Annual report pursuant to Section 13 and 15(d)

Intangible Assets, Net and Goodwill

v3.22.0.1
Intangible Assets, Net and Goodwill
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE 6 — INTANGIBLE ASSETS, NET AND GOODWILL
Intangible assets, net consisted of the following:

December 31,
(in thousands)
 2021 2020
Intangible assets with definite lives:
Patents and purchased technology $ 14,198  $ 14,198 
Customer relationships 23,000  23,000 
Gross carrying amount 37,198  37,198 
Accumulated amortization:
Patents and purchased technology (14,198) (14,198)
Customer relationships (19,013) (17,363)
Accumulated amortization (33,211) (31,561)
Net carrying amount 3,987  5,637 
Intangible assets with indefinite lives 97,921  97,921 
Intangible assets, net $ 101,908  $ 103,558 

Amortization expense for intangible assets subject to amortization was $1.7 million, $2.5 million and $3.0 million for the years ended December 31, 2021, 2020 and 2019 respectively.

Impairment charges for intangible assets with indefinite lives are included in SG&A expense. For the year ended December 31, 2021 and 2019, there were no impairments recorded for intangible assets with indefinite lives. For the year ended December 31, 2020, an impairment charge of $17.5 million was recorded. The impairment of the prAna trademark and trade name intangible asset was determined as part of the annual impairment test. The fair value was estimated using a relief from royalty method under the income approach. Cash flow projections were developed in part from the Company's annual planning process. The discount rate was the estimated weighted-average costs of capital of the reporting unit from a market-participant perspective. The decline in estimated fair value from the fourth-quarter 2020 impairment test compared to the fourth-quarter 2019 impairment test reflected a lower estimated royalty rate and a decline in forecasted revenues.

Substantially all of the Company's goodwill is recorded in the U.S. segment. The Company determined that goodwill was not impaired for the years ended December 31, 2021, 2020, and 2019.

The following table presents the estimated annual amortization expense for the years 2022 through 2026:

(in thousands)
2022 $ 1,650 
2023 1,650 
2024 688 
2025 — 
2026 —