Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the fifty-two weeks ended December 31, 2019 are as follows (in thousands):



	Goodwill
Balance as of January 1, 2019	$	321,531
Acquisition of franchise-operated restaurants	4,302
Sale of company-operated restaurants to franchisees	(83		)
Goodwill reclassified to held for sale	(14,761		)
Impairment of goodwill	(118,250		)
Balance as of December 31, 2019	$	192,739

The decrease in goodwill was due primarily to an impairment of $118.3 million as described in more detail below and the reclassification of goodwill to held for sale of $14.8 million related to the Company's refranchising plans during the fifty-two weeks ended December 31, 2019 as described in more detail in Note 5.

During the fourth quarter of fiscal 2019, the Company experienced a sustained decline in its stock price, which is an indicator of impairment. As such, the Company performed a quantitative goodwill impairment assessment using both the discounted cash flow method and guideline public company method to determine the fair value of its reporting unit. Significant assumptions and estimates used in determining fair value include future revenues, operating costs, working capital changes, capital expenditures, a discount rate that approximates the Company’s weighted average cost of capital and a selection of comparable companies. Based on the quantitative assessment, the Company determined that the fair value of its reporting unit was less than its carrying value. As the Company early adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, during the fourth quarter of fiscal 2019, it recognized a goodwill impairment charge of $118.3 million, equal to the excess of the reporting unit’s carrying value above fair value. The impairment charge was recorded in impairment of goodwill on the consolidated statements of comprehensive (loss) income.

The carrying value of trademarks was $220.3 million at both December 31, 2019 and January 1, 2019.

The Company’s other intangible assets at December 31, 2019 and January 1, 2019 consisted of the following (in thousands):



	December 31, 2019							January 1, 2019
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Favorable lease assets	$	—	$	—		$	—	$	13,118	$	(5,542	)	$	7,576
Sublease assets	1,340		(82		)	1,258		—		—			—
Franchise rights	14,298		(5,465		)	8,833		15,032		(4,411		)	10,621
Reacquired franchise rights	943		(207		)	736		417		(107		)	310
Total amortized other intangible assets	$	16,581	$	(5,754	)	$	10,827	$	28,567	$	(10,060	)	$	18,507

Favorable lease assets are related to below-market leasing arrangements. In connection with the adoption of Topic 842, the Company reclassified $7.6 million of favorable lease assets, net to operating lease right-of-use assets (see Notes 2 and 15 for more information) as of January 2, 2019.

During the fifty-two weeks ended December 31, 2019, the Company recorded $1.2 million of sublease assets in connection with the sale of company-operated restaurants (see Note 5 for more information).

During the fifty-two weeks ended December 31, 2019, the Company wrote-off $0.1 million of franchise rights associated with the closure of three franchise operated restaurants, and the Company reclassified $0.5 million of franchise rights as reacquired franchise rights from the acquisition of four franchise locations. During the fifty-two weeks ended January 1, 2019, the Company wrote-off $0.1 million of franchise rights associated with the closure of one franchise operated restaurant, $0.1 million of franchise rights associated with six franchise locations were fully amortized and the Company reclassified $24,000 of franchise rights as reacquired franchise rights from the acquisition of one franchise location.

Sublease assets are amortized using the straight-line method over the remaining life of the sublease. The weighted-average amortization period as of December 31, 2019 for sublease assets was 14.3 years. Franchise rights are amortized using the straight-line method over the remaining life of the franchise agreements or 40 years, whichever is less. The weighted-average amortization period as of December 31, 2019 for franchise rights was 12.9 years. Reacquired franchise rights are amortized using the straight-line method over the remaining life of the former franchise agreement. The weighted-average amortization period as of December 31, 2019 for reacquired franchise rights was 9.8 years.

Amortization expense for amortizable intangible assets and other assets totaled $2.8 million, $3.1 million and $3.3 million for the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. Amortization for sublease assets totaled $82,000, $12,000 and $5,000 for the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. Amortization expense for franchise rights totaled $1.3 million, $1.4 million and $1.3 million for the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. Amortization expense for reacquired franchise rights totaled $101,000, $58,000 and $40,000 for the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. The estimated future amortization for sublease assets, franchise rights and reacquired franchise rights for the next five fiscal years is as follows (in thousands):



	Sublease Assets		Franchise Rights		Reacquired Franchise Rights
2020	$	95	$	1,137	$	105
2021	95		1,027		101
2022	95		930		78
2023	92		845		67
2024	92		770		66