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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | The following is a summary of the carrying amount of goodwill by reporting unit as of December 31, 2021 and 2020:
| Wholesale |  |  |  |
(in thousands) | Footwear |  | Accessories/Apparel |  | Direct-to-Consumer |  | Net Carrying Amount
Balance at January 1, 2020 | $ | 91,572 |  |  | $ | 62,688 |  |  | $ | 17,089 |  |  | $ | 171,349 |
Purchase accounting adjustment | — |  |  | — |  |  | (2,591) |  |  | (2,591) |
Translation | (475) |  |  | — |  |  | (18) |  |  | (493) |
Balance at December 31, 2020 | 91,097 |  |  | 62,688 |  |  | 14,480 |  |  | 168,265 |
Translation | (1,031) |  |  | — |  |  | 761 |  |  | (270) |
Balance at December 31, 2021 | $ | 90,066 |  |  | $ | 62,688 |  |  | $ | 15,241 |  |  | $ | 167,995 |
The following table details identifiable intangible assets as of December 31, 2021 and 2020:
| As of December 31, 2021
(in thousands) | Estimated Lives |  | Cost Basis(1) |  | Accumulated Amortization |  | Impairment and other (2) (3) |  | Net Carrying Amount
Trade names | 1–10 years |  | $ | 18,695 |  |  | $ | (9,025) |  |  | $ | (2,620) |  |  | $ | 7,050 |
Customer relationships | 10-20 years |  | 38,680 |  |  | (23,164) |  |  | (1,491) |  |  | 14,025 |
|  |  | 57,375 |  |  | (32,189) |  |  | (4,111) |  |  | 21,075 |
Re-acquired right | indefinite |  | 35,200 |  |  | — |  |  | (7,708) |  |  | 27,492 |
Trademarks | indefinite |  | 63,283 |  |  | — |  |  | 243 |  |  | 63,526 |
|  |  | $ | 155,858 |  |  | $ | (32,189) |  |  | $ | (11,576) |  |  | $ | 112,093 |
(1) During the year ended December 31, 2021, the Company purchased the trademark for Dolce Vita® Handbags for $2,000 and the cash consideration was paid in 2022. (2) Impairment charges of $2,620 in 2021 were recorded related to the Company's BB Dakota® trademark. (3) 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.
| As of December 31, 2020
(in thousands) | Estimated Lives |  | Cost Basis |  | Accumulated Amortization |  | Impairment and other (1)(2) |  | Net Carrying Amount
Trade names | 6–10 years |  | $ | 8,770 |  |  | $ | (8,770) |  |  | $ | — |  |  | $ | — |
Customer relationships | 10-20 years |  | 38,980 |  |  | (20,805) |  |  | (1,813) |  |  | 16,362 |
|  |  | 47,750 |  |  | (29,575) |  |  | (1,813) |  |  | 16,362 |
Re-acquired right | indefinite |  | 35,200 |  |  | — |  |  | (7,800) |  |  | 27,400 |
Trademarks | indefinite |  | 115,481 |  |  | — |  |  | (44,052) |  |  | 71,429 |
|  |  | $ | 198,431 |  |  | $ | (29,575) |  |  | $ | (53,665) |  |  | $ | 115,191 |
(1) Impairment charges of $44,273 were recorded in 2020, of which $27,025, $16,345, $456 and $447 were related to the Company's Cejon®, Report®, GREATS® and Jocelyn® trademarks, respectively. (2) 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. The Company evaluates its goodwill and indefinite-lived 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. A qualitative assessment of goodwill and indefinite-lived intangible assets was performed as of July 1, 2021. In conducting the qualitative impairment assessment for goodwill and indefinite-lived intangibles, the Company concluded that it is more likely than not that the fair values of its reporting units exceeded their carrying values and the fair values of its indefinite-lived intangibles exceeded their respective carrying values. Therefore, in 2021, as a result of the annual test, no impairment charges were recorded for goodwill and intangibles. During the fourth quarter of 2021, certain decisions were made by the Company that resulted in the change in useful life of the BB Dakota trademark from an indefinite to a finite life. As a result, the BB Dakota trademark was assessed for impairment. The estimated fair value of this trademark was determined using an excess earnings method, incorporating the use of projected financial information and a discount rate which are developed using market participant based assumptions. As a result of this assessment, the BB Dakota trademark was written down from the carrying value of $9,670 to its fair value of $7,050, resulting in a pre-tax non-cash impairment charge of $2,620. This charge was recorded in impairment of intangibles in the Company’s Consolidated Statements of Income/(Loss) and recognized in the Wholesale Accessories/Apparel segment. The fair value of $7,050 will be amortized over its remaining useful life of one year. As a result of the COVID-19 pandemic and decline in the macroeconomic environment, during the twelve months ended December 31, 2020, the Company’s Cejon, Report, GREATS and Jocelyn trademarks were written down from an aggregate carrying value of $57,198 to their fair values of $12,925, resulting in a pre-tax non-cash impairment charge of $44,273. These charges were recorded in impairment of intangibles in the Company’s Consolidated Statements of Income/(Loss) and recognized in three goodwill reporting unis: $27,472 related to Wholesale Accessories/Apparel, $16,345 related to Wholesale Footwear and $456 related to the Direct-to-Consumer segments, respectively. The estimated fair values of these trademarks were determined using an excess earnings method. This method utilizes the present value of the earnings attributable to the intangible asset after providing for the proportion of the earnings that attribute to returns for contributory assets. During the year ended December 31, 2021 the Company sold one of its internally developed trademarks for $8,000. The gain from the sale of the trademark was recorded as an offset to operating expenses in the Company's Consolidated Statements of Income/(Loss). The amortization of intangible assets amounted to $2,675, $4,010 and $6,258 for 2021, 2020 and 2019 and is included in operating expenses on the Company's Consolidated Statements of Income/(Loss). The estimated future amortization expense for intangibles as of December 31, 2021 is as follows:
(in thousands) |
2022 | $ | 8,363 |
2023 | 1,772 |
2024 | 1,772 |
2025 | 1,772 |
2026 | 1,772 |
Thereafter | 5,624 |
Total | $ | 21,075 |

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