There have been no impairments of Goodwill for the fiscal years ended June 25, 2025, June 26, 2024 and June 28, 2023. The changes in the carrying amount of Goodwill by segment are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 25, 2025 | | June 26, 2024 |
| Chili’s | | Maggiano’s | | Consolidated | | Chili’s | | Maggiano’s | | Consolidated |
| Balance at beginning of year | $ | 156.4 | | | $ | 38.4 | | | $ | 194.8 | | | $ | 156.6 | | | $ | 38.4 | | | $ | 195.0 | |
| Changes in Goodwill: | | | | | | | | | | | |
| | | | | | | | | | | |
| Foreign currency translation adjustment | (0.1) | | | — | | | (0.1) | | | (0.2) | | | — | | | (0.2) | |
| Balance at end of year | $ | 156.3 | | | $ | 38.4 | | | $ | 194.7 | | | $ | 156.4 | | | $ | 38.4 | | | $ | 194.8 | |
Intangible assets, net are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 25, 2025 | | June 26, 2024 |
| Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| Definite-lived intangible assets | | | | | | | | | | | |
Chili’s reacquired franchise rights | $ | 26.0 | | | $ | (18.6) | | | $ | 7.4 | | | $ | 26.0 | | | $ | (16.2) | | | $ | 9.8 | |
| Chili’s other | 0.4 | | | (0.4) | | | — | | | 0.4 | | | (0.4) | | | — | |
| $ | 26.4 | | | $ | (19.0) | | | $ | 7.4 | | | $ | 26.4 | | | $ | (16.6) | | | $ | 9.8 | |
| | | | | | | | | | | |
| Indefinite-lived intangible assets | | | | | | | | | | | |
| Chili’s liquor licenses | $ | 9.2 | | | | | | | $ | 9.3 | | | | | |
| Maggiano’s liquor licenses | 0.8 | | | | | | | 0.8 | | | | | |
| $ | 10.0 | | | | | | | $ | 10.1 | | | | | |
Amortization expenses for all definite-lived intangible assets were recorded in Depreciation and amortization in the Consolidated Statements of Comprehensive Income as follows:
| | | | | | | | | | | | | | | | | |
| Fiscal Years Ended |
| June 25, 2025 | | June 26, 2024 | | June 28, 2023 |
| Definite-lived intangibles amortization expense | $ | 2.3 | | | $ | 3.0 | | | $ | 3.2 | |
Estimated annual amortization expenses for definite-lived intangible assets for the next five years are as follows:
| | | | | |
| Fiscal Year | Amortization Expense |
| 2026 | $ | 2.1 | |
| 2027 | 1.9 | |
| 2028 | 0.8 | |
| 2029 | 0.5 | |
| 2030 | 0.5 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.