GOODWILL AND INTANGIBLE ASSETS, NET

9 Months Ended

Oct. 01, 2022

GOODWILL AND INTANGIBLE ASSETS, NET

GOODWILL AND INTANGIBLE ASSETS, NET

5. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

The carrying amount of goodwill as of October 1, 2022 and as of December 31, 2021 was $128.1 million and $128.9 million, respectively. The change in the carrying value during the three fiscal quarters ended October 1, 2022 was due to an increase of $0.4 million as a result of a measurement period adjustment (see Note 3) and fluctuations in foreign currency exchange rates.

Intangible Assets

Intangible assets, net as of October 1, 2022 consisted of the following (in thousands):

	October 1, 2022
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	148,100	$	(578)	$	21,333	$	126,189
Patented technology		16,126		2		6,520		9,608
Technology		13,000		—		722		12,278
Pool designs		13,628		(276)		1,803		11,549
Franchise relationships		1,187		25		990		222
Dealer relationships		197,376		1		42,760		154,617
Backlog		1,600				1,600		—
Non-competition agreements		2,476		—		1,875		601
	$	393,493	$	(826)	$	77,603	$	315,064

The Company recognized $7.2 million and $21.5 million of amortization expense related to intangible assets during the fiscal quarter and three fiscal quarters ended October 1, 2022, respectively. The Company recognized $5.5 million and $16.6 million of amortization expense related to intangible assets during the fiscal quarter and three fiscal quarters ended October 2, 2021, respectively.

Intangible assets, net as of December 31, 2021 consisted of the following (in thousands):

	December 31, 2021
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	148,100	$	439	$	16,382	$	132,157
Patented technology		16,126		65		5,205		10,986
Technology		13,000		—		72		12,928
Pool designs		13,628		265		1,101		12,792
Franchise relationships		1,187		54		767		474
Dealer relationships		197,376		22		30,838		166,560
Backlog		1,600		—		160		1,440
Non-competition agreements		2,476		—		1,503		973
	$	393,493	$	845	$	56,028	$	338,310

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five years and thereafter (in thousands):

	Estimated Future
Year Ended	Amortization Expense
Remainder of fiscal 2022	$	6,680
2023		26,528
2024		25,708
2025		25,550
2026		25,550
Thereafter		205,048
	$	315,064