Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.19.2
Goodwill and Other Intangible Assets
3 Months Ended
May 04, 2019
GOODWILL AND INTANGIBLE ASSETS  
Goodwill and Other Intangible Assets

13.  Goodwill and Other Intangible Assets

 

Goodwill

 

Changes in the net carrying amount of goodwill, all of which relates to our retail segment, for the three months ended May 4, 2019 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

    

Total

 

Balance at February 2, 2019

 

$

79,491

 

     Translation adjustment

 

 

(527)

 

Balance at May 4, 2019

 

$

78,964

 

 

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 three months ended May 4, 2019.

 

Intangible Assets 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

    

May 4,

    

May 5,

 

February 2,

 

 

    

2019

    

2018

    

2019

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

Carrying amount:

 

 

 

 

 

 

 

 

 

 

Trademarks, tradenames and franchise agreements

 

$

16,074

 

$

16,155

 

$

16,067

 

Favorable leases

 

 

 —

 

 

12,967

 

 

11,844

 

Customer relationships

 

 

26,623

 

 

27,477

 

 

26,553

 

Total carrying amount

 

 

42,697

 

 

56,599

 

 

54,464

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Trademarks, tradenames and franchise agreements

 

 

(10,877)

 

 

(10,594)

 

 

(10,796)

 

Favorable leases

 

 

 —

 

 

(5,178)

 

 

(5,162)

 

Customer relationships

 

 

(19,455)

 

 

(17,790)

 

 

(18,851)

 

Total accumulated amortization

 

 

(30,332)

 

 

(33,562)

 

 

(34,809)

 

Total amortizable intangible assets, net

 

 

12,365

 

 

23,037

 

 

19,655

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

Trademarks and tradename

 

 

144,249

 

 

144,283

 

 

144,246

 

Total intangible assets, net

 

$

156,614

 

$

167,320

 

$

163,901

 

 

The elimination of favorable leases is due to the adoption of ASC 842, effective February 3, 2019.  Please see Note 12 for additional information.

 

Amortization expense associated with intangible assets subject to amortization totaled $0.6 million and $1.0 million for the three months ended May 4, 2019 and May 5, 2018.  Amortization associated with intangible assets subject to amortization at May 4, 2019 is estimated to be $1.9 million for the remainder of fiscal 2019,  $2.5 million for fiscal 2020,  $2.5 million for fiscal 2021,  $1.4 million for fiscal 2022 and $0.3 million for fiscal 2023.