Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following is a summary of the carrying amount of goodwill by reporting unit as of June 30, 2020:


	Wholesale								Net Carrying Amount
	Footwear		Accessories/ Apparel		Retail
Balance at January 1, 2020	$	91,572	$	62,688	$	17,089	$	171,349

Purchase accounting adjustment	—		—		(2,591)		(2,591)
Translation and other	(1,373)		—		(1,052)		(2,425)
Balance at June 30, 2020	$	90,199	$	62,688	$	13,446	$	166,333

The following table details identifiable intangible assets as of June 30, 2020:


	Estimated Lives	Cost Basis		Accumulated Amortization (1)		Impairment (2)		Net Carrying Amount
Trade names	6–10 years	$	8,770	$	8,770	$	—	$	—
Customer relationships	10–20 years	38,980		21,206		—		17,774




		47,750		29,976		—		17,774
Re-acquired right	indefinite	35,200		9,583		—		25,617
Trademarks	indefinite	115,481		(55)		9,518		106,018
		$	198,431	$	39,504	$	9,518	$	149,409

(1) Includes the effect of foreign currency translation related primarily to the movements of the Canadian dollar and Mexican peso in relation to the U.S. dollar.

(2) Impairment charges of $8,615, $456 and $447 were recorded in the first quarter of 2020 related to the Company's Cejon, GREATS and Jocelyn trademarks, respectively. As a result of the COVID-19 pandemic and decline in the macroeconomic environment, the Company performed an interim impairment analysis as of March 31, 2020 that resulted in $9,518 of impairment charges.

The Company evaluates its goodwill and intangible assets for indicators of impairment at least annually in the third quarter of each year or whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Given the substantial reduction in sales, EBITDA and the reduced cash flow projections as a result of the COVID-19 pandemic, the Company determined that impairment indicators were present and that an impairment assessment was warranted for goodwill and indefinite-lived intangible assets. As a result, the Company performed an interim assessment of goodwill, assigned to its reporting units using a quantitative approach as of March 31, 2020 and an interim assessment of indefinite-lived intangible assets using a quantitative approach as of March 31, 2020. In conducting the interim goodwill assessment, the estimated fair values of the Company's reporting units were determined using discounted cash flows and market comparisons. Based on the results of the impairment assessment, the Company concluded that the fair values of its reporting units significantly exceeded their respective carrying values and therefore no goodwill impairment charges were recorded. In evaluating indefinite-lived intangible assets, estimated fair values were determined using discounted cash flows and supported comparable royalty rates. Based on the results of the quantitative impairment assessment, the Company concluded that the fair values of certain trademarks were below their respective carrying values, which resulted in $9,518 of impairment charges.

The amortization of intangible assets amounted to $895 and $1,786 for the three and six months ended June 30, 2020, respectively, compared to $1,333 and $2,667 for the three and six months ended June 30, 2019 and is included in operating expenses in the Company's Condensed Consolidated Statements of (Loss)/Income. The estimated future amortization expense for intangibles as of June 30, 2020 is as follows:


2020 (remaining six months)	$	1,378
2021	2,168
2022	1,747
2023	1,747
2024	1,747
Thereafter	8,987
Total	$	17,774