NOTE 6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table summarizes the changes in goodwill by segment:

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Due to challenging market conditions and other factors affecting the demand for our Adventure reporting unit products, we experienced significant declining revenue and profitability in our Adventure reporting unit and a decline in stock price during the year ended December 31, 2024. Revenues continued to decline unexpectedly during the three months ended December 31, 2024, due to a lack of product demand in what is typically the highest selling season for the product in Australia. As a result, in the fourth quarter of 2024, we reduced our sales forecasts for 2025 and beyond in our Adventure reporting unit. As part of our annual impairment test as of December 31, 2024, we performed a quantitative assessment using income-based and market-based approaches. As a result of this assessment, the carrying value of our Adventure reporting unit exceeded the related estimated fair value, thus an impairment of goodwill of $36,264 was recorded.

Indefinite-Lived Intangible Assets

The following table summarizes the changes in indefinite-lived intangible assets:

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As part of our annual impairment test as of December 31, 2024, we performed a quantitative assessment using the relief-from-royalty method. As described above, we reduced our sales forecasts for 2025 and beyond in our Adventure reporting unit. As a result of this assessment, the carrying value of the Rhino-Rack and MAXTRAX trademarks recorded within our Adventure reporting unit exceeded their estimated related fair values, thus impairments of the Rhino-Rack and MAXTRAX trademarks of $3,480 and $5,065, respectively, were recorded.

If we do not achieve the results reflected in the forecasts utilized in our impairment assessments, or if there are changes to market assumptions, all of which require significant estimates and assumptions, our valuation of the reporting unit, including related indefinite-lived intangible assets, could be adversely affected, and we may be required to impair an additional portion or all of the related goodwill, indefinite-lived intangibles, and other long-lived assets which could adversely affect our operating results in the period of impairment.

Trademarks classified as indefinite-lived intangible assets by brand as of December 31, 2024 and 2023, were as follows:

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Other Intangible Assets, net

The following table summarizes the changes in gross other intangible assets:

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Other intangible assets, net of amortization as of December 31, 2024 and 2023, were as follows:

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Amortization expense for continuing operations for the years ended December 31, 2024, 2023, and 2022, was $9,784, $10,715, and $12,557, respectively. Future amortization expense for other intangible assets as of December 31, 2024 is as follows:

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