TAPESTRY, INC.TPR

TAPESTRY, INC. Goodwill & Intangibles Disclosure

10-KFiled Aug 14, 20253 min read
GOODWILL AND OTHER INTANGIBLE ASSETS
The Company performs its annual impairment assessment of goodwill as well as brand intangibles at the beginning of the fourth quarter of each fiscal year or if an event occurs that would more likely than not reduce the fair value below its carrying amount.
During the fourth quarter of fiscal 2025, the Company performed its annual goodwill and indefinite-lived intangible assets impairment analysis. The assessment concluded that the fair values of the Kate Spade reporting unit and indefinite-lived brand
intangible asset did not exceed their respective carrying values due to a reduction in both current and future expected cash flows, which includes an estimated impact of cost increases due to changes in tariff and trade policies.
Accordingly, the Company recorded a goodwill impairment charge of $244.1 million related to the Kate Spade reporting unit during the fourth quarter of the fiscal year. The Company also recorded an impairment charge of $610.7 million related to the Kate Spade indefinite-lived brand intangible asset. The goodwill and brand intangible asset impairment charges were recorded within SG&A expenses on the Company's Consolidated Statement of Operations.
The estimated fair value of the Company’s reporting units are based on a weighted average of the income and market approaches. The income approach is based on estimated discounted future cash flows, while the market approach is based on earnings multiples of selected guideline companies. The approach, which qualifies as Level 3 in the fair value hierarchy, incorporated a number of significant assumptions and judgments, including, but not limited to, estimated future cash flows, discount rates, income tax rates, terminal growth rates and valuation multiples derived from comparable publicly traded companies.
Goodwill
The change in the carrying amount of the Company’s Goodwill by segment is as follows:
CoachKate SpadeStuart WeitzmanTotal
(millions)
Balance at July 1, 2023$597.5 $630.0 $— $1,227.5 
Foreign exchange impact(19.5)(3.9)— (23.4)
Balance at June 29, 2024578.0 626.1 — 1,204.1 
Impairment charges— (244.1)— (244.1)
Foreign exchange impact19.5 3.8 — 23.3 
Balance at June 28, 2025$597.5 $385.8 $— $983.3 
Intangible Assets
Intangible assets consist of the following:
June 28, 2025June 29, 2024
Gross
Carrying
Amount		Accum.
Amort.		NetGross
Carrying
Amount		Accum.
Amort.		Net
(millions)
Intangible assets subject to amortization:
Customer relationships(1)
$45.6 $(25.1)$20.5 $100.3 $(56.5)$43.8 
Total intangible assets subject to amortization45.6 (25.1)20.5 100.3 (56.5)43.8 
Intangible assets not subject to amortization:
Trademarks and trade names(2)
699.1 — 699.1 1,309.8 — 1,309.8 
Total intangible assets$744.7 $(25.1)$719.6 $1,410.1 $(56.5)$1,353.6 
(1)    As of June 28, 2025, $18.2 million related to the net carrying value of customer relationships of the Stuart Weitzman Business were reclassified to Assets held for sale in the Company's Condensed Consolidated Balance Sheet. Refer to Note 5, "Acquisitions and Divestitures," for further information.
(2)    The Company recognized a $610.7 million non-cash charge related to the impairment of the Kate Spade indefinite-lived brand intangible asset in fiscal 2025.
Amortization expense for the Company’s definite-lived intangible assets was $5.2 million and $6.5 million for fiscal 2025 and fiscal 2024, respectively.
As of June 28, 2025, the expected amortization expense for intangible assets is as follows:
 Amortization Expense
(millions)
Fiscal Year
Fiscal 2026$3.0 
Fiscal 20273.0 
Fiscal 20283.0 
Fiscal 20293.0 
Fiscal 20303.0 
Fiscal 2031 and thereafter5.5 
Total$20.5 
The expected amortization expense above reflects remaining useful life of approximately 7.0 years for customer relationships.

Historical Timeline

Fiscal YearFiled
2025Aug 14, 2025Showing above
2024Aug 15, 2024
2023Aug 17, 2023
2022Aug 18, 2022
2021Aug 19, 2021
2020Aug 13, 2020
2019Aug 15, 2019
2018Aug 16, 2018
2017Aug 18, 2017
2016Aug 19, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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