Goodwill and Other Intangible Assets

6 Months Ended

Aug. 02, 2014

Goodwill and Other Intangible Assets

11. 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 2, 2014 are as follows (in thousands):

	Retail		Corporate Apparel		Total
Balance at February 1, 2014	$	96,919	$	29,084	$	126,003
Goodwill of acquired businesses	747,828		—		747,828
Translation adjustment	483		641		1,124
Balance at August 2, 2014	$	845,230	$	29,725	$	874,955

The goodwill of acquired businesses resulted primarily from our acquisition of Jos. A. Bank. As indicated in Note 2, the preliminary estimates of the fair value of the identifiable assets acquired and liabilities assumed for the Jos. A. Bank acquisition, including goodwill, are not yet final and are subject to revisions until management’s appraisals and estimates are finalized, which may result in adjustments to the preliminary values as reported for the retail reportable segment at August 2, 2014.

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. Such events or circumstances could include, but are not limited to, new significant negative industry or economic trends, unanticipated changes in the competitive environment, decisions to significantly modify or dispose of operations and a significant sustained decline in the market price of our stock. No additional impairment evaluation was considered necessary during the second quarter of fiscal 2014.

Intangible Assets

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

	August 2, 2014			August 3, 2013			February 1, 2014

Amortizable intangible assets:
Carrying amount:
Trademarks, tradenames, and other intangibles	$	41,185		$	14,423		$	12,012
Customer relationships	87,376			31,244			33,602
Total carrying amount	128,561			45,667			45,614
Accumulated amortization:
Trademarks, tradenames, and other intangibles	(9,557		)	(8,981		)	(9,007		)
Customer relationships	(12,588		)	(7,886		)	(9,895		)
Total accumulated amortization	(22,145		)	(16,867		)	(18,902		)
Total amortizable intangible assets, net	106,416			28,800			26,712
Indefinite-lived intangible assets:
Trademarks and tradenames	570,445			1,222			31,315
Total intangible assets, net	$	676,861		$	30,022		$	58,027

The pretax amortization expense associated with intangible assets subject to amortization totaled $2.2 million and $0.8 million for the three months ended August 2, 2014 and August 3, 2013, respectively. The pretax amortization expense associated with intangible assets subject to amortization totaled $3.0 million and $1.6 million for the six months ended August 2, 2014 and August 3, 2013, respectively. Pretax amortization associated with intangible assets subject to amortization at August 2, 2014 is estimated to be $7.0 million for the remainder of fiscal year 2014, $13.9 million for each of the fiscal years 2015, 2016 and 2017 and $13.8 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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