Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 37

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 37
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 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 (1,389)8,311 Reacquired franchise rights629 (324)305 464 (311)153 $13,000 $(2,932)$10,068 $12,835 $(2,320)$10,515 The following table summarizes, as of July 6, 2025, the estimated amortization expense for each of the next five fiscal years and thereafter (in thousands):Remainder of 2025$184 2026797 2027812 2028761 2029699 Thereafter6,815 $10,068 

6.LEASES

Nature of leases — The Company owns restaurant sites and also leases restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees