Intangible Assets

12 Months Ended

Dec. 31, 2022

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Note 5. Intangible Assets

Intangible assets consist of finite and indefinite life assets and are reported within Other assets in our consolidated balance sheets.

As of November 30, 2022, we performed our annual trade name impairment review and determined no incremental impairment losses existed at the date of this annual assessment. We determined the fair value of the Silversea Cruises trade name exceeded its carrying value by approximately 25% at the date of this annual assessment. We did not perform interim impairment evaluations during the quarters ended March 31, 2022, June 30, 2022, and September 30, 2022 as no triggering events were identified.

The determination of our trade name fair values using a discounted cash flow model and various valuation methods depending on the nature of the intangible asset, such as the relief-from-royalty method, requires the use of assumptions that are subject to risk and uncertainties. The principal assumptions used in the discounted cash flow analyses that support the Silversea Cruises trade name impairment assessment consisted of:

•Forecasted revenues per available passenger cruise day;

•Occupancy rates from existing and expected ship deliveries;

•Terminal growth rate;

•Royalty rate; and

•Weighted average cost of capital (i.e., discount rate).

We determined the Silversea Cruises trade name carrying value exceeded its fair value as of March 31, 2020. Accordingly, we recognized an impairment charge of $30.8 million for the quarter ended March 31, 2020. As of November 30, 2021, we performed our annual trade name impairment review and determined no incremental impairment losses existed.

The following is a summary of our intangible assets as of December 31, 2022 (in thousands, except weighted average amortization period):


	As of December 31, 2022
	Remaining Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Accumulated Impairment Losses		Net Carrying Value
Finite-life intangible assets:
Customer relationships	10.6	$	97,400	$	28,679	$	—	$	68,721
Galapagos operating license	21.6	47,669		11,487		—		36,182
Other finite-life intangible assets	0	11,560		11,560		—		—
Total finite-life intangible assets		156,629		51,726		—		104,903
Indefinite-life intangible assets (1)		352,275		—		30,800		321,475
Total intangible assets, net		$	508,904	$	51,726	$	30,800	$	426,378

(1) Primarily relates to the Silversea Cruises trade name representing approximately $318.7 million.

The following is a summary of our intangible assets as of December 31, 2021 (in thousands, except weighted average amortization period):


	As of December 31, 2021
	Remaining Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Accumulated Impairment Losses		Net Carrying Value
Finite-life intangible assets:
Customer relationships	11.6	$	97,400	$	22,186	$	—	$	75,214
Galapagos operating license	22.6	47,669		9,802		—		37,867
Other finite-life intangible assets	0	11,560		11,560		—		—
Total finite-life intangible assets		156,629		43,548		—		113,081
Indefinite-life intangible assets (1)		352,275		—		30,800		321,475
Total intangible assets, net		$	508,904	$	43,548	$	30,800	$	434,556

(1) Primarily relates to the Silversea Cruises trade name representing approximately $318.7 million.

The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands):


Year
2023	$	8,179
2024	$	8,179
2025	$	8,179
2026	$	8,179
2027	$	8,179