Janus International Group Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Acquired Intangible Assets and Goodwill

Acquired Intangible Assets and Goodwill

3 Months Ended

Apr. 04, 2026

Goodwill and Intangible Assets Disclosure [Abstract]

7. Acquired Intangible Assets and Goodwill

Intangible assets acquired in a business combination are recognized at fair value and amortized over their estimated useful lives. The carrying amount and accumulated amortization of recognized intangible assets are as follows for the periods presented:


			April 4, 2026								January 3, 2026
(dollar amounts in millions)	Original Useful Life (years)	Remaining Weighted-Average Amortization period (years)	Gross Carrying Amount		Accumulated Amortization		Accumulated Impairment		Net Amount		Gross Carrying Amount		Accumulated Amortization		Accumulated Impairment		Net Amount
Customer relationships	10-15	7.5	$	466.0	$	222.9	$	—	$	243.1	$	447.9	$	214.8	$	0.4	$	232.7
Tradenames and trademarks	Indefinite	Indefinite	107.7		—		12.3		95.4		107.8		—		12.3		95.5
Tradenames and trademarks	5	4.3	6.2		0.9		—		5.3		1.7		0.6		—		1.1
Software development	10-15	6.9	20.3		10.8		—		9.5		20.3		10.4		—		9.9
Non-compete agreements	3-5	4.2	8.6		1.3		—		7.3		3.0		1.1		—		1.9
Backlog	1	0.8	11.0		2.7		—		8.3		—		—		—		—
Total intangible assets			$	619.8	$	238.6	$	12.3	$	368.9	$	580.7	$	226.9	$	12.7	$	341.1

Changes to gross carrying amount of recognized intangible assets due to translation adjustments include a loss of $0.2 and a gain of $1.0 for the periods ended April 4, 2026 and January 3, 2026, respectively. The amortization of intangible assets is included in the general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. Amortization expense was approximately $12.0 and $8.3 for the three month periods ended April 4, 2026 and March 29, 2025, respectively.

Goodwill

The changes in the carrying amounts of goodwill are as follows for the periods presented:


(dollar amounts in millions)	Janus North America		Janus International		Consolidated



Balance as of January 3, 2026	$	371.8	$	12.1	$	383.9
Kiwi II Acquisition	44.2		—		44.2
Foreign Currency Translation Adjustment	—		(0.1)		(0.1)
Balance as of April 4, 2026	$	416.0	$	12.0	$	428.0

Goodwill and Indefinite-Life Intangible Impairment Assessment

We test goodwill and indefinite lived intangibles for impairment on an annual basis and between annual tests if an event occurs or circumstances change (a “triggering event”) that would more likely than not reduce the fair value of a reporting unit below its carrying value. We considered the continuation of a sustained decline in our market capitalization level and other macroeconomic factors as indicators that an impairment loss may have occurred. Therefore, we performed an interim quantitative impairment assessment as of April 4, 2026, for each reporting unit, as well as certain indefinite-lived intangible assets using our best estimates for assumptions regarding future revenues, anticipated margins, discount rates, and long-term growth rates to estimate the fair value of our reporting units.

Based on the results of this assessment, the fair value of all of our reporting units exceeded their carrying values; however, we identified two reporting units for which the fair values were not substantially in excess of their carrying values.

Our BETCO reporting unit had a fair value in excess of its carrying value of $56.8 by 8.2% and our TMC reporting unit had a fair value in excess of its carrying value of $55.0 by 20.0%. As of April 4, 2026, our BETCO and TMC reporting units had goodwill balances of $22.7 and $14.8, respectively.