American Outdoor Brands, Inc.AOUT

American Outdoor Brands, Inc. Goodwill & Intangibles Disclosure

10-KFiled Jun 26, 20252 min read
Intangible Assets
The following table summarizes intangible assets as of April 30, 2025 and 2024 (in thousands):
April 30, 2025April 30, 2024
Gross
Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Customer relationships$89,980 $(82,623)$7,357 $89,980 $(78,877)$11,103 
Developed software and technology28,155 (22,238)5,917 27,762 (20,250)7,512 
Patents, trademarks, and trade names70,060 (53,966)16,094 69,497 (50,046)19,451 
188,195 (158,826)29,368 187,239 (149,173)38,066 
Patents and software in development1,612 — 1,612 1,721 — 1,721 
Total definite-lived intangible assets189,807 (158,826)30,981 188,960 (149,173)39,787 
Indefinite-lived intangible assets430 — 430 430 — 430 
Total intangible assets$190,237 $(158,826)$31,411 $189,390 $(149,173)$40,217 
We amortize definite-lived intangible assets with determinable lives over a weighted-average period of approximately five years. The weighted-average periods of amortization by intangible asset class is approximately five years for customer relationships, six years for developed software and technology, and six years for patents, trademarks, and trade na
mes. Amortization expense amounted to $9.8 million, $13.1 million, and $13.7 million for the fiscal years ended April 30, 2025, 2024, and 2023, respectively.
The following table represents future expected amortization expense as of April 30, 2025 (in thousands):
FiscalAmount
2026$8,481 
20276,093 
20284,645 
20292,975 
20302,336 
Thereafter4,838 
Total$29,368 
We did not record any impairment charges for long-lived intangible assets in the fiscal years ended April 30, 2025, 2024, and 2023, respectively.

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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