Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The following is a summary of the carrying amount of goodwill by reporting unit as of September 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	46		—		(389)		(343)
Balance at September 30, 2022	$	90,112	$	62,688	$	14,852	$	167,652

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



	Estimated Lives	Cost Basis		Accumulated Amortization		Impairment & Other(1)		Net Carrying Amount
Trade names	1–10 years	$	18,695	$	(14,312)	$	(2,620)	$	1,763
Customer relationships	10–20 years	38,680		(24,585)		(1,618)		12,477




		57,375		(38,897)		(4,238)		14,240
Re-acquired right	indefinite	35,200		—		(9,791)		25,409
Trademarks	indefinite	63,283		—		35		63,318
		$	155,858	$	(38,897)	$	(13,994)	$	102,967

(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)(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.

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, 2022. 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 2022, as a result of the annual test, no impairment charges were recorded for goodwill and intangibles.

During the year ended September 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 $2,250 and $6,753 for the three and nine months ended September 30, 2022 compared to $554 and $2,187 for the three and nine months ended September 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 September 30, 2022 is as follows:


2022 (remaining three months)	$	2,011
2023	1,704
2024	1,704
2025	1,704
2026	1,704
Thereafter	5,413
Total	$	14,240