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Trademarks, Licenses and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Trademarks, Licenses and Other Intangible Assets

(8)

Trademarks, Licenses and Other Intangible Assets

2022 Gross
Amount Accumulated
Amortization Net Book
Value

Trademarks (indefinite lives) $ 105,022 $ — $ 105,022

Trademarks (finite lives) 41,267 64 41,203

Licenses (finite lives) 205,235 63,535 141,700

Other intangible assets (finite lives) 17,849 14,921 2,928

Subtotal 264,351 78,520 185,831

Total $ 369,373 $ 78,520 $ 290,853

2021 Gross
Amount Accumulated
Amortization Net Book
Value

Trademarks (indefinite lives) $ 119,712 $ — $ 119,712

Trademarks (finite lives) 43,820 68 43,752

Licenses (finite lives) 109,682 62,286 47,396

Other intangible assets (finite lives) 17,775 14,588 3,187

Subtotal 171,277 76,942 94,335

Total $ 290,989 $ 76,942 $ 214,047

Amortization expense was $6.8 million, $5.9 million and $5.3 million in 2022, 2021 and 2020, respectively. Amortization expense is expected to approximate $7.0 million in 2023, $13.3 million in 2024, $12.3 million in 2025, $10.5 million in 2026 and 2027. The weighted average amortization period for trademarks, licenses and other intangible assets with finite lives are 18 years, 14 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 was an impairment charge for trademarks with indefinite useful lives of $6.8 million and $2.4 million in 2022 and 2021, respectively, relating to our Rochas fashion business and an impairment charge for trademarks with indefinite useful lives of $0.9 million in 2022 relating to our Intimate trademark. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 9.80%, 7.47%, and 6.99% as of December 31, 2022, 2021 and 2020, 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 on July 1, 2027 for €70 million (approximately $7 5 million) (residual value) in accordance with an amendment signed in 2021. Because the residual value of the intangible asset exceeds its carrying value, the asset is not being amortized.