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Trademarks, Licenses and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Trademarks, Licenses and Other Intangible Assets

(8)

Trademarks, Licenses and Other Intangible Assets

2020	Gross		Accumulated		Net Book
	Amount		Amortization		Value
Trademarks (indefinite lives)	$	131,962	$	—	$	131,962
Trademarks (finite lives)		47,477		74		47,403
Licenses (finite lives)		93,248		62,262		30,986
Other intangible assets (finite lives)		18,194		14,437		3,757
Subtotal		158,919		76,773		82,146
Total	$	290,881	$	76,773	$	214,108

2019	Gross		Accumulated		Net Book
	Amount		Amortization		Value
Trademarks (indefinite lives)	$	121,001	$	—	$	121,001
Trademarks (finite lives)		43,464		67		43,397
Licenses (finite lives)		88,008		53,714		34,294
Other intangible assets (finite lives)		15,436		12,145		3,291
Subtotal		146,908		65,926		80,982
Total	$	267,909	$	65,926	$	201,983

Amortization expense was $5.3 million, $5.0 million and $7.0 million in 2020, 2019 and 2018, respectively. Amortization expense is expected to approximate $5.4 million in 2021, $3.8 million in 2022 and 2023, and $3.7 million in 2024 and 2025. The weighted average amortization period for trademarks, licenses and other intangible assets with finite lives are 18 years, 15 years and 2 years, respectively, and 14 years on average.

The Company reviews intangible assets with indefinite lives for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There were no impairment charges for trademarks with indefinite useful lives in 2020, 2019 and 2018. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 6.99%, 7.94%, and 6.21% as of December 31, 2020, 2019 and 2018, respectively. The cash flow projections are based upon a number of assumptions, including, future sales levels and future cost of goods and operating expense levels, as well as economic conditions, changes to our business model or changes in consumer acceptance of our products which are more subjective in nature. The Company believes that the assumptions it has made in projecting future cash flows for the evaluations described above are reasonable and currently no other impairment indicators exist for our indefinite-lived assets. However, if future actual results do not meet our expectations, the Company may be required to record an impairment charge, the amount of which could be material to our results of operations.

The cost of trademarks, licenses and other intangible assets with finite lives is being amortized by the straight-line method over the term of the respective license or the intangible assets estimated useful life which range from three to twenty years. If the residual value of a finite life intangible asset exceeds its carrying value, then the asset is not amortized. The Company reviews intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Trademarks (finite lives) primarily represent Lanvin brand names and trademarks and in connection with their purchase, Lanvin was granted the right to repurchase the brand names and trademarks in 2025 for the greater of €70 million (approximately $86 million) or one times the average of the annual sales for the years ending December 31, 2023 and 2024 (residual value). Because the residual value of the intangible asset exceeds its carrying value, the asset is not being amortized.