Condensed Consolidating Schedules (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2016

Sep. 27, 2015

Jan. 03, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of October 2, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	71,704		$	1,144		$	7,009		$	—		$	79,857
Restricted cash	—			—			196			—			196
Accounts receivable	13,664			2,188			7,343			(6,882		)	16,313
Inventories	18,260			3,012			256			—			21,528
Other current assets	13,855			6,331			1,548			—			21,734
Total current assets	117,483			12,675			16,352			(6,882		)	139,628
Property and equipment, net	545,922			45,982			7,749			—			599,653
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	19,802			465,255			—			—			485,057
Intercompany	144,080			34,612			—			(178,692		)	—
Investment in subsidiaries	415,015			—			—			(415,015		)	—
Other noncurrent assets	2,641			19,791			429			—			22,861
Total assets	$	1,677,405		$	629,729		$	24,530		$	(600,589	)	$	1,731,075
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	26		$	—		$	—		$	7,626
Capital lease obligations, current portion	471			—			6			—			477
Accounts payable and accrued expenses	80,161			17,494			3,680			—			101,335
Other current liabilities	3,641			328			—			—			3,969
Total current liabilities	91,873			17,848			3,686			—			113,407
Capital lease obligations, less current portion	14,618			—			63			—			14,681
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	969,030			—			—			—			969,030
Deferred tax liability	172,592			19,110			(170		)	—			191,532
Intercompany	—			159,821			25,753			(185,574		)	—
Other noncurrent liabilities	213,048			12,823			310			—			226,181
Total liabilities	1,461,161			209,602			29,642			(185,574		)	1,514,831
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	356,996			466,114			3,241			(469,355		)	356,996
Retained earnings (deficit)	(138,139		)	(45,987		)	(5,740		)	51,727			(138,139		)
Accumulated other comprehensive income (loss)	(2,613		)	—			(2,613		)	2,613			(2,613		)
Total stockholder's equity	216,244			420,127			(5,112		)	(415,015		)	216,244
Total liabilities and stockholder's equity	$	1,677,405		$	629,729		$	24,530		$	(600,589	)	$	1,731,075

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
Restricted cash	—			—			—			—			—
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 October 2, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	88,557		$	11,892		$	1,535		$	—		$	101,984
Entertainment and merchandise sales	112,306			6,703			2,755			—			121,764
Total company store sales	200,863			18,595			4,290			—			223,748
Franchise fees and royalties	292			4,030			—			—			4,322
International Association assessments and other fees	273			615			8,431			(9,319		)	—
Total revenues	201,428			23,240			12,721			(9,319		)	228,070
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	21,773			3,194			540			—			25,507
Cost of entertainment and merchandise	7,391			428			195			—			8,014
Total cost of food, beverage, entertainment and merchandise	29,164			3,622			735			—			33,521
Labor expenses	56,386			4,039			1,296			—			61,721
Depreciation and amortization	26,501			650			516			—			27,667
Rent expense	22,235			1,331			554			—			24,120
Other store operating expenses	35,659			3,033			953			(888		)	38,757
Total company store operating costs	169,945			12,675			4,054			(888		)	185,786
Advertising expense	8,967			828			10,151			(8,431		)	11,515
General and administrative expenses	6,741			10,270			273			—			17,284
Transaction, severance and related litigation costs	166			—			—			—			166
Asset impairments	709			—			63			—			772
Total operating costs and expenses	186,528			23,773			14,541			(9,319		)	215,523
Operating income (loss)	14,900			(533		)	(1,820		)	—			12,547
Equity in earnings (loss) in affiliates	(2,299		)	—			—			2,299			—
Interest expense	15,685			1,440			112			—			17,237
Income (loss) before income taxes	(3,084		)	(1,973		)	(1,932		)	2,299			(4,690		)
Income tax expense (benefit)	(680		)	(935		)	(671		)	—			(2,286		)
Net income (loss)	$	(2,404	)	$	(1,038	)	$	(1,261	)	$	2,299		$	(2,404	)
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(212		)	—			(212		)	212			(212		)
Comprehensive income (loss)	$	(2,616	)	$	(1,038	)	$	(1,473	)	$	2,511		$	(2,616	)

