GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Feb. 03, 2018

5. GOODWILL AND INTANGIBLE ASSETS

The gross carrying amounts and accumulated amortization of our intangible assets, including amounts acquired in the Lamrite acquisition (see Note 4), for the years ended February 3, 2018 and January 28, 2017 were as follows (in thousands):


	As of February 3, 2018
		Weighted
		Average
		Remaining
	Amortization	Amortization	Gross				Net
	Period	Period	Carrying		Accumulated		Carrying
	(in years)	(in years)	Amount		Amortization		Value
Definite-lived intangible assets:
Customer relationships	16-18	15.94	$	5,600	$	(1,278)	$	4,322
Proprietary product designs	7	5.00		3,400		(1,750)		1,650
Other intangible assets	2-23	10.62		4,229		(2,157)		2,072
				13,229		(5,185)		8,044
Indefinite-lived intangible assets:
Tradenames				13,725				13,725

Total intangible assets			$	26,954	$	(5,185)	$	21,769


	As of January 28, 2017
		Weighted
		Average
		Remaining
	Amortization	Amortization	Gross				Net
	Period	Period	Carrying		Accumulated		Carrying
	(in years)	(in years)	Amount		Amortization		Value
Definite-lived intangible assets:
Customer relationships	16-18	16.93	$	5,600	$	(637)	$	4,963
Proprietary product designs	7	6.00		3,400		(976)		2,424
Other intangible assets	2-23	9.77		4,229		(1,639)		2,590
				13,229		(3,252)		9,977
Indefinite-lived intangible assets:
Tradenames				13,725				13,725

Total intangible assets			$	26,954	$	(3,252)	$	23,702

In fiscal 2017 and fiscal 2016, we recognized amortization expense of $1.9 million and $2.4 million, respectively, related to definite-lived intangible assets. Amortization expense was immaterial in fiscal 2015. As of February 3, 2018, the amortization expense related to our definite-lived intangible assets for the next five years will be approximately $1.0 million to $2.0 million each year.

As of February 3, 2018, goodwill totaled $119.1 million, including $94.3 million related to Michaels-U.S. and $24.8 million related to the acquisition of Lamrite on February 2, 2016.

- 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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