Consolidating Guarantor Financial Information (Tables)

12 Months Ended

Jan. 01, 2017

Jan. 03, 2016

Condensed Balance Sheet Statements, Captions [Line Items]

Condensed Financial Statements [Text Block]

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.
Consolidating Statement of Cash Flows
Fiscal Year 2015
(in thousands)

	Successor
	Issuer				Guarantors				Non-Guarantors				Eliminations				Consolidated
Cash flows provided by (used in) operating activities:	$	95,659			$	(492	)		$	5,446			$	—			$	100,613

Cash flows from investing activities:
Acquisition of Peter Piper Pizza	(663		)		—				—				—				(663		)
Intercompany note	2,393				2,925				—				(5,318		)		—
Purchases of property and equipment	(65,070		)		(6,028		)		(1,936		)		—				(73,034		)
Development of internal use software	(2,018		)		(2,784		)		—				—				(4,802		)
Proceeds from sale of property and equipment	308				—				—				—				308
Cash flows provided by (used in) investing activities	(65,050		)	—	(5,887		)	—	(1,936		)	—	(5,318		)	—	(78,191		)

Cash flows from financing activities:
Repayments on senior term loan	(9,500		)		—				—				—				(9,500		)
Repayments on notes payable	—				(49		)		—				—				(49		)
Intercompany note	(3,847		)		1,798				(3,269		)		5,318				—
Payments on capital lease obligations	(402		)		—				(3		)		—				(405		)
Payments on sale leaseback transactions	(1,663		)		—				—				—				(1,663		)
Dividends paid	(70,000		)		—				—				—				(70,000		)
Excess tax benefit realized from stock-based compensation	18				—				—				—				18
Cash flows provided by (used in) financing activities	(85,394		)		1,749				(3,272		)		5,318				(81,599		)
Effect of foreign exchange rate changes on cash	—				—				(1,163		)		—				(1,163		)

Change in cash and cash equivalents	(54,785		)		(4,630		)		(925		)		—				(60,340		)
Cash and cash equivalents at beginning of period	97,020				6,427				7,547				—				110,994
Cash and cash equivalents at end of period	$	42,235			$	1,797			$	6,622			$	—			$	50,654



CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
Fiscal Year 2016
(in thousands)

	Successor
	Issuer				Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows provided by (used in) operating activities:	$	73,722			$	44,608		$	357		$	—	$	118,687

Cash flows from investing activities:
Purchases of property and equipment	(69,827		)		(18,439		)	(414		)	—		(88,680		)
Development of internal use software	(7,671		)		(2,784		)	—			—		(10,455		)
Proceeds from sale of property and equipment	696				—			—			—		696
Cash flows provided by (used in) investing activities	(76,802		)		(21,223		)	(414		)	—		(98,439		)

Cash flows from financing activities:
Repayments on senior term loan	(7,600		)		—			—			—		(7,600		)
Repayments on note payable	—				(50		)	—			—		(50		)
Intercompany note	23,974				(23,974		)	—			—		—
Payments on capital lease obligations	(417		)		—			(4		)	—		(421		)
Payments on sale leaseback transactions	(2,028		)	—	—			—			—		(2,028		)
Excess tax benefit realized from stock-based compensation	4				—			—			—		4
Cash flows provided by (used in) financing activities	13,933				(24,024		)	(4		)	—		(10,095		)
Effect of foreign exchange rate changes on cash	—				—			216			—		216

Change in cash and cash equivalents	10,853				(639		)	155			—		10,369
Cash and cash equivalents at beginning of period	42,235				1,797			6,622			—		50,654
Cash and cash equivalents at end of period	$	53,088			$	1,158		$	6,777		$	—	$	61,023



CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
Fiscal Year 2015
(in thousands)

	Successor
	Issuer				Guarantors				Non-Guarantors				Eliminations				Consolidated
Cash flows provided by (used in) operating activities:	$	95,659			$	(492	)		$	5,446			$	—			$	100,613

