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GOODWILL AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2011
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

        Goodwill represents the excess of the purchase price and related costs over the value assigned to net tangible and identifiable intangible assets of businesses acquired and accounted for under the purchase method. Accounting rules require that we test at least annually for possible goodwill impairment. We perform our test in the fourth fiscal quarter of each year using a discounted cash flow analysis that requires that certain assumptions and estimates be made regarding industry economic factors and future profitability and cash flows. As a result of the 2009 impairment analysis, we determined that the goodwill balance existing in our retail segment was impaired as a result of decreases in projected revenues and profitability for the segment. Accordingly, we recorded an impairment charge of $120.6 million.

        The following table presents, by segment and in total, changes in the carrying amount of goodwill for 2010 and 2011. With the addition of Kurt Geiger on June 2, 2011, we have redefined our reportable operating segments (see "Segment Information"). As a result, we have reallocated goodwill based on the current segment structure and have restated the goodwill by segment for all periods presented.

(In millions)   Domestic Wholesale Sportswear     Domestic Wholesale Jeanswear     Domestic Wholesale Footwear & Accessories     Domestic Retail     International Wholesale     International Retail     Total  
Balance, January 1, 2010                                          
  Goodwill $ 40.1   $ 519.2   $ 813.2   $ 120.6   $ -   $ -   $ 1,493.1  
  Accumulated impairment losses   -     (519.2 )   (813.2 )   (120.6 )   -     -     (1,453.0 )
  Net goodwill   40.1     -     -     -     -     -     40.1  
  Acquisition of Moda   6.6     -     -     -     -     -     6.6  
  Acquisition of SWH   -     -     46.6     -     68.5     -     115.1  
Balance, December 31, 2010                                          
  Goodwill   46.7     519.2     859.8      120.6     68.5     -     1,614.8  
  Accumulated impairment losses   -     (519.2 )   (813.2 )   (120.6 )   -     -     (1,453.0 )
  Net goodwill   46.7     -     46.6     -     68.5     -     161.8  
  Acquisition of Kurt Geiger   -     -     -     -     45.8     53.5     99.3  
  Foreign currency translation effects   -     -     -     -     (2.7 )   (3.1 )   (5.8 )
Balance, December 31, 2011                                          
  Goodwill   46.7     519.2     859.8     120.6     111.6     50.4     1,708.3  
  Accumulated impairment losses   -     (519.2 )   (813.2 )   (120.6 )   -     -     (1,453.0 )
  Net goodwill $ 46.7   $ -   $ 46.6   $ -   $ 111.6   $ 50.4   $ 255.3  

        We also perform our annual impairment test for indefinite-lived trademarks during the fourth fiscal quarter of the year. As a result of these analyses, we recorded trademark impairment charges of $31.5 million, $37.6 million and $28.7 million for 2011, 2010 and 2009, respectively, as a result of decreases in projected revenues for certain brands. All trademark impairment charges are reported as SG&A expenses in the licensing, other and eliminations segment.

        The components of other intangible assets are as follows:

December 31,   2011   2010
(In millions)     Gross Carrying Amount     Accumulated Amortization   Gross Carrying Amount     Accumulated Amortization
Amortized intangible assets                        
    License agreements   61.4   $ 52.4   $ 61.4   $ 50.2
    Customer relationships     146.3     8.3     28.1     1.9
    Trademarks     17.1     1.6     17.0     0.8
    Acquired order backlog     2.6     2.6     10.5     10.4
    Acquired favorable leases     12.8     2.0     6.4     0.4
   Covenants not to compete     3.8     1.4   3.8     0.5
    244.0     68.3     127.2     64.2
Indefinite-life trademarks     721.7     -     663.7     -
  $ 965.7   $ 68.3   $ 790.9   $ 64.2

        Amortization expense for intangible assets subject to amortization was $14.8 million, $18.1 million and $2.3 million for 2011, 2010 and 2009, respectively. Amortization expense for intangible assets subject to amortization for each of the years in the five-year period ending December 31, 2016 is estimated to be $15.4 million in 2012, $15.0 million in 2013, $15.0 million in 2014, $13.6 million in 2015 and $13.2 million in 2016.

        The cash flow models we use to estimate the fair values of our goodwill and trademarks involve several assumptions. Changes in these assumptions could materially impact our fair value estimates. Assumptions critical to our fair value estimates are: (i) discount rates used to derive the present value factors used in determining the fair value of the reporting units and trademarks; (ii) royalty rates used in our trademark valuations; (iii) projected revenue growth rates; and (iv) projected long-term growth rates used in the derivation of terminal year values. These and other assumptions are impacted by economic conditions and expectations of management and may change in the future based on period-specific facts and circumstances. The following table shows the assumptions we used to derive our fair value estimates as part of our annual impairment testing for 2011 and 2010.

2011   2010
  Goodwill Trademarks   Goodwill Trademarks
Discount rates 11.0% 11.0%   13.5% 13.5%
Royalty rates -- 4.0% - 8.0%   -- 4.0% - 7.0%
Weighted-average revenue growth rates 10.6% 5.6%   6.6% 4.4%
Long-term growth rates 3.0% 0% - 3.0%   3.0% 0% - 3.0%

        While the fair value of each operating segment at December 31, 2011 significantly exceeded the segment's carrying value, should economic conditions and trends (such as reduced consumer spending or the failure to achieve projected results) deteriorate throughout 2012 and beyond, especially in the United Kingdom and Europe, the carrying values of trademarks and goodwill could become impaired.