Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v2.4.1.9
Goodwill and Other Intangible Assets
3 Months Ended
May 02, 2015
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

 

10.  Goodwill and Other Intangible Assets

 

Goodwill

 

Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the three months ended May 2, 2015 are as follows (in thousands):

 

 

 

 

 

Corporate

 

 

 

 

 

Retail

 

Apparel

 

Total

 

Balance, January 31, 2015

 

$

861,180 

 

$

26,756 

 

$

887,936 

 

Goodwill of acquired business

 

4,361 

 

 

4,361 

 

Translation adjustment

 

995 

 

143 

 

1,138 

 

 

 

 

 

 

 

 

 

Balance, May 2, 2015

 

$

866,536 

 

$

26,899 

 

$

893,435 

 

 

 

 

 

 

 

 

 

 

 

 

 

As discussed 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 May 2, 2015.

 

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 additional impairment evaluation was considered necessary during the first quarter of fiscal 2015.

 

Intangible Assets

 

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

 

 

 

May 2,

 

May 3,

 

January 31,

 

 

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

Amortizable intangible assets:

 

 

 

 

 

 

 

Carrying amount:

 

 

 

 

 

 

 

Trademarks and tradenames

 

$

16,464

 

$

12,096

 

$

16,448

 

Favorable leases

 

24,400

 

 

24,400

 

Customer relationships

 

84,960

 

34,492

 

84,788

 

 

 

 

 

 

 

 

 

Total carrying amount

 

125,824

 

46,588

 

125,636

 

 

 

 

 

 

 

 

 

Accumulated amortization:

 

 

 

 

 

 

 

Trademarks and tradenames

 

(9,445

)

(9,090

)

(9,331

)

Favorable leases

 

(2,636

)

 

(1,883

)

Customer relationships

 

(19,120

)

(10,882

)

(16,468

)

 

 

 

 

 

 

 

 

Total accumulated amortization

 

(31,201

)

(19,972

)

(27,682

)

 

 

 

 

 

 

 

 

Total amortizable intangible assets, net

 

94,623

 

26,616

 

97,954

 

 

 

 

 

 

 

 

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

Trademarks and tradename

 

570,312

 

31,350

 

570,305

 

 

 

 

 

 

 

 

 

Total intangible assets, net

 

$

664,935

 

$

57,966

 

$

668,259

 

 

 

 

 

 

 

 

 

 

 

 

 

The pretax amortization expense associated with intangible assets subject to amortization totaled $3.4 million and $0.8 million for the three months ended May 2, 2015 and May 3, 2014, respectively.  Pretax amortization associated with intangible assets subject to amortization at May 2, 2015 is estimated to be $10.3 million for the remainder of fiscal year 2015, $13.7 million for each of the fiscal years 2016 and 2017, and $13.6 million for fiscal year 2018 and 2019.