Note 5 - Acquired Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5 —    Acquired Intangible Assets and Goodwill

The carrying basis and accumulated amortization of recognized intangible assets are summarized in the following table:

	2023				2022
In Thousands	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Patents		24,715		24,410		24,715		24,270
Non-compete agreements		2,749		2,749		2,749		2,749
Customer list		22,017		11,466		22,017		9,783
Trademarks		18,636		1,339		18,636		802
Developed technology		475		475		475		396
License agreements		700		213		700		172
		69,292		40,652		69,292		38,172

Amortization expense was $2.5 million, $2.6 million and $1.9 million for 2023, 2022 and 2021, respectively. At December 31, 2023, the net carrying amount of trademarks includes $7.8 million related to indefinite-lived intangible assets which are not amortized but are evaluated for impairment.

Estimated future amortization expense is summarized in the following table:

All Amounts in Thousands
2024	$	2,356
2025		2,307
2026		2,259
2027		2,172
2028		1,523
Thereafter		10,239
Subtotal		20,856
Indefinite-lived intangible asset balance		7,784
Total	$	28,640

Consistent with our operating segment conclusion, we have concluded one reporting unit exists and all goodwill is allocated to that reporting unit. The changes in the carrying amount of goodwill were:

In Thousands	Sporting Goods
Balance at December 25, 2021	$	32,695
Acquisition		9,631
Balance at December 31, 2022	$	42,326
Acquisition		--
Balance at December 31, 2023	$	42,326

The Company reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable, in accordance with guidance in FASB ASC 350, Intangibles – Goodwill and Other. Annually, the Company evaluates goodwill for impairment as of the last day of the fiscal year. A qualitative assessment is first performed to determine if the fair value of the reporting unit is “more likely than not” less than the carrying value.  If so, we proceed to a quantitative assessment, in which the fair value of the reporting unit is compared to its carrying value. If the carrying value of the reporting unit exceeds the fair value, an impairment charge to current operations is recorded to reduce the carrying value to the fair value.