XML 87 R13.htm IDEA: XBRL DOCUMENT
v2.4.1.9

GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
--- | ---
Dec. 31, 2014
GOODWILL AND INTANGIBLE ASSETS | NOTE D — GOODWILL AND INTANGIBLE ASSETS The Company’s intangible assets, all of which are included in the U.S. Wholesale and International segments, consist of the following (in thousands):
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |
|  | Gross |  |  | Accumulated Amortization |  |  | Net |  |  | Gross |  |  | Accumulated Amortization |  |  | Net |
Goodwill |  | $ | 18,101 |  |  | $ | — |  |  | $ | 18,101 |  |  | $ | 5,085 |  |  | $ | — |  |  | $ | 5,085 |
Indefinite -lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  |  | 7,616 |  |  |  | — |  |  |  | 7,616 |  |  |  | 18,364 |  |  |  | — |  |  |  | 18,364 |
Finite -lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Licenses |  |  | 15,847 |  |  |  | (8,007 | ) |  |  | 7,840 |  |  |  | 15,847 |  |  |  | (7,551 | ) |  |  | 8,296 |
Trade names |  |  | 29,768 |  |  |  | (4,568 | ) |  |  | 25,200 |  |  |  | 10,056 |  |  |  | (2,677 | ) |  |  | 7,379 |
Customer relationships |  |  | 50,823 |  |  |  | (6,754 | ) |  |  | 44,069 |  |  |  | 18,406 |  |  |  | (2,736 | ) |  |  | 15,670 |
Other |  |  | 1,202 |  |  |  | (431 | ) |  |  | 771 |  |  |  | 584 |  |  |  | (229 | ) |  |  | 355 |
Total |  | $ | 123,357 |  |  | $ | (19,760 | ) |  | $ | 103,597 |  |  | $ | 68,342 |  |  | $ | (13,193 | ) |  | $ | 55,149 |
The Company performed its 2014 annual impairment test for its indefinite-lived trade names as of October 1, 2014. The test involved the assessment of the fair market values of the Company’s indefinite-lived trade names based on Level 3 unobservable inputs, using a relief from royalty approach, assuming a discount rate of 14.0%-15.5% and an average long term growth rate of 2.5%-3%. The result of the impairment assessment of the Company’s indefinite-lived trade names indicated that the carrying values of the Elements® and Melannco® trade names exceeded their fair values as of October 1, 2014. The Company’s home décor products category has experienced a decline in sales and profit in recent years. The Company believes the most significant factor resulting in the decline was the reduction in retail space allocated to the category which has also contributed to pricing pressure. The Company has been re-branding a portion of the home décor products under the Mikasa® and Pfaltzgraff® trade names and more recently under the Bombay® license. The Company is also taking advantage of promotional sale opportunities, such as flash sale websites and online retailers to offset the effect of a reduction in retail space for this product category and pricing pressures. As a result of these factors, the Company recorded an impairment charge of $3.4 million, related to these brands, in its consolidated statement of operations for the year ended December 31, 2014. In addition, as of October 1, 2014 and December 31, 2014, the Company assessed the carrying value of its goodwill and determined based on quantitative and qualitative factors that no impairment existed. As part of the Company’s annual impairment analysis of indefinite-lived trade names it was determined that certain of the Company’s trade names, previously estimated to contribute to cash flows indefinitely, have definite lives. Accordingly, these trade names were reclassified from indefinite-lived or unamortizable intangible assets to finite lived or amortizable intangible assets as of October 1, 2014. The remaining useful lives of these trade names is 10 to 15 years. A summary of the activities related to the Company’s intangible assets for the year ended December 31, 2014 consists of the following (in thousands):
|  | Intangible Assets |  |  | Goodwill |  |  | Total Intangible Assets and Goodwill |
Goodwill and Intangible Assets, December 31, 2011 |  | $ | 44,264 |  |  | $ | 2,673 |  |  | $ | 46,937 |
Acquisition of trade names |  |  | 3,940 |  |  |  | — |  |  |  | 3,940 |
Acquisition of customer relationships |  |  | 7,240 |  |  |  | — |  |  |  | 7,240 |
Goodwill from F&F acquisition |  |  | — |  |  |  | 2,412 |  |  |  | 2,412 |
Impairment of Elements® trade name |  |  | (1,069 | ) |  |  | — |  |  |  | (1,069 | )
Amortization |  |  | (1,618 | ) |  |  | — |  |  |  | (1,618 | )
Goodwill and Intangible Assets, December 31, 2012 |  |  | 52,757 |  |  |  | 5,085 |  |  |  | 57,842 |
Amortization |  |  | (2,693 | ) |  |  | — |  |  |  | (2,693 | )
Goodwill and Intangible Assets, December 31, 2013 |  |  | 50,064 |  |  |  | 5,085 |  |  |  | 55,149 |
Acquisition of trade names |  |  | 12,348 |  |  |  | — |  |  |  | 12,348 |
Acquisition of customer relationships |  |  | 32,417 |  |  |  | — |  |  |  | 32,417 |
Acquisition of other intangible assets |  |  | 618 |  |  |  | — |  |  |  | 618 |
Goodwill from Kitchen Craft acquisition |  |  | — |  |  |  | 13,016 |  |  |  | 13,016 |
Impairment of trade names |  |  | (3,384 | ) |  |  | — |  |  |  | (3,384 | )
Amortization |  |  | (6,567 | ) |  |  | — |  |  |  | (6,567 | )
Goodwill and Intangible Assets, December 31, 2014 |  | $ | 85,496 |  |  | $ | 18,101 |  |  | $ | 103,597 |
The weighted-average amortization periods for the Company’s finite-lived intangible assets as of December 31, 2014 are as follows:
|  | Years |
Trade names |  |  | 14 |
Licenses |  |  | 33 |
Customer relationships |  |  | 13 |
Other |  |  | 11 |
Estimated amortization expense for each of the five succeeding fiscal years is as follows (in thousands):
Year ending December 31, |  |  |
2015 |  | $ | 7,004 |
2016 |  |  | 6,996 |
2017 |  |  | 6,708 |
2018 |  |  | 6,708 |
2019 |  |  | 6,708 |
Amortization expense for the years ended December 31, 2014, 2013, and 2012 was $6.6 million, $2.7 million, and $1.6 million, respectively.

X
- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration