XML 28 R20.htm IDEA: XBRL DOCUMENT
v3.25.1

Goodwill and Other Intangibles, Net | 3 Months Ended
--- | ---
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangibles, Net | 11. Goodwill and Other Intangibles, Net The Company has intangible assets of substantial value on its consolidated balance sheet. These intangible assets are generally related to intangible assets with a useful life, indefinite-lived trade names and goodwill. The Company determines whether an intangible asset (other than goodwill) has a useful life based on multiple factors, including how long the Company intends to generate cash flows from the asset. These intangible assets are more fully explained in the following sections. Intangible Assets With a Useful Life The following table provides information related to the carrying value of intangible assets with a useful life:
| March 31, 2025 |  |  |  |  | December 31, 2024 |
| Gross |  |  |  |  |  |  |  |  | Amortization |  | Gross |  |  |  |  |  |  |  |  |  |
| Carrying |  |  | Accumulated |  |  |  |  |  | Period |  | Carrying |  |  | Accumulated |  |  |  |  |  |  |
| Amount |  |  | Amortization |  |  | Net |  |  | (Years) |  | Amount |  |  | Amortization |  |  | Impairments(1) |  |  | Net |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade Names | $ | 1,383.9 |  |  | $ | (499.4 | ) |  | $ | 884.5 |  |  | 3-20 |  | $ | 1,383.4 |  |  | $ | (479.6 | ) |  | $ | 0.0 |  |  | $ | 903.8 |
Customer Relationships |  | 566.1 |  |  |  | (345.7 | ) |  |  | 220.4 |  |  | 15-20 |  |  | 644.9 |  |  |  | (402.1 | ) |  |  | (15.8 | ) |  |  | 227.0 |
Patents/Formulas |  | 205.6 |  |  |  | (130.2 | ) |  |  | 75.4 |  |  | 4-20 |  |  | 205.5 |  |  |  | (127.2 | ) |  |  | 0.0 |  |  |  | 78.3 |
Total | $ | 2,155.6 |  |  | $ | (975.3 | ) |  | $ | 1,180.3 |  |  |  |  | $ | 2,233.8 |  |  | $ | (1,008.9 | ) |  | $ | (15.8 | ) |  | $ | 1,209.1 |
(1) The $15.8 impairment charge relates to the VMS customer relationship intangible asset, which had a gross value of $79.2 and accumulated amortization of $63.4 prior to full impairment. Intangible amortization expense was $29.3 and $30.8 for t he first quarter of 2025 and 2024, respectively. The Company estimates that intangible amortization expense will be approximately $116.0 in 2025 and approximately $97.0 declining to $84.0 annually over the next five years. Indefinite-Lived Intangible Assets The following table presents the carrying value of indefinite lived intangible assets:
| March 31, |  |  | December 31, |
| 2025 |  |  | 2024 |
Gross Carrying Value Trade Names | $ | 1,679.7 |  |  | $ | 1,960.7 |
VMS impairment |  | 0.0 |  |  |  | 281.3 |
Net Carrying Value Trade Names | $ | 1,679.7 |  |  | $ | 1,679.4 |
The Company’s indefinite lived intangible impairment review is completed in the fourth quarter of each year. Fair value of indefinite-lived trade names was estimated based on a “relief from royalty” or “excess earnings” discounted cash flow method, which contains numerous variables that are subject to change as business conditions change, and therefore could impact fair values in the future. The key assumptions used in determining fair value are sales growth, profitability margins, tax rates, discount rates and royalty rates. The Company determined that the fair value of all indefinite-lived trade names for each of the years in the three-year period ended December 31, 2024 exceeded their respective carrying values based upon the forecasted cash flows and profitability, with the exception of the Vitamins, Minerals and Supplements ("VMS") business described below. During the third quarter of 2024, the Company continued to experience a decline in market share and a deterioration in the financial performance of its VMS business, which includes the VITAFUSION® and L'IL CRITTERS® trade name, primarily due to significant product competition coming from new category entrants, including private label. The continued decline in profitability caused management to reassess its long-term strategy and financial outlook of the business. The revised financial outlook reflects lower estimates of future sales growth and cash flows which resulted in a triggering event in the third quarter. The triggering event required the Company to review the carrying value of assets supporting the business. The assets supporting the VMS business include the VITAFUSION® and L'IL CRITTERS® indefinite-lived trade name, a definite-lived customer relationship intangible asset and PP&E specific to the VMS business. The Company used an excess earnings discounted cash flow model to determine the fair value of the trade name. The assumptions used in the