Goldman Sachs”) as a defendant, and removing all Apollo entities as defendants (“Consolidated Class Action Petition”). The Consolidated Class Action Petition alleges that the Company’s directors breached their fiduciary duties to the Company’s stockholders in connection with their consideration and approval of the Merger Agreement by, among other things, conducting a deficient sales process, agreeing to an inadequate tender price, agreeing to certain provisions in the Merger Agreement, and filing materially deficient disclosures regarding the transaction. The Consolidated Class Action Petition also alleges that two members of the Company’s board who also served as the senior managers of the Company had material conflicts of interest and that Goldman Sachs aided and abetted the board’s breaches as a result of various conflicts of interest facing the bank. The Consolidated Class Action Petition seeks,

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(Unaudited)

among other things, to recover damages, attorneys’ fees and costs. On March 23, 2016, the Court conducted a hearing on the defendants’ Motion to Dismiss the Consolidated Class Action Petition, and the parties are currently awaiting the Court’s ruling. The Court has not yet set this case for trial. The Company believes the Consolidated Class Action Petition is without merit and intends to defend it vigorously. While no assurance can be given as to the ultimate outcome of the consolidated matter, we currently believe that the final resolution of the action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources.

8. Income Taxes:

Our income tax expense consists of the following for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands, except %)
Federal and state income taxes	$	11,263		$	12,174
Foreign income taxes	109			272
Income tax expense (1)	$	11,372		$	12,446
Effective rate	38.8		%	45.8		%

_________________

(1)    Including foreign taxes withheld.

Our effective income tax rate of 38.8% for the three months endedApril 3, 2016 differs from the statutory rate primarily due to the favorable impact of employment related federal income tax credits partially offset by the impact of non-deductible litigation costs related to the Merger. Our effective income tax rate of 45.8% for the three months endedMarch 29, 2015differs from the statutory rate primarily due to the unfavorable impact of non-deductible litigation and settlement costs related to the Merger, partially offset by benefits stemming from employment related income tax credits. Our liability for uncertain tax positions (excluding interest and penalties) was $3.4 million and $3.3 million as of April 3, 2016 and January 3, 2016, respectively, and if recognized would decrease our provision for income taxes by $1.3 million. Within the next twelve months, we could settle or otherwise conclude income tax audits. As such, it is reasonably possible that the liability for uncertain tax positions could decrease by as much as $0.2 million as a result of settlements with certain taxing authorities and expiring statutes of limitations within the next twelve months.

Total accrued interest and penalties related to unrecognized tax benefits as of April 3, 2016 and January 3, 2016, was $0.8 million and $1.7 million, respectively. On the Consolidated Balance Sheets, we include current interest related to unrecognized tax benefits in “Accrued interest,” current penalties in “Accrued expenses” and noncurrent accrued interest and penalties in “Other noncurrent liabilities.”

15

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(Unaudited)

9. Stock-Based Compensation Arrangements:

A summary of the option activity under the equity incentive plan as of April 3, 2016 and the activity for the three months endedApril 3, 2016 is presented below:

	Stock Options		Weighted Average Exercise Price (1)	Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
			($ per share)		($ in thousands)
Outstanding stock options, January 3, 2016	2,393,084		$8.59
Options Granted	101,110		$12.51
Options Exercised	(13,399	)	$8.86
Options Forfeited	(11,185	)	$10.91
Outstanding stock options, April 3, 2016	2,469,610		$8.78	8.14	10,141
Stock options expected to vest, April 3, 2016	2,222,650		$8.78	8.14	9,127
Exercisable stock options, April 3, 2016	327,726		$8.32	7.92	2,861

__________________

(1)    The weighted average exercise price reflects the original grant date fair value per option as adjusted for the dividend payment made in August 2015.

As of April 3, 2016, we had $2.9 million of total unrecognized share-based compensation expense related to unvested options, net of expected forfeitures, which is expected to be amortized over the remaining weighted-average period of 3.2 years.

The following table summarizes stock-based compensation expense and the associated tax benefit recognized in the Consolidated Financial Statements for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands)
Stock-based compensation costs	$	168		$	395
Portion capitalized as property and equipment (1)	(33		)	(4		)
Stock-based compensation expense recognized	$	135		$	391
Excess tax benefit recognized from exercise of stock-based compensation awards	$	4		$	—

 __________________

(1) We capitalize the portion of stock-based compensation costs related to our design, construction, facilities and legal departments that are directly attributable to our store development projects, such as the design and construction of a new store and the remodeling and expansion of our existing stores. Capitalized stock-based compensation cost attributable to our store development projects is included in “Property and equipment, net” in the Consolidated Balance Sheets.

16

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(Unaudited)

10. Stockholder’s Equity:

The following table summarizes the changes in stockholder’s equity during the three months ended April 3, 2016:

	Common Stock			Capital In Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Income
	Shares	Amount										Total
	(in thousands, except share information)
Balance at January 3, 2016	200	$	—	$	356,460	$	(144,598	)	$	(3,316	)	$	208,546
Net income (loss)	—	—		—		17,915			—			17,915
Other comprehensive income (loss)	—	—		—		—			754			754
Stock-based compensation costs	—	—		168		—			—			168
Excess tax benefit realized from exercise of stock options	—	—		4		—			—			4
Balance at April 3, 2016	200	$	—	$	356,632	$	(126,683	)	$	(2,562	)	$	227,387

11. Consolidating Guarantor Financial Information:

The senior notes issued by CEC Entertainment, Inc. (the “Issuer”) in conjunction with the Merger are our unsecured obligations and are fully and unconditionally, jointly and severally guaranteed by all of our 100% wholly-owned U.S. subsidiaries (the “Guarantors”). Our wholly-owned foreign subsidiaries and our less-than-wholly-owned U.S. subsidiaries are not a party to the guarantees (the “Non-Guarantors”). The following schedules present the condensed consolidating financial statements of the Issuer, Guarantors and Non-Guarantors, as well as consolidated results, for the periods presented:

17

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(Unaudited)

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	61,106		$	2,217		$	6,675		$	—		$	69,998
Restricted cash	—			—			4,142			—			4,142
Accounts receivable	14,416			2,811			8,944			(8,513		)	17,658
Inventories	23,031			3,087			307			—			26,425
Other current assets	14,608			4,219			2,003			—			20,830
Total current assets	113,161			12,334			22,071			(8,513		)	139,053
Property and equipment, net	570,343			34,587			8,707			—			613,637
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	21,156			465,912			—			—			487,068
Intercompany	129,033			27,913			—			(156,946		)	—
Investment in subsidiaries	422,049			—			—			(422,049		)	—
Other noncurrent assets	7,692			11,965			619			—			20,276
Total assets	$	1,695,896		$	604,125		$	31,397		$	(587,508	)	$	1,743,910
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	56		$	—		$	—		$	7,656
Capital lease obligations, current portion	430			—			5			—			435
Accounts payable and accrued expenses	80,532			13,381			8,290			—			102,203
Other current liabilities	3,452			328			—			—			3,780
Total current liabilities	92,014			13,765			8,295			—			114,074
Capital lease obligations, less current portion	14,867			—			67			—			14,934
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	970,556			—			—			—			970,556
Deferred tax liability	178,014			16,991			(1,421		)	—			193,584
Intercompany	1,479			138,099			25,881			(165,459		)	—
Other noncurrent liabilities	211,579			11,538			258			—			223,375
Total liabilities	1,468,509			180,393			33,080			(165,459		)	1,516,523
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	356,632			466,114			3,241			(469,355		)	356,632
Retained earnings (deficit)	(126,683		)	(42,382		)	(2,362		)	44,744			(126,683		)
Accumulated other comprehensive income (loss)	(2,562		)	—			(2,562		)	2,562			(2,562		)
Total stockholder's equity	227,387			423,732			(1,683		)	(422,049		)	227,387
Total liabilities and stockholder's equity	$	1,695,896		$	604,125		$	31,397		$	(587,508	)	$	1,743,910

18

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(Unaudited)

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of January 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	42,235		$	1,797		$	6,622		$	—		$	50,654
Accounts receivable	21,595			3,944			9,468			(9,071		)	25,936
Inventories	19,959			3,021			295			—			23,275
Other current assets	13,562			3,561			1,100			—			18,223
Total current assets	97,351			12,323			17,485			(9,071		)	118,088
Property and equipment, net	585,915			34,539			8,593			—			629,047
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	21,855			466,240			—			—			488,095
Intercompany	129,151			30,716			—			(159,867		)	—
Investment in subsidiaries	422,407			—			—			(422,407		)	—
Other noncurrent assets	4,318			8,940			671			—			13,929
Total assets	$	1,693,459		$	604,172		$	26,749		$	(591,345	)	$	1,733,035
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	50		$	—		$	—		$	7,650
Capital lease obligations, current portion	418			—			3			—			421
Accounts payable and accrued expenses	71,320			27,774			3,270			—			102,364
Other current liabilities	3,350			328			—			—			3,678
Total current liabilities	82,688			28,152			3,273			—			114,113
Capital lease obligations, less current portion	14,980			—			64			—			15,044
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	971,320			13			—			—			971,333
Deferred tax liability	184,083			17,867			(216		)	—			201,734
Intercompany	20,580			121,850			26,508			(168,938		)	—
Other noncurrent liabilities	211,262			10,784			219			—			222,265
Total liabilities	1,484,913			178,666			29,848			(168,938		)	1,524,489
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	356,460			466,114			3,241			(469,355		)	356,460
Retained earnings (deficit)	(144,598		)	(40,608		)	(3,024		)	43,632			(144,598		)
Accumulated other comprehensive income (loss)	(3,316		)	—			(3,316		)	3,316			(3,316		)
Total stockholder's equity	208,546			425,506			(3,099		)	(422,407		)	208,546
Total liabilities and stockholder's equity	$	1,693,459		$	604,172		$	26,749		$	(591,345	)	$	1,733,035

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(Unaudited)

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	107,822		$	12,788		$	1,592		$	—		$	122,202
Entertainment and merchandise sales	139,208			5,598			2,751			—			147,557
Total company store sales	247,030			18,386			4,343			—			269,759
Franchise fees and royalties	598			3,961			—			—			4,559
International Association assessments and other fees	255			615			11,958			(12,828		)	—
Total revenues	247,883			22,962			16,301			(12,828		)	274,318
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	26,644			3,297			580			—			30,521
Cost of entertainment and merchandise	8,119			445			186			—			8,750
Total cost of food, beverage, entertainment and merchandise	34,763			3,742			766			—			39,271
Labor expenses	63,734			3,999			1,310			—			69,043
Depreciation and amortization	26,563			607			459			—			27,629
Rent expense	22,257			1,333			560			—			24,150
Other store operating expenses	33,763			2,166			951			(870		)	36,010
Total company store operating costs	181,080			11,847			4,046			(870		)	196,103
Advertising expense	12,420			1,673			10,965			(11,958		)	13,100
General and administrative expenses	7,183			10,659			176			—			18,018
Transaction, severance and related litigation costs	701			48			—			—			749
Total operating costs and expenses	201,384			24,227			15,187			(12,828		)	227,970
Operating income (loss)	46,499			(1,265		)	1,114			—			46,348
Equity in earnings (loss) in affiliates	(1,112		)	—			—			1,112			—
Interest expense (income)	16,602			351			108			—			17,061
Income (loss) before income taxes	28,785			(1,616		)	1,006			1,112			29,287
Income tax expense (benefit)	10,870			165			337			—			11,372
Net income (loss)	$	17,915		$	(1,781	)	$	669		$	1,112		$	17,915
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	754			—			(754		)	754			754
Comprehensive income (loss)	$	18,669		$	(1,781	)	$	(85	)	$	1,866		$	18,669

20

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(Unaudited)

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended March 29, 2015
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	102,387		$	12,316		$	1,834		$	—		$	116,537
Entertainment and merchandise sales	137,510			4,110			3,124			—			144,744
Total company store sales	239,897			16,426			4,958			—			261,281
Franchise fees and royalties	805			3,422			—			—			4,227
International Association assessments and other fees	286			662			8,653			(9,601		)	—
Total revenues	240,988			20,510			13,611			(9,601		)	265,508
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	25,390			3,244			591			—			29,225
Cost of entertainment and merchandise	7,620			753			149			—			8,522
Total cost of food, beverage, entertainment and merchandise	33,010			3,997			740			—			37,747
Labor expenses	61,732			3,930			1,511			—			67,173
Depreciation and amortization	27,619			1,114			508			—			29,241
Rent expense	22,303			1,494			661			—			24,458
Other store operating expenses	31,509			1,830			1,128			(948		)	33,519
Total company store operating costs	176,173			12,365			4,548			(948		)	192,138
Advertising expense	9,141			1,060			9,904			(8,653		)	11,452
General and administrative expenses	4,893			11,316			117			—			16,326
Transaction, severance and related litigation costs	—			905			—			—			905
Total operating costs and expenses	190,207			25,646			14,569			(9,601		)	220,821
Operating income (loss)	50,781			(5,136		)	(958		)	—			44,687
Equity in earnings (loss) in affiliates	(7,769		)	—			—			7,769			—
Interest expense (income)	16,737			633			129			—			17,499
Income (loss) before income taxes	26,275			(5,769		)	(1,087		)	7,769			27,188
Income tax expense (benefit)	11,533			1,328			(415		)	—			12,446
Net income (loss)	$	14,742		$	(7,097	)	$	(672	)	$	7,769		$	14,742
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1,642		)	—			(1,642		)	1,642			(1,642		)
Comprehensive income (loss)	$	13,100		$	(7,097	)	$	(2,314	)	$	9,411		$	13,100

21

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Three Months Ended April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows provided by (used in) operating activities:	$	40,445		$	3,662		$	(335	)	$	—	$	43,772
Cash flows from investing activities:
Purchases of property and equipment	(18,342		)	(451		)	(30		)	—		(18,823		)
Development of internal use software	(841		)	(2,784		)	—			—		(3,625		)
Proceeds from sale of property and equipment	79			—			—			—		79
Cash flows provided by (used in) investing activities	(19,104		)	(3,235		)	(30		)	—		(22,369		)
Cash flows from financing activities:
Repayments on senior term loan	(1,900		)	—			—			—		(1,900		)
Repayments on note payable	—			(7		)	—			—		(7		)
Payments on capital lease obligations	(100		)	—			(1		)	—		(101		)
Payments on sale leaseback transactions	(474		)	—			—			—		(474		)
Excess tax benefit realized from stock-based compensation	4			—			—			—		4
Cash flows provided by (used in) financing activities	(2,470		)	(7		)	(1		)	—		(2,478		)
Effect of foreign exchange rate changes on cash	—			—			419			—		419
Change in cash and cash equivalents	18,871			420			53			—		19,344
Cash and cash equivalents at beginning of period	42,235			1,797			6,622			—		50,654
Cash and cash equivalents at end of period	$	61,106		$	2,217		$	6,675		$	—	$	69,998

22

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(Unaudited)

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Three Months Ended March 29, 2015
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	53,409		$	2,476		$	4,663		$	—		$	60,548
Cash flows from investing activities:
Acquisition of Peter Piper Pizza	(663		)	—			—			—			(663		)
Intercompany note	(96		)	2,500			—			(2,404		)	—
Purchases of property and equipment	(14,451		)	(1,023		)	(635		)	—			(16,109		)
Development of internal use software	—			(185		)	—			—			(185		)
Proceeds from sale of property and equipment	97			—			—			—			97
Cash flows provided by (used in) investing activities	(15,113		)	1,292			(635		)	(2,404		)	(16,860		)
Cash flows from financing activities:
Repayments on senior term loan	(1,900		)	—			—			—			(1,900		)
Repayments on Note Payable	—			(11		)							(11		)
Intercompany note	—			96			(2,500		)	2,404			—
Payments on capital lease obligations	(100		)	—			—			—			(100		)
Payments on sale leaseback transactions	(386		)	—			—			—			(386		)
Cash flows provided by (used in) financing activities	(2,386		)	85			(2,500		)	2,404			(2,397		)
Effect of foreign exchange rate changes on cash	—			—			(661		)	—			(661		)
Change in cash and cash equivalents	35,910			3,853			867			—			40,630
Cash and cash equivalents at beginning of period	97,020			6,427			7,547			—			110,994
Cash and cash equivalents at end of period	$	132,930		$	10,280		$	8,414		$	—		$	151,624

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CEC ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

12. Related Party Transactions:

CEC Entertainment reimburses Apollo Management, L.P. for certain out-of-pocket expenses incurred in connection with travel and Board of Directors related expenses. Expense reimbursements by CEC Entertainment to Apollo totaled $0.5 million for the three months ended April 3, 2016 and are included in “General and administrative expenses” in our Consolidated Statements of Earnings.

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

As used in this report, the terms “CEC Entertainment,” the “Company,” “we,” “us” and “our” refer to CEC Entertainment, Inc. and its subsidiaries.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide the readers of our Consolidated Financial Statements with a narrative from the perspective of our management on our consolidated financial condition, results of operations, liquidity and certain other factors that may affect our future results. Our MD&A should be read in conjunction with (i) our Consolidated Financial Statements and related notes included in Part I, Item 1. “Financial Statements” of this Periodic Report and (ii) Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Part II, Item 8. “Financial Statements and Supplementary Data” in our Annual Report on Form 10-K for the fiscal year ended January 3, 2016, filed with the SEC on March 2, 2016. Our MD&A includes the following sub-sections:

• Executive Summary;

• Overview of Operations;

• Results of Operations;

• Financial Condition, Liquidity and Capital Resources;

• Off-Balance Sheet Arrangements and Contractual Obligations;

• Critical Accounting Policies and Estimates;

• Recently Issued Accounting Guidance;

• Presentation of Non-GAAP Measures; and

• Cautionary Statement Regarding Forward-Looking Statements.

Executive Summary

We operate on a 52 or 53 week fiscal year that ends on the Sunday nearest to December 31. Each quarterly period has 13 weeks, except for a 53 week year when the fourth quarter has 14 weeks. Our fiscal year ending January 1, 2017 will consist of 52 weeks and our fiscal year endedJanuary 3, 2016 consisted of 53 weeks. As a result of the 53 week fiscal year in 2015, our 2016 fiscal year began one calendar week later than our 2015 fiscal year. In order to provide useful information and to better analyze our business, we have provided below comparable store sales presented on both a fiscal week basis and calendar week basis. Comparable store sales growth on a calendar week basis compares the results for the period from January 4, 2016 through April 3, 2016 (weeks 1 through 13 of our 2016 fiscal year) to the results for the period from January 5, 2015 through April 5, 2015 (weeks 2 through 14 of our 2015 fiscal year). We believe comparable store sales growth calculated on a same calendar week basis is more indicative of the operating trends in our business. However, we also recognize that comparable store sales growth calculated on a fiscal week basis is a useful measure when analyzing year-over-year changes in our financial statements.

First Quarter2016 Overview:

• Total revenues of $274.3 million in the first quarter of 2016 compared to total revenues of $265.5 million in the first quarter of 2015.

• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) was $82.1 million for the first quarter of 2016 compared to $80.7 million for the first quarter of 2015. For our definition of Adjusted EBITDA and a reconciliation of Net income to Adjusted EBITDA, see “Non-GAAP Financial Measures.”

• Net income of $17.9 million in the first quarter of 2016 compared to net income of $14.7 million in the first quarter of 2015.

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Overview of Operations

We currently operate and franchise family dining and entertainment centers under the names “Chuck E. Cheese’s” and “Peter Piper Pizza” in 47 states and 12 foreign countries and territories. Our stores provide our guests with a variety of family entertainment and dining alternatives. Our family leisure offerings include video games, skill games, rides, musical and comical shows and other attractions along with tokens, tickets and prizes for kids. Our wholesome family dining offerings are centered on made-to-order pizzas, salads, sandwiches, wings, appetizers, beverages and desserts.

The following table summarizes information regarding the number of Company-owned and franchised stores for the periods presented:

	Three Months Ended
	April 3, 2016		March 29, 2015
Number of Company-owned stores:
Beginning of period	556		559
New (1)	1		2
Acquired from franchisee	—		—
Closed (1)	(1	)	(1	)
End of period	556		560
Number of franchised stores:
Beginning of period	176		172
New	4		3
Acquired from franchisee	—		—
Closed	(1	)	—
End of period	179		175
Total number of stores:
Beginning of period	732		731
New	5		5
Acquired from franchisee	—		—
Closed	(2	)	(1	)
End of period	735		735

 __________________

(1) During the three months endedMarch 29, 2015, the number of new and closed Company owned stores included one store that was relocated.

Comparable store sales. We define “comparable store sales” as the sales for our domestic Company-owned stores that have been open for more than 18 months as of the beginning of each respective fiscal year or acquired stores we have operated for at least 12 months as of the beginning of fiscal year 2016. Comparable store sales is a key performance indicator used within our industry and is a critical factor when evaluating our performance, as it is indicative of acceptance of our strategic initiatives and local economic and consumer trends.

Revenues. Our primary source of revenues is sales at our Company-owned stores (“Company store sales”), which consist of the sale of food, beverages, game-play tokens, game play credits on game cards, and merchandise. A portion of our Company store sales are from sales of value-priced combination packages generally comprised of food, beverage and game tokens (“Package Deals”), which we promote through in-store menu pricing, our website and coupon offerings. We allocate the revenues recognized from the sale of our Package Deals and coupons between “Food and beverage sales” and “Entertainment and merchandise sales” based upon the price charged for each component when it is sold separately, or in limited circumstances, our best estimate of selling price if a component is not sold on a stand-alone basis, which we believe approximates each component’s fair value.

Food and beverage sales include all revenues recognized with respect to stand-alone food and beverage sales, as well as the portion of revenues allocated from Package Deals and coupons that relate to food and beverage sales. Entertainment and merchandise sales include all revenues recognized with respect to stand-alone game token sales, as well as a portion of revenues allocated from Package Deals and coupons that relate to entertainment and merchandise.

Franchise fees and royalties are another source of revenues. We earn monthly royalties from our franchisees based on a percentage of each franchise store’s sales. We also receive development and initial franchise fees to establish new franchised

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stores, as well as earn revenues from the sale of equipment and other items or services to franchisees. We recognize development and franchise fees as revenues when the franchise store has opened and we have substantially completed our obligations to the franchisee relating to the opening of a store.

Company store operating costs. Certain of our costs and expenses relate only to the operation of our Company-owned stores. These costs and expenses are listed and described below:

• Cost of food and beverage includes all direct costs of food, beverages and costs of related paper and birthday supplies, less rebates from suppliers;

• Cost of entertainment and merchandise includes all direct costs of prizes provided and merchandise sold to our customers, as well as the cost of tickets dispensed to customers;

• Labor expenses consist of salaries and wages, bonuses, related payroll taxes and benefits for store personnel;

• Depreciation and amortization includes expenses that are directly related to our Company-owned stores’ property and equipment, including leasehold improvements, game and ride equipment, furniture, fixtures and other equipment;

• Rent expense includes lease costs for Company-owned stores, excluding common occupancy costs (e.g., common area maintenance (“CAM”) charges and property taxes); and

• Other store operating expenses primarily include utilities, repair and maintenance costs, liability and property insurance, CAM charges, property taxes, credit card processing fees, licenses, preopening expenses, store asset disposal gains and losses and all other costs directly related to the operation of a store.

