8. Intangible Assets and Goodwill


			As of July 28, 2018
Amortizable Intangible Assets	Useful Life		Gross Carrying Amount		Accumulated Amortization			Total
Technology		5-10	$	10,710		(10,507	)	$	203
Other		3-10		6,568		(6,526	)		42

			$	17,278		(17,033	)	$	245


Unamortizable Intangible Assets
Trade name	$	293,400
Publishing contracts		15,894

	$	309,294

Total amortizable and unamortizable intangible assets as of July 28, 2018	$	309,539


			As of July 29, 2017
Amortizable Intangible Assets	Useful Life		Gross Carrying Amount		Accumulated Amortization			Total
Technology		5-10	$	10,710		(10,099	)	$	611
Distribution contracts		10		8,325		(8,275	)		50
Other		3-10		6,463		(6,408	)		55

			$	25,498		(24,782	)	$	716


Unamortizable Intangible Assets ^(a)
Trade name	$	293,400
Publishing contracts		15,894

	$	309,294

Total amortizable and unamortizable intangible assets as of July 29, 2017	$	310,010

^(a)

In fiscal 2018, the Company determined that no impairment was necessary on its other unamortizable intangible assets. During the 13 weeks ended July 28, 2018, the Company experienced comparable store sales that were lower than planned. The Company has evaluated whether these decreases would indicate there is a potential impairment of unamortizable intangible assets as of July 28, 2018. The Company has considered, among other factors, the Company’s fiscal 2019 forecast and the current retail environment. Based on that evaluation, the Company determined that there have been no events or circumstances which would more likely than not reduce the fair value for its unamortizable intangible assets below their carrying value, during the quarter ended July 28, 2018, and an interim impairment test was not necessary as of July 28, 2018. However, the Company’s trade name is at risk of impairment if B&N Retail comparable store sales continue to decline, forecasted sales expectations are not met, store closings accelerate, the assumed long-term discount rate increases, or in general the Company does not achieve its forecasted multi-year strategic plan.

All amortizable intangible assets are being amortized over their useful life on a straight-line basis.


Aggregate Amortization Expense
For the 13 weeks ended July 28, 2018	$	131
For the 13 weeks ended July 29, 2017	$	200


Estimated Amortization Expense
(12 months ending on or about April 30)
2019	$	376

The carrying amounts of goodwill, which relate to the B&N Retail reporting unit, as of July 28, 2018 and July 29, 2017 are as follows:


	Total Company
Balance as of July 29, 2017	$	207,381
Fiscal 2018 benefit of excess tax amortization ^(b)		(2,176	)
Fiscal 2018 impairment charge ^(c)		(133,612	)

Balance as of July 28, 2018	$	71,593

^(b)

The tax basis of goodwill arising from an acquisition during the 52 weeks ended January 29, 2005 exceeded the related basis for financial reporting purposes by approximately $96,576. In accordance with ASC 740-10-30, Accounting for Income Taxes, the Company is recognizing the tax benefits of amortizing such excess as a reduction of goodwill as it is realized on the Company’s income tax return.

^(c)

In fiscal 2018, the Company recognized an impairment of its B&N Retail reporting unit goodwill of $133,612. While the Company has initiated a multi-year strategic plan focused on stabilizing sales, improving productivity and reducing expenses, achievement of its long-term goals requires a significant multi-year transformation. During the 13 weeks ended July 28, 2018, the Company experienced comparable store sales and earnings before interest, taxes and depreciation and amortization that were lower than planned. The Company has evaluated whether these decreases would indicate there is a potential impairment of goodwill as of July 28, 2018. The Company has considered, among other factors, the Company’s fiscal 2019 forecast and the current retail environment. Based on that evaluation, the Company determined that there have been no events or circumstances which would more likely than not reduce the fair value for its reporting units below their carrying value, during the quarter ended July 28, 2018, and an interim impairment test was not necessary as of July 28, 2018. However, the goodwill of the B&N Retail reporting unit is subject to further risk of impairment if B&N Retail comparable store sales continue to decline, the Company’s cost reduction plans do not materialize, store closings accelerate, the assumed long-term discount rate increases, or in general the Company does not achieve its forecasted multi-year strategic plan.