Intangible Assets, net

6 Months Ended

Jul. 02, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

9. Intangible Assets, net

Intangible assets, net, consist of the following:


	July 2, 2022						January 1, 2022
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets subject to amortization:
Customer relationships	$	228.6	$	(13.0)	$	215.6	$	24.6	$	(9.3)	$	15.3
Acquired technologies	183.9		(13.0)		170.9		28.4		(7.7)		20.7
Patents	61.9		(14.0)		47.9		31.5		(13.2)		18.3
Trademarks	18.7		(5.6)		13.1		12.2		(4.1)		8.1
Licenses	8.7		(2.5)		6.2		8.1		(2.0)		6.1
Licenses-related party	7.5		(6.2)		1.3		7.5		(6.0)		1.5
Non-compete agreements(1)	6.0		—		6.0		—		—		—
Capitalized software development costs	5.3		(2.7)		2.6		4.2		(2.6)		1.6
Other	1.9		(1.0)		0.9		2.0		(0.9)		1.1
Total intangible assets subject to amortization, net	$	522.5	$	(58.0)	$	464.5	$	118.5	$	(45.8)	$	72.7
Intangible assets not subject to amortization:
Trademarks					262.0						—
Intangible assets, net					$	726.5					$	72.7

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(1) In connection with the Sound United acquisition, the Company also acquired non-compete agreements with a gross carrying amount equal to $6.0 million.

A significant portion of the increase in intangible assets was attributable to the Sound United acquisition. Please refer to Note 17, “Business Combinations”, for further details.

Finite lived intangible assets have a weighted-average amortization period ranging from twelve years to fourteen years. Total amortization expense for the three months ended July 2, 2022 and July 3, 2021 was $58.9 million and $2.4 million, respectively. Total amortization expense for the six months ended July 2, 2022 and July 3, 2021 was $61.4 million and $5.0 million, respectively.

Total renewal costs for patents and trademarks for the three months ended July 2, 2022 and July 3, 2021 were $0.3 million and $0.2 million, respectively. Total renewal costs for patents and trademarks for the six months ended July 2, 2022 and July 3, 2021 were $0.7 million and $0.4 million, respectively. As of July 2, 2022, the weighted-average number of years until the next renewal was two years for patents and six years for trademarks.

Estimated amortization expense for each of the next fiscal years is as follows:


Fiscal year	Amount (in millions)
2022 (balance of year)	$	23.8
2023	43.8
2024	40.4
2025	45.5
2026	40.7
Thereafter	270.3
Total	$	464.5