Condensed Consolidating Schedules (Tables)

3 Months Ended

Apr. 02, 2017

Apr. 03, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of April 2, 2017
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	85,204		$	2,719		$	7,003		$	—		$	94,926
Restricted cash	—			—			276			—			276
Accounts receivable	12,599			2,814			5,101			(4,507		)	16,007
Inventories	20,181			3,639			284			—			24,104
Prepaid expenses	13,458			10,197			1,540			—			25,195
Total current assets	131,442			19,369			14,204			(4,507		)	160,508
Property and equipment, net	530,252			51,480			6,799			—			588,531
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	18,539			464,598			—			—			483,137
Intercompany	109,662			—			—			(109,662		)	—
Investment in subsidiaries	447,256			—			—			(447,256		)	—
Other noncurrent assets	9,999			12,847			321			—			23,167
Total assets	$	1,679,612		$	599,708		$	21,324		$	(561,425	)	$	1,739,219
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	—		$	—		$	—		$	7,600
Capital lease obligations, current portion	500			—			7			—			507
Accounts payable and accrued expenses	82,638			22,378			5,562			—			110,578
Other current liabilities	3,867			511			—			—			4,378
Total current liabilities	94,605			22,889			5,569			—			123,063
Capital lease obligations, less current portion	13,399			—			58			—			13,457
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	967,503			—			—			—			967,503
Deferred tax liability	167,602			18,975			(1,159		)	—			185,418
Intercompany	—			90,554			23,615			(114,169		)	—
Other noncurrent liabilities	211,558			12,932			343			—			224,833
Total liabilities	1,454,667			145,350			28,426			(114,169		)	1,514,274
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	358,767			466,114			3,241			(469,355		)	358,767
Retained earnings (deficit)	(131,045		)	(11,756		)	(7,566		)	19,322			(131,045		)
Accumulated other comprehensive income (loss)	(2,777		)	—			(2,777		)	2,777			(2,777		)
Total stockholder's equity	224,945			454,358			(7,102		)	(447,256		)	224,945
Total liabilities and stockholder's equity	$	1,679,612		$	599,708		$	21,324		$	(561,425	)	$	1,739,219

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of January 1, 2017
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	53,088		$	1,158		$	6,777		$	—		$	61,023
Restricted cash	—			—			268			—			268
Accounts receivable	16,922			3,220			2,455			(2,102		)	20,495
Inventories	18,255			3,151			271			—			21,677
Prepaid expenses	14,294			6,077			1,127			—			21,498
Total current assets	102,559			13,606			10,898			(2,102		)	124,961
Property and equipment, net	538,195			47,906			6,785			—			592,886
Goodwill	432,462			51,414			—			—			483,876
Intangible assets, net	19,157			464,926			—			—			484,083
Intercompany	127,107			317			—			(127,424		)	—
Investment in subsidiaries	436,483			—			—			(436,483		)	—
Other noncurrent assets	6,888			17,025			393			—			24,306
Total assets	$	1,662,851		$	595,194		$	18,076		$	(566,009	)	$	1,710,112
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	7,600		$	13		$	—		$	—		$	7,613
Capital lease obligations, current portion	460			—			7			—			467
Accounts payable and accrued expenses	84,207			11,445			2,184			—			97,836
Other current liabilities	3,764			511			—			—			4,275
Total current liabilities	96,031			11,969			2,191			—			110,191
Capital lease obligations, less current portion	13,542			—			60			—			13,602
Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion	968,266			—			—			—			968,266
Deferred tax liability	166,064			21,234			(1,008		)	—			186,290
Intercompany	—			106,131			23,395			(129,526		)	—
Other noncurrent liabilities	212,943			12,484			331			—			225,758
Total liabilities	1,456,846			151,818			24,969			(129,526		)	1,504,107
Stockholder's equity:
Common stock	—			—			—			—			—
Capital in excess of par value	357,166			466,114			3,241			(469,355		)	357,166
Retained earnings (deficit)	(148,265		)	(22,738		)	(7,238		)	29,976			(148,265		)
Accumulated other comprehensive income (loss)	(2,896		)	—			(2,896		)	2,896			(2,896		)
Total stockholder's equity	206,005			443,376			(6,893		)	(436,483		)	206,005
Total liabilities and stockholder's equity	$	1,662,851		$	595,194		$	18,076		$	(566,009	)	$	1,710,112

