Goodwill and Other Intangible Assets

12 Months Ended

Feb. 03, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following summarizes the Company's goodwill and other intangible assets:

	February 3, 2024		January 28, 2023
	(millions)
Non-amortizing intangible assets
Goodwill	$	9,290	$	9,290
Accumulated impairment losses	(8,462)		(8,462)
	828		828
Tradenames	376		403
	$	1,204	$	1,231
Amortizing intangible assets
Favorable leases and other contractual assets	$	5	$	5
Tradenames	70		43
	75		48
Accumulated amortization
Favorable leases and other contractual assets	(1)		(1)
Tradenames	(20)		(18)
	(21)		(19)
	$	54	$	29
Capitalized software
Gross balance	$	1,203	$	1,095
Accumulated amortization	(447)		(429)
	$	757	$	666

For the Company's annual impairment assessment as of the end of fiscal May 2023 and 2022, the Company elected to perform a qualitative impairment test on its goodwill and intangible assets with indefinite lives and concluded that it is more likely than not that the fair values exceeded the carrying values and goodwill and intangible assets with indefinite lives were not impaired.

During the third quarter of fiscal 2023, the Company observed a general decline in the market valuation of the Company’s common shares and performed an interim qualitative impairment test on its reporting units. As a result of this test, the Company concluded that it is more likely than not that the fair values of its reporting units exceeded the carrying values and goodwill is not impaired.

At the end of 2022, the Company was in the early stages of reimagining its private brand portfolio and as such the intended future use of certain private brands has evolved. At the end of fiscal year 2023, the Company determined that its Karen Scott tradename had a finite life and began amortizing over the expected useful life. The Company will continue to monitor the evolution of its private brands and the related impact to its intangible assets.

Finite lived tradenames are being amortized over their respective useful lives ranging from 10 years to 20 years. Favorable lease intangible assets and other contractual assets are being amortized over their respective lease or contract terms.

Other contractual assets and tradenames amortization expense amounted to $2 million for each of 2023, 2022, and 2021. Capitalized software amortization expense amounted to $269 million for 2023, $235 million for 2022 and $238 million for 2021.

Future estimated amortization expense for assets, excluding in-process capitalized software of $57 million not yet placed in service as of February 3, 2024, is shown below:

	Amortizing intangible assets		Capitalized Software
	(millions)
Fiscal year
2024	$	5	$	271
2025	5		230
2026	5		150
2027	5		48
2028	5		1