Janus International Group, Inc.JBI
Janus International Group, Inc. Goodwill & Intangibles Disclosure
Acquired Intangible Assets and Goodwill
Intangible assets acquired in a business combination (see Note 6, Business Combinations) are recognized at fair value and amortized over their estimated useful lives. The carrying amount and accumulated amortization of recognized intangible assets at December 28, 2024 and December 30, 2023, are as follows:
| (dollar amounts in millions) | December 28, 2024 | December 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Useful Life | Weighted-Average Amortization period (years) | Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Amount | Gross Carrying Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||||||||||||||||||||||
Customer relationships | 10-15 years | 8.6 | $ | 446.8 | $ | 184.0 | $ | — | $ | 262.8 | $ | 409.0 | $ | 154.1 | $ | 254.9 | |||||||||||||||||||||||||||||||
Tradenames and trademarks | Indefinite | Indefinite | 107.5 | — | 12.0 | 95.5 | 107.5 | — | 107.5 | ||||||||||||||||||||||||||||||||||||||
Tradenames and trademarks | Definite | 4.4 | 1.7 | 0.2 | — | 1.5 | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Software development | 10-15 years | 8.2 | 20.3 | 9.0 | — | 11.3 | 20.3 | 7.5 | 12.8 | ||||||||||||||||||||||||||||||||||||||
Noncompete agreements | 3-8 years | 4.1 | 3.0 | 0.6 | — | 2.4 | 0.3 | 0.2 | 0.1 | ||||||||||||||||||||||||||||||||||||||
| $ | 579.3 | $ | 193.8 | $ | 12.0 | $ | 373.5 | $ | 537.1 | $ | 161.8 | $ | 375.3 | ||||||||||||||||||||||||||||||||||
Changes to gross carrying amount of recognized intangible assets due to translation adjustments include a loss of $0.3 and $0.8 for the years ended December 28, 2024 and December 30, 2023, respectively. Amortization expense was approximately $32.0, $29.8 and $29.7 for the years ended December 28, 2024, December 30, 2023, and December 31, 2022, respectively.
Impairment of Indefinite-Lived Tradenames and Trademarks
During the three months ended September 28, 2024, the Company experienced a revenue decline relative to expectations, historical performance, and strategic plans. This decrease was primarily driven by soft demand resulting from elevated interest rates and broader macroeconomic uncertainties, as well as a decline in stock price. Given these qualitative factors, the Company determined it was more likely than not that the fair value of the acquired assets could be impaired. Consequently, the Company performed a quantitative test of goodwill and indefinite-lived tradenames and trademarks as of September 28, 2024, ahead of the scheduled annual impairment test on September 29, 2024. This quantitative test yielded an impairment of $2.8 on its DBCI tradename.
In addition, on December 28, 2024, the Company implemented a strategic decision to focus the use of the DBCI tradename toward the Commercial markets on a go forward basis. The DBCI tradename will no longer be a focus within the self-storage industry. As a result of this strategic change, the Company performed an additional quantitative assessment of the DBCI tradename. We estimated the fair value of these intangible assets using the relief-from-royalty method which requires assumptions related to projected revenues from our long-range plans. This quantitative test indicated that the carrying value of the DBCI tradename exceeded its fair value, leading the Company to record a non-cash impairment of an additional $9.2 for a total impairment of $12.0 for the year ended December 28, 2024. The impairment was recorded in the caption “Impairment” in our Consolidated Statements of Operations and Comprehensive Income and is included within the North America segment. No other impairments were identified in the quantitative tests performed. The Company did not recognize any impairments for the year ended December 30, 2023.
If assumptions or estimates with respect to future performance vary from what is expected, including those assumptions related to revenue, margins, and economic indicators such as inflation and interest rates, it could result in a decline in fair value that may trigger future impairments.
The following table summarizes the aggregate expected amortization expense of definite-lived intangible assets as of December 28, 2024 (dollar amounts in millions):
| 2025 | $ | 33.0 | |||
| 2026 | 33.0 | ||||
| 2027 | 33.0 | ||||
| 2028 | 32.8 | ||||
| 2029 | 32.2 | ||||
| Thereafter | 114.0 | ||||
| Total | $ | 278.0 | |||
Goodwill
The Company performed a quantitative test of goodwill as of September 28, 2024 as well as on the annual impairment testing on the first day of the fourth quarter. The Company determined that it is more likely than not that the goodwill was not impaired. The changes in the carrying amounts of goodwill for the years ended December 28, 2024 and December 30, 2023 were as follows:
| (dollar amounts in millions) | Janus North America | Janus International | Consolidated | ||||||||||||||
| Balance as of December 31, 2022 | $ | 357.0 | $ | 11.2 | $ | 368.2 | |||||||||||
| Foreign Currency Translation Adjustment | — | 0.4 | 0.4 | ||||||||||||||
| Balance as of December 30, 2023 | $ | 357.0 | $ | 11.6 | $ | 368.6 | |||||||||||
| Foreign Currency Translation Adjustment | — | (0.3) | (0.3) | ||||||||||||||
| Terminal Door Asset Acquisition | 14.8 | — | 14.8 | ||||||||||||||
| Balance as of December 28, 2024 | $ | 371.8 | $ | 11.3 | $ | 383.1 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 26, 2025 | Showing above |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 29, 2023 | |
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.