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Goodwill and Other Intangible Assets
9 Months Ended
Nov. 30, 2011
Goodwill and Other Intangible Assets [Abstract]  
Goodwill and Other Intangible Assets

4. Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of net assets of acquired businesses and is not amortized. Goodwill and indefinite-lived intangibles are evaluated for impairment on an annual basis, or more frequently if impairment indicators arise, using a fair-value-based test that compares the fair value of the asset to its carrying value. Fair values of reporting units are typically calculated using a factor of expected earnings before interest, taxes, depreciation, and amortization. The Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets in assessing the recoverability of its goodwill and other intangibles. If these estimates or the related assumptions change, the Company may be required to record impairment charges for these assets in the future.

 

The cost of intangible assets is based on fair values at the date of acquisition. Intangible assets with determinable lives are amortized on a straight-line basis over their estimated useful life (between 1 and 10 years). Trademarks with indefinite lives and a net book value of $58.5 million at November 30, 2011 are evaluated for impairment on an annual basis, or more frequently if impairment indicators arise. The Company assesses the recoverability of its definite-lived intangible assets primarily based on its current and anticipated future undiscounted cash flows.

The carrying amount and accumulated amortization of the Company’s intangible assets at each balance sheet date are as follows (in thousands):

 

      $000,000       $000,000       $000,000  
    Gross              
    Carrying     Accumulated        

As of November 30, 2011

  Amount     Amortization     Net  

Amortized intangible assets (in thousands)

                       

Tradenames

  $ 1,234     $ 1,106     $ 128  

Customer lists

    29,957       14,104       15,853  

Noncompete

    500       499       1  
   

 

 

   

 

 

   

 

 

 
    $ 31,691     $ 15,709     $ 15,982  
   

 

 

   

 

 

   

 

 

 
       

As of February 28, 2011

                 

Amortized intangible assets (in thousands)

                       

Tradenames

  $ 1,234     $ 1,007     $ 227  

Customer lists

    29,957       12,410       17,547  

Noncompete

    500       495       5  
   

 

 

   

 

 

   

 

 

 
    $ 31,691     $ 13,912     $ 17,779  
   

 

 

   

 

 

   

 

 

 

 

      $000,000       $000,000  
    November 30,     February 28,  
    2011     2011  

Non-amortizing intangible assets (in thousands)

               

Trademarks

  $ 58,538     $ 58,538  
   

 

 

   

 

 

 

Aggregate amortization expense for the nine months ended November 30, 2011 and 2010 was $1.8 million.

The Company’s estimated amortization expense for the current and next five fiscal years is as follows (in thousands):

 

         

2012

  $ 2,396  

2013

    2,352  

2014

    2,259  

2015

    2,141  

2016

    2,083  

2017

    2,083  

There have been no changes to the amount of the Company’s goodwill during the reporting periods covered. The balance of goodwill was $117,341 ($42,792 – Print Segment and $74,549 – Apparel Segment) as of November 30, 2011 and February 28, 2011.