XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.23.3

Goodwill and Other Intangible Assets | 9 Months Ended
--- | ---
Aug. 27, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill by business segment for the nine months ended August 27, 2023 and August 28, 2022 were as follows:
| Nine Months Ended August 27, 2023
| Americas |  | Europe |  | Asia |  | Other Brands(1) |  | Total
| (Dollars in millions)
Balance, November 27, 2022 | $ | 229.5 |  |  | $ | 9.7 |  |  | $ | 2.9 |  |  | $ | 123.6 |  |  | $ | 365.7 |
Additions | 1.1 |  |  | 7.3 |  |  | — |  |  | — |  |  | 8.4 |
Impairments | — |  |  | — |  |  | — |  |  | (75.4) |  |  | (75.4) |
Foreign currency fluctuation | 1.7 |  |  | 0.4 |  |  | (0.1) |  |  | — |  |  | 2.0 |
Balance, August 27, 2023 | $ | 232.3 |  |  | $ | 17.4 |  |  | $ | 2.8 |  |  | $ | 48.2 |  |  | $ | 300.7 |
| Nine Months Ended August 28, 2022
| Americas |  | Europe |  | Asia |  | Other Brands(1) |  | Total
| (Dollars in millions)
Balance, November 28, 2021 | $ | 231.4 |  |  | $ | 28.8 |  |  | $ | 3.0 |  |  | $ | 123.7 |  |  | $ | 386.9 |
Impairments | — |  |  | (11.6) |  |  | — |  |  | — |  |  | (11.6) |
Foreign currency fluctuation | (2.1) |  |  | (7.8) |  |  | (0.1) |  |  | — |  |  | (10.0) |
Balance, August 28, 2022 | $ | 229.3 |  |  | $ | 9.4 |  |  | $ | 2.9 |  |  | $ | 123.7 |  |  | $ | 365.3 |
_____________ (1)Comprises only Beyond Yoga goodwill. During the third quarter of 2023, as part of the Company’s annual review of the Beyond Yoga reporting unit, the Company elected to perform a single step quantitative impairment test on the goodwill and indefinite lived intangible assigned to the Beyond Yoga reporting unit. The Company engaged third-party valuation specialists and used industry accepted valuation models and criteria that were reviewed and approved by various levels of management. The Company assessed the fair value of the Beyond Yoga reporting unit as of the test date, May 29, 2023, using the discounted cash flow method under the income approach, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows. As a result of this assessment, we concluded that the carrying value of the Beyond Yoga reporting unit exceeded the estimated fair value by $75.4 million, which was recorded as a noncash impairment charge to goodwill. Prior to the assessment of the reporting unit, we concluded that the carrying value of the trademark intangible asset exceeded its estimated fair value, which was determined using the relief-from-royalty method to utilize the discounted projected future cash flows. Based on this assessment, we recorded a $14.8 million noncash impairment charge related to the Beyond Yoga trademark. The significant assumptions used in the assessment of the reporting unit include revenue growth rates and profit margins, operating expenses, capital expenditures, terminal value, and a discount rate. The significant assumptions used in the assessment of the carrying value of the trademark intangible asset include revenue growth rate, a discount rate and a royalty rate. Total impairment charges for the three months ended August 27, 2023 were $90.2 million and were recorded within Goodwill and other intangible impairment charges on the accompanying consolidated statements of operations. The impairment is due to incremental investments in the brand and team, and disciplined expansion in response to the current macroeconomic conditions, resulting in an adverse impact on expected cash flows, as well as an increase in discount rates. In the second quarter of 2022, as a result of the Russia-Ukraine crisis, the Company reviewed the goodwill assigned to its Russia business for impairment and recorded $11.6 million of non-cash impairment charges. Other intangible assets, net, were as follows:
| August 27, 2023 |  | November 27, 2022
| Gross Carrying Value |  | Accumulated Amortization |  | Total |  | Gross Carrying Value |  | Accumulated Amortization |  | Total
| (Dollars in millions)
Non-amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |
Trademarks(1) | $ | 243.9 |  |  | $ | — |  |  | $ | 243.9 |  |  | $ | 258.7 |  |  | $ | — |  |  | $ | 258.7 |
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |
Customer relationships and other | 38.5 |  |  | (13.6) |  |  | 24.9 |  |  | 37.9 |  |  | (9.9) |  |  | 28.0 |
Total | $ | 282.4 |  |  | $ | (13.6) |  |  | $ | 268.8 |  |  | $ | 296.6 |  |  | $ | (9.9) |  |  | $ | 286.7 |
_____________ (1)Includes the gross carrying value of the Beyond Yoga trademark of $201.1 million, the Level 3 fair value as of the test date, which reflects the cumulative $14.8 million noncash impairment charge, all of which was taken in the third quarter of 2023. Customer relationships and other are amortized over five to eleven years. Amortization expense for the three and nine months ended August 27, 2023 was $1.1 million and $3.3 million, respectively, as compared to $1.0 million and $3.3 million, respectively, during the same periods of 2022. Estimated amortization expense for each of the next five years is as follows:
| August 27, 2023
| (Dollars in millions)
Remaining for 2023 | $ | 1.1 |
2024 | 4.4 |
2025 | 4.4 |
2026 | 4.1 |
2027 | 2.3 |
Thereafter | 8.6 |
Total | $ | 24.9 |

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://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration