GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 29, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes the Company’s goodwill and other intangible assets at the end of the fiscal year:



		December 29, 2018						December 30, 2017
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount		Gross amount		Accumulated amortization		Net amount
Carter’s goodwill⁽¹⁾	Indefinite	$	136,570	$	—	$	136,570	$	136,570	$	—	$	136,570
Canada goodwill⁽²⁾	Indefinite	38,869		—		38,869		42,223		—		42,223
Skip Hop goodwill⁽³⁾	Indefinite	45,960		—		45,960		45,997		—		45,997
Carter's Mexico goodwill⁽⁴⁾	Indefinite	5,702		—		5,702		5,634		—		5,634
Total goodwill		$	227,101	$	—	$	227,101	$	230,424	$	—	$	230,424

Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233	$	220,233	$	—	$	220,233
OshKosh tradename	Indefinite	85,500		—		85,500		85,500		—		85,500
Skip Hop tradename	Indefinite	56,800		—		56,800		56,800		—		56,800
Finite-life tradenames	5 - 20 years	3,911		752		3,159		3,550		532		3,018
Total tradenames, net		$	366,444	$	752	$	365,692	$	366,083	$	532	$	365,551

Skip Hop customer relationships	15 years	$	47,300	$	5,480	$	41,820	$	47,300	$	2,304	$	44,996
Carter's Mexico customer relationships	10 years	3,146		455		2,691		3,135		135		3,000
Total customer relationships, net		$	50,446	$	5,935	$	44,511	$	50,435	$	2,439	$	47,996


(1)	$45.9 million is assigned to the U.S. Wholesale segment, $82.0 million is assigned to the U.S. Retail segment, and $8.6 million is assigned to the International segment.


(2)	Goodwill for Canada (Bonnie Togs) is assigned to the International segment.


(3)	$28.6 million is assigned to the U.S. Wholesale segment, $15.5 million is assigned to the International segment, and $1.9 million is assigned to the U.S. Retail segment.


(4)	Goodwill for Carter's Mexico is assigned to the International segment.

Changes in the carrying values between comparative periods for goodwill related to the Company's 2011 acquisition of its Canadian business (Bonnie Togs) were due to fluctuations in the foreign currency exchange rates between the Canadian and U.S. dollar that were used in the remeasurement process for preparing the Company's consolidated financial statements. The changes in the carrying values of goodwill, customer relationships, and tradename intangible assets for Skip Hop and Carter's Mexico, including the related accumulated amortization, that were not attributable to amortization expense was also impacted by foreign currency exchange rate fluctuations.

Amortization expense for intangible assets subject to amortization was approximately $3.7 million, $2.6 million, and $1.9 million for fiscal years 2018, 2017, and 2016, respectively.

The estimated amortization expense for the next five fiscal years is as follows:



(dollars in thousands)	Amortization expense
2019	$	3,732
2020	$	3,732
2021	$	3,732
2022	$	3,732
2023	$	3,690

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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