Assets and Liabilities Held for Sale

6 Months Ended

Jun. 30, 2019

Assets and Liabilities Held for Sale

Assets and Liabilities Held for Sale

10. Assets and Liabilities Held for Sale

The Company has an approved plan to refranchise approximately 40 stores and certain owned properties in the United States. We expect to sell these stores within the next 12 months and have classified the assets and liabilities as held for sale within the Condensed Consolidated Balance Sheet. Upon the reclassification of these assets to held for sale, no loss was recognized as their fair value exceeded their carrying value. The following summarizes the associated assets and liabilities that are classified as held for sale (in thousands):

	Held for Sale
	June 30, 2019
Cash and cash equivalents	$	26
Inventories		258
Property and equipment, net		4,980
Right-of-use assets		4,015
Goodwill		1,726
Total assets held for sale	$	11,005
Lease liabilities	$	4,199
Total liabilities held for sale (a)	$	4,199

(

(a) Liabilities held for sale are included under the caption “Accrued expenses and other current liabilities”.

The Company-owned restaurants classified as held for sale recorded income before income taxes of $612,000 and $742,000 for the three months ended June 30, 2019 and July 1, 2018, respectively, and $1.2 million for both the six months ended June 30, 2019 and July 1, 2018. All stores were included in the Domestic Company-owned restaurants segment.