XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

Intangible Assets, net | 9 Months Ended
--- | ---
Sep. 29, 2020
Intangible Assets, net |
Intangible Assets, net | 4. Intangible Assets, net ​ The following table presents the components of our intangible assets, net (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 29, 2020 |  | December 31, 2019
Indefinite-lived intangible assets: | ​ | ​ |  | ​ | ​ |
Goodwill | ​ | $ | 1,451 | ​ | $ | 78,355
Trade names and trademarks | ​ |  | 233,628 | ​ |  | 337,027
Transferable alcoholic beverage licenses | ​ |  | 7,871 | ​ |  | 8,575
Total indefinite-lived intangible assets | ​ |  | 242,950 | ​ |  | 423,957
Definite-lived intangible assets, net: | ​ |  | ​ | ​ |  |
Licensing agreements | ​ |  | 7,382 | ​ |  | 10,060
Non-transferable alcoholic beverage licenses | ​ |  | 3,245 | ​ |  | 3,190
Total definite-lived intangible assets | ​ |  | 10,627 | ​ |  | 13,250
Total intangible assets, net | ​ | $ | 253,577 | ​ | $ | 437,207
​ During the first quarter of fiscal 2020, we finalized our purchase accounting for the Acquisitions, increasing goodwill by $2.5 million with an offsetting decrease in trade names and trademarks. ​ Goodwill and other indefinite-lived intangible assets are tested for impairment annually as of the first day of our fiscal fourth quarter or on an interim basis if events or changes in circumstances between annual tests indicate a potential impairment. Definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable based on estimated undiscounted future cash flows. ​ Due to the decrease in our stock price coupled with the dining room closures related to the COVID-19 pandemic and significant decline to the equity value of our peers and overall U.S. stock market, we determined it was necessary to perform an interim assessment of our indefinite and definite-lived intangible assets during the first quarter of fiscal 2020. For the goodwill impairment test, the estimated fair value of the reporting units was determined using a blend of the income and market capitalization approaches. For the income approach, we performed a discounted cash flow analysis. The fair value of the other indefinite-lived assets was estimated using the relief from royalty method. There were a number of estimates and significant judgments made by management in performing these evaluations, such as future unit growth, average unit volumes, cash flows and discount rates. Accordingly, actual results could vary significantly from such estimates. Based on the results of these assessments, we recorded goodwill impairment expense related to the Other FRC, North Italia and Flower Child operating segments of $33.8 million, $27.7 million and $17.9 million, respectively, in the first quarter of fiscal 2020. In addition, we recorded impairment expense of $101.0 million and $2.3 million related to trade names and trademarks, and licensing agreements, respectively, in the first quarter of fiscal 2020. More than half of the total impairment amount was driven by the impact on our market capitalization, with the balance related to lower future cash flow estimates. The reduced projections stemmed primarily from our decision to delay fiscal 2020 unit development, thereby moving our expected unit growth trajectory out by one year. The cash flow estimates assumed that average unit volumes and margins would substantially return to pre-COVID-19 levels by mid-fiscal 2021.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration