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Goodwill and Other Intangible Assets | 12 Months Ended
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Nov. 26, 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 years ended November 26, 2023 and November 27, 2022, were as follows:
| Americas |  | Europe |  | Asia |  | Other Brands(1) |  | Total
| (Dollars in millions)
Balance, November 28, 2021 | $ | 231.4 |  |  | $ | 28.8 |  |  | $ | 3.0 |  |  | $ | 123.7 |  |  | $ | 386.9 |
Goodwill | 231.4 |  |  | 28.8 |  |  | 3.0 |  |  | 123.7 |  |  | 386.9 |
Accumulated impairment losses | — |  |  | — |  |  | — |  |  | — |  |  | — |
| $ | 231.4 |  |  | $ | 28.8 |  |  | $ | 3.0 |  |  | $ | 123.7 |  |  | $ | 386.9 |
Impairment losses | — |  |  | (11.6) |  |  | — |  |  | — |  |  | (11.6) |
Adjustments | — |  |  | — |  |  | — |  |  | (0.1) |  |  | (0.1) |
Foreign currency fluctuation | (1.9) |  |  | (7.5) |  |  | (0.1) |  |  | — |  |  | (9.5) |
Balance, November 27, 2022 |  |  |  |  |  |  |  |  |
Goodwill | 229.5 |  |  | 21.3 |  |  | 2.9 |  |  | 123.6 |  |  | 377.3 |
Accumulated impairment losses | — |  |  | (11.6) |  |  | — |  |  | — |  |  | (11.6) |
| $ | 229.5 |  |  | $ | 9.7 |  |  | $ | 2.9 |  |  | $ | 123.6 |  |  | $ | 365.7 |
Impairment losses | — |  |  | — |  |  | — |  |  | (75.4) |  |  | (75.4) |
Goodwill acquired during the year | 1.1 |  |  | 10.8 |  |  | — |  |  | — |  |  | 11.9 |
Foreign currency fluctuation | 1.1 |  |  | 0.5 |  |  | (0.1) |  |  | — |  |  | 1.5 |
Balance, November 26, 2023 |  |  |  |  |  |  |  |  |
Goodwill | 231.7 |  |  | 32.6 |  |  | 2.8 |  |  | 123.6 |  |  | 390.7 |
Accumulated impairment losses | — |  |  | (11.6) |  |  | — |  |  | (75.4) |  |  | (87.0) |
Balance, November 26, 2023 | $ | 231.7 |  |  | $ | 21.0 |  |  | $ | 2.8 |  |  | $ | 48.2 |  |  | $ | 303.7 |
_____________ (1)Comprised of the Beyond Yoga® reporting unit goodwill only. Other intangible assets, net, were as follows:
| November 26, 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 | 38.3 |  |  | (14.6) |  |  | 23.7 |  |  | 37.9 |  |  | (9.9) |  |  | 28.0 |
Total | $ | 282.2 |  |  | $ | (14.6) |  |  | $ | 267.6 |  |  | $ | 296.6 |  |  | $ | (9.9) |  |  | $ | 286.7 |
_____________ (1)Includes the 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. 2023 Impairment Testing During the fourth quarter of 2023, the Company elected to perform a qualitative assessment for the goodwill in certain of our reporting units and indefinite-lived intangible assets. This qualitative assessment included the review of certain macroeconomic factors and entity-specific qualitative factors to determine if it was more-likely-than-not that the fair values of our reporting units and indefinite-lived intangible assets were below carrying value. The assessments did not determine that it was more-likely-than-not that the fair value of the reporting units and indefinite-lived intangible assets were below their respective carrying values. 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. The significant assumptions used in the assessment of the reporting unit include revenue growth rates, profit margins, operating expenses, capital expenditures, terminal value and a discount rate. 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. The significant assumptions used in the assessment of the trademark intangible asset include revenue growth rates, a discount rate and a royalty rate. Based on this assessment, we recorded a $14.8 million noncash impairment charge related to the Beyond Yoga® trademark. Total impairment charges for the year ended November 26, 2023 were $90.2 million and were recorded within Goodwill and other intangible asset impairment charges on the accompanying consolidated statements of income. 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. 2022 Impairment Testing 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 within Goodwill and other intangible impairment charges on the accompanying consolidated statements of income. For fiscal 2022, the Company elected to perform a qualitative assessment for the goodwill in certain of our reporting units and indefinite-lived intangible assets. This qualitative assessment included the review of certain macroeconomic factors and entity-specific qualitative factors to determine if it was more-likely-than-not that the fair values of our reporting units and indefinite-lived intangible assets were below carrying value. For certain of our reporting units and indefinite-lived intangible assets, including Beyond Yoga®, a quantitative assessment was performed during the third and fourth quarter of 2022. 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 assessments did not determine that it was more-likely-than-not that the fair value of the reporting units and indefinite-lived intangible assets were below their respective carrying values. Amortization Expense Customer relationships and other are amortized over five to eleven years. Amortization expense for the years ended November 26, 2023, November 27, 2022 and November 28, 2021 was $4.4 million, $4.3 million and $1.1 million, respectively. Estimated amortization expense for each of the next five years is as follows:
| November 26, 2023
| (Dollars in millions)
2024 | $ | 4.4 |
2025 | 4.4 |
2026 | 4.0 |
2027 | 2.3 |
2028 | 2.3 |
Thereafter | 6.3 |
Total | $ | 23.7 |

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