Condensed Consolidating Income Statement

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended XXX
(in thousands)
	Issuer		Guarantors		Non-Guarantors		Eliminations		Consolidated
Revenues:
Food and beverage sales							$	—	$	—
Entertainment and merchandise sales							—		—
Total company venue sales	—		—		—		—		—
Franchise fees and royalties					—		—		—
International Association assessments and other fees									—
Total revenues	—		—		—		—		—
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage							—		—
Cost of entertainment and merchandise							—		—
Total cost of food, beverage, entertainment and merchandise	—		—		—		—		—
Labor expenses							—		—
Depreciation and amortization							—		—
Rent expense							—		—
Other store operating expenses									—
Total company store operating costs	—		—		—		—		—
Advertising expense									—
General and administrative expenses							—		—
Transaction, severance and related litigation costs					—		—		—
Asset Impairments			—				—		—
Total operating costs and expenses	—		—		—		—		—
Operating income (loss)	—		—		—		—		—
Equity in earnings (loss) in affiliates			—		—				—
Interest expense (income)							—		—
Income (loss) before income taxes	—		—		—		—		—
Income tax expense (benefit)									—
Net income (loss)	$	—	$	—	$	—	$	—	$	—
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments			—						—
Comprehensive income (loss)	$	—	$	—	$	—	$	—	$	—

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Nine Months Ended XXX
(in thousands)
	Issuer		Guarantors		Non-Guarantors		Eliminations		Consolidated
Revenues:
Food and beverage sales							$	—	$	—
Entertainment and merchandise sales							—		—
Total company venue sales	—		—		—		—		—
Franchise fees and royalties							—		—
International Association assessments and other fees									—
Total revenues	—		—		—		—		—
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage							—		—
Cost of entertainment and merchandise							—		—
Total cost of food, beverage, entertainment and merchandise	—		—		—		—		—
Labor expenses							—		—
Depreciation and amortization							—		—
Rent expense							—		—
Other store operating expenses									—
Total company store operating costs	—		—		—		—		—
Advertising expense									—
General and administrative expenses							—		—
Transaction, severance and related litigation costs					—		—		—
Asset impairment									—
Total operating costs and expenses	—		—		—		—		—
Operating income (loss)	—		—		—		—		—
Equity in earnings (loss) in affiliates					—				—
Interest expense							—		—
Income (loss) before income taxes	—		—		—		—		—
Income tax expense (benefit)							—		—
Net income (loss)	$	—	$	—	$	—	$	—	$	—
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments			—						—
Comprehensive income (loss)	$	—	$	—	$	—	$	—	$	—

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 2, 2017
(in thousands)
	Issuer		Guarantors		Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	108,190	$	14,402	$	1,827		$	—		$	124,419
Entertainment and merchandise sales	118,788		14,112		3,017			—			135,917
Total company venue sales	226,978		28,514		4,844			—			260,336
Franchise fees and royalties	441		4,182		—			—			4,623
International Association assessments and other fees	314		10,544		10,509			(21,367		)	—
Total revenues	227,733		43,240		15,353			(21,367		)	264,959
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage	23,996		3,688		534			—			28,218
Cost of entertainment and merchandise	7,901		415		171			—			8,487
Total cost of food, beverage, entertainment and merchandise	31,897		4,103		705			—			36,705
Labor expenses	60,183		4,839		1,366			—			66,388
Depreciation and amortization	24,979		920		513			—			26,412
Rent expense	21,279		1,501		539			—			23,319
Other venue operating expenses	43,016		3,287		1,305			(10,858		)	36,750
Total company venue operating costs	181,354		14,650		4,428			(10,858		)	189,574
Advertising expense	10,936		1,846		11,109			(10,509		)	13,382
General and administrative expenses	6,082		11,034		148			—			17,264
Transaction, severance and related litigation costs	80		—		—			—			80
Total operating costs and expenses	198,452		27,530		15,685			(21,367		)	220,300
Operating income (loss)	29,281		15,710		(332		)	—			44,659
Equity in earnings (loss) in affiliates	10,654		—		—			(10,654		)	—
Interest expense	15,907		1,017		137			—			17,061
Income (loss) before income taxes	24,028		14,693		(469		)	(10,654		)	27,598
Income tax expense (benefit)	6,808		3,711		(141		)	—			10,378
Net income (loss)	$	17,220	$	10,982	$	(328	)	$	(10,654	)	$	17,220
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	119		—		119			(119		)	119
Comprehensive income (loss)	$	17,339	$	10,982	$	(209	)	$	(10,773	)	$	17,339

