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GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The changes in goodwill for the years ended December 31, 2022 and 2021 were:
| Goodwill
| (in thousands)
Balance at December 31, 2020 | $ | 1,719 |
Foreign currency translation (1) | (119) |
Balance at December 31, 2021 | 1,600 |
HEYDUDE Acquisition | 713,308 |
Foreign currency translation (1) | (94) |
Balance at December 31, 2022 | $ | 714,814 |
(1) Foreign currency translation only relates to the goodwill in our EMEALA operating segment, as described below. In the year ended December 31, 2022, there was an addition to our goodwill as a result of the acquisition of HEYDUDE. As of December 31, 2022, EMEALA and the HEYDUDE Brand had goodwill balances of $1.5 million and $713.3 million, respectively. In the year ended December 31, 2021, there were no changes to our goodwill aside from insignificant changes related to foreign currency translation. At December 31, 2022, accumulated goodwill impairment was $0.8 million. Intangible Assets, Net ‘Intangible assets, net’ reported in the consolidated balance sheets consist of the following:
| December 31, 2022 |  | December 31, 2021
| Gross |  | Accum. Amortiz. |  | Net |  | Gross |  | Accum. Amortiz. |  | Net
| (in thousands)
Intangible assets subject to amortization: |  |  |  |  |  |  |  |  |  |  |
Capitalized software | $ | 132,295 |  |  | $ | (109,227) |  |  | $ | 23,068 |  |  | $ | 128,843 |  |  | $ | (104,637) |  |  | $ | 24,206 |
Customer relationships | 210,000 |  |  | (12,250) |  |  | 197,750 |  |  | — |  |  | — |  |  | — |
Patents, copyrights, and trademarks | 5,124 |  |  | (3,537) |  |  | 1,587 |  |  | 4,308 |  |  | (3,530) |  |  | 778 |
Intangible assets not subject to amortization: |  |  |  |  |  |  |  |  |  |  |
HEYDUDE trademark | 1,570,000 |  |  | — |  |  | 1,570,000 |  |  | — |  |  | — |  |  | — |
In progress | 7,537 |  |  | — |  |  | 7,537 |  |  | 3,739 |  |  | — |  |  | 3,739 |
Other | 225 |  |  | — |  |  | 225 |  |  | 79 |  |  | — |  |  | 79 |
Total | $ | 1,925,181 |  |  | $ | (125,014) |  |  | $ | 1,800,167 |  |  | $ | 136,969 |  |  | $ | (108,167) |  |  | $ | 28,802 |
At December 31, 2022, the weighted average remaining useful life of intangibles subject to amortization was approximately 14.0 years. Amortization Expense Amortization expense related to definite-lived intangible assets, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in thousands)
Cost of sales | $ | 2,366 |  |  | $ | 4,779 |  |  | $ | 3,975 |
Selling, general and administrative expenses | 17,221 |  |  | 12,255 |  |  | 11,809 |
Total amortization expense | $ | 19,587 |  |  | $ | 17,034 |  |  | $ | 15,784 |
Estimated future annual amortization expense of intangible assets is:
| As of December 31, 2022
| (in thousands)
2023 | $ | 21,826 |
2024 | 20,290 |
2025 | 18,962 |
2026 | 17,493 |
2027 | 15,490 |
Thereafter | 128,344 |
Total | $ | 222,405 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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