Refranchisings and Acquisitions

Refranchisings

During the years ended December 26, 2018, December 27, 2017 and December 28, 2016 we sold eight, four and six restaurants to franchisees and recognized related losses of $0.7 million and $0.3 million and a gain of $0.6 million, respectively. The 2018 sales were part of the refranchising and development strategy announced during the fourth quarter of 2018. Gains (losses) on the sale of company owned restaurants are included as a component of operating (gains), losses and other charges, net. See Note 9.

As of December 26, 2018, we have recorded assets held for sale at their carrying amount of $0.7 million related to three company owned restaurants and one piece of real estate. There were no assets held for sale as of December 27, 2017. The fair value of assets held for sale is based upon Level 2 inputs, which include sales agreements.

Acquisitions

We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on Level 3 fair value estimates. The following table summarizes our acquisition activity.



	December 26, 2018		December 27, 2017		December 28, 2016
	(Dollars in thousands)
Restaurants acquired from franchisees ⁽¹⁾	6		11		10

Purchase price allocation:
Reacquired franchise rights	$	5,434	$	4,476	$	9,544
Property	1,121		1,293		2,277
Goodwill	1,574		3,022		1,827
Intangibles	—		—		40
Total purchase price	$	8,129	$	8,791	$	13,688

Capital leases recorded	$	2,409	$	2,321	$	3,441


(1)	2017 includes one restaurant acquired from a former franchisee.