Property and Equipment, Intangible Assets and Goodwill

12 Months Ended

Aug. 25, 2021

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.

The 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, was as follows (in thousands):


	August 26, 2020		Estimated Useful Lives (years)

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
Goodwill	$	195

Depreciation expense for the 12 week period ended November 18, 2020 and fiscal year 2020 was $1.8 million and $10.1 million, respectively.

Under the going concern basis of accounting, intangible assets, net, consisted primarily of the Fuddruckers trade name and franchise agreements that were being amortized over the 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 was 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 accounting life of 15 years from the date of acquisition December 2012.

The aggregate amortization expense related to intangible assets subject to amortization for the 12 week period ended November 18, 2020 and fiscal 2020 was $0.3 million and $1.4 million, 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 impairment was approximately $0.2 million as of August 26, 2020. We recorded no goodwill impairment charges during the 12 week period ended November 18, 2020. Due to the effects of the COVID-19 pandemic on our operations, we identified a triggering event in the third quarter of fiscal 2020. We performed an impairment test of goodwill and recorded an impairment loss related to our Cheeseburger in Paradise restaurants of $0.3 million. Under the liquidation method of accounting, there is no goodwill included in our statement of net assets in liquidation.