Popeye's 2013 Annual Report Download - page 73

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Popeyes Louisiana Kitchen, Inc.
Notes to Consolidated Financial Statements
For Fiscal Years 2013, 2012, and 2011 — (Continued)
57
On November 13, 2012, the Company completed a $13.8 million acquisition of 27 restaurants in Minnesota and
California. The restaurants were in the trade image of another quick service restaurant concept. Twenty-six of the
acquired restaurants were converted into the Popeyes Louisiana Kitchen image at a cost of approximately $16.1 million.
Following the conversion, the restaurants were leased to Popeyes franchisees to operate under our standard franchise
agreement. The remaining restaurant property was sold in 2013. The following table summarizes the allocation of the
$14.6 million total cost of the acquisition including the $13.8 million purchase price:
Land $ 7.5
Building and improvements 6.5
Properties held for sale and other 0.6
Total cost $14.6
At December 29, 2013 and December 30, 2012,property and equipment, net included capital lease assets with a
gross book value of $1.8 million and accumulated amortization of $0.2 million and $0.1 million, respectively.
Note 6 — Trademarks and Other Intangible Assets, Net
(in millions) 2013 2012
Non-amortizable intangible assets:
Trademarks $ 50.0 $50.0
Other 0.6 0.6
50.6 50.6
Amortizable intangible assets:
Re-acquired franchise rights 7.1 7.1
Accumulated amortization (4.3)(3.8)
2.8 3.3
$53.4 $53.9
Amortization expense was approximately $0.5 million,$0.6 million, and $0.5 million,for 2013,2012, and 2011,
respectively. Estimated amortization expense is expected to be approximately $0.5 million in 2014 through 2017, and
$0.4 million in 2018. The remaining weighted average amortization period for these assets is 6 years.
On November 7, 2012, the Company entered into a new agreement with the King Features Syndicate Division of
Hearst Holdings, Inc., licensor of the Popeye®the Sailorman and associated cartoon characters. As part of the new
agreement, the parties agreed to dismiss the pending declaratory judgment action related to their previous license
agreement. The new agreement confirms the expiration of the previous license agreement and the parties agree to
cooperate with each other to protect their respective intellectual property rights on aworld-wide basis. Aone–time $7.0
million payment made to King Features, as well as the associated legal fees of $1.0 million, were recorded as an
indefinite-lived intangible asset.
Note 7 — Other Current Liabilities
(in millions) 2013 2012
Accrued wages, bonuses and severances $ 6.0 $2.6
Other 2.1 3.3
$8.1 $5.9