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Supplementary Consolidating Financial Information of Subsidiary Guarantors
9 Months Ended
Oct. 02, 2011
Supplementary Consolidating Financial Information of Subsidiary Guarantors [abstract] 
Supplementary Consolidating Financial Information of Subsidiary Guarantors
 
M.    SUPPLEMENTARY CONSOLIDATING FINANCIAL INFORMATION OF SUBSIDIARY GUARANTORS

Presented below is supplementary consolidating financial information for the Company and the subsidiary guarantors as of October 2, 2011 and December 26, 2010 and for the 12 and 40 week periods ended October 2, 2011 and October 3, 2010.

Consolidating Balance Sheet
As of October 2, 2011
(Unaudited)

               
Minor
       
               
Subsidiaries and
       
   
Parent
   
Subsidiary
   
Consolidating
       
   
Company
   
Guarantor
   
Adjustments
   
Consolidated
 
 
(in thousands)
ASSETS
                       
Current Assets:
                       
     Cash and cash equivalents
$
1,464
 
$
29,309
 
$
—
 
$
30,773
 
     Trade accounts receivable, net
 
5,401
   
6,725
   
(950
)
 
11,176
 
     Income taxes receivable
 
—
   
3,183
   
—
   
3,183
 
     Intercompany (payable) receivable
 
(282,269
)
 
251,783
   
30,486
   
—
 
     Inventories
 
3,734
   
4,494
   
—
   
8,228
 
     Assets held for sale
 
3,334
   
645
   
—
   
3,979
 
     Other current assets
 
2,693
   
2,708
   
1,446
   
6,847
 
          Total current (liabilities) assets
 
(265,643
)
 
298,847
   
30,982
   
64,186
 
                         
Property and equipment, net
 
217,032
   
84,455
   
—
   
301,487
 
Trade names and other intangible assets
 
25
   
25,921
   
—
   
25,946
 
Other assets
 
208,719
   
28,811
   
(226,233
)
 
11,297
 
Total Assets (Liabilities)
$
160,133
 
$
438,034
 
$
(195,251
)
$
402,916
 
                         
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
                       
Current Liabilities:
                       
     Trade accounts payable
$
7,523
 
$
(1,624
)
$
2,075
 
$
7,974
 
     Accrued payroll and related expenses
 
10,548
   
4,146
   
—
   
14,694
 
     Accrued expenses
 
20,286
   
6,569
   
(950
)
 
25,905
 
     Deferred revenue
 
—
   
5,991
   
(629
)
 
5,362
 
     Federal, state and local taxes
 
(14,163
)
 
24,817
   
—
   
10,654
 
     Current portion of long-term debt and capitalized
                       
          lease obligations
 
154
   
65
   
—
   
219
 
          Total current liabilities
 
24,348
   
39,964
   
496
   
64,808
 
                         
Deferred income taxes
 
3,916
   
—
   
—
   
3,916
 
Other liabilities
 
22,335
   
19,091
   
99
   
41,525
 
Long-term debt and capitalized lease obligations,
                       
          less current portion
 
141,246
   
80
   
(24,656
)
 
116,670
 
                         
Shareholders' Equity (Deficit):
                       
     Common stock
 
125,008
   
343,431
   
(301,055
)
 
167,384
 
     Retained (deficit) earnings
 
(156,720
)
 
35,468
   
129,865
   
8,613
 
         Total shareholders' (deficit) equity
 
(31,712
)
 
378,899
   
(171,190
)
 
175,997
 
Total Liabilities and Shareholders' Equity (Deficit)
$
160,133
 
$
438,034
 
$
(195,251
)
$
402,916
 

 
 

 
Consolidating Balance Sheet
As of December 26, 2010
(Unaudited)

                   
Minor
         
                   
Subsidiaries and
         
   
Parent
     
Subsidiary
     
Consolidating
         
   
Company
     
Guarantors
     
Adjustments
     
Consolidated
 
 
(in thousands)
                               
ASSETS
                             
Current Assets:
                             
