Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Note 9. Goodwill and Intangible Assets

Goodwill at March 31, 2020 decreased to $200,787,000 from $203,743,000 at December 31, 2019. This $2,956,000 decrease was primarily due changes in foreign currency rates period over period. The Company's goodwill is reported in both the Golf Equipment and Apparel, Gear and Other operating segments (see Note 19).

In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” the Company’s goodwill and non-amortizing intangible assets are subject to an annual impairment test or more frequently when impairment indicators are present. The Company considered the recent economic impacts caused by the COVID-19 pandemic, combined with the fact that the historical fair value of its reporting units has exceeded their carrying values, and concluded there was no impairment as of March 31, 2020. As such, there were no impairment charges recognized during the three months ended March 31, 2020 as well as in the comparable period in 2019. Due to the economic uncertainty created by the COVID-19 pandemic, the Company will continue to monitor the impacts of COVID-19 on its business as new developments occur.

The following sets forth the intangible assets by major asset class (dollars in thousands):



	Useful Life (Years)	March 31, 2020							December 31, 2019
	Useful Life (Years)	Gross⁽¹⁾		Accumulated Amortization			Net Book Value		Gross		Accumulated Amortization			Net Book Value
Indefinite-lived:
Trade name, trademark, trade dress and other	NA	$	450,015		$	—	$	450,015	$	453,837		$	—	$	453,837
Amortizing:
Patents	2-16	31,581			31,581		—		31,581			31,581		—
Customer and distributor relationships and other	1-10	53,683			15,834		37,849		53,904			14,318		39,586
Total intangible assets		$	535,279		$	47,415	$	487,864	$	539,322		$	45,899	$	493,423

(1) The gross balance of intangible assets as of March 31, 2020 includes a reduction due to the impact of foreign exchange rates of $3,822,000 on the Jack Wolfskin non-amortizing intangible asset, as well as $557,000 on the amortizing customer and distributor relationships.

Aggregate amortization expense on intangible assets was approximately $1,180,000 and $1,220,000 for the three months ended March 31, 2020 and 2019, respectively.

Amortization expense related to intangible assets at March 31, 2020 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):



Remainder of 2020	$	3,584
2021	4,724
2022	4,548
2023	4,409
2024	4,409
Thereafter	16,175
	$	37,849