GOODWILL AND INTANGIBLES, NET (Tables)

6 Months Ended

Jul. 04, 2015

Schedule of carrying value of all intangible assets

In thousands	Weighted Average Amortization Period	July 4, 2015			January 3, 2015			July 5, 2014

Amortized intangible assets:
Gross carrying amount:
Owned trademarks (a)	--	$	467		$	467		$	2,000
Customer relationships	12 years	7,150			7,422			7,555
Merchandising rights	4 years	13,531			12,012			9,381
Reacquired rights	2 years	14,134			14,371			16,155
Other	4 years	2,322			2,322			2,322

Subtotal		37,604			36,594			37,413

Accumulated amortization:
Owned trademarks		(467		)	(467		)	(300		)
Customer relationships		(4,987		)	(4,769		)	(4,468		)
Merchandising rights		(5,160		)	(4,108		)	(3,301		)
Reacquired rights		(12,389		)	(9,604		)	(7,600		)
Other		(2,264		)	(2,219		)	(2,166		)

Subtotal		(25,267		)	(21,167		)	(17,835		)

Net:
Owned trademarks		--			--			1,700
Customer relationships		2,163			2,653			3,087
Merchandising rights		8,371			7,904			6,080
Reacquired rights		1,745			4,767			8,555
Other		58			103			156

Total amortized intangible assets, net		12,337			15,427			19,578


Unamortized intangible assets:
Owned trademarks		74,900			74,900			74,900

Total intangible assets		$	87,237		$	90,327		$	94,478


Goodwill (b)		$	47,841		$	64,798		$	72,458

^(a)

The change in the balance reflected a non-cash impairment charge of $1.5 million related to the TRIFARI trademark recorded in the fourth quarter of 2014.

^(b)

The decrease in the balance primarily reflected the reclassification of $16.0 million of the goodwill related to the KATE SPADE businesses in Hong Kong, Macau and Taiwan to Investment in unconsolidated subsidiary in the first quarter of 2015 upon closing of the joint venture with Walton Brown (see Note 1 – Basis of Presentation and Note 2 - Acquisition).

Schedule of estimated amortization expense for intangible assets for the next five fiscal years

Fiscal Year		Amortization Expense
(In millions)
2015		$ 7.8
2016		2.8
2017		2.4
2018		1.7
2019		0.5

Schedule of changes in carrying amount of goodwill

In thousands	KATE SPADE International			Adelington Design Group			Total
Balance as of January 3, 2015	$	63,483		$	1,315		$	64,798
Reclassification of goodwill to Investment in unconsolidated subsidiary (a)	(16,009		)	--			(16,009		)
Translation adjustment	(865		)	(83		)	(948		)

Balance as of July 4, 2015	$	46,609		$	1,232		$	47,841

^(a)

Represents the reclassification of the goodwill related to the KATE SPADE businesses in Hong Kong, Macau and Taiwan to Investment in unconsolidated subsidiary in the first quarter of 2015 upon closing of the joint venture with Walton Brown (see Note 1 – Basis of Presentation and Note 2 – Acquisition).

In thousands	KATE SPADE International		Adelington Design Group		Total
Balance as of December 28, 2013	$	47,664	$	1,447	$	49,111
Acquisition of existing KATE SPADE businesses in Southeast Asia	21,836		--		21,836
Translation adjustment	1,504		7		1,511

Balance as of July 5, 2014	$	71,004	$	1,454	$	72,458