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ACQUISITION AND GOODWILL
 6 Months Ended
Jul. 04, 2015
ACQUISITION AND GOODWILL  
ACQUISITION AND GOODWILL

2. ACQUISITION AND GOODWILL

 

Fossil Accessories South Africa Acquisition. On February 1, 2015, the Company closed a share purchase agreement with S. Keren Watch Group (“SKWG”), pursuant to which the Company acquired 51% ownership in the Cape Town, South Africa-based distributor for approximately $4.8 million in cash, net of cash acquired and including working capital adjustments (the “SKWG Acquisition”). SKWG had been a distribution partner for the Company for over 23 years, representing all Fossil brands and most of the Company’s licensed brands in South Africa. Upon closing of the share purchase, SKWG was renamed Fossil Accessories South Africa Pty, Ltd. The Company recorded $4.5 million of goodwill related to the acquisition.

 

Goodwill is the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. The changes in the carrying amount of goodwill, which is not subject to amortization, were as follows (in thousands):

 

 

 

Americas

 

Europe

 

Asia

 

Total

 

Balance at January 3, 2015

 

$
119,438

 

$
66,433

 

$
11,857

 

$
197,728

 

Acquisitions

 
0

 
4,487

 
0

 
4,487

 

Foreign currency changes

 
(102

)
(4,413

)
41

 
(4,474

)

 

 

 

 

 

 

 

 

 

 

Balance at July 4, 2015

 

$
119,336

 

$
66,507

 

$
11,898

 

$
197,741