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Intangible Assets, Net and Goodwill | 9 Months Ended
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Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] |
NOTE 6 — INTANGIBLE ASSETS, NET AND GOODWILL
Indefinite-lived intangible assets (which consists of trade names and trademarks) (collectively, "trade names") and goodwill reporting units are tested for impairment annually or when events or changes in circumstances indicate that it is more likely than not that the fair value of the asset is less than its carrying amount (a "triggering event"). During the three months ended September 30, 2025, declines in forecasted revenues and gross margins, primarily as a result of impacts from incremental tariffs and a difficult macroeconomic environment, led to triggering events for the prAna and Mountain Hardwear trade names and goodwill reporting units. As a result, the Company performed interim quantitative impairment tests where the Company compared the estimated fair values of the prAna and Mountain Hardwear trade names and goodwill reporting units to their carrying values. The fair values of the prAna and Mountain Hardwear trade names were estimated using a relief-from-royalty method under the income approach. The key assumptions used in the relief-from-royalty method were the Company's estimates of projected revenues, royalty rate, and discount rate, taking into consideration market and industry conditions. In the Company's interim quantitative impairment test of the prAna trade name, the fair value of the prAna trade name was less than its carrying value of $51.8 million and, therefore, an impairment charge of $8.0 million was recorded. In the Company's interim quantitative impairment test of the Mountain Hardwear trade name, the fair value of the Mountain Hardwear trade name exceeded its carrying value and, therefore, no impairment was recorded. There was no triggering event or impairment charge recorded for trade names during the three and nine months ended September 30, 2024. The fair values of the prAna and Mountain Hardwear goodwill reporting units were estimated using a combination of discounted cash flow and market-based valuation methods. The key assumptions used in the discounted cash flow method were cash flow projections and the discount rate. Cash flow projections were developed, in part, from the Company's annual and long-range planning processes. The discount rate was the estimated weighted-average cost of capital of each reporting unit from a market-participant perspective. The key assumptions used in the market-based valuation method were market multiples for guideline public companies. In the Company's interim quantitative impairment test of the prAna reporting unit, the fair value of the prAna reporting unit was less than its carrying value and, therefore, an impairment charge of $8.8 million was recorded. In the Company's interim quantitative impairment test of the Mountain Hardwear reporting unit, the fair value of the Mountain Hardwear reporting unit was less than its carrying value and, therefore, an impairment charge of $12.2 million was recorded. There was no triggering event or impairment charge recorded for goodwill during the three and nine months ended September 30, 2024. INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following:
|  | As of
(in thousands) |  | September 30, 2025 |  | December 31, 2024 |  | September 30, 2024
Intangible assets with definite lives: |  |  |  |  |  |
Patents and purchased technology |  | $ | 14,198 |  |  | $ | 14,198 |  |  | $ | 14,198 |
Customer relationships |  | 23,000 |  |  | 23,000 |  |  | 23,000 |
Gross carrying amount |  | 37,198 |  |  | 37,198 |  |  | 37,198 |
Accumulated amortization: |  |  |  |  |  |
Patents and purchased technology |  | (14,198) |  |  | (14,198) |  |  | (14,198) |
Customer relationships |  | (23,000) |  |  | (23,000) |  |  | (23,000) |
Accumulated amortization |  | (37,198) |  |  | (37,198) |  |  | (37,198) |
Net carrying amount |  | — |  |  | — |  |  | — |
Intangible assets with indefinite lives |  | 71,221 |  |  | 79,221 |  |  | 79,221 |
Intangible assets, net |  | $ | 71,221 |  |  | $ | 79,221 |  |  | $ | 79,221 |
Intangible assets subject to amortization were fully amortized for three months ended September 30, 2025 and September 30, 2024, and for the nine months ended September 30, 2025. For the nine months ended September 30, 2024, amortization expense for intangible assets subject to amortization was $0.7 million. GOODWILL Substantially all of the Company's goodwill is recorded in the U.S. segment. The following table sets forth the changes in Goodwill.
(in thousands) |  |
Balance as of September 30, 2024 |  |
Goodwill |  | $ | 73,208 |
Accumulated impairment losses |  | (46,514) |
Carrying value |  | 26,694 |
Impairment losses during 2024 |  | — |
Balance as of December 31, 2024 |  |
Goodwill |  | 73,208 |
Accumulated impairment losses |  | (46,514) |
Carrying value |  | 26,694 |
Impairment losses during 2025 |  | (21,000) |
Balance as of September 30, 2025 |  |
Goodwill |  | 73,208 |
Accumulated impairment losses |  | (67,514) |
Carrying value |  | $ | 5,694 |

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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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