The “Cost of food and beverage” and “Cost of entertainment and merchandise” mentioned above exclude any allocation of (a) store employee payroll, related payroll taxes and benefit costs; (b) depreciation and amortization expense; (c) rent expense; and (d) other direct store operating expenses associated with the operation of our Company-owned stores. We believe that presenting store-level labor costs, depreciation and amortization expense, rent expense and other store operating expenses in the aggregate provides the most informative financial reporting presentation. Our rationale for excluding such costs is as follows:

• our store employees are trained to sell and attend to both our dining and entertainment operations. We believe it would be difficult and potentially misleading to allocate labor costs between “Food and beverage sales” and “Entertainment and merchandise sales”; and

• while certain assets are individually dedicated to either our food service operations or game activities, we also have significant capital investments in shared depreciating assets, such as leasehold improvements, point-of-sale systems and showroom fixtures. Therefore, we believe it would be difficult and potentially misleading to allocate depreciation and amortization expense or rent expense between “Food and beverage sales” and “Entertainment and merchandise sales.”

“Cost of food and beverage” and “Cost of entertainment and merchandise,” as a percentage of Company store sales, are influenced both by the cost of products and by the overall mix of our Package Deals and coupon offerings. “Entertainment and merchandise sales” have higher margins than “Food and beverage sales.”

Advertising expense. Advertising expense includes production costs for television commercials, newspaper inserts, Internet advertising, coupons, media expenses for national and local advertising and consulting fees, partially offset by contributions from our franchisees.

General and administrative expenses. General and administrative expenses represent all costs associated with operating our corporate office, including regional and district management and corporate personnel payroll and benefits, depreciation and amortization of corporate assets, back-office support systems and other administrative costs not directly related to the operation of our Company-owned stores.

Adjusted EBITDA. We define Adjusted EBITDA as earnings before interest, income taxes, depreciation and amortization adjusted to exclude unusual items and other adjustments required or permitted in calculating covenant compliance under the indenture governing our senior notes and/or our Secured Credit Facilities (see discussion of our senior notes and Secured Credit Facilities under “Financial Condition, Liquidity and Capital Resources - Debt Financing”). Adjusted EBITDA is a measure used by management to evaluate our performance. Adjusted EBITDA provides additional information about certain trends, material non-cash items and unusual items that we do not expect to continue at the same level in the future, as well as other items.

Seasonality and Variation in Quarterly Results

Our operating results fluctuate seasonally due to the timing of school vacations, holidays and changing weather conditions. As a result, we typically generate higher sales volumes during the first quarter of each fiscal year. School operating

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schedules, holidays and weather conditions may affect sales volumes in some operating regions differently than others. Because of the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

Results of Operations

The following table summarizes our principal sources of Total company store sales expressed in dollars and as a percentage of Total company store sales for the periods presented:

	Three Months Ended
	April 3, 2016				March 29, 2015
Food and beverage sales	$	122,202	45.3	%	$	116,537	44.6	%
Entertainment and merchandise sales	147,557		54.7	%	144,744		55.4	%
Total company store sales	$	269,759	100.0	%	$	261,281	100.0	%

The following tables summarize our revenues and expenses expressed in dollars and as a percentage of Total revenues (except as otherwise noted) for the periods presented:

	Three Months Ended
	April 3, 2016				March 29, 2015
	(in thousands, except percentages)
Total company store sales	$	269,759	98.3	%	$	261,281	98.4	%
Franchise fees and royalties	4,559		1.7	%	4,227		1.6	%
Total revenues	274,318		100.0	%	265,508		100.0	%
Company store operating costs:
Cost of food and beverage (1)	30,521		25.0	%	29,225		25.1	%
Cost of entertainment and merchandise (2)	8,750		5.9	%	8,522		5.9	%
Total cost of food, beverage, entertainment and merchandise (3)	39,271		14.6	%	37,747		14.4	%
Labor expenses (3)	69,043		25.6	%	67,173		25.7	%
Depreciation and amortization (3)	27,629		10.2	%	29,241		11.2	%
Rent expense (3)	24,150		9.0	%	24,458		9.4	%
Other store operating expenses (3)	36,010		13.3	%	33,519		12.8	%
Total company store operating costs (3)	196,103		72.7	%	192,138		73.5	%
Other costs and expenses:
Advertising expense	13,100		4.8	%	11,452		4.3	%
General and administrative expenses	18,018		6.6	%	16,326		6.1	%
Transaction, severance and related litigation costs	749		0.3	%	905		0.3	%
Total operating costs and expenses	227,970		83.1	%	220,821		83.2	%
Operating income (loss)	46,348		16.9	%	44,687		16.8	%
Interest expense	17,061		6.2	%	17,499		6.6	%
Income (loss) before income taxes	$	29,287	10.7	%	$	27,188	10.2	%

 __________________

(1) Percent amount expressed as a percentage of Food and beverage sales.

(2) Percent amount expressed as a percentage of Entertainment and merchandise sales.

(3) Percent amount expressed as a percentage of Total company store sales.

Due to rounding, percentages presented in the table above may not sum to total. The percentage amounts for the components of Cost of food and beverage and the Cost of entertainment and merchandise may not sum to total due to the fact that Cost of food and beverage and Cost of entertainment and merchandise are expressed as a percentage of related Food and beverage and Entertainment and merchandise sales, as opposed to Total company store sales.

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Three months ended April 3, 2016 Compared to the Three months ended March 29, 2015

Revenues

Company store sales increased$8.5 million, or 3.2%, to $269.8 million during the first quarter of 2016 compared to $261.3 million during the first quarter of 2015. On a same calendar week basis comparable store sales increased6.0%. We believe comparable store sales calculated on a same calendar week basis is more indicative of the operating trends in our business. On a fiscal week basis, comparable store sales increased3.2% during the first quarter of 2016, primarily due to the effect of an additional operating week in our 2015 fiscal year, which caused the seasonally strong first week of the 2016 calendar year to shift into the fourth quarter of 2015. Company store sales were also impacted by approximately $0.4 million of incremental deferred revenue as a result of the implementation of our proprietary card system, which we refer to as PlayPass.

Company Store Operating Costs

The cost of food, beverage, entertainment and merchandise, as a percentage of Total company store sales, was 14.6% in the first quarter of 2016 compared to 14.4% in the first quarter of 2015. The increase in the cost of food, beverage, entertainment and merchandise on a percentage basis in the first quarter of 2016 was impacted by an increase in the average price of cheese compared to the first quarter of 2015.

Labor expenses, as a percentage of Total company store sales, were 25.6% in the first quarter of 2016 compared to 25.7% in the first quarter of 2015. The decrease in labor expenses on a percentage basis in the first quarter of 2016 reflects improved labor management, as we were able to minimize additional labor hours required to serve the increased number of guests visiting our stores, offset by increases in minimum wage rates in certain states over the past year.

Depreciation and amortization expense was $27.6 million in the first quarter of 2016 compared to $29.2 million in the first quarter of 2015. The decrease in depreciation and amortization in the first quarter of 2016 is primarily due to higher depreciation expense during the first quarter of 2015 from certain property, plant and equipment assets that were assigned short useful lives from the acquisition method of accounting as a result of the Merger.

Other store operating expenses, as a percentage of Total company store sales, were 13.3% in the first quarter of 2016 compared to 12.8% in the first quarter of 2015, primarily due to an increase in self-insurance expense associated with general liability claims and an increase in credit card fees as a result of higher sales volumes.

Advertising Expense

Advertising expense increased from $11.5 million in the first quarter of 2015 to $13.1 million in the first quarter of 2016. As a percentage of Total revenues, advertising expense was 4.8% and 4.3%, respectively, for the first quarter of 2016 and the first quarter of 2015. The first quarter of 2016 reflects an increase in digital advertising, partially offset by a decrease in production costs in the first quarter of 2016.

General and Administrative Expenses

General and administrative expenses were $18.0 million in the first quarter of 2016 compared to $16.3 million in the first quarter of 2015. The increase in general and administrative expenses in the first quarter of 2016 is primarily due to an increase in professional fees primarily related to IT and other corporate initiatives and an increase in incentive compensation as a result of higher sales and profit performance.

Income Taxes

Our effective income tax rate was 38.8% for the first quarter of 2016 compared to an effective income tax rate of 45.8% for the first quarter of 2015. The effective income tax rate of 38.8% for the three months endedApril 3, 2016 differs from the statutory rate primarily due to the favorable impact of employment related federal income tax credits partially offset by the impact of non-deductible litigation costs related to the Merger. Our effective income tax rate of 45.8% for the three months endedMarch 29, 2015differs from the statutory rate primarily due to the unfavorable impact of non-deductible litigation and settlement costs related to the Merger, partially offset by benefits stemming from employment related income tax credits.

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Financial Condition, Liquidity and Capital Resources

Overview of Liquidity

We finance our business activities through cash flows provided by our operations. The primary components of working capital are as follows:

• our store customers pay for their purchases in cash or credit cards at the time of the sale and the cash from these sales is typically received before our related accounts payable to suppliers and employee payroll becomes due;

• frequent inventory turnover results in a limited investment required in inventories; and

• our accounts payable are generally due within five to 30 days.

As a result of these factors, our requirement for working capital is not significant and we are able to operate with a net working capital deficit (current liabilities in excess of current assets).

Sources and Uses of Cash

The following tables present summarized consolidated cash flow information that we believe is helpful in evaluating our liquidity and capital resources as of and for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands)
Net cash provided by operating activities	$	43,772		$	60,548
Net cash used in investing activities	(22,369		)	(16,860		)
Net cash provided by (used in) financing activities	(2,478		)	(2,397		)
Effect of foreign exchange rate changes on cash	419			(661		)
Change in cash and cash equivalents	$	19,344		$	40,630
Interest paid	$	21,994		$	21,734
Income taxes paid (refunded), net	$	2,949		$	183

	April 3, 2016		January 3, 2016
	(in thousands)
Cash and cash equivalents	$	69,998	$	50,654
Restricted cash	$	4,142	$	—
Term loan facility	$	744,800	$	746,700
Senior notes	$	255,000	$	255,000
Note payable	$	56	$	63
Available unused commitments under revolving credit facility	$	139,100	$	139,100

Our cash and cash equivalents totaled $70.0 million as of April 3, 2016. Cash and cash equivalents as of April 3, 2016 includes $6.7 million of undistributed income from our Canadian subsidiary that we consider to be permanently invested.

Cash that is held by the Association and restricted for use in our advertising, entertainment and media funds was $4.1 million as of April 3, 2016.

Sources and Uses of Cash - Three months ended April 3, 2016 Compared to the Three months ended March 29, 2015

Net cash provided by operating activities was $43.8 million in the first quarter of 2016 compared to $60.5 million in the first quarter of 2015. The reduction in net cash provided by operating activities is primarily due to the payment of a Merger related litigation settlement and fluctuations in our working capital.

Net cash used in investing activities was $22.4 million in the first quarter of 2016 compared to $16.9 million in the first quarter of 2015. Net cash used in investing activities in the first quarter of 2016 and the first quarter of 2015 relates primarily to store related capital expenditures.

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Net cash used in financing activities was $2.5 million in the first quarter of 2016 and $2.4 million in the first quarter of 2015, relating primarily to principal payments on our term loan and other lease related obligations.

Debt Financing

Secured Credit Facilities

Our Secured Credit Facilities include a $760.0 million term loan facility with a maturity date of February 14, 2021 (the “term loan facility”) and a $150.0 million senior secured revolving credit facility with a maturity date of February 14, 2019, which includes a letter of credit sub-facility and a $30.0 million swingline loan sub-facility (the “revolving credit facility”). The Secured Credit Facilities require scheduled quarterly payments on the term loan equal to 0.25% of the original principal amount of the term loan from July 2014 to December 2020, with the balance paid at maturity. As of both April 3, 2016 and January 3, 2016, we had no borrowings outstanding under the revolving credit facility, and we had $10.9 million of letters of credit issued but undrawn under the facility. Effective April 8, 2016, the balance of our letters of credit issued but undrawn was reduced to $9.9 million.

All borrowings under our revolving credit facility are subject to the satisfaction of customary conditions, including the absence of a default and the accuracy of representations and warranties.

Borrowings under the Secured Credit Facilities bear interest at a rate equal to, at our option, either (a) a London Interbank Offered Rate (“LIBOR”) determined by reference to the costs of funds for Eurodollar deposits for the interest period relevant to such borrowings, adjusted for certain additional costs, subject to a 1.00% floor in the case of term loans or (b) a base rate determined by reference to the highest of (i) the federal funds effective rate plus 0.50%; (ii) the prime rate of Deutsche Bank AG New York Branch; and (iii) the one-month adjusted LIBOR plus 1.00%; in each case plus an applicable margin. The base applicable margin is 3.25% with respect to LIBOR borrowings and 2.25% with respect to base rate borrowings under the term loan facility and base rate borrowings and swingline borrowings under the revolving credit facility. The applicable margin for borrowings under the term loan facility is subject to one step down from 3.25% to 3.00% based on our net first lien senior secured leverage ratio, and the applicable margin for borrowings under the revolving credit facility is subject to two step-downs from 3.25% to 3.00% and 2.75% based on our net first lien senior secured leverage ratio. During the three months endedApril 3, 2016, the federal funds rate ranged from 0.25% to 0.38%, the prime rate was 3.25% and the one-month LIBOR ranged from 0.42% to 0.44%.

In addition to paying interest on outstanding principal under the Secured Credit Facilities, we are required to pay a commitment fee to the lenders under the revolving credit facility in respect to the unutilized commitments thereunder. The base applicable commitment fee rate under the revolving credit facility is 0.5% per annum and is subject to one step-down from 0.5% to 0.375% based on our first lien senior secured leverage ratio. We are also required to pay customary agency fees, as well as letter of credit participation fees computed at a rate per annum equal to the applicable margin for LIBOR rate borrowings on the dollar equivalent of the daily stated amount of outstanding letters of credit, plus such letter of credit issuer’s customary documentary and processing fees and charges and a fronting fee computed at a rate equal to 0.125% per annum on the daily stated amount of letter of credit.

As a result of a decrease in our net first lien senior secured leverage ratio reported for the period ending January 3, 2016, effective March 4, 2016, the applicable margin for borrowings under the term loan facility stepped down from 3.25% to 3.00%, the applicable margin for borrowings under the revolving credit facility stepped down from 3.25% to 3.00%, and the applicable commitment fee rate stepped down from 0.5% to 0.375%.

The weighted average effective interest rate incurred on our borrowings under our Secured Credit Facilities was 4.7% and 4.6% for the three months endedApril 3, 2016 and March 29, 2015, respectively, which includes amortization of debt issuance costs related to our Secured Credit Facilities, amortization of our term loan facility original issue discount and commitment and other fees related to our Secured Credit Facilities.

Our revolving credit facility includes a springing financial maintenance covenant that requires our net first lien senior secured leverage ratio not to exceed 6.25 to 1.00 (the ratio of consolidated net debt secured by first-priority liens on the collateral to last twelve month’s EBITDA, as defined in the Senior Credit Facilities). The covenant will be tested quarterly if the revolving credit facility is more than 30% drawn (excluding outstanding letters of credit) and will be a condition to drawings under the revolving credit facility that would result in more than 30% drawn thereunder. As of April 3, 2016, there were no borrowings under the revolving credit facility; therefore, the springing financial maintenance covenant under our revolving credit facility was not in effect.

The Secured Credit Facilities also contain customary affirmative covenants and events of default, and the negative covenants limit our ability to, among other things: incur additional debt or issue certain preferred shares; create liens on certain assets; make certain loans or investments (including acquisitions); pay dividends on or make distributions in respect of our capital stock or make other restricted payments; consolidate, merge, sell or otherwise dispose of all or substantially all of our

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assets; sell assets; enter into certain transactions with our affiliates; enter into sale-leaseback transactions; change our lines of business; restrict dividends from our subsidiaries or restrict liens; change our fiscal year; and modify the terms of certain debt or organizational agreements.

All obligations under the Secured Credit Facilities are unconditionally guaranteed by Parent on a limited-recourse basis and each of our existing and future direct and indirect material, wholly-owned domestic subsidiaries, subject to certain exceptions. The obligations are secured by a pledge of our capital stock and substantially all of our assets and those of each subsidiary guarantor, including capital stock of the subsidiary guarantors and 65% of the capital stock of the first-tier foreign subsidiaries that are not subsidiary guarantors, in each case subject to exceptions. Such security interests will consist of a first priority lien with respect to the collateral.

Senior Unsecured Debt

Our senior unsecured debt consists of $255.0 million aggregate principal amount borrowings of 8.000% Senior Notes due 2022 (the “senior notes”) bearing interest at a rate of 8.000% per year and maturing on February 15, 2022. The senior notes are registered under the Securities Act, do not bear legends restricting their transfer and are not entitled to registration rights under our registration rights agreement. On or after February 15, 2017, we may redeem some or all of the senior notes at certain redemption prices set forth in the indenture governing the senior notes (the “indenture”). Prior to February 15, 2017, we may redeem (i) up to 40% of the original aggregate principal amount of the senior notes with the net cash proceeds of one or more equity offerings at a price equal to 108% of the principal amount thereof, plus accrued and unpaid interest, or (ii) some or all of the notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, plus the applicable “make-whole” premium set forth in the indenture.

We paid $6.4 million in debt issuance costs related to the senior notes, which we capitalized in “Bank indebtedness and other long-term debt, net of deferred financing costs” on our Consolidated Balance Sheets. The deferred financing costs are amortized over the life of the senior notes and are included in “Interest expense” on our Consolidated Statements of Earnings.

Our obligations under the senior notes are fully and unconditionally guaranteed, jointly and severally, by our present and future direct and indirect wholly-owned material domestic subsidiaries that guarantee our Secured Credit Facilities.

The indenture contains restrictive covenants that limit our ability to, among other things: incur additional debt or issue certain preferred shares; create liens on certain assets; make certain loans or investments (including acquisitions); pay dividends on or make distributions in respect of our capital stock or make other restricted payments; consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; sell assets; enter into certain transactions with our affiliates; and restrict dividends from our subsidiaries.

The weighted average effective interest rate incurred on borrowings under our senior notes was 8.3% for both the three months endedApril 3, 2016 and March 29, 2015, which included amortization of debt issuance costs and other fees related to our senior notes.

Capital Expenditures

We intend to continue to focus our future capital expenditures on reinvestment into our existing Company-owned Chuck E. Cheese’s and PPP stores through various planned capital initiatives and the development or acquisition of additional Company-owned stores. During the first three months of 2016, we completed 73 game enhancements and one major remodel, and we opened one new domestic Company-owned Chuck E. Cheese’s store. We have funded and continue to fund our capital expenditures through existing cash flows from operations. Capital expenditures in the first three months of 2016 totaled approximately $22.2 million.

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The following table reconciles the approximate total capital spend by initiative to our Consolidated Statements of Cash Flows for the periods presented:

	Three Months Ended
	April 3, 2016		March 29, 2015
	(in thousands)
Growth capital spend (1)	$	9,503	$	7,590
Maintenance capital spend (2)	8,304		8,461
IT capital spend	4,365		230
Total Capital Spend	$	22,172	$	16,281

__________________

(1)    Growth capital spend includes major remodels, store expansions, major attractions and new store development, including relocations and franchise

acquisitions.

(2)    Maintenance capital spend includes game enhancements, general store capital expenditures and corporate capital expenditures.

We currently estimate our capital expenditures in 2016 will total approximately $105 million to $115 million. These capital expenditures consist of the following: (i) approximately $30 million for maintenance capital which includes game enhancements and general store maintenance capital expenditures; (ii) approximately $10 million for investments in one-time information technology initiatives, (iii) approximately $40 million to $45 million for various growth initiatives, including new store openings and major remodels, and (iv) approximately $25 million to $30 million related to our PlayPass initiative. In addition we are re-evaluating our store design for Chuck E. Cheese’s stores as a part of an effort to launch a new store prototype. We expect to fund our capital expenditures through cash flows from operations and existing cash on hand.

Off-Balance Sheet Arrangements and Contractual Obligations

As of April 3, 2016, we had no off-balance sheet financing arrangements as described in Regulation S-K Item 303(a)(4)(ii).

For information regarding our contractual obligations, refer to “Off Balance Sheet Arrangements and Contractual Obligations” in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended January 3, 2016, filed with the SEC on March 2, 2016.

See further discussion of our indebtedness and future debt obligations in “Financial Condition, Liquidity and Capital Resources - Debt Financing” of this report. There have been no other material changes to our contractual obligations since January 3, 2016.

Critical Accounting Policies and Estimates

Information with respect to our critical accounting policies and estimates, which we believe could have the most significant effect on our reported consolidated results and require difficult, subjective or complex judgment by management are described under “Critical Accounting Policies and Estimates” in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended January 3, 2016, filed with the SEC on March 2, 2016. As of April 3, 2016, there has been no material change to the information concerning our critical accounting policies and estimates.

Recently Issued Accounting Guidance

Refer to Note 1 “Description of Business and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in Part I, Item 1. “Financial Statements” of this Periodic Report for a description of recently issued accounting guidance.

33

Non-GAAP Financial Measures

Adjusted EBITDA, a measure used by management to assess operating performance, is defined as Earnings Before Interest, Taxes, Depreciation and Amortization adjusted to exclude unusual items and other adjustments required or permitted in calculating covenant compliance under the indenture and/or the Secured Credit Facilities.

We have provided Adjusted EBITDA in this report because we believe it provides investors with additional information to measure our performance. We believe that the presentation of Adjusted EBITDA is appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future, as well as other items. Further, we believe Adjusted EBITDA provides a meaningful measure of operating profitability because we use it for evaluating our business performance and understanding certain significant items.

Adjusted EBITDA is not a presentation made in accordance with GAAP, and our use of the term Adjusted EBITDA varies from others in our industry. Adjusted EBITDA should not be considered as an alternative to operating income or any other performance measures derived in accordance with GAAP as measures of operating performance, or cash flows as measures of liquidity. Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. For example, Adjusted EBITDA:

• excludes certain tax payments that may represent a reduction in cash available to us;

• does not reflect any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future;

• does not reflect changes in, or cash requirements for, our working capital needs;

• does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;

• does not include one-time expenditures;

• excludes the impairment of Company-owned stores or impairments of long-lived assets, and gains or losses upon disposal of property or equipment, and inventory obsolescence charges outside of the ordinary course of business;

• excludes non-cash equity based compensation expense;

• reflects the removal of the non-cash portion of rent expense relating to the impact of straight-line rent and the amortization of cash incentives and allowances received from landlords, plus the actual cash received from landlords incentives and allowances in the period;

• reflects franchise fees received on a cash basis post-acquisition;

• excludes the purchase accounting impact to unearned revenue at the time of the acquisition;

• excludes start-up and marketing costs incurred prior to the opening of new Company-owned stores;

• excludes non-recurring income and expenses primarily related to (i) non-recurring franchise fee income; (ii) severance costs; (iii) integration costs in connection with acquisitions; (iv) employee and other legal claims and settlements; (v) costs incurred in connection with the relocation of our corporate offices; (vi) actual cash landlord incentives received on our new corporate offices; (vii) sales and use tax refunds relating to prior periods; (viii) miscellaneous professional fees; and (ix) certain insurance recoveries relating to prior year expense;

• includes estimated cost savings, including some adjustments not permitted under Article 11 of Regulation S-X; and

• does not reflect the impact of earnings or charges resulting from matters that we, the initial purchasers of the senior notes, the current holders of the senior notes or the lenders under the Secured Credit Facilities may consider not to be indicative of our ongoing operations.

