Goodwill and Other Intangibles (Notes)

12 Months Ended

Jan. 02, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

The changes during fiscal years 2015 and 2014 in the carrying amount of goodwill and indefinite-lived intangibles, which comprises trademarks and trade names, is as follows:



(In millions)	Goodwill			Indefinite-lived intangibles			Total
Balance at December 28, 2013	$	445.3		$	690.5		$	1,135.8
Foreign currency translation effects	(6.5		)	—			(6.5		)
Balance at January 3, 2015	$	438.8		$	690.5		$	1,129.3
Impairment	—			(5.1		)	(5.1		)
Foreign currency translation effects	(9.7		)	—			(9.7		)
Balance at January 2, 2016	$	429.1		$	685.4		$	1,114.5

In the second quarter of fiscal 2015, the Company recorded a $2.6 million impairment charge for the Cushe^® trade name, due to the decision to wind-down operations of the Cushe^® brand. In the fourth quarter of fiscal 2015, as a result of its annual impairment testing, the Company recorded a $2.5 million impairment charge for the Stride Rite^® trade name.

In addition, the results of our indefinite-lived intangible impairment test based on the Company's outlook for future operating results have given rise to a reduction in the excess of fair value over the carrying value for the Stride Rite^® and Sperry^® trade name indefinite-lived intangible assets. If the operating results continue to decline, the Company may record a non-cash indefinite-lived intangible asset impairment charge in future periods. The carrying value of the Company’s Stride Rite^® and Sperry^® trade name indefinite-lived intangible assets was $15.0 million and $586.8 million, respectively, as of January 2, 2016.

The Company did not recognize any impairment charges for goodwill during fiscal 2015 or for goodwill or indefinite-lived intangible assets during the fiscal years 2014 or 2013, as the annual impairment testing indicated that all reporting unit goodwill and indefinite-lived intangible asset fair values exceeded their respective carrying values.

Amortizable intangible assets are amortized using the straight-line method over their estimated useful lives. They consist primarily of customer relationships, licensing arrangements and developed product technology. The combined gross carrying value and accumulated amortization for these amortizable intangibles is as follows:



	January 2, 2016
(In millions)	Average remaining life (years)	Gross carrying value		Accumulated amortization		Net
Customer relationships	17	$	100.5	$	16.7	$	83.8
Licensing arrangements	1	28.8		22.0		6.8
Developed product technology	2	14.9		9.8		5.1
Other	3	11.2		9.6		1.6
Total		$	155.4	$	58.1	$	97.3



	January 3, 2015
(In millions)	Average remaining life (years)	Gross carrying value		Accumulated amortization		Net
Customer relationships	17	$	100.5	$	11.5	$	89.0
Licensing arrangements	2	28.8		15.2		13.6
Developed product technology	3	14.9		6.8		8.1
Other	2	10.4		9.0		1.4
Total		$	154.6	$	42.5	$	112.1

Amortization expense for other intangible assets was $15.6 million, $15.7 million and $18.4 million for fiscal years 2015, 2014 and 2013, respectively. Estimated aggregate amortization expense for such intangibles for the fiscal years subsequent to January 2, 2016 is as follows:



(In millions)	2016		2017		2018		2019		2020
Amortization expense	$	14.0	$	8.9	$	5.3	$	5.1	$	5.1

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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