Goodwill and Other Intangibles (Notes)

12 Months Ended

Dec. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

The changes during fiscal years 2017 and 2016 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 2, 2016	$	429.1		$	685.4		$	1,114.5
Purchase of intangibles	—			0.2			0.2
Impairment	—			(7.1		)	(7.1		)
Sale of a business	(2.3		)	—			(2.3		)
Foreign currency translation effects	(2.5		)	—			(2.5		)
Balance at December 31, 2016	$	424.3		$	678.5		$	1,102.8
Impairment	—			(68.6		)	(68.6		)
Sale of a business	—			(5.4		)	(5.4		)
Foreign currency translation effects	5.5			—			5.5
Balance at December 30, 2017	$	429.8		$	604.5		$	1,034.3

In the fourth quarter of fiscal 2017, as a result of its annual impairment testing, the Company recognized a $68.6 million impairment charge for the Sperry^® trade name. 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 Company signed a multi-year license agreement in 2017 to license the Stride Rite^® brand, which is estimated to improve the future profitability of the business and reduce the risk of future non-cash impairments. If the operating results for Sperry^® were to decline in future periods, the Company may need to record an additional non-cash impairment charge. The carrying value of the Company’s Stride Rite^® and Sperry^® trade name indefinite-lived intangible assets was $7.9 million and $518.2 million, respectively, as of December 30, 2017.

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 third quarter of fiscal 2017, the Company sold the intangible assets related to its Sebago^® brand from the Outdoor & Lifestyle Group operating segment. See Note 18 for additional information. 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 during fiscal years 2017, 2016 or 2015 for goodwill, as the annual impairment testing indicated that all reporting unit goodwill 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 30, 2017
(In millions)	Average remaining life (years)	Gross carrying value		Accumulated amortization		Net
Customer relationships	15	$	100.5	$	26.6	$	73.9
Other	3	13.5		10.4		3.1
Total		$	114.0	$	37.0	$	77.0



	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

Amortization expense for these amortizable intangible assets was $9.4 million, $14.0 million and $15.6 million for fiscal years 2017, 2016 and 2015, respectively. Estimated aggregate amortization expense for such intangibles for the fiscal years subsequent to December 30, 2017 is as follows:



(In millions)	2018		2019		2020		2021		2022
Amortization expense	$	6.1	$	5.9	$	5.6	$	5.4	$	5.1

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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