Cash flows from investing activities:
Acquisition of Peter Piper Pizza	(663		)		—				—				—				(663		)
Intercompany note	2,393				2,925				—				(5,318		)		—
Purchases of property and equipment	(65,070		)		(6,028		)		(1,936		)		—				(73,034		)
Development of internal use software	(2,018		)		(2,784		)		—				—				(4,802		)
Proceeds from sale of property and equipment	308				—				—				—				308
Cash flows provided by (used in) investing activities	(65,050		)	—	(5,887		)	—	(1,936		)	—	(5,318		)	—	(78,191		)

Cash flows from financing activities:
Repayments on senior term loan	(9,500		)		—				—				—				(9,500		)
Repayments on notes payable	—				(49		)		—				—				(49		)
Intercompany note	(3,847		)		1,798				(3,269		)		5,318				—
Payments on capital lease obligations	(402		)		—				(3		)		—				(405		)
Payments on sale leaseback transactions	(1,663		)		—				—				—				(1,663		)
Dividends paid	(70,000		)		—				—				—				(70,000		)
Excess tax benefit realized from stock-based compensation	18				—				—				—				18
Cash flows provided by (used in) financing activities	(85,394		)		1,749				(3,272		)		5,318				(81,599		)
Effect of foreign exchange rate changes on cash	—				—				(1,163		)		—				(1,163		)

Change in cash and cash equivalents	(54,785		)		(4,630		)		(925		)		—				(60,340		)
Cash and cash equivalents at beginning of period	97,020				6,427				7,547				—				110,994
Cash and cash equivalents at end of period	$	42,235			$	1,797			$	6,622			$	—			$	50,654



CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the 317 Day Period Ended December 28, 2014
(in thousands)

	Successor
	Issuer				Guarantors				Non-Guarantors				Eliminations				Consolidated
Cash flows provided by (used in) operating activities:	$	70,034			$	(24,166	)		$	2,223			$	—			$	48,091

Cash flows from investing activities:
Acquisition of Predecessor	(946,898		)		—				—				—				(946,898		)
Acquisition of franchise	—				(1,529		)		—				—				(1,529		)
Acquisition of Peter Piper Pizza	(118,409		)		5,267				—				—				(113,142		)
Intercompany note	—				375,539				—				(375,539		)		—
Purchases of property and equipment	(55,299		)		(4,136		)		(1,593		)		—				(61,028		)
Development of internal use software	—				(2,130		)		—				—				(2,130		)
Proceeds from sale of property and equipment	23				419				—				—				442
Cash flows provided by (used in) investing activities	(1,120,583		)	—	373,430			—	(1,593		)	—	(375,539		)	—	(1,124,285		)

Cash flows from financing activities:
Net proceeds from senior term loan, net of original issue discount	756,200				—				—				—				756,200
Net proceeds from senior notes	255,000				—				—				—				255,000
Repayment of Predecessor Facility	—				(348,000		)		—				—				(348,000		)
Repayments on senior term loan	(3,800		)		(7		)		—				—				(3,807		)
Intercompany note	(375,539		)		5,050				(5,050		)		375,539				—
Proceeds from financing sale-leaseback transaction	183,685				—				—				—				183,685
Payment of debt financing costs	(27,575		)		—				—				—				(27,575		)
Payments on capital lease obligations	(297		)		—				—				—				(297		)
Payments on sale leaseback transactions	(742		)		—				—				—				(742		)
Dividends paid	(890		)		—				—				—				(890		)
Excess tax benefit realized from stock-based compensation	4,874				—				—				—				4,874
Equity contribution	350,000				—				—				—				350,000
Cash flows provided by (used in) financing activities	1,140,916			—	(342,957		)	—	(5,050		)	—	375,539			—	1,168,448
Effect of foreign exchange rate changes on cash	—				—				(444		)		—				(444		)

Change in cash and cash equivalents	90,367			—	6,307			—	(4,864		)	—	—			—	91,810
Cash and cash equivalents at beginning of period	6,653				120				12,411				—				19,184
Cash and cash equivalents at end of period	$	97,020			$	6,427			$	7,547			$	—			$	110,994



CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the 47 Day Period Ended February 14, 2014
(in thousands)

	Predecessor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	(12,224	)	$	29,906		$	4,632		$	—		$	22,314

