GOODWILL AND INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

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