| GOODWILL AND INTANGIBLE ASSETS |
NOTE 6. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following table summarizes the balances in goodwill by segment:
|
|
|
|
|
|
|
|
|
|
Outdoor |
|
Adventure |
|
Total |
|
|
|
|
|
|
|
|
|
Goodwill |
$ |
29,507 |
|
$ |
91,375 |
|
$ |
120,882 |
Accumulated goodwill impairments |
|
(29,507) |
|
|
(52,071) |
|
|
(81,578) |
|
|
|
|
|
|
|
|
|
Balance at December 31, 2023 |
$ |
- |
|
$ |
39,320 |
|
$ |
39,320 |
|
|
|
|
|
|
|
|
|
Impact of foreign currency exchange rates |
|
- |
|
|
312 |
|
|
312 |
|
|
|
|
|
|
|
|
|
Balance at September 30, 2024 |
$ |
- |
|
$ |
39,632 |
|
$ |
39,632 |
No impairments were recorded for goodwill or intangible assets during the nine months ended September 30, 2024. However, factors such as a sustained decline in revenues and cash flows, or other adverse changes in macroeconomic conditions, including our current and future share price, could result in an impairment charge to our Adventure reporting unit in a future reporting period. The Company performs its annual impairment assessment during the fourth quarter of 2024.
Indefinite-Lived Intangible Assets
The following table summarizes the changes in indefinite-lived intangible assets:
|
|
|
Balance at December 31, 2023 |
$ |
58,527 |
|
|
|
Impact of foreign currency exchange rates |
|
513 |
|
|
|
Balance at September 30, 2024 |
$ |
59,040 |
Trademarks classified as indefinite-lived intangible assets by brand as of September 30, 2024 and December 31, 2023, were as follows:
|
|
|
|
|
|
|
September 30, 2024 |
|
December 31, 2023 |
Black Diamond |
$ |
19,600 |
|
$ |
19,600 |
PIEPS |
|
3,115 |
|
|
3,080 |
Rhino-Rack |
|
26,110 |
|
|
25,767 |
MAXTRAX |
|
10,215 |
|
|
10,080 |
|
$ |
59,040 |
|
$ |
58,527 |
Other Intangible Assets, net
The following table summarizes the changes in gross other intangible assets:
|
|
|
Gross balance at December 31, 2023 |
$ |
82,103 |
|
|
|
Disposal of fully amortized other intangible assets |
|
(163) |
Impact of foreign currency exchange rates |
|
821 |
|
|
|
Gross balance at September 30, 2024 |
$ |
82,761 |
Other intangible assets, net of amortization as of September 30, 2024 and December 31, 2023, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2024 |
|
Gross |
|
Accumulated Amortization |
|
Net |
|
Weighted Average Useful Life |
Intangibles subject to amortization |
|
|
|
|
|
|
|
|
|
|
|
Customer relationships |
$ |
61,786 |
|
$ |
(36,161) |
|
$ |
25,625 |
|
|
13.8 years |
Product technologies |
|
18,229 |
|
|
(11,132) |
|
|
7,097 |
|
|
10.0 years |
Tradenames |
|
1,799 |
|
|
(155) |
|
|
1,644 |
|
|
12.0 years |
Core technologies |
|
947 |
|
|
(947) |
|
|
- |
|
|
10.0 years |
|
$ |
82,761 |
|
$ |
(48,395) |
|
$ |
34,366 |
|
|
12.9 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
Gross |
|
Accumulated Amortization |
|
Net |
|
Weighted Average Useful Life |
|
|
|
|
|
|
|
|
|
|
|
|
Customer relationships |
$ |
61,215 |
|
$ |
(30,478) |
|
$ |
30,737 |
|
|
13.8 years |
Product technologies |
|
18,003 |
|
|
(9,014) |
|
|
8,989 |
|
|
10.0 years |
Tradenames |
|
1,938 |
|
|
(198) |
|
|
1,740 |
|
|
11.4 years |
Core technologies |
|
947 |
|
|
(947) |
|
|
- |
|
|
10.0 years |
|
$ |
82,103 |
|
$ |
(40,637) |
|
$ |
41,466 |
|
|
12.9 years |
Amortization expense for continuing operations for the three months ended September 30, 2024 and 2023, was $2,416 and $2,553, respectively, and for the nine months ended September 30, 2024 and 2023 was $7,316 and $8,035, respectively. Future amortization expense for other intangible assets as of September 30, 2024 is as follows:
|
|
|
|
Years Ending December 31, |
|
Amortization Expense |
2024 (excluding the nine months ended September 30, 2024) |
|
$ |
2,475 |
2025 |
|
|
8,413 |
2026 |
|
|
6,583 |
2027 |
|
|
4,806 |
2028 |
|
|
3,538 |
2029 |
|
|
2,655 |
Thereafter |
|
|
5,896 |
|
|
$ |
34,366 |
|