Goodwill and Other Intangible Assets

6 Months Ended

Aug. 04, 2018

Goodwill and Other Intangible Assets

13. 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 4, 2018 are as follows (in thousands):


			Corporate
	Retail		Apparel		Total
Balance at February 3, 2018	$	94,305		25,987	$	120,292
Goodwill of divested business (see Note 2)		(13,588)		—		(13,588)
Translation adjustment		(1,042)		(1,976)		(3,018)
Balance at August 4, 2018	$	79,675	$	24,011	$	103,686

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 August 4, 2018.

Intangible Assets

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


	August 4,		July 29,		February 3,
	2018		2017		2018
Amortizable intangible assets:
Carrying amount:
Trademarks, tradenames and franchise agreements	$	16,055	$	16,076	$	16,273
Favorable leases		12,876		13,475		13,229
Customer relationships		26,415		26,630		28,713
Total carrying amount		55,346		56,181		58,215
Accumulated amortization:
Trademarks, tradenames and franchise agreements		(10,634)		(10,302)		(10,558)
Favorable leases		(5,420)		(4,481)		(5,010)
Customer relationships		(17,652)		(15,534)		(17,992)
Total accumulated amortization		(33,706)		(30,317)		(33,560)
Total amortizable intangible assets, net		21,640		25,864		24,655
Indefinite-lived intangible assets:
Trademarks and tradename		144,241		144,249		144,332
Total intangible assets, net	$	165,881	$	170,113	$	168,987

Pre-tax amortization expense associated with intangible assets subject to amortization totaled $1.0 million and $2.0 million for the three and six months ended August 4, 2018. 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, respectively. Pre-tax amortization associated with intangible assets subject to amortization at August 4, 2018 is estimated to be $1.9 million for the remainder of fiscal 2018, $3.7 million for fiscal 2019, $3.6 million for fiscal 2020, $3.5 million for fiscal 2021 and $2.2 million for fiscal 2022.

- 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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