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. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents goodwill as of December 31, 2017 and December 25, 2016 (in thousands).



	2017		2016
Balance at beginning of year	$	95,935	$	81,957
Acquisition	—		13,679
Foreign currency translation adjustment	1,044		299
Balance at end of year	$	96,979	$	95,935

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

The following table presents intangible assets as of December 31, 2017 and December 25, 2016 (in thousands):



	2017							2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets subject to amortization:
Franchise rights	$	54,447	$	(29,685	)	$	24,762	$	55,902	$	(27,306	)	$	28,596
Leasehold interests	13,001		(7,459		)	5,542		13,931		(7,400		)	6,531
Liquor licenses	10,148		(9,667		)	481		10,253		(9,857		)	396
	$	77,596	$	(46,811	)	$	30,785	$	80,086	$	(44,563	)	$	35,523
Indefinite-lived intangible assets:
Liquor licenses	$	7,488	$	—		$	7,488	$	6,747	$	—		$	6,747
Intangible assets, net	$	85,084	$	(46,811	)	$	38,273	$	86,833	$	(44,563	)	$	42,270

No impairment charges were recorded related to indefinite-lived intangibles in 2017, 2016, or 2015. There were immaterial impairments of franchise rights, leasehold interests, and liquor licenses related to the 13 restaurants impaired in 2017 and immaterial impairments of franchise rights and liquor licenses related to the 19 restaurants impaired in 2016, which are discussed in Note 3, Other Charges. There were no other impairments of intangible assets subject to amortization in 2017, 2016, or 2015.

The aggregate amortization expense related to intangible assets subject to amortization for 2017, 2016, and 2015 was $4.9 million, $5.1 million, and $4.7 million.

The estimated aggregate future amortization expense as of December 31, 2017 is as follows (in thousands):



2018	$	4,202
2019	4,154
2020	3,638
2021	3,183
2022	2,743
Thereafter	12,865
	$	30,785

- 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.

+ References + Details