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Goodwill and Other Intangible Assets | 12 Months Ended
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Jan. 29, 2022
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets |
| 5. | Goodwill and Other Intangible Assets
The following summarizes the Company’s goodwill and other intangible assets:
|  | January 29, |  |  | January 30, |
|  | 2022 |  |  | 2021 |
|  | (millions) |
Non-amortizing intangible assets |  |  |  |  |  |  |  |
Goodwill |  | $ | 9,290 |  |  | $ | 9,290 |
Accumulated impairment losses |  |  | (8,462 | ) |  |  | (8,462 | )
|  |  | 828 |  |  |  | 828 |
Tradenames |  |  | 403 |  |  |  | 403 |
|  | $ | 1,231 |  |  | $ | 1,231 |
Amortizing intangible assets |  |  |  |  |  |  |  |
Favorable leases and other contractual assets |  | $ | 5 |  |  | $ | 5 |
Tradenames |  |  | 43 |  |  |  | 43 |
|  |  | 48 |  |  |  | 48 |
Accumulated amortization |  |  |  |  |  |  |  |
Favorable leases and other contractual assets |  |  | (1 | ) |  |  | (1 | )
Tradenames |  |  | (15 | ) |  |  | (13 | )
|  |  | (16 | ) |  |  | (14 | )
|  | $ | 32 |  |  | $ | 34 |
Capitalized software |  |  |  |  |  |  |  |
Gross balance |  | $ | 1,010 |  |  | $ | 1,136 |
Accumulated amortization |  |  | (499 | ) |  |  | (645 | )
|  | $ | 511 |  |  | $ | 491 |
For the Company's annual impairment assessment as of the end of fiscal May 2021, the Company elected to perform a qualitative impairment test on its goodwill and intangible assets with indefinite lives and concluded that it is more likely than not that the fair values exceeded the carrying values and goodwill and intangible assets with indefinite lives were not impaired. During the first quarter of 2020, as a result of the sustained decline in the Company's market capitalization and changes in the Company's long-term projections driven largely by the impacts of the COVID-19 pandemic, the Company determined a triggering event had occurred that required an interim impairment assessment for all of its reporting units and indefinite lived intangible assets. The Company determined the fair value of each of its reporting units using a market approach or a combination of a market approach and income approach, as appropriate. Relative to the Company’s 2019 assessment, as part of this 2020 assessment, it was determined that an increase in the discount rate applied in the valuation was required to align with market-based assumptions and company-specific risk. This higher discount rate, in conjunction with revised long-term projections, resulted in lower fair values of the reporting units. As a result, the Company recognized $2,982 million and $98 million of goodwill impairment for the Macy's and bluemercury reporting units, respectively, primarily during the first quarter of 2020. At the end of fiscal May 2020, the Company elected to perform a qualitative impairment test on its intangible assets with indefinite lives and concluded that it is more likely than not that the fair values exceeded the carrying values and the intangible assets with indefinite lives were not impaired. Finite lived tradenames are being amortized over their respective useful lives of 20 years. Favorable lease intangible assets are being amortized over their respective lease terms. Other contractual assets and tradenames amortization expense amounted to $2 million, $2 million and $3 million for 2021, 2020, and 2019, respectively. Capitalized software amortization expense amounted to $238 million for 2021, $268 million for 2020 and $285 million for 2019. Future estimated amortization expense for assets, excluding in-process capitalized software of $129 million not yet placed in service as of January 29, 2022, is shown below:
|  |  |  | Amortizing |  |  | Capitalized |
|  |  |  | intangible assets |  |  | Software |
|  |  |  | (millions) |
Fiscal year |  |  |  |  |  |  |  |  |
| 2022 |  |  | $ | 2 |  |  | $ | 180 |
| 2023 |  |  |  | 2 |  |  |  | 111 |
| 2024 |  |  |  | 2 |  |  |  | 65 |
| 2025 |  |  |  | 2 |  |  |  | 25 |
| 2026 |  |  |  | 2 |  |  |  | — |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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