Cash flows from investing activities:
Intercompany note	—			(17,601		)	—			17,601			—
Purchases of property and equipment	(8,538		)	(1,082		)	(90		)	—			(9,710		)
Proceeds from sale of property and equipment	(2		)	53			—			—			51
Cash flows provided by (used in) investing activities	(8,540		)	(18,630		)	(90		)	17,601			(9,659		)

Cash flows from financing activities:
Net repayments on revolving credit facility	—			(13,500		)	—			—			(13,500		)
Intercompany note	17,571			430			(400		)	(17,601		)	—
Payments on capital lease obligations	(153		)	—			(11		)	—			(164		)
Dividends paid	(38		)	—			—			—			(38		)
Restricted stock returned for payment of taxes	(142		)	—			—			—			(142		)
Cash flows provided by (used in) financing activities	17,238			(13,070		)	(411		)	(17,601		)	(13,844		)
Effect of foreign exchange rate changes on cash	—			—			(313		)	—			(313		)

Change in cash and cash equivalents	(3,526		)	(1,794		)	3,818			—			(1,502		)
Cash and cash equivalents at beginning of period	10,177			1,914			8,595			—			20,686
Cash and cash equivalents at end of period	$	6,651		$	120		$	12,413		$	—		$	19,184



CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
Fiscal Year 2016
(in thousands)

	Successor
	Issuer				Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows provided by (used in) operating activities:	$	73,722			$	44,608		$	357		$	—	$	118,687

Cash flows from investing activities:
Purchases of property and equipment	(69,827		)		(18,439		)	(414		)	—		(88,680		)
Development of internal use software	(7,671		)		(2,784		)	—			—		(10,455		)
Proceeds from sale of property and equipment	696				—			—			—		696
Cash flows provided by (used in) investing activities	(76,802		)		(21,223		)	(414		)	—		(98,439		)

Cash flows from financing activities:
Repayments on senior term loan	(7,600		)		—			—			—		(7,600		)
Repayments on note payable	—				(50		)	—			—		(50		)
Intercompany note	23,974				(23,974		)	—			—		—
Payments on capital lease obligations	(417		)		—			(4		)	—		(421		)
Payments on sale leaseback transactions	(2,028		)	—	—			—			—		(2,028		)
Excess tax benefit realized from stock-based compensation	4				—			—			—		4
Cash flows provided by (used in) financing activities	13,933				(24,024		)	(4		)	—		(10,095		)
Effect of foreign exchange rate changes on cash	—				—			216			—		216

Change in cash and cash equivalents	10,853				(639		)	155			—		10,369
Cash and cash equivalents at beginning of period	42,235				1,797			6,622			—		50,654
Cash and cash equivalents at end of period	$	53,088			$	1,158		$	6,777		$	—	$	61,023



CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the 317 Day Period Ended December 28, 2014
(in thousands)

	Successor
	Issuer				Guarantors				Non-Guarantors				Eliminations				Consolidated
Cash flows provided by (used in) operating activities:	$	70,034			$	(24,166	)		$	2,223			$	—			$	48,091

Cash flows from investing activities:
Acquisition of Predecessor	(946,898		)		—				—				—				(946,898		)
Acquisition of franchise	—				(1,529		)		—				—				(1,529		)
Acquisition of Peter Piper Pizza	(118,409		)		5,267				—				—				(113,142		)
Intercompany note	—				375,539				—				(375,539		)		—
Purchases of property and equipment	(55,299		)		(4,136		)		(1,593		)		—				(61,028		)
Development of internal use software	—				(2,130		)		—				—				(2,130		)
Proceeds from sale of property and equipment	23				419				—				—				442
Cash flows provided by (used in) investing activities	(1,120,583		)	—	373,430			—	(1,593		)	—	(375,539		)	—	(1,124,285		)

