6. Intangible Assets

Intangible assets are summarized as follows:


		Gross
	Useful Lives	Carrying		Accumulated		Net Carrying
March 31, 2019	(Years)	Amount		Amortization		Amount
		(in thousands)
Finite-lived intangible assets:
Trademarks	5 - 15	$	12,452	$	(3,144)	$	9,308
Customer agreements	4		2,832		(2,717)		115
Patents	10		361		(323)		38
		$	15,645	$	(6,184)		9,461
Indefinite-lived intangible assets:
Trademarks							793,733
Intangible assets, net						$	803,194


		Gross
	Useful Lives	Carrying		Accumulated		Net Carrying
December 31, 2018	(Years)	Amount		Amortization		Amount
		(in thousands)
Finite-lived intangible assets:
Trademarks	5 - 15	$	12,438	$	(2,689)	$	9,749
Customer agreements	4		2,832		(2,639)		193
Patents	10		361		(321)		40
		$	15,631	$	(5,649)		9,982
Indefinite-lived intangible assets:
Trademarks							954,929
Intangible assets, net						$	964,911

Estimated future annual amortization expense for intangible assets in service as of March 31, 2019 is summarized as follows:


Years Ended December 31,	(in thousands)
2019	$	1,485
2020		1,834
2021		1,831
2022		1,808
2023		1,383
Thereafter		1,120
	$	9,461

Amortization expense was approximately $0.5 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively.

Finite-lived intangible assets represent trademarks, customer agreements and patents related to the Company’s brands. Finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets. The carrying value of finite-lived intangible assets and other long-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Indefinite-lived intangible assets are not amortized, but instead are subject to impairment evaluation. As of March 31, 2019, the trademarks of Martha Stewart, Jessica Simpson, Avia, AND1, Joe’s, GAIAM, Emeril, Caribbean Joe, and Ellen Tracy have been determined to have indefinite useful lives, and accordingly, consistent with ASC Topic 350, no amortization has been recorded in the Company’s unaudited condensed consolidated statements of operations. Instead, each of these intangible assets are tested for impairment annually and as needed on an individual basis as separate single units of accounting, with any related impairment charge recorded to the statement of operations at the time of determining such impairment. The annual evaluation of the Company’s indefinite-lived trademarks is performed as of October 1, the beginning of the Company’s fourth fiscal quarter.

During the three months ended March 31, 2019, the Company recorded non-cash impairment charges of $161.2 million for indefinite-lived intangible assets related to the Martha Stewart and Emeril trademarks. The impairments arose during the sale process for the Martha Stewart and Emeril Lagasse brands (as discussed in Note 11) due to the difference in the fair value as indicated by the sales price as compared to the carrying values of the intangible assets included in the transaction. The sale of the Martha Stewart and Emeril Lagasse brands was approved by the Board of Directors on April 15, 2019, to allow the Company to achieve one of its top priorities in significantly reducing its debt. Going forward the Company’s strategy is to focus on higher margin brands that are well suited for growing health, wellness and beauty categories. The following table shows the change in intangible assets for the three months ended March 31, 2019 (in thousands):


Balance at January 1, 2019	$	964,911
Impairment charges		(161,224)
Amortization		(535)
Additions		42
Balance at March 31, 2019	$	803,194

On April 19, 2018, the Company sold the Revo trademark. The Company incurred a loss on the sale of the trademark of $5.1 million. As of March 31, 2018, the Company wrote down the value of the trademark to the sale price and reclassified the trademark from intangible assets to asset held for sale.