Note 7 - Property and Equipment, Intangible Assets and Goodwill

12 Months Ended

Aug. 28, 2013

Property Equipment Intangible Assets And Goodwill Disclosure [Abstract]

Property Equipment Intangible Assets And Goodwill Disclosure [Text Block]

Note 7. Property and Equipment, Intangible Assets and Goodwill

The cost, net of impairment, and accumulated depreciation of property and equipment at August 28, 2013 and August 29, 2012, together with the related estimated useful lives used in computing depreciation and amortization, were as follows:

	August 28, 2013			August 29, 2012			Estimated Useful Lives (years)
	(In thousands)
Land	$	62,191		$	59,159			—
Restaurant equipment and furnishings		116,664			109,039		3	to	15
Buildings		172,342			167,346		20	to	33
Leasehold and leasehold improvements		39,108			32,913		Lesser of lease term or estimated useful life
Office furniture and equipment		7,466			7,030		3	to	10
Construction in progress		7,814			3,890			—
		405,585			379,377
Less accumulated depreciation and amortization		(215,066	)		(205,744	)
Property and equipment, net	$	190,519		$	173,633
Intangible assets, net	$	25,517		$	26,679			21
Goodwill	$	2,169		$	195

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 sale of beverages with alcohol. These assets have an expected accounting life of 15 years from the date of acquisition December 6, 2012.

The Company recorded $4.5 million of accumulated amortization expense as of August 28, 2013 and $2.9 million of accumulated amortization expense as of August 29, 2012.

The Company recorded an intangible asset for goodwill in the amount of $0.2 million related to the acquisition of substantially all of the assets of Fuddruckers. The Company also recorded an intangible asset for goodwill in the amount of $1.9 million related to the acquisition of the membership units of Paradise Restaurant Group, LLC. Goodwill is considered to have an indefinite useful life and is not amortized. Goodwill was $2.1 million as of August 28, 2013 and $0.2 million as of August 29, 2012.

Generally accepted accounting principles in the United States require the Company to perform a goodwill impairment test annually and more frequently when negative conditions or a triggering event arise. In September 2011, the FASB issued amended guidance that simplified how entities test goodwill for impairment. After an assessment of certain qualitative factors, if it is determined to be more likely than not that the fair value of a reporting unit is less than its carrying amount, entities must perform the quantitative analysis of the goodwill impairment test. Otherwise, the quantitative test(s) become optional. The acquired goodwill will be tested for impairment one year from the date of acquisition which will be in our second quarter ended February 12, 2014. We do not believe a triggering event has occurred during the year ended August 28, 2013 which would require us to impair the goodwill acquired on December 6, 2012.