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INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended
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Jan. 02, 2022
Intangible assets [Abstract] |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL: Intangible assets:
2021 | Customer contracts and customer relationships | Trademarks | License agreements | Computer software | Non-compete agreements | Total
Cost |  |  |  |  |  |  |  |  |  |  |  |
Balance, January 3, 2021 |  | $ | 224,489 |  |  | $ | 226,172 |  |  | $ | 72,796 |  |  | $ | 64,295 |  |  | $ | 1,790 |  |  | $ | 589,542 |
Additions |  | — |  |  | — |  |  | — |  |  | 3,635 |  |  | — |  |  | 3,635 |
Disposals |  | — |  |  | — |  |  | — |  |  | (773) |  |  | — |  |  | (773) |
Balance, January 2, 2022 |  | $ | 224,489 |  |  | $ | 226,172 |  |  | $ | 72,796 |  |  | $ | 67,157 |  |  | $ | 1,790 |  |  | $ | 592,404 |
Accumulated amortization |  |  |  |  |  |  |  |  |  |
Balance, January 3, 2021 |  | $ | 142,131 |  |  | $ | 46,351 |  |  | $ | 64,347 |  |  | $ | 45,022 |  |  | $ | 1,790 |  |  | $ | 299,641 |
Amortization |  | 9,944 |  |  | 292 |  |  | 2,582 |  |  | 5,258 |  |  | — |  |  | 18,076 |
Disposals |  | — |  |  | — |  |  | — |  |  | (484) |  |  | — |  |  | (484) |
(Impairment reversal, net of write-downs) |  | (3,943) |  |  | (27,516) |  |  | — |  |  | — |  |  | — |  |  | (31,459) |
Balance, January 2, 2022 |  | $ | 148,132 |  |  | $ | 19,127 |  |  | $ | 66,929 |  |  | $ | 49,796 |  |  | $ | 1,790 |  |  | $ | 285,774 |
Carrying amount, January 2, 2022 |  | $ | 76,357 |  |  | $ | 207,045 |  |  | $ | 5,867 |  |  | $ | 17,361 |  |  | $ | — |  |  | $ | 306,630 |
2020 | Customer contracts and customer relationships | Trademarks | License agreements | Computer software | Non-compete agreements | Total
Cost |  |  |  |  |  |  |  |  |  |  |  |
Balance, December 29, 2019 |  | $ | 224,489 |  |  | $ | 226,172 |  |  | $ | 72,750 |  |  | $ | 69,123 |  |  | $ | 1,790 |  |  | $ | 594,324 |
Additions |  | — |  |  | — |  |  | 46 |  |  | 3,113 |  |  | — |  |  | 3,159 |
Disposals |  | — |  |  | — |  |  | — |  |  | (7,941) |  |  | — |  |  | (7,941) |
Balance, January 3, 2021 |  | $ | 224,489 |  |  | $ | 226,172 |  |  | $ | 72,796 |  |  | $ | 64,295 |  |  | $ | 1,790 |  |  | $ | 589,542 |
Accumulated amortization |  |  |  |  |  |  |  |  |  |
Balance, December 29, 2019 |  | $ | 101,844 |  |  | $ | 2,508 |  |  | $ | 61,415 |  |  | $ | 42,903 |  |  | $ | 1,790 |  |  | $ | 210,460 |
Amortization |  | 10,670 |  |  | 700 |  |  | 2,932 |  |  | 6,104 |  |  | — |  |  | 20,406 |
Disposals |  | — |  |  | — |  |  | — |  |  | (3,985) |  |  | — |  |  | (3,985) |
Write-downs and impairments |  | 29,617 |  |  | 43,143 |  |  | — |  |  | — |  |  | — |  |  | 72,760 |
Balance, January 3, 2021 |  | $ | 142,131 |  |  | $ | 46,351 |  |  | $ | 64,347 |  |  | $ | 45,022 |  |  | $ | 1,790 |  |  | $ | 299,641 |
Carrying amount, January 3, 2021 |  | $ | 82,358 |  |  | $ | 179,821 |  |  | $ | 8,449 |  |  | $ | 19,273 |  |  | $ | — |  |  | $ | 289,901 |
During the year ended January 2, 2022, the Company recorded an impairment reversal, net of write-downs of $31.5 million. The impairment reversal, net of write-downs includes a $55.6 million impairment reversal relating to intangible assets (both definite and indefinite life) acquired in previous business acquisitions, partially offset by a $24.1 million write-off of certain intangible assets relating to the Company's Hosiery CGU. The write-off of intangible assets includes a write-down of $10.4 million in trademarks and $13.7 million in customer relationships, that were assessed as having no future economic benefit. These asset write-offs relate to the Company’s plan to exit its sheer panty hose, tights, leggings, ladies shapewear, intimates, and accessories products. The carrying amount of internally-generated assets within computer software was $14.1 million as at January 2, 2022 (January 3, 2021 - $16.1 million). Included in computer software as at January 2, 2022 is $3.6 million (January 3, 2021 - $1.9 million) of assets not yet utilized in operations. 11. INTANGIBLE ASSETS AND GOODWILL (continued): Goodwill:
| 2021 |  | 2020
Balance, beginning of fiscal year | $ | 206,636 |  |  | $ | 227,865 |
Goodwill acquired | 77,179 |  |  | — |
Impairment | — |  |  | (21,229) |
Balance, end of fiscal year | $ | 283,815 |  |  | $ | 206,636 |
Recoverability of cash-generating units: Goodwill acquired through business acquisitions and trademarks with indefinite useful lives have been allocated to the Company's CGUs as follows:
|  | January 2, 2022 |  | January 3, 2021
Textile & Sewing: |  |  |
| Goodwill | $ | 283,815 |  |  | $ | 206,636 |
