Goodwill |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | Goodwill The Company is required to review goodwill for impairment annually or more frequently when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year and has determined its reporting unit to be its operating segment, Pollo Tropical. There were no changes in goodwill or goodwill impairment losses recorded for the Pollo Tropical reporting unit during the years ended January 2, 2022, January 3, 2021 and December 29, 2019. As of June 30, 2019 and September 29, 2019, the Company determined that triggering events had occurred due to sustained decreases in the market price of the Company's common stock. In response to the triggering events, the Company performed quantitative impairment tests for the Pollo Tropical reporting unit. Based on the impairment test analyses, the fair value of the Pollo Tropical reporting unit substantially exceeded its carrying amount. In 2019, the Company early adopted ASU 2017-04, which eliminates Step 2 from the goodwill impairment test and requires recognition of an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, limited to the carrying value of the reporting unit's goodwill. The Company's annual goodwill impairment assessments as of January 2, 2022, January 3, 2021 and December 29, 2019 were performed using a qualitative assessment, which included examining key events and circumstances affecting fair value and indicated that it is more likely than not that the Pollo Tropical reporting unit's fair value is greater than its carrying value. A summary of changes in goodwill during the years ended January 2, 2022, January 3, 2021 and December 29, 2019 is as follows:
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