     Cash and cash equivalents
$
1,744
   
$
27,949
   
$
—
   
$
29,693
 
     Trade accounts receivable, net
 
6,659
     
5,639
     
(218
)
   
12,080
 
     Income taxes receivable
 
—
     
2,851
     
—
     
2,851
 
     Intercompany (payable) receivable
 
(277,713
)
   
247,227
     
30,486
     
—
 
     Inventories
 
4,045
     
5,026
     
—
     
9,071
 
     Assets held for sale
 
3,828
     
1,019
     
—
     
4,847
 
     Other current assets
 
1,733
     
2,468
     
—
     
4,201
 
          Total current (liabilities) assets
 
(259,704
)
   
292,179
     
30,268
     
62,743
 
                               
Property and equipment, net
 
226,929
     
93,082
     
—
     
320,011
 
Trade names and other intangible assets
 
25
     
25,921
     
—
     
25,946
 
Other assets
 
210,649
     
29,624
     
(226,232
)
   
14,041
 
Total Assets (Liabilities)
$
177,899
   
$
440,806
   
$
(195,964
)
 
$
422,741
 
                               
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
                             
Current Liabilities:
                             
     Trade accounts payable
$
7,502
   
$
80
   
$
629
   
$
8,211
 
     Accrued payroll and related expenses
 
10,630
     
4,009
     
—
     
14,639
 
     Accrued expenses
 
17,708
     
6,824
     
(218
)
   
24,314
 
     Deferred revenue
 
—
     
18,213
     
(629
)
   
17,584
 
     Federal, state and local taxes
 
(14,382
)
   
24,380
     
—
     
9,998
 
     Current portion of long-term debt and capitalized
                             
          lease obligations
 
1,567
     
143
     
—
     
1,710
 
          Total current liabilities (assets)
 
23,025
     
53,649
     
(218
)
   
76,456
 
                               
Deferred income taxes
 
4,034
     
—
     
—
     
4,034
 
Other liabilities
 
25,901
     
20,852
     
100
     
46,853
 
Long-term debt, less current portion
 
141,613
     
207
     
(24,656
)
   
117,164
 
                               
Shareholders' Equity (Deficit):
                             
     Common stock
 
123,171
     
343,431
     
(301,055
)
   
165,547
 
     Retained (deficit) earnings
 
(139,845
)
   
22,667
     
129,865
     
12,687
 
          Total shareholders' (deficit) equity
 
(16,674
)
   
366,098
     
(171,190
)
   
178,234
 
Total Liabilities and Shareholders' Equity (Deficit)
$
177,899
   
$
440,806
   
$
(195,964
)
 
$
422,741
 

 
 

 

Consolidating Statement of Operations
12 Weeks Ended October 2, 2011
(Unaudited)

                 
Minor
       
                 
Subsidiaries and
       
     
Parent
   
Subsidiary
   
Consolidating
       
     
Company
   
Guarantors
   
Adjustments
   
Consolidated
 
                           
   
(in thousands)
 
                           
Revenues:
                         
     Restaurant sales
 
$
102,795
 
$
80,453
 
$
3,144
 
$
186,392
 
     Franchise and other revenue
   
153
   
43
   
—
   
196
 
     
102,948
   
80,496
   
3,144
   
186,588
 
                           
Costs and Expenses:
                         
     Cost of restaurant sales:
                         
          Cost of food and beverage
   
33,437
   
25,238
   
1,187
   
59,862
 
          Payroll and benefits
   
37,982
   
28,811
   
(1,945
)
 
64,848
 
          Restaurant operating costs
   
21,245
   
15,520
   
3,395
   
40,160
 
                Cost of restaurant sales, exclusive of depreciation and
                         
                         amortization shown separately below
   
92,664
   
69,569
   
2,637
   
164,870
 
                           
     Advertising and marketing
   
—
   
8,165
   
32
   
8,197
 
     General and administrative
   
902
   
4,766
   
(114
)
 
