Goodwill And Intangible Assets

6 Months Ended

Jul. 30, 2011

Note 8

Goodwill and Intangible Assets

Goodwill and intangible assets were attributable to the Company's operating segments as follows:


($ thousands)	July 30, 2011		July 31, 2010		January 29, 2011

Famous Footwear	$	2,800	$	2,800	$	2,800
Wholesale Operations		171,299		70,876		67,592
Specialty Retail		200		200		200
	$	174,299	$	73,876	$	70,592

As of July 30, 2011, January 29, 2011 and July 31, 2010, the Company had goodwill and intangible assets of $174.3 million (net of $52.9 million accumulated amortization), $70.6 million (net of $48.7 million accumulated amortization) and $73.9 million (net of $45.4 million accumulated amortization), respectively, primarily related to trademarks. As of July 30, 2011, the Company had goodwill of $61.2 million, with no goodwill as of January 29, 2011 or July 31, 2010. Intangible assets of $42.5 million as of July 30, 2011 and $13.7 million as of January 29, 2011 and July 31, 2010 are not subject to amortization. All remaining intangible assets are subject to amortization and have useful lives ranging from four to 20 years as of July 30, 2011. Amortization expense related to intangible assets was $2.1 million and $1.7 million for the thirteen weeks and $4.2 million and $3.4 million for the twenty-six weeks ended July 30, 2011 and July 31, 2010, respectively.

The increase in the goodwill and intangible assets of the Wholesale Operations segment from January 29, 2011 to July 30, 2011 reflects the Company's purchase price allocation for the acquisition of ASG on February 17, 2011. The Company's purchase price allocation resulted in acquired goodwill of $61.2 million and identifiable intangible assets of $46.7 million. The decline in the intangible assets of the Company's Wholesale Operations segment from July 31, 2010 to January 29, 2011 reflects amortization of licensed and owned trademarks.

The intangible assets associated with our acquisition of ASG will be amortized on a straight-line basis over their estimated useful lives, ranging from four to 20 years, except for the Avia and rykä trademarks, for which an indefinite life has been assigned. A summary of the estimated useful life by intangible asset class as well as the total weighted-average estimated useful life is as follows:

Intangible Assets		Estimated Useful Life (in years)	Initial Fair Value Assigned ($ in millions)

Subject to amortization:
Trademarks		20	$ 7.4
Customer relationships		20	5.3
Licensing agreements		4	5.2
Total(1)		15.4	$ 17.9
(1)	Estimated useful life is calculated as the weighted-average total

Not subject to amortization:
Trademarks		Indefinite	$ 28.8

- Definition

The entire disclosure for 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 (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.

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