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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note G – Goodwill and Intangible Assets The following is a summary of the carrying amount of goodwill by reporting unit as of December 31, 2023 and 2022:
| Wholesale |  |  |  |
(in thousands) | Footwear |  | Accessories/Apparel |  | Direct-to-Consumer |  | Net Carrying Amount
Balance at January 1, 2022 | $ | 90,066 |  |  | $ | 62,688 |  |  | $ | 15,241 |  |  | $ | 167,995 |
Translation | 107 |  |  | — |  |  | (17) |  |  | 90 |
Balance at December 31, 2022 | 90,173 |  |  | 62,688 |  |  | 15,224 |  |  | 168,085 |
Acquisitions | — |  |  | 10,937 |  |  | — |  |  | 10,937 |
Translation | 490 |  |  | — |  |  | 491 |  |  | 981 |
Balance at December 31, 2023 | $ | 90,663 |  |  | $ | 73,625 |  |  | $ | 15,715 |  |  | $ | 180,003 |
The following table details identifiable intangible assets as of December 31, 2023 and 2022:
| As of December 31, 2023
(in thousands) | Estimated Lives |  | Cost Basis (1) |  | Accumulated Amortization |  | Impairment and other (2)(3) |  | Net Carrying Amount
Trademarks | 20 years |  | $ | 27,745 |  |  | $ | (16,263) |  |  | $ | (2,545) |  |  | $ | 8,937 |
Customer relationships | 10-20 years |  | 62,580 |  |  | (27,267) |  |  | (1,382) |  |  | 33,931 |
|  |  | 90,325 |  |  | (43,530) |  |  | (3,927) |  |  | 42,868 |
Re-acquired right | indefinite |  | 35,200 |  |  | — |  |  | (8,862) |  |  | 26,338 |
Trademarks | indefinite |  | 63,283 |  |  | — |  |  | (6,222) |  |  | 57,061 |
|  |  | $ | 188,808 |  |  | $ | (43,530) |  |  | $ | (19,011) |  |  | $ | 126,267 |
(1) During the year ended December 31, 2023, the Company acquired Almost Famous, which consisted of a Trademark of $9,050 and customer relationships of $23,900, both of which are amortized over 20 years.. (2) During the year ended December 31, 2023, the Company recorded impairment charges of $6,520 related to the GREATS® 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, 2022
(in thousands) | Estimated Lives |  | Cost Basis(1) |  | Accumulated Amortization |  | Impairment and other (2) |  | Net Carrying Amount
Trademarks | 1–10 years |  | $ | 18,695 |  |  | $ | (16,075) |  |  | $ | (2,620) |  |  | $ | — |
Customer relationships | 10-20 years |  | 38,680 |  |  | (25,059) |  |  | (1,574) |  |  | 12,047 |
|  |  | 57,375 |  |  | (41,134) |  |  | (4,194) |  |  | 12,047 |
Re-acquired right | indefinite |  | 35,200 |  |  | — |  |  | (9,432) |  |  | 25,768 |
Trademarks | indefinite |  | 63,283 |  |  | — |  |  | 94 |  |  | 63,377 |
|  |  | $ | 155,858 |  |  | $ | (41,134) |  |  | $ | (13,532) |  |  | $ | 101,192 |
(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 beginning of the third quarter of each year and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The Company also periodically performs a quantitative test to assess its goodwill and indefinite-lived intangibles for impairment in lieu of using the qualitative approach in order to reassess the fair values. A quantitative assessment of goodwill and indefinite-lived intangible assets was performed as of July 1, 2023. In conducting the quantitative impairment assessments for goodwill and indefinite-lived intangibles, the Company concluded 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. In the fourth quarter of 2023, certain circumstances occurred that indicated potential impairment and the Company performed a valuation of the GREATS® trademark. 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 of 14.8% which was developed using market participant based assumptions. Changes in these significant unobservable inputs might result in a significantly higher or lower fair value measurement. As a result of this assessment, the GREATS® trademark was written down from the carrying value of $12,670 to its fair value of $6,150, resulting in a pre-tax non-cash impairment charge of $6,520. This charge was recorded in impairment of intangibles in the Company’s Consolidated Statements of Income and recognized in the Direct-to-Consumer segment. A qualitative assessment of goodwill and indefinite-lived intangible assets was performed as of July 1, 2022. In conducting the qualitative impairment assessments 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 tests, 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 was 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 and recognized in the Wholesale Accessories/Apparel segment. The fair value of $7,050 was amortized over its remaining useful life of one year, and was fully amortized in 2022. During the year ended December 31, 2021, the Company sold one of its internally developed trademarks for a gain of $8,000, which was recorded in operating expenses in the Company's Consolidated Statements of Income. The amortization of intangible assets amounted to $2,082, $9,001, and $2,675 for 2023, 2022, and 2021 and is included in operating expenses in the Company's Consolidated Statements of Income. The estimated future amortization expense for intangibles as of December 31, 2023 was as follows:
(in thousands) |
2024 | $ | 3,422 |
2025 | 3,422 |
2026 | 3,422 |
2027 | 3,174 |
2028 | 3,139 |
Thereafter | 26,289 |
Total | $ | 42,868 |

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