Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.10.0.1
Goodwill and Other Intangible Assets
6 Months Ended
Aug. 04, 2018
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

13.  Goodwill and Other Intangible Assets

 

Goodwill

 

Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the six months ended August 4, 2018 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

    

Retail

    

Apparel

    

Total

 

Balance at February 3, 2018

 

$

94,305

 

 

25,987

 

$

120,292

 

Goodwill of divested business (see Note 2)

 

 

(13,588)

 

 

 —

 

 

(13,588)

 

    Translation adjustment

 

 

(1,042)

 

 

(1,976)

 

 

(3,018)

 

Balance at August 4, 2018

 

$

79,675

 

$

24,011

 

$

103,686

 

 

Goodwill is evaluated for impairment at least annually. 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 impairment evaluation was considered necessary during the first six months ended August 4, 2018.

 

Intangible Assets 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

    

August 4,

    

July 29,

 

February 3,

 

 

    

2018

    

2017

    

2018

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

Carrying amount:

 

 

 

 

 

 

 

 

 

 

Trademarks, tradenames and franchise agreements

 

$

16,055

 

$

16,076

 

$

16,273

 

Favorable leases

 

 

12,876

 

 

13,475

 

 

13,229

 

Customer relationships

 

 

26,415

 

 

26,630

 

 

28,713

 

Total carrying amount

 

 

55,346

 

 

56,181

 

 

58,215

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Trademarks, tradenames and franchise agreements

 

 

(10,634)

 

 

(10,302)

 

 

(10,558)

 

Favorable leases

 

 

(5,420)

 

 

(4,481)

 

 

(5,010)

 

Customer relationships

 

 

(17,652)

 

 

(15,534)

 

 

(17,992)

 

Total accumulated amortization

 

 

(33,706)

 

 

(30,317)

 

 

(33,560)

 

Total amortizable intangible assets, net

 

 

21,640

 

 

25,864

 

 

24,655

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

Trademarks and tradename

 

 

144,241

 

 

144,249

 

 

144,332

 

Total intangible assets, net

 

$

165,881

 

$

170,113

 

$

168,987

 

 

Pre-tax amortization expense associated with intangible assets subject to amortization totaled $1.0 million and $2.0 million for the three and six months ended August 4, 2018.  Pre-tax amortization expense associated with intangible assets subject to amortization totaled $1.0 million and $2.1 million for the three and six months ended July 29, 2017, respectively.  Pre-tax amortization associated with intangible assets subject to amortization at August 4, 2018 is estimated to be $1.9 million for the remainder of fiscal 2018,  $3.7 million for fiscal 2019,  $3.6 million for fiscal 2020,  $3.5 million for fiscal 2021 and $2.2 million for fiscal 2022.