Goodwill and Indefinite-Lived Intangibles (Notes)

9 Months Ended

Sep. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Indefinite-Lived Intangibles

GOODWILL AND INDEFINITE-LIVED INTANGIBLES

The changes in the carrying amount of goodwill are as follows:

	Year-To-Date Ended
(In millions)	September 28, 2024		September 30, 2023
Goodwill balance at beginning of the year	$	427.1	$	485.0
Sale of business (see Note 18)	—		(20.4)
Foreign currency translation effects	3.4		0.8
Goodwill balance at end of the quarter	$	430.5	$	465.4

Goodwill balances are net of accumulated impairment charges. Accumulated impairment charges were $48.4 million as of September 28, 2024 and September 30, 2023, and are related to the Sweaty Betty® reporting unit, which is part of the Active segment.

The Company’s indefinite-lived intangible assets, which comprise trade names and trademarks, totaled $179.3 million, $174.1 million, and $237.0 million as of September 28, 2024, December 30, 2023, and September 30, 2023, respectively. The Company conducted an interim impairment assessment as of September 28, 2024 and determined that there were no triggering events indicating impairment of the Company’s goodwill and indefinite-lived intangible assets.

Following the fiscal 2023 annual impairment test, the Company concluded that the estimated fair value of the Sweaty Betty® reporting unit exceeded its carrying value by 5%. The key assumptions used in the valuation were revenue growth, EBITDA margin, and the discount rate. Although the Company believes the estimates and assumptions used in the valuation were appropriate, it is possible that assumptions could change in future periods. The risk of future impairment to the Sweaty Betty® trade name and Sweaty Betty® goodwill depend on key assumptions used in the determination of the trade name's and reporting unit's fair value, such as revenue growth, earnings before interest, taxes, depreciation and amortization margin, discount rate, and assumed tax rate, or if macroeconomic conditions deteriorate and adversely affect the values of the Company's Sweaty Betty® trade name and the Sweaty Betty® reporting unit. A future impairment charge of the Sweaty Betty® trade name and the Sweaty Betty® reporting unit goodwill could have an adverse material effect on the Company's consolidated financial results. The carrying values of the Company’s Sweaty Betty® trade name indefinite-lived intangible asset and the Sweaty Betty® reporting unit goodwill were $104.7 million and $55.8 million, respectively, as of September 28, 2024.