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Goodwill And Intangible Assets
 12 Months Ended
Sep. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill And Intangible Assets GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill during fiscal 2024 and 2023 were as follows (in thousands):
Jack in the BoxDel TacoTotal
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)
Goodwill136,027 193,959 329,986 
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)
Goodwill135,827 188,006 323,833 
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.
The net carrying amounts of intangible assets are as follows (in thousands):
September 29,
2024		October 1,
2023
Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Definite-lived intangible assets:
Sublease assets$2,671 $(620)$2,051 $2,671 $(381)$2,290 
Franchise contracts9,700 (1,389)8,311 9,700 (850)8,850 
Reacquired franchise rights464 (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 
The following table summarizes, as of September 29, 2024, the estimated amortization expense for each of the next five fiscal years (in thousands):
2025$796 
2026794 
2027807 
2028752 
2029 and thereafter7,366 
Total $10,515