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Goodwill and Intangible Assets | 3 Months Ended
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Mar. 31, 2024
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 March 31, 2024:
|  | Wholesale |  |  |  | Net Carrying Amount
|  | Footwear |  | Accessories/ Apparel |  | Direct-to-Consumer |
Balance at January 1, 2024 |  | $ | 90,663 |  |  | $ | 73,625 |  |  | $ | 15,715 |  |  | $ | 180,003 |
Acquisitions |  | — |  |  | 641 |  |  | — |  |  | 641 |
Translation |  | 141 |  |  | — |  |  | 84 |  |  | 225 |
Balance at March 31, 2024 |  | $ | 90,804 |  |  | $ | 74,266 |  |  | $ | 15,799 |  |  | $ | 180,869 |
The following table details identifiable intangible assets as of March 31, 2024:
|  | Estimated Lives |  | Cost Basis(2) |  | Accumulated Amortization |  | Impairment & Other(1)(3) |  | Net Carrying Amount
Trademarks |  | 10 - 20 years |  | $ | 32,195 |  |  | $ | (16,263) |  |  | $ | (2,743) |  |  | $ | 13,189 |
Customer relationships |  | 10–20 years |  | 62,580 |  |  | (27,926) |  |  | (1,545) |  |  | 33,109 |
Re-acquired rights |  | 2 years |  | 1,450 |  |  | (66) |  |  | — |  |  | 1,384 |
|  |  |  | 96,225 |  |  | (44,255) |  |  | (4,288) |  |  | 47,682 |
Re-acquired right |  | indefinite |  | 35,200 |  |  | — |  |  | (9,357) |  |  | 25,843 |
Trademarks |  | indefinite |  | 58,833 |  |  | — |  |  | (7,922) |  |  | 50,911 |
|  |  |  | $ | 190,258 |  |  | $ | (44,255) |  |  | $ | (21,567) |  |  | $ | 124,436 |
(1) During the quarter ended March 31, 2024, the Company recorded impairment charges of $1,700 related to the GREATS® trademark. (2) During the quarter ended March 31, 2024, the Company changed its estimate of useful life of its GREATS® trademark to 10 years and the remaining balance of $4,450 of the GREATS® trademark will be amortized over that time frame starting in the second quarter of 2024. (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 following table details identifiable intangible assets as of December 31, 2023:
|  | Estimated Lives |  | Cost Basis(1) |  | Accumulated Amortization |  | Impairment & 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. 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. Subsequently, in the first quarter of 2024, circumstances occurred that caused a change in the estimated useful life of the GREATS® trademark from an indefinite life to an estimated useful life of 10 years, and as a result, the Company performed an impairment test. 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 14.0% 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 $6,150 to its fair value of $4,450, resulting in a pre-tax non-cash impairment charge of $1,700. These impairment charges were recorded in impairment of intangibles in the Company’s Consolidated Statements of Income and recognized in the Direct-to-Consumer segment. The Company evaluates its goodwill and indefinite-lived intangible assets for indicators of impairment at least annually in the third quarter of each year and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. 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 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 2023, as a result of the annual test, no impairment charges were recorded for goodwill and intangibles. The amortization of intangible assets amounted to $941 for the three months ended March 31, 2024 compared to $423 for the three months ended March 31, 2023 and is included in operating expenses in the Company's Condensed Consolidated Statements of Income. The estimated future amortization expense for intangibles as of March 31, 2024 was as follows:
2024 (remaining nine months) | $ | 3,465 |
2025 | 4,619 |
2026 | 3,855 |
2027 | 3,607 |
2028 | 3,571 |
Thereafter | 28,565 |
Total | $ | 47,682 |

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