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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Jan. 01, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS 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 | — |  |  | — |  |  | 492 |  |  | 492 |
Balance at January 2, 2021 | $ | 83,934 |  |  | $ | 74,454 |  |  | $ | 53,388 |  |  | $ | 211,776 |
Foreign currency impact | — |  |  | — |  |  | 247 |  |  | 247 |
Balance at January 1, 2022(2) | $ | 83,934 |  |  | $ | 74,454 |  |  | $ | 53,635 |  |  | $ | 212,023 |
(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:
|  |  | January 1, 2022 |  |  | 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(1) | Indefinite |  | 70,000 |  |  | — |  |  | 70,000 |  |  |  | 70,000 |  |  | — |  |  | 70,000 |
Skip Hop tradename(2) | Indefinite |  | 15,000 |  |  | — |  |  | 15,000 |  |  |  | 15,000 |  |  | — |  |  | 15,000 |
Finite-life tradenames | 5 - 20 years |  | 3,911 |  |  | 1,501 |  |  | 2,410 |  |  |  | 3,911 |  |  | 1,251 |  |  | 2,660 |
Total tradenames, net |  |  | $ | 309,144 |  |  | $ | 1,501 |  |  | $ | 307,643 |  |  |  | $ | 309,144 |  |  | $ | 1,251 |  |  | $ | 307,893 |
Skip Hop customer relationships | 15 years |  | $ | 47,300 |  |  | $ | 15,010 |  |  | $ | 32,290 |  |  |  | $ | 47,300 |  |  | $ | 11,834 |  |  | $ | 35,466 |
Carter’s Mexico customer relationships | 10 years |  | 3,047 |  |  | 1,368 |  |  | 1,679 |  |  |  | 3,108 |  |  | 1,064 |  |  | 2,044 |
Total customer relationships, net |  |  | $ | 50,347 |  |  | $ | 16,378 |  |  | $ | 33,969 |  |  |  | $ | 50,408 |  |  | $ | 12,898 |  |  | $ | 37,510 |
(1)In 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 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. The carrying values of goodwill and indefinite-lived tradename assets are subject to annual impairment reviews as of the last day of each fiscal year. Between annual assessments, impairment reviews may also be triggered by any significant events or changes in circumstances affecting our business. Based upon our most recent annual assessment, performed as of January 1, 2022, using a qualitative assessment, there were no impairments in the values of goodwill or indefinite-lived or definite-lived intangible assets. In the first quarter of fiscal 2020, the Company concluded that impairment indicators existed due to the decrease in the Company’s market capitalization, lower than expected actual sales, and lower projected sales and profitability, primarily due to the impacts from the outbreak of COVID-19. As a result, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments of 1) the goodwill ascribed to the Other International reporting unit recorded in connection with the allocation of goodwill to the newly created International segment as a result of the acquisition of Bonnie Togs in 2011 and 2) on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively. The goodwill impairment assessment for the Other International reporting unit was performed in accordance with ASC 350, “Intangibles--Goodwill and Other” (“ASC 350”) and compares the carrying value of the Other International reporting unit to its fair value. Consistent with prior practice, the fair value of the Other International reporting unit was determined using discounted cash flows (“income approach”) and relevant data from guideline public companies (“market approach”). As a result of this assessment, a goodwill impairment charge of $17.7 million was recorded to our Other International reporting unit in the International segment during the first quarter of fiscal 2020. The goodwill impairment charge recorded on our Other International reporting unit included charges of $9.4 million, $5.2 million, and $3.1 million to Skip Hop, Carter’s, and Carter’s Mexico goodwill, respectively. The carrying value of the Company’s goodwill for the Other International reporting unit as of January 1, 2022 was $11.7 million. The OshKosh and Skip Hop indefinite-lived tradename asset assessments were performed in accordance with ASC 350 and were determined using a discounted cash flow analysis which examined the hypothetical cost savings that accrue as a result of not having to license the tradename from another owner. Based on these assessments, charges of $15.5 million and $11.0 million were recorded during the first quarter of fiscal 2020 on our indefinite-lived OshKosh and Skip Hop tradename assets, respectively. The charge recorded on our indefinite-lived OshKosh tradename asset included charges of $13.6 million, $1.6 million, and $0.3 million 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. The charge recorded on our indefinite-lived Skip Hop tradename asset included charges of $6.8 million, $3.7 million, and $0.5 million 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. The carrying values of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets as of January 1, 2022 were $70.0 million and $15.0 million, respectively. In the third quarter of fiscal 2019, the Company’s Skip Hop business experienced lower than expected actual and projected sales and profitability due to lower domestic demand, including the loss of a significant customer that declared bankruptcy (Toys “R” Us), lower international demand and higher product costs primarily driven by tariffs imposed on products sourced from China. As a result, the Company conducted an interim impairment assessment in the third quarter of fiscal 2019 on the value of the Company’s indefinite-lived Skip Hop tradename asset that was recorded in connection with the acquisition of Skip Hop Holdings, Inc. in February 2017. The indefinite-lived tradename asset assessment was performed in accordance with ASC 350, “Intangibles--Goodwill and Other” and was determined using a discounted cash flow analysis which examined the hypothetical cost savings that accrue as a result of our ownership of the tradename. Based on this assessment, a charge of $30.8 million was recorded during the third quarter of fiscal 2019 on our indefinite-lived Skip Hop tradename asset. The charge included charges of $19.1 million, $10.5 million, and $1.2 million 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. Changes in the carrying values between comparative periods for goodwill related to the International segment 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 for Skip Hop and Carter’s Mexico and the changes in the carrying value of customer relationships for 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 for each of fiscal years 2021, 2020, and 2019. The estimated amortization expense for the next five fiscal years is as follows:
(dollars in thousands) | Amortization expense
2022 | $ | 3,727 |
2023 | $ | 3,685 |
2024 | $ | 3,655 |
2025 | $ | 3,655 |
2026 | $ | 3,655 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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