Chili's 2015 Annual Report Download - page 63

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include expense related to the accelerated vesting of stock-based compensation awards. In fiscal 2013, we also
recognized gains of $11.2 million on the sale of assets, consisting of an $8.3 million gain on the sale of our
remaining interest in Macaroni Grill and net gains of $2.9 million related to land sales.
The restaurant, liquor license and reacquired franchise rights impairment charges were measured as the
excess of the carrying amount over the fair value. See Note 10 for fair value disclosures related to these
impairment charges.
5. GOODWILL AND INTANGIBLES
The changes in the carrying amount of goodwill for the fiscal years ended June 24, 2015 and June 25, 2014
are as follows (in thousands):
2015 2014
Balance at beginning of year:
Goodwill .......................................... $196,268 $204,937
Accumulated impairment losses(a) ...................... (62,834) (62,834)
133,434 142,103
Changes in goodwill:
Adjustments(b) ..................................... 0 (8,387)
Foreign currency translation adjustment .................. (1,053) (282)
Balance at end of year:
Goodwill .......................................... 195,215 196,268
Accumulated impairment losses ........................ (62,834) (62,834)
$132,381 $133,434
(a) The impairment losses recorded in prior years are related to restaurant brands that we no
longer own.
(b) The valuation of assets and liabilities related to the acquired Canadian restaurants was
finalized during fiscal 2014 resulting in an adjustment of approximately $8.4 million to
goodwill.
Intangible assets, net for the fiscal years ended June 24, 2015 and June 25, 2014 are as follows (in
thousands):
2015 2014
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Definite-lived intangible assets
Reacquired franchise rights(a) . . . $ 7,423 $(1,625) $5,798 $ 9,107 $(1,121) $7,986
Other ....................... 804 (358) 446 872 (292) 580
$ 8,227 $(1,983) $6,244 $ 9,979 $(1,413) $8,566
Indefinite-lived intangible assets
Liquor licenses ............... $10,398 $10,275
Amortization expense for all definite-lived intangible assets was $0.8 million, $1.0 million and $0.2 million
in fiscal 2015, 2014 and 2013, respectively. Amortization expense for definite-lived intangible assets will
approximate $0.9 million for the next five fiscal years.
(a) The gross carrying amount and accumulated amortization include the impact of foreign currency translation
on existing balances of $1.0 million. Additionally, we recorded an impairment charge of $0.4 million in
fiscal 2015 to write down the Brinker Canada franchise rights. See Note 10 for additional disclosures.
F-27