Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.5.0.2
Goodwill and Other Intangible Assets
6 Months Ended
Jul. 30, 2016
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

11.  Goodwill and Other Intangible Assets

 

Please refer to Note 3 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended January 30, 2016 for information on impairment charges recorded in fiscal 2015 related to goodwill and intangible assets for Jos. A. Bank.

 

Goodwill

 

Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the six months ended July 30, 2016 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

    

Retail

    

Apparel

    

Total

 

Balance at January 30, 2016

 

$

93,201

 

$

25,385

 

$

118,586

 

Translation adjustment

 

 

1,443

 

 

(1,722)

 

 

(279)

 

Balance at July 30, 2016

 

$

94,644

 

$

23,663

 

$

118,307

 

 

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 July 30, 2016.

 

Intangible Assets

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

    

July 30,

    

August 1,

 

January 30,

 

 

    

2016

    

2015

    

2016

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

Carrying amount:

 

 

 

 

 

 

 

 

 

 

Trademarks and tradenames

 

$

16,097

 

$

16,554

 

$

16,292

 

Favorable leases

 

 

14,381

 

 

24,400

 

 

14,675

 

Customer relationships

 

 

26,862

 

 

85,918

 

 

29,129

 

Total carrying amount

 

 

57,340

 

 

126,872

 

 

60,096

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Trademarks and tradenames

 

 

(9,886)

 

 

(9,577)

 

 

(9,728)

 

Favorable leases

 

 

(3,529)

 

 

(3,575)

 

 

(2,739)

 

Customer relationships

 

 

(13,432)

 

 

(22,096)

 

 

(13,459)

 

Total accumulated amortization

 

 

(26,847)

 

 

(35,248)

 

 

(25,926)

 

Total amortizable intangible assets, net

 

 

30,493

 

 

91,624

 

 

34,170

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

Trademarks and tradename, net

 

 

144,259

 

 

570,349

 

 

144,340

 

Total intangible assets, net

 

$

174,752

 

$

661,973

 

$

178,510

 

 

Pre-tax amortization expense associated with intangible assets subject to amortization totaled $1.2 million and $2.5 million for the three and six months ended July 30, 2016. Pre-tax 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.  Pre-tax amortization associated with intangible assets subject to amortization at July 30, 2016 is estimated to be $2.4 million for the remainder of fiscal 2016, $4.3 million for fiscal 2017, $4.0 million for fiscal 2018,  $3.8 million for fiscal 2019 and $3.7 million for fiscal 2020.