34

Our definition of Adjusted EBITDA allows us to add back certain non-cash and non-recurring charges or costs that are deducted in calculating Net income. However, these are expenses that may recur, vary greatly and are difficult to predict. They can represent the effect of long-term strategies as opposed to short-term results. In addition, certain of these expenses can represent the reduction of cash that could be used for other corporate purposes. Because of these limitations, we rely primarily on our GAAP results and use Adjusted EBITDA only as supplemental information.

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands)
Total revenues	$	274,318		$	265,508
Net income as reported	$	17,915		$	14,742
Interest expense	17,061			17,499
Income tax expense	11,372			12,446
Depreciation and amortization	28,998			30,398
Non-cash impairments, gain or loss on disposal (1)	2,177			1,244
Non-cash stock-based compensation (2)	135			391
Rent expense book to cash (3)	2,160			2,211
Franchise revenue, net cash received (4)	(109		)	(65		)
Impact of purchase accounting (5)	199			232
Store pre-opening costs (6)	221			244
One-time items (7)	1,902			1,351
Cost savings initiatives (8)	62			—
Adjusted EBITDA	$	82,093		$	80,693
Adjusted EBITDA as a percent of total revenues	29.9		%	30.4		%

__________________

(1) Relates primarily to (i) the impairment of Company-owned stores or impairments of long lived assets; (ii) gains or losses upon disposal of property or equipment; and (iii) inventory obsolescence charges outside of the ordinary course of business.

(2) Represents non-cash equity-based compensation expense.

(3) Represents (i) the removal of the non-cash portion of rent expense relating to the impact of straight-line rent and the amortization of cash incentives and allowances received from landlords, plus (ii) the actual cash received from landlords incentives and allowances in the period in which it was received.

(4) Represents the actual cash received for franchise fees received in the period for post-acquisition franchise development agreements, which are not recorded as revenue until the franchise store is opened.

(5) Represents revenue related to unearned gift cards and unearned franchise fees that were removed in purchase accounting, and therefore were not recorded as revenue.

(6) Relates to start-up and marketing costs incurred prior to the opening of new Company-owned stores and generally consists of payroll, recruiting, training, supplies and rent incurred prior to store opening.

(7) Represents non-recurring income and expenses primarily related to (i) transaction costs associated with the Merger, Sale Leaseback transaction and PPP acquisition; (ii) severance expense and executive termination benefits; (iii) integration costs in connection with the PPP acquisition; (iv) employee and other legal claims and settlements; (v) costs incurred in connection with the relocation of our corporate offices; (vi) actual cash landlord incentives received on our new corporate offices; (vii) sales and use tax refunds relating to prior periods; (viii) miscellaneous professional fees; and (ix) certain insurance recoveries relating to prior year expense.

(8) Relates to estimated net cost savings primarily from (i) the change from public to private ownership upon the closing of the Acquisition and elimination of public equity securities, with reductions in investor relations activities, directors fees and certain legal and other securities and filing costs; (ii) the full-year effect of cost savings initiatives implemented by the Company in 2013; (iii) the estimated effect of cost savings following the Merger from participation in Sponsor-leveraged purchasing programs including various supplies, travel and communications purchasing categories; (iv) the net impact of labor savings associated with changes in management; (v) cost savings in connection with the relocation of the Company’s corporate offices in 2015; (vi) labor savings associated with planned headcount reductions in 2015; (vii) estimated cost savings associated with the integration of PPP; (viii) the full-year effect of costs savings associated with upgrades to our telephone communication systems; and net of (ix) the estimated incremental costs associated with our new IT systems and post-closing insurance arrangements.

35

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this report, other than historical information, may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, and are subject to various risks, uncertainties and assumptions. Statements that are not historical in nature, and which may be identified by the use of words such as “may,” “should,” “could,” “believe,” “predict,” “potential,” “continue,” “plan,” “intend,” “expect,” “anticipate,” “future,” “project,” “estimate” and similar expressions (or the negative of such expressions) are forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future events and, therefore, involve a number of assumptions, risks and uncertainties, including the risk factors described in Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended January 3, 2016, filed with the SEC on March 2, 2016. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ from those anticipated, estimated or expected. Factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to:

• Negative publicity concerning food quality, health, general safety and other issues, and changes in consumer preferences;

• The success of our capital initiatives, including new store development and existing store evolution;

• Our ability to successfully implement our marketing strategy;

• Competition in both the restaurant and entertainment industries;

• Economic uncertainty and changes in consumer discretionary spending in the United States and Canada;

• Expansion in international markets;

• Our ability to generate sufficient cash flow to meet our debt service payments;

• Increases in food, labor and other operating costs;

• Disruptions of our information technology systems and technologies, including, but not limited to, data security breaches;

• Any disruption of our commodity distribution system;

• Our dependence on a limited number of suppliers for our games, rides, entertainment-related equipment, redemption prizes and merchandise;

• Product liability claims and product recalls;

• Government regulations;

• Litigation risks;

• Adverse effects of local conditions, natural disasters and other events;

• Fluctuations in our quarterly results of operations due to seasonality;

• Inadequate insurance coverage;

• Loss of certain key personnel;

• Our ability to adequately protect our trademarks or other proprietary rights;

• Risks in connection with owning and leasing real estate; and

• Our ability to successfully integrate the operations of companies we acquire.

The forward-looking statements made in this report relate only to events as of the date on which the statements are made in this report. Except as may be required by law, we undertake no obligation to update our forward-looking statements to reflect events and circumstances after the date on which the statements were made or to reflect the occurrence of unanticipated events.

36

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to various types of market risk in the normal course of business, including the impact of interest rates, commodity price changes and foreign currency fluctuation.

Interest Rate Risk

We are exposed to market risk from changes in the variable interest rates related to borrowings from our Secured Credit Facilities. All of our borrowings outstanding under the Secured Credit Facilities as of April 3, 2016 of $744.8 million accrue interest at variable rates. Assuming the revolving credit facility remains undrawn, each 1% change in assumed interest rates, excluding the impact of our 1% interest rate floor, would result in a $7.5 million change in annual interest expense on indebtedness under the Secured Credit Facilities.

Commodity Price Risk

We are exposed to commodity price changes related to certain food products that we purchase, primarily related to the prices of cheese and dough, which can vary throughout the year due to changes in supply, demand, and other factors. We have not entered into any hedging arrangements to reduce our exposure to commodity price volatility associated with such commodity prices; however, we typically enter into short-term purchasing contracts, which may contain pricing arrangements designed to minimize the impact of commodity price fluctuations, and derivative instruments such as futures contracts to mitigate our exposure to commodity price fluctuations. For the three months endedApril 3, 2016 and March 29, 2015, the average cost of a block of cheese was $1.80 and $1.66, respectively. The estimated increase in our food costs from a hypothetical 10% increase in the average cost of a block of cheese would have been $0.4 million for both the three months endedApril 3, 2016 and March 29, 2015. For the three months endedApril 3, 2016 and March 29, 2015, the average cost of dough per pound was $0.45 and $0.49, respectively. The estimated increase in our food costs from a hypothetical 10% increase in the average cost of dough per pound would have been $0.2 million for both the three months endedApril 3, 2016 and March 29, 2015.

Foreign Currency Risk

We are exposed to foreign currency fluctuation risk associated with changes in the value of the Canadian dollar relative to the United States dollar as we operate a total of 12 Company-owned stores in Canada. For the three months endedApril 3, 2016 our Canadian stores generated an operating income of $0.1 million compared to our consolidated operating income of $46.4 million.

Changes in the currency exchange rate result in cumulative translation adjustments and are included in “Accumulated other comprehensive income (loss)” on our Consolidated Balance Sheets and potentially result in transaction gains or losses, which are included in our earnings. The low and high currency exchange rates for a Canadian dollar into a United States dollar for the three months endedApril 3, 2016 were $0.685 and $0.771, respectively. A hypothetical 10% devaluation in the average quoted U.S. dollar-equivalent of the Canadian dollar exchange rate during the three months endedApril 3, 2016 would have decreased our reported consolidated operating results by less than $0.1 million.

ITEM 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, as of the end of the period covered by this report. Based on that evaluation, our management, including our Chief Executive Officer and Chief Financial Officer, has concluded that our disclosure controls and procedures were effective as of April 3, 2016 to ensure that information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934, as amended, was (a) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms; and (b) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During the quarterly period covered by this report there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

37

PART II – OTHER INFORMATION

ITEM 1. Legal Proceedings.

Refer to Note 7 “Commitments and Contingencies” to our Consolidated Financial Statements included in Part I, Item 1. “Financial Statements” of this Periodic Report for a discussion of our legal proceedings.

ITEM 1A. Risk Factors.

We believe there have been no material changes in our risk factors from those disclosed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended January 3, 2016, filed with the SEC on March 2, 2016.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds.

NONE.

38

ITEM 6. Exhibits.

EXHIBIT INDEX

Exhibit Number	Description
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS†	XBRL Instance Document
101.SCH†	XBRL Taxonomy Extension Schema Document
101.CAL†	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF†	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB†	XBRL Taxonomy Extension Label Linkbase Document
101.PRE†	XBRL Taxonomy Extension Presentation Linkbase Document

 __________________

*Filed herewith.

**    Furnished herewith.

† Pursuant to Item 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.

39

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CEC ENTERTAINMENT, INC.
May 9, 2016	By:	/s/ Dale R. Black
		Dale R. Black
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
May 9, 2016		/s/ Laurie E. Priest
		Laurie E. Priest
		Vice President, Controller
		(Principal Accounting Officer)

40

EXHIBIT INDEX

Exhibit Number	Description
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS†	XBRL Instance Document
101.SCH†	XBRL Taxonomy Extension Schema Document
101.CAL†	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF†	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB†	XBRL Taxonomy Extension Label Linkbase Document
101.PRE†	XBRL Taxonomy Extension Presentation Linkbase Document

__________________

*Filed herewith.

**    Furnished herewith.

† Pursuant to Item 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULE 13a – 14(a)/15d-14(a)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(Chief Executive Officer)

I, Thomas Leverton, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended April 3, 2016 of CEC Entertainment, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 9, 2016	/s/ Thomas Leverton
	Thomas Leverton
	Chief Executive Officer and Director

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULE 13a – 14(a)/15d-14(a)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(Chief Financial Officer)

I, Dale R. Black, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended April 3, 2016 of CEC Entertainment, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 9, 2016	/s/ Dale R. Black
	Dale R. Black
	Executive Vice President, Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(Chief Executive Officer)

In connection with the Quarterly Report of CEC Entertainment, Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended April 3, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certifies, that to the best of my knowledge and belief:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 9, 2016	/s/ Thomas Leverton
	Thomas Leverton
	Chief Executive Officer and Director

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(Chief Financial Officer)

In connection with the Quarterly Report of CEC Entertainment, Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended April 3, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certifies, that to the best of my knowledge and belief:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 9, 2016	/s/ Dale R. Black
	Dale R. Black
	Executive Vice President, Chief Financial Officer

XML

Document and Entity Information	3 Months Ended
	Apr. 03, 2016 State	Apr. 25, 2016 shares
Entity Information [Line Items]
Number of States in which Entity Operates | State	47
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 03, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	CEC
Entity Registrant Name	CEC ENTERTAINMENT INC
Entity Central Index Key	0000813920
Current Fiscal Year End Date	--01-03
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding | shares		200

XML

Consolidated Balance Sheets - USD ($)	Apr. 03, 2016	Jan. 03, 2016
Current assets:
Cash and cash equivalents	$ 69,998,000	$ 50,654,000
Restricted Cash and Cash Equivalents, Current	4,142,000	0
Accounts receivable	17,658,000	25,936,000
Inventories	26,425,000	23,275,000
Prepaid expenses	20,830,000	18,223,000
Total current assets	139,053,000	118,088,000
Property and equipment, net	613,637,000	629,047,000
Goodwill	483,876,000	483,876,000
Intangible assets, net	487,068,000	488,095,000
Other noncurrent assets	20,276,000	13,929,000
Total assets	1,743,910,000	1,733,035,000
Current liabilities:
Bank indebtedness and other long-term debt	7,656,000	7,650,000
Capital lease obligations	435,000	421,000
Accounts payable	35,580,000	44,090,000
Accrued expenses	52,156,000	38,284,000
Unearned revenues	10,555,000	10,233,000
Accrued interest	3,912,000	9,757,000
Other current liabilities	3,780,000	3,678,000
Total current liabilities	114,074,000	114,113,000
Capital lease obligations, less current portion	14,934,000	15,044,000
Bank indebtedness and other long-term debt, less current portion	970,556,000	971,333,000
Deferred tax liability	193,584,000	201,734,000
Accrued insurance	9,485,000	9,737,000
Other noncurrent liabilities	213,890,000	212,528,000
Total liabilities	1,516,523,000	1,524,489,000
Stockholder’s equity:
Common stock	0	0
Capital in excess of par value	356,632,000	356,460,000
Retained earnings (deficit)	(126,683,000)	(144,598,000)
Accumulated other comprehensive income (loss)	(2,562,000)	(3,316,000)
Total stockholder’s equity	227,387,000	208,546,000
Total liabilities and stockholder’s equity	1,743,910,000	1,733,035,000
Successor [Member]
Current liabilities:
Bank indebtedness and other long-term debt, less current portion	970,556,000	971,333,000
Common Stock [Member]
Stockholder’s equity:
Common stock	0	0
Additional Paid-in Capital [Member]
Stockholder’s equity:
Capital in excess of par value	356,632,000
Retained Earnings [Member]
Stockholder’s equity:
Retained earnings (deficit)	(126,683,000)
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholder’s equity:
Accumulated other comprehensive income (loss)	(2,562,000)
Stockholders' Equity, Total [Member]
Stockholder’s equity:
Total stockholder’s equity	$ 227,387,000	$ 208,546,000

XML

Consolidated Balance Sheets (Parenthetical) - Successor [Member] - $ / shares	Sep. 27, 2015	Dec. 28, 2014
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000	1,000
Common stock, shares issued	200	200
Treasury stock, shares	0	0

XML

Consolidated Statements of Earnings - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015
REVENUES:
Food and beverage sales	$ 122,202	$ 116,537
Entertainment and merchandise sales	147,557	144,744
Total company store sales	269,759	261,281
Franchise fees and royalties	4,559	4,227
Total revenues	274,318	265,508
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)	30,521	29,225
Cost of entertainment and merchandise (exclusive of items shown separately below)	8,750	8,522
Total cost of food, beverage, entertainment and merchandise	39,271	37,747
Labor expenses	69,043	67,173
Depreciation and amortization	27,629	29,241
Rent expense	24,150	24,458
Other store operating expenses	36,010	33,519
Total company store operating costs	196,103	192,138
Other costs and expenses:
Advertising expense	13,100	11,452
General and administrative expenses	18,018	16,326
Transaction and severance costs	749	905
Total operating costs and expenses	227,970	220,821
Operating income (loss)	46,348	44,687
Interest Income (Expense), Net	17,061	17,499
Income (loss) before income taxes	29,287	27,188
Income tax expense (benefit)	11,372	12,446
Net income (loss)	17,915	14,742
Weighted average common shares outstanding:
Comprehensive income (loss)	18,669	13,100
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	$ 754	$ (1,642)

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Sep. 27, 2015	Mar. 29, 2015	Sep. 28, 2014
Net income (loss)	$ 17,915		$ 14,742
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	754		(1,642)
Comprehensive income (loss)	$ 18,669		$ 13,100
Successor [Member]
Net income (loss)		$ 0		$ 0
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		0		0
Total components of other comprehensive income (loss), net of tax		0		0
Comprehensive income (loss)		$ 0		$ 0

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 17,915	$ 14,742
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,998	30,398
Deferred income taxes	(8,287)	(13,268)
Stock-based compensation expense	135	391
Amortization of lease related liabilities	12	5
Amortization of original issue discount and deferred debt financing costs	1,136	1,137
Loss on asset disposals, net	2,177	1,244
Noncash Rent Expense	1,730	2,136
Other adjustments	27	19
Changes in operating assets and liabilities:
Inventories	(3,287)	880
Prepaid expenses	(1,899)	(752)
Accounts payable	(7,551)	(1,230)
Accrued expenses	165	1,512
Other liabilities	316	309
Income taxes payable	(5,951)	(5,326)
Deferred rent liability	16,717	25,551
Increase (Decrease) Lease Related Liabilities	550	408
Net Cash Provided by (Used in) Operating Activities	43,772	60,548
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(18,823)	(16,109)
Payments to acquire franchisee	0	0
Payments to Develop Software	(3,625)	(185)
Proceeds from Sale of Property, Plant, and Equipment	79	97
Payments for (Proceeds from) Other Investing Activities	0	0
Net cash used in investing activities	(22,369)	(16,860)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of Notes Payable	(7)
Repayments on senior term loan	(1,900)	(1,900)
Repayments on note payable		(11)
Payments on capital lease obligations	(101)	(100)
Sale Leaseback Transaction, Payments, Financing Activities	(474)	(386)
Dividends paid		(386)
Excess tax benefit realized from stock-based compensation	4	0
Net cash provided by (used in) financing activities	(2,478)	(2,397)
Effect of foreign exchange rate changes on cash	419	(661)
Change in cash and cash equivalents	19,344	40,630
Cash and cash equivalents at beginning of period	50,654	110,994
Cash and cash equivalents at end of period	69,998	151,624
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	21,994	21,734
Income taxes paid, net	2,949	183
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued construction costs	783	2,870
Increase (Decrease) in Restricted Cash	(4,142)	0
Increase (Decrease) in Receivables	$ (5,011)	$ (2,392)

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Consolidated Statement of Cash Flows (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015
Sale Leaseback Transaction, Payments, Financing Activities	$ 474	$ 386

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Description of Business and Summary of Significant Accounting Policies

3 Months Ended

Apr. 03, 2016

Accounting Policies [Abstract]

Description of Business and Summary of Significant Accounting Policies:

Description of Business and Summary of Significant Accounting Policies:

Description of Business

The use of the terms “CEC Entertainment,” the “Company,” “we,” “us” and “our” throughout these unaudited notes to the interim Consolidated Financial Statements refer to CEC Entertainment, Inc. and its subsidiaries.

We currently operate and franchise Chuck E. Cheese’s and Peter Piper Pizza family dining and entertainment centers (also referred to as “stores”) in a total of 47 states and 12 foreign countries and territories. Our stores provide our guests with a variety of family entertainment and dining alternatives. All of our stores utilize a consistent restaurant-entertainment format that features both family dining and entertainment areas with the same general mix of food, beverages, entertainment and merchandise. The economic characteristics, products and services, preparation processes, distribution methods and types of customers are substantially similar for each of our stores. Therefore, we aggregate each store’s operating performance into one reportable segment for financial reporting purposes.

Basis of Presentation

The Company has a controlling financial interest in International Association of CEC Entertainment, Inc. (the “Association”), a VIE. The Association primarily administers the collection and disbursement of funds (the “Association Funds”) used for advertising, entertainment and media programs that benefit both us and our Chuck E. Cheese’s franchisees. We and our franchisees are required to contribute a percentage of gross sales to these funds and could be required to make additional contributions to fund any deficits that may be incurred by the Association. We include the Association in our Consolidated Financial Statements, as we concluded that we are the primary beneficiary of its variable interests because we (a) have the power to direct the majority of its significant operating activities; (b) provide it unsecured lines of credit; and (c) own the majority of the stores that benefit from the Association’s advertising, entertainment and media expenditures. The assets, liabilities and operating results of the Association are not material to our Consolidated Financial Statements.

Because the Association Funds are required to be segregated and used for specified purposes, we do not reflect franchisee contributions to the Association Funds as revenue, but rather record franchisee contributions as an offset to reported advertising expenses. Our contributions to the Association Funds are eliminated in consolidation. Contributions to the advertising, entertainment and media funds from our franchisees were $0.6 million for both the three months endedApril 3, 2016 and March 29, 2015. Cash balances held by the Association are restricted for use in our advertising, entertainment and media programs, and are recorded as “Restricted cash” on our Consolidated Balance Sheets at April 3, 2016.

The preparation of these unaudited Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our unaudited Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Interim Financial Statements

The accompanying Consolidated Financial Statements as of April 3, 2016 and for the three months ended April 3, 2016 and March 29, 2015 are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and, consequently, do not include all of the information and footnote disclosures required by GAAP. In the opinion of management, the Consolidated Financial Statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of its consolidated results of operations, financial position and cash flows as of the dates and for the periods presented in accordance with GAAP and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Our Consolidated Financial Statements include all necessary reclassification adjustments to conform prior year results to the current period presentation.

We reclassified $0.9 million of litigation costs related to the Merger (as defined in Note 7. “Commitments and Contingencies”) in our Consolidated Statement of Earnings for the three months endedMarch 29, 2015 from “General and administrative expenses” to “Transaction, severance and litigation related costs” to conform to the current period’s presentation.

Consolidated results of operations for interim periods are not necessarily indicative of results for the full year. The unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2016, filed with the SEC on March 2, 2016.

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Property and Equipment

3 Months Ended

Apr. 03, 2016

Property, Plant and Equipment [Line Items]

Property and Equipment

Asset Impairments

There were no impairment charges recognized during the three months ended April 3, 2016 and March 29, 2015, respectively.

Property and Equipment

Property and Equipment:

Total depreciation and amortization expense was $29.0 million and $30.4 million for the three months ended April 3, 2016 and March 29, 2015, respectively, of which $1.4 million and $1.0 million, respectively, was included in “General and administrative expenses” in our Consolidated Statements of Earnings. Total depreciation and amortization expense for both the three months ended April 3, 2016 and March 29, 2015, includes approximately $0.5 million related to the amortization of franchise agreements (see Note 3. “Intangible Assets, Net”).

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Goodwill and Intangible Assets

3 Months Ended

Apr. 03, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Intangible Assets, Net:

The following table presents our indefinite and definite-lived intangible assets at April 3, 2016:

	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	26,700		—			26,700
Favorable lease agreements (1)	10	14,880		(4,200		)	10,680
Franchise agreements	25	53,300		(3,612		)	49,688
		$	494,880	$	(7,812	)	$	487,068

__________________

(1) In connection with the Merger and the acquisition of Peter Piper Pizza (“PPP”), 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.

Amortization expense related to favorable lease agreements was $0.5 million for both the three months endedApril 3, 2016 and March 29, 2015, and is included in “Rent expense” in our Consolidated Statements of Earnings. Amortization expense related to franchise agreements was $0.5 million for both the three months endedApril 3, 2016 and March 29, 2015, and is included in “General and administrative expenses” in our Consolidated Statements of Earnings.