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended September 27, 2015
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	83,524		$	13,202		$	1,517		$	—		$	98,243
Entertainment and merchandise sales	112,266			3,808			2,679			—			118,753
Total company store sales	195,790			17,010			4,196			—			216,996
Franchise fees and royalties	493			4,438			10			—			4,941
International Association assessments and other fees	250			755			11,861			(12,866		)	—
Total revenues	196,533			22,203			16,067			(12,866		)	221,937
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	21,459			3,061			512			—			25,032
Cost of entertainment and merchandise	7,293			389			181			—			7,863
Total cost of food, beverage, entertainment and merchandise	28,752			3,450			693			—			32,895
Labor expenses	54,890			3,751			1,357			—			59,998
Depreciation and amortization	26,911			934			549			—			28,394
Rent expense	22,105			1,243			631			—			23,979
Other store operating expenses	34,362			2,215			1,042			(1,032		)	36,587
Total company store operating costs	167,020			11,593			4,272			(1,032		)	181,853
Advertising expense	12,368			798			8,960			(11,834		)	10,292
General and administrative expenses	3,856			10,606			130			—			14,592
Transaction, severance and litigation related costs	200			1,626			—			—			1,826
Asset impairments	766			20			89			—			875
Total operating costs and expenses	184,210			24,643			13,451			(12,866		)	209,438
Operating income (loss)	12,323			(2,440		)	2,616			—			12,499
Equity in earnings (loss) in affiliates	(605		)	—			—			605			—
Interest expense	16,728			365			116			—			17,209
Income (loss) before income taxes	(5,010		)	(2,805		)	2,500			605			(4,710		)
Income tax expense (benefit)	(1,808		)	(744		)	1,044			—			(1,508		)
Net income (loss)	$	(3,202	)	$	(2,061	)	$	1,456		$	605		$	(3,202	)
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1,034		)	—			(1,034		)	1,034			(1,034		)
Comprehensive income (loss)	$	(4,236	)	$	(2,061	)	$	422		$	1,639		$	(4,236	)

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Nine Months Ended October 2, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	280,391		$	36,779		$	4,421		$	—		$	321,591
Entertainment and merchandise sales	358,192			18,151			7,635			—			383,978
Total company store sales	638,583			54,930			12,056			—			705,569
Franchise fees and royalties	1,561			11,879			—			—			13,440
International Association assessments and other fees	735			1,845			28,746			(31,326		)	—
Total revenues	640,879			68,654			40,802			(31,326		)	719,009
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	69,431			9,632			1,639			—			80,702
Cost of entertainment and merchandise	23,149			1,329			526			—			25,004
Total cost of food, beverage, entertainment and merchandise	92,580			10,961			2,165			—			105,706
Labor expenses	175,495			11,842			3,833			—			191,170
Depreciation and amortization	81,661			1,884			1,484			—			85,029
Rent expense	66,601			4,043			1,674			—			72,318
Other store operating expenses	104,297			7,568			2,884			(2,606		)	112,143
Total company store operating costs	520,634			36,298			12,040			(2,606		)	566,366
Advertising expense	30,188			3,548			31,761			(28,720		)	36,777
General and administrative expenses	19,669			30,996			557			—			51,222
Transaction, severance and related litigation costs	1,294			55			—			—			1,349
Asset Impairments	709			—			63			—			772
Total operating costs and expenses	572,494			70,897			44,421			(31,326		)	656,486
Operating income (loss)	68,385			(2,243		)	(3,619		)	—			62,523
Equity in earnings (loss) in affiliates	(8,096		)	—			—			8,096			—
Interest expense (income)	47,765			3,328			326			—			51,419
Income (loss) before income taxes	12,524			(5,571		)	(3,945		)	8,096			11,104
Income tax expense (benefit)	6,065			(185		)	(1,235		)	—			4,645
Net income (loss)	$	6,459		$	(5,386	)	$	(2,710	)	$	8,096		$	6,459
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	703			—			703			(703		)	703
Comprehensive income (loss)	$	7,162		$	(5,386	)	$	(2,007	)	$	7,393		$	7,162

