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. 29, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents goodwill as of December 29, 2013, and December 30, 2012, (in thousands).



	2013		2012
Balance at beginning of year	$	62,525	$	61,769
Acquisitions	—		756
Balance at end of year	$	62,525	$	62,525

The Company has had no goodwill impairment losses in the periods presented in the above table or any prior periods.

The following table presents intangible assets subject to amortization as of December 29, 2013, and December 30, 2012, (in thousands):



	2013							2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets subject to amortization:
Franchise rights	$	43,330	$	(17,622	)	$	25,708	$	43,519	$	(15,342	)	$	28,177
Leasehold interests	12,476		(4,875		)	7,601		12,744		(4,313		)	8,431
Liquor licenses	9,924		(9,278		)	646		9,095		(8,500		)	595
	$	65,730	$	(31,775	)	$	33,955	$	65,358	$	(28,155	)	$	37,203
Indefinite-lived intangible assets:
Liquor licenses	$	2,845	$	—		$	2,845	$	—	$	—		$	—
Intangible assets, net	$	68,575	$	(31,775	)	$	36,800	$	65,358	$	(28,155	)	$	37,203

In fiscal year 2013 the Company purchased several transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses. The total costs were capitalized as indefinite-lived intangible assets and are not subject to amortization. Non-amortizing intangible assets are required to be evaluated for impairment at least annually or more frequently if indicators of impairment exist. No impairment charges were recorded related to indefinite-lived intangibles in fiscal years 2013, 2012 or 2011.

There were insignificant impairments of franchise rights and leasehold interests related to the four restaurants impaired in fiscal year 2013 and insignificant impairments of liquor licenses subject to amortization related to the three restaurants impaired in fiscal year 2011, which are discussed in Note 3, Restaurant Impairment and Restaurant Closures. There were no other impairments of intangible assets subject to amortization in fiscal years 2013 and 2011 and no impairments to intangible assets subject to amortization in fiscal year 2012. The aggregate amortization expense related to intangible assets subject to amortization for fiscal years 2013, 2012 and 2011 was $3.7 million, $4.6 million and $4.6 million.

The estimated aggregate future amortization expense as of December 29, 2013 is as follows, (in thousands):



2014	$	3,292
2015	3,163
2016	2,990
2017	2,939
2018	2,798
Thereafter	18,773
	$	33,955

- 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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