Cash flows from financing activities:
Net proceeds from senior term loan, net of original issue discount	756,200				—				—				—				756,200
Net proceeds from senior notes	255,000				—				—				—				255,000
Repayment of Predecessor Facility	—				(348,000		)		—				—				(348,000		)
Repayments on senior term loan	(3,800		)		(7		)		—				—				(3,807		)
Intercompany note	(375,539		)		5,050				(5,050		)		375,539				—
Proceeds from financing sale-leaseback transaction	183,685				—				—				—				183,685
Payment of debt financing costs	(27,575		)		—				—				—				(27,575		)
Payments on capital lease obligations	(297		)		—				—				—				(297		)
Payments on sale leaseback transactions	(742		)		—				—				—				(742		)
Dividends paid	(890		)		—				—				—				(890		)
Excess tax benefit realized from stock-based compensation	4,874				—				—				—				4,874
Equity contribution	350,000				—				—				—				350,000
Cash flows provided by (used in) financing activities	1,140,916			—	(342,957		)	—	(5,050		)	—	375,539			—	1,168,448
Effect of foreign exchange rate changes on cash	—				—				(444		)		—				(444		)

Change in cash and cash equivalents	90,367			—	6,307			—	(4,864		)	—	—			—	91,810
Cash and cash equivalents at beginning of period	6,653				120				12,411				—				19,184
Cash and cash equivalents at end of period	$	97,020			$	6,427			$	7,547			$	—			$	110,994

Condensed Consolidating Balance Sheet



CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of January 1, 2017
(in thousands)

	Successor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	53,088		$	1,158		$	6,777		$	—		$	61,023
Restricted cash	—			—			268			—			268
Accounts receivable	16,922			3,220			2,455			(2,102		)	20,495
Inventories	18,255			3,151			271			—			21,677
Prepaid assets	14,294			6,077			1,127			—			21,498
Total current assets	102,559			13,606			10,898			(2,102		)	124,961
Property and equipment, net	538,195			47,906			6,785			—			592,886
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	19,157			464,926			—			—			484,083
Intercompany	127,107			317			—			(127,424		)	—
Investment in subsidiaries	436,483			—			—			(436,483		)	—
Other noncurrent assets	6,888			17,025			393			—			24,306
Total assets	$	1,662,851		$	595,194		$	18,076		$	(566,009	)	$	1,710,112
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	13		$	—		$	—		$	7,613
Capital lease obligations, current portion	460			—			7			—			467
Accounts payable and accrued expenses	84,207			11,445			2,184			—			97,836
Other current liabilities	3,764			511			—			—			4,275
Total current liabilities	96,031			11,969			2,191			—			110,191
Capital lease obligations, less current portion	13,542			—			60			—			13,602
Bank indebtedness and other long-term debt, less current portion	968,266			—			—			—			968,266
Deferred tax liability	166,064			21,234			(1,008		)	—			186,290
Intercompany	—			106,131			23,395			(129,526		)	—
Other noncurrent liabilities	212,943			12,484			331			—			225,758
Total liabilities	1,456,846			151,818			24,969			(129,526		)	1,504,107
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	357,166			466,114			3,241			(469,355		)	357,166
Retained earnings (deficit)	(148,265		)	(22,738		)	(7,238		)	29,976			(148,265		)
Accumulated other comprehensive income (loss)	(2,896		)	—			(2,896		)	2,896			(2,896		)
Total stockholder's equity	206,005			443,376			(6,893		)	(436,483		)	206,005
Total liabilities and stockholder's equity	$	1,662,851		$	595,194		$	18,076		$	(566,009	)	$	1,710,112



CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of January 1, 2017
(in thousands)

