El Pollo Loco 2016 Annual Report Download - page 70

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EL POLLO LOCO HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
afterthatexercise.LLCmayonlyexercisetheInitialOptionifEPLfirstdeterminestobegindevelopmentofcompany-operatedrestaurantsintheTerritoryor
supportthedevelopmentoftheTerritory.WehavenocurrentintentiontobegindevelopmentintheTerritory.
3. PROPERTY AND EQUIPMENT
Thecostsandrelatedaccumulateddepreciationandamortizationofmajorclassesofpropertyareasfollows(inthousands):
December 30, 2015 December 31, 2014
Land  $ 12,323 $ 12,323
Buildingsandimprovements   111,349   92,834
Otherpropertyandequipment   58,525   49,890
Constructioninprogress   4,717   2,353
 186,914  157,400
Less:accumulateddepreciationandamortization   (84,493) (75,310)
 $ 102,421  $ 82,090
Depreciationexpensewas$13.1million,$11.5millionand$10.2millionfortheyearsendedDecember30,2015,December31,2014,andDecember25,2013,
respectively.Grossvalueofassetsundercapitalleasesforbuildingsandimprovementswas$1,559,200and$1,800,800atDecember30,2015andDecember31,
2014,respectively.Accumulateddepreciationforassetsundercapitalleaseswas$1,470,000and$1,673,000fortheyearsendedDecember30,2015and
December31,2014,respectively.FortheyearendedDecember30,2015,capitalexpendituresrelatedtorestaurantremodelingandnewrestaurantexpenditures
totaled$23.7million,whichconsistedof$6.3millionand$17.4million,respectively.FortheyearendedDecember31,2014,capitalexpendituresrelatedto
restaurantremodelingandnewrestaurantexpenditurestotaled$23.7million,whichconsistedof$7.4millionand$16.3million,respectively.
4. GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES
Changesingoodwillconsistofthefollowing(inthousands):
December 30, 2015 December 31, 2014
Balanceatbeginningofyear  $ 248,674   $ 249,324
Restaurantdisposition   —    (650)
Balanceatendofyear  $ 248,674   $ 248,674
OnSeptember24,2014,wecompletedanagreementtosellsixcompany-operatedrestaurantsinthegreaterSanAntonioareatoAAPollo,Inc.,resultingincash
proceedsof$5.4million.Goodwillwasdecrementedby$650,000,basedonacalculationofthefairvalueoftherestaurantssoldrelativetothefairvalueofthe
portionofthereportingunitretained.Werecognizedanetgainof$2.7milliononthistransaction,whichisrecordedasagainondispositionofrestaurantsinthe
accompanyingstatementofoperations.Thesesixrestaurantsarenowfranchised.Therehavebeennoimpairmentlossestogoodwilllifetodate.
Domestictrademarksconsistofthefollowing(inthousands):
December 30, 2015 December 31, 2014
Beginningbalance  $ 120,700   $ 120,700
Accumulatedimpairmentcharges (58,812 ) (58,812)
Endingbalance  $ 61,888   $ 61,888
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