Intangible Assets and Goodwill

3 Months Ended

Apr. 30, 2011

Intangible Assets and Goodwill [Abstract]

Note 2 — Intangible Assets and Goodwill

The following is a summary of the Company’s intangible assets:


	April 30,			May 1,			January 29,
(dollars in millions)	2011			2010			2011

Intangible assets subject to amortization:

Favorable lease rights:
Gross carrying amount	$	24.8		$	30.4		$	24.8
Less: accumulated amortization		(20.2	)		(23.3	)		(19.8	)

Carrying amount, end of period		4.6			7.1			5.0


Customer relationships:
Gross carrying amount		74.2			76.3			74.2
Less: accumulated amortization		(47.3	)		(39.3	)		(45.2	)

Carrying amount, end of period		26.9			37.0			29.0


Trademarks and other intangible assets:
Gross carrying amount		38.5			38.9			38.5
Less: accumulated amortization		(10.5	)		(7.3	)		(9.6	)

Carrying amount, end of period		28.0			31.6			28.9


Carrying amount of intangible assets subject to amortization		59.5			75.7			62.9
Indefinite-lived trademarks		365.5			365.5			365.5

Total intangible assets	$	425.0		$	441.2		$	428.4

Amortization expense on intangible assets is as follows:


	13 Weeks Ended
	April 30,		May 1,
(dollars in millions)	2011		2010

Amortization expense on intangible assets	$	3.4	$	4.7

The Company expects amortization expense for the remainder of 2011 and the following four years to be as follows (in millions):


Year		Amount
Remainder of 2011		$10.1
2012		11.1
2013		9.5
2014		8.1
2015		5.9

The following presents the carrying amount of goodwill, by reporting segment:


	April 30,		May 1,		January 29,
(dollars in millions)	2011		2010		2011

PLG Wholesale	$	239.6	$	239.6	$	239.6
Payless Domestic		40.2		40.2		40.2

Total	$	279.8	$	279.8	$	279.8

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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