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

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

Intangible Assets

9 Months Ended

Oct. 01, 2016

Note F – Intangible Assets


					September 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	$	280,909	$	132,435	$	148,474	$	156,047
License agreements		24 years		Accelerated and straight-line		179,488		99,228		80,260		86,540
Trademark		16 years		Straight-line		58,132		2,725		55,407		—
Other		10 years		Straight-line		6,358		2,678		3,680		3,443

Amortizable intangible assets, net										287,821		246,030

Indefinite-lived intangible assets:
Trademarks and trade names										1,682,967		1,702,581

Intangible assets, net									$	1,970,788	$	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 third quarter and first nine months of 2016 was $6.9 million and $20.8 million, respectively. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the years 2016 through 2020 is $27.5 million, $26.5 million, $25.9 million, $25.2 million and $24.3 million, respectively.

There were no impairment charges recorded in the third quarter or first nine months of 2016. Refer to Note O for discussion of the Company’s interim impairment testing of the Nautica^® trademark during the third quarter of 2016.