Intangible Assets and Goodwill

12 Months Ended

Apr. 29, 2017

14.

Intangible Assets and Goodwill


Amortizable intangible assets	Useful Life		As of April 29, 2017
Amortizable intangible assets	Useful Life		Gross Carrying Amount		Accumulated Amortization			Total
Technology		5-10	$	10,710	$	(9,997	)	$	713
Distribution contracts		10		8,325		(8,201	)		124
Other		3-10		6,458		(6,384	)		74

			$	25,493	$	(24,582	)	$	911


Unamortizable intangible assets
Trade name								$	293,400
Publishing contracts									15,894

								$	309,294

Total amortizable and unamortizable intangible assets as of April 29, 2017								$	310,205



Amortizable intangible assets	Useful Life		As of April 30, 2016
Amortizable intangible assets	Useful Life		Gross Carrying Amount		Accumulated Amortization			Total
Technology		5-10	$	10,710	$	(9,589	)	$	1,121
Distribution contracts		10		8,325		(7,905	)		420
Other		3-10		6,375		(6,306	)		69

			$	25,410	$	(23,800	)	$	1,610


Unamortizable intangible assets			Trade name		Publishing contracts			Total
Balance at May 2, 2015			$	293,400	$	19,734		$	313,134
Impairment				—		(3,840	)		(3,840	)

Balance at April 30, 2016			$	293,400	$	15,894		$	309,294

Total amortizable and unamortizable intangible assets as of April 30, 2016								$	310,904

All amortizable intangible assets are being amortized over their useful life on a straight-line basis.


Aggregate Amortization Expense
For the 52 weeks ended April 29, 2017	$	782
For the 52 weeks ended April 30, 2016	$	1,012
For the 52 weeks ended May 2, 2015	$	4,461

Estimated Amortization Expense
(12 months ending on or about April 30)
2018	$	587
2019	$	324

The Company tests unamortizable intangible assets by comparing the fair value and the carrying value of such assets. Impairment losses included in selling and administrative expenses related to unamortizable intangible assets totaled $0, $3,840 and $0 during fiscal 2017, fiscal 2016 and fiscal 2015, respectively. Changes in market conditions, among other factors, could have a material impact on these estimates.

During fiscal 2016, the Company impaired one of its publishing contracts due to a significant drop in business with that publisher, driven by lower title offerings, product quality and the loss of a distribution partner. As a result, the Company recorded an impairment charge of $3,840 in selling and administrative expenses during the 13 weeks ended January 30, 2016.

The changes in the carrying amount of goodwill by segment for fiscal 2017 and fiscal 2016 are as follows:


	B&N Retail Segment			NOOK Segment		Total Company
Balance as of May 2, 2015	$	215,197			—	$	215,197
Benefit of excess tax amortization ^(a)		(3,921	)		—		(3,921	)

Balance as of April 30, 2016	$	211,276			—	$	211,276
Benefit of excess tax amortization ^(a)		(3,895	)		—		(3,895	)

Balance as of April 29, 2017	$	207,381			—	$	207,381

(a)

The tax basis of goodwill arising from an acquisition during the 52 weeks ended January 29, 2005 exceeded the related basis for financial reporting purposes by approximately $96,576. In accordance with ASC 740-10-30, Accounting for Income Taxes, the Company is recognizing the tax benefits of amortizing such excess as a reduction of goodwill as it is realized on the Company’s income tax return.

- 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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