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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block] Goodwill and Other Intangible Assets
The table below presents changes in the carrying amount of goodwill and our accumulated impairment losses (in thousands):
Goodwill (gross) at December 31, 2022
$705,987 
Acquired goodwill8,137 
Foreign currency translation and other adjustments498 
Goodwill (gross) at December 31, 2023
714,622 
Accumulated impairment losses at December 31, 2022
(13,994)
Goodwill impairment(550)
Accumulated impairment losses at December 31, 2023
(14,544)
Goodwill (net) at December 31, 2023
$700,078 
Goodwill (gross) at December 31, 2023
$714,622 
Acquired goodwill2,170 
Foreign currency translation and other adjustments (1)
(3,338)
Goodwill (gross) at December 31, 2024
713,454 
Accumulated impairment losses at December 31, 2023
(14,544)
Goodwill impairment— 
Accumulated impairment losses at December 31, 2024
(14,544)
Goodwill (net) at December 31, 2024
$698,910 

(1) Includes a $2.0 million reduction of goodwill for our Porpoise Pool & Patio reporting unit for the sale of two Pinch A Penny retail stores in 2024.

The determination of our reporting units’ goodwill and intangibles fair values includes numerous assumptions that are subject to various risks and uncertainties when performing a quantitative test. The principal assumptions, all of which are considered Level 3 inputs, used in our cash flow analyses consisted of changes in market conditions, forecasted future operating results (including sales growth rates and operating margins) and discount rates (including our weighted-average cost of capital).

In October 2024, we performed our annual goodwill impairment test and did not record any goodwill impairment at the reporting unit level. As of October 1, 2024, we had 251 reporting units with allocated goodwill balances.   Our most significant goodwill balance of $401.6 million was related to our Porpoise Pool & Patio reporting unit and the next largest goodwill balance for a reporting unit was $12.1 million. The average goodwill balance per reporting unit was $2.8 million.

In September 2023, we recorded goodwill impairment of $0.6 million, primarily related to one of our Horizon reporting units in Texas that we previously identified as being most at risk of goodwill impairment. We had been monitoring this location’s results, which came in below expectations at the end of the 2023 season. We performed an interim goodwill impairment analysis, which included a discounted cash flow analysis, and determined that the estimated fair value of the reporting unit no longer exceeded its carrying value. In October 2023, we performed our annual goodwill impairment test and did not record any additional goodwill impairment at the reporting unit level.

We record goodwill and intangibles impairment in Selling and administrative expenses on our Consolidated Statements of Income.
Other intangible assets consisted of the following (in thousands):
 December 31,Weighted Average Useful Life
 20242023
Intangibles GrossAccumulated AmortizationIntangibles NetIntangibles GrossAccumulated AmortizationIntangibles Net
Horizon tradename$8,400 $— $8,400 $8,400 $— $8,400 Indefinite
Pinch A Penny brand name169,000 — 169,000 169,000 — 169,000 Indefinite
National Pool Tile (NPT) tradename1,500 (1,262)238 1,500 (1,187)313 20
Non-compete agreements6,419 (4,394)2,025 6,206 (3,258)2,948 4.65
Customer relationships109,000 (16,573)92,427 109,000 (11,125)97,875 20
Franchise agreements22,000 (3,358)18,642 22,000 (2,254)19,746 20
Total other intangibles$316,319 $(25,587)$290,732 $316,106 $(17,824)$298,282 

The Horizon tradename and Pinch A Penny brand name each have an indefinite useful life and are not subject to amortization.  We evaluate the useful life of these intangible assets and test for impairment annually.  The NPT tradename, our non-compete agreements, customer relationships and franchise agreements have finite useful lives, and we amortize the estimated fair value of these agreements using the straight-line method over their respective useful lives. We have not identified any indicators of impairment related to these assets. The useful lives for our non-compete agreements are based on their contractual terms.

Other intangible amortization expense was $7.8 million in 2024, $7.8 million in 2023 and $7.8 million in 2022.

The table below presents estimated amortization expense for other intangible assets for the next five years (in thousands):
2025$7,724 
20267,203 
20276,850 
20286,678 
20296,567