XML 50 R13.htm IDEA: XBRL DOCUMENT
v3.20.4

Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract] |
Intangible Assets | Note 6. Intangible Assets Intangible assets consist of finite and indefinite life assets and are reported within Other assets in our consolidated balance sheets. The impact of COVID-19 on our operating plans and projected cash flows resulted in the completion of an interim impairment assessment for the Silversea Cruises trade name as of March 31, 2020, in addition to our annual indefinite-lived intangible asset impairment assessment performed as of November 30, 2020. Refer to Note 1. General for further information regarding COVID-19 and its impact to the Company. As a result of our evaluation, we determined the carrying value of the Silversea Cruises trade name exceeded its fair value as of March 31, 2020. Accordingly, we recognized an impairment charge of $30.8 million for the quarter ended March 31, 2020. We did not perform interim impairment evaluations of Silversea Cruises' trade name during the quarters ended June 30, 2020 and September 30, 2020 as no triggering events were identified. As of November 30, 2020, we performed our annual trade name impairment review and determined no incremental impairment losses existed at the date of this annual assessment. We determined the fair value of the Silversea Cruises trade name exceeded its carrying value by approximately 3% at the date of this annual assessment. The adverse impact COVID-19 will continue to have on our business, operating results, cash flows and overall financial condition is uncertain and may result in changes to the assumptions used in the impairment tests discussed above. In addition, further suspension beyond 2021 or changes to our planned ship deliveries could adversely impact our expected occupancy rates and may result in additional impairment charges of the Silversea Cruises trade name in the future. The suspension of operations, as further discussed in Note 1. General, and possibility of further suspensions create uncertainty in forecasting operating cash flows. The determination of our trade name fair values using a discounted cash flow model and various valuation methods depending on the nature of the intangible asset, such as the relief-from-royalty method, require the use of assumptions that are subject to risk and uncertainties. The principal assumptions used in the discounted cash flow analyses that support the Silversea Cruises trade name impairment assessments consisted of: •Forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, including options, and terminal growth rate; •Royalty rate; and •Weighted average cost of capital (i.e., discount rate). The following is a summary of our intangible assets as of December 31, 2020 (in thousands, except weighted average amortization period), with Silversea Cruises' trade name representing approximately $318.7 million of the indefinite-lived intangible asset balance:
|  | As of December 31, 2020
|  | Remaining Weighted Average Amortization Period (Years) |  | Gross Carrying Value |  | Accumulated Amortization |  | Accumulated Impairment Losses |  | Net Carrying Value
Finite-life intangible assets: |  |  |  |  |  |  |  |  |  |
Customer relationships |  | 12.8 |  | $ | 97,400 |  |  | $ | 14,069 |  |  | $ | — |  |  | $ | 83,331 |
Galapagos operating license |  | 23.8 |  | 47,669 |  |  | 7,621 |  |  | — |  |  | 40,048 |
Other finite-life intangible assets |  | 0 |  | 11,560 |  |  | 11,560 |  |  | — |  |  | — |
Total finite-life intangible assets |  |  |  | 156,629 |  |  | 33,250 |  |  | — |  |  | 123,379 |
Indefinite-life intangible assets (1) |  |  |  | 352,275 |  |  | — |  |  | 30,800 |  |  | 321,475 |
Total intangible assets, net |  |  |  | $ | 508,904 |  |  | $ | 33,250 |  |  | $ | 30,800 |  |  | $ | 444,854 |
(1) Primarily relates to the Silversea Cruises trade name. The following is a summary of our intangible assets as of December 31, 2019 (in thousands, except weighted average amortization period):
|  | As of December 31, 2019
|  | Remaining Weighted Average Amortization Period (Years) |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value
Finite-life intangible assets: |  |  |  |  |  |  |  |
Customer relationships |  | 13.8 |  | $ | 97,400 |  |  | $ | 7,576 |  |  | $ | 89,824 |
Galapagos operating license |  | 24.7 |  | 47,669 |  |  | 6,010 |  |  | 41,659 |
Other finite-life intangible assets |  | 0.8 |  | 11,560 |  |  | 6,743 |  |  | 4,817 |
Total finite-life intangible assets |  |  |  | 156,629 |  |  | 20,329 |  |  | 136,300 |
Indefinite-life intangible assets (1) |  |  |  | 352,275 |  |  | — |  |  | 352,275 |
Total intangible assets, net |  |  |  | $ | 508,904 |  |  | $ | 20,329 |  |  | $ | 488,575 |
(1) Primarily relates to the Silversea Cruises trade name. The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands):
Year |  |
2021 |  | $ | 8,179 |
2022 |  | $ | 8,179 |
2023 |  | $ | 8,179 |
2024 |  | $ | 8,179 |
2025 |  | $ | 8,179 |

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IntangibleAssetsNetExcludingGoodwillAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration