Trademarks and Other Intangibles, net

9 Months Ended

Sep. 30, 2011

2. Trademarks and Other Intangibles, net

Trademarks and other intangibles, net consist of the following:

		September 30, 2011				December 31, 2010
	Estimated	Gross				Gross
	Lives in	Carrying		Accumulated		Carrying		Accumulated
(000's omitted)	Years	Amount		Amortization		Amount		Amortization

Indefinite life trademarks and copyrights	Indefinite	$	1,471,028	$	-	$	1,373,277	$	-
Definite life trademarks	10-15		19,591		6,260		19,579		5,169
Non-compete agreements	2-15		10,475		10,112		10,475		9,092
Licensing agreements	1-9		31,103		21,851		30,103		18,640
Domain names	5		570		570		570		553
		$	1,532,767	$	38,793	$	1,434,004	$	33,454

In April 2011, the Company completed a transaction in which Hardy Way acquired substantially all of the licensing rights to the Ed Hardy brands and trademarks from its licensee. Also, as part of this transaction, the Company increased its ownership interest in Hardy Way to an 85% controlling interest. In accordance with ASC Topic 810, as of April 2011 the assets and liabilities and results of operations of Hardy Way have been consolidated with the Company. As a result of this transaction, the Company increased its indefinite life trademarks by $96.5 million and its licensing agreements by $1.0 million. See Note 3 for further explanation of this transaction.

In June 2010, the Company completed a transaction in which it acquired an 80% controlling interest in Peanuts Worldwide, owner of the Peanuts portfolio of brands and related assets, through its wholly-owned subsidiary, Icon Entertainment LLC. As a result of this transaction, the Company increased its indefinite life trademarks by $153.0 million and its licensing agreements by $1.1 million. See Note 3 for further explanation of this transaction.

Amortization expense for intangible assets for the Current Quarter and the three months ended September 30, 2010 (“Prior Year Quarter”) was $1.7 million and $2.3 million, respectively, and $5.3 million and $6.5 million for the Current Nine Months and the nine months ended September 30, 2010 (“Prior Year Nine Months”), respectively. The trademarks of Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific, Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko, Zoo York, Peanuts and Ed Hardy have been determined to have an indefinite useful life and accordingly, consistent with ASC Topic 350, no amortization has been recorded in the Company's unaudited condensed consolidated income statements. Instead, each of these intangible assets are tested for impairment at least annually 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. Similarly, consistent with ASC Topic 360, there was no impairment of the definite-lived trademarks.