5,554
 
     Depreciation and amortization of property and equipment
   
4,794
   
3,536
   
95
   
8,425
 
     Impairment and disposal charges, net
   
127
   
50
   
—
   
177
 
     
98,487
   
86,086
   
2,650
   
187,223
 
Income (Loss) from Operations
   
4,461
   
(5,590
)
 
494
   
(635
)
Other Expense (Income):
                         
     Interest expense, net
   
3,035
   
126
   
—
   
3,161
 
     Other, net
   
10,069
   
(10,069
)
 
—
   
—
 
     
13,104
   
(9,943
)
 
—
   
3,161
 
(Loss) Income from Continuing Operations Before Income Taxes
   
(8,643
)
 
4,353
   
494
   
(3,796
)
Income Tax Expense (Benefit)
   
167
   
(10
)
 
—
   
157
 
(Loss) Income from Continuing Operations
   
(8,810
)
 
4,363
   
494
   
(3,953
)
Loss from Discontinued Operations, net
   
(33
)
 
(26
)
 
—
   
(59
)
Net (Loss) Income
 
$
(8,843
)
$
4,337
 
$
494
 
$
(4,012
)

 
 

 
Consolidating Statement of Operations
12 Weeks Ended October 3, 2010
(Unaudited)

               
Minor
       
               
Subsidiaries and
       
   
Parent
   
Subsidiary
   
Consolidating
       
   
Company
   
Guarantors
   
Adjustments
   
Consolidated
 
                         
   
(in thousands)
 
Revenues:
                       
     Restaurant sales
$
106,370
 
$
78,944
 
$
2,977
 
$
188,291
 
     Franchise and other revenue
 
273
   
78
   
—
   
351
 
   
106,643
   
79,022
   
2,977
   
188,642
 
                         
Costs and Expenses:
                       
     Cost of restaurant sales:
                       
          Cost of food and beverage
 
32,204
   
23,626
   
1,103
   
56,933
 
          Payroll and benefits
 
40,373
   
28,514
   
(1,872
)
 
67,015
 
          Restaurant operating costs
 
22,366
   
15,816
   
3,320
   
41,502
 
                Cost of restaurant sales, exclusive of depreciation
                       
                         and amortization shown separately below
 
94,943
   
67,956
   
2,551
   
165,450
 
                         
     Advertising and marketing
 
—
   
7,912
   
35
   
7,947
 
     General and administrative
 
1,420
   
7,036
   
(174
)
 
8,282
 
     Depreciation and amortization of property and equipment
 
5,328
   
4,188
   
113
   
9,629
 
     Impairment and disposal charges, net
 
2,494
   
3
   
—
   
2,497
 
   
104,185
   
87,095
   
2,525
   
193,805
 
Income (Loss) from Operations
 
2,458
   
(8,073
)
 
452
   
(5,163
)
Other Expense (Income):
                       
     Interest expense, net
 
2,354
   
134
   
—
   
2,488
 
     Other, net
 
43,733
   
(43,739
)
 
—
   
(6
)
   
46,087
   
(43,605
)
 
—
   
2,482
 
(Loss) Income from Continuing Operations Before Income Taxes
 
(43,629
)
 
35,532
   
452
   
(7,645
)
Income Tax (Benefit) Expense
 
(699
)
 
84
   
—
   
(615
)
(Loss) Income from Continuing Operations
 
(42,930
)
 
35,448
   
452
   
(7,030
)
Loss from Discontinued Operations, Net
 
(186
)
 
(222
)
 
—
   
(408
)
Net (Loss) Income
$
(43,116
)
$
35,226
 
$
452
 
$
(7,438
)

 
 

 
Consolidating Statement of Operations
40 Weeks Ended October 2, 2011
(Unaudited)

               
Minor
       
               
Subsidiaries and
       
   
Parent
   
Subsidiary
   
Consolidating
       
   
Company
   
Guarantors
   
Adjustments
   
Consolidated
 
                         
 
(in thousands)
 
                         
Revenues:
                       
