Goodwill and Other Intangible Assets

6 Months Ended

Aug. 03, 2019

GOODWILL AND INTANGIBLE ASSETS

Goodwill and Other Intangible Assets

13.  Goodwill and Other Intangible Assets

Goodwill

Changes in the net carrying amount of goodwill, all of which relates to our retail segment, for the six months ended August 3, 2019 are as follows (in thousands):

	Total
Balance at February 2, 2019	$	79,491
Translation adjustment		(208)
Balance at August 3, 2019	$	79,283

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 triggering event occurred during the first six months ended August 3, 2019 that required an interim goodwill impairment test.

Intangible Assets

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

	August 3,		August 4,		February 2,
	2019		2018		2019
Amortizable intangible assets:
Carrying amount:
Trademarks, tradenames and franchise agreements	$	15,887	$	16,055	$	16,067
Favorable leases		—		12,876		11,844
Customer relationships		24,645		26,415		26,553
Total carrying amount		40,532		55,346		54,464
Accumulated amortization:
Trademarks, tradenames and franchise agreements		(10,871)		(10,634)		(10,796)
Favorable leases		—		(5,420)		(5,162)
Customer relationships		(18,523)		(17,652)		(18,851)
Total accumulated amortization		(29,394)		(33,706)		(34,809)
Total amortizable intangible assets, net		11,138		21,640		19,655
Indefinite-lived intangible assets:
Trademarks and tradename		144,171		144,241		144,246
Total intangible assets, net	$	155,309	$	165,881	$	163,901

The elimination of favorable leases is due to the adoption of ASC 842, effective February 3, 2019.  Please see Note 12 for additional information.

Amortization expense associated with intangible assets subject to amortization totaled $0.6 million and $1.2 million for the three and six months ended August 3, 2019. 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. Amortization associated with intangible assets subject to amortization at August 3, 2019 is estimated to be $1.2 million for the remainder of fiscal 2019, $2.5 million for fiscal 2020, $2.5 million for fiscal 2021, $1.4 million for fiscal 2022 and $0.3 million for fiscal 2023.