	Successor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	53,088		$	1,158		$	6,777		$	—		$	61,023
Restricted cash	—			—			268			—			268
Accounts receivable	16,922			3,220			2,455			(2,102		)	20,495
Inventories	18,255			3,151			271			—			21,677
Prepaid assets	14,294			6,077			1,127			—			21,498
Total current assets	102,559			13,606			10,898			(2,102		)	124,961
Property and equipment, net	538,195			47,906			6,785			—			592,886
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	19,157			464,926			—			—			484,083
Intercompany	127,107			317			—			(127,424		)	—
Investment in subsidiaries	436,483			—			—			(436,483		)	—
Other noncurrent assets	6,888			17,025			393			—			24,306
Total assets	$	1,662,851		$	595,194		$	18,076		$	(566,009	)	$	1,710,112
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	13		$	—		$	—		$	7,613
Capital lease obligations, current portion	460			—			7			—			467
Accounts payable and accrued expenses	84,207			11,445			2,184			—			97,836
Other current liabilities	3,764			511			—			—			4,275
Total current liabilities	96,031			11,969			2,191			—			110,191
Capital lease obligations, less current portion	13,542			—			60			—			13,602
Bank indebtedness and other long-term debt, less current portion	968,266			—			—			—			968,266
Deferred tax liability	166,064			21,234			(1,008		)	—			186,290
Intercompany	—			106,131			23,395			(129,526		)	—
Other noncurrent liabilities	212,943			12,484			331			—			225,758
Total liabilities	1,456,846			151,818			24,969			(129,526		)	1,504,107
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	357,166			466,114			3,241			(469,355		)	357,166
Retained earnings (deficit)	(148,265		)	(22,738		)	(7,238		)	29,976			(148,265		)
Accumulated other comprehensive income (loss)	(2,896		)	—			(2,896		)	2,896			(2,896		)
Total stockholder's equity	206,005			443,376			(6,893		)	(436,483		)	206,005
Total liabilities and stockholder's equity	$	1,662,851		$	595,194		$	18,076		$	(566,009	)	$	1,710,112



CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of January 3, 2016
(in thousands)

	Successor
	Issuer			Guarantor			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
Prepaid 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, 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
Stockholders' 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 317 Day Period Ended December 28, 2014
(in thousands)

	Predecessor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	293,407		$	8,259		$	6,030		$	—		$	307,696
Entertainment and merchandise sales	391,818			2,490			10,094			—			404,402
Total company venue sales	685,225			10,749			16,124			—			712,098
Franchise fees and royalties	1,813			4,670			—			—			6,483
International Association assessments and other fees	1,006			1,233			37,388			(39,627		)	—
Total revenues	688,044			16,652			53,512			(39,627		)	718,581
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage	75,772			2,324			1,900			—			79,996
Cost of entertainment and merchandise	23,832			244			660			(128		)	24,608
Total cost of food, beverage, entertainment and merchandise	99,604			2,568			2,560			(128		)	104,604
Labor expenses	192,651			2,922			5,282			—			200,855
Depreciation and amortization	111,816			1,197			2,938			—			115,951
Rent expense	73,337			938			2,423			—			76,698
Other venue operating expenses	112,669			2,445			3,410			1,372			119,896
Total company venue operating costs	590,077			10,070			16,613			1,244			618,004
Advertising expense	38,511			638			31,712			(37,159		)	33,702
General and administrative expenses	18,414			32,389			1,091			(3,712		)	48,182
Transaction, severance and related litigation costs	40,998			9,547			—			—			50,545
Asset Impairment	40			3			364			—			407
Total operating costs and expenses	688,040			52,647			49,780			(39,627		)	750,840
Operating income (loss)	4			(35,995		)	3,732			—			(32,259		)
Equity in earnings (loss) in affiliates	(36,988		)	—			—			36,988			—
Interest expense (income)	59,644			770			538			—			60,952
Income (loss) before income taxes	(96,628		)	(36,765		)	3,194			36,988			(93,211		)
Income tax expense (benefit)	(34,540		)	2,441			976			—			(31,123		)
Net income (loss)	$	(62,088	)	$	(39,206	)	$	2,218		$	36,988		$	(62,088	)

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(913		)	—			(913		)	913			(913		)
Comprehensive income (loss)	$	(63,001	)	$	(39,206	)	$	1,305		$	37,901		$	(63,001	)



CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
Fiscal Year 2015
(in thousands)

	Successor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	353,200		$	48,747		$	6,148		$	—		$	408,095
Entertainment and merchandise sales	469,741			16,864			10,410			—			497,015
Total Company venue sales	822,941			65,611			16,558			—			905,110
Franchise fees and royalties	2,280			15,199			—			—			17,479
International Association assessments and other fees	995			24,591			43,829			(69,415		)	—
Total revenues	826,216			105,401			60,387			(69,415		)	922,589
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage	89,772			12,527			2,135			—			104,434
Cost of entertainment and merchandise	29,147			1,729			643			—			31,519
Total cost of food, beverage, entertainment and merchandise	118,919			14,256			2,778			—			135,953
Labor expenses	230,113			14,968			5,503			—			250,584
Depreciation and amortization	109,307			3,856			2,073			—			115,236
Rent expense	88,773			5,363			2,533			—			96,669
Other venue operating expenses	155,366			9,017			4,308			(25,613		)	143,078
Total Company venue operating costs	702,478			47,460			17,195			(25,613		)	741,520
Advertising expense	46,136			4,014			40,798			(43,802		)	47,146
General and administrative expenses	20,939			44,446			618			—			66,003
Transaction, severance and related litigation costs	6			11,908			—			—			11,914
Asset Impairment	766			20			89			—			875
Total operating costs and expenses	770,325			107,848			58,700			(69,415		)	867,458
Operating income (loss)	55,891			(2,447		)	1,687			—			55,131
Equity in earnings (loss) in affiliates	(4,654		)	—			—			4,654			—
Interest expense	65,775			4,288			519			—			70,582
Income (loss) before income taxes	(14,538		)	(6,735		)	1,168			4,654			(15,451		)
Income tax expense (benefit)	(2,028		)	(1,575		)	662			—			(2,941		)
Net income (loss)	$	(12,510	)	$	(5,160	)	$	506		$	4,654		$	(12,510	)

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(2,403		)	—			(2,403		)	2,403			(2,403		)
Comprehensive income (loss)	$	(14,913	)	$	(5,160	)	$	(1,897	)	$	7,057		$	(14,913	)



CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
Fiscal Year 2016
(in thousands)

	Successor
	Issuer			Guarantor		Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	361,111		$	48,178	$	5,770		$	—		$	415,059
Entertainment and merchandise sales	453,362			27,059		9,834			—			490,255
Total company venue sales	814,473			75,237		15,604			—			905,314
Franchise fees and royalties	2,011			16,328		—			—			18,339
International Association assessments and other fees	1,308			36,861		36,250			(74,419		)	—
Total revenues	817,792			128,426		51,854			(74,419		)	923,653
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage	89,373			12,835		2,107			—			104,315
Cost of entertainment and merchandise	29,668			1,690		656			—			32,014
Total cost of food, beverage, entertainment and merchandise	119,041			14,525		2,763			—			136,329
Labor expenses	230,526			15,865		5,035			—			251,426
Depreciation and amortization	108,686			2,643		1,987			—			113,316
Rent expense	88,557			5,234		2,215			—			96,006
Other venue operating expenses	170,385			12,134		4,545			(38,195		)	148,869
Total company venue operating costs	717,195			50,401		16,545			(38,195		)	745,946
Advertising expense	37,891			4,358		40,117			(36,224		)	46,142
General and administrative expenses	26,003			40,567		694			—			67,264
Transaction, severance and related litigation costs	1,244			55		—			—			1,299
Asset Impairment	1,487			—		63			—			1,550
Total operating costs and expenses	783,820			95,381		57,419			(74,419		)	862,201
Operating income (loss)	33,972			33,045		(5,565		)	—			61,452
Equity in earnings (loss) in affiliates	13,654			—		—			(13,654		)	—
Interest expense	62,630			4,664		451			—			67,745
Income (loss) before income taxes	(15,004		)	28,381		(6,016		)	(13,654		)	(6,293		)
Income tax expense (benefit)	(11,337		)	10,520		(1,809		)	—			(2,626		)
Net income (loss)	$	(3,667	)	$	17,861	$	(4,207	)	$	(13,654	)	$	(3,667	)

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	420			—		420			(420		)	420
Comprehensive income (loss)	$	(3,247	)	$	17,861	$	(3,787	)	$	(14,074	)	$	(3,247	)



CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
Fiscal Year 2016
(in thousands)

