VF Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

Intangible Assets

3 Months Ended

Apr. 02, 2016

Note E – Intangible Assets


Dollars in thousands	Weighted Average Amortization Period		Amortization Methods	March 2016						December 2015
Dollars in thousands	Weighted Average Amortization Period		Amortization Methods	Cost		Accumulated Amortization		Net Carrying Amount		Net Carrying Amount
Amortizable intangible assets:
Customer relationships		20 years	Accelerated	$	284,621	$	126,438	$	158,183	$	156,047
License agreements		24 years	Accelerated and straight-line		179,906		95,306		84,600		86,540
Trademark		16 years	Straight-line		58,132		908		57,224		—
Other		11 years	Straight-line		5,870		2,401		3,469		3,443

Amortizable intangible assets, net									303,476		246,030

Indefinite-lived intangible assets:
Trademarks and trade names									1,867,341		1,866,589

Intangible assets, net								$	2,170,817	$	2,112,619

In connection with the contract renewal during the first quarter of 2016, VF determined that the trademark intangible asset related to the Rock & Republic^® brand has a finite life. Accordingly, we reclassified the $58.1 million trademark balance from indefinite-lived intangible assets to amortizable intangible assets, and commenced amortization of the trademark over its estimated useful life of 16 years.

Amortization expense for the first quarter of 2016 was $6.9 million. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the years 2016 through 2020 is $27.5 million, $26.2 million, $25.6 million, $24.9 million and $24.0 million, respectively.