Red Robin Gourmet Burgers, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12 Months Ended

Dec. 25, 2011

Goodwill and Intangible Assets

Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

The following table presents goodwill as of December 25, 2011, and December 26, 2010, (in thousands).

	2011		2010

Balance at beginning of year	$	61,769	$	61,769
Acquisitions		—		—

Balance at end of year	$	61,769	$	61,769

The Company has no historical goodwill impairment losses in periods prior to those presented in the above table.

The following table presents intangible assets subject to amortization as of December 25, 2011, and December 26, 2010, (in thousands):

	2011							2010

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets subject to amortization:
Franchise rights	$	43,494	$	(14,515	)	$	28,979	$	43,494	$	(11,925	)	$	31,569
Leasehold interests		12,955		(3,747	)		9,208		12,955		(2,945	)		10,010
Liquor licenses		8,210		(7,428	)		782		7,661		(6,184	)		1,477

	$	64,659	$	(25,690	)	$	38,969	$	64,110	$	(21,054	)	$	43,056

There were insignificant impairments of liquor licenses related to the three and four restaurants impaired in 2011 and 2010, respectively, which are discussed in Note 3 Restaurant Impairment and Restaurant Closures. There were no other impairments of intangible assets subject to amortization in 2011 or 2010. There were no impairments to intangible assets in 2009. The aggregate amortization expense related to intangible assets subject to amortization for 2010, 2010, and 2009 was $4.6 million, $4.6 million and $4.7 million, respectively.

The estimated aggregate future amortization expense as of December 25, 2011 is as follows, (in thousands):


2012	$	4,220
2013		3,566
2014		3,197
2015		3,033
2016		2,898
Thereafer		22,055

	$	38,969

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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