Property and Equipment, Intangible Assets and Goodwill

4 Months Ended

Dec. 16, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment, Intangible Assets and Goodwill

Under the going concern basis of accounting, our property and equipment, intangible assets and goodwill was accounted for as described below. Under the liquidation basis of accounting, our property and equipment and intangible assets, including intangible assets not recognized on the going concern basis, are recorded on the statement of net assets in liquidation at the amount of their estimated cash proceeds or other consideration from liquidation.

Our property and equipment were recorded at cost, net of impairment, and accumulated depreciation of property and equipment at August 26, 2020, together with the related estimated useful lives used in computing depreciation and amortization, as summarized below:


		August 26, 2020		Estimated Useful Lives (years)
	(In thousands)
Land		$	42,572		—
Restaurant equipment and furnishings		60,685		3	to	15
Buildings		114,909		20	to	33
Leasehold and leasehold improvements		20,429		Lesser of lease term or estimated useful life
Office furniture and equipment		3,178		3	to	10

		241,773
Less accumulated depreciation and amortization		(141,174)
Property and equipment, net		$	100,599
Intangible assets, net		$	15,343	15	to	21

Intangible assets, net, included the Fuddruckers trade name and franchise agreements were amortized. We believed the Fuddruckers brand name had 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 represented a respected brand with customer loyalty and the Company intended to cultivate and protect the use of the trade name. The franchise agreements, after considering renewal periods, had an estimated accounting life of 21 years from the date of acquisition, July 2010, and was being amortized over this period of time.

Intangible assets, net, also included 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 had an expected useful life of 15 years from the date of acquisition, December 2012.

The aggregate amortization expense related to intangible assets subject to amortization was approximately $0.3 million and $0.4 million for the 12 week period ended November, 18, 2020 and the quarter ended December 18, 2019, respectively.

The following table presents intangible assets as of August 26, 2020.


		August 26, 2020
	(In thousands)
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets Subject to Amortization:

Fuddruckers trade name and franchise agreements		$	29,496	$	(14,189)	$	15,307

Cheeseburger in Paradise trade name and license agreements		146		(110)		36

Intangible assets, net		$	29,642	$	(14,299)	$	15,343

Under the going concern basis of accounting, goodwill, net of accumulated impairments, was approximately $195 thousand as of August 26, 2020. The Company recorded no goodwill impairment charges during the 12 week period ended November 18, 2020 and the quarter ended December 18, 2019, respectively. Under the liquidation basis of accounting, there is no goodwill included on our statement of net assets in liquidation.