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Goodwill and Intangibles
 12 Months Ended
Dec. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles

17. GOODWILL AND INTANGIBLES

The following tables summarize the changes in the Company’s intangible assets as of December 31, 2021 and December 31, 2022 (in thousands):

 

 

 

December 31, 2020

 

 

For the Year-Ended December 31, 2021

 

 

December 31, 2021

 

 

 

Gross Carrying Amount

 

 

Additions

 

 

Impairments

 

 

Net Book Value

 

Goodwill

 

$

47,318

 

 

$

72,623

 

 

$

—

 

 

$

119,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

For the Year-Ended December 31, 2022

 

 

December 31, 2022

 

 

 

Gross Carrying Amount

 

 

Additions

 

 

Impairments

 

 

Net Book Value

 

Goodwill

 

$

119,941

 

 

$

468

 

 

 

(120,409

)

 

$

—

 

(1) The Company evaluated current economic conditions during 2022, including the impact of the Federal Reserve further increasing the risk-free interest rate, as well as the inflationary pressure on product and labor costs and operational impacts attributable to continued global supply chain disruptions. The Company believes that these conditions were factors in our market capitalization falling below the book value of net assets during the fiscal quarters ending March 31, 2022 and September 30, 2022. Accordingly, the Company concluded a triggering event had occurred in each of these periods and performed interim goodwill impairment analyses. As a result, the Company recorded a goodwill impairment charge of approximately $29.0 million and $90.9 during the three months ended March 31, 2022 and September 30, 2022, respectively. There was no remaining goodwill on the balance sheet as of September 30, 2022.

On October 4, 2022, the Company acquired Step and Go, a brand in the health and Wellness category, for $0.7 million. As part of the purchase price allocation of the acquisition, $0.5 million was attributed to goodwill. As our market capitalization was further reduced below net assets as of December 31, 2022, we concluded a triggering event has occurred to test goodwill, an impairment loss on goodwill of $0.5 million was recorded for the three months ended December 31, 2022, which is included in impairment loss on goodwill in the Consolidated Statement of Operations for the year-ended December 31, 2022.

The total goodwill impairment charge was approximately $120.4 million for the year-ended December 31, 2022.

The following tables summarize the changes in the Company’s intangible assets as of December 31, 2021 and December 31, 2022 (in thousands):

 

 

 

January 1, 2021

 

 

Year-Ended December 31, 2021

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Gross Carrying Amount

 

 

Additions

 

 

Impairments (1)

 

 

Accumulated Amortization

 

 

Net Book Value

 

Trademarks

 

$

31,810

 

 

$

34,100

 

 

$

—

 

 

$

(6,332

)

 

$

59,578

 

Non-competition agreement

 

 

111

 

 

 

—

 

 

 

—

 

 

 

(54

)

 

 

57

 

Transition services agreement

 

 

23

 

 

 

—

 

 

 

—

 

 

 

(23

)

 

 

—

 

Customer relations

 

 

—

 

 

 

5,700

 

 

 

—

 

 

 

(380

)

 

 

5,320

 

Other

 

 

—

 

 

 

700

 

 

 

—

 

 

 

(700

)

 

 

—

 

Total intangibles

 

$

31,944

 

 

$

40,500

 

 

$

—

 

 

$

(7,489

)

 

$

64,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2022

 

 

Year-Ended December 31, 2022

 

 

December 31, 2022

 

 

December 31, 2022

 

 

 

Gross Carrying Amount

 

 

Additions

 

 

Impairments (1)

 

 

Accumulated Amortization

 

 

Net Book Value

 

Trademarks

 

$

65,910

 

 

 

192

 

 

$

(3,087

)

 

$

(13,008

)

 

$

50,007

 

Non-competition agreement

 

 

111

 

 

 

—

 

 

 

(31

)

 

 

(80

)

 

 

—

 

Transition services agreement

 

 

23

 

 

 

—

 

 

 

—

 

 

 

(23

)

 

 

—

 

Customer relations

 

 

5,700

 

 

 

—

 

 

 

—

 

 

 

(950

)

 

 

4,750

 

Other

 

 

700

 

 

 

—

 

 

 

—

 

 

 

(700

)

 

 

—

 

Total intangibles

 

$

72,444

 

 

$

192

 

 

$

(3,118

)

 

$

(14,761

)

 

$

54,757

 

 

(1) Certain asset groups experienced a significant decrease in sales and contribution margin through September 30, 2022. This was considered an interim triggering event for the three months ended September 30, 2022. Based on the analysis of comparing the undiscounted cash flow to the carrying value of the asset group, one group tested indicated that the assets may not be recoverable. For this asset group, the Company compared the fair value to the carrying amount of the asset group and recorded an intangible impairment charge of $3.1 million. The Company did not have a triggering event during the three months ended December 31, 2022. For the year-ended December 31, 2022, the total impairment charge for intangibles was $3.1 million.

 

The following table sets forth the estimated aggregate amortization of our in-place intangible assets and favorable intangible assets for the next five years and thereafter (amounts in thousands):

 

2023

 

$

6,821

 

2024

 

 

6,801

 

2025

 

 

6,759

 

2026

 

 

6,759

 

Thereafter

 

 

27,617

 

Total

 

$

54,757