Goodwill and Other Intangible Assets

6 Months Ended

Jul. 29, 2017

Goodwill and Other Intangible Assets

12. 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 July 29, 2017 are as follows (in thousands):


			Corporate
	Retail		Apparel		Total
Balance at January 28, 2017	$	94,511	$	22,515	$	117,026
Goodwill of acquired business		—		695		695
Translation adjustment		1,173		986		2,159
Balance at July 29, 2017	$	95,684	$	24,196	$	119,880

The goodwill of acquired business resulted from an immaterial acquisition by our United Kingdom ("UK") based operations. Goodwill is evaluated for impairment at least annually. 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 impairment evaluation was considered necessary during the first six months ended July 29, 2017.

Intangible Assets

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


	July 29,		July 30,		January 28,
	2017		2016		2017
Amortizable intangible assets:
Carrying amount:
Trademarks, tradenames and franchise agreements	$	16,076	$	16,097	$	15,966
Favorable leases		13,475		14,381		13,826
Customer relationships		26,630		26,862		25,483
Total carrying amount		56,181		57,340		55,275
Accumulated amortization:
Trademarks, tradenames and franchise agreements		(10,302)		(9,886)		(10,055)
Favorable leases		(4,481)		(3,529)		(3,961)
Customer relationships		(15,534)		(13,432)		(13,804)
Total accumulated amortization		(30,317)		(26,847)		(27,820)
Total amortizable intangible assets, net		25,864		30,493		27,455
Indefinite-lived intangible assets:
Trademarks and tradename		144,249		144,259		144,204
Total intangible assets, net	$	170,113	$	174,752	$	171,659

Pre-tax amortization expense associated with intangible assets subject to amortization totaled $1.0 million and $2.1 million for the three and six months ended July 29, 2017. Pre-tax amortization expense associated with intangible assets subject to amortization totaled $1.2 million and $2.5 million for the three and six months ended and July 30, 2016. Pre-tax amortization associated with intangible assets subject to amortization at July 29, 2017 is estimated to be $2.1 million for the remainder of fiscal 2017, $3.8 million for fiscal 2018, $3.6 million for fiscal 2019, $3.4 million for fiscal 2020 and $3.3 million for fiscal 2021.

- 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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