XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.25.3

Goodwill and Other Intangible Assets | 3 Months Ended
--- | ---
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure | Note F — 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 Annual Impairment Testing The Company uses a qualitative approach to test goodwill and 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 a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform quantitative goodwill impairment testing. 2025 Annual Impairment Testing For the Company's annual impairment testing a t March 31, 2025, the Company performed a qualitative assessment of our reporting units with goodwill balances. The results of the qualitative analysis indicated that it was more-likely-than-not that the fair value of each of the reporting units tested except PrimaLoft exceeded their carrying value. Based on our analysis, the Company determined that the PrimaLoft operating segment required quantitative testing because we could not conclude that the fair value of this reporting unit significantly exceeded the carrying value based on qualitative factors alone. The Company performed a quantitative test of PrimaLoft using an income approach and a market approach to determine the fair value of the PrimaLoft reporting unit. The discount rate used in the income approach was 11.3%. The results of the testing indicated that the fair value of PrimaLoft exceeded the carrying value by 12.1%. 2024 Annual Impairment Testing For the Company's annual impairment testing at March 31, 2024, the Company performed a qualitative assessment of our reporting units. The results of the qualitative analysis indicated that it was more-likely-than-not that the fair value of each of our reporting units except Velocity exceeded their carrying value. Based on our analysis, the Company determined that the Velocity operating segment required quantitative testing because we could not conclude that the fair value of this reporting unit significantly exceeded the carrying value based on qualitative factors alone. The Company performed a quantitative test of Velocity and the results of the testing indicated that the fair value of Velocity did not exceed the carrying value, resulting in goodwill impairment expense of $8.2 million as of March 31, 2024. The following is a summary of the net carrying amount of goodwill at March 31, 2025 and December 31, 2024, is as follows (in thousands):
| March 31, 2025 |  | December 31, 2024
|  |  | (As Restated)
Goodwill - gross carrying amount | $ | 1,311,317 |  |  | $ | 1,311,813 |
Accumulated impairment losses (1) | (415,897) |  |  | (415,897) |
Goodwill - net carrying amount | $ | 895,420 |  |  | $ | 895,916 |
(1) Comprised of accumulated goodwill impairment expense of $260.6 million at Lugano (as restated), $72.7 million at Velocity, $24.9 million at Arnold and $57.8 million at PrimaLoft. The following is a reconciliation of the change in the carrying value of goodwill for the three months ended March 31, 2025 by operating segment (in thousands):
|  | Balance at January 1, 2025 |  | Acquisitions/Measurement Period Adjustments |  |  |  |  |  |  |  | Balance at March 31, 2025
|  | (As Restated) |  |  |  |  |  |  |  |  |  |
5.11 |  | $ | 92,966 |  |  | $ | — |  |  |  |  |  |  |  |  | $ | 92,966 |
BOA |  | 254,153 |  |  | — |  |  |  |  |  |  |  |  | 254,153 |
Lugano (as restated) |  | — |  |  | — |  |  |  |  |  |  |  |  | — |
PrimaLoft |  | 232,536 |  |  | — |  |  |  |  |  |  |  |  | 232,536 |
The Honey Pot Co. |  | 107,039 |  |  | — |  |  |  |  |  |  |  |  | 107,039 |
Velocity Outdoor |  | — |  |  | — |  |  |  |  |  |  |  |  | — |
Altor |  | 114,619 |  |  | (496) |  |  |  |  |  |  |  |  | 114,123 |
Arnold |  | 39,267 |  |  | — |  |  |  |  |  |  |  |  | 39,267 |
Sterno |  | 55,336 |  |  | — |  |  |  |  |  |  |  |  | 55,336 |
Total (as restated) |  | $ | 895,916 |  |  | $ | (496) |  |  |  |  |  |  |  |  | $ | 895,420 |
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 the indefinite lived intangible asset in connection with the annual impairment testing for 2025 and 2024. Results of the qualitative analysis indicate that it is more likely than not that the fair value of the reporting unit that maintains an indefinite lived intangible assets exceeded the carrying value. Other intangible assets are comprised of the following at March 31, 2025 and December 31, 2024 (in thousands):
| March 31, 2025 |  | December 31, 2024
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
|  |  |  |  |  |  | (As Restated) |  | (As Restated) |  | (As Restated)
Customer relationships | $ | 772,033 |  |  | $ | (324,351) |  |  | $ | 447,682 |  |  | $ | 772,361 |  |  | $ | (311,357) |  |  | $ | 461,004 |
Technology and patents | 199,329 |  |  | (81,840) |  |  | 117,489 |  |  | 198,865 |  |  | (78,175) |  |  | 120,690 |
Trade names, subject to amortization | 454,244 |  |  | (90,210) |  |  | 364,034 |  |  | 453,792 |  |  | (83,706) |  |  | 370,086 |
Non-compete agreements | 1,588 |  |  | (1,343) |  |  | 245 |  |  | 1,588 |  |  | (1,282) |  |  | 306 |
Other contractual intangible assets | 210 |  |  | (210) |  |  | — |  |  | 210 |  |  | (210) |  |  | — |
Total | 1,427,404 |  |  | (497,954) |  |  | 929,450 |  |  | 1,426,816 |  |  | (474,730) |  |  | 952,086 |
Trade names, not subject to amortization | 30,810 |  |  | — |  |  | 30,810 |  |  | 30,810 |  |  | — |  |  | 30,810 |
In-process research and development (1) | 500 |  |  | — |  |  | 500 |  |  | 500 |  |  | — |  |  | 500 |
Total intangibles, net | $ | 1,458,714 |  |  | $ | (497,954) |  |  | $ | 960,760 |  |  | $ | 1,458,126 |  |  | $ | (474,730) |  |  | $ | 983,396 |
(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 $23.4 million and $23.2 million for the three months ended March 31, 2025 and March 31, 2024, respectively. Estimated charges to amortization expense of intangible assets for the remainder of 2025 and the next four years, is as follows (in thousands):
2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  |  |
$ | 69,640 |  |  | $ | 90,662 |  |  | $ | 81,872 |  |  | $ | 79,770 |  |  | $ | 79,649 |  |  |  |

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://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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration