Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

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Goodwill and Other Intangible Assets
6 Months Ended
Aug. 03, 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 six months ended August 3, 2019 are as follows (in thousands):

    

Total

 

Balance at February 2, 2019

$

79,491

Translation adjustment

 

(208)

Balance at August 3, 2019

$

79,283

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 triggering event occurred during the first six months ended August 3, 2019 that required an interim goodwill impairment test.

Intangible Assets

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

    

August 3,

    

August 4,

February 2,

    

2019

    

2018

    

2019

 

Amortizable intangible assets:

Carrying amount:

Trademarks, tradenames and franchise agreements

$

15,887

$

16,055

$

16,067

Favorable leases

12,876

11,844

Customer relationships

 

24,645

 

26,415

 

26,553

Total carrying amount

 

40,532

 

55,346

 

54,464

Accumulated amortization:

Trademarks, tradenames and franchise agreements

 

(10,871)

 

(10,634)

 

(10,796)

Favorable leases

(5,420)

(5,162)

Customer relationships

 

(18,523)

 

(17,652)

 

(18,851)

Total accumulated amortization

 

(29,394)

 

(33,706)

 

(34,809)

Total amortizable intangible assets, net

 

11,138

 

21,640

 

19,655

Indefinite-lived intangible assets:

Trademarks and tradename

 

144,171

 

144,241

 

144,246

Total intangible assets, net

$

155,309

$

165,881

$

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 $1.2 million for the three and six months ended August 3, 2019. 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. Amortization associated with intangible assets subject to amortization at August 3, 2019 is estimated to be $1.2 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.