Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.5.0.2
Intangible Assets
6 Months Ended
Jul. 02, 2016
Intangible Assets

Note F – Intangible Assets

 

                   June 2016      December 2015  
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       $ 279,635       $ 128,282       $ 151,353       $ 156,047   

License agreements

     24 years        

 

Accelerated and

straight-line

  

  

     179,476         97,136         82,340         86,540   

Trademark

     16 years         Straight-line         58,132         1,817         56,315         —     

Other

     10 years         Straight-line         6,314         2,505         3,809         3,443   
              

 

 

    

 

 

 

Amortizable intangible assets, net

                 293,817         246,030   
              

 

 

    

 

 

 

Indefinite-lived intangible assets:

                 

Trademarks and trade names

                 1,673,489         1,702,581   
              

 

 

    

 

 

 

Intangible assets, net

               $ 1,967,306       $ 1,948,611   
              

 

 

    

 

 

 

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 second quarter and first six months of 2016 was $7.0 million and $13.9 million, respectively. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the years 2016 through 2020 is $27.6 million, $26.5 million, $25.9 million, $25.2 million and $24.3 million, respectively.