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Accounts Payable (Notes)

3 Months Ended

Apr. 03, 2016

Notes Payable, Other Payables [Member]

Accounts Payable [Line Items]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Accounts payable consisted of the following as of the dates presented:

	April 3, 2016		January 3, 2016
	(in thousands)
Trade and other amounts payable	$	27,085	$	35,228
Book overdraft	8,495		8,862
Accounts Payable	$	35,580	$	44,090

Trade and other amounts payable represents amounts payable to our vendors, legal fee accruals and settlements payable. The book overdraft balance represents checks issued but not yet presented to banks.

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Indebtedness and Interest Expense

3 Months Ended

Apr. 03, 2016

Debt Disclosure [Abstract]

Indebtedness and Interest Expense

Indebtedness and Interest Expense:

 Our long-term debt consisted of the following for the periods presented:

	April 3, 2016			January 3, 2016
	(in thousands)
Term loan facility	$	744,800		$	746,700
Senior notes	255,000			255,000
Note payable	56			63
Total debt outstanding	999,856			1,001,763
Less:
Unamortized original issue discount	(2,641		)	(2,776		)
Deferred financing costs, net	(19,003		)	(20,004		)
Current portion	(7,656		)	(7,650		)
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	$	970,556		$	971,333

We were in compliance with the debt covenants in effect as of April 3, 2016 for both the Secured Credit Facilities and the senior notes. For further discussion regarding the debt covenants, see Secured Credit Facilities and Senior Unsecured Debt sections below.

Secured Credit Facilities

As of April 3, 2016, we had $744.8 million (excluding the original issue discount) outstanding under the Term loan facility, no borrowings outstanding under the revolving credit facility and $10.9 million of letters of credit issued but undrawn. The Secured Credit Facilities require scheduled quarterly payments on the term loan equal to 0.25% of the original principal amount of the Term loan from July 2014 to December 2020, with the remaining balance paid at maturity, February 14, 2021. Effective April 8, 2016, the balance of our letters of credit issued but undrawn was reduced to $9.9 million.

The term loan was issued net of $3.8 million of original issue discount. We also paid $17.8 million and $3.4 million in debt financing costs related to the term loan facility and revolving credit facility, respectively, which we capitalized in “Bank indebtedness and other long-term debt, net of deferred financing costs” on our Consolidated Balance Sheets. The original issue discount and deferred financing costs are amortized over the lives of the facilities and are included in “Interest expense” on our Consolidated Statements of Earnings.

Borrowings under the Secured Credit Facilities bear interest at a rate equal to, at our option, either (a) a London Interbank Offered Rate (“LIBOR”) determined by reference to the costs of funds for Eurodollar deposits for the interest period relevant to such borrowings, adjusted for certain additional costs, subject to a 1.00% floor in the case of term loans or (b) a base rate determined by reference to the highest of (i) the federal funds effective rate plus 0.50%; (ii) the prime rate of Deutsche Bank AG New York Branch; and (iii) the one-month adjusted LIBOR plus 1.00%, in each case plus an applicable margin. Effective March 4, 2016, the applicable margin for borrowings under the term loan facility stepped down from 3.25% to 3.00%, the applicable margin for borrowings under the revolving credit facility stepped down from 3.25% to 3.00%, and the applicable unused commitment fee rate stepped down from 0.5% to 0.375% based on our first lien senior secured leverage ratio. During the three months endedApril 3, 2016, the federal funds rate ranged from 0.25% to 0.38%, the prime rate was 3.25% and the one-month LIBOR ranged from 0.42% to 0.44%.

The weighted average effective interest rate incurred on our borrowings under our Secured Credit Facilities was 4.7% and 4.6% for the three months endedApril 3, 2016 and March 29, 2015, respectively, which includes amortization of debt issuance costs related to our Secured Credit Facilities, amortization of our term loan facility original issue discount and commitment and other fees related to our Secured Credit Facilities.

As of April 3, 2016, the borrowings under the revolving credit facility were less than 30% of the outstanding commitments; therefore, the springing financial maintenance covenant under our revolving credit facility was not in effect.

Senior Unsecured Debt

Our $255.0 million aggregate principal amount borrowings of 8.000% Senior Notes due 2022 (the “senior notes”) bear interest at a rate of 8.000% per year and mature on February 15, 2022.

Our obligations under the senior notes are fully and unconditionally guaranteed, jointly and severally, by our present and future direct and indirect wholly-owned material domestic subsidiaries that guarantee our Secured Credit Facilities.

The weighted average effective interest rate incurred on borrowings under our senior notes was 8.3% for both the three months endedApril 3, 2016 and the three months endedMarch 29, 2015, which included amortization of debt issuance costs and other fees related to our senior notes.

Interest Expense

Interest expense consisted of the following for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands)
Term loan facility (1)	$	8,157		$	7,907
Senior notes	5,157			5,157
Capital lease obligations	440			455
Sale leaseback obligations	2,758			2,783
Amortization of debt issuance costs	1,001			1,001
Other	(452		)	196
Total interest expense	$	17,061		$	17,499

 __________________

(1)    Includes amortization of original issue discount.

The weighted average effective interest rate incurred on our combined borrowings under our Secured Credit Facilities and senior notes was 5.6% and 5.5% for the three months endedApril 3, 2016, and March 29, 2015, respectively.

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Fair Value of Financial Instruments

3 Months Ended

Apr. 03, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments:

The following table presents information on our financial instruments as of the periods presented:

	April 3, 2016				January 3, 2016
	Carrying Amount (1)		Estimated Fair Value		Carrying Amount (1)		Estimated Fair Value
	(in thousands)
Financial Liabilities:
Bank indebtedness and other long-term debt, less current portion	$	989,559	$	920,101	$	991,337	$	962,600

 _________________

(1)    Excluding net deferred financing costs

Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, our Secured Credit Facilities and our senior notes. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. The estimated fair value of our Secured Credit Facilities' term loan and senior notes was determined by using estimated market prices of our outstanding borrowings under our term loan facility and the senior notes, which are classified as Level 2 in the fair value hierarchy.

During the three months ended April 3, 2016 and March 29, 2015, there were no significant transfers among level 1, 2 or 3 fair value determinations.

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Other Non-current Liabilities

3 Months Ended

Mar. 29, 2015

Other Liabilities Disclosure [Abstract]

Other Noncurrent Liabilities

Other Non-current Liabilities:

Other non-current liabilities consisted of the following:

	March 29, 2015		December 28, 2014
	(in thousands)
Sale leaseback obligations, less current portion			$	—
Deferred rent liability			7,847
Deferred landlord contributions			981
Long-term portion of unfavorable leases			10,942
Other			4,332
Total other non-current liabilities	$	—	$	24,102

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Commitments and Contingencies

3 Months Ended

Apr. 03, 2016

Loss Contingencies [Line Items]

Commitments and Contingencies

Legal Proceedings

From time to time, we are involved in various inquiries, investigations, claims, lawsuits and other legal proceedings that are incidental to the conduct of our business. These matters typically involve claims from customers, employees or other third parties involved in operational issues common to the retail, restaurant and entertainment industries. Such matters typically represent actions with respect to contracts, intellectual property, taxation, employment, employee benefits, personal injuries and other matters. A number of such claims may exist at any given time, and there are currently a number of claims and legal proceedings pending against us.

In the opinion of our management, after consultation with legal counsel, the amount of liability with respect to claims or proceedings currently pending against us is not expected to have a material effect on our consolidated financial condition, results of operations or cash flows. All necessary loss accruals based on the probability and estimate of loss have been recorded.

Employment-Related Litigation: On January 27, 2014, former CEC employee Franchesca Ford filed a purported class action lawsuit against the Company in San Francisco County Superior Court, California (the “Ford Litigation”). The plaintiff claims to represent other similarly-situated hourly non-exempt employees and former employees of the Company in California who were employed from January 27, 2010 to the present, and she alleges violations of California state wage and hour laws. In March 2014, the Company removed the Ford Litigation to the U.S. District Court for the Northern District of California, San Francisco Division, and subsequently defeated the plaintiff’s motion to remand the case to California state court. In May 2015, the parties reached an agreement to settle the lawsuit on a class-wide basis. The settlement would result in the plaintiffs’ dismissal of all claims asserted in the action, as well as certain related but unasserted claims, and grant of complete releases, in exchange for the Company’s settlement payment. On March 24, 2016, the Court issued an order granting preliminary approval of the class settlement and setting a final approval hearing regarding the settlement for August 2016. The settlement of this action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources.

On October 10, 2014, former store General Manager Richard Sinohui filed a purported class action lawsuit against the Company in the Superior Court of California, Riverside County (the “Sinohui Litigation”), claiming to represent other similarly-situated current and former General Managers of the Company in California during the period October 10, 2010 to the present. The lawsuit alleges CEC wrongfully classified current and former California General Managers as exempt from overtime protections, that such General Managers worked more than 40 hours a week without overtime premium pay, paid rest periods and paid meal periods, and that the Company failed to provide accurate itemized wage statements or to pay timely wages upon separation from employment, in violation of the California Labor Code, California Business and Professions Code, and the applicable Wage Order issued by the California Industrial Welfare Commission. Additionally, the plaintiff alleged that the Company failed to reimburse General Managers for certain business expenses, including for personal cell phone usage and mileage, in violation of the California Labor Code; he also asserted a claim for civil penalties under the California Private Attorneys General Act (“PAGA”). The plaintiff seeks an unspecified amount in damages. On December 5, 2014, the Company removed the Sinohui Litigation to the U.S. District Court for the Central District of California, Southern Division. On March 16, 2016, the Court issued an order denying in part and granting in part Plaintiff’s Motion for Class Certification. Specifically, the Court denied Plaintiff’s motion to the extent that he sought to certify a class on Plaintiff’s misclassification and wage statement claims, but certified a class with respect to Plaintiff’s claims that the Company had wrongfully failed to reimburse him for cell phone expenses and/or mileage. The Sinohui Litigation is set for trial in August 2016. We believe the Company has meritorious defenses to this lawsuit and we intend to vigorously defend it. While no assurance can be given as to the ultimate outcome of this matter, we currently believe that the final resolution of this action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources.

Litigation Related to the Merger: Following the January 16, 2014 announcement that the Company had entered into a merger agreement (the “Merger Agreement”), pursuant to which an entity controlled by Apollo Global Management, LLC and its subsidiaries merged with and into CEC Entertainment Inc., with CEC Entertainment Inc. surviving the merger (the “Merger”), four putative shareholder class actions were filed in the District Court of Shawnee County, Kansas, on behalf of purported stockholders of the Company, against the Company, its directors, Apollo, Parent and Merger Sub, in connection with the Merger Agreement and the transactions contemplated thereby. These actions were consolidated into one action in March 2014.

On July 21, 2015, a consolidated class action petition was filed as the operative consolidated complaint, asserting claims against CEC and its former directors, adding The Goldman Sachs Group (“Goldman Sachs”) as a defendant, and removing all Apollo entities as defendants (“Consolidated Class Action Petition”). The Consolidated Class Action Petition alleges that the Company’s directors breached their fiduciary duties to the Company’s stockholders in connection with their consideration and approval of the Merger Agreement by, among other things, conducting a deficient sales process, agreeing to an inadequate tender price, agreeing to certain provisions in the Merger Agreement, and filing materially deficient disclosures regarding the transaction. The Consolidated Class Action Petition also alleges that two members of the Company’s board who also served as the senior managers of the Company had material conflicts of interest and that Goldman Sachs aided and abetted the board’s breaches as a result of various conflicts of interest facing the bank. The Consolidated Class Action Petition seeks, among other things, to recover damages, attorneys’ fees and costs. On March 23, 2016, the Court conducted a hearing on the defendants’ Motion to Dismiss the Consolidated Class Action Petition, and the parties are currently awaiting the Court’s ruling. The Court has not yet set this case for trial. The Company believes the Consolidated Class Action Petition is without merit and intends to defend it vigorously. While no assurance can be given as to the ultimate outcome of the consolidated matter, we currently believe that the final resolution of the action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources.

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Income Taxes

3 Months Ended

Apr. 03, 2016

Income Tax Disclosure [Abstract]

Income Taxes:

Income Taxes:

Our income tax expense consists of the following for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands, except %)
Federal and state income taxes	$	11,263		$	12,174
Foreign income taxes	109			272
Income tax expense (1)	$	11,372		$	12,446
Effective rate	38.8		%	45.8		%

_________________

(1)    Including foreign taxes withheld.

Our effective income tax rate of 38.8% for the three months endedApril 3, 2016 differs from the statutory rate primarily due to the favorable impact of employment related federal income tax credits partially offset by the impact of non-deductible litigation costs related to the Merger. Our effective income tax rate of 45.8% for the three months endedMarch 29, 2015differs from the statutory rate primarily due to the unfavorable impact of non-deductible litigation and settlement costs related to the Merger, partially offset by benefits stemming from employment related income tax credits. Our liability for uncertain tax positions (excluding interest and penalties) was $3.4 million and $3.3 million as of April 3, 2016 and January 3, 2016, respectively, and if recognized would decrease our provision for income taxes by $1.3 million. Within the next twelve months, we could settle or otherwise conclude income tax audits. As such, it is reasonably possible that the liability for uncertain tax positions could decrease by as much as $0.2 million as a result of settlements with certain taxing authorities and expiring statutes of limitations within the next twelve months.

Total accrued interest and penalties related to unrecognized tax benefits as of April 3, 2016 and January 3, 2016, was $0.8 million and $1.7 million, respectively. On the Consolidated Balance Sheets, we include current interest related to unrecognized tax benefits in “Accrued interest,” current penalties in “Accrued expenses” and noncurrent accrued interest and penalties in “Other noncurrent liabilities.”

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Stock-Based Compensation Arrangements

3 Months Ended

Apr. 03, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block]

A summary of the option activity under the equity incentive plan as of April 3, 2016 and the activity for the three months endedApril 3, 2016 is presented below:

	Stock Options		Weighted Average Exercise Price (1)	Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
			($ per share)		($ in thousands)
Outstanding stock options, January 3, 2016	2,393,084		$8.59
Options Granted	101,110		$12.51
Options Exercised	(13,399	)	$8.86
Options Forfeited	(11,185	)	$10.91
Outstanding stock options, April 3, 2016	2,469,610		$8.78	8.14	10,141
Stock options expected to vest, April 3, 2016	2,222,650		$8.78	8.14	9,127
Exercisable stock options, April 3, 2016	327,726		$8.32	7.92	2,861

__________________

(1)    The weighted average exercise price reflects the original grant date fair value per option as adjusted for the dividend payment made in August 2015.

Stock-Based Compensation Arrangements

The following table summarizes stock-based compensation expense and the associated tax benefit recognized in the Consolidated Financial Statements for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands)
Stock-based compensation costs	$	168		$	395
Portion capitalized as property and equipment (1)	(33		)	(4		)
Stock-based compensation expense recognized	$	135		$	391
Excess tax benefit recognized from exercise of stock-based compensation awards	$	4		$	—

 __________________

(1) We capitalize the portion of stock-based compensation costs related to our design, construction, facilities and legal departments that are directly attributable to our store development projects, such as the design and construction of a new store and the remodeling and expansion of our existing stores. Capitalized stock-based compensation cost attributable to our store development projects is included in “Property and equipment, net” in the Consolidated Balance Sheets.

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Stockholders' Equity

3 Months Ended

Apr. 03, 2016

Equity [Abstract]

Stockholders’ Equity:

Stockholder’s Equity:

The following table summarizes the changes in stockholder’s equity during the three months ended April 3, 2016:

	Common Stock			Capital In Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Income
	Shares	Amount										Total
	(in thousands, except share information)
Balance at January 3, 2016	200	$	—	$	356,460	$	(144,598	)	$	(3,316	)	$	208,546
Net income (loss)	—	—		—		17,915			—			17,915
Other comprehensive income (loss)	—	—		—		—			754			754
Stock-based compensation costs	—	—		168		—			—			168
Excess tax benefit realized from exercise of stock options	—	—		4		—			—			4
Balance at April 3, 2016	200	$	—	$	356,632	$	(126,683	)	$	(2,562	)	$	227,387

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Condensed Consolidating Schedules

3 Months Ended

Apr. 03, 2016

Mar. 29, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

Consolidating Guarantor Financial Information:

The senior notes issued by CEC Entertainment, Inc. (the “Issuer”) in conjunction with the Merger are our unsecured obligations and are fully and unconditionally, jointly and severally guaranteed by all of our 100% wholly-owned U.S. subsidiaries (the “Guarantors”). Our wholly-owned foreign subsidiaries and our less-than-wholly-owned U.S. subsidiaries are not a party to the guarantees (the “Non-Guarantors”). The following schedules present the condensed consolidating financial statements of the Issuer, Guarantors and Non-Guarantors, as well as consolidated results, for the periods presented:

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	61,106		$	2,217		$	6,675		$	—		$	69,998
Restricted cash	—			—			4,142			—			4,142
Accounts receivable	14,416			2,811			8,944			(8,513		)	17,658
Inventories	23,031			3,087			307			—			26,425
Other current assets	14,608			4,219			2,003			—			20,830
Total current assets	113,161			12,334			22,071			(8,513		)	139,053
Property and equipment, net	570,343			34,587			8,707			—			613,637
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	21,156			465,912			—			—			487,068
Intercompany	129,033			27,913			—			(156,946		)	—
Investment in subsidiaries	422,049			—			—			(422,049		)	—
Other noncurrent assets	7,692			11,965			619			—			20,276
Total assets	$	1,695,896		$	604,125		$	31,397		$	(587,508	)	$	1,743,910
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	56		$	—		$	—		$	7,656
Capital lease obligations, current portion	430			—			5			—			435
Accounts payable and accrued expenses	80,532			13,381			8,290			—			102,203
Other current liabilities	3,452			328			—			—			3,780
Total current liabilities	92,014			13,765			8,295			—			114,074
Capital lease obligations, less current portion	14,867			—			67			—			14,934
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	970,556			—			—			—			970,556
Deferred tax liability	178,014			16,991			(1,421		)	—			193,584
Intercompany	1,479			138,099			25,881			(165,459		)	—
Other noncurrent liabilities	211,579			11,538			258			—			223,375
Total liabilities	1,468,509			180,393			33,080			(165,459		)	1,516,523
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	356,632			466,114			3,241			(469,355		)	356,632
Retained earnings (deficit)	(126,683		)	(42,382		)	(2,362		)	44,744			(126,683		)
Accumulated other comprehensive income (loss)	(2,562		)	—			(2,562		)	2,562			(2,562		)
Total stockholder's equity	227,387			423,732			(1,683		)	(422,049		)	227,387
Total liabilities and stockholder's equity	$	1,695,896		$	604,125		$	31,397		$	(587,508	)	$	1,743,910

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of January 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	42,235		$	1,797		$	6,622		$	—		$	50,654
Accounts receivable	21,595			3,944			9,468			(9,071		)	25,936
Inventories	19,959			3,021			295			—			23,275
Other current assets	13,562			3,561			1,100			—			18,223
Total current assets	97,351			12,323			17,485			(9,071		)	118,088
Property and equipment, net	585,915			34,539			8,593			—			629,047
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	21,855			466,240			—			—			488,095
Intercompany	129,151			30,716			—			(159,867		)	—
Investment in subsidiaries	422,407			—			—			(422,407		)	—
Other noncurrent assets	4,318			8,940			671			—			13,929
Total assets	$	1,693,459		$	604,172		$	26,749		$	(591,345	)	$	1,733,035
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	50		$	—		$	—		$	7,650
Capital lease obligations, current portion	418			—			3			—			421
Accounts payable and accrued expenses	71,320			27,774			3,270			—			102,364
Other current liabilities	3,350			328			—			—			3,678
Total current liabilities	82,688			28,152			3,273			—			114,113
Capital lease obligations, less current portion	14,980			—			64			—			15,044
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	971,320			13			—			—			971,333
Deferred tax liability	184,083			17,867			(216		)	—			201,734
Intercompany	20,580			121,850			26,508			(168,938		)	—
Other noncurrent liabilities	211,262			10,784			219			—			222,265
Total liabilities	1,484,913			178,666			29,848			(168,938		)	1,524,489
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	356,460			466,114			3,241			(469,355		)	356,460
Retained earnings (deficit)	(144,598		)	(40,608		)	(3,024		)	43,632			(144,598		)
Accumulated other comprehensive income (loss)	(3,316		)	—			(3,316		)	3,316			(3,316		)
Total stockholder's equity	208,546			425,506			(3,099		)	(422,407		)	208,546
Total liabilities and stockholder's equity	$	1,693,459		$	604,172		$	26,749		$	(591,345	)	$	1,733,035

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	107,822		$	12,788		$	1,592		$	—		$	122,202
Entertainment and merchandise sales	139,208			5,598			2,751			—			147,557
Total company store sales	247,030			18,386			4,343			—			269,759
Franchise fees and royalties	598			3,961			—			—			4,559
International Association assessments and other fees	255			615			11,958			(12,828		)	—
Total revenues	247,883			22,962			16,301			(12,828		)	274,318
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	26,644			3,297			580			—			30,521
Cost of entertainment and merchandise	8,119			445			186			—			8,750
Total cost of food, beverage, entertainment and merchandise	34,763			3,742			766			—			39,271
Labor expenses	63,734			3,999			1,310			—			69,043
Depreciation and amortization	26,563			607			459			—			27,629
Rent expense	22,257			1,333			560			—			24,150
Other store operating expenses	33,763			2,166			951			(870		)	36,010
Total company store operating costs	181,080			11,847			4,046			(870		)	196,103
Advertising expense	12,420			1,673			10,965			(11,958		)	13,100
General and administrative expenses	7,183			10,659			176			—			18,018
Transaction, severance and related litigation costs	701			48			—			—			749
Total operating costs and expenses	201,384			24,227			15,187			(12,828		)	227,970
Operating income (loss)	46,499			(1,265		)	1,114			—			46,348
Equity in earnings (loss) in affiliates	(1,112		)	—			—			1,112			—
Interest expense (income)	16,602			351			108			—			17,061
Income (loss) before income taxes	28,785			(1,616		)	1,006			1,112			29,287
Income tax expense (benefit)	10,870			165			337			—			11,372
Net income (loss)	$	17,915		$	(1,781	)	$	669		$	1,112		$	17,915
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	754			—			(754		)	754			754
Comprehensive income (loss)	$	18,669		$	(1,781	)	$	(85	)	$	1,866		$	18,669

