Goodwill and Intangible Assets, net

Impairment of Goodwill and Intangible Assets —During the first quarter of 2020, as a result of our reduced cash flow projections and the significant decline in our market capitalization as a result of the COVID-19 pandemic, we concluded that sufficient indicators existed to require us to perform an interim quantitative assessment of goodwill and intangible assets. As a result, we recorded goodwill impairment charges of $170.6 million and intangible asset impairment charges of $7.6 million.

During the first quarter of 2020, we recognized goodwill impairment charges of $170.6 million, of which $121.0 million related to our Remington segment, and $49.5 million related to our Premier segment. We engaged a third-party valuation expert to assist us in performing an interim quantitative assessment to determine whether it was more likely than not that the carrying value of goodwill in our reporting units was impaired as of March 31, 2020. The fair value estimates for all reporting units were based on a blended analysis of the present value of future discounted cash flows and the market value approach. See note 7.

Based on our quantitative assessment, we determined that the fair values of Remington and Premier were less than the carrying values of these reporting units. The carrying value of Remington was reduced by a $5.5 million impairment of the Remington trademarks prior to assessing goodwill for impairment. The excess carrying value of Remington and Premier over the estimate of fair value was recorded in “impairment” on our condensed consolidated statements of operations. As of March 31, 2020, our Remington segment had $54.6 million goodwill remaining and our Premier segment had no goodwill remaining.

Intangible Assets

During the first quarter of 2020, we engaged a third-party valuation expert to assist in determining the fair value of our indefinite-lived trademarks. We recognized intangible asset impairment charges of $7.6 million related to trademarks within our Remington and JSAV segments which resulted from changes in estimated future revenues. The Remington and JSAV trademarks were written down to $4.9 million and $1.5 million, respectively, based on a valuation using the relief-from-royalty method.

The changes in the carrying amount of goodwill for the three months ended March 31, 2020, are as follows (in thousands):



	Remington			Premier			JSAV		Corporate and Other		Consolidated
Balance at December 31, 2019	$	143,854		$	49,524		$	10,211	$	2,017	$	205,606
Changes in goodwill:
Adjustments ⁽¹⁾	31,800			—			—		—		31,800
Impairments ⁽²⁾	(121,048		)	(49,524		)	—		—		(170,572		)
Balance at March 31, 2020	$	54,606		$	—		$	10,211	$	2,017	$	66,834

________

⁽¹⁾The adjustment to Remington goodwill relates to changes in our final valuation of the acquired assets and liabilities associated with the acquisition of Remington. See note 4.

⁽²⁾See explanation of impairment charges above.

Intangible assets, net as of March 31, 2020 and December 31, 2019, are as follows (in thousands):



	March 31, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets:
Remington management contracts	$	107,600	$	(5,762	)	$	101,838	$	148,500	$	(2,436	)	$	146,064
Premier management contracts	194,000		(19,980		)	174,020		194,000		(16,830		)	177,170
JSAV customer relationships	9,319		(2,453		)	6,866		9,319		(2,173		)	7,146
RED boat slip rights	3,100		(109		)	2,991		3,100		(70		)	3,030
Pure Wellness customer relationships	175		(105		)	70		175		(96		)	79
Other	47		(7		)	40		44		(3		)	41
	$	314,241	$	(28,416	)	$	285,825	$	355,138	$	(21,608	)	$	333,530

	Gross Carrying Amount		Impairment			Net Carrying Amount		Gross Carrying Amount		Impairment			Net Carrying Amount
Indefinite-lived intangible assets:
Remington trademarks	$	10,400	$	(5,500	)	$	4,900	$	10,300	$	—		$	10,300
JSAV trademarks	3,641		(2,141		)	1,500		3,641		—			3,641
RED trademarks	490		—			490		490		—			490
	$	14,531	$	(7,641	)	$	6,890	$	14,431	$	—		$	14,431

Amortization expense for definite-lived intangible assets was $6.8 million and $3.0 million for the three months ended March 31, 2020 and 2019, respectively. The useful lives of our customer relationships range from 5 to 15 years. Our Remington management contracts, Premier management contracts and boat slip rights intangible assets were assigned useful lives of 22, 30, and 20 years, respectively.