Goodwill and Other Intangible Assets

12 Months Ended

Apr. 02, 2011

Goodwill and Other Intangible Assets [Abstract]


8.	Goodwill and Other Intangible Assets

As discussed in Note 3, goodwill and certain other intangible assets deemed to have indefinite useful lives are not amortized. Rather, goodwill and such indefinite-lived intangible assets are subject to annual impairment testing. Finite-lived intangible assets continue to be amortized over their respective estimated useful lives. Based on the results of the Company’s annual impairment testing of goodwill and indefinite-lived intangible assets in Fiscal 2011, Fiscal 2010 and Fiscal 2009, no impairment charges were deemed necessary.

Goodwill

The following table details the changes in goodwill for each reportable segment during Fiscal 2011 and Fiscal 2010:


	Wholesale			Retail		Licensing		Total
	(millions)

Balance at March 28, 2009	$	674.1		$	150.8	$	141.5	$	966.4
Acquisition-related activity^(a)		—			—		1.0		1.0
Other adjustments^(b)		(45.8	)		65.0		—		19.2

Balance at April 3, 2010		628.3			215.8		142.5		986.6
Acquisition-related activity^(a)		—			3.8		—		3.8
Other adjustments^(b)		16.8			5.8		3.3		25.9

Balance at April 2, 2011	$	645.1		$	225.4	$	145.8	$	1,016.3


^(a)		Fiscal 2011 acquisition-related activity includes the South Korea Licensed Operations Acquisition. Fiscal 2010 acquisition-related activity primarily includes the Asia-Pacific Licensed Operations Acquisition. See Note 5 for further discussion of the Company’s acquisitions.

^(b)		Fiscal 2011 other adjustments are primarily attributable to changes in foreign currency exchange rates. Fiscal 2010 other adjustments include the reallocation of approximately $65 million of goodwill in connection with the Company’s reclassification of its concessions-based sales arrangements to the Retail segment from the Wholesale segment at the beginning of the fourth quarter, as well as changes in foreign currency exchange rates.

Other Intangible Assets

Other intangible assets consist of the following:


	April 2, 2011							April 3, 2010
	Gross							Gross
	Carrying		Accum.					Carrying		Accum.
	Amount		Amort.			Net		Amount		Amort.			Net
	(millions)

Intangible assets subject to amortization:
Re-acquired licensed trademarks	$	233.2	$	(82.5	)	$	150.7	$	229.4	$	(70.6	)	$	158.8
Customer relationships/lists		278.6		(67.1	)		211.5		244.7		(49.3	)		195.4
Other		24.4		(7.7	)		16.7		7.4		(7.2	)		0.2

Total intangible assets subject to amortization		536.2		(157.3	)		378.9		481.5		(127.1	)		354.4
Intangible assets not subject to amortization:
Trademarks and brands		8.8		—			8.8		8.8		—			8.8

Total intangible assets	$	545.0	$	(157.3	)	$	387.7	$	490.3	$	(127.1	)	$	363.2

Amortization

Based on the amount of intangible assets subject to amortization as of April 2, 2011, the expected amortization for each of the next five fiscal years and thereafter is as follows:


	Amortization
	Expense
	(millions)

Fiscal 2012	$	27.2
Fiscal 2013		26.8
Fiscal 2014		26.8
Fiscal 2015		26.8
Fiscal 2016		26.8
Fiscal 2017 and thereafter		244.5

Total	$	378.9

The expected future amortization expense above reflects weighted-average estimated useful lives of 18.3 years for re-acquired licensed trademarks, 12.8 years for customer relationships/lists and 15.4 years for the Company’s finite-lived intangible assets in total.

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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