Goodwill and Other Intangible Assets

6 Months Ended

Aug. 03, 2013

Goodwill and Other Intangible Assets

9. Goodwill and Other Intangible Assets

Goodwill

Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the six months ended August 3, 2013 are as follows (in thousands):

	Retail			Corporate Apparel			Total
Balance at February 2, 2013	$	59,995		$	27,840		$	87,835
Impairment charge	(9,501		)	—			(9,501		)
Translation adjustment	(1,118		)	(706		)	(1,824		)
Balance at August 3, 2013	$	49,376		$	27,134		$	76,510

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 the second quarter of 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 goodwill impairment charge of $9.5 million.

Intangible Assets

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

	August 3, 2013			July 28, 2012			February 2, 2013

Amortizable intangible assets:
Carrying amount:
Trademarks, tradenames, and other intangibles	$	14,423		$	12,432		$	14,502
Customer relationships	31,244			32,138			32,098
Total carrying amount	45,667			44,570			46,600
Accumulated amortization:
Trademarks, tradenames, and other intangibles	(8,981		)	(8,379		)	(8,663		)
Customer relationships	(7,886		)	(5,356		)	(6,751		)
Total accumulated amortization	(16,867		)	(13,735		)	(15,414		)
Total amortizable intangible assets, net	28,800			30,835			31,186
Infinite-lived intangible assets:
Trademarks	1,222			1,258			1,256
Total intangible assets, net	$	30,022		$	32,093		$	32,442

The pretax amortization expense associated with intangible assets subject to amortization totaled approximately $0.8 million for the three months ended August 3, 2013 and July 28, 2012, respectively. The pretax amortization expense associated with intangible assets subject to amortization totaled approximately $1.6 million for the six months ended August 3, 2013 and July 28, 2012, respectively, and approximately $3.3 million for the year ended February 2, 2013. Pretax amortization associated with intangible assets subject to amortization at August 3, 2013 is estimated to be $1.6 million for the remainder of fiscal year 2013, $3.2 million for each of the fiscal years 2014, 2015 and 2016 and $3.1 million for fiscal year 2017.

- 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.

+ References+ Details