Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Intangible Assets, Net (Excluding Goodwill) [Abstract]

The significant majority of the Company's other intangible assets arose from the November 29, 2007 acquisition of Applebee's. Changes in the carrying amount of intangible assets for the years ended December 31, 2020, 2019 and 2018 are as follows:


	Not Subject to Amortization		Subject to Amortization
	Tradename		Other		Franchising Rights		Reacquired Franchise Rights		Favorable Leaseholds		Total
	(In millions)
Balance at December 31, 2017	$	479.0	$	2.4	$	99.0	$	—	$	2.3	$	582.8

Amortization expense	—		—		(10.0)		(0.1)		—		(10.1)
Additions	—		0.3		—		11.6		1.3		13.2
Balance at December 31, 2018	479.0		2.7		89.0		11.5		3.6		585.9

Amortization expense	—		—		(10.0)		(1.7)		(0.1)		(11.7)
Additions	—		0.5		—		—		0.5		1.0
Balance at December 31, 2019	479.0		3.2		79.0		9.8		4.1		575.1
Impairment	(11.0)		—		—		(3.3)		(0.8)		(15.1)
Amortization expense	—		—		(10.0)		(0.8)		(0.1)		(10.9)
Additions	—		0.6		—		—		—		0.6
Balance at December 31, 2020	$	468.0	$	3.8	$	69.0	$	5.7	$	3.2	$	549.7

In December 2018, the Company acquired 69 Applebee's restaurants. In its allocation of the purchase price, the Company recorded $11.6 million of reacquired franchise rights as an intangible asset. Other additions to favorable leaseholds and other intangibles for the years ended December 31, 2020, 2019 and 2018 are individually insignificant.

As discussed in Note 6 - Goodwill, the Company determined that indicators of impairment existed prior to the annual test for impairment and performed an interim quantitative test for impairment of Applebee's tradename and reacquired franchise rights in the second quarter of 2020. In performing the impairment test of the tradename, the Company used the relief of royalty method under the income approach method of valuation. Significant assumptions used to determine fair value under the relief of royalty method include future trends in sales, a royalty rate and a discount rate applied to the forecast revenue stream. As a result of performing the quantitative test of impairment, the Company recognized an impairment of $11.0 million to Applebee's tradename. The majority of the impairment was due to an increase in the assessed risk premium incorporated into the discount rate assumption. In addition, the Company determined that the carrying amounts of reacquired franchise rights and favorable leaseholds exceeded the estimated fair value by $3.3 million and $0.8 million, respectively, and recorded impairments to those intangible assets.

Annual amortization expense for the next five fiscal years is estimated to be approximately $10.7 million per year. The weighted average life of the intangible assets subject to amortization was 19.9 years and 18.5 years at December 31, 2020 and 2019, respectively.

Gross and net carrying amounts of intangible assets subject to amortization at December 31, 2020 and 2019 are as follows:


	December 31, 2020						December 31, 2019
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(In millions)
Franchising rights	$	200.0	$	(131.0)	$	69.0	$	200.0	$	(121.0)	$	79.0
Reacquired franchise rights	8.3		(2.6)		5.7		11.6		(1.8)		9.8
Favorable leaseholds	3.4		(0.2)		3.2		$	4.2	$	(0.1)	4.1
Total	$	211.7	$	(133.7)	$	78.0	$	215.8	$	(122.9)	$	92.9

In the fourth quarter of fiscal 2020 and 2019, the Company performed a qualitative assessment of the Applebee's tradename and concluded the fair value exceeded the carrying amount.