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GOODWILL AND OTHER INTANGIBLE ASSETS
 9 Months Ended
Nov. 03, 2013
Notes to Financial Statements [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
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 the Company’s operating results. As such, the Company has changed its reportable segments. Please see Note 19, “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 thirty-nine weeks ended November 3, 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
24,044

 
15,082

 
—

 
—

 
—

 
39,126

Goodwill from acquisition of Warnaco
451,427

 
900,006

 
—

 
—

 
129,942

 
1,481,375

Currency translation
(3,437
)
 
(7,269
)
 
—

 
(7,853
)
 
(324
)
 
(18,883
)
Balance as of November 3, 2013
 
 
 
 
 
 
 
 
 
 
 
Goodwill, gross
679,117

 
1,109,361

 
198,501

 
1,188,766

 
284,760

 
3,460,505

Accumulated impairment losses
—

 
—

 
—

 
—

 
—

 
—

Goodwill, net
$
679,117

 
$
1,109,361

 
$
198,501

 
$
1,188,766

 
$
284,760

 
$
3,460,505



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:
 
11/3/13
 
2/3/13
 
10/28/12
 
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)
$
337,061

 
$
(61,319
)
 
$
275,742

 
$
190,383

 
$
(41,158
)
 
$
149,225

 
$
176,988

 
$
(38,125
)
 
$
138,863

Covenants not to compete
2,220

 
(2,220
)
 
—

 
2,220

 
(2,220
)
 
—

 
2,220

 
(2,205
)
 
15

Order backlog(1)
128,116

 
(128,116
)
 
—

 
32,287

 
(32,287
)
 
—

 
32,287

 
(32,287
)
 
—

Reacquired license rights(1)
571,796

 
(17,698
)
 
554,098

 
8,565

 
(3,636
)
 
4,929

 
5,927

 
(3,332
)
 
2,595

Total intangible assets subject to amortization
1,039,193

 
(209,353
)
 
829,840

 
233,455

 
(79,301
)
 
154,154

 
217,422

 
(75,949
)
 
141,473

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible assets not subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tradenames(1)
2,998,785

 
—

 
2,998,785

 
2,413,809

 
—

 
2,413,809

 
2,374,513

 
—

 
2,374,513

Perpetual license rights(1)
206,996

 
—

 
206,996

 
—

 
—

 
—

 
—

 
—

 
—

Reacquired perpetual license rights
12,905

 
—

 
12,905

 
13,042

 
—

 
13,042

 
12,339

 
—

 
12,339

Total intangible assets not subject to amortization
3,218,686

 
—

 
3,218,686

 
2,426,851

 
—

 
2,426,851

 
2,386,852

 
—

 
2,386,852

Total intangible assets
$
4,257,879

 
$
(209,353
)
 
$
4,048,526

 
$
2,660,306

 
$
(79,301
)
 
$
2,581,005

 
$
2,604,274

 
$
(75,949
)
 
$
2,528,325


(1) Change from February 3, 2013 to November 3, 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 November 3, 2013, the weighted average life of the amortizable intangible assets recorded in connection with the acquisition of Warnaco was 27.8 years.

Amortization expense related to the Company’s amortizable intangible assets was $130,052 and $9,550 for the thirty-nine weeks ended November 3, 2013 and October 28, 2012, respectively.

Assuming constant exchange rates and no change in the gross carrying amount of the intangible assets, amortization expense for the remainder of 2013 and the next five years thereafter related to the Company’s intangible assets as of November 3, 2013 is expected to be as follows:

Fiscal Year
 
Amount
Remainder of 2013
 
$
11,770

2014
 
45,337

2015
 
44,989

2016
 
44,989

2017
 
44,989

2018
 
44,989