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Nine Months Ended September 27, 2015
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	266,931		$	37,264		$	4,729		$	—		$	308,924
Entertainment and merchandise sales	357,509			11,799			8,050			—			377,358
Total company store sales	624,440			49,063			12,779			—			686,282
Franchise fees and royalties	1,794			11,437			10			—			13,241
International Association assessments and other fees	762			2,179			31,864			(34,805		)	—
Total revenues	626,996			62,679			44,653			(34,805		)	699,523
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	67,179			9,417			1,613			—			78,209
Cost of entertainment and merchandise	21,620			1,290			489			—			23,399
Total cost of food, beverage, entertainment and merchandise	88,799			10,707			2,102			—			101,608
Labor expenses	171,075			11,119			4,211			—			186,405
Depreciation and amortization	81,799			3,223			1,584			—			86,606
Rent expense	66,693			4,048			1,957			—			72,698
Other store operating expenses	99,032			6,147			3,223			(2,967		)	105,435
Total company store operating costs	507,398			35,244			13,077			(2,967		)	552,752
Advertising expense	33,506			3,121			31,550			(31,838		)	36,339
General and administrative expenses	14,631			33,589			400			—			48,620
Transaction, severance and related litigation costs	15			3,924			—			—			3,939
Asset impairment	766			20			89						875
Total operating costs and expenses	556,316			75,898			45,116			(34,805		)	642,525
Operating income (loss)	70,680			(13,219		)	(463		)	—			56,998
Equity in earnings (loss) in affiliates	(11,406		)	—			—			11,406			—
Interest expense	50,032			1,619			380			—			52,031
Income (loss) before income taxes	9,242			(14,838		)	(843		)	11,406			4,967
Income tax expense (benefit)	7,594			(4,517		)	242			—			3,319
Net income (loss)	$	1,648		$	(10,321	)	$	(1,085	)	$	11,406		$	1,648
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1,899		)	—			(1,899		)	1,899			(1,899		)
Comprehensive income (loss)	$	(251	)	$	(10,321	)	$	(2,984	)	$	13,305		$	(251	)

Condensed Consolidating Cash Flow Statement

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Nine Months Ended October 2, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows provided by (used in) operating activities:	$	93,340		$	17,674		$	240		$	—	$	111,254
Cash flows from investing activities:
Purchases of property and equipment	(50,823		)	(15,506		)	(206		)	—		(66,535		)
Development of internal use software	(6,004		)	(2,784		)	—			—		(8,788		)
Proceeds from sale of property and equipment	426			—			—			—		426
Cash flows provided by (used in) investing activities	(56,401		)	(18,290		)	(206		)	—		(74,897		)
Cash flows from financing activities:
Repayments on senior term loan	(5,700		)	—			—			—		(5,700		)
Repayments on note payable	—			(37		)	—			—		(37		)
Payments on capital lease obligations	(308		)	—			(3		)	—		(311		)
Payments on sale leaseback transactions	(1,466		)	—			—			—		(1,466		)
Excess tax benefit realized from stock-based compensation	4			—			—			—		4
Cash flows provided by (used in) financing activities	(7,470		)	(37		)	(3		)	—		(7,510		)
Effect of foreign exchange rate changes on cash	—			—			356			—		356
Change in cash and cash equivalents	29,469			(653		)	387			—		29,203
Cash and cash equivalents at beginning of period	42,235			1,797			6,622			—		50,654
Cash and cash equivalents at end of period	$	71,704		$	1,144		$	7,009		$	—	$	79,857

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Nine Months Ended September 27, 2015
(in thousands)
	Issuer				Guarantors				Non-Guarantors				Eliminations				Consolidated
Cash flows provided by (used in) operating activities:	$	85,511			$	(1,253	)		$	4,040			$	—			$	88,298
Cash flows from investing activities:
Acquisition of Peter Piper Pizza	(663		)		—				—				—				(663		)
Intercompany note	(2,513		)		6,483				—				(3,970		)		—
Purchases of property and equipment	(48,932		)		(6,464		)		(1,598		)		—				(56,994		)
Development of internal use software	—				(2,784		)		—				—				(2,784		)
Other investing activities	261				—				—				—				261
Cash flows provided by (used in) investing activities	(51,847		)	—	(2,765		)	—	(1,598		)	—	(3,970		)	—	(60,180		)
Cash flows from financing activities:
Repayments on senior term loan	(5,700		)		—				—				—				(5,700		)
Repayments on Note Payable	—				(34		)		—				—				(34		)
Intercompany note	—				(2,048		)		(1,922		)		3,970				—
Payments on capital lease obligations	(306		)		—				(2		)		—				(308		)
Payments on sale leaseback transactions	(1,196		)		—				—				—				(1,196		)
Dividends paid	(70,000		)		—				—				—				(70,000		)
Cash flows provided by (used in) financing activities	(77,202		)	—	(2,082		)	—	(1,924		)	—	3,970			—	(77,238		)
Effect of foreign exchange rate changes on cash	—				—				(977		)		—				(977		)
Change in cash and cash equivalents	(43,538		)	—	(6,100		)	—	(459		)	—	—			—	(50,097		)
Cash and cash equivalents at beginning of period	97,020				6,427				7,547				—				110,994
Cash and cash equivalents at end of period	$	53,482			$	327			$	7,088			$	—			$	60,897