Quarterly report pursuant to Section 13 or 15(d)

Acquisitions of Red Robin Franchised Restaurants

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Acquisitions of Red Robin Franchised Restaurants
 6 Months Ended
Jul. 12, 2015
Business Combinations [Abstract]  
Acquisitions of Red Robin Franchised Restaurants
Acquisitions of Red Robin Franchised Restaurants
On March 24, 2014, the Company acquired four Red Robin restaurants in the United States from one of its franchisees for a purchase price of $8.0 million in cash. On July 14, 2014, the Company acquired 32 Red Robin franchised restaurants, 14 in the United States and 18 in Canada, from Mach Robin, LLC and its Canadian affiliate, for a purchase price of $39.5 million in cash. The condensed consolidated statements of income include the results of operations for these restaurants from the dates of acquisition. The pro forma impact of the acquisitions on prior periods is not presented as the impact was not material to reported results.
The Company allocated the purchase price to the tangible and intangible assets acquired and liabilities assumed at the acquisition date at their estimated fair values with the remainder allocated to goodwill. During the first two quarters of 2015, the Company finalized the purchase price accounting of the above acquisitions and recorded certain immaterial purchase accounting adjustments, which are reflected in the purchase price allocation table below.
 
 
Fair Value at Acquisition Date
Property, plant and equipment
 
14,157

Intangible assets
 
9,394

Goodwill
 
23,111

Inventory
 
2,088

Deferred Tax Assets
 
2,091

Deferred Tax Liabilities
 
(1,161
)
Other current and non-current assets
 
737

Other current and non-current liabilities
 
(2,906
)
Total purchase price
 
47,511


The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date is based on significant inputs not observed in the market and thus represents a level 3 fair value measurement.