Goodwill and Intangible Assets

12 Months Ended

Jan. 28, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets were as follows:



($ thousands)	January 28, 2017			January 30, 2016

Intangible Assets
Famous Footwear	$	2,800		$	2,800
Brand Portfolio	286,488			183,068
Total intangible assets	289,288			185,868
Accumulated amortization	(72,628		)	(68,923		)
Total intangible assets, net	216,660			116,945
Goodwill
Brand Portfolio	127,098			13,954
Total goodwill	127,098			13,954
Goodwill and intangible assets, net	$	343,758		$	130,899

As further described in Note 2 to the consolidated financial statements, the Company acquired Allen Edmonds on December 13, 2016. The preliminary allocation of the purchase price resulted in incremental intangible assets of $103.4 million, consisting of trademarks and customer relationships of $97.3 million and $6.1 million, respectively, and incremental goodwill of $113.1 million.

The Company's intangible assets as of January 28, 2017 and January 30, 2016 were as follows:



($ thousands)		January 28, 2017
	Estimated Useful Lives	Original Cost		Accumulated Amortization				Net Carrying Value
Trademarks	15-40 years	$	165,288	$	72,604			$	92,684
Trademarks	Indefinite	117,900		—				117,900
Customer relationships	15 years	6,100		24		⁽¹	⁾	6,076
		$	289,288	$	72,628			$	216,660
(1) The customer relationships intangible asset was acquired in the Allen Edmonds acquisition, as further discussed in Note 2 to the consolidated financial statements. The accumulated amortization represents amortization from the acquisition date through January 28, 2017.



		January 30, 2016
	Estimated Useful Lives	Original Cost		Accumulated Amortization		Net Carrying Value
Trademarks	15-40 years	$	165,068	$	68,923	$	96,145
Trademarks	Indefinite	20,800		—		20,800
		$	185,868	$	68,923	$	116,945

Amortization expense related to intangible assets was $3.7 million in 2016 and 2015 and $4.0 million in 2014. The Company estimates $3.9 million of amortization expense related to intangible assets in each of the years from 2017 through 2021. As a result of its annual impairment testing, the Company did not record any impairment charges during 2016, 2015 and 2014 related to intangible assets.

Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired, using either the qualitative assessment or a fair value-based test, as further discussed in Note 1 to the consolidated financial statements. The Company performed a goodwill impairment test as of the first day of the Company’s fourth fiscal quarter and determined that it was more likely than not that the fair value of the reporting units exceeded the carrying value. As a result, the Company was not required to perform the discounted cash flow analysis.

Indefinite-lived intangible assets are tested for impairment as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. The indefinite-lived intangible asset impairment reviews resulted 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.

+ References + Details