XML 40 R36.htm IDEA: XBRL DOCUMENT v3.19.3
CHILI'S RESTAURANT ACQUISITION (Details)
$ in Millions
 1 Months Ended 3 Months Ended
Sep. 05, 2019
USD ($)
Sep. 25, 2019
USD ($)
Restaurant
Sep. 25, 2019
USD ($)
Restaurant
Sep. 26, 2018
USD ($)
Jun. 26, 2019
USD ($)
Business Acquisition [Line Items]          
Number of restaurants | Restaurant   1,672 1,672    
Purchase price excluding customary working capital adjustments $ 99.0        
Total expected annual revenue for acquired restaurants 300.0        
Annual expected royalty revenue lost for acquired restaurants 22.0        
Revenue of acquired restaurants since acquisition date   $ 15.3      
Acquisition of franchise restaurants net gain     $ 0.5 $ 0.0  
Franchise deferred revenue recognized upon acquisition 2.6        
Acquisition transaction costs   1.5 1.5    
Loss on derecognition of franchisee straight-line rent balance $ 0.6        
Goodwill   $ 189.7 $ 189.7   $ 165.5
Weighted average amortization period, reacquired franchise rights 8 years        
Acquisition closing adjustments $ (1.6)        
Payments for rent on new leases related to acquisition 2.8        
Addition to net assets acquired related to termination of subleases with franchisee 0.4        
Chili's restaurant acquisition [Member]          
Business Acquisition [Line Items]          
Number of restaurants   116 116    
Current assets [1] 7.3        
Property and equipment 60.6        
Operating lease assets 163.7        
Reacquired franchise rights [2] 6.5        
Goodwill [3] 24.3        
Other assets 1.1        
Total assets acquired 263.5        
Current liabilities [4] 10.2        
Operating lease liabilities, less current portion 158.3        
Total liabilities assumed 168.5        
Net assets acquired(5) [5] $ 95.0        
[1]
Current assets included petty cash, inventory, and restaurant supplies.
[2]
Reacquired franchise rights have a weighted average amortization period of approximately 8 years.
[3]
Goodwill of $24.3 million is expected to be deductible for tax purposes. The portion of the purchase price attributable to goodwill represents the benefits expected as a result of the acquisition, including sales and unit growth opportunities, and the benefit of the assembled workforce of the acquired restaurants.
[4]
Current liabilities included current portion of operating lease liabilities, gift card liability and accrued property tax.
[5]
Net assets acquired at fair value is equal to total purchase price of $99.0 million, less $1.6 million of closing adjustments and $2.8 million allocated to prepayment of leases entered into between us and the franchisee (refer to Note 3 - Leases for more information), partially offset by $0.4 million related to favorable market valuation adjustment recognized on pre-existing subleases that were terminated on the transaction date.