Goodwill and Other Intangible Assets

12 Months Ended

Jan. 31, 2016

Goodwill and Other Intangible Assets [Abstract]

Note 8 — Goodwill and Other Intangible Assets

Goodwill and other intangible assets consist of the following:

	January 31,		February 1,
	2016		2015
	(In thousands)
Goodwill:
International Franchise segment	$	15,664	$	15,664
Domestic Franchise segment		7,832		7,832
Company Stores segment (Note 21)		2,594		2,594
Reacquired franchise rights associated with Company Stores segment, net of accumulated
amortization of $1.3 million at January 31, 2016 and $556,000 at February 1, 2015		4,895		3,980
	$	30,985	$	30,070

The goodwill and reacquired franchise rights associated with the Company Stores segment in the preceding table are net of accumulated impairment losses totaling $139.4 million and $1.9 million, respectively.

The changes in reacquired franchise rights are as follows:


	January 31,			February 1,
	2016			2015
		(In thousands)
Balance at beginning of year	$	3,980		$	601
Acquisition of stores and franchise rights from franchisees (Note 21)		1,702			3,853
Amortization expense		(747	)		(474	)
Impairment of reacquired franchise rights related to the Company Stores segment (Note 15)		(40	)		-
Balance at end of year	$	4,895		$	3,980

We have acquired the assets and operations and franchise rights to develop certain CPG channels of trade from certain of our franchisees as described in Note 21. The allocation of the purchase prices included amounts allocated to reacquired franchise rights, which are being amortized over the terms of the reacquired franchise agreements. Estimated amortization expense is expected to be approximately $1.0 million in fiscal 2017 through fiscal 2020 and $250,000 in fiscal 2021. The remaining amortization period for these assets is approximately 5 years.

- 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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