Acquisitions, Goodwill And Other Intangible Assets

6 Months Ended

Jun. 30, 2024

Acquisitions, Goodwill And Other Intangible Assets [Abstract]

Acquisitions, Goodwill And Other Intangible Assets

ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS

Acquisitions Completed During the Six Months Ended June 30, 2024

Camping World Furniture

In May 2024, the Company acquired the business and certain assets of the furniture operations of CWDS, LLC, a subsidiary of Camping World Holdings, Inc., in exchange for cash consideration of $20.0 million, plus a holdback payment of $1.0 million due on the first anniversary of the acquisition. The acquisition, which qualifies as a business combination for accounting purposes, expands the Company's furniture portfolio. The results of the acquired business have been included in the Condensed Consolidated Statements of Income since the acquisition date, primarily in the OEM segment. The preliminary purchase price allocation resulted in $1.7 million of goodwill (tax deductible) and $4.3 million of acquired intangible assets. As this acquisition is not considered to have a material impact on the Company's financial statements, pro forma results of operations and other disclosures are not presented.

Goodwill

Changes in the carrying amount of goodwill by reportable segment were as follows:

(In thousands)	OEM Segment		Aftermarket Segment		Total
Net balance – December 31, 2023	$	421,701	$	167,849	$	589,550
Acquisitions	1,709		—		1,709
Foreign currency translation	(2,598)		(138)		(2,736)
Net balance – June 30, 2024	$	420,812	$	167,711	$	588,523

Goodwill represents the excess of the total consideration given in an acquisition of a business over the fair value of the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested at the reporting unit level for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist.

Other Intangible Assets

Other intangible assets consisted of the following at June 30, 2024:

(In thousands)	Gross Cost		Accumulated Amortization		Net Balance		Estimated Useful Life in Years
Customer relationships	$	510,698	$	209,210	$	301,488	6	to	20
Patents	114,939		72,039		42,900		3	to	20
Trade names (finite life)	98,938		30,195		68,743		3	to	20
Trade names (indefinite life)	7,432		—		7,432		Indefinite
Non-compete agreements	10,304		9,450		854		3	to	6
Other	609		313		296		2	to	12
Other intangible assets	$	742,920	$	321,207	$	421,713

Other intangible assets consisted of the following at December 31, 2023:

(In thousands)	Gross Cost		Accumulated Amortization		Net Balance		Estimated Useful Life in Years
Customer relationships	$	509,505	$	189,967	$	319,538	6	to	20
Patents	114,864		67,602		47,262		3	to	20
Trade names (finite life)	99,366		26,978		72,388		3	to	20
Trade names (indefinite life)	7,600		—		7,600		Indefinite
Non-compete agreements	10,104		8,453		1,651		3	to	6
Other	609		289		320		2	to	12
Other intangible assets	$	742,048	$	293,289	$	448,759

Acquisitions, Goodwill And Other Intangible Assets

ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS

Acquisitions Completed During the Six Months Ended June 30, 2024

Camping World Furniture

In May 2024, the Company acquired the business and certain assets of the furniture operations of CWDS, LLC, a subsidiary of Camping World Holdings, Inc., in exchange for cash consideration of $20.0 million, plus a holdback payment of $1.0 million due on the first anniversary of the acquisition. The acquisition, which qualifies as a business combination for accounting purposes, expands the Company's furniture portfolio. The results of the acquired business have been included in the Condensed Consolidated Statements of Income since the acquisition date, primarily in the OEM segment. The preliminary purchase price allocation resulted in $1.7 million of goodwill (tax deductible) and $4.3 million of acquired intangible assets. As this acquisition is not considered to have a material impact on the Company's financial statements, pro forma results of operations and other disclosures are not presented.

Goodwill

Changes in the carrying amount of goodwill by reportable segment were as follows:

(In thousands)	OEM Segment		Aftermarket Segment		Total
Net balance – December 31, 2023	$	421,701	$	167,849	$	589,550
Acquisitions	1,709		—		1,709
Foreign currency translation	(2,598)		(138)		(2,736)
Net balance – June 30, 2024	$	420,812	$	167,711	$	588,523

Goodwill represents the excess of the total consideration given in an acquisition of a business over the fair value of the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested at the reporting unit level for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist.

Other Intangible Assets

Other intangible assets consisted of the following at June 30, 2024:

(In thousands)	Gross Cost		Accumulated Amortization		Net Balance		Estimated Useful Life in Years
Customer relationships	$	510,698	$	209,210	$	301,488	6	to	20
Patents	114,939		72,039		42,900		3	to	20
Trade names (finite life)	98,938		30,195		68,743		3	to	20
Trade names (indefinite life)	7,432		—		7,432		Indefinite
Non-compete agreements	10,304		9,450		854		3	to	6
Other	609		313		296		2	to	12
Other intangible assets	$	742,920	$	321,207	$	421,713

Other intangible assets consisted of the following at December 31, 2023:

(In thousands)	Gross Cost		Accumulated Amortization		Net Balance		Estimated Useful Life in Years
Customer relationships	$	509,505	$	189,967	$	319,538	6	to	20
Patents	114,864		67,602		47,262		3	to	20
Trade names (finite life)	99,366		26,978		72,388		3	to	20
Trade names (indefinite life)	7,600		—		7,600		Indefinite
Non-compete agreements	10,104		8,453		1,651		3	to	6
Other	609		289		320		2	to	12
Other intangible assets	$	742,048	$	293,289	$	448,759