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Goodwill and Other Intangible Assets
 6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure
Note G — Goodwill and Other Intangible Assets
As a result of acquisitions of various businesses, the Company has significant intangible assets on its balance sheet that include goodwill and indefinite-lived intangibles. The Company’s goodwill and indefinite-lived intangibles are tested and reviewed for impairment annually as of March 31st or more frequently if facts and circumstances warrant by comparing the fair value of each reporting unit to its carrying value. Each of the Company’s businesses represent a reporting unit.
Goodwill
2022 Annual Impairment Testing
The Company uses a qualitative approach to test goodwill for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform quantitative goodwill impairment testing. The results of the qualitative analysis indicated that it was more-likely-than-not that the fair value of each of our reporting units exceeded their carrying value.
2021 Annual Impairment Testing
The Company uses a qualitative approach to test goodwill for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform quantitative goodwill impairment testing. We determined that the Arnold reporting unit required additional quantitative testing because we could not conclude that the fair value of the reporting unit exceeded its carrying value based on qualitative factors alone. For the reporting units that were tested only on a qualitative basis for the 2021 annual impairment testing, the results of the qualitative analysis indicated that it is more likely than not that the fair value exceeded the carrying value of these reporting units.
The quantitative test of Arnold was performed using an income approach to determine the fair value of the reporting unit. The discount rate used in the income approach was 13.0% and the results of the quantitative impairment testing indicated that the fair value of the Arnold reporting unit exceeded the carrying value by 272%.
A summary of the net carrying value of goodwill at June 30, 2022 and December 31, 2021, is as follows (in thousands):
Six months ended June 30, 2022Year ended 
 December 31, 2021
Goodwill - gross carrying amount$846,658 $873,150 
Accumulated impairment losses(57,745)(57,745)
Goodwill - net carrying amount$788,913 $815,405 
The following is a reconciliation of the change in the carrying value of goodwill for the six months ended June 30, 2022 by operating segment (in thousands):
Balance at January 1, 2022Acquisitions/Measurement Period AdjustmentsBalance at June 30, 2022
5.11$92,966 $— $92,966 
BOA254,153 — 254,153 
Ergobaby61,448 — 61,448 
Lugano83,458 2,879 86,337 
Marucci107,855 (29,657)78,198 
Velocity Outdoor30,079 — 30,079 
Altor90,843 286 91,129 
Arnold 39,267 — 39,267 
Sterno55,336 — 55,336 
Total$815,405 $(26,492)$788,913 
Long lived assets
Annual indefinite lived impairment testing
The Company used a qualitative approach to test indefinite lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of an indefinite lived intangible asset is impaired as a basis for determining whether it is necessary to perform quantitative impairment testing. The Company evaluated the qualitative factors of each indefinite lived intangible asset in connection with the annual impairment testing for 2022 and 2021. Results of the qualitative analysis indicate that it is more likely than not that the fair value of the reporting units that maintain indefinite lived intangible assets exceeded the carrying value.
Other intangible assets are comprised of the following at June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022December 31, 2021
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Customer relationships$576,203 $(211,350)$364,853 $566,805 $(180,581)$386,224 
Technology and patents158,696 (44,741)113,955 153,124 (49,898)103,226 
Trade names, subject to amortization425,432 (103,064)322,368 411,100 (87,178)323,922 
Non-compete agreements4,637 (3,696)941 4,617 (3,502)1,115 
Other contractual intangible assets2,243 (1,064)1,179 1,960 (735)1,225 
Total1,167,211 (363,915)803,296 1,137,606 (321,894)815,712 
Trade names, not subject to amortization56,965 — 56,965 56,965 — 56,965 
Total intangibles, net$1,224,176 $(363,915)$860,261 $1,194,571 $(321,894)$872,677 
Amortization expense related to intangible assets was $20.9 million and $42.0 million for the three and six months ended June 30, 2022, respectively and $18.8 million and $37.4 million for the three and six months ended June 30, 2021, respectively.
Estimated charges to amortization expense of intangible assets for the remainder of 2022 and the next four years, is as follows (in thousands):
20222023202420252026
$41,745 $82,979 $81,386 $76,049 $69,682