Annual report pursuant to Section 13 and 15(d)

Intangible Assets, Net and Goodwill

v3.20.4
Intangible Assets, Net and Goodwill
 12 Months Ended
Dec. 31, 2020
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)
 2020 2019
Intangible assets subject to amortization:
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) (13,311)
Customer relationships (17,363) (15,713)
Accumulated amortization (31,561) (29,024)
Net carrying amount 5,637  8,174 
Intangible assets not subject to amortization 97,921  115,421 
Intangible assets, net $ 103,558  $ 123,595 
Amortization expense for intangible assets subject to amortization was $2.5 million for the year ended December 31, 2020, and $3.0 million for the years ended December 31, 2020 and 2019.
Impairment charges for the intangible assets not subject to amortization are included in SG&A expense and were $17.5 million for the year ended December 31, 2020. 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 is 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 2019 impairment test reflects a lower estimated royalty rate and a decline in forecasted revenues. There was no impairment recorded for intangible assets not subject to amortization for the years ended December 31, 2019 and 2018.
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, 2020, 2019, and 2018.
The following table presents the estimated annual amortization expense for the years 2021 through 2025:
(in thousands)
2021 $ 1,650 
2022 1,650 
2023 1,650 
2024 688 
2025 —