Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Jan. 01, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill Activity

The following table presents changes in the carrying value of goodwill for the periods ended January 1, 2017 and January 3, 2016:

	Successor
	January 1, 2017		January 3, 2016
	(in thousands)
Balance at beginning of period	$	483,876	$	483,444
Goodwill assigned in acquisition of Peter Piper Pizza (1)	—		432
Balance at end of period	$	483,876	$	483,876

__________________

(1) During Fiscal 2015, we recorded certain adjustments to the initial PPP purchase price allocation related to the final settlement of net working capital, the valuation of favorable and unfavorable lease interests, the valuation of PPP’s tradename and the valuation of net operating losses acquired and other tax positions that resulted in a net increase to goodwill of $0.4 million. See Note 3 “Acquisition of Peter Piper Pizza” for a discussion of the measurement period adjustments.

Schedule of Indefinite-Lived Intangible Assets

The following table presents our indefinite and definite-lived intangible assets at January 1, 2017 and January 3, 2016:

		Successor
		January 1, 2017							January 3, 2016
	Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Chuck E. Cheese's tradename	Indefinite	$	400,000	$	—		$	400,000	$	400,000	$	—		$	400,000
Peter Piper Pizza tradename	Indefinite	26,700		—			26,700		26,700		—			26,700
Favorable lease agreements (1)	10	14,880		(5,649		)	9,231		14,880		(3,686		)	11,194
Franchise agreements	25	53,300		(5,148		)	48,152		53,300		(3,099		)	50,201
		$	494,880	$	(10,797	)	$	484,083	$	494,880	$	(6,785	)	$	488,095

__________________

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

Schedule of Finite-Lived Intangible Assets

The following table presents our indefinite and definite-lived intangible assets at January 1, 2017 and January 3, 2016:

		Successor
		January 1, 2017							January 3, 2016
	Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Chuck E. Cheese's tradename	Indefinite	$	400,000	$	—		$	400,000	$	400,000	$	—		$	400,000
Peter Piper Pizza tradename	Indefinite	26,700		—			26,700		26,700		—			26,700
Favorable lease agreements (1)	10	14,880		(5,649		)	9,231		14,880		(3,686		)	11,194
Franchise agreements	25	53,300		(5,148		)	48,152		53,300		(3,099		)	50,201
		$	494,880	$	(10,797	)	$	484,083	$	494,880	$	(6,785	)	$	488,095

__________________

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

Schedule of Estimated Future Amortization Expense

Our estimated future amortization expense related to the favorable lease agreements and franchise agreements is set forth as follows (in thousands):

	Favorable Lease Agreements		Franchise Agreements
Fiscal 2017	$	1,659	$	2,049
Fiscal 2018	1,246		2,049
Fiscal 2019	1,102		2,049
Fiscal 2020	1,050		2,088
Fiscal 2021	847		2,049
Thereafter	3,327		37,868
	$9,231		$48,152