XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.23.2

Goodwill and intangibles | 6 Months Ended
--- | ---
Jul. 29, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and intangibles | Goodwill and intangibles Goodwill and other indefinite-lived intangible assets, such as indefinite-lived trade names, are evaluated for impairment annually. Additionally, if events or conditions indicate the carrying value of a reporting unit or an indefinite-lived intangible asset may be greater than its fair value, the Company would evaluate the asset for impairment at that time. Impairment testing compares the carrying amount of the reporting unit or other intangible assets with its fair value. When the carrying amount of the reporting unit or other intangible assets exceeds its fair value, an impairment charge is recorded. Fiscal 2023 During the 13 weeks ended April 30, 2022, the Company completed its quarterly triggering event assessment and did not identify any events or conditions that would indicate that it was more likely than not that the carrying values of the reporting units and indefinite-lived trade names exceeded their fair values. During the 13 weeks ended July 30, 2022, the Company completed its annual evaluation of its indefinite-lived intangible assets, including goodwill and trade names, and through the qualitative assessment the Company did not identify any events or conditions that would indicate that it was more likely than not that the carrying values of the reporting units and indefinite-lived trade names exceeded their fair values. Additionally, the Company completed its quarterly triggering event assessment and determined that no triggering events had occurred in the second quarter of Fiscal 2023 requiring interim impairment assessments for all reporting units with goodwill and indefinite-lived intangible assets. In connection with the acquisition of Blue Nile on August 19, 2022, the Company recognized $96.0 million of indefinite-lived intangible assets and $256.8 million of goodwill, which are reported in the North America reportable segment. Refer to Note 4 for additional information. Fiscal 2024 During the 13 weeks ended April 29, 2023, the Company completed its quarterly triggering event assessment and did not identify any events or conditions that would indicate that it was more likely than not that the carrying values of the reporting units and indefinite-lived trade names exceeded their fair values. During the 13 weeks ended July 29, 2023, the Company completed its annual evaluation of its indefinite-lived intangible assets, including goodwill and trade names. The Company utilized the qualitative assessment for all reporting units and trade names, except the Digital Banners and Diamonds Direct reporting units and trade names, for which the quantitative assessment was utilized. Through the qualitative assessment, the Company did not identify any events or conditions that would indicate that it was more likely than not that the carrying values of the reporting units and indefinite-lived trade names exceeded their fair values. The Company noted no impairment through the quantitative assessments based on the estimated fair values of the reporting units and trade names exceeding their carrying values. Additionally, the Company completed its quarterly triggering event assessment and determined that no triggering events had occurred in the second quarter of Fiscal 2024 requiring interim impairment assessments for all reporting units with goodwill and indefinite-lived intangible assets. The uncertainty related to the current macroeconomic environment, such as rising interest rates and the heightened inflationary pressure on consumers’ discretionary spending, could negatively affect the share price of the Company’s stock, as well as key assumptions used to estimate fair value, such as sales trends, margin trends, long-term growth rates and discount rates. Thus, an adverse change in any of these factors could result in a risk of impairment in the Company’s goodwill or indefinite-lived trade names in future periods. Goodwill The following table summarizes the Company’s goodwill by reportable segment:
(in millions) |  | North America |  |  |  |  |  |
Balance at January 28, 2023 (1) |  | $ | 751.7 |  |  |  |  |  |  |
Acquisitions (2) |  | 2.4 |  |  |  |  |  |  |
Balance at July 29, 2023 (1) |  | $ | 754.1 |  |  |  |  |  |  |
(1) The carrying amount of goodwill is presented net of accumulated impairment losses of $576.0 million as of July 29, 2023 and January 28, 2023. (2) The change in goodwill during the period primarily represents the acquisition of SJR and the finalization of the purchase price allocation of Blue Nile. Intangibles Definite-lived intangible assets include trade names, technology and customer relationship assets. Indefinite-lived intangible assets consist of trade names. Both definite and indefinite-lived assets are recorded within intangible assets, net, on the condensed consolidated balance sheets. Intangible liabilities, net consists of unfavorable contracts and is recorded within accrued expenses and other current liabilities and other liabilities on the condensed consolidated balance sheets. The following table provides additional detail regarding the composition of intangible assets and liabilities:
|  | July 29, 2023 |  | January 28, 2023 |  | July 30, 2022
(in millions) |  | Gross carrying amount |  | Accumulated amortization |  | Net carrying amount |  | Gross carrying amount |  | Accumulated amortization |  | Net carrying amount |  | Gross carrying amount |  | Accumulated amortization |  | Net carrying amount
Intangible assets, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Definite-lived intangible assets |  | $ | 15.8 |  |  | $ | (8.5) |  |  | $ | 7.3 |  |  | $ | 15.8 |  |  | $ | (7.6) |  |  | $ | 8.2 |  |  | $ | 15.8 |  |  | $ | (6.6) |  |  | $ | 9.2 |
Indefinite-lived intangible assets (1) |  | 399.2 |  |  | — |  |  | 399.2 |  |  | 399.2 |  |  | — |  |  | 399.2 |  |  | 303.6 |  |  | — |  |  | 303.6 |
Total intangible assets, net |  | $ | 415.0 |  |  | $ | (8.5) |  |  | $ | 406.5 |  |  | $ | 415.0 |  |  | $ | (7.6) |  |  | $ | 407.4 |  |  | $ | 319.4 |  |  | $ | (6.6) |  |  | $ | 312.8 |
Intangible liabilities, net |  | $ | (38.0) |  |  | $ | 33.5 |  |  | $ | (4.5) |  |  | $ | (38.0) |  |  | $ | 32.6 |  |  | $ | (5.4) |  |  | $ | (38.0) |  |  | $ | 31.7 |  |  | $ | (6.3) |
(1) The change in the indefinite-lived intangible asset balances during the periods presented was due to the addition of Blue Nile trade name of $96.0 million and the impact of foreign currency translation.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration