GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jul. 03, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The balances and changes in the carrying amount of goodwill attributable to each segment were as follows:


(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Balance at December 28, 2019	$	83,934	$	74,454	$	70,638	$	229,026


Goodwill impairment(1)	—		—		(17,742)		(17,742)
Foreign currency impact	—		—		(2,711)		(2,711)
Balance at June 27, 2020	$	83,934	$	74,454	$	50,185	$	208,573


Balance at January 2, 2021(2)	$	83,934	$	74,454	$	53,388	$	211,776



Foreign currency impact	—		—		1,419		1,419
Balance at July 3, 2021(2)	$	83,934	$	74,454	$	54,807	$	213,195

(1)In the first quarter of fiscal 2020, a charge of $17.7 million was recorded to reflect the impairment of the value ascribed to the goodwill in the Other International reporting unit in the International segment.

(2)Goodwill for the International reporting unit is net of accumulated impairment losses of $17.7 million.

A summary of the carrying value of the Company’s intangible assets were as follows:


		July 3, 2021						January 2, 2021
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount		Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233	$	220,233	$	—	$	220,233
OshKosh tradename	Indefinite	70,000		—		70,000		70,000		—		70,000
Skip Hop tradename	Indefinite	15,000		—		15,000		15,000		—		15,000
Finite-life tradenames	5-20 years	3,911		1,376		2,535		3,911		1,251		2,660

Total tradenames		$	309,144	$	1,376	$	307,768	$	309,144	$	1,251	$	307,893

Skip Hop customer relationships	15 years	$	47,300	$	13,422	$	33,878	$	47,300	$	11,834	$	35,466
Carter’s Mexico customer relationships	10 years	3,116		1,217		1,899		3,108		1,064		2,044
Total customer relationships		$	50,416	$	14,639	$	35,777	$	50,408	$	12,898	$	37,510


		June 27, 2020
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233
OshKosh tradename(1)	Indefinite	70,000		—		70,000
Skip Hop tradename(2)	Indefinite	15,000		—		15,000
Finite-life tradenames	5-20 years	3,911		1,127		2,784
Total tradenames		$	309,144	$	1,127	$	308,017

Skip Hop customer relationships	15 years	$	47,300	$	10,245	$	37,055
Carter’s Mexico customer relationships	10 years	2,814		919		1,895
Total customer relationships		$	50,114	$	11,164	$	38,950

(1)In the first quarter of fiscal 2020, a charge of $13.6 million, $1.6 million, and $0.3 million was recorded on our indefinite-lived OshKosh tradename asset in the U.S. Retail, U.S. Wholesale, and International segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived OshKosh tradename asset.

(2)In the first quarter of fiscal 2020, a charge of $6.8 million, $3.7 million, and $0.5 million was recorded on our indefinite-lived Skip Hop tradename asset in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset.

Amortization expense for intangible assets subject to amortization was approximately $0.9 million for both second fiscal quarters ended July 3, 2021 and June 27, 2020. Amortization expense was approximately $1.9 million for both the first two quarters of fiscal 2021 and for the first two quarters of fiscal 2020.

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


(dollars in thousands)	Amortization expense
Remainder of 2021	$	1,869
2022	$	3,738
2023	$	3,696
2024	$	3,666
2025	$	3,666
2026	$	3,666