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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 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 September 30, 2022 and December 31, 2021, is as follows (in thousands):
| Nine months ended September 30, 2022 |  | Year ended December 31, 2021
Goodwill - gross carrying amount | $ | 1,251,996 |  |  | $ | 939,828 |
Accumulated impairment losses | (57,745) |  |  | (57,745) |
Goodwill - net carrying amount | $ | 1,194,251 |  |  | $ | 882,083 |
The following is a reconciliation of the change in the carrying value of goodwill for the nine months ended September 30, 2022 by operating segment (in thousands):
|  | Balance at January 1, 2022 |  | Acquisitions/Measurement Period Adjustments |  |  |  |  |  |  |  | Balance at September 30, 2022
5.11 |  | $ | 92,966 |  |  | $ | — |  |  |  |  |  |  |  |  | $ | 92,966 |
BOA |  | 254,153 |  |  | — |  |  |  |  |  |  |  |  | 254,153 |
Ergobaby |  | 61,448 |  |  | — |  |  |  |  |  |  |  |  | 61,448 |
Lugano |  | 83,458 |  |  | 2,879 |  |  |  |  |  |  |  |  | 86,337 |
Marucci |  | 107,855 |  |  | (33,204) |  |  |  |  |  |  |  |  | 74,651 |
PrimaLoft |  | — |  |  | 335,296 |  |  |  |  |  |  |  |  | 335,296 |
Velocity Outdoor |  | 30,079 |  |  | 6,911 |  |  |  |  |  |  |  |  | 36,990 |
Advanced Circuits |  | 58,029 |  |  | — |  |  |  |  |  |  |  |  | 58,029 |
Altor |  | 90,843 |  |  | 286 |  |  |  |  |  |  |  |  | 91,129 |
Arnold |  | 39,267 |  |  | — |  |  |  |  |  |  |  |  | 39,267 |
Sterno |  | 55,336 |  |  | — |  |  |  |  |  |  |  |  | 55,336 |
Corporate (1) |  | 8,649 |  |  | — |  |  |  |  |  |  |  |  | 8,649 |
Total |  | $ | 882,083 |  |  | $ | 312,168 |  |  |  |  |  |  |  |  | $ | 1,194,251 |
(1) Represents goodwill resulting from purchase accounting adjustments not "pushed down" to the ACI segment. This amount is allocated back to the ACI segment for purposes of goodwill impairment testing. 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 September 30, 2022 and December 31, 2021 (in thousands):
| September 30, 2022 |  | December 31, 2021
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Customer relationships | $ | 779,271 |  |  | $ | (253,488) |  |  | $ | 525,783 |  |  | $ | 595,673 |  |  | $ | (218,066) |  |  | $ | 377,607 |
Technology and patents | 189,430 |  |  | (51,229) |  |  | 138,201 |  |  | 156,129 |  |  | (42,035) |  |  | 114,094 |
Trade names, subject to amortization | 483,937 |  |  | (111,917) |  |  | 372,020 |  |  | 411,880 |  |  | (90,196) |  |  | 321,684 |
Non-compete agreements | 4,962 |  |  | (4,084) |  |  | 878 |  |  | 4,942 |  |  | (3,827) |  |  | 1,115 |
Other contractual intangible assets | 3,013 |  |  | (1,340) |  |  | 1,673 |  |  | 1,960 |  |  | (735) |  |  | 1,225 |
Total | 1,460,613 |  |  | (422,058) |  |  | 1,038,555 |  |  | 1,170,584 |  |  | (354,859) |  |  | 815,725 |
Trade names, not subject to amortization | 56,965 |  |  | — |  |  | 56,965 |  |  | 56,965 |  |  | — |  |  | 56,965 |
In-process research and development (1) | 500 |  |  | — |  |  | 500 |  |  | — |  |  | — |  |  | — |
Total intangibles, net | $ | 1,518,078 |  |  | $ | (422,058) |  |  | $ | 1,096,020 |  |  | $ | 1,227,549 |  |  | $ | (354,859) |  |  | $ | 872,690 |
(1) In-process research and development is considered indefinite lived until the underlying technology becomes viable, at which point the intangible asset will be amortized over the expected useful life. Amortization expense related to intangible assets was $25.2 million and $67.2 million for the three and nine months ended September 30, 2022, respectively and $19.1 million and $56.5 million for the three and nine months ended September 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):
2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  |  |
$ | 25,179 |  |  | $ | 100,226 |  |  | $ | 98,607 |  |  | $ | 93,282 |  |  | $ | 86,929 |  |  |  |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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