GOODWILL AND INTANGIBLES

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The amount of goodwill is primarily attributable to the allocations of the purchase price from the acquisition of Traeger Pellet Grills Holdings LLC on September 25, 2017 (the "Transaction") and the acquisition of Apption Labs on July 1, 2021. Changes in the carrying amount of goodwill during the fiscal years ended December 31, 2023 and 2022, is as follows (in thousands):


	December 31,
	2023		2022
Goodwill, beginning of period	$	74,725	$	297,047
Goodwill impairment	—		(222,322)
Goodwill, end of period	$	74,725	$	74,725

The Company conducts annual goodwill impairment tests in the fourth quarter of each fiscal year or whenever an indicator of impairment exist. For the annual impairment tests conducted in the fourth quarters of 2023 and 2022, the Company performed qualitative assessments of goodwill and determined that it was more likely than not that the fair value of goodwill was greater than its carrying value, therefore the quantitative impairment test was not performed and no impairment of goodwill was recorded in connection with the annual impairment tests.

During the second and third quarters of fiscal year 2022, the Company experienced a sustained decrease in its publicly quoted share price, market capitalization and lower than expected operating results. As such, the Company conducted an impairment analysis of its goodwill and long-lived assets. and concluded there were no events or changes in circumstances which indicated that the carrying value of its long-lived assets may not be recoverable. However, the Company did identify indicators of goodwill impairment for the single reporting unit and concluded that a triggering event had occurred which required an interim goodwill impairment assessment. As a result of the interim quantitative impairment assessments, the goodwill carrying value of the single reporting unit exceeded its fair value, and the Company recorded $222.3 million of non-cash goodwill impairment charge during the fiscal year ended December 31, 2022.

Intangible assets consisted of the following at the dates indicated below (dollars in thousands):


	December 31, 2023
	Weighted Average Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	17	$	378,394	$	(139,463)	$	238,930
Trademark	24	281,700		(70,601)		211,099
Technology	5	36,300		(19,731)		16,569
Distributor relationships	8	2,400		(750)		1,650
Non-compete arrangements	2.5	700		(700)		—
Favorable lease position	8	51		(42)		9
Other intangible assets	11	2,920		(632)		2,288
Total		$	702,464	$	(231,919)	$	470,546


	December 31, 2022
	Weighted Average Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	17	$	378,394	$	(116,857)	$	261,537
Trademark	24	281,700		(58,271)		223,429
Technology	5	36,300		(12,700)		23,600
Distributor relationships	8	2,400		(450)		1,950
Non-compete arrangements	2.5	700		(420)		280
Favorable lease position	8	51		(35)		16
Other intangible assets	11	2,519		(473)		2,046
Total		$	702,064	$	(189,206)	$	512,858

The preponderance of the customer relationships and trademark were pushed down from the purchase accounting in the Transaction (as defined above) in 2017.

Estimated annual amortization expense for the next five years and thereafter for the years ending December 31, (in thousands):


2024	$	42,305
2025	41,863
2026	38,604
2027	35,356
2028	35,356
Thereafter	276,150
Total	$	469,634

Amortization expense related to intangible assets recorded in cost of revenue was $7.2 million, $7.2 million and $4.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Amortization expense related to intangible assets recorded in amortization of intangible assets was $35.6 million, $35.6 million and $34.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.