
	Jack in the Box		Del Taco		Total
Goodwill	$	136,099	$	230,722	$	366,821
Accumulated impairment losses	—		—		—
Balance at October 2, 2022	136,099		230,722		366,821

Sale of Del Taco company-operated restaurants to franchisees	—		(35,472)		(35,472)
Sale of Jack in the Box company-operated restaurants to franchisees	(72)		—		(72)
Reclassified to assets held for sale	—		(1,291)		(1,291)

Goodwill	136,027		193,959		329,986
Accumulated impairment losses	—		—		—
Balance at October 1, 2023	136,027		193,959		329,986

Impairment of goodwill	—		(162,624)		(162,624)
Sale of Del Taco company-operated restaurants to franchisees	—		(5,544)		(5,544)

Reclassified to assets held for sale	(200)		(409)		(609)

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

As of the June 9, 2024 testing date, the balance of the Del Taco reporting unit goodwill was $194.0 million. During the third quarter of 2024, the Company identified triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be impaired. The triggering events related to i) a recent negative trend in Del Taco same store sales, ii) lower margins due in part to lower sales and wage increases required in California effective April 1, 2024 under AB 1228 and iii) unfavorable changes in the economic environment specifically impacting our industry, including inflation and interest rates. 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. The Company determined that there was no such triggering event for the Jack in the Box reporting unit during 2024.

In performing a quantitative test for impairment of goodwill for Del Taco, we primarily use the income approach method of valuation that includes the discounted cash flow method and the market approach that includes the guideline public company method to determine the fair value of the reporting unit. Significant assumptions made by management to estimate fair value under the discounted cash flow method include future cash flow assumptions. The Company also performed a quantitative analysis over its indefinite-lived intangible trademark asset, as well as over its definite-lived intangible assets to determine whether any impairment would need to be recognized, noting none.

In connection with the goodwill impairment test, the Company also performed a quantitative analysis over its long-lived assets, noting impairment of $0.1 million, which was recorded in the third quarter of 2024.


	September 29, 2024						October 1, 2023
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Definite-lived intangible assets:
Sublease assets	$	2,671	$	(620)	$	2,051	$	2,671	$	(381)	$	2,290
Franchise contracts	9,700		(1,389)		8,311		9,700		(850)		8,850
Reacquired franchise rights	464		(311)		153		297		(107)		190
	$	12,835	$	(2,320)	$	10,515	$	12,668	$	(1,338)	$	11,330
Indefinite-lived intangible assets:
Del Taco trademark	$	283,500	$	—	$	283,500	$	283,500	$	—	$	283,500
	$	283,500	$	—	$	283,500	$	283,500	$	—	$	283,500