Quarterly report pursuant to sections 13 or 15(d)

Goodwill and Other Intangible Assets

v2.4.0.8
Goodwill and Other Intangible Assets
3 Months Ended
May 03, 2014
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

9.  Goodwill and Other Intangible Assets

 

Goodwill

 

Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the quarter ended May 3, 2014 are as follows (in thousands):

 

 

 

Retail

 

Corporate
Apparel

 

Total

 

Balance at February 1, 2014

 

$

96,919

 

$

29,084

 

$

126,003

 

Translation adjustment

 

359

 

736

 

1,095

 

Balance at May 3, 2014

 

$

97,278

 

$

29,820

 

$

127,098

 

 

Goodwill is evaluated for impairment annually as of our fiscal year end.  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 2014.

 

Intangible Assets

 

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

 

 

 

May 3,
2014

 

May 4,
2013

 

February 1,
2014

 

 

 

 

 

 

 

 

 

Amortizable intangible assets:

 

 

 

 

 

 

 

Carrying amount:

 

 

 

 

 

 

 

Trademarks, tradenames, and other intangibles

 

$

12,096

 

$

14,477

 

$

12,012

 

Customer relationships

 

34,492

 

31,818

 

33,602

 

Total carrying amount

 

46,588

 

46,295

 

45,614

 

Accumulated amortization:

 

 

 

 

 

 

 

Trademarks, tradenames, and other intangibles

 

(9,090

)

(8,821

)

(9,007

)

Customer relationships

 

(10,882

)

(7,362

)

(9,895

)

Total accumulated amortization

 

(19,972

)

(16,183

)

(18,902

)

Total amortizable intangible assets, net

 

26,616

 

30,112

 

26,712

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

Trademarks and tradename

 

31,350

 

1,245

 

31,315

 

Total intangible assets, net

 

$

57,966

 

$

31,357

 

$

58,027

 

 

The increase in indefinite-lived intangible assets at February 1, 2014 relates to the Joseph Abboud tradename acquired in our acquisition of JA Holding.

 

The pretax amortization expense associated with intangible assets subject to amortization totaled approximately $0.8 million for the quarters ended May 3, 2014 and May 4, 2013, respectively, and approximately $3.8 million for the year ended February 1, 2014.  Pretax amortization associated with intangible assets subject to amortization at May 3, 2014 is estimated to be $2.3 million for the remainder of fiscal year 2014, $3.1 million for each of the fiscal years 2015, 2016 and 2017 and $3.0 million for fiscal year 2018.