Dick's Sporting Goods 2008 Annual Report Download - page 59

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As a result of the impairment analysis performed in connection with the Company’s intangible assets, the Company determined that
the carrying value of the trade name and customer list related to its Golf Galaxy reporting unit exceeded its estimated fair value.
Accordingly, during 2008, the Company recorded a non-cash charge of $53.0 million ($32.6 million after-tax) to reduce the value of
these intangible assets to their estimated fair value. No impairment charges were recorded during the years ended February 2, 2008
and February 3, 2007.
As of January 31, 2009 and February 2, 2008, the Company had indefi nite-lived and fi nite-lived intangible assets of $38.0 million and
$69.9 million, and $8.8 million and $10.1 million, respectively.
The components of intangible assets were as follows:
2008 2007
Gross Accumulated Gross Accumulated
Amount Amortization Amount Amortization
(In thousands)
Trademarks $ 22,070 $ — $ 4,219 $ —
Trade name (indefi nite-lived) 15,900 — 65,749 —
Trade name (fi nite-lived) 800 (658) — —
Customer list 1,200 — 5,153 (429)
Favorable leases and other 8,802 (1,268) 5,849 (503)
Total intangible assets $ 48,772 $ (1,926) $ 80,970 $ (932)
Amortization expense for the Company’s fi nite-lived intangible assets is included in selling, general and administrative expenses, and
was $1.7 million, $0.7 million and $0.1 million for fi scal 2008, 2007 and 2006, respectively. The estimated weighted average economic
useful life is eleven years. The annual amortization expense of the fi nite-lived intangible assets recorded as of January 31, 2009 is
expected to be as follows:
Estimated
Amortization
Fiscal Years Expense
(In thousands)
2009 $ 994
2010 1,026
2011 1,146
2012 1,202
2013 1,086
Thereafter 3,422
Total $ 8,876
5. Integration Activities and Facility Closures
In connection with the Golf Galaxy and Chick’s acquisitions, we have incurred costs associated with the termination of employees,
facility closures and other costs directly related to the acquisition and integration initiatives implemented. For those costs recognized
in conjunction with the cost from the Company’s acquisitions, we have accounted for these costs in accordance with EITF 95-3,
“Recognition of Liabilities Assumed in Connection with a Purchase Business Combination” and therefore these costs are recognized
as liabilities in connection with the acquisition and charged to goodwill. Costs incurred in connection with all other business
integration activities have been recognized in merger and integration costs in the Consolidated Statements of Operations.
DICK’S SPORTING GOODS, INC. 2008 ANNUAL REPORT 57