Annual report pursuant to Section 13 and 15(d)

Goodwill

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Goodwill
 12 Months Ended
Dec. 31, 2011
Goodwill [Abstract]  
Goodwill

Note G — Goodwill

Changes in goodwill are summarized by business segment as follows:

 

     Outdoor &                        Contemporary        
     Action Sports     Jeanswear     Imagewear      Sportswear     Brands     Total  
     In thousands  

Balance, December 2008

      606,612        235,818        56,703         215,767        198,898      $ 1,313,798   

2009 acquisition

      —        —        —         —        142,361        142,361   

Impairment charges

      (43,398 )      —        —         (58,453 )      —        (101,851 ) 

Contingent consideration

      3,818        —        —         —        —        3,818   

Adjustments to purchase price allocation

      (302 )      —        —         —        (3,152 )      (3,454 ) 

Currency translation

      8,149        3,112        —         —        1,747        13,008   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Balance, December 2009

      574,879        238,930        56,703         157,314        339,854        1,367,680   

2010 acquisition

      16,938        —        —         —        —        16,938   

Impairment charge

      —        —        —         —        (195,169 )      (195,169 ) 

Contingent consideration

      (78 )      —        —         —        —        (78 ) 

Currency translation

      (16,992 )      (3,417 )      —         —        (2,324 )      (22,733 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Balance, December 2010

      574,747        235,513        56,703         157,314        142,361        1,166,638   

2011 acquisition

      871,884        —        —         —        —        871,884   

Contingent consideration

      —        —        1,065         —        —        1,065   

Currency translation

      (9,035 )      (7,092 )      —         —        —        (16,127 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Balance, December 2011

    $ 1,437,596      $ 228,421      $ 57,768       $ 157,314      $ 142,361      $ 2,023,460   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

In 2010, in connection with its annual impairment testing, VF recorded an impairment charge of $195.2 million to reduce the carrying value of goodwill in its 7 For All Mankind® business unit, which is part of the Contemporary Brands Coalition. Similarly in 2009, VF recorded impairment charges of $31.1 million, $12.3 million and $58.5 million to reduce the carrying values of goodwill related to its Reef®, lucy® and Nautica® business units. The Reef® and lucy® business units are part of the Outdoor & Action Sports Coalition, and Nautica® is part of the Sportswear Coalition. The impairment charges in 2010 and 2009 shown above represent the cumulative impairment charges for the business segments. See Note T for additional information.