AutoZone 2014 Annual Report Download - page 139

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The carrying amounts of intangible assets are included in Other long-term assets as follows:
August 30, 2014
(in thousands)
Estimated
Useful
Life
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Amortizing intangible assets:
Technology .............................................. 3-5 years $ 10,570 $ (3,528) $ 7,042
Noncompete agreements ......................... 5 years 1,300 (443) 857
Customer relationships ............................ 3-10 years 48,376 (6,007) 42,369
$ 60,246 $ (9,978) 50,268
N
on-amortizing intangible asset:
Trade name ..................................................................................................................................... 24,600
Total intangible assets other than goodwill .................................................................................... $ 74,868
August 31, 2013
(in thousands)
Estimated
Useful
Life
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Amortizing intangible assets:
Technology .............................................. 5 years $ 9,700 $ (1,365) $ 8,335
Noncompete agreements ......................... 5 years 1,300 (183) 1,117
Customer relationships ............................ 10 years 19,000 (1,336) 17,664
$ 30,000 $ (2,884) 27,116
N
on-amortizing intangible asset:
Trade name ..................................................................................................................................... 24,600
Total intangible assets other than goodwill .................................................................................... $ 51,716
During fiscal year 2014, the Company purchased $30.2 million of intangible assets relating to the rights to certain
customer relationships and technology assets relating to its ALLDATA operations.
As part of its annual impairment test, the Company evaluates the AutoAnything trade name for impairment in the
fourth quarter of each fiscal year. In the fourth quarter of fiscal 2014, the Company concluded that
AutoAnything’s trade name was not impaired. During the fourth quarter of fiscal 2013, based on the Company’s
evaluation of the future discounted cash flows of AutoAnything’s trade name as compared to its carrying value, it
was determined that AutoAnything’s trade name was impaired. The Company recorded an impairment charge of
$4.1 million during the fourth quarter of fiscal 2013 related to the trade name. Trade name at August 30, 2014
and August 31, 2013 reflects a total accumulated impairment of $4.1 million.
Amortization expense of intangible assets for the year ended August 30, 2014 and August 31, 2013 was $7.1
million and $2.9 million, respectively.
Total future amortization expense for intangible assets that have finite lives, based on the existing intangible
assets and their current estimated useful lives as of August 30, 2014, is estimated as follows:
(in thousands)
Total
2015 ........................................................................................................................................... $ 8,618
2016 ........................................................................................................................................... 8,618
2017 ........................................................................................................................................... 8,353
2018 ........................................................................................................................................... 6,725
2019 ........................................................................................................................................... 6,073
Thereafter .................................................................................................................................. 11,881
$ 50,268
10-K