Goodwill And Other Intangible Assets

12 Months Ended

Dec. 29, 2013

Goodwill And Other Intangible Assets [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Other Intangible Assets

Goodwill activity for 2013 and 2012 was as follows:



	Year End
	2013			2012

Balance at beginning of year	$	876,201		$	870,431
Restaurant dispositions	(20,578		)	(3,103		)
Restaurant acquisitions	—			7,982
Impairment	(9,397		)	—
Currency translation adjustment and other, net	(3,682		)	891
Balance at end of year	$	842,544		$	876,201

During the fourth quarter of 2013, we performed our annual goodwill impairment test. Step one of our process determined that our international franchise restaurants reporting unit was impaired as its carrying amount exceeded its fair value. The fair value of our international franchise reporting unit was based on the income approach, which is determined based on the present value of the anticipated cash flows associated with the reporting unit. The decline in the fair value of the international franchise restaurants reporting unit resulted from lower than anticipated current and future operating results including lower projected growth rates and profitability levels than previously anticipated. Step two of our process resulted in an impairment charge of $9,397, which represents the total amount of goodwill recorded for our international franchise restaurants reporting unit. We also concluded at that time that our remaining goodwill, which relates to our North America company-owned and franchise restaurants reporting unit was not impaired.

The following is a summary of the components of other intangible assets:



	Year End 2013							Year End 2012
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Indefinite-lived:
Trademarks	$	903,000	$	—		$	903,000	$	903,000	$	—		$	903,000
Definite-lived:
Franchise agreements	352,339		(88,281		)	264,058		353,778		(71,795		)	281,983
Favorable leases	140,619		(41,625		)	98,994		103,914		(30,369		)	73,545
Reacquired rights under franchise agreements (a)	23,065		(21,219		)	1,846		23,065		(779		)	22,286
Computer software	68,665		(30,783		)	37,882		45,005		(24,282		)	20,723
	$	1,487,688	$	(181,908	)	$	1,305,780	$	1,428,762	$	(127,225	)	$	1,301,537

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(a)	Includes $16,907 of accelerated amortization during the year ended December 29, 2013 on previously acquired franchise rights in territories expected to be sold as part of our system optimization initiative.



Aggregate amortization expense:
Actual for fiscal year (a):
2011	$	33,181
2012	32,713
2013	55,516
Estimate for fiscal year:
2014	$	37,116
2015	33,257
2016	31,102
2017	29,815
2018	28,231
Thereafter	243,259

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(a)	Includes $792, $1,757, and $2,763 of impairment charges related to other intangible assets in 2013, 2012 and 2011, respectively. Also, 2013 includes $1,678 of System Optimization Remeasurement and $16,907 of accelerated amortization on previously acquired franchise rights in territories expected to be sold as a part of our system optimization initiative.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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