Goodwill and Intangible Assets

12 Months Ended

Jan. 29, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of the Company’s goodwill included in its Balance Sheets is as follows:

	January 29, 2023		January 30, 2022
Gross Goodwill	$	1,535	$	1,515
Accumulated Impairment	—		—
Net Goodwill	$	1,535	$	1,515

The changes in the carrying amount of goodwill are as follows:

	Fiscal Years Ended
	January 29, 2023		January 30, 2022
Beginning Balance	$	1,515	$	1,453
Goodwill acquired during the year	20		62
Ending balance	$	1,535	$	1,515

Goodwill acquired during fiscal 2022 was related to the Trumbull Acquisition, Earthsavers Acquisition and Other 2022 Acquisitions and goodwill acquired during fiscal 2021 related to the Pacific Pipe Acquisition, L&M Acquisiton, WWSC Acquisition and Other 2021 Acquisitions, as further discussed in Note 4.

During the fiscal 2022 annual goodwill impairment assessment, the Company performed a qualitative assessment. The qualitative assessment included evaluating economic, industry, regulatory and company specific factors that could impact the reporting unit fair value. These factors included historical and projected financial metrics (including net sales, operating cash flow and discount rate trends), public equity market trends and evaluation of the markets the Company serves. Based on the assessment it was determined that it is not “more likely than not” that the fair value of its reporting unit is less than the carrying value of its reporting unit in fiscal 2022. Therefore, no further assessment was necessary.

During the fiscal 2021 and fiscal 2020 annual assessments, the Company tested goodwill for impairment by performing a quantitative assessment that compared the fair value of the reporting unit with its carrying value. There was no goodwill impairment during fiscal 2022, fiscal 2021 or fiscal 2020.

The Company’s analyses were based in part on the expectation of future market conditions, future net sales and operating cash flow growth and discount rates that would be used by market participants in an arms-length transaction. Should actual performance or expectations of long-term assumptions be lower than presently expected, the Company’s goodwill could be impaired.

Intangible Assets

The Company’s intangible assets included in its Balance Sheets consist of the following:

	January 29, 2023						January 30, 2022
	Gross Intangible		Accumulated Amortization		Net Intangible		Gross Intangible		Accumulated Amortization		Net Intangible
Customer relationships	$	1,390	$	597	$	793	$	1,347	$	478	$	869
Other intangible assets	5		3		2		4		2		2
Total	$	1,395	$	600	$	795	$	1,351	$	480	$	871

Amortization expense related to intangible assets was as follows:

	Fiscal Years Ended
	January 29, 2023		January 30, 2022		January 31, 2021
Amortization expense	$	120	$	120	$	118

There were no intangible asset impairments during fiscal 2022, fiscal 2021 or fiscal 2020.

The estimated aggregate amortization expense on intangible assets owned by the Company as of January 29, 2023 was expected to be as follows:

Fiscal 2023	$	114
Fiscal 2024	106
Fiscal 2025	98
Fiscal 2026	90
Fiscal 2027	84