Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS

v3.19.3
INTANGIBLE ASSETS
9 Months Ended
Sep. 28, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS INTANGIBLE ASSETS
 
 
 
 
 
 
 
September 2019
 
 
December 2018
(in thousands)
 
Weighted Average Amortization Period
 
Amortization Method
 
 
Cost
 
Accumulated Amortization
 
Net Carrying Amount
 
 
Net Carrying Amount
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
 
16 years
 
Straight-line
 
 
$
58,132

 
$
45,828

 
$
12,304

 
 
$
47,232

Customer relationships
 
15 years
 
Accelerated
 
 
10,517

 
9,706

 
811

 
 
1,213

Finite-lived intangible assets, net
 
 
 
 
 
 
 
 
13,115

 
 
48,445

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks and trade names
 
 
 
 
 
 
 
 
4,415

 
 
4,614

Intangible assets, net
 
 
 
 
 
 
 
 
 
 
$
17,530

 
 
$
53,059


During the third quarter of fiscal 2019, the Company determined that the exclusive domestic wholesale distribution and licensing agreement of the Rock & Republic® brand would not be extended. This was considered a triggering event that required management to perform a quantitative impairment analysis of the Rock & Republic® trademark intangible asset. Based on this analysis, the Company recorded a $32.6 million non-cash impairment charge which was reflected within "non-cash impairment of intangible asset" in the Company's statement of income during the three months ended September 2019. The Company did not incur any impairment charges during fiscal 2018. Refer to Note 14 to the Company's financial statements for additional information on the related fair value measurements.
Amortization expense (excluding impairment charges) was $0.6 million and $2.6 million for the three and nine months ended September 2019. Amortization expense was $1.1 million and $3.2 million for the three and nine months ended September 2018.
Estimated amortization expense for the next five years beginning in fiscal 2019 is $3.0 million (including the nine months ended September 2019), $1.4 million, $1.2 million, $1.1 million and $1.0 million, respectively.