GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Feb. 01, 2014

12. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the years ended February 1, 2014 and February 2, 2013 are as follows (in thousands):

	Retail			Corporate Apparel			Total

Balance, January 28, 2012	$	59,900		$	27,882		$	87,782
Translation adjustment		95			(42	)		53


Balance, February 2, 2013	$	59,995		$	27,840		$	87,835
Goodwill of acquired business		49,338			—			49,338
Impairment charge		(9,501	)		—			(9,501	)
Translation adjustment		(2,913	)		1,244			(1,669	)


Balance, February 1, 2014	$	96,919		$	29,084		$	126,003

The goodwill of acquired business, during fiscal 2013, resulted from our acquisition of JA Holding. Refer to Note 2 for additional discussion of the JA Holding acquisition.

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. During fiscal 2013, based on estimates provided to us by market participants during our review of strategic alternatives for the K&G brand, we concluded that the carrying value of the K&G brand exceeded its fair value. Based on further analysis, it was determined that the entire carrying value of K&G's goodwill was impaired, resulting in a non-cash pre-tax goodwill impairment charge of $9.5 million. As of February 1, 2014, accumulated goodwill impairment totaled $9.5 million.

Intangible Assets

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

	February 1, 2014			February 2, 2013

Amortizable intangible assets:
Carrying amount:
Trademarks, tradenames and other intangibles	$	12,012		$	14,502
Customer relationships		33,602			32,098


Total carrying amount		45,614			46,600


Accumulated amortization:
Trademarks, tradenames and other intangibles		(9,007	)		(8,663	)
Customer relationships		(9,895	)		(6,751	)


Total accumulated amortization		(18,902	)		(15,414	)


Total amortizable intangible assets, net		26,712			31,186


Infinite-lived intangible assets:
Trademarks and tradename		31,315			1,256


Total intangible assets, net	$	58,027		$	32,442

The increase in indefinite-lived intangible assets at February 1, 2014 relates to the Joseph Abboud tradename acquired in our acquisition of JA Holding. Refer to Note 2 for additional discussion of the JA Holding acquisition.

As a result of our acquisition of JA Holding, management determined that one of its existing tradenames was impaired. As the tradename would not contribute to future cash flows, we concluded its fair value was zero. Therefore, we recorded a $1.8 million retail segment impairment charge which is included in asset impairment charges in the consolidated statement of earnings.

The pre-tax amortization expense associated with intangible assets subject to amortization totaled approximately $3.8 million, $3.3 million and $3.4 million for fiscal 2013, 2012 and 2011, respectively. Pre-tax amortization expense associated with intangible assets subject to amortization at February 1, 2014 is estimated to be approximately $3.0 million for fiscal year 2014, $2.9 million for each of the fiscal years 2015, 2016, and 2017 and $2.8 million for fiscal year 2018.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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