Annual report [Section 13 and 15(d), not S-K Item 405]

Intangible Assets, Net and Goodwill

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Intangible Assets, Net and Goodwill
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE 5 — INTANGIBLE ASSETS, NET AND GOODWILL
INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:

As of December 31,
(in thousands)
 2024 2023
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 (23,000) (22,313)
Accumulated amortization (37,198) (36,511)
Net carrying amount —  687 
Intangible assets with indefinite lives 79,221  79,221 
Intangible assets, net $ 79,221  $ 79,908 
ntangible assets subject to amortization were fully amortized as of December 31, 2024. Amortization expense for intangible assets subject to amortization was $0.7 million for the year ended December 31, 2024 and $1.7 million for the years ended December 31, 2023 and 2022.
For the years ended December 31, 2024 and 2023, there was no impairment recorded for intangible assets with indefinite lives. For the year ended December 31, 2022, an impairment charge of $18.7 million was recorded for the impairment of prAna's trademark and trade name (collectively, "trademark"). The impairment of the prAna trademark was determined as part of the annual impairment test. The decline in
estimated fair value from the fourth quarter 2021 impairment test reflected a decline in forecasted revenue, a lower estimated royalty rate, and a slightly higher discount rate.
GOODWILL
The following table sets forth the changes in Goodwill.

(in thousands)
Balance as of December 31, 2022
Goodwill
 $ 73,208 
Accumulated impairment losses
 (21,514)
Carrying value 51,694 
Impairment losses during 2023
(25,000)
Balance as of December 31, 2023
Goodwill
 73,208 
Accumulated impairment losses
 (46,514)
Carrying value 26,694 
Impairment losses during 2024
— 
Balance as of December 31, 2024
Goodwill
 73,208 
Accumulated impairment losses
 (46,514)
Carrying value $ 26,694 
Substantially all of the Company's goodwill is recorded in the U.S. segment.

For the year ended December 31, 2024, there was no impairment recorded for goodwill. For the years ended December 31, 2023 and 2022, an impairment charge of $25.0 million and $16.9 million was recorded for the impairment of goodwill attributable to the prAna reporting unit, respectively. The impairment of the goodwill attributable to the prAna reporting unit was determined as part of the annual impairment test. For the year ended December 31, 2023, the decline in estimated fair value from the fourth quarter 2022 impairment test reflected an increase in the weighted-average cost of capital used in the discounted cash flow model and lower operating income levels. For the year ended December 31, 2022, the decline in estimated fair value from the fourth quarter 2021 impairment test reflected lower assumed revenue and operating income levels, while the weighted-average cost of capital used in the discounted cash flow model remained relatively unchanged.