	Successor
	Issuer			Guarantor		Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	361,111		$	48,178	$	5,770		$	—		$	415,059
Entertainment and merchandise sales	453,362			27,059		9,834			—			490,255
Total company venue sales	814,473			75,237		15,604			—			905,314
Franchise fees and royalties	2,011			16,328		—			—			18,339
International Association assessments and other fees	1,308			36,861		36,250			(74,419		)	—
Total revenues	817,792			128,426		51,854			(74,419		)	923,653
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage	89,373			12,835		2,107			—			104,315
Cost of entertainment and merchandise	29,668			1,690		656			—			32,014
Total cost of food, beverage, entertainment and merchandise	119,041			14,525		2,763			—			136,329
Labor expenses	230,526			15,865		5,035			—			251,426
Depreciation and amortization	108,686			2,643		1,987			—			113,316
Rent expense	88,557			5,234		2,215			—			96,006
Other venue operating expenses	170,385			12,134		4,545			(38,195		)	148,869
Total company venue operating costs	717,195			50,401		16,545			(38,195		)	745,946
Advertising expense	37,891			4,358		40,117			(36,224		)	46,142
General and administrative expenses	26,003			40,567		694			—			67,264
Transaction, severance and related litigation costs	1,244			55		—			—			1,299
Asset Impairment	1,487			—		63			—			1,550
Total operating costs and expenses	783,820			95,381		57,419			(74,419		)	862,201
Operating income (loss)	33,972			33,045		(5,565		)	—			61,452
Equity in earnings (loss) in affiliates	13,654			—		—			(13,654		)	—
Interest expense	62,630			4,664		451			—			67,745
Income (loss) before income taxes	(15,004		)	28,381		(6,016		)	(13,654		)	(6,293		)
Income tax expense (benefit)	(11,337		)	10,520		(1,809		)	—			(2,626		)
Net income (loss)	$	(3,667	)	$	17,861	$	(4,207	)	$	(13,654	)	$	(3,667	)

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	420			—		420			(420		)	420
Comprehensive income (loss)	$	(3,247	)	$	17,861	$	(3,787	)	$	(14,074	)	$	(3,247	)



CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
Fiscal Year 2015
(in thousands)

	Successor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	353,200		$	48,747		$	6,148		$	—		$	408,095
Entertainment and merchandise sales	469,741			16,864			10,410			—			497,015
Total Company venue sales	822,941			65,611			16,558			—			905,110
Franchise fees and royalties	2,280			15,199			—			—			17,479
International Association assessments and other fees	995			24,591			43,829			(69,415		)	—
Total revenues	826,216			105,401			60,387			(69,415		)	922,589
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage	89,772			12,527			2,135			—			104,434
Cost of entertainment and merchandise	29,147			1,729			643			—			31,519
Total cost of food, beverage, entertainment and merchandise	118,919			14,256			2,778			—			135,953
Labor expenses	230,113			14,968			5,503			—			250,584
Depreciation and amortization	109,307			3,856			2,073			—			115,236
Rent expense	88,773			5,363			2,533			—			96,669
Other venue operating expenses	155,366			9,017			4,308			(25,613		)	143,078
Total Company venue operating costs	702,478			47,460			17,195			(25,613		)	741,520
Advertising expense	46,136			4,014			40,798			(43,802		)	47,146
General and administrative expenses	20,939			44,446			618			—			66,003
Transaction, severance and related litigation costs	6			11,908			—			—			11,914
Asset Impairment	766			20			89			—			875
Total operating costs and expenses	770,325			107,848			58,700			(69,415		)	867,458
Operating income (loss)	55,891			(2,447		)	1,687			—			55,131
Equity in earnings (loss) in affiliates	(4,654		)	—			—			4,654			—
Interest expense	65,775			4,288			519			—			70,582
Income (loss) before income taxes	(14,538		)	(6,735		)	1,168			4,654			(15,451		)
Income tax expense (benefit)	(2,028		)	(1,575		)	662			—			(2,941		)
Net income (loss)	$	(12,510	)	$	(5,160	)	$	506		$	4,654		$	(12,510	)

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(2,403		)	—			(2,403		)	2,403			(2,403		)
Comprehensive income (loss)	$	(14,913	)	$	(5,160	)	$	(1,897	)	$	7,057		$	(14,913	)



CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the 317 Day Period Ended December 28, 2014
(in thousands)