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 3, 2016
(in thousands)
	Issuer			Guarantors			Non-Guarantors		Eliminations			Consolidated
Revenues:
Food and beverage sales	$	107,822		$	12,788		$	1,592	$	—		$	122,202
Entertainment and merchandise sales	139,208			5,598			2,751		—			147,557
Total company venue sales	247,030			18,386			4,343		—			269,759
Franchise fees and royalties	598			3,961			—		—			4,559
International Association assessments and other fees	255			615			11,958		(12,828		)	—
Total revenues	247,883			22,962			16,301		(12,828		)	274,318
Operating Costs and Expenses:
Company venue operating costs:
Cost of food and beverage	26,644			3,297			580		—			30,521
Cost of entertainment and merchandise	8,119			445			186		—			8,750
Total cost of food, beverage, entertainment and merchandise	34,763			3,742			766		—			39,271
Labor expenses	63,734			3,999			1,310		—			69,043
Depreciation and amortization	26,563			607			459		—			27,629
Rent expense	22,257			1,333			560		—			24,150
Other venue operating expenses	33,763			2,166			951		(870		)	36,010
Total company venue operating costs	181,080			11,847			4,046		(870		)	196,103
Advertising expense	12,420			1,673			10,965		(11,958		)	13,100
General and administrative expenses	7,183			10,659			176		—			18,018
Transaction, severance and related litigation costs	701			48			—		—			749
Total operating costs and expenses	201,384			24,227			15,187		(12,828		)	227,970
Operating income (loss)	46,499			(1,265		)	1,114		—			46,348
Equity in earnings (loss) in affiliates	(1,112		)	—			—		1,112			—
Interest expense	16,602			351			108		—			17,061
Income (loss) before income taxes	28,785			(1,616		)	1,006		1,112			29,287
Income tax expense (benefit)	10,870			165			337		—			11,372
Net income (loss)	$	17,915		$	(1,781	)	$	669	$	1,112		$	17,915
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	754			—			754		(754		)	754
Comprehensive income (loss)	$	18,669		$	(1,781	)	$	1,423	$	358		$	18,669

Condensed Consolidating Cash Flow Statement

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Three Months Ended April 2, 2017
(in thousands)
	Issuer			Guarantors			Non-Guarantors			Eliminations		Consolidated
Cash flows provided by (used in) operating activities:	$	47,762		$	10,342		$	691		$	—	$	58,795
Cash flows from investing activities:
Purchases of property and equipment	(14,624		)	(7,639		)	(530		)	—		(22,793		)
Development of internal use software	—			(1,129		)	—			—		(1,129		)
Proceeds from sale of property and equipment	105			—			—			—		105
Cash flows provided by (used in) investing activities	(14,519		)	(8,768		)	(530		)	—		(23,817		)
Cash flows from financing activities:
Repayments on senior term loan	(1,900		)	—			—			—		(1,900		)
Repayments on note payable	—			(13		)	—			—		(13		)
Payments on capital lease obligations	(104		)	—			(2		)	—		(106		)
Payments on sale leaseback transactions	(570		)	—			—			—		(570		)
Return of capital	1,447			—			—			—		1,447
Cash flows provided by (used in) financing activities	(1,127		)	(13		)	(2		)	—		(1,142		)
Effect of foreign exchange rate changes on cash	—			—			67			—		67
Change in cash and cash equivalents	32,116			1,561			226			—		33,903
Cash and cash equivalents at beginning of period	53,088			1,158			6,777			—		61,023
Cash and cash equivalents at end of period	$	85,204		$	2,719		$	7,003		$	—	$	94,926

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Three Months Ended April 3, 2016
(in thousands)
	Issuer				Guarantors				Non-Guarantors				Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	40,445			$	3,662			$	(335	)		$	—		$	43,772
Cash flows from investing activities:
Purchases of property and equipment	(18,342		)		(451		)		(30		)		—			(18,823		)
Development of internal use software	(841		)		(2,784		)		—				—			(3,625		)
Proceeds from the sale of property an equipment	79				—				—				—			79
Cash flows provided by (used in) investing activities	(19,104		)	—	(3,235		)	—	(30		)	—	—		—	(22,369		)
Cash flows from financing activities:
Repayments on senior term loan	(1,900		)		—				—				—			(1,900		)
Repayments on note payable	—				(7		)		—				—			(7		)
Payments on capital lease obligations	(100		)		—				(1		)		—			(101		)
Payments on sale leaseback transactions	(474		)		—				—				—			(474		)
Excess tax benefit realized from stock-based compensation	4				—				—				—			4
Cash flows provided by (used in) financing activities	(2,470		)	—	(7		)	—	(1		)	—	—		—	(2,478		)
Effect of foreign exchange rate changes on cash	—				—				419				—			419
Change in cash and cash equivalents	18,871			—	420			—	53			—	—		—	19,344
Cash and cash equivalents at beginning of period	42,235				1,797				6,622				—			50,654
Cash and cash equivalents at end of period	$	61,106			$	2,217			$	6,675			$	—		$	69,998