GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Balances for our goodwill and intangible assets as of December 31 were as follows:

($ in millions)	2023		2022
Goodwill, gross	$	242.5	$	239.7
Accumulated impairment	(241.7)		(218.6)
Goodwill, net	$	0.8	$	21.1
Intangible assets
Franchise rights (indefinite life)(1)	$	199.7	$	236.7
Other intangible assets (definite-lived)	23.8		23.8
	223.5		260.5
Less: accumulated amortization - other intangible assets	21.0		13.1
Intangible assets, net	$	202.5	$	247.4

(1) Attributed to the Company’s powersports reporting unit. Amount is net of accumulated impairment of $142.7 million in 2023 and $105.7 million in 2022.    

The following is a summary of the changes in the carrying amount of goodwill by reporting unit over the past two years:

($ in millions)	Powersports		Vehicle Transportation Services		Total
December 31, 2021	$	234.0	$	0.8	$	234.8
Purchase accounting adjustments for prior year acquisitions	(26.8)		—		(26.8)
Acquisition of Freedom Powersports	29.1		—		29.1
Other immaterial acquisitions	2.6		—		2.6
Impairment	(218.6)		—		(218.6)
December 31, 2022	20.3		0.8		21.1
Other immaterial acquisition	2.6		—		2.6
Purchase accounting adjustments for prior year acquisitions	0.2		—		0.2
Impairment	(23.1)		—		(23.1)
December 31, 2023	$	—	$	0.8	$	0.8

Annual Impairment Test

The Company elected to bypass the optional qualitative test and performed a quantitative impairment review as of October 1, 2023. The Company determined the carrying amount of the powersports reporting unit exceeded its fair value and recognized a $37.0 million non-cash franchise rights impairment charge and a $23.1 million non-cash goodwill impairment charge in the fourth quarter of 2023. The fair value of the vehicle transportation services reporting unit exceeded its carrying value and no impairment was recognized.

In 2022, we performed our impairment review as of October 1, 2022 that we further updated as of December 31, 2022, because we determined that certain factors in the fourth quarter had triggered an indicator of impairment. The aggregate results of our assessments in 2022 resulted in (i) noncash goodwill impairment charges of $26.0 million in the automotive reporting unit presented in discontinued operations and $218.6 million in the powersports reporting unit and (ii) a noncash franchise rights impairment charge of $105.7 million in the powersports reporting unit.

Our definite-lived intangible assets primarily related to non-compete agreements as of December 31, 2023. No triggering events or impairment of non-compete agreements were noted as of December 31, 2023.

Estimated remaining annual amortization expense related to other intangible assets ($ in millions):

2024	$	2.7
2025	0.1
2026	—
2027	—
Thereafter	—
	$	2.8