VF Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangible Assets

Intangible Assets

12 Months Ended

Jan. 02, 2016

Note E — Intangible Assets


	Weighted Average Amortization Period		Amortization Methods	Cost		Accumulated Amortization		Net Carrying Amount
	In thousands
December 2015
Amortizable intangible assets:
Customer relationships		20 years	Accelerated	$	275,385	$	119,338	$	156,047
License agreements		24 years	Accelerated and straight-line		179,626		93,086		86,540
Other		11 years	Straight-line		5,636		2,193		3,443

Amortizable intangible assets, net									246,030
Indefinite-lived intangible assets:
Trademarks and trade names									1,866,589

Intangible assets, net								$	2,112,619


	Weighted Average Amortization Period		Amortization Methods	Cost		Accumulated Amortization		Net Carrying Amount
	In thousands
December 2014
Amortizable intangible assets:
Customer relationships		20 years	Accelerated	$	593,575	$	351,764	$	241,811
License agreements		24 years	Accelerated and straight-line		182,873		86,137		96,736
Other		9 years	Straight-line		12,138		7,775		4,363

Amortizable intangible assets, net									342,910
Indefinite-lived intangible assets:
Trademarks and trade names									2,090,642

Intangible assets, net								$	2,433,552

In 2015, VF recorded impairment charges of $40.5 million for 7 For All Mankind^® and $11.7 million for Splendid^® and Ella Moss^® to write off their remaining customer relationship asset balances. In addition, VF recorded impairment charges of $76.1 million for 7 For All Mankind^® and $15.3 million for Splendid^® and Ella Moss^® to reduce the carrying values of their indefinite-lived trademarks to fair value.

In 2014, VF recorded impairment charges of $56.6 million for 7 For All Mankind^® and $64.2 million for Splendid^® and Ella Moss^® to reduce the carrying values of their customer relationship assets to fair value. In addition, VF recorded impairment charges of $87.6 million for 7 For All Mankind^® and $45.7 million for Splendid^® and Ella Moss^® to reduce the carrying values of their indefinite-lived trademarks to fair value. VF did not record any impairment charges in 2013.

See Note S for additional information on the fair value measurements.

Amortization expense (excluding impairment charges) for 2015, 2014 and 2013 was $28.6 million, $42.1 million and $45.8 million, respectively. Estimated amortization expense for the years 2016 through 2020 is $24.2 million, $22.9 million, $22.3 million, $21.6 million and 20.6 million, respectively.