Goodwill and Indefinite-Lived Intangibles (Notes)

9 Months Ended

Oct. 01, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Indefinite-Lived Intangibles

GOODWILL AND INDEFINITE-LIVED INTANGIBLES

The changes in the carrying amount of goodwill are as follows:

	Year-To-Date Ended
(In millions)	October 1, 2022		October 2, 2021
Goodwill balance at beginning of the year	$	556.6	$	442.4
Acquisition of a business (see Note 16)	—		117.4
Foreign currency translation effects	(30.1)		(4.3)
Goodwill balance at end of the quarter	$	526.5	$	555.5

The Company’s indefinite-lived intangible assets, which comprise trade names and trademarks, totaled $658.6 million, $718.1 million, and $718.3 million as of October 1, 2022, January 1, 2022, and October 2, 2021, respectively. The carrying values of the Company’s Sperry® and Sweaty Betty® trade names were $296.0 million and $276.3 million, respectively, as of October 1, 2022. Based on the interim impairment assessment as of October 1, 2022, it was determined that there were no triggering events indicating impairment of the Company’s goodwill and indefinite-lived intangible assets. The risk of future non-cash impairment for the Sperry® and Sweaty Betty® trade names is dependent on whether actual results differ from the key assumptions used in the determination of the trade name's fair value, such as revenue growth, earnings before interest, taxes, depreciation and amortization ("EBITDA") margin, discount rate, and assumed tax rate, or if macroeconomic conditions deteriorate and adversely affect the values of the Company's Sperry® and Sweaty Betty® trade names.