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Intangible Assets and Goodwill | 9 Months Ended
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Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Our indefinite-lived intangible assets that are not amortized consisted of $150.8 million and $216.0 million of Playboy-branded trademarks and acquired trade names as of September 30, 2023 and December 31, 2022, respectively. Capitalized trademark costs include costs associated with the acquisition, registration and/or renewal of our trademarks. We expense certain costs associated with the defense of our trademarks. Registration and renewal costs that were capitalized during each of the three and nine months ended September 30, 2023 and 2022 were immaterial. As a result of ongoing impacts to our revenue, including declines in consumer demand and discontinued operations, we recorded non-cash asset impairment charges, at the impairment date in the second quarter of 2023, related to the write-down of goodwill of $66.7 million, to indefinite-lived trademarks of $65.5 million, and to trade names and other assets of $5.1 million. At the impairment date in the third quarter of 2022, we recorded non-cash asset impairment charges related to a write-down of goodwill by $117.4 million (excluding $16.4 million of impairment charges related to discontinued operations), a write-down of indefinite-lived trademarks by $116.0 million, and a write-down of trade names and other assets by $45.8 million (excluding $8.3 million of impairment charges related to discontinued operations). The table below summarizes our intangible assets, net (in thousands). The table excludes $0.4 million and $0.5 million of other intangible assets, net included in assets held for sale in the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022, respectively. Refer to Note 3, Assets and Liabilities Held for Sale and Discontinued Operations.
| September 30, 2023 |  | December 31, 2022
Digital assets | $ | 5 |  |  | $ | 327 |
Total amortizable intangible assets, net | 12,495 |  |  | 19,796 |
Total indefinite-lived intangible assets | 150,829 |  |  | 216,014 |
Total | $ | 163,329 |  |  | $ | 236,137 |
Impairment charges related to our digital assets, which were comprised of the cryptocurrency “Ethereum” a s of September 30, 2023 and December 31, 2022, were immaterial for the three and nine months ended September 30, 2023. Impairment charges related to our digital assets were immaterial for the three months ended September 30, 2022, and $4.9 million for the nine months ended September 30, 2022. Our amortizable intangible assets, excluding assets classified as held for sale in the condensed consolidated balance sheets, consisted of the following (in thousands):
| Weighted-Average Life (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Accumulated Impairments* |  | Net Carrying Amount
September 30, 2023 |  |  |  |  |  |  |  |  |
Trade names | 12 |  | $ | 65,409 |  |  | $ | (7,659) |  |  | $ | (45,854) |  |  | $ | 11,896 |
Distribution agreements | 15 |  | 3,720 |  |  | (3,121) |  |  | — |  |  | 599 |
Total |  |  | $ | 69,129 |  |  | $ | (10,780) |  |  | $ | (45,854) |  |  | $ | 12,495 |
*Includes trade name impairment charges of $5.1 million during the nine months ended September 30, 2023. The table below excludes TLA’s customer lists and Yandy’s trade names as these were included in assets held for sale in the condensed consolidated balance sheets as of December 31, 2022.
| Weighted- Average Life (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Accumulated Impairments |  | Net Carrying Amount
December 31, 2022 |  |  |  |  |  |  |  |  |
Trade names | 12 |  | $ | 74,625 |  |  | $ | (6,881) |  |  | $ | (48,733) |  |  | $ | 19,011 |
Distribution agreements | 15 |  | 3,720 |  |  | (2,935) |  |  | — |  |  | 785 |
Developed technology | 3 |  | 2,300 |  |  | (2,300) |  |  | — |  |  | — |
Total |  |  | $ | 80,645 |  |  | $ | (12,116) |  |  | $ | (48,733) |  |  | $ | 19,796 |
The aggregate amortization expense for definite-lived intangible assets included in loss from continuing operations was $0.4 million and $2.7 million for the three months ended September 30, 2023 and 2022, respectively. Amortization expense for definite-lived intangible assets attributable to discontinued operations was immaterial for the three months ended September 30, 2023 and 2022. The aggregate amortization expense for definite-lived intangible assets included in the continuing operations was $1.4 million and $6.3 million for the nine months ended September 30, 2023 and 2022, respectively. Amortization expense for definite-lived intangible assets attributable to discontinued operations was immaterial for the nine months ended September 30, 2023 and 2022. As of September 30, 2023, expected amortization expense relating to definite-lived intangible assets for each of the next five years and thereafter is as follows (in thousands):
Remainder of 2023 | $ | 352 |
2024 | 1,409 |
2025 | 1,409 |
2026 | 1,202 |
2027 | 1,161 |
Thereafter | 6,962 |
Total | $ | 12,495 |
Goodwill Changes in the carrying value of goodwill for the nine months ended September 30, 2023 were as follows (in thousands):
| Gross Goodwill |  | Impairments |  | Net Goodwill
Balance at December 31, 2022 | $ | 257,545 |  |  | $ | (134,328) |  |  | $ | 123,217 |
Foreign currency translation adjustment in relation to Honey Birdette | (2,837) |  |  |  |  | (2,837) |
Impairments* |  |  | (66,660) |  |  | (66,660) |
Balance at September 30, 2023 | $ | 254,708 |  |  | $ | (200,988) |  |  | $ | 53,720 |
*Goodwill impairment charges recorded during the nine months ended September 30, 2023 were $67.5 million. The difference from the amount shown in the table is due to foreign currency translation. Changes in the recorded carrying value of goodwill for the nine months ended September 30, 2023 by reportable segment were as follows:
| Direct-to-Consumer |  | Licensing |  | Digital Subscriptions and Content
Balance at December 31, 2022 | $ | 90,117 |  |  | $ | — |  |  | $ | 33,100 |
Foreign currency translation and other adjustments | (2,837) |  |  | — |  |  | — |
Impairments* | (66,660) |  |  | — |  |  | — |
Balance at September 30, 2023 | $ | 20,620 |  |  | $ | — |  |  | $ | 33,100 |
*Goodwill impairment charges recorded during the nine months ended September 30, 2023 were $67.5 million. The difference from the amount shown in the table is due to foreign currency translation.

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