Annual report pursuant to Section 13 and 15(d)

Intangible Assets

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Intangible Assets
 12 Months Ended
Dec. 31, 2011
Intangible Assets [Abstract]  
Intangible Assets

Note F — Intangible Assets

 

     Weighted                       
     Average                    Net  
     Amortization             Accumulated      Carrying  
     Period      Cost      Amortization      Amount  
     Dollars in thousands  

December 2011

            

Amortizable intangible assets:

            

Customer relationships

      19 years       $ 615,900       $ 138,083       $ 477,817   

License agreements

      24 years         183,704         59,465         124,239   

Trademarks and other

      8 years         19,364         7,430         11,934   
           

 

 

  

Amortizable intangible assets, net

               613,990   

Indefinite-lived intangible assets:

            

Trademarks and trade names

               2,344,473   
           

 

 

  

Intangible assets, net

             $ 2,958,463   
           

 

 

  
     Weighted                       
     Average                    Net  
     Amortization             Accumulated      Carrying  
     Period      Cost      Amortization      Amount  
     Dollars in thousands  

December 2010

            

Amortizable intangible assets:

            

Customer relationships

      19 years       $ 445,388       $ 108,081       $ 337,307   

License agreements

      24 years         179,557         51,816         127,741   

Trademarks and other

      8 years         15,035         10,365         4,670   
           

 

 

  

Amortizable intangible assets, net

               469,718   

Indefinite-lived intangible assets:

            

Trademarks and trade names

               1,021,207   
           

 

 

  

Intangible assets, net

             $ 1,490,925   
           

 

 

  

Intangible assets are amortized using the following methods: customer relationships — accelerated methods; license agreements — accelerated and straight-line methods; trademarks and other — straight-line method.

Intangible assets increased during 2011 primarily due to the Timberland acquisition and the Rock & Republic® trademarks acquisition. See Note B.

In 2010, VF recorded an impairment charge of $6.6 million to reduce the carrying value of its 7 For All Mankind® indefinite-lived trademarks to their fair value. Similarly in 2009, VF recorded impairment charges of $5.6 million for Reef® and $14.5 million for lucy® to reduce the carrying values of those trademarks to their fair values. See Note T for additional information.

Amortization expense was $41.7 million in 2011, $39.4 million in 2010 and $40.5 million in 2009. Estimated amortization expense for the years 2012 through 2016 is $48.5 million, $46.3 million, $44.6 million, $42.8 million and $41.1 million, respectively.