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GOODWILL AND INTANGIBLE ASSETS, NET | 6 Months Ended
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Apr. 13, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET The changes in the carrying amount of goodwill during the year-to-date period ended April 13, 2025 was as follows (in thousands):
| Jack in the Box |  | Del Taco |  | Total
Goodwill | $ | 135,827 |  |  | $ | 188,006 |  |  | $ | 323,833 |
Accumulated impairment losses | — |  |  | (162,624) |  |  | (162,624) |
Balance at September 29, 2024 | 135,827 |  |  | $ | 25,382 |  |  | $ | 161,209 |
Impairment of goodwill | — |  |  | (25,330) |  |  | (25,330) |
Reclassified from (to) assets held for sale | 199 |  |  | (52) |  |  | 147 |
Goodwill | 136,026 |  |  | 187,954 |  |  | 323,980 |
Accumulated impairment losses | — |  |  | (187,954) |  |  | (187,954) |
Balance at April 13, 2025 | $ | 136,026 |  |  | $ | — |  |  | $ | 136,026 |
During the third quarter of 2024, the Company had previously 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. During the second quarter of 2025, the Company had identified additional triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be further impaired, including i) continued negative trend in Del Taco same store sales, ii) unfavorable changes in the economic environment specifically impacting our industry, including inflation and interest rates, iii) the 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 for the quarter. The Company determined that there was no such triggering event for the Jack in the Box reporting unit. 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 also performed a quantitative analysis over its indefinte-lived intangible trademark asset and as a result, during the second quarter of 2025, the Company also recorded impairment on the Del Taco trademark asset as noted below. The Company also performed a quantitative analysis over its definite-lived intangible assets to determine whether any impairment would need to be recognized, noting none. The Company also performed a quantitative analysis over its long-lived assets, noting impairment of $1.1 million, which was recorded in the second quarter. The changes in the carrying amount of the Del Taco indefinite-lived trademark during the year-to-date period ended April 13, 2025 was as follows (in thousands):
Balance at September 29, 2024 | $ | 283,500 |
Impairment of trademark | (177,900) |
Balance at April 13, 2025 | $ | 105,600 |
The net carrying amounts of definite-lived intangible assets are as follows (in thousands):
| April 13, 2025 |  | September 29, 2024
| Gross Amount |  | Accumulated Amortization |  | Net Amount |  | Gross Amount |  | Accumulated Amortization |  | Net Amount
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Sublease assets | $ | 2,671 |  |  | $ | (750) |  |  | $ | 1,921 |  |  | $ | 2,671 |  |  | $ | (620) |  |  | $ | 2,051 |
Franchise contracts | 9,700 |  |  | (1,679) |  |  | 8,021 |  |  | 9,700 |  |  | (1,389) |  |  | 8,311 |
Reacquired franchise rights | 464 |  |  | (320) |  |  | 144 |  |  | 464 |  |  | (311) |  |  | 153 |
| $ | 12,835 |  |  | $ | (2,749) |  |  | $ | 10,086 |  |  | $ | 12,835 |  |  | $ | (2,320) |  |  | $ | 10,515 |
The following table summarizes, as of April 13, 2025, the estimated amortization expense for each of the next five fiscal years and thereafter (in thousands):
Remainder of 2025 | $ | 367 |
2026 | 794 |
2027 | 807 |
2028 | 753 |
2029 | 692 |
Thereafter | 6,673 |
| $ | 10,086 |

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