GOODWILL AND INTANGIBLES

12 Months Ended

Jun. 27, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of Goodwill are as follows (in thousands):



	June 27, 2018								June 28, 2017
	Chili’s			Maggiano’s		Consolidated			Chili’s			Maggiano’s		Consolidated
Balance at beginning of year	$	125,556		$	38,397	$	163,953		$	125,610		$	38,397	$	164,007
Changes in goodwill:
Additions	—			—		—			—			—		—
Foreign currency translation adjustment	(145		)	—		(145		)	(54		)	—		(54		)
Balance at end of year	$	125,411		$	38,397	$	163,808		$	125,556		$	38,397	$	163,953

Intangible assets, net are as follows (in thousands):



	June 27, 2018							June 28, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets
Chili’s reacquired franchise rights⁽¹⁾	$	13,611	$	(4,438	)	$	9,173	$	16,170	$	(4,175	)	$	11,995
Chili’s other	5,567		(1,215		)	4,352		5,985		(1,070		)	4,915
	$	19,178	$	(5,653	)	$	13,525	$	22,155	$	(5,245	)	$	16,910

Indefinite-lived intangible assets
Chili’s liquor licenses	$	9,520						$	9,670
Maggiano’s liquor licenses	932							932
	$	10,452						$	10,602

⁽¹⁾

The gross carrying amount and accumulated amortization include the impact of foreign currency translation on existing balances of $0.1 million and $0.1 million for fiscal 2018 and 2017, respectively. We also recorded an impairment charge of $1.5 million and $0.8 million in Other gains and charges in the Consolidated Statements of Comprehensive Income in fiscal 2018 and fiscal 2017, respectively. See Note 3 - Other Gains and Charges and Note 9 - Fair Value Disclosures and for additional disclosures.

Amortization expense for all definite-lived intangible assets was $1.3 million, $1.4 million and $1.5 million in the fiscal years ended June 27, 2018, June 28, 2017, and June 29, 2016, respectively, recorded in in Depreciation and amortization in the Consolidated Statements of Comprehensive Income. Annual amortization expense for definite-lived intangible assets will approximate $1.1 million for each of the next five fiscal years. There have been no impairments of Goodwill.

- 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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