NOTE 5— GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill by reporting unit is as follows (amounts in millions):


	As of February 3, 2019						As of January 28, 2018
	Gross		Accumulated		Net		Gross		Accumulated		Net
	Goodwill		Impairments		Goodwill		Goodwill		Impairments		Goodwill
Facilities Maintenance	$	1,603	$	—	$	1,603	$	1,603	$	—	$	1,603
Construction & Industrial-White Cap		366		(74)		292		183		(74)		109
Home Improvement Solutions		125		(30)		95		125		(30)		95
Total goodwill	$	2,094	$	(104)	$	1,990	$	1,911	$	(104)	$	1,807

Goodwill represents the excess of purchase price over fair value of net assets acquired. HD Supply does not amortize goodwill, but does assess the recoverability of goodwill on an annual basis, in the fourth quarter of each fiscal year. If an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value, an interim impairment test would be performed between annual tests.

HD Supply performed the annual goodwill impairment testing during the fourth quarter of fiscal 2018 (as of October 28, 2018). There was no indication of impairment in any of the Company’s reporting units in the fiscal 2018 annual test or in the fiscal 2017 and fiscal 2016 annual tests. The Company’s analysis was based, in part, on HD Supply’s expectation of future market conditions for each of the reporting units, as well as discount rates that would be used by market participants in an arms-length transaction. Future events could cause the Company to conclude that market conditions have declined to the extent that the Company’s goodwill could be impaired.

During fiscal 2018, the Company recorded $183 million in goodwill as a result of the A.H. Harris acquisition.

Intangible Assets

HD Supply’s intangible assets as of February 3, 2019 and January 28, 2018 consisted of the following (amounts in millions):


	As of February 3, 2019						As of January 28, 2018
	Gross		Accumulated		Net		Gross		Accumulated		Net
	Intangible		Amortization		Intangible		Intangible		Amortization		Intangible
Customer relationships	$	159	$	(38)	$	121	$	49	$	(25)	$	24
Trade names		151		(81)		70		139		(72)		67
Total	$	310	$	(119)	$	191	$	188	$	(97)	$	91

During fiscal 2018 the Company recorded $123 million of intangible assets, comprised of $110 million in customer relationships and $13 million of trade names, as a result of the A.H. Harris acquisition. The customer relationships and trade names will be amortized over 12 years and 5 years, respectively.

Amortization expense for continuing operations related to intangible assets was $22 million, $12 million, and $12 million in fiscal 2018, fiscal 2017, and fiscal 2016, respectively. Estimated future amortization expense for intangible assets recorded as of February 3, 2019 is $23 million, $23 million, $23 million, $23 million, and $18 million for fiscal years 2019 through 2023, respectively.