XML 23 R12.htm IDEA: XBRL DOCUMENT v3.19.2
Goodwill and Trademarks and Other Intangibles, net
6 Months Ended
Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Trademarks and Other Intangibles, net

3. Goodwill and Trademarks and Other Intangibles, net

 

Goodwill 

There were no changes and no impairment of the Company’s goodwill during the Current Six Months as compared to a non-cash impairment charge of $37.8 million recorded in the Prior Year Six Months, which was due to the projected decline in royalties associated with the license agreements for the Mossimo brand.  The annual evaluation of the Company’s goodwill, by segment, is typically performed as of October 1, the beginning of the Company’s fourth fiscal quarter.  

Trademarks and Other Intangibles, net

Trademarks and other intangibles, net, consist of the following:

 

 

 

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

Estimated

Lives in

Years

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

Indefinite-lived trademarks

 

Indefinite

 

$

340,814

 

 

$

 

 

$

337,631

 

 

$

 

Definite-lived trademarks

 

10-15

 

 

8,958

 

 

 

8,958

 

 

 

8,958

 

 

 

8,958

 

Licensing contracts

 

1-9

 

 

973

 

 

 

944

 

 

 

978

 

 

 

909

 

 

 

 

 

$

350,745

 

 

$

9,902

 

 

$

347,567

 

 

$

9,867

 

Trademarks and other intangibles, net

 

 

 

 

 

 

 

$

340,843

 

 

 

 

 

 

$

337,700

 

 

The trademarks of Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific, Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko, Zoo York, Ed Hardy, Umbro, Modern Amusement, Buffalo, Lee Cooper, Hydraulic and Pony have been determined to have an indefinite useful life.  Each of these intangible assets are tested for impairment annually and as needed on an individual basis and territorial basis as separate single units of accounting, with any related impairment charge recorded to the income statement at the time of determining such impairment. The annual evaluation of the Company’s indefinite-lived trademarks is typically performed as of October 1, the beginning of the Company’s fourth fiscal quarter, or as deemed necessary due to the identification of a triggering event.

 

In April 2019, the Company bought back a revenue stream in the Ecko brand from a previous joint venture partner which resulted in an increase of $3.4 million to the Ecko trademark.

 

In accordance with ASC 350, there was no impairment of the indefinite-lived trademarks during the Current Quarter or the Current Six Months.  In the Prior Year Quarter, as a result of the Company revising its forecasted future earnings for the Mossimo brand, the Company conducted an indefinite-lived intangible asset impairment test in accordance with ASC 350.  Consequently, the Company recorded a non-cash impairment charge of $73.3 million in the Prior Year Quarter in the women’s segment to reduce the Mossimo trademark to fair value.  Further, in accordance with ASC 360, there were no impairment charges to the Company’s definite-lived trademarks during the Current Quarter or Prior Year Quarter.

 

During the Prior Year Six Months, the Company completed the sale of the Badgley Mischka and Sharper Image intellectual property and related assets from the Iconix Southeast Asia, Iconix MENA, Iconix Europe and Iconix Australia joint ventures.  Refer to Note 6 for further details.

Other amortizable intangibles represents licensing contracts, which are amortized on a straight-line basis over their estimated useful lives of 1 to 9 years. Certain trademarks are amortized using estimated useful lives of 10 to 15 years with no residual values.

Amortization expense for intangible assets for both the Current Quarter and Prior Year Quarter was less than $0.1 million.  Amortization expense for intangible assets for the Current Six Months was less than $0.1 million as compared to amortization expense for intangible assets of approximately $0.2 million for the Prior Year Six Months.