Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 71

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 8
Chunk 71
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Restaurants acquired from Del Taco franchisees9 Purchase price (1)$(86)Closing and acquisition costs(43)Property and equipment3,612 Intangible assets167 Operating lease right-of-use assets3,211 Operating lease liabilities(4,505)Gain on the acquisition of franchise-operated restaurants$2,357 ____________________________(1)Comprised of outstanding receivables from franchisee forgiven upon acquisition.

10

JACK IN THE BOX INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3).

5.GOODWILL AND INTANGIBLE ASSETS, NET

The changes in the carrying amount of goodwill during year-to-date period ended January 19, 2025 was as follows (in thousands):Jack in the BoxDel TacoTotal Goodwill$135,827 $188,006 $323,833 Accumulated impairment losses— (162,624)(162,624)Balance at September 29, 2024135,827 $25,382 $161,209 Reclassified from (to) assets held for sale187 (52)135 Goodwill136,014 187,954 323,968 Accumulated impairment losses— (162,624)(162,624)Balance at January 19, 2025$136,014 $25,330 $161,344 During the third quarter of 2024, the Company had identified triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be impaired. As a result, the Company performed a quantitative test over the Del Taco reporting unit, noting that the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of goodwill of $162.6 million at that time. The Company determined that there was no such triggering event for the Jack in the Box reporting unit.The net carrying amounts of intangible assets other than goodwill with definite lives are as follows (in thousands):January 19,2025September 29,2024Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet AmountDefinite-lived intangible assets:Sublease assets$2,671 $(694)$