model require significant judgment in determining the expected future cash flows. The key assumptions utilized in the Company's impairment analysis included, but were not limited to, net sales growth rates between -15.2% and 2.1%, EBITA margins in the low single digits, and a discount rate of 8.25%. Estimates are based on market conditions and management’s current expectation of the success of growth and profitability initiatives. The valuation resulted in a full impairment of the $281.3 trade name. Accordingly, the remaining carry value of the trade name at December 31, 2024 is $0.0. The Company also evaluated its ability to recover the carrying value of long-lived assets supporting the VMS business by comparing the carrying amount of those assets to the future undiscounted cash flows over the estimated life of the identified primary asset. The result of this evaluation was that the cash flows would not be sufficient to recover the carrying value of the assets requiring the Company to compare the carrying value of those assets to their fair value. The Company used an excess earnings discounted cash flow model to determine the estimated fair value of the long-lived assets. The key assumptions utilized in the Company's impairment analysis were the same as those used to estimate the fair value of the trade name. The valuation resulted in a fair value of the long-lived assets that is below their carry value requiring a pre-tax impairment charge of $75.8. The impairment charge was allocated $60.0 to the PP&E of the VMS business and $15.8 to the remaining customer relationship intangible asset. The remaining carrying values of the PP&E and the customer relationship intangible asset specific to the VMS business at March 31, 2025 are $144.6 and $0.0, respectively. A summary of the VMS intangible and fixed asset impairment charges recorded in the third quarter of 2024 are as follows:
| December 31, |
| 2024 |
Trade Name | $ | 281.3 |
Customer Relationship Intangible Asset |  | 15.8 |
PP&E |  | 60.0 |
Total VMS impairment charges | $ | 357.1 |
The Company’s global WATERPIK® business has continued to experience a significant decline in customer demand for many of its products, primarily due to lower consumer spending for discretionary products from inflation and a growing number of water flosser consumers switching to more value-branded products. As a result, the WATERPIK® business has experienced declining sales and profits resulting in a reduction in expected future cash flows which have eroded a substantial portion of the excess between the fair and carrying value of the trade name. This indefinite-lived intangible asset may be susceptible to impairment and a continued decline in fair value could trigger a future impairment charge of the WATERPIK® trade name. The carrying value of the WATERPIK® trade name was $644.7 and fair value represented 135% of the carrying value as of October 1, 2024 (the date of the Company's last annual impairment test). The key assumptions used in the projections from the Company’s October 1, 2024 impairment analysis include a discount rate of 8.1%, revenue growth rates between 2% and 7% and EBITA margins between 25% and 29%. These assumptions were based on current market conditions as of the date of the impairment analysis, recent trends and management’s expectation of the success of initiatives to lower costs and to develop lower-cost water flosser alternatives. While management has implemented strategies to address the risk, significant changes in operating plans, adverse changes in the global macro-economic environment or in global government policy decisions (including tariffs) could reduce the underlying cash flows used to estimate fair value which may result in an impairment. Goodwill The carrying amount of goodwill is as follows:
| Consumer |  |  | Consumer |  |  | Specialty |  |  |  |
| Domestic |  |  | International |  |  | Products |  |  | Total |
Balance at December 31, 2024 | $ | 2,061.1 |  |  | $ | 237.2 |  |  | $ | 134.9 |  |  | $ | 2,433.2 |
Balance at March 31, 2025 | $ | 2,061.1 |  |  | $ | 237.2 |  |  | $ | 134.9 |  |  | $ | 2,433.2 |
The Company tests goodwill for each reporting unit which are also the Company's reportable segments. The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2024, determined that the estimated fair value substantially exceeded the carrying values of all reporting units. The determination of fair value contains numerous variables that are subject to change as business conditions change and therefore could impact fair value in the future.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration