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GOODWILL AND OTHER INTANGIBLE ASSETS
 3 Months Ended
May 05, 2013
Notes to Financial Statements [Abstract]  
GOODWILL
GOODWILL AND OTHER INTANGIBLE ASSETS

The acquisition of Warnaco has significantly impacted the way the Company and its chief operating decision maker manage and analyze its operating results. As such, the Company has changed its reportable segments. Please see Note 18, “Segment Data,” for a further discussion. This change in segments resulted in a reallocation of goodwill amongst some of the Company’s reportable segments. Prior period data has been retrospectively adjusted to reflect this reallocation.

The changes in the carrying amount of goodwill for the thirteen weeks ended May 5, 2013, by segment, were as follows:

 
Calvin Klein North America
 
Calvin Klein International
 
Tommy Hilfiger North America
 
Tommy Hilfiger International
 
Heritage Brands Wholesale
 
Total
Balance as of February 3, 2013
 
 
 
 
 
 
 
 
 
 
 
Goodwill, gross
$
207,083

 
$
201,542

 
$
198,501

 
$
1,196,619

 
$
155,142

 
$
1,958,887

Accumulated impairment losses
—

 
—

 
—

 
—

 
—

 
—

Goodwill, net
207,083

 
201,542

 
198,501

 
1,196,619

 
155,142

 
1,958,887

Contingent purchase price payments to Mr. Calvin Klein
7,629

 
5,137

 
—

 
—

 
—

 
12,766

Goodwill from acquisition of Warnaco
441,671

 
864,697

 
—

 
—

 
93,064

 
1,399,432

Currency translation
1,933

 
(6,348
)
 
—

 
(46,454
)
 
309

 
(50,560
)
Balance as of May 5, 2013
 
 
 
 
 
 
 
 
 
 
 
Goodwill, gross
658,316

 
1,065,028

 
198,501

 
1,150,165

 
248,515

 
3,320,525

Accumulated impairment losses
—

 
—

 
—

 
—

 
—

 
—

Goodwill, net
$
658,316

 
$
1,065,028

 
$
198,501

 
$
1,150,165

 
$
248,515

 
$
3,320,525



The Company is required to make contingent purchase price payments to Mr. Calvin Klein in connection with the Company’s acquisition in 2003 of all of the issued and outstanding stock of Calvin Klein, Inc. and certain affiliated companies (collectively, “Calvin Klein”). Such payments are based on 1.15% of total worldwide net sales, as defined in the acquisition agreement (as amended), of products bearing any of the Calvin Klein brands and are required to be made with respect to sales made through February 12, 2018. A significant portion of the sales on which the payments to Mr. Klein are made are wholesale sales by the Company and its licensees and other partners to retailers.

The Company’s intangible assets consisted of the following:
 
5/5/13
 
2/3/13
 
4/29/12
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Intangible assets subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationships(1)
$
334,418

 
$
(47,582
)
 
$
286,836

 
$
190,383

 
$
(41,158
)
 
$
149,225

 
$
180,107

 
$
(32,328
)
 
$
147,779

Covenants not to compete
2,220

 
(2,220
)
 
—

 
2,220

 
(2,220
)
 
—

 
2,220

 
(2,175
)
 
45

Order backlog(1)
128,865

 
(74,704
)
 
54,161

 
32,287

 
(32,287
)
 
—

 
32,287

 
(32,287
)
 
—

Reacquired license rights(1)
603,178

 
(8,156
)
 
595,022

 
8,565

 
(3,636
)
 
4,929

 
5,939

 
(2,995
)
 
2,944

Total intangible assets subject to amortization
1,068,681

 
(132,662
)
 
936,019

 
233,455

 
(79,301
)
 
154,154

 
220,553

 
(69,785
)
 
150,768

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible assets not subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tradenames(1)
2,973,258

 
—

 
2,973,258

 
2,413,809

 
—

 
2,413,809

 
2,398,175

 
—

 
2,398,175

Perpetual license rights(1)
258,839

 
—

 
258,839

 
—

 
—

 
—

 
—

 
—

 
—

Reacquired perpetual license rights
12,536

 
—

 
12,536

 
13,042

 
—

 
13,042

 
12,646

 
—

 
12,646

Total intangible assets not subject to amortization
3,244,633

 
—

 
3,244,633

 
2,426,851

 
—

 
2,426,851

 
2,410,821

 
—

 
2,410,821

Total intangible assets
$
4,313,314

 
$
(132,662
)
 
$
4,180,652

 
$
2,660,306

 
$
(79,301
)
 
$
2,581,005

 
$
2,631,374

 
$
(69,785
)
 
$
2,561,589


(1) The change from February 3, 2013 to May 5, 2013 primarily relates to intangible assets recorded in connection with the acquisition of Warnaco. The acquired customer relationships are amortized principally over 10 years, order backlog is amortized principally over 6 months and reacquired license rights are amortized principally over 33 years from the date of the acquisition. As of May 5, 2013, the weighted average life of the amortizable intangible assets recorded in connection with the acquisition of Warnaco was 26.4 years.

Amortization expense related to the Company’s amortizable intangible assets was $53,361 and $3,386 for the thirteen weeks ended May 5, 2013 and April 29, 2012, respectively.

Amortization expense, a portion of which is subject to exchange rate fluctuation, for the remainder of 2013 and the next five years thereafter related to the Company’s intangible assets as of May 5, 2013 is expected to be as follows:

Fiscal Year
 
Amount
Remainder of 2013
 
$
90,166

2014
 
46,086

2015
 
45,747

2016
 
45,747

2017
 
45,747

2018
 
45,747