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GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 28, 2024
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. RetailU.S. WholesaleInternationalTotal
Balance at December 31, 2022(*)
$83,934 $74,454 $50,945 $209,333 
Foreign currency impact— — 1,204 1,204 
Balance at December 30, 2023$83,934 $74,454 $52,149 $210,537 
Foreign currency impact— — (3,662)(3,662)
Balance at December 28, 2024$83,934 $74,454 $48,487 $206,875 
(*)Goodwill attributable to the International segment 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:
December 28, 2024December 30, 2023
(dollars in thousands)Weighted-average useful lifeGross amountAccumulated amortizationNet amountGross amountAccumulated amortizationNet amount
Carter’s tradename
Indefinite$220,233 $— $220,233 $220,233 $— $220,233 
OshKosh tradename(1)
Indefinite40,000 — 40,000 70,000 — 70,000 
Skip Hop tradename
Indefinite6,000 — 6,000 6,000 — 6,000 
Finite-life tradenames(2)
5 - 20 years
3,911 2,136 1,775 3,911 1,958 1,953 
Total tradenames, net$270,144 $2,136 $268,008 $300,144 $1,958 $298,186 
Skip Hop customer relationships15 years$47,300 $24,540 $22,760 $47,300 $21,363 $25,937 
Carter’s Mexico customer relationships10 years3,145 2,362 783 3,324 2,023 1,301 
Total customer relationships, net$50,445 $26,902 $23,543 $50,624 $23,386 $27,238 
(1)A non-cash pre-tax impairment charge of $30.0 million on the OshKosh indefinite-lived tradename asset was recorded during fiscal 2024.
(2)Relates to the acquisition of rights to the Carter’s brand in Chile in December 2014 and the acquisition of the Skip Hop brand in February 2017.
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. These impairment reviews are performed in accordance with ASC 350, “Intangibles--Goodwill and Other” (“ASC 350”).
In fiscal 2024, the Company performed a quantitative impairment test on the goodwill ascribed to each of the Company’s reporting units and on the value of its indefinite-lived intangible tradename assets as of December 28, 2024.
The goodwill impairment assessment for each reporting unit was performed in accordance with ASC 350 and compares the carrying value of each reporting unit to its fair value. Consistent with prior practice, the Company uses a 50% weighting of the income approach and a 50% weighting of the market approach to determine the fair value of a reporting unit. Based upon this assessment, there were no impairments on the value of goodwill.
The 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, a non-cash pre-tax impairment charge of $30.0 million was recorded during the fourth quarter of fiscal 2024 on our indefinite-lived OshKosh tradename asset to write-down the carrying value to $40.0 million. This impairment charge was the result of decreased actual and projected sales and profitability for our OshKosh brand.
In fiscal 2022, a non-cash pre-tax impairment charge of $9.0 million was recorded during the fourth quarter of fiscal 2022 on our indefinite-lived Skip Hop tradename asset to write-down the carrying value to $6.0 million. This impairment charge was due to increased discount rates, decreased actual and projected sales and profitability, and the announcement of the substantial doubt of a Skip Hop wholesale customer’s ability to continue to operate as a going concern.
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 primarily 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 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 $3.7 million for each of fiscal years 2024, 2023, and 2022. Amortization expense is included in SG&A expenses on the Company’s consolidated statements of operations.
The estimated amortization expense for the next five fiscal years is as follows:
(dollars in thousands)Amortization expense
2025$3,657 
2026$3,657 
2027$3,531 
2028$3,354 
2029$3,354