Dick's Sporting Goods 2010 Annual Report Download - page 74

($32.6 million after-tax) to reduce the value of these intangible assets to their estimated fair value in the year ended January 31,
2009. No impairment charges were recorded during the years ended January 29, 2011 and January 30, 2010.
The Company had indefinite-lived and finite-lived intangible assets of $44.2 million and $6.9 million, respectively, as of January 29,
2011 and $39.7 million and $7.9 million, respectively, as of January 30, 2010.
The components of intangible assets were as follows (in thousands):
Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization
2010 2009
Trademarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,270 $ — $23,770 $ —
Trade name (indefinite-lived) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,900 — 15,900 —
Trade name (finite-lived) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 800 (800)
Customer list . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 (480) 1,200 (240)
Favorable leases and other finite-lived intangible assets . . . . . . . . . . 8,802 (2,662) 8,802 (1,875)
Other indefinite-lived intangible assets . . . . . . . . . . . . . . . . . . . . . . . 4,040 — — —
Total intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $54,212 $(3,142) $50,472 $(2,915)
Amortization expense for the Company’s finite-lived intangible assets is included within selling, general and administrative
expenses in the Consolidated Statements of Operations, and was $1.0 million, $1.0 million and $1.7 million for fiscal 2010, 2009
and 2008, respectively. The annual estimated amortization expense of the finite-lived intangible assets recorded as of January 29,
2011 is expected to be as follows (in thousands):
Fiscal
Years
Estimated
Amortization
Expense
2011................................ $1,146
2012................................ 1,202
2013................................ 1,086
2014................................ 654
2015................................ 597
Thereafter ............................. 2,175
$6,860
4. Store and Corporate Office Closings
The following table summarizes the activity of the Company’s store closing reserves (in thousands):
2010 2009
Accrued store closing and relocation reserves, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,716 $ 44,621
Expense charged to earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,545 2,916
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,073) (13,339)
Interest accretion and other changes in assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,730 1,518
Accrued store closing and relocation reserves, end of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,918 35,716
Less: current portion of accrued store closing and relocation reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,129) (8,484)
Long-term portion of accrued store closing and relocation reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,789 $ 27,232
The Company recorded $16.4 million of expenses related to the closure of 12 underperforming Golf Galaxy stores in fiscal 2010.
These expenses are reflected as part of selling, general and administrative expenses in the Consolidated Statements of
Operations.
54 Dick’s Sporting Goods, Inc. ¬2010 Annual Report
DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)