Intangible Assets

Intangible assets in the accompanying consolidated balance sheets consisted of the following:



	Weighted Average Life (Years)	February 1, 2014					February 2, 2013
	Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
NBCU trademark license - second renewal	—	$	6,830,000	$	(6,830,000	)	$	6,830,000	$	(2,833,000	)

Indefinite-lived intangible assets:
FCC broadcast license		$	12,000,000				$	12,000,000

The Company annually reviews its FCC television broadcast license for impairment in the fourth quarter, or more frequently if an impairment indicator is present. As of February 1, 2014 the Company had an intangible FCC broadcasting license with a carrying value and fair value of $12,000,000 and $13,100,000, respectively. As of February 2, 2013 the Company had an intangible FCC broadcasting license with a carrying value and fair value of $12,000,000. The Company estimates the fair value of its FCC television broadcast license primarily by using income-based discounted cash flow models with the assistance of an independent outside fair value consultant. The Company also considers comparable asset market and sales data for recent comparable market transactions for standalone television broadcasting stations to assist in determining fair value.

During the Company's annual fiscal 2012 fair value assessment and utilizing independent market data, assumptions in the Company's discounted cash flow models reflected declines in independent television station industry revenues and operating margins due to television station rating declines and reduced advertising purchases on local broadcast television stations. As a result, cash flows from our discounted cash flow model did not support recovery of the asset's carrying value and the Company recorded an $11.1 million non-cash impairment charge in the fourth quarter of fiscal 2012. The discounted cash flow models utilize a range of assumptions including revenues, operating profit margin, projected capital expenditures and an unobservable discount rate of 10%-10.5%. The Company concluded that the inputs used in its intangible FCC broadcasting license valuation at February 2, 2013 are Level 3 inputs related to this valuation.

While the Company believes that its estimates and assumptions regarding the valuation of the license are reasonable, different assumptions or future events could materially affect its valuation. In addition, due to the illiquid nature of this asset, the Company's valuation for this license could be materially different if it were to decide to sell it in the short term which, upon revaluation, could result in a future impairment of this asset.

On January 31, 2014, ShopNBC and ShopNBC.com officially transitioned to its new brand, ShopHQ and ShopHQ.com to reinforce its positioning as the shopping headquarters for customers. On May 11, 2012, the Company amended its trademark license agreement for the use of the ShopNBC brand name with NBCU, extending the term of the license agreement through January 2014. As consideration for the amendment, the Company paid NBCU $4,000,000 upon execution and paid an additional $2,830,000 on May 15, 2013. On May 16, 2011, the Company issued 689,655 shares of the Company's common stock as consideration for a one-year renewal of the same trademark license agreement. Shares issued were valued at $6.04 per share, representing the fair market value of the Company's stock on the date of issuance.

Amortization expense in fiscal 2013, fiscal 2012 and fiscal 2011 was $3,997,000, $4,048,000 and $3,879,000, respectively. As of February 1, 2014, the Company's trademark license asset was fully amortized.