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended March 29, 2015
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	102,387		$	12,316		$	1,834		$	—		$	116,537
Entertainment and merchandise sales	137,510			4,110			3,124			—			144,744
Total company store sales	239,897			16,426			4,958			—			261,281
Franchise fees and royalties	805			3,422			—			—			4,227
International Association assessments and other fees	286			662			8,653			(9,601		)	—
Total revenues	240,988			20,510			13,611			(9,601		)	265,508
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	25,390			3,244			591			—			29,225
Cost of entertainment and merchandise	7,620			753			149			—			8,522
Total cost of food, beverage, entertainment and merchandise	33,010			3,997			740			—			37,747
Labor expenses	61,732			3,930			1,511			—			67,173
Depreciation and amortization	27,619			1,114			508			—			29,241
Rent expense	22,303			1,494			661			—			24,458
Other store operating expenses	31,509			1,830			1,128			(948		)	33,519
Total company store operating costs	176,173			12,365			4,548			(948		)	192,138
Advertising expense	9,141			1,060			9,904			(8,653		)	11,452
General and administrative expenses	4,893			11,316			117			—			16,326
Transaction, severance and related litigation costs	—			905			—			—			905
Total operating costs and expenses	190,207			25,646			14,569			(9,601		)	220,821
Operating income (loss)	50,781			(5,136		)	(958		)	—			44,687
Equity in earnings (loss) in affiliates	(7,769		)	—			—			7,769			—
Interest expense (income)	16,737			633			129			—			17,499
Income (loss) before income taxes	26,275			(5,769		)	(1,087		)	7,769			27,188
Income tax expense (benefit)	11,533			1,328			(415		)	—			12,446
Net income (loss)	$	14,742		$	(7,097	)	$	(672	)	$	7,769		$	14,742
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1,642		)	—			(1,642		)	1,642			(1,642		)
Comprehensive income (loss)	$	13,100		$	(7,097	)	$	(2,314	)	$	9,411		$	13,100

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 3, 2016
(in thousands)
	Successor
	Issuer		Guarantors		Non-Guarantors		Eliminations		Consolidated
Revenues:
Food and beverage sales	$	—	$	—	$	—	$	—	$	—
Entertainment and merchandise sales	—		—		—		—		—
Total company store sales	—		—		—		—		—
Franchise fees and royalties	—		—		—		—		—
International Association assessments and other fees	—		—		—		—		—
Total revenues	—		—		—		—		—
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	—		—		—		—		—
Cost of entertainment and merchandise	—		—		—		—		—
Total cost of food, beverage, entertainment and merchandise	—		—		—		—		—
Labor expenses	—		—		—		—		—
Depreciation and amortization	—		—		—		—		—
Rent expense	—		—		—		—		—
Other store operating expenses	—		—		—		—		—
Total company store operating costs	—		—		—		—		—
Advertising expense	—		—		—		—		—
General and administrative expenses	—		—		—		—		—
Transaction and severance costs	—		—		—		—		—
Asset impairments	—		—		—		—		—
Total operating costs and expenses	—		—		—		—		—
Operating income (loss)	—		—		—		—		—
Equity in earnings (loss) in affiliates	—		—		—		—		—
Interest expense (income)	—		—		—		—		—
Income (loss) before income taxes	—		—		—		—		—
Income tax expense (benefit)	—		—		—		—		—
Net income (loss)	$	—	$	—	$	—	$	—	$	—
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	—	$	—	$	—	$	—	$	—
Total components of other comprehensive income (loss), net of tax	—		—		—		—		—
Comprehensive income (loss)	$	—	$	—	$	—	$	—	$	—

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended September 28, 2014
(in thousands)
	Successor
	Issuer		Guarantors		Non-Guarantors		Eliminations		Consolidated
Revenues:
Food and beverage sales
Entertainment and merchandise sales
Total company store sales	—		—		—		—		—
Franchise fees and royalties
International Association assessments and other fees
Total revenues	—		—		—		—		—
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage
Cost of entertainment and merchandise
Total cost of food, beverage, entertainment and merchandise	—		—		—		—		—
Labor expenses
Depreciation and amortization
Rent expense
Other store operating expenses
Total company store operating costs	—		—		—		—		—
Advertising expense
General and administrative expenses
Transaction and severance costs
Total operating costs and expenses	—		—		—		—		—
Operating income (loss)	—		—		—		—		—
Equity in earnings (loss) in affiliates									—
Interest expense (income)									—
Income (loss) before income taxes	—		—		—		—		—
Income tax expense (benefit)									—
Net income (loss)	$	—	$	—	$	—	$	—	$	—
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments									$	—
Total components of other comprehensive income (loss), net of tax	—		—		—		—		—
Comprehensive income (loss)	$	—	$	—	$	—	$	—	$	—

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Three Months Ended April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows provided by (used in) operating activities:	$	40,445		$	3,662		$	(335	)	$	—	$	43,772
Cash flows from investing activities:
Purchases of property and equipment	(18,342		)	(451		)	(30		)	—		(18,823		)
Development of internal use software	(841		)	(2,784		)	—			—		(3,625		)
Proceeds from sale of property and equipment	79			—			—			—		79
Cash flows provided by (used in) investing activities	(19,104		)	(3,235		)	(30		)	—		(22,369		)
Cash flows from financing activities:
Repayments on senior term loan	(1,900		)	—			—			—		(1,900		)
Repayments on note payable	—			(7		)	—			—		(7		)
Payments on capital lease obligations	(100		)	—			(1		)	—		(101		)
Payments on sale leaseback transactions	(474		)	—			—			—		(474		)
Excess tax benefit realized from stock-based compensation	4			—			—			—		4
Cash flows provided by (used in) financing activities	(2,470		)	(7		)	(1		)	—		(2,478		)
Effect of foreign exchange rate changes on cash	—			—			419			—		419
Change in cash and cash equivalents	18,871			420			53			—		19,344
Cash and cash equivalents at beginning of period	42,235			1,797			6,622			—		50,654
Cash and cash equivalents at end of period	$	61,106		$	2,217		$	6,675		$	—	$	69,998

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Three Months Ended March 29, 2015
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	53,409		$	2,476		$	4,663		$	—		$	60,548
Cash flows from investing activities:
Acquisition of Peter Piper Pizza	(663		)	—			—			—			(663		)
Intercompany note	(96		)	2,500			—			(2,404		)	—
Purchases of property and equipment	(14,451		)	(1,023		)	(635		)	—			(16,109		)
Development of internal use software	—			(185		)	—			—			(185		)
Proceeds from sale of property and equipment	97			—			—			—			97
Cash flows provided by (used in) investing activities	(15,113		)	1,292			(635		)	(2,404		)	(16,860		)
Cash flows from financing activities:
Repayments on senior term loan	(1,900		)	—			—			—			(1,900		)
Repayments on Note Payable	—			(11		)							(11		)
Intercompany note	—			96			(2,500		)	2,404			—
Payments on capital lease obligations	(100		)	—			—			—			(100		)
Payments on sale leaseback transactions	(386		)	—			—			—			(386		)
Cash flows provided by (used in) financing activities	(2,386		)	85			(2,500		)	2,404			(2,397		)
Effect of foreign exchange rate changes on cash	—			—			(661		)	—			(661		)
Change in cash and cash equivalents	35,910			3,853			867			—			40,630
Cash and cash equivalents at beginning of period	97,020			6,427			7,547			—			110,994
Cash and cash equivalents at end of period	$	132,930		$	10,280		$	8,414		$	—		$	151,624

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Subsequent Events

3 Months Ended

Mar. 29, 2015

Subsequent Event [Line Items]

Subsequent Events

Subsequent Events:

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Related Party Transactions (Notes)

3 Months Ended

Apr. 03, 2016

Related Party Transaction [Line Items]

Related Party Transactions Disclosure [Text Block]

12. Related Party Transactions:

CEC Entertainment reimburses Apollo Management, L.P. for certain out-of-pocket expenses incurred in connection with travel and Board of Directors related expenses. Expense reimbursements by CEC Entertainment to Apollo totaled $0.5 million for the three months ended April 3, 2016 and are included in “General and administrative expenses” in our Consolidated Statements of Earnings.

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Description of Business and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Apr. 03, 2016

Mar. 29, 2015

Entity Information [Line Items]

Business Description and Basis of Presentation [Text Block]

1. Description of Business and Summary of Significant Accounting Policies:

Description of Business

The use of the terms “CEC Entertainment,” the “Company,” “we,” “us” and “our” throughout these unaudited notes to the interim Consolidated Financial Statements refer to CEC Entertainment, Inc. and its subsidiaries.

We currently operate and franchise Chuck E. Cheese’s and Peter Piper Pizza family dining and entertainment centers (also referred to as “stores”) in a total of 47 states and 12 foreign countries and territories. Our stores provide our guests with a variety of family entertainment and dining alternatives. All of our stores utilize a consistent restaurant-entertainment format that features both family dining and entertainment areas with the same general mix of food, beverages, entertainment and merchandise. The economic characteristics, products and services, preparation processes, distribution methods and types of customers are substantially similar for each of our stores. Therefore, we aggregate each store’s operating performance into one reportable segment for financial reporting purposes.

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

Description of Business and Summary of Significant Accounting Policies:

Description of Business

The use of the terms “CEC Entertainment,” the “Company,” “we,” “us” and “our” throughout these unaudited notes to the interim Consolidated Financial Statements refer to CEC Entertainment, Inc. and its subsidiaries.

We currently operate and franchise Chuck E. Cheese’s and Peter Piper Pizza family dining and entertainment centers (also referred to as “stores”) in a total of 47 states and 12 foreign countries and territories. Our stores provide our guests with a variety of family entertainment and dining alternatives. All of our stores utilize a consistent restaurant-entertainment format that features both family dining and entertainment areas with the same general mix of food, beverages, entertainment and merchandise. The economic characteristics, products and services, preparation processes, distribution methods and types of customers are substantially similar for each of our stores. Therefore, we aggregate each store’s operating performance into one reportable segment for financial reporting purposes.

Basis of Presentation

The Company has a controlling financial interest in International Association of CEC Entertainment, Inc. (the “Association”), a VIE. The Association primarily administers the collection and disbursement of funds (the “Association Funds”) used for advertising, entertainment and media programs that benefit both us and our Chuck E. Cheese’s franchisees. We and our franchisees are required to contribute a percentage of gross sales to these funds and could be required to make additional contributions to fund any deficits that may be incurred by the Association. We include the Association in our Consolidated Financial Statements, as we concluded that we are the primary beneficiary of its variable interests because we (a) have the power to direct the majority of its significant operating activities; (b) provide it unsecured lines of credit; and (c) own the majority of the stores that benefit from the Association’s advertising, entertainment and media expenditures. The assets, liabilities and operating results of the Association are not material to our Consolidated Financial Statements.

Because the Association Funds are required to be segregated and used for specified purposes, we do not reflect franchisee contributions to the Association Funds as revenue, but rather record franchisee contributions as an offset to reported advertising expenses. Our contributions to the Association Funds are eliminated in consolidation. Contributions to the advertising, entertainment and media funds from our franchisees were $0.6 million for both the three months endedApril 3, 2016 and March 29, 2015. Cash balances held by the Association are restricted for use in our advertising, entertainment and media programs, and are recorded as “Restricted cash” on our Consolidated Balance Sheets at April 3, 2016.

The preparation of these unaudited Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our unaudited Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Interim Financial Statements

The accompanying Consolidated Financial Statements as of April 3, 2016 and for the three months ended April 3, 2016 and March 29, 2015 are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and, consequently, do not include all of the information and footnote disclosures required by GAAP. In the opinion of management, the Consolidated Financial Statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of its consolidated results of operations, financial position and cash flows as of the dates and for the periods presented in accordance with GAAP and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Our Consolidated Financial Statements include all necessary reclassification adjustments to conform prior year results to the current period presentation.

We reclassified $0.9 million of litigation costs related to the Merger (as defined in Note 7. “Commitments and Contingencies”) in our Consolidated Statement of Earnings for the three months endedMarch 29, 2015 from “General and administrative expenses” to “Transaction, severance and litigation related costs” to conform to the current period’s presentation.

Consolidated results of operations for interim periods are not necessarily indicative of results for the full year. The unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2016, filed with the SEC on March 2, 2016.

Basis of Presentation

Basis of Presentation

The Company has a controlling financial interest in International Association of CEC Entertainment, Inc. (the “Association”), a VIE. The Association primarily administers the collection and disbursement of funds (the “Association Funds”) used for advertising, entertainment and media programs that benefit both us and our Chuck E. Cheese’s franchisees. We and our franchisees are required to contribute a percentage of gross sales to these funds and could be required to make additional contributions to fund any deficits that may be incurred by the Association. We include the Association in our Consolidated Financial Statements, as we concluded that we are the primary beneficiary of its variable interests because we (a) have the power to direct the majority of its significant operating activities; (b) provide it unsecured lines of credit; and (c) own the majority of the stores that benefit from the Association’s advertising, entertainment and media expenditures. The assets, liabilities and operating results of the Association are not material to our Consolidated Financial Statements.

Because the Association Funds are required to be segregated and used for specified purposes, we do not reflect franchisee contributions to the Association Funds as revenue, but rather record franchisee contributions as an offset to reported advertising expenses. Our contributions to the Association Funds are eliminated in consolidation. Contributions to the advertising, entertainment and media funds from our franchisees were $0.6 million for both the three months endedApril 3, 2016 and March 29, 2015. Cash balances held by the Association are restricted for use in our advertising, entertainment and media programs, and are recorded as “Restricted cash” on our Consolidated Balance Sheets at April 3, 2016.

The preparation of these unaudited Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our unaudited Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Acquisition

The Acquisition has been accounted for as a business combination using the acquisition method of accounting, whereby the purchase price was allocated to tangible and intangible assets acquired and liabilities assumed, based on their estimated fair market values on the Merger date. Fair value measurements have been applied based on assumptions that market participants would use in the pricing of the asset or liability. The purchase price allocation could change in subsequent periods, up to one year from the Merger date. Any subsequent changes to the purchase price allocation that result in material changes to our Consolidated Financial Statements will be adjusted retroactively.

Property and Equipment

Asset Impairments

There were no impairment charges recognized during the three months ended April 3, 2016 and March 29, 2015, respectively.

Recently Issued Accounting Guidance

Recently Issued Accounting Guidance

Accounting Guidance Not Yet Adopted:

In March 2016, The FASB issued ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20). This amendment provides a narrow scope exception to Liabilities - Extinguishment of Liabilities (Subtopic 405-20) that requires breakage for those liabilities to be accounted for in accordance with the breakage guidance in Revenue From Contracts With Customers (Topic 606). There is currently no guidance in GAAP, or pending guidance, regarding the derecognition of prepaid stored-value product liabilities within the scope of the amendments in this Update. Under the new guidance, if an entity expects to be entitled to a breakage amount for a liability resulting from the sale of a prepaid stored-value product, the entity shall derecognize the amount related to the expected breakage in proportion to the pattern of rights expected to be exercised by the product holder only to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. If an entity does not expect to be entitled to a breakage amount for a prepaid stored-value product, the entity shall derecognize the amount related to the breakage when the likelihood of the product holder exercising its remaining rights becomes remote. This change to an entity’s estimated breakage amount shall be accounted for as a change in accounting estimate. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. We are currently assessing the impact of adopting this new guidance on our Consolidated Financial Statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). This amendment will require that (i) all excess tax benefits and deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit on the income statement, (ii) the tax effects of exercised or vested awards should now be treated as discrete items in the reporting period in which they occur, and (iii) an entity should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period or not. On the statement of cash flows excess tax benefits should be classified along with other income tax cash flows as an operating activity. This amendment allows an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. The threshold for an award to qualify for equity classification permits withholding up to the maximum statutory tax rate in applicable jurisdictions, and the cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity on the statement of cash flows. Nonpublic entities can make an accounting policy election to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that meet certain conditions. For public entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. We are currently assessing the impact of adopting this new guidance on our Consolidated Financial Statements.

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Acquisition of CEC Entertainment, Inc. Pro Forma Information (Tables)

3 Months Ended

Mar. 29, 2015

Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]

Business Acquisition, Pro Forma Information [Table Text Block]

This unaudited pro forma information should not be relied upon as necessarily being indicative of the historical results that would have been obtained if the Merger had actually occurred on those dates, nor of the results that may be obtained in the future.

	Three Months Ended						Nine Months Ended
	September 28, 2014			September 29, 2013			September 28, 2014			September 29, 2013
	(in thousands)
Total revenues	$	274,318		$	265,508		$	642,082		$	—
Net loss	$	(11,003	)	$	(11,349	)	$	(3,268	)	$	(5,223	)

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Acquisition of CEC Entertainment, Inc. schedule of net assets acquired (Tables)

3 Months Ended

Mar. 29, 2015

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the fair values assigned to the net assets acquired as of the February 14, 2014 acquisition date (in thousands):

Cash consideration paid to shareholders	$	946,898
Fair value of assets acquired and liabilities assumed:
Cash and cash equivalents	19,184
Accounts receivable	22,185
Inventories	21,696
Other current assets	16,463
Property, plant and equipment	718,066
Property under capital lease	15,530
Favorable lease interests	14,000
Chuck E. Cheese's tradename	400,000
Franchise agreements	14,000
Other non-current assets	9,872
Indebtedness	(348,000		)
Capital Leases	(15,530		)
Unfavorable lease interests	(10,160		)
Deferred taxes	(268,946		)
Other current and non-current liabilities	(93,520		)
Net assets acquired	514,840
Excess purchase price allocated to goodwill	$	432,058

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Apr. 03, 2016

Finite-Lived Intangible Assets [Line Items]

Schedule of Indefinite-Lived Intangible Assets

The following table presents our indefinite and definite-lived intangible assets at April 3, 2016:

	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	26,700		—			26,700
Favorable lease agreements (1)	10	14,880		(4,200		)	10,680
Franchise agreements	25	53,300		(3,612		)	49,688
		$	494,880	$	(7,812	)	$	487,068

__________________

(1) In connection with the Merger and the acquisition of Peter Piper Pizza (“PPP”), 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.

Schedule of Finite-Lived Intangible Assets

The following table presents our indefinite and definite-lived intangible assets at April 3, 2016:

	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	26,700		—			26,700
Favorable lease agreements (1)	10	14,880		(4,200		)	10,680
Franchise agreements	25	53,300		(3,612		)	49,688
		$	494,880	$	(7,812	)	$	487,068

__________________

(1) In connection with the Merger and the acquisition of Peter Piper Pizza (“PPP”), 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.

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Indebtedness and Interest Expense Indebtedness and Interest Expense (Tables)

3 Months Ended

Apr. 03, 2016

Debt Disclosure [Abstract]

Schedule of Debt

 Our long-term debt consisted of the following for the periods presented:

	April 3, 2016			January 3, 2016
	(in thousands)
Term loan facility	$	744,800		$	746,700
Senior notes	255,000			255,000
Note payable	56			63
Total debt outstanding	999,856			1,001,763
Less:
Unamortized original issue discount	(2,641		)	(2,776		)
Deferred financing costs, net	(19,003		)	(20,004		)
Current portion	(7,656		)	(7,650		)
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	$	970,556		$	971,333

Schedule of Interest Expense

Interest expense consisted of the following for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands)
Term loan facility (1)	$	8,157		$	7,907
Senior notes	5,157			5,157
Capital lease obligations	440			455
Sale leaseback obligations	2,758			2,783
Amortization of debt issuance costs	1,001			1,001
Other	(452		)	196
Total interest expense	$	17,061		$	17,499

 __________________

(1)    Includes amortization of original issue discount.

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Apr. 03, 2016

Fair Value Disclosures [Abstract]

Fair Value by Balance Sheet Grouping

The following table presents information on our financial instruments as of the periods presented:

	April 3, 2016				January 3, 2016
	Carrying Amount (1)		Estimated Fair Value		Carrying Amount (1)		Estimated Fair Value
	(in thousands)
Financial Liabilities:
Bank indebtedness and other long-term debt, less current portion	$	989,559	$	920,101	$	991,337	$	962,600

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Other Non-current Liabilities (Tables)

3 Months Ended

Mar. 29, 2015

Other Noncurrent Liabilities [Line Items]

Other Liabilities Disclosure [Text Block]

Other Non-current Liabilities:

Other non-current liabilities consisted of the following:

	March 29, 2015		December 28, 2014
	(in thousands)
Sale leaseback obligations, less current portion			$	—
Deferred rent liability			7,847
Deferred landlord contributions			981
Long-term portion of unfavorable leases			10,942
Other			4,332
Total other non-current liabilities	$	—	$	24,102

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Income Taxes Income Taxes (Tables)

3 Months Ended

Apr. 03, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Our income tax expense consists of the following for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands, except %)
Federal and state income taxes	$	11,263		$	12,174
Foreign income taxes	109			272
Income tax expense (1)	$	11,372		$	12,446
Effective rate	38.8		%	45.8		%

_________________

(1)    Including foreign taxes withheld.

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Stock-Based Compensation Arrangements (Tables)

3 Months Ended

Apr. 03, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block]

A summary of the option activity under the equity incentive plan as of April 3, 2016 and the activity for the three months endedApril 3, 2016 is presented below:

	Stock Options		Weighted Average Exercise Price (1)	Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
			($ per share)		($ in thousands)
Outstanding stock options, January 3, 2016	2,393,084		$8.59
Options Granted	101,110		$12.51
Options Exercised	(13,399	)	$8.86
Options Forfeited	(11,185	)	$10.91
Outstanding stock options, April 3, 2016	2,469,610		$8.78	8.14	10,141
Stock options expected to vest, April 3, 2016	2,222,650		$8.78	8.14	9,127
Exercisable stock options, April 3, 2016	327,726		$8.32	7.92	2,861

__________________

(1)    The weighted average exercise price reflects the original grant date fair value per option as adjusted for the dividend payment made in August 2015.

Schedule of Stock-Based Compensation Expense and Associated Tax Benefits Recognized

9. Stock-Based Compensation Arrangements:

A summary of the option activity under the equity incentive plan as of April 3, 2016 and the activity for the three months endedApril 3, 2016 is presented below:

	Stock Options		Weighted Average Exercise Price (1)	Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
			($ per share)		($ in thousands)
Outstanding stock options, January 3, 2016	2,393,084		$8.59
Options Granted	101,110		$12.51
Options Exercised	(13,399	)	$8.86
Options Forfeited	(11,185	)	$10.91
Outstanding stock options, April 3, 2016	2,469,610		$8.78	8.14	10,141
Stock options expected to vest, April 3, 2016	2,222,650		$8.78	8.14	9,127
Exercisable stock options, April 3, 2016	327,726		$8.32	7.92	2,861

__________________

(1)    The weighted average exercise price reflects the original grant date fair value per option as adjusted for the dividend payment made in August 2015.

As of April 3, 2016, we had $2.9 million of total unrecognized share-based compensation expense related to unvested options, net of expected forfeitures, which is expected to be amortized over the remaining weighted-average period of 3.2 years.

The following table summarizes stock-based compensation expense and the associated tax benefit recognized in the Consolidated Financial Statements for the periods presented:

	Three Months Ended
	April 3, 2016			March 29, 2015
	(in thousands)
Stock-based compensation costs	$	168		$	395
Portion capitalized as property and equipment (1)	(33		)	(4		)
Stock-based compensation expense recognized	$	135		$	391
Excess tax benefit recognized from exercise of stock-based compensation awards	$	4		$	—

 __________________

(1) We capitalize the portion of stock-based compensation costs related to our design, construction, facilities and legal departments that are directly attributable to our store development projects, such as the design and construction of a new store and the remodeling and expansion of our existing stores. Capitalized stock-based compensation cost attributable to our store development projects is included in “Property and equipment, net” in the Consolidated Balance Sheets.

