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

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]



	Weighted Average Amortization Period	Amortization Methods	Cost		Accumulated Amortization		Net Carrying Amount
	In thousands
December 2016
Amortizable intangible assets:
Customer relationships	20 years	Accelerated	$	268,417	$	131,029	$	137,388
License agreements	23 years	Accelerated and straight-line	175,084		97,941		77,143
Trademark	16 years	Straight-line	58,132		3,633		54,499
Other	10 years	Straight-line	6,036		2,739		3,297
Amortizable intangible assets, net							272,327
Indefinite-lived intangible assets:
Trademarks and trade names							1,567,371
Intangible assets, net							$	1,839,698



	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							1,702,581
Intangible assets, net							$	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.

In 2016, VF recorded an impairment charge of $40.3 million to write-off the remaining trademark asset balance for the lucy^®brand, which is part of the Outdoor & Action Sports Coalition. VF did not record any impairment charges in 2015 or 2014. Refer to Note T for additional information on the fair value measurements.

Amortization expense (excluding impairment charges) for 2016, 2015 and 2014 was $28.4 million, $25.1 million and $29.9 million, respectively. Estimated amortization expense for the years 2017 through 2021 is $30.7 million, $30.1 million, $29.4 million, $21.5 million and $20.5 million, respectively.