Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS

v3.20.1
INTANGIBLE ASSETS
 12 Months Ended
Dec. 28, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS INTANGIBLE ASSETS
(In thousands)
Weighted Average Amortization Period
 
Amortization Method
 
 
Cost
 
Accumulated Amortization
 
Net Carrying Amount
 
December 2019
 
 
 
 
 
 
 
 
 
 
 
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Trademarks
16 years
 
Straight-line
 
 
$
58,132

 
$
46,058

 
$
12,074

 
Customer relationships
15 years
 
Accelerated
 
 
10,627

 
9,919

 
708

 
Finite-lived intangible assets, net
 
 
 
 
 
 
 
 
 
12,782

 
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Trademarks and trade names
 
 
 
 
 
 
 
 
 
4,511

 
Intangible assets, net
 
 
 
 
 
 
 
 
 
$
17,293

 
(In thousands)
Weighted Average Amortization Period
 
Amortization Method
 
 
Cost
 
Accumulated Amortization
 
Net Carrying Amount
 
December 2018
 
 
 
 
 
 
 
 
 
 
 
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Trademarks
16 years
 
Straight-line
 
 
$
58,132

 
$
10,900

 
$
47,232

 
Customer relationships
15 years
 
Accelerated
 
 
10,743

 
9,530

 
1,213

 
Finite-lived intangible assets, net
 
 
 
 
 
 
 
 
 
48,445

 
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Trademarks and trade names
 
 
 
 
 
 
 
 
 
4,614

 
Intangible assets, net
 
 
 
 
 
 
 
 
 
$
53,059

 

During the third quarter of 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 in August 2019, which was reflected within "non-cash impairment of intangible asset" in the Company's statement of income during 2019 and is included in the accumulated amortization balance at December 2019. The Company did not incur any impairment charges during 2018 or 2017. Refer to Note 13 to the Company's financial statements for additional information on the related fair value measurements.
Amortization expense (excluding impairment charges) was $3.0 million, $4.2 million and $4.2 million for 2019, 2018 and 2017, respectively.
Estimated amortization expense for the next five years beginning in 2020 is $1.4 million, $1.2 million, $1.1 million, $1.0 million and $1.0 million, respectively.