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Stockholders' Equity (Tables)

3 Months Ended

Apr. 03, 2016

Equity [Abstract]

Summary of Changes in Stockholders' Equity

The following table summarizes the changes in stockholder’s equity during the three months ended April 3, 2016:

	Common Stock			Capital In Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Income
	Shares	Amount										Total
	(in thousands, except share information)
Balance at January 3, 2016	200	$	—	$	356,460	$	(144,598	)	$	(3,316	)	$	208,546
Net income (loss)	—	—		—		17,915			—			17,915
Other comprehensive income (loss)	—	—		—		—			754			754
Stock-based compensation costs	—	—		168		—			—			168
Excess tax benefit realized from exercise of stock options	—	—		4		—			—			4
Balance at April 3, 2016	200	$	—	$	356,632	$	(126,683	)	$	(2,562	)	$	227,387

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Condensed Consolidating Schedules (Tables)

3 Months Ended

Apr. 03, 2016

Mar. 29, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	61,106		$	2,217		$	6,675		$	—		$	69,998
Restricted cash	—			—			4,142			—			4,142
Accounts receivable	14,416			2,811			8,944			(8,513		)	17,658
Inventories	23,031			3,087			307			—			26,425
Other current assets	14,608			4,219			2,003			—			20,830
Total current assets	113,161			12,334			22,071			(8,513		)	139,053
Property and equipment, net	570,343			34,587			8,707			—			613,637
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	21,156			465,912			—			—			487,068
Intercompany	129,033			27,913			—			(156,946		)	—
Investment in subsidiaries	422,049			—			—			(422,049		)	—
Other noncurrent assets	7,692			11,965			619			—			20,276
Total assets	$	1,695,896		$	604,125		$	31,397		$	(587,508	)	$	1,743,910
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	56		$	—		$	—		$	7,656
Capital lease obligations, current portion	430			—			5			—			435
Accounts payable and accrued expenses	80,532			13,381			8,290			—			102,203
Other current liabilities	3,452			328			—			—			3,780
Total current liabilities	92,014			13,765			8,295			—			114,074
Capital lease obligations, less current portion	14,867			—			67			—			14,934
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	970,556			—			—			—			970,556
Deferred tax liability	178,014			16,991			(1,421		)	—			193,584
Intercompany	1,479			138,099			25,881			(165,459		)	—
Other noncurrent liabilities	211,579			11,538			258			—			223,375
Total liabilities	1,468,509			180,393			33,080			(165,459		)	1,516,523
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	356,632			466,114			3,241			(469,355		)	356,632
Retained earnings (deficit)	(126,683		)	(42,382		)	(2,362		)	44,744			(126,683		)
Accumulated other comprehensive income (loss)	(2,562		)	—			(2,562		)	2,562			(2,562		)
Total stockholder's equity	227,387			423,732			(1,683		)	(422,049		)	227,387
Total liabilities and stockholder's equity	$	1,695,896		$	604,125		$	31,397		$	(587,508	)	$	1,743,910

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of January 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	42,235		$	1,797		$	6,622		$	—		$	50,654
Accounts receivable	21,595			3,944			9,468			(9,071		)	25,936
Inventories	19,959			3,021			295			—			23,275
Other current assets	13,562			3,561			1,100			—			18,223
Total current assets	97,351			12,323			17,485			(9,071		)	118,088
Property and equipment, net	585,915			34,539			8,593			—			629,047
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	21,855			466,240			—			—			488,095
Intercompany	129,151			30,716			—			(159,867		)	—
Investment in subsidiaries	422,407			—			—			(422,407		)	—
Other noncurrent assets	4,318			8,940			671			—			13,929
Total assets	$	1,693,459		$	604,172		$	26,749		$	(591,345	)	$	1,733,035
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	50		$	—		$	—		$	7,650
Capital lease obligations, current portion	418			—			3			—			421
Accounts payable and accrued expenses	71,320			27,774			3,270			—			102,364
Other current liabilities	3,350			328			—			—			3,678
Total current liabilities	82,688			28,152			3,273			—			114,113
Capital lease obligations, less current portion	14,980			—			64			—			15,044
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	971,320			13			—			—			971,333
Deferred tax liability	184,083			17,867			(216		)	—			201,734
Intercompany	20,580			121,850			26,508			(168,938		)	—
Other noncurrent liabilities	211,262			10,784			219			—			222,265
Total liabilities	1,484,913			178,666			29,848			(168,938		)	1,524,489
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	356,460			466,114			3,241			(469,355		)	356,460
Retained earnings (deficit)	(144,598		)	(40,608		)	(3,024		)	43,632			(144,598		)
Accumulated other comprehensive income (loss)	(3,316		)	—			(3,316		)	3,316			(3,316		)
Total stockholder's equity	208,546			425,506			(3,099		)	(422,407		)	208,546
Total liabilities and stockholder's equity	$	1,693,459		$	604,172		$	26,749		$	(591,345	)	$	1,733,035

Condensed Consolidating Income Statement

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	107,822		$	12,788		$	1,592		$	—		$	122,202
Entertainment and merchandise sales	139,208			5,598			2,751			—			147,557
Total company store sales	247,030			18,386			4,343			—			269,759
Franchise fees and royalties	598			3,961			—			—			4,559
International Association assessments and other fees	255			615			11,958			(12,828		)	—
Total revenues	247,883			22,962			16,301			(12,828		)	274,318
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	26,644			3,297			580			—			30,521
Cost of entertainment and merchandise	8,119			445			186			—			8,750
Total cost of food, beverage, entertainment and merchandise	34,763			3,742			766			—			39,271
Labor expenses	63,734			3,999			1,310			—			69,043
Depreciation and amortization	26,563			607			459			—			27,629
Rent expense	22,257			1,333			560			—			24,150
Other store operating expenses	33,763			2,166			951			(870		)	36,010
Total company store operating costs	181,080			11,847			4,046			(870		)	196,103
Advertising expense	12,420			1,673			10,965			(11,958		)	13,100
General and administrative expenses	7,183			10,659			176			—			18,018
Transaction, severance and related litigation costs	701			48			—			—			749
Total operating costs and expenses	201,384			24,227			15,187			(12,828		)	227,970
Operating income (loss)	46,499			(1,265		)	1,114			—			46,348
Equity in earnings (loss) in affiliates	(1,112		)	—			—			1,112			—
Interest expense (income)	16,602			351			108			—			17,061
Income (loss) before income taxes	28,785			(1,616		)	1,006			1,112			29,287
Income tax expense (benefit)	10,870			165			337			—			11,372
Net income (loss)	$	17,915		$	(1,781	)	$	669		$	1,112		$	17,915
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	754			—			(754		)	754			754
Comprehensive income (loss)	$	18,669		$	(1,781	)	$	(85	)	$	1,866		$	18,669

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended March 29, 2015
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	102,387		$	12,316		$	1,834		$	—		$	116,537
Entertainment and merchandise sales	137,510			4,110			3,124			—			144,744
Total company store sales	239,897			16,426			4,958			—			261,281
Franchise fees and royalties	805			3,422			—			—			4,227
International Association assessments and other fees	286			662			8,653			(9,601		)	—
Total revenues	240,988			20,510			13,611			(9,601		)	265,508
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	25,390			3,244			591			—			29,225
Cost of entertainment and merchandise	7,620			753			149			—			8,522
Total cost of food, beverage, entertainment and merchandise	33,010			3,997			740			—			37,747
Labor expenses	61,732			3,930			1,511			—			67,173
Depreciation and amortization	27,619			1,114			508			—			29,241
Rent expense	22,303			1,494			661			—			24,458
Other store operating expenses	31,509			1,830			1,128			(948		)	33,519
Total company store operating costs	176,173			12,365			4,548			(948		)	192,138
Advertising expense	9,141			1,060			9,904			(8,653		)	11,452
General and administrative expenses	4,893			11,316			117			—			16,326
Transaction, severance and related litigation costs	—			905			—			—			905
Total operating costs and expenses	190,207			25,646			14,569			(9,601		)	220,821
Operating income (loss)	50,781			(5,136		)	(958		)	—			44,687
Equity in earnings (loss) in affiliates	(7,769		)	—			—			7,769			—
Interest expense (income)	16,737			633			129			—			17,499
Income (loss) before income taxes	26,275			(5,769		)	(1,087		)	7,769			27,188
Income tax expense (benefit)	11,533			1,328			(415		)	—			12,446
Net income (loss)	$	14,742		$	(7,097	)	$	(672	)	$	7,769		$	14,742
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1,642		)	—			(1,642		)	1,642			(1,642		)
Comprehensive income (loss)	$	13,100		$	(7,097	)	$	(2,314	)	$	9,411		$	13,100

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 3, 2016
(in thousands)
	Successor
	Issuer		Guarantors		Non-Guarantors		Eliminations		Consolidated
Revenues:
Food and beverage sales	$	—	$	—	$	—	$	—	$	—
Entertainment and merchandise sales	—		—		—		—		—
Total company store sales	—		—		—		—		—
Franchise fees and royalties	—		—		—		—		—
International Association assessments and other fees	—		—		—		—		—
Total revenues	—		—		—		—		—
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	—		—		—		—		—
Cost of entertainment and merchandise	—		—		—		—		—
Total cost of food, beverage, entertainment and merchandise	—		—		—		—		—
Labor expenses	—		—		—		—		—
Depreciation and amortization	—		—		—		—		—
Rent expense	—		—		—		—		—
Other store operating expenses	—		—		—		—		—
Total company store operating costs	—		—		—		—		—
Advertising expense	—		—		—		—		—
General and administrative expenses	—		—		—		—		—
Transaction and severance costs	—		—		—		—		—
Asset impairments	—		—		—		—		—
Total operating costs and expenses	—		—		—		—		—
Operating income (loss)	—		—		—		—		—
Equity in earnings (loss) in affiliates	—		—		—		—		—
Interest expense (income)	—		—		—		—		—
Income (loss) before income taxes	—		—		—		—		—
Income tax expense (benefit)	—		—		—		—		—
Net income (loss)	$	—	$	—	$	—	$	—	$	—
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	—	$	—	$	—	$	—	$	—
Total components of other comprehensive income (loss), net of tax	—		—		—		—		—
Comprehensive income (loss)	$	—	$	—	$	—	$	—	$	—

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended September 28, 2014
(in thousands)
	Successor
	Issuer		Guarantors		Non-Guarantors		Eliminations		Consolidated
Revenues:
Food and beverage sales
Entertainment and merchandise sales
Total company store sales	—		—		—		—		—
Franchise fees and royalties
International Association assessments and other fees
Total revenues	—		—		—		—		—
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage
Cost of entertainment and merchandise
Total cost of food, beverage, entertainment and merchandise	—		—		—		—		—
Labor expenses
Depreciation and amortization
Rent expense
Other store operating expenses
Total company store operating costs	—		—		—		—		—
Advertising expense
General and administrative expenses
Transaction and severance costs
Total operating costs and expenses	—		—		—		—		—
Operating income (loss)	—		—		—		—		—
Equity in earnings (loss) in affiliates									—
Interest expense (income)									—
Income (loss) before income taxes	—		—		—		—		—
Income tax expense (benefit)									—
Net income (loss)	$	—	$	—	$	—	$	—	$	—
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments									$	—
Total components of other comprehensive income (loss), net of tax	—		—		—		—		—
Comprehensive income (loss)	$	—	$	—	$	—	$	—	$	—

Condensed Consolidating Cash Flow Statement

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Three Months Ended April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows provided by (used in) operating activities:	$	40,445		$	3,662		$	(335	)	$	—	$	43,772
Cash flows from investing activities:
Purchases of property and equipment	(18,342		)	(451		)	(30		)	—		(18,823		)
Development of internal use software	(841		)	(2,784		)	—			—		(3,625		)
Proceeds from sale of property and equipment	79			—			—			—		79
Cash flows provided by (used in) investing activities	(19,104		)	(3,235		)	(30		)	—		(22,369		)
Cash flows from financing activities:
Repayments on senior term loan	(1,900		)	—			—			—		(1,900		)
Repayments on note payable	—			(7		)	—			—		(7		)
Payments on capital lease obligations	(100		)	—			(1		)	—		(101		)
Payments on sale leaseback transactions	(474		)	—			—			—		(474		)
Excess tax benefit realized from stock-based compensation	4			—			—			—		4
Cash flows provided by (used in) financing activities	(2,470		)	(7		)	(1		)	—		(2,478		)
Effect of foreign exchange rate changes on cash	—			—			419			—		419
Change in cash and cash equivalents	18,871			420			53			—		19,344
Cash and cash equivalents at beginning of period	42,235			1,797			6,622			—		50,654
Cash and cash equivalents at end of period	$	61,106		$	2,217		$	6,675		$	—	$	69,998

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Three Months Ended March 29, 2015
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	53,409		$	2,476		$	4,663		$	—		$	60,548
Cash flows from investing activities:
Acquisition of Peter Piper Pizza	(663		)	—			—			—			(663		)
Intercompany note	(96		)	2,500			—			(2,404		)	—
Purchases of property and equipment	(14,451		)	(1,023		)	(635		)	—			(16,109		)
Development of internal use software	—			(185		)	—			—			(185		)
Proceeds from sale of property and equipment	97			—			—			—			97
Cash flows provided by (used in) investing activities	(15,113		)	1,292			(635		)	(2,404		)	(16,860		)
Cash flows from financing activities:
Repayments on senior term loan	(1,900		)	—			—			—			(1,900		)
Repayments on Note Payable	—			(11		)							(11		)
Intercompany note	—			96			(2,500		)	2,404			—
Payments on capital lease obligations	(100		)	—			—			—			(100		)
Payments on sale leaseback transactions	(386		)	—			—			—			(386		)
Cash flows provided by (used in) financing activities	(2,386		)	85			(2,500		)	2,404			(2,397		)
Effect of foreign exchange rate changes on cash	—			—			(661		)	—			(661		)
Change in cash and cash equivalents	35,910			3,853			867			—			40,630
Cash and cash equivalents at beginning of period	97,020			6,427			7,547			—			110,994
Cash and cash equivalents at end of period	$	132,930		$	10,280		$	8,414		$	—		$	151,624

XML

Related Party Transactions (Tables)

3 Months Ended

Apr. 03, 2016

Related Party Transaction [Line Items]

Related Party Transactions Disclosure [Text Block]

12. Related Party Transactions:

CEC Entertainment reimburses Apollo Management, L.P. for certain out-of-pocket expenses incurred in connection with travel and Board of Directors related expenses. Expense reimbursements by CEC Entertainment to Apollo totaled $0.5 million for the three months ended April 3, 2016 and are included in “General and administrative expenses” in our Consolidated Statements of Earnings.

XML

Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 29, 2015 USD ($)	Apr. 03, 2016 Country State
Accounting Policies [Abstract]
Number of States in which Entity Operates | State		47
Number of foreign countries in which Entity operates | Country		12
Related Party Transaction [Line Items]
Contributions from franchisees to advertising and media funds | $	$ 0.6

XML

Description of Business and Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details)	3 Months Ended
	Apr. 03, 2016
Franchise Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	25 years
Favorable Lease Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years

XML

Acquisition of CEC Entertainment, Inc. - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 14, 2014	Apr. 03, 2016	Mar. 29, 2015	Sep. 28, 2014	Jan. 15, 2014
Business Acquisition [Line Items]
Transaction and severance costs		$ 749	$ 905
CEC Entertainment, Inc. [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	$ 514,840
Business Combination, Percentage of Outstanding Shares Tendered for Purchase in Merger Agreement	68.00%
Business Acquisition, Percentage of Voting Interests Acquired	90.00%
Business Acquisition, Share Price					$ 54.00
Business Combination, Consideration Transferred	$ 1,400,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Debt	348,000
Business Combination, Consideration Transferred, Transaction and Debt Issuance Costs	65,000
Proceeds from Equity Method Investment, Dividends or Distributions	350,000
Business Acquisition, Goodwill, Expected Tax Deductible Amount				$ 2,900
Bridge Loan [Member] | CEC Entertainment, Inc. [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Liabilities Incurred	248,500
Senior Notes [Member] | CEC Entertainment, Inc. [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Liabilities Incurred	255,000
Term Loan Facility [Member] | CEC Entertainment, Inc. [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Liabilities Incurred	760,000
Revolving Credit Facility [Member] | CEC Entertainment, Inc. [Member]
Business Acquisition [Line Items]
Maximum borrowing capacity of revolving credit facility	$ 150,000

XML

Acquisition of CEC Entertainment, Inc. - Value of Net Assets Acquired (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
		Feb. 14, 2014	Apr. 03, 2016	Mar. 29, 2015	Jan. 15, 2014
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross			$ 0	$ 663
CEC Entertainment, Inc. [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable		$ 350,000
Business Acquisition, Share Price					$ 54.00
Business Combination, Consideration Transferred		1,400,000
Payments to Acquire Businesses, Gross		946,898
Cash and cash equivalents		19,184
Accounts receivable		22,185
Inventories		21,696
Other current assets		16,463
Property, plant and equipment		718,066
Property under capital lease		15,530
Favorable lease interests		14,000
Chuck E. Cheese's tradename		400,000
Franchise agreements		14,000
Indebtedness		(348,000)
Capital Leases		(15,530)
Unfavorable lease interests		(10,160)
Deferred taxes		(268,946)
Other current and non-current liabilities		(93,520)
Net assets acquired		514,840
Excess purchase price allocated to goodwill	[1]	432,058
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets		$ 9,872

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XML

Acquisition of CEC Entertainment, Inc. - Pro Forma Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended					9 Months Ended
	Apr. 03, 2016	Sep. 27, 2015	Mar. 29, 2015	Sep. 28, 2014	Sep. 29, 2013	Sep. 28, 2014	Sep. 29, 2013	Feb. 14, 2014
Business Acquisition [Line Items]
Costs and Expenses			$ 900
Total revenues	$ 274,318		$ 265,508
CEC Entertainment, Inc. [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets								$ 9,872
Total revenues				$ 274,318	$ 265,508	$ 642,082	$ 0
Net loss				(11,003)	$ (11,349)	$ (3,268)	$ (5,223)
Successor [Member]
Business Acquisition [Line Items]
Total revenues		$ 0		$ 0

XML

Acquisition of Peter Piper Pizza Narrative (Details) $ in Millions	Oct. 15, 2014 USD ($)
Peter Piper Pizza [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 113.1

XML

Acquisition of Peter Piper Pizza Goodwill (Details) $ in Millions	Oct. 15, 2014 USD ($)
Peter Piper Pizza [Member]
Business Acquisition [Line Items]
Goodwill, Translation and Purchase Accounting Adjustments	$ 113.1

XML

Acquisition of Peter Piper Pizza Table of Assets Acquired (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended	11 Months Ended
	Oct. 16, 2014	Apr. 03, 2016	Mar. 29, 2015	Sep. 27, 2015	Sep. 27, 2015
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		$ 0	$ 663
Peter Piper Pizza [Member]
Business Acquisition [Line Items]
Other current assets	$ 598			$ 598	$ 598
Cash and cash equivalents	5,267			5,267	5,267
Accounts receivable	511			511	511
Payments to Acquire Businesses, Gross	118,409				119,072
Inventories	820			820	820
Property, plant and equipment	14,383			14,383	14,383
Favorable lease interests	2,000			880	880
Chuck E. Cheese's tradename	24,800			26,700	26,700
Franchise agreements	39,300			39,300	39,300
Other non-current assets	154			154	154
Indebtedness	(120)			(120)	(120)
Below Market Lease, Gross	(3,290)			(3,870)	(3,870)
Deferred taxes	(12,935)			(12,904)	(12,904)
Other current and non-current liabilities	(4,061)			(4,061)	(4,061)
Net assets acquired	67,427			67,658	67,658
Goodwill, Fair Value Disclosure	$ 50,982			51,414	$ 51,414
Peter Piper Pizza [Member] | Additional PPP Goodwill recognized in Q1 2015 [Member]
Business Acquisition [Line Items]
Goodwill, Translation and Purchase Accounting Adjustments		$ 432
Successor [Member] | Peter Piper Pizza [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross				663
Successor [Member] | Peter Piper Pizza [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Purchase Accounting Adjustments				(1,120)
Indefinite-lived Intangible Assets, Purchase Accounting Adjustments				1,900
below market lease purchase accounting adjustment				(580)
Deferred Tax Liability, Increase (Decrease) Due to Tax Effect of Purchase Accounting Adjustments				31
Goodwill, Translation and Purchase Accounting Adjustments				$ 231

XML

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Apr. 03, 2016	Jan. 03, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 613,637	$ 629,047

XML

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended				9 Months Ended
	Feb. 14, 2014	Apr. 03, 2016	Sep. 27, 2015	Mar. 29, 2015	Sep. 29, 2013	Sep. 29, 2013
Property, Plant and Equipment [Line Items]
Depreciation and amortization		$ 28,998		$ 30,398
Depreciation		$ 1,400		1,000
Successor [Member]
Property, Plant and Equipment [Line Items]
Asset Impairment Charges			$ 0
Franchise Agreements [Member]
Property, Plant and Equipment [Line Items]
Amortization of Intangible Assets				$ 500

XML

Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands		3 Months Ended
		Apr. 03, 2016	Sep. 28, 2014	Feb. 14, 2014
Goodwill [Roll Forward]
Goodwill		$ 483,876
Goodwill		$ 483,876
CEC Entertainment, Inc. [Member]
Goodwill [Line Items]
Business Acquisition, Goodwill, Expected Tax Deductible Amount			$ 2,900
Goodwill, Fair Value Disclosure	[1]			$ 432,058

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XML

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended			9 Months Ended
	Feb. 14, 2014	Apr. 03, 2016	Mar. 29, 2015	Sep. 29, 2013	Sep. 27, 2015	Sep. 29, 2013	Sep. 28, 2014
Finite-Lived Intangible Assets [Line Items]
Unfavorable lease amortization period		10 years
Favorable Lease Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets			$ 500
Franchise Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets			$ 500
CEC Entertainment, Inc. [Member]
Finite-Lived Intangible Assets [Line Items]
Off-market Lease, Unfavorable		$ 10,200
Peter Piper Pizza [Member]
Finite-Lived Intangible Assets [Line Items]
Off-market Lease, Unfavorable							$ 3,900
Peter Piper Pizza [Member] | Successor [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill, Translation and Purchase Accounting Adjustments					$ 231
Indefinite-lived Intangible Assets, Purchase Accounting Adjustments					1,900
Finite-Lived Intangible Assets, Purchase Accounting Adjustments					$ (1,120)
Peter Piper Pizza [Member] | Additional PPP Goodwill recognized in Q1 2015 [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill, Translation and Purchase Accounting Adjustments		$ 432

XML

Goodwill and Intangible Assets - Schedule of Indefinite and Definite-lived Intangible Assets (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended			9 Months Ended
	Feb. 14, 2014	Apr. 03, 2016	Mar. 29, 2015	Sep. 29, 2013	Sep. 29, 2013	Jan. 03, 2016
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets		$ 494,880
Finite-lived intangible assets - accumulated amortization		(7,812)
Intangible assets, net		$ 487,068				$ 488,095
Unfavorable lease, Acquired		10 years
Favorable Lease Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets			$ 500
Finite-Lived Intangible Asset, Useful Life		10 years
Finite-lived intangible assets - gross carrying amounts		$ 14,880
Finite-lived intangible assets - accumulated amortization		(4,200)
Finite-lived intangible assets, net		$ 10,680
Franchise Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets			$ 500
Finite-Lived Intangible Asset, Useful Life		25 years
Finite-lived intangible assets - gross carrying amounts		$ 53,300
Finite-lived intangible assets - accumulated amortization		(3,612)
Finite-lived intangible assets, net		49,688
Chuck E. Cheese [Member] | Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets		400,000
Peter Piper Pizza [Member] | Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets		26,700
Trade Names [Member] | Chuck E. Cheese [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets		400,000
Trade Names [Member] | Peter Piper Pizza [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets		$ 26,700

