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Goodwill and Trademarks and Other Intangibles, net
3 Months Ended
Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Trademarks and Other Intangibles, net

4. Goodwill and Trademarks and Other Intangibles, net

Goodwill

There were no changes in goodwill during the Current Quarter or Prior Year Quarter.  The annual evaluation of the Company’s goodwill, by segment, is typically performed as of October 1, the beginning of the Company’s fourth fiscal quarter.  There was no impairment of the Company’s goodwill during the Current Quarter or the Prior Year Quarter.  

Trademarks and Other Intangibles, net

Trademarks and other intangibles, net, consist of the following:

 

 

 

 

 

March 31, 2018

 

 

December 31, 2017

 

 

 

Estimated

Lives in

Years

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

Indefinite-lived trademarks

 

Indefinite

 

$

468,435

 

 

$

 

 

$

465,391

 

 

$

 

Definite-lived trademarks

 

10-15

 

 

8,958

 

 

 

8,927

 

 

 

8,958

 

 

 

8,917

 

Non-compete agreements

 

2-15

 

 

 

 

 

 

 

 

940

 

 

 

940

 

Licensing contracts

 

1-9

 

 

1,034

 

 

 

825

 

 

 

3,412

 

 

 

3,122

 

 

 

 

 

$

478,427

 

 

$

9,752

 

 

$

478,701

 

 

$

12,979

 

Trademarks and other intangibles, net

 

 

 

 

 

 

 

$

468,675

 

 

 

 

 

 

$

465,722

 

 

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, Ed Hardy, Umbro, Modern Amusement, Buffalo, Lee Cooper, Hydraulic and Pony have been determined to have an indefinite useful life.  Each of these intangible assets are tested for impairment annually and as needed on an individual basis bifurcated into separate single units of accounting representing domestic and international assets, with any related impairment charge recorded to the income statement at the time of determining such impairment. The annual evaluation of the Company’s indefinite-lived trademarks is typically performed as of October 1, the beginning of the Company’s fourth fiscal quarter.

 

In accordance with ASC 350, there was no impairment of the indefinite-lived trademarks during the Current Quarter or Prior Year Quarter.  Further, in accordance with ASC 360, there were no impairment charges to the Company’s definite-lived trademarks during the Current Quarter or the Prior Year Quarter.

 

During the Current Quarter, the Company completed the sale of the Badgley Mischka and Sharper Image intellectual property and related assets in the Iconix Southeast Asia, Iconix MENA and Iconix Europe joint ventures.  Refer to Note 6 for further details.

Other amortizable intangibles primarily include non-compete agreements and contracts, which are amortized on a straight-line basis over their estimated useful lives of 1 to 15 years. Certain trademarks are amortized using estimated useful lives of 10 to 15 years with no residual values.

Amortization expense for intangible assets for the Current Quarter was approximately $0.1 million as compared to amortization expense for intangible assets of $0.2 million for the Prior Year Quarter.