	Predecessor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	293,407		$	8,259		$	6,030		$	—		$	307,696
Entertainment and merchandise sales	391,818			2,490			10,094			—			404,402
Total company venue sales	685,225			10,749			16,124			—			712,098
Franchise fees and royalties	1,813			4,670			—			—			6,483
International Association assessments and other fees	1,006			1,233			37,388			(39,627		)	—
Total revenues	688,044			16,652			53,512			(39,627		)	718,581
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage	75,772			2,324			1,900			—			79,996
Cost of entertainment and merchandise	23,832			244			660			(128		)	24,608
Total cost of food, beverage, entertainment and merchandise	99,604			2,568			2,560			(128		)	104,604
Labor expenses	192,651			2,922			5,282			—			200,855
Depreciation and amortization	111,816			1,197			2,938			—			115,951
Rent expense	73,337			938			2,423			—			76,698
Other venue operating expenses	112,669			2,445			3,410			1,372			119,896
Total company venue operating costs	590,077			10,070			16,613			1,244			618,004
Advertising expense	38,511			638			31,712			(37,159		)	33,702
General and administrative expenses	18,414			32,389			1,091			(3,712		)	48,182
Transaction, severance and related litigation costs	40,998			9,547			—			—			50,545
Asset Impairment	40			3			364			—			407
Total operating costs and expenses	688,040			52,647			49,780			(39,627		)	750,840
Operating income (loss)	4			(35,995		)	3,732			—			(32,259		)
Equity in earnings (loss) in affiliates	(36,988		)	—			—			36,988			—
Interest expense (income)	59,644			770			538			—			60,952
Income (loss) before income taxes	(96,628		)	(36,765		)	3,194			36,988			(93,211		)
Income tax expense (benefit)	(34,540		)	2,441			976			—			(31,123		)
Net income (loss)	$	(62,088	)	$	(39,206	)	$	2,218		$	36,988		$	(62,088	)

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(913		)	—			(913		)	913			(913		)
Comprehensive income (loss)	$	(63,001	)	$	(39,206	)	$	1,305		$	37,901		$	(63,001	)



CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the 47 Day Period Ended February 14, 2014
(in thousands)

	Predecessor
	Issuer			Guarantor			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	49,803		$	32		$	1,062		$	—		$	50,897
Entertainment and merchandise sales	61,082			—			1,577			—			62,659
Total company venue sales	110,885			32			2,639			—			113,556
Franchise fees and royalties	353			334			—			—			687
International Association assessments and other fees	—			4,558			6,095			(10,653		)	—
Total revenues	111,238			4,924			8,734			(10,653		)	114,243
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage	11,924			25			336			—			12,285
Cost of entertainment and merchandise	3,618			—			131			(20		)	3,729
Total cost of food, beverage, entertainment and merchandise	15,542			25			467			(20		)	16,014
Labor expenses	31,107			—			891			—			31,998
Depreciation and amortization	9,430			—			303			—			9,733
Rent expense	11,962			—			403			—			12,365
Other venue operating expenses	20,193			(44		)	(82		)	(4,307		)	15,760
Total company venue operating costs	88,234			(19		)	1,982			(4,327		)	85,870
Advertising expense	6,144			17			5,853			(6,111		)	5,903
General and administrative expenses	4,124			3,863			191			(215		)	7,963
Transaction, severance and related litigation costs	1,800			9,834			—			—			11,634
Asset impairment	—			—			—			—			—
Total operating costs and expenses	100,302			13,695			8,026			(10,653		)	111,370
Operating income (loss)	10,936			(8,771		)	708			—			2,873
Equity in earnings (loss) in affiliates	(4,523		)	—			—			4,523			—
Interest expense (income)	1,822			(771		)	100			—			1,151
Income (loss) before income taxes	4,591			(8,000		)	608			4,523			1,722
Income tax expense (benefit)	3,887			(3,040		)	171			—			1,018
Net income (loss)	$	704		$	(4,960	)	$	437		$	4,523		$	704

Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	(541	)	$	—		$	(541	)	$	541		$	(541	)
Comprehensive income (loss)	$	163		$	(4,960	)	$	(104	)	$	5,064		$	163