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

9 Months Ended

Oct. 03, 2026

Intangible Asset, Goodwill and Other [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:


			October 3, 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	5-15	6.8	$	466.1	$	240.5	$	—	$	225.6	$	447.9	$	214.8	$	0.4	$	232.7
Tradenames and trademarks	Indefinite	Indefinite	102.3		—		18.2		84.1		107.8		—		12.3		95.5
Tradenames and trademarks	3-5	3.3	11.6		1.9		—		9.7		1.7		0.6		—		1.1
Software development	2-10	1.3	20.3		12.7		—		7.6		20.3		10.4		—		9.9
Non-compete agreements	3-5	3.7	8.6		2.2		—		6.4		3.0		1.1		—		1.9
Backlog	1	0.3	11.0		8.3		—		2.7		—		—		—		—
Total intangible assets			$	619.9	$	265.6	$	18.2	$	336.1	$	580.7	$	226.9	$	12.7	$	341.1

Changes in the gross carrying amount of recognized intangible assets are due to the Kiwi II acquisition, BETCO reclassification and translation adjustments and include a loss of $0.2 and a gain of $1.0 for the periods ended October 3, 2026 and January 3, 2026, respectively. The amortization of intangible assets is included in general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. Amortization expense was approximately $15.1 and $8.3 for the three month periods ended October 3, 2026 and September 27, 2025, respectively, and was approximately $39.1 and $24.8 for the nine month periods ended October 3, 2026 and September 27, 2025, respectively.

Change in Useful Lives of Intangible Assets

BETCO

During the quarter ended October 3, 2026, we changed the useful life of our BETCO tradename, which had previously been classified as an indefinite-lived intangible asset. As a result of our ongoing integration initiatives and branding strategy, we concluded that a foreseeable limit now exists on the period over which the tradename is expected to contribute to future cash flows. In accordance with Accounting Standards Codification (“ASC”) 350 Goodwill and Other, we evaluated the tradename for impairment immediately prior to the change in classification and determined the tradename was not impaired. Following the assessment, we changed the BETCO tradename’s classification to a definite

life and we will amortize the remaining $5.4 carrying value over a period of three years. Amortization expense associated with this tradename was $0.5 during each of the three and nine month periods ended October 3, 2026.

Noke

During the quarter ended October 3, 2026, we changed the useful life of our Noke software development intangible assets that were acquired in 2018 as part of the business combination. These assets had an initial 15 year useful life; and the 7.5 year remaining useful life was condensed to 18 months as of the beginning of our fiscal third quarter. At the time of reassessment, these assets had a carrying value of $8.7. Incremental amortization expense associated with this change in useful life of these assets was $1.2 during each of the three month and nine month periods ended October 3, 2026.

As a result of these changes in useful lives, during the three and nine month periods ended October 3, 2026, we incurred an increase in amortization of $1.7, which resulted in a corresponding increase in net loss or a $0.01 in basic and diluted EPS.

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	44.4		—		44.4
Impairment of goodwill	(12.4)		—		(12.4)
Foreign Currency Translation Adjustment	—		(0.1)		(0.1)
Balance as of October 3, 2026	$	403.8	$	12.0	$	415.8

Goodwill and Indefinite-Life Intangible Impairment

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 decline in overall operating results to date, unfavorable changes in forecasted results, and other macroeconomic factors as indicators that an impairment loss may have occurred. Therefore, we performed an interim quantitative impairment assessment using a combination of the discounted cash flow method and guideline public company method as of October 3, 2026, for each of our reporting units, as well as our indefinite-lived intangible assets using the relief-from-royalty method. We applied 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 estimated fair value of our BETCO and Kiwi II reporting units were determined to be less than their respective carrying values. As such, we recognized goodwill impairment charges of $5.0 to our BETCO reporting unit and $7.4 to our Kiwi II reporting unit during the three and nine month periods ended October 3, 2026. Following the impairment, the carrying value of goodwill associated with our BETCO and Kiwi II reporting units were $17.7 and $37.0, respectively. We also determined that our DBCI and ACT tradename indefinite-lived intangible asset fair values were less than their respective carrying values. As such, we recognized impairment charges of $5.9 on our DBCI and ACT tradenames. Following the impairment, the carrying value of our DBCI tradename was $4.1 and our ACT tradename had a carrying value of zero.

We identified two reporting units’ goodwill balances for which the fair values were not substantially in excess of their carrying value. Our Janus Core reporting unit had a fair value in excess of its carrying value of $257.3 by 18.0%. Our TMC reporting unit had a fair value in excess of its carrying value of $53.9, by 18.1%. We identified one tradename for which the fair value was not substantially in excess of its carrying value. Our Janus Core tradename had a fair value in excess of its carrying value of $66.8, by 12.3%.