Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 86

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 86
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 potential for a divestment of Del Taco, and iv) a sustained lower share price. 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 $25.3 million in the second quarter of 2025. The valuation used a blended approach with a discounted cash flow analysis in conjunction with a market approach. Assumptions and estimates used in determining fair value include future revenues, operating costs, new store openings, capital expenditures, a discount rate that approximates the Company’s weighted average cost of capital and a selection of comparable companies. The Company determined that there was no such triggering event for the Jack in the Box reporting unit.

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

As a result of the franchisee acquisition during the third quarter of 2025, the Company recognized additional goodwill of  $6.3 million. This additional goodwill was fully impaired based on the results of the quantitative impairment analysis performed in the second quarter of 2025.During the second quarter of 2025, the Company also performed a quantitative analysis over its indefinte-lived intangible trademark asset and as a result, the Company recorded impairment of $177.9 million on the Del Taco trademark asset as noted below. During the third quarter of 2025, the Company performed a qualitative analysis over its indefinte-lived intangible trademark asset, noting no further impairment was deemed necessary. The changes in the carrying amount of the Del Taco indefinite-lived trademark during the year-to-date period ended July 6, 2025 was as follows (in thousands):Balance at September 29, 2024$283,500 Impairment of trademark(177,900)Balance at July 6, 2025$105,600 The net carrying amounts of definite-lived intangible assets are as follows (in thousands):July 6,2025September 29,2024Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet AmountDefinite-lived intangible assets:Sublease assets$2,671 $(805)$1,866 $2,671 $(620)$2,051 Franchise contracts9,700 (1,803)7,897 9,700 (1