GOODWILL AND INTANGIBLE ASSETS, NET
The changes in the carrying amount of goodwill during fiscal 2019 and 2018 were as follows (in thousands):
Balance at October 1, 2017
$
51,412

Sale of company-operated restaurants to franchisees
(4,663
)
Balance at September 30, 2018
46,749

Sale of company-operated restaurants to franchisees
(2
)
Balance at September 29, 2019
$
46,747


Intangible assets, net, consist of the following as of the end of each fiscal year (in thousands):
 
 
2019
 
2018
Gross carrying amount
 
$
6,692

 
$
6,751

Less accumulated amortization
 
(6,267
)
 
(6,151
)
Net carrying amount
 
$
425

 
$
600


Amortized intangible assets include lease acquisition costs and reacquired franchise rights. Total amortization expense related to intangible assets was $0.1 million in fiscal 2019, and $0.2 million in fiscal 2018 and 2017.
The following table summarizes, as of September 29, 2019, the estimated amortization expense for each of the next five fiscal years (in thousands):
2020
$
108

2021
$
95

2022
$
36

2023
$
20

2024
$
17


Historical Timeline

Fiscal YearFiled
2019Nov 21, 2019Showing above
2018Nov 21, 2018
2017Nov 30, 2017
2016Nov 22, 2016
2015Nov 19, 2015

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.