Intangible Assets

12 Months Ended

Jan. 28, 2012

INTANGIBLES [Abstract]

Intangible Assets Disclosure [Text Block]

INTANGIBLE ASSETS

The following table provides information related to intangible assets (in thousands), which are included in other assets, net on the accompanying consolidated balance sheets as of January 28, 2012 and January 29, 2011:

		January 28, 2012						January 29, 2011
	Useful Life (years)	Original Cost		Accumulated Amortization		Net Book Value		Original Cost		Accumulated Amortization		Net Book Value
Tradenames	7-20	$	9,408	$	6,381	$	3,027	$	9,408	$	6,000	$	3,408
Favorable leases	1-7	886		359		527		886		232		654
Tradename (non-amortizing)	N/A	8,500		—		8,500		8,500		—		8,500
		$	18,794	$	6,740	$	12,054	$	18,794	$	6,232	$	12,562

In accordance with accounting standards, intangible assets with indefinite lives are not amortized, but rather tested for impairment at least annually. The fair values are estimated and compared to their carrying values.

Trademarks, including tradenames and owned licenses having finite lives, are amortized over their respective lives to their estimated residual values and are also reviewed for impairment in accordance with accounting standards when changes in circumstances indicate the assets’ value may be impaired. Impairment testing is based on a review of forecasted operating cash flows and the profitability of the related brand. Included in other assets, net, on the accompanying consolidated balance sheets as of January 28, 2012 and January 29, 2011 are $8.5 million related to the value of the Perfumania tradename, and $3.0 million and $3.4 million, respectively, for trademarks and licenses of Five Star.

Favorable leases resulted from the April 2009 asset purchase of three fragrance retail stores from an unrelated party. The total purchase price was not material to the Company’s consolidated results. The favorable leases are being amortized over the remaining lives of the respective store leases. As of January 28, 2012 and January 29, 2011, the leases for two of the stores have matured and the favorable lease and related accumulated amortization balances have been written off. Impairment testing is based on a review of forecasted operating cash flows and the profitability of the remaining store.

During the fourth quarters of fiscal 2011 and 2010, the Company completed its annual impairment testing of non-amortizing intangible assets and concluded that there was no impairment of these assets.

Amortization expense associated with intangible assets subject to amortization is included in depreciation and amortization on the accompanying consolidated statements of operations, and amounted to approximately $0.5 million and $0.8 million for fiscal years 2011 and 2010, respectively. The estimated future amortization expense of intangible assets is as follows (in thousands):

Fiscal Year	Amortization Expense
2012	$	500
2013	476
2014	476
2015	476
2016	370
Thereafter	1,256
	$	3,554