XML

Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) $ in Thousands	Apr. 03, 2016 USD ($)
Favorable Lease Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, net	$ 10,680
Franchise Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, net	$ 49,688

XML

Accounts Payable (Details) - USD ($) $ in Thousands	Apr. 03, 2016	Jan. 03, 2016
Accounts Payable [Line Items]
Accounts Payable, Trade, Current	$ 27,085	$ 35,228
Bank Overdrafts	8,495	8,862
Accounts Payable	$ 35,580	$ 44,090

XML

Indebtedness and Interest Expense - Schedule of Debt (Details) - USD ($) $ in Thousands	Apr. 03, 2016	Jan. 03, 2016	Feb. 19, 2014
Debt Instrument [Line Items]
Bank indebtedness and other long-term debt, less current portion	$ 970,556	$ 971,333
Successor [Member]
Debt Instrument [Line Items]
Long-term debt, gross	999,856	1,001,763
Unamortized original issue discount	2,641	2,776
Deferred Finance Costs, Noncurrent, Net	(19,003)	(20,004)
Current portion	7,656	7,650
Bank indebtedness and other long-term debt, less current portion	970,556	971,333
Term Loan Facility [Member] | Successor [Member]
Debt Instrument [Line Items]
Long-term debt, gross	744,800	746,700
Senior Notes [Member] | Successor [Member]
Debt Instrument [Line Items]
Long-term Debt	255,000
Long-term debt, gross		255,000
Notes Payable, Other Payables [Member] | Successor [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 56	$ 63
Senior Notes due 2022 [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			8.00%

XML

Indebtedness and Interest Expense - Narrative (Details) - USD ($)		3 Months Ended		7 Months Ended	9 Months Ended
		Apr. 03, 2016	Mar. 29, 2015	Sep. 28, 2014	Sep. 27, 2015	Apr. 08, 2016	Jan. 03, 2016	Feb. 14, 2014
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount		$ 3,800,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.00%
Term Loan Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period				4.60%
The Senior Secured Credit Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate					1.00%
The Senior Secured Credit Facilities [Member] | Federal Funds Effective Swap Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate					0.50%
The Senior Secured Credit Facilities [Member] | Adjusted London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate					1.00%
The Senior Secured Credit Facilities [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Additional Margin on Basis Spread of Variable Rate								2.25%
Secured Credit Facilities, Bridge Loan Facility and Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period				5.50%
SecuredCreditFacilitiesAndSeniorNotes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period					5.60%
Term Loan Facility [Member]
Debt Instrument [Line Items]
Interest Expense, Debt	[1]	$ 8,157,000	$ 7,907,000
Term Loan Facility [Member] | Term Loan Facility Maturing 2021 [Member]
Debt Instrument [Line Items]
Payments of Debt Issuance Costs		$ 17,800,000
Federal Funds Rate Minimum					0.25%
Federal Funds Rate Maximum					0.38%
Prime Interest Rate					3.25%
Libor Rate Minimum					0.42%
Libor Rate Maximum					0.44%
The Senior Secured Credit Facilities [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period					4.70%
Unsecured Debt [Member] | Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period		8.30%
Revolving Credit Facility [Member] | Swingline Loan Facility, the Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding		$ 0
Revolving Credit Facility [Member] | Senior Loans [Member] | Swingline Loan Facility, the Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Covenant threshold related to percentage of credit facility drawn					30.00%
Payments of Debt Issuance Costs		3,400,000
Letter of Credit [Member] | Senior Debt Obligations [Member] | Letter of Credit Sub-Facility [Member]
Debt Instrument [Line Items]
Letters of Credit Outstanding, Amount		10,900,000				$ 9,900,000
Successor [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross		999,856,000					$ 1,001,763,000
Successor [Member] | Term Loan Facility [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross		$ 744,800,000					$ 746,700,000
Minimum [Member] | The Senior Secured Credit Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Additional Margin on Basis Spread of Variable Rate								3.00%

[1] Includes amortization of original issue discount.

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Indebtedness and Interest Expense - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands	Apr. 03, 2016	Jan. 03, 2016
Debt Instrument [Line Items]
Bank indebtedness and other long-term debt, less current portion	$ 970,556	$ 971,333
Successor [Member]
Debt Instrument [Line Items]
Long-term debt, gross	999,856	1,001,763
Unamortized original issue discount	(2,641)	(2,776)
Deferred Finance Costs, Noncurrent, Net	19,003	20,004
Current portion	(7,656)	(7,650)
Bank indebtedness and other long-term debt, less current portion	$ 970,556	$ 971,333

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Indebtedness and Interest Expense - Interest Expense (Details) - USD ($) $ in Thousands		3 Months Ended
		Apr. 03, 2016	Mar. 29, 2015	Feb. 14, 2014
Debt Instrument [Line Items]
Amortization of debt issuance costs		$ 1,001	$ 1,001
Interest Expense, Other Long-term Debt		(452)	(196)
Interest expense		17,061	17,499
Term Loan Facility [Member]
Debt Instrument [Line Items]
Interest Expense, Debt	[1]	8,157	7,907
Senior Notes [Member]
Debt Instrument [Line Items]
Interest expense, excluding amortization		5,157	5,157
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Capital Leases, Income Statement, Interest Expense		440	455
Sale Leaseback Obligations [Member]
Debt Instrument [Line Items]
InterestExpenseSaleLeaseback		$ 2,758	$ 2,783
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | The Senior Secured Credit Facilities [Member]
Debt Instrument [Line Items]
Debt Instrument, Additional Margin on Basis Spread of Variable Rate				3.25%

[1] Includes amortization of original issue discount.

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Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands		Apr. 03, 2016	Jan. 03, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Bank indebtedness and other long-term debt, less current portion		$ 970,556	$ 971,333
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Bank indebtedness and other long-term debt, less current portion	[1]	989,559	991,337
Estimate of Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Bank indebtedness and other long-term debt, less current portion		$ 920,101	$ 962,600

[1] Excluding net deferred financing costs

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Other Non-current Liabilities (Details) - USD ($) $ in Thousands	Apr. 03, 2016	Jan. 03, 2016	Dec. 28, 2014	Sep. 28, 2014	Dec. 29, 2013
Other Noncurrent Liabilities [Line Items]
Other noncurrent liabilities	$ 213,890	$ 212,528
Successor [Member]
Other Noncurrent Liabilities [Line Items]
Sale leaseback obligations, less current portion			$ 0
Other noncurrent liabilities				$ 0	$ 24,102

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Commitments and Contingencies (Details) - Merger Agreement [Member] - lawsuit	Jan. 16, 2014	Jul. 21, 2015
Loss Contingencies [Line Items]
New claims filed	4
Loss contingency, members of the Board also senior management		2

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Income Taxes Taxes by Jurisdiction (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Sep. 27, 2015	Mar. 29, 2015	Sep. 28, 2014
Income Taxes [Line Items]
Federal and state income taxes	$ 11,263		$ 12,174
Foreign income taxes	109		272
Income tax expense (benefit)	$ 11,372		$ 12,446
Effective income tax rate	38.80%		45.80%
Successor [Member]
Income Taxes [Line Items]
Income tax expense (benefit)		$ 0		$ 0

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015	Jan. 03, 2016	Feb. 14, 2014
Tax Credit Carryforward [Line Items]
Effective income tax rate	38.80%	45.80%
Deferred income taxes	$ (8,287)	$ (13,268)
Unrecognized tax benefits	3,400		$ 3,300
Unrecognized tax benefits that would decrease effective tax rate and provision for income taxes, if recognized	1,300
Expected decrease in unrecognized tax benefits within next twelve months	200
Total amount of interest and penalties accrued related to unrecognized tax benefits	$ 800		$ 1,700
The Senior Secured Credit Facilities [Member] | Base Rate [Member]
Tax Credit Carryforward [Line Items]
Debt Instrument, Additional Margin on Basis Spread of Variable Rate				2.25%

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Stock-Based Compensation Arrangements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Apr. 03, 2016	Mar. 29, 2015	Jan. 03, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		2,469,610		2,393,084
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price		$ 8.78		$ 8.59	[1]
ShareBasedCompensationArrangementbyShareBasedPaymentAwarad,Options,Outstanding,WeightedAverageRemainingContractualLife		8 years 1 month 20 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value		$ 10,141
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term		3 years 2 months
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 12.51
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		(13,399)
Share-based Compensation Arrangement by Share-bassed Payment Award, Options, Exercised, Weighted Average Exercise Price	[1]	$ 8.86
Tax benefit related to the accelerated vesting of restricted stock awards		$ 4	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price		$ 8.78
ShareBasedCompensationArrangementbyShareBasedPaymentAward,Options,ExpectedtoVest,WeightedAverageRemainingContractualTerm		8 years 1 month 20 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value		$ 9,127
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares		(11,185)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price	[1]	$ 10.91
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number		2,222,650
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options		327,726
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price		$ 8.32
ShareBasedCompensationArrangementbyShareBasedPaymentAward,Options,Exercisable,WeightedAverageRemainingContractualLife		7 years 11 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value		$ 2,861
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (shares)		101,110

[1] The weighted average exercise price reflects the original grant date fair value per option as adjusted for the dividend payment made in August 2015.

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Stock-Based Compensation Arrangements Stock-Based Compensation Arrangements - Summary of Stock-Based Compensation Expense and Associated Tax Benefit Recognized (Details) - USD ($) $ in Thousands		3 Months Ended
		Apr. 03, 2016	Mar. 29, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation costs		$ 168	$ 395
Portion capitalized as property and equipment	[1]	(33)	(4)
Stock-based compensation expense recognized		135	391
Tax benefit recognized from stock-based compensation awards		4	$ 0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options		$ 2,900

[1] We capitalize the portion of stock-based compensation costs related to our design, construction, facilities and legal departments that are directly attributable to our store development projects, such as the design and construction of a new store and the remodeling and expansion of our existing stores. Capitalized stock-based compensation cost attributable to our store development projects is included in “Property and equipment, net” in the Consolidated Balance Sheets.

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Stockholders' Equity - Summary of Changes In Stockholders' Equity (Details) - USD ($)	3 Months Ended
	Apr. 03, 2016	Sep. 27, 2015	Mar. 29, 2015	Sep. 28, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Value, Issued beginning balance	$ 0
Capital in excess of par value beginning balance	356,460,000
Retained earnings beginning balance	(144,598,000)
Accumulated other comprehensive income beginning balance	(2,562,000)
Beginning Balance	208,546,000
Net income (loss)	17,915,000		$ 14,742,000
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	754,000		$ (1,642,000)
Common Stock, Value, Issued ending balance	0
Capital in excess of par value ending balance	356,632,000
Retained earnings ending balance	(126,683,000)
Accumulated other comprehensive income ending balance	(3,316,000)
Ending Balance	$ 227,387,000
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	200
Common Stock, Value, Issued beginning balance	$ 0
Ending Balance (in shares)	200
Common Stock, Value, Issued ending balance	$ 0
Additional Paid-in Capital [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation costs	168,000
Tax benefit from restricted stock, net	4,000
Capital in excess of par value ending balance	356,632,000
Income Statement Location [Domain]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	17,915,000
Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Retained earnings ending balance	(126,683,000)
Other Comprehensive Income (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total components of other comprehensive income (loss), net of tax	754,000
Accumulated Other Comprehensive Income (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accumulated other comprehensive income beginning balance	(2,562,000)
Stockholders' Equity, Total [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	208,546,000
Ending Balance	$ 227,387,000
Successor [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		$ 0		$ 0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		0		0
Total components of other comprehensive income (loss), net of tax		$ 0		$ 0

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Condensed Consolidating Schedules - Balance Sheet (Details) - USD ($) $ in Thousands	Apr. 03, 2016	Jan. 03, 2016	Mar. 29, 2015	Dec. 28, 2014
Current assets:
Cash and cash equivalents	$ 69,998	$ 50,654	$ 151,624	$ 110,994
Restricted Cash and Cash Equivalents	4,142
Accounts receivable	17,658	25,936
Inventories	26,425	23,275
Other current assets	20,830	18,223
Total current assets	139,053	118,088
Property and equipment, net	613,637	629,047
Goodwill	483,876	483,876
Intangible assets, net	487,068	488,095
Intercompany	0	0
Investment in subsidiaries	0	0
Other noncurrent assets	20,276	13,929
Total assets	1,743,910	1,733,035
Current liabilities:
Bank indebtedness and other long-term debt	7,656	7,650
Capital lease obligations	435	421
Accounts payable and accrued expenses	102,203	102,364
Other current liabilities	3,780	3,678
Total current liabilities	114,074	114,113
Capital lease obligations, less current portion	14,934	15,044
Bank indebtedness and other long-term debt, less current portion	970,556	971,333
Deferred tax liability	193,584	201,734
Intercompany	0	0
Other noncurrent liabilities	223,375	222,265
Total liabilities	1,516,523	1,524,489
Stockholder’s equity:
Common stock	0	0
Capital in excess of par value	356,632	356,460
Retained earnings (deficit)	(126,683)	(144,598)
Accumulated other comprehensive income (loss)	(2,562)	(3,316)
Total stockholder’s equity	227,387	208,546
Total liabilities and stockholder’s equity	1,743,910	1,733,035
Issuer
Current assets:
Cash and cash equivalents	61,106	42,235	132,930
Restricted Cash and Cash Equivalents	0
Accounts receivable	14,416
Inventories	23,031
Other current assets	14,608
Total current assets	113,161
Property and equipment, net	570,343
Goodwill	432,462
Intangible assets, net	21,156
Intercompany	129,033
Investment in subsidiaries	422,049
Other noncurrent assets	7,692
Total assets	1,695,896
Current liabilities:
Bank indebtedness and other long-term debt	7,600
Capital lease obligations	430
Accounts payable and accrued expenses	80,532
Other current liabilities	3,452
Total current liabilities	92,014
Capital lease obligations, less current portion	14,867
Bank indebtedness and other long-term debt, less current portion	970,556
Deferred tax liability	178,014
Intercompany	1,479
Other noncurrent liabilities	211,579
Total liabilities	1,468,509
Stockholder’s equity:
Common stock	0
Capital in excess of par value	356,632
Retained earnings (deficit)	(126,683)
Accumulated other comprehensive income (loss)	(2,562)
Total stockholder’s equity	227,387
Total liabilities and stockholder’s equity	1,695,896
Guarantors
Current assets:
Cash and cash equivalents	2,217	1,797	10,280
Restricted Cash and Cash Equivalents	0
Accounts receivable	2,811	3,944
Inventories	3,087	3,021
Other current assets	4,219	3,561
Total current assets	12,334	12,323
Property and equipment, net	34,587	34,539
Goodwill	51,414	51,414
Intangible assets, net	465,912	466,240
Intercompany	27,913	30,716
Investment in subsidiaries	0	0
Other noncurrent assets	11,965	8,940
Total assets	604,125	604,172
Current liabilities:
Bank indebtedness and other long-term debt	56	50
Capital lease obligations	0	0
Accounts payable and accrued expenses	13,381	27,774
Other current liabilities	328	328
Total current liabilities	13,765	28,152
Capital lease obligations, less current portion	0	0
Bank indebtedness and other long-term debt, less current portion	0	13
Deferred tax liability	16,991	17,867
Intercompany	138,099	121,850
Other noncurrent liabilities	11,538	10,784
Total liabilities	180,393	178,666
Stockholder’s equity:
Common stock	0	0
Capital in excess of par value	466,114	466,114
Retained earnings (deficit)	(42,382)	(40,608)
Accumulated other comprehensive income (loss)	0	0
Total stockholder’s equity	423,732	425,506
Total liabilities and stockholder’s equity	604,125	604,172
Non-Guarantors
Current assets:
Cash and cash equivalents	6,675	6,622	$ 8,414
Restricted Cash and Cash Equivalents	4,142
Accounts receivable	8,944	9,468
Inventories	307	295
Other current assets	2,003	1,100
Total current assets	22,071	17,485
Property and equipment, net	8,707	8,593
Goodwill	0	0
Intangible assets, net	0	0
Intercompany	0	0
Investment in subsidiaries	0	0
Other noncurrent assets	619	671
Total assets	31,397	26,749
Current liabilities:
Bank indebtedness and other long-term debt	0	0
Capital lease obligations	5	3
Accounts payable and accrued expenses	8,290	3,270
Other current liabilities	0	0
Total current liabilities	8,295	3,273
Capital lease obligations, less current portion	67	64
Bank indebtedness and other long-term debt, less current portion	0	0
Deferred tax liability	(1,421)	(216)
Intercompany	25,881	26,508
Other noncurrent liabilities	258	219
Total liabilities	33,080	29,848
Stockholder’s equity:
Common stock	0	0
Capital in excess of par value	3,241	3,241
Retained earnings (deficit)	(2,362)	(3,024)
Accumulated other comprehensive income (loss)	(2,562)	(3,316)
Total stockholder’s equity	(1,683)	(3,099)
Total liabilities and stockholder’s equity	31,397	26,749
Subsidiary Issuer [Member]
Current assets:
Cash and cash equivalents		42,235
Accounts receivable		21,595
Inventories		19,959
Other current assets		13,562
Total current assets		97,351
Property and equipment, net		585,915
Goodwill		432,462
Intangible assets, net		21,855
Intercompany		129,151
Investment in subsidiaries		422,407
Other noncurrent assets		4,318
Total assets		1,693,459
Current liabilities:
Bank indebtedness and other long-term debt		7,600
Capital lease obligations		418
Accounts payable and accrued expenses		71,320
Other current liabilities		3,350
Total current liabilities		82,688
Capital lease obligations, less current portion		14,980
Bank indebtedness and other long-term debt, less current portion		971,320
Deferred tax liability		184,083
Intercompany		20,580
Other noncurrent liabilities		211,262
Total liabilities		1,484,913
Stockholder’s equity:
Common stock		0
Capital in excess of par value		356,460
Retained earnings (deficit)		(144,598)
Accumulated other comprehensive income (loss)		(3,316)
Total stockholder’s equity		208,546
Total liabilities and stockholder’s equity		1,693,459
Successor [Member]
Current liabilities:
Bank indebtedness and other long-term debt, less current portion	970,556	971,333
Sale leaseback obligations, less current portion				$ 0
Eliminations
Current assets:
Cash and cash equivalents	0	0
Restricted Cash and Cash Equivalents	0
Accounts receivable	(8,513)	(9,071)
Inventories	0	0
Other current assets	0	0
Total current assets	(8,513)	(9,071)
Property and equipment, net	0	0
Goodwill	0	0
Intangible assets, net	0	0
Intercompany	(156,946)	(159,867)
Investment in subsidiaries	(422,049)	(422,407)
Other noncurrent assets	0	0
Total assets	(587,508)	(591,345)
Current liabilities:
Bank indebtedness and other long-term debt	0	0
Capital lease obligations	0	0
Accounts payable and accrued expenses	0	0
Other current liabilities	0	0
Total current liabilities	0	0
Capital lease obligations, less current portion	0	0
Bank indebtedness and other long-term debt, less current portion	0	0
Deferred tax liability	0	0
Intercompany	(165,459)	(168,938)
Other noncurrent liabilities	0	0
Total liabilities	(165,459)	(168,938)
Stockholder’s equity:
Common stock	0	0
Capital in excess of par value	(469,355)	(469,355)
Retained earnings (deficit)	44,744	43,632
Accumulated other comprehensive income (loss)	2,562	3,316
Total stockholder’s equity	(422,049)	(422,407)
Total liabilities and stockholder’s equity	$ (587,508)	$ (591,345)

