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. 01, 2015
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

 

11.  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 1, 2015 are as follows (in thousands):

 

 

 

Retail

 

Corporate
Apparel

 

Total

 

Balance at January 31, 2015

 

$

861,180

 

$

26,756

 

$

887,936

 

Adjustments to preliminary purchase price allocation of acquired businesses

 

3,062

 

 

3,062

 

Translation adjustment

 

(617

)

935

 

318

 

 

 

 

 

 

 

 

 

Balance at August 1, 2015

 

$

863,625

 

$

27,691

 

$

891,316

 

 

 

 

 

 

 

 

 

 

 

 

 

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 six months of fiscal 2015.

 

Intangible Assets

 

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

 

 

 

August 1,
2015

 

August 2,
2014

 

January 31,
2015

 

 

 

 

 

 

 

 

 

Amortizable intangible assets:

 

 

 

 

 

 

 

Carrying amount:

 

 

 

 

 

 

 

Trademarks and tradenames

 

$

16,554

 

$

16,785

 

$

16,448

 

Favorable leases

 

24,400

 

24,400

 

24,400

 

Customer relationships

 

85,918

 

87,376

 

84,788

 

 Total carrying amount

 

126,872

 

128,561

 

125,636

 

Accumulated amortization:

 

 

 

 

 

 

 

Trademarks and tradenames

 

(9,577

)

(9,180

)

(9,331

)

Favorable leases

 

(3,575

)

(377

)

(1,883

)

Customer relationships

 

(22,096

)

(12,588

)

(16,468

)

 

 

 

 

 

 

 

 

 Total accumulated amortization

 

(35,248

)

(22,145

)

(27,682

)

 

 

 

 

 

 

 

 

 Total amortizable intangible assets, net

 

91,624

 

106,416

 

97,954

 

 

 

 

 

 

 

 

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

  Trademarks and tradename

 

570,349

 

570,445

 

570,305

 

 

 

 

 

 

 

 

 

 Total intangible assets, net

 

$

661,973

 

$

676,861

 

$

668,259

 

 

 

 

 

 

 

 

 

 

 

 

 

The pretax amortization expense associated with intangible assets subject to amortization totaled $3.6 million and $7.1 million for the three and six months ended August 1, 2015, respectively.  The pretax amortization expense associated with intangible assets subject to amortization totaled $2.2 million and $3.0 million for the three and six months ended August 2, 2014, respectively.  Pretax amortization associated with intangible assets subject to amortization at August 1, 2015 is estimated to be $6.8 million for the remainder of fiscal year 2015, $13.9 million for fiscal year 2016, $13.3 million for fiscal year 2017, $12.9 million for fiscal year 2018 and $12.7 million for fiscal year 2019.