Indefinite-lived intangible assets (which consists of trade names and trademarks) (collectively, "trade names") and goodwill reporting units are tested for impairment annually or when events or changes in circumstances indicate that it is more likely than not that the fair value of the asset is less than its carrying amount. During the three and nine months ended September 30, 2026, there were no triggering events or impairment charges recorded for the Company's trade names or goodwill reporting units. During the three and nine months ended September 30, 2025, declines in forecasted revenues and gross margins triggered interim quantitative impairment tests where the Company compared the estimated fair values of the prAna and Mountain Hardwear trade names and goodwill reporting units to their carrying values.

The fair values of the prAna and Mountain Hardwear trade names were estimated using a relief-from-royalty method under the income approach. The key assumptions used in the relief-from-royalty method were the Company's estimates of projected revenues, royalty rate, and discount rate, taking into consideration market and industry conditions. As a result of the third quarter 2025 interim quantitative impairment test, the Company recorded an impairment charge of $8.0 million related to the prAna trade name.

The fair values of the prAna and Mountain Hardwear goodwill reporting units were estimated using a combination of discounted cash flow and market-based valuation methods. The key assumptions used in the discounted cash flow method were cash flow projections and the discount rate. Cash flow projections were developed, in part, from the Company's annual and long-range planning processes. The discount rate was the estimated weighted-average cost of capital of each reporting unit from a market-participant perspective. The key assumptions used in the market-based valuation method were market multiples for guideline public companies. As a result of the third quarter 2025 interim quantitative impairment test, the Company recorded impairment charges of $21.0 million related to the Mountain Hardwear and prAna goodwill reporting units.



	As of
(in thousands)	September 30, 2026		December 31, 2025
Intangible assets with definite lives:
Patents and purchased technology	$	14,198	$	14,198
Customer relationships	23,000		23,000
Gross carrying amount	37,198		37,198
Accumulated amortization:
Patents and purchased technology	(14,198)		(14,198)
Customer relationships	(23,000)		(23,000)
Accumulated amortization	(37,198)		(37,198)
Net carrying amount	—		—
Intangible assets with indefinite lives	71,221		71,221
Intangible assets, net	$	71,221	$	71,221

There have been no changes to the Company's goodwill as described in Note 9 in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.