     Restaurant sales
$
363,137
 
$
270,319
 
$
10,730
 
$
644,186
 
     Franchise and other revenue
 
526
   
215
   
—
   
741
 
   
363,663
   
270,534
   
10,730
   
644,927
 
                         
Costs and Expenses:
                       
     Cost of restaurant sales:
                       
          Cost of food and beverage
 
116,421
   
83,389
   
4,004
   
203,814
 
          Payroll and benefits
 
132,106
   
96,914
   
(5,831
)
 
223,189
 
          Restaurant operating costs
 
70,129
   
51,728
   
10,719
   
132,576
 
                Cost of restaurant sales, exclusive of depreciation and
                       
                         amortization shown separately below
 
318,656
   
232,031
   
8,892
   
559,579
 
                         
     Advertising and marketing
 
—
   
27,323
   
98
   
27,421
 
     General and administrative
 
3,805
   
20,818
   
(431
)
 
24,192
 
     Depreciation and amortization of property and equipment
 
16,294
   
11,977
   
316
   
28,587
 
     Impairment and disposal charges, net
 
158
   
(342
)
 
—
   
(184
)
   
338,913
   
291,807
   
8,875
   
639,595
 
Income (Loss) from Operations
 
24,750
   
(21,273
)
 
1,855
   
5,332
 
Other Expense (Income):
                       
     Interest expense, net
 
8,655
   
420
   
—
   
9,075
 
     Other, net
 
33,141
   
(33,138
)
 
—
   
3
 
   
41,796
   
(32,718
)
 
—
   
9,078
 
(Loss) Income from Continuing Operations Before Income Taxes
 
(17,046
)
 
11,445
   
1,855
   
(3,746
)
Income Tax Expense
 
20
   
—
   
—
   
20
 
(Loss) Income from Continuing Operations
 
(17,066
)
 
11,445
   
1,855
   
(3,766
)
Income (Loss) from Discontinued Operations, Net
 
181
   
(489
)
 
—
   
(308
)
Net (Loss) Income
$
(16,885
)
$
10,956
 
$
1,855
 
$
(4,074
)

 
 

 
Consolidating Statement of Operations
40 Weeks Ended October 3, 2010
(Unaudited)

                 
Minor
         
                 
Subsidiaries and
         
   
Parent
   
Subsidiary
     
Consolidating
         
   
Company
   
Guarantors
     
Adjustments
     
Consolidated
 
 
(in thousands)
                             
Revenues:
                           
     Restaurant sales
$
369,438
 
$
266,054
   
$
10,245
   
$
645,737
 
     Franchise and other revenue
 
641
   
281
     
—
     
922
 
   
370,079
   
266,335
     
10,245
     
646,659
 
                             
Costs and Expenses:
                           
     Cost of restaurant sales:
                           
          Cost of food and beverage
 
109,398
   
78,510
     
3,734
     
191,642
 
          Payroll and benefits
 
136,854
   
96,085
     
(5,985
)
   
226,954
 
          Restaurant operating costs
 
71,554
   
52,176
     
10,902
     
134,632
 
                Cost of restaurant sales, exclusive of depreciation
                           
                       and amortization shown separately below
 
317,806
   
226,771
     
8,651
     
553,228
 
                             
     Advertising and marketing
 
—
   
27,371
     
118
     
27,489
 
     General and administrative
 
4,495
   
25,532
     
(607
)
   
29,420
 
     Depreciation and amortization of property and equipment
 
18,405
   
14,136
     
391
     
32,932
 
     Impairment and disposal charges, net
 
5,211
   
541
     
—
     
5,752
 
     Pre-opening
 
—
   
7
     
—
     
7
 
   
345,917
   
294,358
     
8,553
     
648,828
 
Income (Loss) from Operations
 
24,162
   
(28,023
)
   
1,692
     
(2,169
)
Other Expense:
                           
     Interest expense, net
 
8,956
   
449
     
—
     
9,405
 
     Other, net
 
43,734
   
(43,739
)
   
—
     
(5
)
   
52,690
   
(43,290
)
   
