XML 30 R13.htm IDEA: XBRL DOCUMENT v3.6.0.2
Goodwill and Other Intangibles (Notes)
 12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
GOODWILL AND OTHER INTANGIBLE ASSETS
The changes during fiscal years 2016 and 2015 in the carrying amount of goodwill and indefinite-lived intangibles, which comprises trademarks and trade names, is as follows:
(In millions)
Goodwill
 
Indefinite-lived intangibles
 
Total
Balance at January 3, 2015
$
438.8

 
$
690.5

 
$
1,129.3

Impairment
—

 
(5.1
)
 
(5.1
)
Foreign currency translation effects
(9.7
)
 
—

 
(9.7
)
Balance at January 2, 2016
$
429.1

 
$
685.4

 
$
1,114.5

Purchase of intangibles
—

 
0.2

 
0.2

Sale of a business
(2.3
)
 
—

 
(2.3
)
Impairment
—

 
(7.1
)
 
(7.1
)
Foreign currency translation effects
(2.5
)
 
—

 
(2.5
)
Balance at December 31, 2016
$
424.3

 
$
678.5

 
$
1,102.8


In the fourth quarter of fiscal 2016, as a result of its annual impairment testing, the Company recorded a $7.1 million impairment charge for the Stride Rite® trade name. The results of our indefinite-lived intangible impairment test based on the Company's outlook for future operating results continues to support the book value of the Sperry® trade name. If the operating results for Stride Rite® and Sperry® were to decline in future periods, the Company may record a non-cash indefinite-lived intangible asset impairment charge. The carrying value of the Company’s Stride Rite® and Sperry® trade name indefinite-lived intangible assets was $7.9 million and $586.8 million, respectively, as of December 31, 2016.
In the second quarter of fiscal 2015, the Company recorded a $2.6 million impairment charge for the Cushe® trade name, due to the decision to wind-down operations of the Cushe® brand. In the fourth quarter of fiscal 2015, as a result of its annual impairment testing, the Company recorded a $2.5 million impairment charge for the Stride Rite® trade name.
During fiscal 2016, the Company sold a non-core business within the Multi-Brand Group operating segment, which included an allocation of goodwill for the brand.
The Company did not recognize any impairment charges for goodwill during fiscal years 2016 or 2015 or for goodwill or indefinite-lived intangible assets during fiscal 2014, as the annual impairment testing indicated that all reporting unit goodwill and indefinite-lived intangible asset fair values exceeded their respective carrying values.
Amortizable intangible assets are amortized using the straight-line method over their estimated useful lives. They consist primarily of customer relationships, licensing arrangements and developed product technology. The combined gross carrying value and accumulated amortization for these amortizable intangibles is as follows:
  
December 31, 2016
(In millions)
Average remaining life (years)
 
Gross carrying
value
 
Accumulated
amortization
 
Net
Customer relationships
16
 
$
100.5

 
$
21.6

 
$
78.9

Licensing arrangements
1
 
28.8

 
27.6

 
1.2

Developed product technology
1
 
14.9

 
12.7

 
2.2

Other
3
 
11.4

 
9.9

 
1.5

Total
 
 
$
155.6

 
$
71.8

 
$
83.8

  
January 2, 2016
(In millions)
Average remaining life (years)
 
Gross carrying
value
 
Accumulated
amortization
 
Net
Customer relationships
17
 
$
100.5

 
$
16.7

 
$
83.8

Licensing arrangements
1
 
28.8

 
22.0

 
6.8

Developed product technology
2
 
14.9

 
9.8

 
5.1

Other
3
 
11.2

 
9.6

 
1.6

Total
 
 
$
155.4

 
$
58.1

 
$
97.3


Amortization expense for other intangible assets was $14.0 million, $15.6 million and $15.7 million for fiscal years 2016, 2015 and 2014, respectively. Estimated aggregate amortization expense for such intangibles for the fiscal years subsequent to December 31, 2016 is as follows:
(In millions)
2017
 
2018
 
2019
 
2020
 
2021
Amortization expense
$
9.0

 
$
5.5

 
$
5.3

 
$
5.2

 
$
5.0