INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):


	September 30, 2025								December 31, 2024
	Gross		Impairment		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Goodwill(1)	$	33,237	$	(33,237)	$	—	$	—	$	33,237	$	—	$	33,237


Finite-lived intangible assets:
Licenses	15,847		—		(12,908)		2,939		15,847		(12,566)		3,281
Trade names	104,614		—		(33,717)		70,897		104,459		(28,619)		75,840
Customer relationships	143,159		—		(80,886)		62,273		143,157		(73,505)		69,652
Other	5,894		—		(4,732)		1,162		5,868		(4,351)		1,517
Total	$	302,751	$	(33,237)	$	(132,243)	$	137,271	$	302,568	$	(119,041)	$	183,527

(1) The net value at September 30, 2025 reflects a reduction of $113.0 million impairment charges within U.S. segment and $11.9 million impairment charges within International segment. The gross and net value at December 31, 2024 reflect a reduction of $79.8 million impairment charges within U.S. segment and $11.9 million impairment charges within International segment.

Goodwill impairment test

In the second quarter of 2025, the Company observed a sustained decline in the market valuation of the Company's common stock. Additionally, the Company's near term forecasts for the U.S. reporting unit were revised downward due to changes in retailer and consumer buying patterns, which were impacted by the recent changes in the U.S. tariff policies. Based on these factors the Company concluded that impairment indicators for the U.S. reporting unit were present as of June 30, 2025.

The Company performed an interim impairment test of the goodwill in the U.S. reporting unit as of June 30, 2025 by comparing its fair value with its carrying value. The analysis was performed by using a discounted cash flow and market multiple method. Accordingly, this fair value measurement is classified as Level 3 since it is based primarily on unobservable inputs. Based upon the analysis performed, the Company's U.S. reporting unit goodwill was fully impaired and a $33.2 million non-cash goodwill impairment charge was recognized. The goodwill impairment charge was the result of the decline in the Company's near term forecasts that were revised downward due to the changes in retailer and consumer buying patterns and an increase to the company-specific risk premium, which is an input to the cost of capital assumption, to address the potential risks in the long-term forecast which remain uncertain at this time. As of September 30, 2025, the Company's goodwill balance was zero.

LIFETIME BRANDS, INC 10-Q