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Acquisition of Sierra Trading Post
 12 Months Ended
Feb. 02, 2013
Acquisition of Sierra Trading Post

Note B.    Acquisition of Sierra Trading Post

On December 21, 2012, TJX acquired Sierra Trading Post (STP), an off-price Internet retailer, which includes the operating assets of its online business and four retail locations for $196 million, subject to customary post-closing adjustments.

The acquisition was accounted for using the purchase method of accounting, accordingly, the purchase price has been allocated to the tangible assets and liabilities and intangible assets acquired, based on their estimated fair values.

The following table presents the allocation of the purchase price to the assets and liabilities acquired based on their estimated fair values as of December 21, 2012:

 

Dollars in thousands    As of
December 21,
2012		  

Current assets

    $ 100,920   

Property and equipment

      39,862   

Other assets

      1,153   

Intangible assets

      144,536   

Total assets acquired

      286,471   

Total liabilities assumed

      90,689   

Net assets acquired

    $ 195,782   

The intangible assets include identified intangible assets of $39 million for the value of the tradename “Sierra Trading Post” which is being amortized over 15 years and $8 million for customer relationships which is being amortized over 6 years. The balance of the intangible assets is goodwill of $98 million.

The results of STP have been included in TJX’s consolidated financial statements from the date of acquisition and were not material to our consolidated results for the period ended February 2, 2013 and have been included with the Marmaxx segment. Pro forma results of operations assuming the acquisition of STP occurred as of the beginning of fiscal 2013 have not been presented, as the inclusion of the results of operations for the acquired business would not have produced a material impact on the reported sales, net income or earnings per share of TJX.