Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.8.0.1
Goodwill and Other Intangible Assets
9 Months Ended
Oct. 28, 2017
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

12.  Goodwill and Other Intangible Assets

 

Goodwill

 

Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the nine months ended October 28, 2017 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

    

Retail

    

Apparel

    

Total

 

Balance at January 28, 2017

 

$

94,511

 

$

22,515

 

$

117,026

 

Goodwill of acquired business

 

 

 —

 

 

695

 

 

695

 

    Translation adjustment

 

 

433

 

 

971

 

 

1,404

 

Balance at October 28, 2017

 

$

94,944

 

$

24,181

 

$

119,125

 

 

The goodwill of acquired business resulted from an immaterial acquisition by our United Kingdom ("UK") based operations. 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 nine months ended October 28, 2017.

 

Intangible Assets 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

    

October 28,

    

October 29,

 

January 28,

 

 

    

2017

    

2016

    

2017

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

Carrying amount:

 

 

 

 

 

 

 

 

 

 

Trademarks, tradenames and franchise agreements

 

$

16,074

 

$

15,897

 

$

15,966

 

Favorable leases

 

 

13,475

 

 

14,381

 

 

13,826

 

Customer relationships

 

 

26,612

 

 

24,750

 

 

25,483

 

Total carrying amount

 

 

56,161

 

 

55,028

 

 

55,275

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Trademarks, tradenames and franchise agreements

 

 

(10,404)

 

 

(9,930)

 

 

(10,055)

 

Favorable leases

 

 

(4,856)

 

 

(4,045)

 

 

(3,961)

 

Customer relationships

 

 

(16,078)

 

 

(12,891)

 

 

(13,804)

 

Total accumulated amortization

 

 

(31,338)

 

 

(26,866)

 

 

(27,820)

 

Total amortizable intangible assets, net

 

 

24,823

 

 

28,162

 

 

27,455

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

Trademarks and tradename

 

 

144,249

 

 

144,175

 

 

144,204

 

Total intangible assets, net

 

$

169,072

 

$

172,337

 

$

171,659

 

 

Pre-tax amortization expense associated with intangible assets subject to amortization totaled $1.0 million and $3.1 million for the three and nine months ended October 28, 2017.  Pre-tax amortization expense associated with intangible assets subject to amortization totaled $1.2 million and $3.7 million for the three and nine months ended and October 29, 2016.  Pre-tax amortization associated with intangible assets subject to amortization at October 28, 2017 is estimated to be $1.1 million for the remainder of fiscal 2017, $3.8 million for fiscal 2018, $3.6 million for fiscal 2019, $3.5 million for fiscal 2020 and $3.4 million for fiscal 2021.