Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2011

Intangible Assets and Goodwill [Abstract]

Note 10—Intangible Assets and Goodwill

The following tables set forth intangible assets at December 31, 2011 and January 1, 2011 and the activity in the intangible asset accounts during Fiscal 2011 and Fiscal 2010:


	December 31, 2011						January 1, 2011
	Gross Carrying		Accumulated				Gross Carrying		Accumulated
	Amount		Amortization		Net		Amount		Amortization		Net
Finite-lived intangible assets:
Licenses for a term (Company as licensee)	$	323,950	$	99,229	$	224,721	$	327,394	$	54,907	$	272,487
Other		34,459		14,932		19,527		34,258		11,297		22,961

		358,409		114,161		244,248		361,652		66,204		295,448

Indefinite-lived intangible assets:
Trademarks		53,519		—		53,519		54,715		—		54,715
Licenses in perpetuity		23,113		—		23,113		23,113		—		23,113

		76,632		—		76,632		77,828		—		77,828

Intangible Assets	$	435,041	$	114,161	$	320,880	$	439,480	$	66,204	$	373,276


										Other
				Licenses			Licenses			Finite-lived
				in			for a			Intangible
	Trademarks			Perpetuity			Term			Assets			Total
Balance at January 2, 2010	$	56,719		$	23,951		$	284,121		$	12,040		$	376,831
Amortization expense		—			—			(8,639	)		(2,910	)		(11,549	)
Translation adjustments		—			—			(1,147	)		(1,189	)		(2,336	)
Recapture of tax basis (a)		(2,004	)		(838	)		(1,848	)		(420	)		(5,110	)
Acquisitions (b)		—			—			—			15,096			15,096
Other		—			—			—			344			344

Balance at January 1, 2011		54,715			23,113			272,487			22,961			373,276
Amortization expense (c)		—			—			(44,322	)		(3,635	)		(47,957	)
Translation adjustments		—			—			(5,944	)		(872	)		(6,816	)
Acquisitions (d)		—			—			2,500			1,073			3,573
Tax benefit (e)		(1,196	)		—			—			—			(1,196	)

Balance at December 31, 2011	$	53,519		$	23,113		$	224,721		$	19,527		$	320,880


(a)		Relates to the correction of errors in prior period deferred tax balances associated with the recapture of cancellation of indebtedness income which had been deferred in connection with the Company’s bankruptcy proceedings in 2003.

(b)		During Fiscal 2010, the Company completed the accounting for the acquisition of certain store assets in Brazil (see Note 2 of Notes to Consolidated Financial Statements), which had been recorded as intangible assets of $3,592 on the date of acquisition during the fourth quarter of Fiscal 2009. During Fiscal 2010, the Company reclassified those assets as prepaid rent (included in Other assets on the Company’s Consolidated Balance Sheet). In addition, during Fiscal 2010, the Company recorded reacquired rights of $360 related to its acquisition of businesses in the People’s Republic of China and amortized that intangible asset to selling, general and administrative expense during Fiscal 2010. The Company also recorded reacquired rights of $18,328, which is being amortized over an eight year period, in connection with the acquisition of its Italian distributor in Fiscal 2010 (see Note 2 of Notes to Consolidated Financial Statements).

(c)		Includes $35,225 related to the impairment of the Company’s licenses related to its CK/Calvin Klein bridge businesses. See Note 1 — Significant Accounting Policies — Long-lived Assets and Goodwill and Other Intangible Assets and Note 4 — Restructuring expense and Other Exit Costs of Notes to Consolidated Financial Statements.

(d)		Relates to intangible assets totaling $3,573 for reacquired rights and amendment of a license during Fiscal 2011, which will be amortized over a weighted average period of 25 years (see Note 2 of Notes to Consolidated Financial Statements).

(e)		Relates to a tax benefit realized for the excess of tax deductible goodwill over book goodwill in certain jurisdictions that arose prior to the Effective Date.

The following table summarizes the Company’s estimated amortization expense for intangible assets for the next five years:


2012	$	10,313
2013		10,224
2014		9,136
2015		9,114
2016		9,057

The following table summarizes the changes in the carrying amount of goodwill for Fiscal 2011 and Fiscal 2010:


	Sportswear			Intimate			Swimwear
	Group			Apparel Group			Group		Total
Goodwill balance at January 2, 2010	$	108,633		$	1,446		$	642	$	110,721
Adjustment:
Translation adjustments		(3,182	)		57			—		(3,125	)
Other (a)		7,565			117			—		7,682

Goodwill balance at January 1, 2011		113,016			1,620			642		115,278
Adjustment:
Translation adjustments		(8,135	)		(741	)		—		(8,876	)
Other (b)		29,514			4,032			—		33,546

Goodwill balance at December 31, 2011	$	134,395		$	4,911		$	642	$	139,948


(a)		Relates to the acquisition of businesses in the People’s Republic of China during Fiscal 2010 ($683 in Sportswear Group and $117 in Intimate Apparel Group) and in Italy ($6,882 in the Sportswear Group) (see Note 2 of Notes to Consolidated Financial Statements).

(b)		Primarily relates to the acquisition of a controlling interest in the business of the Company’s distributor of Calvin Klein products in India during Fiscal 2011 ($28,898 in Sportswear Group and $3,930 in Intimate Apparel Group) (see Note 2 of Notes to Consolidated Financial Statements).

- 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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