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Goodwill And Intangible Assets | 12 Months Ended
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Dec. 31, 2022
Goodwill And Intangible Assets [Abstract] |
Goodwill And Intangible Assets | NOTE 5. GOODWILL AND INTANGIBLE ASSETS Goodwill The following table summarizes the changes in goodwill by segment:
| Outdoor |  | Precision Sport |  | Adventure |  | Total
Goodwill | $ | 29,507 |  | $ | 26,715 |  | $ | - |  | $ | 56,222
Accumulated goodwill impairment losses |  | (29,507) |  |  | - |  |  | - |  |  | (29,507)
Balance at December 31, 2020 |  | - |  |  | 26,715 |  |  | - |  |  | 26,715
Increase due to acquisitions of Rhino-Rack and MAXTRAX |  | - |  |  | - |  |  | 92,805 |  |  | 92,805
Impact of foreign currency exchange rates |  | - |  |  | - |  |  | (1,430) |  |  | (1,430)
Balance at December 31, 2021 |  | - |  |  | 26,715 |  |  | 91,375 |  |  | 118,090
Decrease due to impairment |  | - |  |  | - |  |  | (52,071) |  |  | (52,071)
Acquisition adjustment |  | - |  |  | - |  |  | 741 |  |  | 741
Impact of foreign currency exchange rates |  | - |  |  | - |  |  | (3,767) |  |  | (3,767)
Balance at December 31, 2022 | $ | - |  | $ | 26,715 |  | $ | 36,278 |  | $ | 62,993
Due to a weakening global economy, driven by higher inflation and interest rates, and other factors affecting the market for our Adventure reporting unit products, we experienced significant declining revenue and profitability in our Adventure reporting unit and a decline in stock price during the year ended December 31, 2022. Revenues continued to decline unexpectedly during the three months ended December 31, 2022, due to a lack of product demand in what is typically the highest selling season for the product in Australia, in addition to a continued increase in interest rates. As a result, we reduced our sales forecasts for 2023 and beyond in our Adventure reporting unit. As part of our annual impairment test as of December 31, 2022, we performed a quantitative assessment using income-based and market-based approaches. As a result of this assessment, the carrying value of our Adventure reporting unit exceeded the related estimated fair value, thus an impairment of goodwill of $52,071 was recorded. Indefinite-Lived Intangible Assets The following table summarizes the changes in indefinite-lived intangible assets:
Balance at December 31, 2021 | $ | 128,271
Decrease due to impairment of Rhino-Rack trademark |  | (40,240)
Impact of foreign currency exchange rates |  | (5,130)
Balance at December 31, 2022 | $ | 82,901
As part of our annual impairment test as of December 31, 2022, we performed a quantitative assessment using the relief-from-royalty method. As described above, we reduced our sales forecasts for 2023 and beyond in our Adventure reporting unit. As a result of this assessment, the carrying value of the Rhino-Rack trademark recorded within our Adventure reporting unit exceeded the estimated related fair value, thus an impairment of the Rhino-Rack trademark of $40,240 was recorded. If we do not achieve the results reflected in the forecasts utilized in our impairment assessments, or if there are changes to market assumptions, all of which require significant estimates and assumptions, our valuation of the reporting unit, including related indefinite-lived intangible assets, could be adversely affected, and we may be required to impair an additional portion or all of the related goodwill, indefinite-lived intangibles, and other long-lived assets which could adversely affect our operating results in the period of impairment. Trademarks classified as indefinite-lived intangible assets by brand as of December 31, 2022 and 2021, were as follows:
| December 31, 2022 |  | December 31, 2021
Black Diamond | $ | 19,600 |  | $ | 19,600
PIEPS |  | 2,986 |  |  | 3,166
Sierra |  | 18,900 |  |  | 18,900
Barnes |  | 5,600 |  |  | 5,600
Rhino-Rack |  | 25,744 |  |  | 70,278
MAXTRAX |  | 10,071 |  |  | 10,727
| $ | 82,901 |  | $ | 128,271
Other Intangible Assets, net The following table summarizes the changes in gross other intangible assets:
Gross balance at December 31, 2021 | $ | 104,681
Impact of foreign currency exchange rates |  | (3,792)
Gross balance at December 31, 2022 | $ | 100,889
Other intangible assets, net of amortization as of December 31, 2022 and 2021, were as follows:
| December 31, 2022
| Gross |  | Accumulated Amortization |  | Net |  | Weighted Average Useful Life
Intangibles subject to amortization |  |  |  |  |  |  |  |  |  |  |
Customer relationships | $ | 77,370 |  | $ | (34,653) |  | $ | 42,717 |  |  | 13.8 years
Product technologies |  | 21,309 |  |  | (9,207) |  |  | 12,102 |  |  | 10.2 years
Tradename / trademark |  | 1,263 |  |  | (827) |  |  | 436 |  |  | 9.4 years
Core technologies |  | 947 |  |  | (947) |  |  | - |  |  | 10.0 years
| $ | 100,889 |  | $ | (45,634) |  | $ | 55,255 |  |  | 13.0 years
| December 31, 2021
| Gross |  | Accumulated Amortization |  | Net |  | Weighted Average Useful Life
Customer relationships | $ | 80,078 |  | $ | (23,804) |  | $ | 56,274 |  |  | 13.8 years
Product technologies |  | 22,393 |  |  | (5,557) |  |  | 16,836 |  |  | 10.2 years
Tradename / trademark |  | 1,263 |  |  | (690) |  |  | 573 |  |  | 9.4 years
Core technologies |  | 947 |  |  | (947) |  |  | - |  |  | 10.0 years
| $ | 104,681 |  | $ | (30,998) |  | $ | 73,683 |  |  | 12.9 years
Amortization expense for the years ended December 31, 2022, 2021, and 2020, was $15,326, $9,834, and $4,070, respectively. Future amortization expense for other intangible assets as of December 31, 2022 is as follows:
Years Ending December 31, | Amortization Expense
2023 | $ | 12,798
2024 |  | 10,770
2025 |  | 8,715
2026 |  | 6,689
2027 |  | 4,884
Thereafter |  | 11,399
| $ | 55,255

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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 http://asc.fasb.org/topic&trid=2144416 + Details
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