Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v3.3.1.900
Goodwill and Intangible Assets
12 Months Ended
Dec. 27, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Goodwill and Intangible Assets
The following table presents goodwill as of December 27, 2015, and December 28, 2014, (in thousands).
 
 
2015
 
2014
Balance at beginning of year
 
$
84,115

 
$
62,525

Acquisition and adjustment
 
295

 
22,953

Foreign currency translation adjustment
 
(2,453
)
 
(1,363
)
Balance at end of year
 
$
81,957

 
$
84,115


The Company has had no goodwill impairment losses in the periods presented in the above table or any prior periods. During 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 December 27, 2015 and December 28, 2014 (in thousands):
 
 
2015
 
2014
 
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Intangible assets subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
Franchise rights
 
$
50,878

 
$
(23,904
)
 
$
26,974

 
$
50,826

 
$
(20,583
)
 
$
30,243

Leasehold interests
 
12,991

 
(6,643
)
 
6,348

 
12,991

 
(5,553
)
 
7,438

Liquor licenses
 
10,168

 
(9,751
)
 
417

 
10,058

 
(9,548
)
 
510

 
 
$
74,037

 
$
(40,298
)
 
$
33,739

 
$
73,875

 
$
(35,684
)
 
$
38,191

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Liquor licenses
 
$
5,834

 
$

 
$
5,834

 
$
4,288

 
$

 
$
4,288

Intangible assets, net
 
$
79,871

 
$
(40,298
)
 
$
39,573

 
$
78,163

 
$
(35,684
)
 
$
42,479


No impairment charges were recorded related to indefinite-lived intangibles in 2015, 2014, or 2013. There were insignificant impairments of franchise rights and leasehold interests related to the three restaurants impaired in 2014 and four restaurants impaired in 2013, which are discussed in Note 4, Impairment and Restaurant Closures. There were no other impairments of intangible assets subject to amortization in 2015, 2014, or 2013.
The aggregate amortization expense related to intangible assets subject to amortization for 2015, 2014, and 2013 was $4.7 million, $3.9 million, and $3.7 million.
The estimated aggregate future amortization expense as of December 27, 2015 is as follows (in thousands):
2016
$
4,021

2017
3,911

2018
3,701

2019
3,621

2020
3,094

Thereafter
15,391

 
$
33,739