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Condensed Consolidating Schedules - P&L (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended				6 Months Ended
	Feb. 14, 2014	Apr. 03, 2016	Sep. 27, 2015	Mar. 29, 2015	Sep. 28, 2014	Jun. 28, 2015	Jan. 03, 2016	Dec. 28, 2014
Condensed Financial Statements, Captions [Line Items]
Payments to acquire franchisee		$ 0		$ 0
Intangible assets, net		487,068					$ 488,095
Proceeds from sale of property and equipment		79		97
Repayments of Senior Debt		1,900		1,900
Net Cash Provided by (Used in) Operating Activities		43,772		60,548
Intercompany Note, Investing				0
Payments for (Proceeds from) Other Investing Activities		3,625		185
Net Cash Provided by (Used in) Investing Activities		(22,369)		(16,860)
Repayments on note payable				(11)
Intercompany Note, Financing				0
Repayments of Long-term Capital Lease Obligations		(101)		(100)
Payments of Dividends				(386)
Excess tax benefit realized from stock-based compensation		4		0
Net Cash Provided by (Used in) Financing Activities		(2,478)		(2,397)
Effect of foreign exchange rate changes on cash		419		(661)
Change in cash and cash equivalents		19,344		40,630
REVENUES:
Food and beverage sales		122,202		116,537
Entertainment and merchandise sales		147,557		144,744
Total company store sales		269,759		261,281
Franchise fees and royalties		4,559		4,227
International Association assessments and other fees		0		0
Total revenues		274,318		265,508
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)		30,521		29,225
Cost of entertainment and merchandise (exclusive of items shown separately below)		8,750		8,522
Total cost of food, beverage, entertainment and merchandise		39,271		37,747
Labor expenses		69,043		67,173
Depreciation and amortization		27,629		29,241
Other store operating expenses		36,010		33,519
Total company store operating costs		196,103		192,138
Other costs and expenses:
Advertising expense		13,100		11,452
General and administrative expenses		18,018		16,326
Transaction and severance costs		749		905
Total operating costs and expenses		227,970		220,821
Rent expense		24,150		24,458
Operating income (loss)		46,348		44,687
Equity in earnings (loss) in affiliates		0		0
Interest expense (income)		17,061		17,499
Income (Loss) from Continuing Operations before Income Taxes, Domestic		29,287		27,188
Income tax expense (benefit)		11,372		12,446
Net income (loss)		17,915		14,742
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		754		(1,642)
Components of other comprehensive income (loss), net of tax:
Comprehensive income (loss)		(18,669)		(13,100)
Cash Equivalents, at Carrying Value				151,624				$ 110,994
Cash and cash equivalents		69,998		151,624			50,654	110,994
Predecessor [Member]
Other costs and expenses:
Transaction and severance costs	$ 11,600
Successor [Member]
REVENUES:
Food and beverage sales			$ 0
Entertainment and merchandise sales			0
Total company store sales			0		$ 0
Franchise fees and royalties			0
International Association assessments and other fees			0
Total revenues			0		$ 0
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)			0
Cost of entertainment and merchandise (exclusive of items shown separately below)			0
Total cost of food, beverage, entertainment and merchandise			0		$ 0
Labor expenses			0
Depreciation and amortization			0
Other store operating expenses			0
Total company store operating costs			0		$ 0
Other costs and expenses:
Advertising expense			0
General and administrative expenses			0
Asset Impairment Charges			0
Transaction and severance costs			0	900
Total operating costs and expenses			0		$ 0
Rent expense			0
Operating income (loss)			0		$ 0
Equity in earnings (loss) in affiliates			0		0
Interest expense (income)			0		0
Income (Loss) from Continuing Operations before Income Taxes, Domestic			0		0
Income tax expense (benefit)			0		0
Net income (loss)			0		0
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax			0		0
Components of other comprehensive income (loss), net of tax:
Total components of other comprehensive income (loss), net of tax			0		0
Comprehensive income (loss)			0		$ 0
Issuer
Condensed Financial Statements, Captions [Line Items]
Intangible assets, net		21,156
Proceeds from sale of property and equipment		79		97
Repayments of Senior Debt		1,900		1,900
Net Cash Provided by (Used in) Operating Activities		40,445		53,409
Intercompany Note, Investing				(96)
Payments for (Proceeds from) Other Investing Activities		841		0
Net Cash Provided by (Used in) Investing Activities		(19,104)		(15,113)
Repayments on note payable				0
Intercompany Note, Financing				0
Repayments of Long-term Capital Lease Obligations		(100)		(100)
Payments of Dividends				(386)
Excess tax benefit realized from stock-based compensation		4
Net Cash Provided by (Used in) Financing Activities		(2,470)		(2,386)
Effect of foreign exchange rate changes on cash		0		0
Change in cash and cash equivalents		18,871		35,910
REVENUES:
Food and beverage sales		107,822		102,387
Entertainment and merchandise sales		139,208		137,510
Total company store sales		247,030		239,897
Franchise fees and royalties		598		805
International Association assessments and other fees		255		286
Total revenues		247,883		240,988
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)		26,644		25,390
Cost of entertainment and merchandise (exclusive of items shown separately below)		8,119		7,620
Total cost of food, beverage, entertainment and merchandise		34,763		33,010
Labor expenses		63,734		61,732
Depreciation and amortization		26,563		27,619
Other store operating expenses		33,763		31,509
Total company store operating costs		181,080		176,173
Other costs and expenses:
Advertising expense		12,420		9,141
General and administrative expenses		7,183		4,893
Transaction and severance costs		701		0
Total operating costs and expenses		201,384		190,207
Rent expense		22,257		22,303
Operating income (loss)		46,499		50,781
Equity in earnings (loss) in affiliates		(1,112)		(7,769)
Interest expense (income)		16,602		16,737
Income (Loss) from Continuing Operations before Income Taxes, Domestic		28,785		26,275
Income tax expense (benefit)		10,870		11,533
Net income (loss)		17,915		14,742
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		754		(1,642)
Components of other comprehensive income (loss), net of tax:
Comprehensive income (loss)		(18,669)		(13,100)
Cash Equivalents, at Carrying Value								97,020
Cash and cash equivalents		61,106		132,930			42,235
Guarantors
Condensed Financial Statements, Captions [Line Items]
Intangible assets, net		465,912					466,240
Proceeds from sale of property and equipment		0		0
Repayments of Senior Debt		0		0
Net Cash Provided by (Used in) Operating Activities		3,662		2,476
Intercompany Note, Investing				2,500
Payments for (Proceeds from) Other Investing Activities		2,784		185
Net Cash Provided by (Used in) Investing Activities		(3,235)		1,292
Repayments on note payable				(11)
Intercompany Note, Financing				96
Repayments of Long-term Capital Lease Obligations		0		0
Payments of Dividends				0
Net Cash Provided by (Used in) Financing Activities		(7)		85
Effect of foreign exchange rate changes on cash		0		0
Change in cash and cash equivalents		420		3,853
REVENUES:
Food and beverage sales		12,788		12,316
Entertainment and merchandise sales		5,598		4,110
Total company store sales		18,386		16,426
Franchise fees and royalties		3,961		3,422
International Association assessments and other fees		615		662
Total revenues		22,962		20,510
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)		3,297		3,244
Cost of entertainment and merchandise (exclusive of items shown separately below)		445		753
Total cost of food, beverage, entertainment and merchandise		3,742		3,997
Labor expenses		3,999		3,930
Depreciation and amortization		607		1,114
Other store operating expenses		2,166		1,830
Total company store operating costs		11,847		12,365
Other costs and expenses:
Advertising expense		1,673		1,060
General and administrative expenses		10,659		11,316
Transaction and severance costs		48		905
Total operating costs and expenses		24,227		25,646
Rent expense		1,333		1,494
Operating income (loss)		(1,265)		(5,136)
Equity in earnings (loss) in affiliates		0		0
Interest expense (income)		351		633
Income (Loss) from Continuing Operations before Income Taxes, Domestic		(1,616)		(5,769)
Income tax expense (benefit)		165		1,328
Net income (loss)		(1,781)		(7,097)
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		0		0
Components of other comprehensive income (loss), net of tax:
Comprehensive income (loss)		1,781		7,097
Cash Equivalents, at Carrying Value								6,427
Cash and cash equivalents		2,217		10,280			1,797
Guarantors | Successor [Member]
Condensed Financial Statements, Captions [Line Items]
Excess tax benefit realized from stock-based compensation						$ 0
REVENUES:
Food and beverage sales			0
Entertainment and merchandise sales			0
Total company store sales			0		$ 0
Franchise fees and royalties			0
International Association assessments and other fees			0
Total revenues			0		$ 0
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)			0
Cost of entertainment and merchandise (exclusive of items shown separately below)			0
Total cost of food, beverage, entertainment and merchandise			0		$ 0
Labor expenses			0
Depreciation and amortization			0
Other store operating expenses			0
Total company store operating costs			0		$ 0
Other costs and expenses:
Advertising expense			0
General and administrative expenses			0
Asset Impairment Charges			0
Transaction and severance costs			0
Total operating costs and expenses			0		$ 0
Rent expense			0
Operating income (loss)			0		$ 0
Equity in earnings (loss) in affiliates			0
Interest expense (income)			0
Income (Loss) from Continuing Operations before Income Taxes, Domestic			0		$ 0
Income tax expense (benefit)			0
Net income (loss)			0		$ 0
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax			0
Components of other comprehensive income (loss), net of tax:
Total components of other comprehensive income (loss), net of tax			0		$ 0
Comprehensive income (loss)			0		$ 0
Non-Guarantors
Condensed Financial Statements, Captions [Line Items]
Intangible assets, net		0					0
Proceeds from sale of property and equipment		0		0
Repayments of Senior Debt		0		0
Net Cash Provided by (Used in) Operating Activities		(335)		4,663
Intercompany Note, Investing				0
Payments for (Proceeds from) Other Investing Activities		0
Net Cash Provided by (Used in) Investing Activities		(30)		(635)
Intercompany Note, Financing				(2,500)
Repayments of Long-term Capital Lease Obligations		(1)		0
Payments of Dividends				0
Net Cash Provided by (Used in) Financing Activities		(1)		(2,500)
Effect of foreign exchange rate changes on cash		419		(661)
Change in cash and cash equivalents		53		867
REVENUES:
Food and beverage sales		1,592		1,834
Entertainment and merchandise sales		2,751		3,124
Total company store sales		4,343		4,958
Franchise fees and royalties		0		0
International Association assessments and other fees		11,958		8,653
Total revenues		16,301		13,611
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)		580		591
Cost of entertainment and merchandise (exclusive of items shown separately below)		186		149
Total cost of food, beverage, entertainment and merchandise		766		740
Labor expenses		1,310		1,511
Depreciation and amortization		459		508
Other store operating expenses		951		1,128
Total company store operating costs		4,046		4,548
Other costs and expenses:
Advertising expense		10,965		9,904
General and administrative expenses		176		117
Transaction and severance costs		0		0
Total operating costs and expenses		15,187		14,569
Rent expense		560		661
Operating income (loss)		1,114		(958)
Equity in earnings (loss) in affiliates		0		0
Interest expense (income)		108		129
Income (Loss) from Continuing Operations before Income Taxes, Domestic		1,006		(1,087)
Income tax expense (benefit)		337		(415)
Net income (loss)		669		(672)
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		(754)		(1,642)
Components of other comprehensive income (loss), net of tax:
Comprehensive income (loss)		85		2,314
Cash Equivalents, at Carrying Value								7,547
Cash and cash equivalents		6,675		$ 8,414			6,622
Non-Guarantors | Predecessor [Member]
Condensed Financial Statements, Captions [Line Items]
Repayments on note payable
Non-Guarantors | Successor [Member]
Condensed Financial Statements, Captions [Line Items]
Payments for (Proceeds from) Other Investing Activities				$ 0
Excess tax benefit realized from stock-based compensation						0
REVENUES:
Food and beverage sales			0
Entertainment and merchandise sales			0
Total company store sales			0		$ 0
Franchise fees and royalties			0
International Association assessments and other fees			0
Total revenues			0		$ 0
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)			0
Cost of entertainment and merchandise (exclusive of items shown separately below)			0
Total cost of food, beverage, entertainment and merchandise			0		$ 0
Labor expenses			0
Depreciation and amortization			0
Other store operating expenses			0
Total company store operating costs			0		$ 0
Other costs and expenses:
Advertising expense			0
General and administrative expenses			0
Asset Impairment Charges			0
Transaction and severance costs			0
Total operating costs and expenses			0		$ 0
Rent expense			0
Operating income (loss)			0		$ 0
Equity in earnings (loss) in affiliates			0
Interest expense (income)			0
Income (Loss) from Continuing Operations before Income Taxes, Domestic			0		$ 0
Income tax expense (benefit)			0
Net income (loss)			0		$ 0
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax			0
Components of other comprehensive income (loss), net of tax:
Total components of other comprehensive income (loss), net of tax			0		$ 0
Comprehensive income (loss)			0		$ 0
Subsidiary Issuer [Member]
Condensed Financial Statements, Captions [Line Items]
Intangible assets, net							21,855
Components of other comprehensive income (loss), net of tax:
Cash and cash equivalents							42,235
Subsidiary Issuer [Member] | Successor [Member]
REVENUES:
Food and beverage sales			0
Entertainment and merchandise sales			0
Total company store sales			0		$ 0
Franchise fees and royalties			0
International Association assessments and other fees			0
Total revenues			0		$ 0
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)			0
Cost of entertainment and merchandise (exclusive of items shown separately below)			0
Total cost of food, beverage, entertainment and merchandise			0		$ 0
Labor expenses			0
Depreciation and amortization			0
Other store operating expenses			0
Total company store operating costs			0		$ 0
Other costs and expenses:
Advertising expense			0
General and administrative expenses			0
Asset Impairment Charges			0
Transaction and severance costs			0
Total operating costs and expenses			0		$ 0
Rent expense			0
Operating income (loss)			0		$ 0
Equity in earnings (loss) in affiliates			0
Interest expense (income)			0
Income (Loss) from Continuing Operations before Income Taxes, Domestic			0		$ 0
Income tax expense (benefit)			0
Net income (loss)			0		$ 0
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax			0
Components of other comprehensive income (loss), net of tax:
Total components of other comprehensive income (loss), net of tax			0		$ 0
Comprehensive income (loss)			0		$ 0
Eliminations
Components of other comprehensive income (loss), net of tax:
Cash Equivalents, at Carrying Value				0				$ 0
Eliminations | Successor [Member]
Other costs and expenses:
Transaction and severance costs
Eliminations
Condensed Financial Statements, Captions [Line Items]
Intangible assets, net		0					0
Proceeds from sale of property and equipment		0		0
Repayments of Senior Debt		0		0
Net Cash Provided by (Used in) Operating Activities		0		0
Intercompany Note, Investing				(2,404)
Payments for (Proceeds from) Other Investing Activities		0
Net Cash Provided by (Used in) Investing Activities		0		(2,404)
Intercompany Note, Financing				2,404
Repayments of Long-term Capital Lease Obligations		0		0
Payments of Dividends				0
Net Cash Provided by (Used in) Financing Activities		0		2,404
Effect of foreign exchange rate changes on cash		0		0
Change in cash and cash equivalents		0		0
REVENUES:
Food and beverage sales		0		0
Entertainment and merchandise sales		0		0
Total company store sales		0		0
Franchise fees and royalties		0		0
International Association assessments and other fees		(12,828)		(9,601)
Total revenues		(12,828)		(9,601)
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)		0		0
Cost of entertainment and merchandise (exclusive of items shown separately below)		0		0
Total cost of food, beverage, entertainment and merchandise		0		0
Labor expenses		0		0
Depreciation and amortization		0		0
Other store operating expenses		(870)		(948)
Total company store operating costs		(870)		(948)
Other costs and expenses:
Advertising expense		(11,958)		(8,653)
General and administrative expenses		0		0
Transaction and severance costs		0		0
Total operating costs and expenses		(12,828)		(9,601)
Rent expense		0		0
Operating income (loss)		0		0
Equity in earnings (loss) in affiliates		1,112		7,769
Interest expense (income)		0		0
Income (Loss) from Continuing Operations before Income Taxes, Domestic		1,112		7,769
Income tax expense (benefit)		0		0
Net income (loss)		1,112		7,769
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		754		1,642
Components of other comprehensive income (loss), net of tax:
Comprehensive income (loss)		(1,866)		$ (9,411)
Cash and cash equivalents		$ 0					$ 0
Eliminations | Predecessor [Member]
Condensed Financial Statements, Captions [Line Items]
Repayments on note payable
Eliminations | Successor [Member]
Condensed Financial Statements, Captions [Line Items]
Payments for (Proceeds from) Other Investing Activities				$ 0
Excess tax benefit realized from stock-based compensation						$ 0
REVENUES:
Food and beverage sales			0
Entertainment and merchandise sales			0
Total company store sales			0		$ 0
Franchise fees and royalties			0
International Association assessments and other fees			0
Total revenues			0		$ 0
Company store operating costs:
Cost of food and beverage (exclusive of items shown separately below)			0
Cost of entertainment and merchandise (exclusive of items shown separately below)			0
Total cost of food, beverage, entertainment and merchandise			0		$ 0
Labor expenses			0
Depreciation and amortization			0
Other store operating expenses			0
Total company store operating costs			0		$ 0
Other costs and expenses:
Advertising expense			0
General and administrative expenses			0
Asset Impairment Charges			0
Transaction and severance costs			0
Total operating costs and expenses			0		$ 0
Rent expense			0
Operating income (loss)			0		$ 0
Equity in earnings (loss) in affiliates			0
Interest expense (income)			0
Income (Loss) from Continuing Operations before Income Taxes, Domestic			0		$ 0
Income tax expense (benefit)			0
Net income (loss)			0		$ 0
Components of other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax			0
Components of other comprehensive income (loss), net of tax:
Total components of other comprehensive income (loss), net of tax			0		$ 0
Comprehensive income (loss)			$ 0		$ 0

XML

Condensed Consolidating Schedules - Cash Flow (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended				6 Months Ended
	Feb. 14, 2014	Apr. 03, 2016	Sep. 27, 2015	Mar. 29, 2015	Sep. 28, 2014	Jun. 28, 2015	Jan. 03, 2016	Dec. 28, 2014
Condensed Financial Statements, Captions [Line Items]
Capital lease obligations, less current portion		$ 14,934					$ 15,044
Capital lease obligations		435					421
Transaction and severance costs		749		$ 905
Cash flows provided by (used in) operating activities:
Net Cash Provided by (Used in) Operating Activities		43,772		60,548
Cash flows provided by (used in) investing activities:
Acquisition of Predecessor		0		(663)
Other Payments to Acquire Businesses				(663)
Payments to acquire franchisee		0		0
Intercompany Note, Investing				0
Proceeds from sale of property and equipment		(18,823)		(16,109)
Proceeds from Sale of Property, Plant, and Equipment		79		97
Payments to Develop Software		(3,625)		(185)
Net cash used in investing activities		(22,369)		(16,860)
Repayments on senior term loan		(1,900)		(1,900)
Repayments of Notes Payable		(7)
Cash flows from financing activities:
Intercompany Note, Financing				0
Repayments on note payable				(11)
Repayments of Long-term Capital Lease Obligations		(101)		(100)
Sale Leaseback Transaction, Payments, Financing Activities		(474)		(386)
Payments of Dividends				(386)
Excess tax benefit realized from stock-based compensation		4		0
Net cash provided by (used in) financing activities		(2,478)		(2,397)
Effect of foreign exchange rate changes on cash		419		(661)
Change in cash and cash equivalents		19,344		40,630
Cash and cash equivalents at beginning of period		50,654		110,994		$ 110,994
Cash and cash equivalents at end of period		69,998		151,624
Cash Equivalents, at Carrying Value				151,624				$ 110,994
Guarantors
Condensed Financial Statements, Captions [Line Items]
Capital lease obligations, less current portion		0					0
Capital lease obligations		0					0
Transaction and severance costs		48		905
Cash flows provided by (used in) operating activities:
Net Cash Provided by (Used in) Operating Activities		3,662		2,476
Cash flows provided by (used in) investing activities:
Other Payments to Acquire Businesses				0
Intercompany Note, Investing				2,500
Proceeds from sale of property and equipment		(451)		(1,023)
Proceeds from Sale of Property, Plant, and Equipment		0		0
Payments to Develop Software		(2,784)		(185)
Net cash used in investing activities		(3,235)		1,292
Repayments on senior term loan		0		0
Repayments of Notes Payable		(7)
Cash flows from financing activities:
Intercompany Note, Financing				96
Repayments on note payable				(11)
Repayments of Long-term Capital Lease Obligations		0		0
Sale Leaseback Transaction, Payments, Financing Activities		0
Payments of Dividends				0
Net cash provided by (used in) financing activities		(7)		85
Effect of foreign exchange rate changes on cash		0		0
Change in cash and cash equivalents		420		3,853
Cash and cash equivalents at beginning of period		1,797
Cash and cash equivalents at end of period		2,217		10,280
Cash Equivalents, at Carrying Value								6,427
Non-Guarantors
Condensed Financial Statements, Captions [Line Items]
Capital lease obligations, less current portion		67					64
Capital lease obligations		5					3
Transaction and severance costs		0		0
Cash flows provided by (used in) operating activities:
Net Cash Provided by (Used in) Operating Activities		(335)		4,663
Cash flows provided by (used in) investing activities:
Other Payments to Acquire Businesses				0
Intercompany Note, Investing				0
Proceeds from sale of property and equipment		(30)		(635)
Proceeds from Sale of Property, Plant, and Equipment		0		0
Payments to Develop Software		0
Net cash used in investing activities		(30)		(635)
Repayments on senior term loan		0		0
Repayments of Notes Payable		0
Cash flows from financing activities:
Intercompany Note, Financing				(2,500)
Repayments of Long-term Capital Lease Obligations		(1)		0
Sale Leaseback Transaction, Payments, Financing Activities		0
Payments of Dividends				0
Net cash provided by (used in) financing activities		(1)		(2,500)
Effect of foreign exchange rate changes on cash		419		(661)
Change in cash and cash equivalents		53		867
Cash and cash equivalents at beginning of period		6,622
Cash and cash equivalents at end of period		6,675		8,414
Cash Equivalents, at Carrying Value								7,547
Issuer
Condensed Financial Statements, Captions [Line Items]
Capital lease obligations, less current portion		14,867
Capital lease obligations		430
Transaction and severance costs		701		0
Cash flows provided by (used in) operating activities:
Net Cash Provided by (Used in) Operating Activities		40,445		53,409
Cash flows provided by (used in) investing activities:
Other Payments to Acquire Businesses				(663)
Intercompany Note, Investing				(96)
Proceeds from sale of property and equipment		(18,342)		(14,451)
Proceeds from Sale of Property, Plant, and Equipment		79		97
Payments to Develop Software		(841)		0
Net cash used in investing activities		(19,104)		(15,113)
Repayments on senior term loan		(1,900)		(1,900)
Repayments of Notes Payable		0
Cash flows from financing activities:
Intercompany Note, Financing				0
Repayments on note payable				0
Repayments of Long-term Capital Lease Obligations		(100)		(100)
Sale Leaseback Transaction, Payments, Financing Activities		(474)
Payments of Dividends				(386)
Excess tax benefit realized from stock-based compensation		4
Net cash provided by (used in) financing activities		(2,470)		(2,386)
Effect of foreign exchange rate changes on cash		0		0
Change in cash and cash equivalents		18,871		35,910
Cash and cash equivalents at beginning of period		42,235
Cash and cash equivalents at end of period		61,106		132,930
Cash Equivalents, at Carrying Value								97,020
Eliminations
Cash flows from financing activities:
Cash Equivalents, at Carrying Value				0				$ 0
Successor [Member]
Condensed Financial Statements, Captions [Line Items]
Transaction and severance costs			$ 0	900
Successor [Member] | Guarantors
Condensed Financial Statements, Captions [Line Items]
Transaction and severance costs			0
Cash flows from financing activities:
Excess tax benefit realized from stock-based compensation						0
Successor [Member] | Non-Guarantors
Condensed Financial Statements, Captions [Line Items]
Transaction and severance costs			0
Cash flows provided by (used in) investing activities:
Payments to Develop Software				$ 0
Cash flows from financing activities:
Excess tax benefit realized from stock-based compensation						0
Successor [Member] | Eliminations
Condensed Financial Statements, Captions [Line Items]
Transaction and severance costs
Predecessor [Member]
Condensed Financial Statements, Captions [Line Items]
Transaction and severance costs	$ 11,600
Predecessor [Member] | Non-Guarantors
Cash flows from financing activities:
Repayments on note payable
Eliminations
Condensed Financial Statements, Captions [Line Items]
Capital lease obligations, less current portion		0					0
Capital lease obligations		0					$ 0
Transaction and severance costs		0		$ 0
Cash flows provided by (used in) operating activities:
Net Cash Provided by (Used in) Operating Activities		0		0
Cash flows provided by (used in) investing activities:
Other Payments to Acquire Businesses				0
Intercompany Note, Investing				(2,404)
Proceeds from sale of property and equipment		0		0
Proceeds from Sale of Property, Plant, and Equipment		0		0
Payments to Develop Software		0
Net cash used in investing activities		0		(2,404)
Repayments on senior term loan		0		0
Repayments of Notes Payable		0
Cash flows from financing activities:
Intercompany Note, Financing				2,404
Repayments of Long-term Capital Lease Obligations		0		0
Sale Leaseback Transaction, Payments, Financing Activities		0
Payments of Dividends				0
Net cash provided by (used in) financing activities		0		2,404
Effect of foreign exchange rate changes on cash		0		0
Change in cash and cash equivalents		0		0
Cash and cash equivalents at beginning of period		0
Cash and cash equivalents at end of period		$ 0
Eliminations | Successor [Member]
Condensed Financial Statements, Captions [Line Items]
Transaction and severance costs			$ 0
Cash flows provided by (used in) investing activities:
Payments to Develop Software				$ 0
Cash flows from financing activities:
Excess tax benefit realized from stock-based compensation						$ 0
Eliminations | Predecessor [Member]
Cash flows from financing activities:
Repayments on note payable

XML

Subsequent Events (Details) $ in Millions	Oct. 15, 2014 USD ($)
Peter Piper Pizza [Member]
Subsequent Event [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 113.1

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Related Party Transactions (Details) $ in Millions	3 Months Ended
	Apr. 03, 2016 USD ($)
Issuer
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 0.5