Property and Equipment, Intangible Assets and Goodwill

The costs, net of impairment, and accumulated depreciation of property and equipment at March 9, 2016 and August 26, 2015, together with the related estimated useful lives used in computing depreciation and amortization, were as follows:



	March 9, 2016			August 26, 2015			Estimated Useful Lives (years)
	(In thousands)
Land	$	62,498		$	63,298			—
Restaurant equipment and furnishings	90,794			85,679			3	to	15
Buildings	163,085			159,391			20	to	33
Leasehold and leasehold improvements	29,806			29,229			Lesser of lease term or estimated useful life
Office furniture and equipment	3,742			3,559			3	to	10
Construction in progress	147			810				—
	350,072			341,966
Less accumulated depreciation and amortization	(151,375		)	(141,764		)
Property and equipment, net	$	198,697		$	200,202
Intangible assets, net	$	21,728		$	22,570		15	to	21
Goodwill	$	1,605		$	1,643			—

Intangible assets, net, consist of the Fuddruckers trade name and franchise agreements and will be amortized. The Company believes the Fuddruckers brand name has an expected accounting life of 21 years from the date of acquisition based on the expected use of its assets and the restaurant environment in which it is being used. The trade name represents a respected brand with customer loyalty and the Company intends to cultivate and protect the use of the trade name. The franchise agreements, after considering renewal periods, have an estimated accounting life of 21 years from the date of acquisition and will be amortized over this period of time.

Intangible assets, net, also includes the license agreement and trade name related to Cheeseburger in Paradise and the value of the acquired licenses and permits allowing the sales of beverages with alcohol. These assets have an expected accounting life of 15 years from the date of acquisition, December 6, 2012.

The aggregate amortization expense related to intangible assets subject to amortization was $0.8 million for the two quarters ended March 9, 2016 and $0.7 million for the two quarters ended February 11, 2015. The aggregate amortization expense related to intangible assets subject to amortization is expected to be $1.4 million in each of the next five successive years.

The following table presents intangible assets as of March 9, 2016 and August 26, 2015:



	March 9, 2016							August 26, 2015
	(In thousands)							(In thousands)
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible Assets Subject to Amortization:

Fuddruckers trade name and franchise agreements	$	29,607	$	(7,983	)	$	21,624	$	29,607	$	(7,166	)	$	22,441

Cheeseburger in Paradise trade name and license agreements	$	421	$	(317	)	$	104	$	421	$	(292	)	$	129

Intangible assets, net	$	30,028	$	(8,300	)	$	21,728	$	30,028	$	(7,458	)	$	22,570

The Company recorded, in fiscal 2010, an intangible asset for goodwill in the amount of approximately $0.2 million related to the acquisition of substantially all of the assets of Fuddruckers. The Company also recorded, in fiscal 2013, an intangible asset for goodwill in the amount of approximately $2.0 million related to the acquisition of Cheeseburger in Paradise. Goodwill is considered to have an indefinite useful life and is not amortized. Management performs its formal annual assessment as of the second quarter each fiscal year. The individual restaurant level is the level at which goodwill is assessed for impairment under ASC 350. In accordance with our understanding of ASC 350, we have allocated the goodwill value to each reporting unit in proportion to each location’s fair value at the date of acquisition. The result of these second quarter fiscal 2016 assessments was impairment of goodwill of $38 thousand. Goodwill impairments in fiscal years 2015 and 2014 were $38 thousand and $0.5 million, respectively. The Company will formally perform additional assessments on an interim basis if an event occurs or circumstances exist that indicate that it is more likely than not that a goodwill impairment exists. As of March 9, 2016, of the 23 locations that were acquired, eight locations remain operating as Cheeseburger in Paradise restaurants, seven locations were closed and converted to Fuddruckers restaurants, two locations where the option to extend the lease was not exercised, two locations subleased to franchisees and four closed and held for future use.

Goodwill, net of accumulated impairments of approximately $0.6 million, was approximately $1.6 million as of March 9, 2016 and as of August 26, 2015, and relates to our Company-owned restaurants reportable segments.