—
     
9,400
 
(Loss) Income from Continuing Operations Before Income Taxes
 
(28,528
)
 
15,267
     
1,692
     
(11,569
)
Income Tax Benefit
 
(680
)
 
(14
)
   
—
     
(694
)
(Loss) Income from Continuing Operations
 
(27,848
)
 
15,281
     
1,692
     
(10,875
)
Loss from Discontinued Operations, Net
 
(2,886
)
 
(544
)
   
—
     
(3,430
)
Net (Loss) Income
 $
(30,734
)
$
14,737
   
$
1,692
   
$
(14,305
)

 
 

 
Consolidating Statement of Cash Flows
40 weeks Ended October 2, 2011
(Unaudited)

               
Minor
       
               
Subsidiaries and
       
   
Parent
   
Subsidiary
   
Consolidating
       
   
Company
   
Guarantors
   
Adjustments
   
Consolidated
 
   
(in thousands)
 
                         
Cash Flows from Operating Activities:
                       
Net (loss) income 
$
(16,886
)
$
10,957
 
$
1,855
 
$
(4,074
)
Adjustments to reconcile net (loss) income to net cash provided by
                       
operating activities:
                       
    Depreciation and amortization of property and equipment
 
16,294
   
11,977
   
316
   
28,587
 
    Amortization of debt issuance costs and swap termination payment
 
297
   
—
   
—
   
297
 
    Share–based compensation
 
1,374
   
—
   
—
   
1,374
 
    Amortization of deferred gain on sale-leasebacks
 
(813
)
 
—
   
—
   
(813
)
    Deferred income taxes and other income tax related items
 
526
   
—
   
—
   
526
 
    Loss on the sale of assets
 
80
   
28
   
5
   
113
 
    Impairment and disposal charges, net
 
(246
)
 
(346
)
 
—
   
(592
)
    Changes in assets and liabilities:
                       
       Trade accounts and other receivables
 
1,259
   
(1,087
)
 
732
   
904
 
       Income taxes receivable
 
—
   
(332
)
 
—
   
(332
)
       Inventories
 
311
   
532
   
—
   
843
 
       Other current assets
 
(961
)
 
(239
)
 
(1,446
)
 
(2,646
)
       Trade accounts payable
 
22
   
(1,705
)
 
1,446
   
(237
)
       Deferred revenue
 
—
   
(12,222
)
 
—
   
(12,222
)
       Accrued payroll, accrued expenses, and federal, state
                       
             and local taxes
 
1,702
   
320
   
(732
)
 
1,290
 
       Other long-term assets and liabilities
 
(921
)
 
(1,005
)
 
—
   
(1,926
)
Net cash provided by operating activities
 
2,038
   
6,878
   
2,176
   
11,092
 
                         
Cash Flows from Investing Activities:
                       
    Additions to property and equipment
 
(7,604
)
 
(3,357
)
 
(111
)
 
(11,072
)
    Proceeds from the sale of assets
 
36
   
2,150
   
—
   
2,186
 
    Other, net
 
6,461
   
(4,310
)
 
(2,065
)
 
86
 
Net cash used in investing activities
 
(1,107
)
 
(5, 517
)
 
(2,176
)
 
(8,800
)
                         
Cash Flows from Financing Activities:
                       
    Payments on long-term debt and capitalized lease obligations
 
(1,550
)
 
—
   
—
   
(1,550
)
    Debt issuance costs
 
(125
)
 
—
   
—
   
(125
)
    Proceeds from the exercise of stock options and issuances
                       
        under CHUX ownership plan
 
615
   
—
   
—
   
615
 
    Shares tendered and retired for minimum tax withholding
 
(169
)
 
—
   
—
   
(169
)
    Excess tax benefit from share-based payments
 
17
   
—
   
—
   
17
 
Net cash used in financing activities
 
(1,212
)
 
—
   
—
   
(1,212
)
                         
(Decrease) Increase in cash and cash equivalents
 
(281
)
 
