Goodwill And Intangible Assets

12 Months Ended

Jan. 28, 2012

Goodwill And Intangible Assets [Abstract]

10.	GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets were as follows:


($ thousands)	January 28, 2012			January 29, 2011
Intangible Assets
Famous Footwear	$	2,800		$	2,800
Wholesale Operations		155,003			116,308
Specialty Retail		200			200
Total intangible assets		158,003			119,308
Accumulated amortization		(57,017	)		(48,716	)
Total intangible assets, net		100,986			70,592
Goodwill
Wholesale Operations		39,604			–
Total Goodwill		39,604			–
Goodwill and intangible assets, net	$	140,590		$	70,592

Intangible assets of $42.5 million as of January 28, 2012 and $13.7 million as of January 29, 2011 are not subject to amortization. All remaining intangible assets are subject to amortization and have useful lives ranging from four to 20 years. Amortization expense related to intangible assets was $8.3 million, $6.7 million and $6.8 million in 2011, 2010 and 2009, respectively. The Company estimates the following amortization expense related to intangible assets: $7.6 million in 2012, 2013, 2014 and $6.7 million in 2015 and 2016.

The increase in the goodwill and intangible assets of the Wholesale Operations segment from January 29, 2011 to January 28, 2012 reflects the Company's purchase of ASG on February 17, 2011 and the subsequent sale of TBMC on October 25, 2011. The Company's purchase of ASG resulted in goodwill of $61.2 million and intangible assets of $46.7 million. The Company's sale of TBMC resulted in the elimination of $21.6 million of goodwill and $8.0 million of intangible assets.

The remaining intangible assets associated with the Company's acquisition of ASG, after the sale of TBMC, 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 lives of intangible assets associated with the acquisition of ASG by class, excluding intangible assets related to TBMC, which were sold during 2011, as well as the total weighted-average estimated useful life is as follows:

Intangible Assets	Estimated Useful Life (in years)	Initial Fair Value ($ in millions)
Subject to amortization
Trademarks	20	$ 1.2
Customer relationships	20	4.6
Licensing agreements	4	3.6
Total(1)	14	$ 9.4
Not subject to amortization
Trademarks	Indefinite	$ 28.8
(1) Estimated useful life is calculated as the weighted-average total

As a result of annual impairment testing, the Company did not record any impairment charges during 2011 and 2010 related to intangible assets.

Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired. A fair-value-based test is applied at the reporting unit level and compares the fair value of the reporting unit, with attributable goodwill, to the carrying value of such reporting unit. This test requires various judgments and estimates. The fair value of goodwill is determined using an estimate of future cash flows of the reporting unit and a risk-adjusted discount rate to compute a net present value of future cash flows. An adjustment will be recorded for any goodwill that is determined to be impaired. Impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized and unrecognized assets and liabilities of the reporting unit. The Company performed a goodwill impairment test as of October 29, 2011, resulting in no impairment charges.

- 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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