Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following is a summary of the carrying amount of goodwill by reporting unit as of September 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	(1,100)		—		(864)		(1,964)
Balance at September 30, 2020	$	90,472	$	62,688	$	13,634	$	166,794

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


	Estimated Lives	Cost Basis		Accumulated Amortization (1)		Impairment (2) (3)		Net Carrying Amount
Trade names	6–10 years	$	8,770	$	8,770	$	—	$	—
Customer relationships	10–20 years	38,980		21,901		—		17,079




		47,750		30,671		—		17,079
Re-acquired right	indefinite	35,200		9,088		—		26,112
Trademarks	indefinite	115,481		(156)		42,528		73,109
		$	198,431	$	39,603	$	42,528	$	116,300

(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.

(3) Impairment charges of $18,410 and $14,600 were recorded in the third quarter of 2020 related to the Company's Cejon and Report trademarks, respectively.

During the nine months ended September 30, 2020, the Company assessed the carrying amount of its trademarks. In the first quarter of 2020, Cejon, GREATS and Jocelyn trademarks with an aggregate carrying amount of $40,598 were written down to their fair values of $31,080, resulting in a pre-tax impairment charge of $9,518. Of the $9,518 impairment charge, $9,062 and $456 were recorded in impairment of intangibles in the Wholesale Accessories/Apparel and Retail segments, respectively. In the third quarter, Cejon and Report trademarks with an aggregate carrying amount of $35,010 were written down to their combined fair value of $2,000, resulting in a pre-tax impairment charge of $33,010. Of the $33,010 impairment charge, $18,410 and $14,600 were recorded in impairment of intangibles in the Wholesale Accessories/Apparel and Wholesale Footwear segments, respectively.

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. In the first quarter of 2020, the Company conducted an interim quantitative assessment of goodwill assigned to its reporting units as of March 31, 2020 and as a result, the fair values of the reporting units exceeded their carrying values by a substantial margin. In the third quarter of 2020, the Company performed a qualitative assessment of goodwill assigned to its reporting units as of July 1, 2020. In conducting the goodwill assessment, the Company concluded that it is more likely than not that the fair values of its reporting units exceeded their respective carrying values and therefore, no goodwill impairment charges were recorded.

A qualitative assessment of certain indefinite-lived intangible assets was performed as of July 1, 2020 and for other indefinite-lived intangible assets the Company performed a quantitative test. In conducting the qualitative impairment assessment for certain indefinite-lived trademarks, the Company concluded that it is more likely than not that the fair values of those trademarks exceeded their respective carrying values, and therefore, no impairment charges were recorded for those intangibles. For the other indefinite-lived trademarks, the Company performed a quantitative test for those respective trademarks by estimating fair values, which were determined using discounted cash flows and supported comparable royalty rates and comparing them to the carrying values of the assets. 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 and recorded impairment charges for the Cejon and Report trademarks.

The amortization of intangible assets amounted to $908 and $2,694 for the three and nine months ended September 30, 2020, respectively, compared to $1,333 and $4,000 for the three and nine months ended September 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 September 30, 2020 is as follows:


2020 (remaining three months)	$	689
2021	2,167
2022	1,746
2023	1,746
2024	1,746
Thereafter	8,985
Total	$	17,079