Business Combinations

12 Months Ended

Mar. 26, 2022

Business Combinations

Business Combinations

3. Business Combinations

G.&L. Clothing, Inc.

On August 26, 2019, Boot Barn, Inc. completed the acquisition of G.&L. Clothing, Inc. (“G.&L. Clothing”), an individually-owned retailer operating one store in Des Moines, Iowa. As part of the transaction, Boot Barn, Inc. purchased the inventory, entered into new leases with the store’s landlord and offered employment to the G.&L. Clothing team. The primary reason for the acquisition of G.&L. Clothing was to further expand the Company’s retail operations in Iowa. The cash consideration paid for the acquisition was $3.7 million.

In allocating the purchase price, the Company recorded all assets acquired and liabilities assumed at fair value. The total fair value of consideration transferred for the acquisition was allocated to the net tangible and intangible assets based upon their estimated fair values as of the date of the acquisition of G.&L. Clothing. The excess of the purchase price over the net tangible and intangible assets was recorded as goodwill. The goodwill and intangible assets are deductible for income tax purposes.

The Company determined the estimated fair values using Level 3 inputs after review and consideration of relevant information, including quoted market prices and estimates made by management. The inventory was valued using the comparative sales method. Property and equipment, net, customer list and merchandise credits and other

current liabilities were valued under either the cost or income approach. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date based on the purchase price allocation:

(in thousands)	At August 26, 2019
Assets acquired:
Inventory	$	2,361
Property & equipment, net		64
Customer list		345
Right-of-use asset, net		1,946
Goodwill		1,644
Total assets acquired	$	6,360
Liabilities assumed:
Merchandise credits and other current liabilities	$	169
Short-term lease liability		129
Long-term lease liability		2,374
Total liabilities assumed		2,672
Net assets acquired	$	3,688

The change in the carrying amount of goodwill is as follows (in thousands):

Balance as of March 28, 2020	$	197,502
Activity		—
Balance as of March 27, 2021		197,502
Activity		—
Balance as of March 26, 2022	$	197,502