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Goodwill and Other Intangibles, Net | 9 Months Ended
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Sep. 30, 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 condensed 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. Indefinite-Lived Intangible Assets The following table presents the carrying value of indefinite-lived intangible assets:
| September 30, |  |  | December 31, |
| 2025 |  |  | 2024 |
Gross Carrying Value Trade Names | $ | 1,680.6 |  |  | $ | 1,960.7 |
VMS impairment |  | 0.0 |  |  |  | (281.3 | )
Spinbrush impairment |  | (7.9 | ) |  |  | 0.0 |
Trade Names | $ | 1,672.7 |  |  | $ | 1,679.4 |
The Company’s indefinite-lived intangible impairment review is completed in the fourth quarter of each year. Fair value for indefinite-lived intangible assets 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. On May 1, 2025, the Company announced it was exiting the Flawless, Spinbrush and Waterpik showerhead businesses which we intend to complete by early 2026. These businesses generated approximately $170 million of Net Sales in 2024. We recorded a pre-tax charge of $51.0 in the second quarter of 2025 as a direct result of these decisions, of which $30.4 was recorded in Cost of sales and $20.6 was recorded in SG&A. The charge was primarily recorded in the Consumer Domestic segment and was comprised of non-cash charges related to impairments of intangible and fixed assets, as well as inventory reserves. 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 (customer relationships and PP&E) 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 a t September 30, 2025 were $142.8 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. Waterpik's profitability has also been impacted by tariffs imposed on its products imported into the United States. In May 2025 the Company announced that it was exiting the WATERPIK® showerheads business. As a result of these factors, the WATERPIK® business has experienced a significant decline in 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 is $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 as well as improvement in the supply chain including a reduction in tariff exposure. While management has implemented strategies to address the risk, significant changes in operating plans, adverse changes in consumer behavior or 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. Intangible Assets With a Useful Life The following table provides information related to the carrying value of intangible assets with a useful life:
| September 30, 2025 |  |  |  | December 31, 2024 |
| Gross |  |  |  |  |  |  |  |  |  |  | Amortization |  | Gross |  |  |  |  |  |  |  |  |  |
| Carrying |  |  | Accumulated |  |  | Impairment |  |  |  |  | Period |  | Carrying |  |  | Accumulated |  |  | Impairment |  |  |  |
| Amount |  |  | Amortization |  |  | Charges(2) |  |  | Net |  | (Years) |  | Amount |  |  | Amortization |  |  | Charges(1) |  |  | Net |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade Names | $ | 2,113.3 |  |  | $ | (537.4 | ) |  | $ | (11.6 | ) |  | $ | 1,564.3 |  | 3-20 |  | $ | 1,383.4 |  |  | $ | (479.6 | ) |  | $ | 0.0 |  |  | $ | 903.8 |
Customer Relationships |  | 599.0 |  |  |  | (358.8 | ) |  |  | (0.7 | ) |  |  | 239.5 |  | 15-20 |  |  | 644.9 |  |  |  | (402.1 | ) |  |  | (15.8 | ) |  |  | 227.0 |
Patents/Formulas |  | 205.6 |  |  |  | (136.2 | ) |  |  | 0.0 |  |  |  | 69.4 |  | 4-20 |  |  | 205.5 |  |  |  | (127.2 | ) |  |  | 0.0 |  |  |  | 78.3 |
Total | $ | 2,917.9 |  |  | $ | (1,032.4 | ) |  | $ | (12.3 | ) |  | $ | 1,873.2 |  |  |  | $ | 2,233.8 |  |  | $ | (1,008.9 | ) |  | $ | (15.8 | ) |  | $ | 1,209.1 |
(1) The $15.8 impairment charge (as discussed above) 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. (2) The $12.3 impairment charge relates to the Flawless trade name and Spinbrush customer relationship intangible asset, which had a gross value of $76.2 and accumulated amortization of $63.9 prior to full impairment. The impairments were a result of the Company's decision to exit these businesses. Intangible amortization e xpense was $32.7 and $30.7 for the third quarter of 2025 and 2024, re spectively. Intangible amortization expense amoun ted to $86.9 and $92.2 for the first nine months of 2025 and 2024, res pectively. The Company estimates that intangible amortization expense will be approximatel y $121.0 in 2025 and approximately $135.0 declining to $122.0 an nually over the next five years. 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 |
Touchland acquired goodwill |  | 207.4 |  |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 207.4 |
Other |  | 0.4 |  |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.4 |
Balance at September 30, 2025 | $ | 2,268.9 |  |  | $ | 237.2 |  |  | $ | 134.9 |  |  | $ | 2,641.0 |
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 2025, 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.

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- 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
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