Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The following is a summary of the carrying amount of goodwill by reporting unit as of June 30, 2022:


	Wholesale						Net Carrying Amount
	Footwear		Accessories/ Apparel		Direct-to-Consumer
Balance at January 1, 2022	$	90,066	$	62,688	$	15,241	$	167,995


Translation	112		—		(148)		(36)
Balance at June 30, 2022	$	90,178	$	62,688	$	15,093	$	167,959

The following table details identifiable intangible assets as of June 30, 2022:



	Estimated Lives	Cost Basis		Accumulated Amortization		Impairment & Other(1)		Net Carrying Amount
Trade names	1–10 years	$	18,695	$	(12,550)	$	(2,620)	$	3,525
Customer relationships	10–20 years	38,680		(24,112)		(1,506)		13,062




		57,375		(36,662)		(4,126)		16,587
Re-acquired right	indefinite	35,200		—		(8,120)		27,080
Trademarks	indefinite	63,283		—		217		63,500
		$	155,858	$	(36,662)	$	(12,029)	$	107,167

(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.

The following table details identifiable intangible assets as of December 31, 2021:



	Estimated Lives	Cost Basis(1)		Accumulated Amortization		Impairment & Other(2)		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) 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 year ended June 30, 2021, the Company sold one of its internally developed trademarks for $8,000. The gain from the sale of the trademark was recorded in operating expenses in the Company's Condensed Statement of Income.

The amortization of intangible assets amounted to $2,189 and $4,503 for the three and six months ended June 30, 2022 compared to $803 and $1,634 for the three and six months ended June 30, 2021 and is included in operating expenses in the Company's Condensed Consolidated Statements of Income. The estimated future amortization expense for intangibles as of June 30, 2022 is as follows:


2022 (remaining six months)	$	4,105
2023	1,740
2024	1,740
2025	1,740
2026	1,740
Thereafter	5,522
Total	$	16,587