El Pollo Loco 2015 Annual Report Download - page 83

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Table of Contents
EL POLLO LOCO HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The Company’s restaurant in Norwalk, California, was closed in fiscal 2013 due to an eminent domain purchase by the State of California. The
Company received proceeds of approximately $1,348,000. Goodwill was decremented by $600,000, based on a calculation of the fair value of
the restaurant closed as a percentage of the relative fair value of the remainder of the reporting unit retained. The Company recognized a net gain
of $400,000, which is recorded as gain on disposition of restaurants in the accompanying consolidated statements of operations.
Domestic trademarks consist of the following (in thousands):
Other intangible assets subject to amortization consist of the following (in thousands):
The estimated net amortization credits (net liability) for the Company’s favorable and unfavorable leasehold interests for each of the five
succeeding fiscal years and thereafter is as follows (in thousands):
The aggregate amortization expense for the years ended December 31, 2014, December 25, 2013, and December 26, 2012 was $227,000,
$213,000, and $275,000, respectively. The remaining weighted average amortization periods of the favorable leasehold interest and the
unfavorable leasehold liability are four years and nine years respectively.
5. LEASES
The Company’s operations utilize property, facilities, equipment and vehicles owned by the Company or leased from others. Buildings and
facilities leased from others are primarily for restaurants and support facilities. Restaurants are operated under lease arrangements that generally
provide for a fixed base rent and, in some
79
December 31, 2014
December 25, 2013
Beginning balance
$
120,700
$
120,700
Accumulated impairment charges
(58,812
)
(58,812
)
Ending balance
$
61,888
$
61,888
December 31, 2014
December 25, 2013
Favorable leasehold interest
$
6,038
$
6,038
Less: accumulated amortization
(5,260
)
(5,104
)
Total favorable leasehold interest, net
$
778
$
934
Unfavorable leasehold interest
$
(9,156
)
$
(9,156
)
Less: accumulated amortization
7,612
7,229
Unfavorable leasehold interest liability, net
$
(1,544
)
$
(1,927
)
For the Years Ending
Favorable Leasehold
Interest
Unfavorable Leasehold
Interest
December 31, 2015
$
140
$
(296
)
December 30, 2016
130
(228
)
December 28, 2017
106
(225
)
December 27, 2018
97
(144
)
December 26, 2019
94
(136
)
Thereafter
211
(515
)
Total
$
778
$
(1,544
)