| Definite life intangible assets (excluding computer software) | 23,430 |  |  | 27,869 |
| Indefinite life intangible assets | 93,400 |  |  | 93,400 |
|  | $ | 400,645 |  |  | $ | 327,905 |
Hosiery: |  |  |
| Goodwill | $ | — |  |  | $ | — |
| Definite life intangible assets (excluding computer software) | 58,794 |  |  | 63,230 |
| Indefinite life intangible assets | 113,645 |  |  | 86,129 |
|  | $ | 172,439 |  |  | $ | 149,359 |
In assessing whether goodwill and indefinite life intangible assets are impaired, the carrying amounts of the CGUs (including goodwill and indefinite life intangible assets) are compared to their recoverable amounts. The recoverable amounts of CGUs are based on the higher of the value in use and fair value less costs of disposal. During the first quarter of fiscal 2020, due to the adverse impacts of the COVID-19 pandemic on global economic activity and enterprise values of companies worldwide, including its impact on the Company’s business and share price, the Company recorded an impairment charge for its hosiery CGU of $94 million, relating to goodwill and intangible assets acquired during previous sock and hosiery business acquisitions. The Company performed its annual impairment review for goodwill and indefinite life intangible assets as at January 2, 2022. The estimated recoverable amount for the Textile & Sewing CGU exceeded its carrying amounts and as a result, there was no impairment identified. The estimated recoverable amount for the Hosiery CGU was in excess of its carrying value resulting in an impairment reversal of $55.6 million, relating to intangible assets (both definite and indefinite life) acquired in previous business acquisitions. Recoverable amount for Textile & Sewing and Hosiery CGUs The Company determined the recoverable amounts of the Textile & Sewing and Hosiery CGUs based on the fair value less costs of disposal method. The fair values of the Textile & Sewing and Hosiery CGUs were based on a multiple applied to adjusted EBITDA (as defined in note 25) for the next year, which takes into account financial forecasts approved by senior management. The key assumptions for the fair value less costs of disposal method include estimated sales volumes, selling prices, gross margins, and SG&A expenses in determining forecasted adjusted EBITDA, as well as the multiple applied to forecasted adjusted EBITDA. The adjusted EBITDA multiple was obtained by using market comparables as a reference. The values assigned to the key assumptions represent management’s assessment of future trends and have been based on historical data from external and internal sources. 11. INTANGIBLE ASSETS AND GOODWILL (continued): Recoverability of cash-generating units (continued): Textile & Sewing CGU For the Textile & Sewing CGU, no reasonably possible change in the key assumptions used in determining the recoverable amount would result in any impairment of goodwill or indefinite life intangible assets. Hosiery CGU Based on the results of the impairment test performed on January 2, 2022, the recoverable amount of the CGU of $544.0 million (2020 - $273.5 million) is higher than the post impairment carrying value, and as such the Company recorded an impairment reversal of $55.6 million as at January 2, 2022, relating to the following intangible assets; $37.9 million in trademark impairment reversals and $17.7 million in customer relationships impairment reversals acquired in previous business acquisitions. The events and circumstances that led to this reversal include improved margins and forecasted earnings. The fair value of the Hosiery CGU was based on a multiple applied to the risk-adjusted forecasted adjusted EBITDA (see definition of adjusted EBITDA in note 25). The key assumptions used in the estimation of the recoverable amount for the Hosiery CGU are the risk-adjusted forecasted adjusted EBITDA for the next year and the adjusted EBITDA multiple of 10 (January 2, 2022 test) and 9 (January 3, 2021 test). The adjusted EBITDA multiple was obtained by using market comparables as a reference. The most significant assumptions that form part of the risk-adjusted forecasted adjusted EBITDA for the Hosiery CGU relate to estimated sales volumes, selling prices, input costs, and SG&A expenses. Management has identified that no reasonably possible change in forecasted adjusted EBITDA or adjusted EBITDA multiple would cause the carrying amount of the Hosiery CGU to exceed its recoverable amount as at January 2, 2022. The values assigned to the key assumptions represent management’s assessment of future trends and have been based on historical data from external and internal sources.

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