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

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

9 Months Ended

Oct. 04, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents goodwill as of October 4, 2015 and December 28, 2014 (in thousands):



Balance, December 28, 2014	$	84,115
Acquisition and adjustment	295
Translation adjustment	$	(1,764	)
Balance, October 4, 2015	$	82,646

The Company had no goodwill impairment losses in the period presented in the table above or any prior periods. During the first three quarters of 2015, the Company acquired one restaurant from a franchisee and finalized the purchase price accounting for acquisitions made in 2014, resulting in an immaterial adjustment to goodwill.

The following table presents intangible assets as of October 4, 2015 and December 28, 2014 (in thousands):



	October 4, 2015							December 28, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets subject to amortization:
Franchise rights	$	50,877	$	(23,155	)	$	27,722	$	50,826	$	(20,583	)	$	30,243
Favorable leases	12,991		(6,461		)	6,530		12,991		(5,553		)	7,438
Liquor licenses	10,096		(9,717		)	379		10,058		(9,548		)	510
	$	73,964	$	(39,333	)	$	34,631	$	73,875	$	(35,684	)	$	38,191
Indefinite-lived intangible assets:
Liquor licenses and other	$	5,644	$	—		$	5,644	$	4,288	$	—		$	4,288
Intangible assets, net	$	79,608	$	(39,333	)	$	40,275	$	78,163	$	(35,684	)	$	42,479

There were no impairments to intangible assets during the forty weeks ended October 4, 2015 and October 5, 2014. The aggregate amortization expense related to intangible assets subject to amortization was $1.2 million and $3.6 million for the twelve and forty weeks ended October 4, 2015.

The estimated aggregate future amortization expense as of October 4, 2015 is as follows, (in thousands):



Remainder of 2015	$	966
2016	4,025
2017	3,915
2018	3,699
2019	3,617
Thereafter	18,409
	$	34,631

- 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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