Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v2.4.0.8
Goodwill and Other Intangible Assets
9 Months Ended
Nov. 01, 2014
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

 

12.  Goodwill and Other Intangible Assets

 

Goodwill

 

Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the nine months ended November 1, 2014 are as follows (in thousands):

 

 

 

Retail

 

Corporate
Apparel

 

Total

 

Balance at February 1, 2014

 

$

96,919

 

$

29,084

 

$

126,003

 

Goodwill of acquired businesses

 

767,804

 

 

767,804

 

Translation adjustment

 

(294

)

(747

)

(1,041

)

Balance at November 1, 2014

 

$

864,429

 

$

28,337

 

$

892,766

 

 

The goodwill of acquired businesses resulted primarily from our acquisition of Jos. A. Bank.  As indicated in Note 2, the preliminary estimates of the fair value of the identifiable assets acquired and liabilities assumed for the Jos. A. Bank acquisition, including goodwill, are not yet final and are subject to revisions until management’s appraisals and estimates are finalized, which may result in adjustments to the preliminary values as reported for the retail reportable segment at November 1, 2014.

 

Goodwill is evaluated for impairment annually as of our fiscal year end.  A more frequent evaluation is performed if events or circumstances indicate that impairment could have occurred. Such events or circumstances could include, but are not limited to, new significant negative industry or economic trends, unanticipated changes in the competitive environment, decisions to significantly modify or dispose of operations and a significant sustained decline in the market price of our stock.  No additional impairment evaluation was considered necessary during the third quarter of fiscal 2014.

 

Intangible Assets

 

The gross carrying amount and accumulated amortization of our identifiable intangible assets are as follows (in thousands):

 

 

 

November 1,
2014

 

November 2,
2013

 

February 1,
2014

 

 

 

 

 

 

 

 

 

Amortizable intangible assets:

 

 

 

 

 

 

 

Carrying amount:

 

 

 

 

 

 

 

Trademarks, tradenames, and other intangibles

 

$

41,028

 

$

14,288

 

$

12,012

 

Customer relationships

 

86,699

 

32,543

 

33,602

 

Total carrying amount

 

127,727

 

46,831

 

45,614

 

Accumulated amortization:

 

 

 

 

 

 

 

Trademarks, tradenames, and other intangibles

 

(10,391

)

(8,882

)

(9,007

)

Customer relationships

 

(14,659

)

(8,898

)

(9,895

)

Total accumulated amortization

 

(25,050

)

(17,780

)

(18,902

)

Total amortizable intangible assets, net

 

102,677

 

29,051

 

26,712

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

Trademarks and tradename

 

570,380

 

31,274

 

31,315

 

Total intangible assets, net

 

$

673,057

 

$

60,325

 

$

58,027

 

 

The pretax amortization expense associated with intangible assets subject to amortization totaled $3.5 million and $0.8 million for the three months ended November 1, 2014 and November 2, 2013, respectively.  The pretax amortization expense associated with intangible assets subject to amortization totaled $6.5 million and $2.5 million for the nine months ended November 1, 2014 and November 2, 2013, respectively.  Pretax amortization associated with intangible assets subject to amortization at November 1, 2014 is estimated to be $3.5 million for the remainder of fiscal year 2014, $13.9 million for each of the fiscal years 2015 and 2016, $13.8 for fiscal year 2017 and $13.7 million for fiscal year 2018.