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Intangible Assets, Net and Goodwill | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] |
NOTE 6 — INTANGIBLE ASSETS, NET AND GOODWILL
INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following:
|  | December 31,
(in thousands) |  | 2023 |  | 2022 |  |
Intangible assets with definite lives: |  |  |  |  |  |
Patents and purchased technology |  | $ | 14,198 |  |  | $ | 14,198 |  |  |
Customer relationships |  | 23,000 |  |  | 23,000 |  |  |
Gross carrying amount |  | 37,198 |  |  | 37,198 |  |  |
Accumulated amortization: |  |  |  |  |  |
Patents and purchased technology |  | (14,198) |  |  | (14,198) |  |  |
Customer relationships |  | (22,313) |  |  | (20,663) |  |  |
Accumulated amortization |  | (36,511) |  |  | (34,861) |  |  |
Net carrying amount |  | 687 |  |  | 2,337 |  |  |
Intangible assets with indefinite lives |  | 79,221 |  |  | 79,221 |  |  |
Intangible assets, net |  | $ | 79,908 |  |  | $ | 81,558 |  |  |
Amortization expense for intangible assets subject to amortization was $1.7 million for each of the years ended December 31, 2023, 2022 and 2021. For the year ended December 31, 2023, there was no impairment recorded for intangible assets with indefinite lives. For the year ended December 31, 2022, an im pairment charge of $18.7 million was recorded for the impairment of prAna's trademar k and trade name (collectively, "trademark"), which is an indefinite-lived intangible asset recorded in the U.S. segment. The impairment of the prAna trademark was determined as part of the annual impairment test. The decline in estimated fair value from the fourth quarter 2021 impairment test reflected a decline in forecasted revenue, a lower estimated royalty rate, and a slightly higher discount rate. For the year ended December 31, 2021, there was no impairment recorded for intangible assets with indefinite lives. The following table presents the remaining estimated annual amortization expense of intangible assets with definite lives:
(in thousands) |
2024 | $ | 687 |
2025 and thereafter | $ | — |
GOODWILL The following table sets forth the changes in Goodwill.
(in thousands) |  |
Balance as of December 31, 2021 |  |  |  |
Gross |  | $ | 73,208 |  |  |
Accumulated impairment losses |  | (4,614) |  |  |
Carrying value |  | 68,594 |  |  |
Impairment losses during 2022 |  | (16,900) |  |  |
Balance as of December 31, 2022 |  |  |  |
Gross |  | 73,208 |  |  |
Accumulated impairment losses |  | (21,514) |  |  |
Carrying value |  | 51,694 |  |  |
Impairment losses during 2023 |  | (25,000) |  |  |
Balance as of December 31, 2023 |  |  |  |
Gross |  | 73,208 |  |  |
Accumulated impairment losses |  | (46,514) |  |  |
Carrying value |  | $ | 26,694 |  |  |
Substantially all of the Company's goodwill is recorded in the U.S. segment. For the years ended December 31 2023 and 2022, the impairment of goodwill attributable to the prAna reporting unit was determined as part of the annual impairment test. The Company estimated the fair value of the prAna reporting unit using a combination of discounted cash flow analysis and market-based valuation methods. Key assumptions used in the discounted cash flow models included the cash flow projections and the discount rate. Cash flow projections are developed in part from our annual planning process. The discount rate reflected the estimated weighted-average cost of capital of the reporting unit from a market-participant perspective. The market-based valuation methods to estimate fair value of the reporting units utilized market multiples for guideline public companies. For the year ended December 31, 2 023 an impairment charge of $25.0 million was recorded. The decline in estimated fair value from the fourth quarter 2022 impairment test reflected an increase in the weighted-average cost of capital used in the discounted cash flow model and lower operating income levels. For the y ear ended December 31, 2022, an impairment charge of $16.9 million was recorded. The decline in estimated fair value from the fourth quarter 2021 impairment test reflected lower assumed revenue and operating income levels, while the weighted-average cost of capital used in the discounted cash flow model remained relatively unchanged. For the year ended December 31, 2021, there was no impairment recorded for goodwill.

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