1,361
   
—
   
1,080
 
Cash and cash equivalents at beginning of the period
 
1,744
   
27,949
   
—
   
29,693
 
Cash and cash equivalents at end of the period
$
1,463
 
$
29,310
 
$
—
 
$
30,773
 

 
 

 
Consolidating Statement of Cash Flows
40 Weeks Ended October 3, 2010
(Unaudited)
                     
Minor
         
                     
Subsidiaries and
         
     
Parent
     
Subsidiary
     
Consolidating
         
     
Company
     
Guarantors
     
Adjustments
     
Consolidated
 
   
(in thousands)
                                 
Cash Flows from Operating Activities:
                               
Net (loss) income  
 
$
(30,657
)
 
$
14,659
   
$
1,693
   
$
(14,305
)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
                               
    Depreciation and amortization of property and equipment
   
18,564
     
14,324
     
390
     
33,278
 
    Amortization of debt issuance costs and swap termination payment
   
643
     
—
     
—
     
643
 
    Share–based compensation
   
3,062
     
—
     
—
     
3,062
 
    Loss on early extinguishment of debt
   
198
     
—
     
—
     
198
 
    Amortization of deferred gain on sale-leasebacks
   
(813
)
   
—
     
—
     
(813
)
    Deferred income taxes and other income tax related items
   
2,084
     
—
     
—
     
2,084
 
    Loss on the sale of assets
   
46
     
40
     
—
     
86
 
    Impairment and disposal charges, net
 
 
7,569
     
615
     
—
     
8,184
 
    Changes in assets and liabilities:
                               
       Trade accounts and other receivables
   
2,659
     
1,019
     
712
     
4,390
 
       Income taxes receivable
   
—
     
(2,827
)
   
—
     
(2,827
)
       Inventories
   
937
     
1,264
     
—
     
2,201
 
       Other current assets
   
(1,177
)
   
(994
)
   
(22
)
   
(2,193
)
       Trade accounts payable
   
2,684
     
(2,173
)
   
—
     
511
 
       Deferred revenue
   
—
     
(12,427
)
   
—
     
(12,427
)
       Accrued payroll, accrued expenses, and federal, state and local taxes
   
3,504
     
426
     
(682
)
   
3,248
 
       Other long-term assets and liabilities
   
(2,305
)
   
388
     
—
     
(1,917
)
Net cash provided by operating activities
   
6,998
     
14,314
     
2,091
     
23,403
 
                                 
Cash Flows from Investing Activities:
                               
     Additions to property and equipment
   
(6,055
)
   
(4,430
)
   
(391
)
   
(10,876
)
     Proceeds from the sale of assets
   
7
     
1,130
     
—
     
1,137
 
     Other, net
   
11,246
     
(9,551
)
   
(1,700
)
   
(5
)
Net cash provided by (used in) investing activities
   
5,198
     
(12,851
)
   
(2,091
)
   
(9,744
)
                                 
Cash Flows from Financing Activities:
                               
    Payments on long-term debt and capitalized lease obligations
   
(1,627
)
   
—
     
—
     
(1,627
)
    Repurchase of Senior Notes
   
(9,993
)
   
—
     
—
     
(9,993
)
    Debt issuance costs
   
(1,647
)
   
—
     
—
     
(1,647
)
    Proceeds from the exercise of stock options and issuances under CHUX
                               
       Ownership Plan
   
739
     
—
     
—
     
739
 
    Shares tendered and retired for minimum tax withholding
   
(277
)
   
—
     
—
     
(277
)
    Excess tax benefit from share-based payments
   
8
     
—
     
—
     
8
 
    Dividends paid
   
(3
)
   
—
     
—
     
(3
)
Net cash used in financing activities
   
(12,800
)
   
—
     
—
     
(12,800
)
                                 
(Decrease) increase in cash and cash equivalents
   
(604
)
   
1,463
     
—
     
859
 
Cash and cash equivalents at beginning of the period
   
2,127
     
19,753
     
—
     
21,880
 
Cash and cash equivalents at end of the period
 
$
1,523
   
$
21,216
   
$
—
   
$
22,739