Express 2014 Annual Report Download - page 60

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financing obligations as of January 31, 2015 and February 1, 2014, respectively, in Other Long Term Liabilities
on the Consolidated Balance Sheets. The transactions involving the initial recording of these assets and liabilities
are classified as non-cash items for purposes of the Consolidated Statements of Cash Flows.
Rent expense relating to the land is recognized on a straight-line basis once construction begins. Once the store
opens, the Company will not report rent expense for the portion of the rent payment determined to be related to
the lease obligations which are owned for accounting purposes. Rather, this portion of rent payment under the
lease is recognized as a reduction of the lease financing obligations and interest expense.
6. Intangible Assets
The following table provides the significant components of intangible assets:
January 31, 2015
Cost
Accumulated
Amortization
Ending Net
Balance
(in thousands)
Tradenames ............................... $196,144 $ — $196,144
Internet domain names/trademarks ............. 1,418 — 1,418
Net favorable lease obligations/other ........... 21,175 19,906 1,269
$218,737 $19,906 $198,831
February 1, 2014
Cost
Accumulated
Amortization
Ending Net
Balance
(in thousands)
Tradenames ............................... $196,144 $ — $196,144
Internet domain names/trademarks ............. 1,668 — 1,668
Net favorable lease obligations/other ........... 20,175 19,106 1,069
$217,987 $19,106 $198,881
The Company’s tradenames, Internet domain names, and trademarks have indefinite lives. Net favorable lease
obligations and other intangibles are amortized over a period between five and ten years and are included in other
assets on the Consolidated Balance Sheets. The net favorable lease assets were fully amortized as of January 31,
2015. Amortization expense totaled $0.8 million, $1.3 million, and $1.5 million during 2014, 2013, and 2012,
respectively.
Future amortization expense is expected to approximate the following (in thousands):
2015 .............................................. $ 149
2016 .............................................. 149
2017 .............................................. 149
2018 .............................................. 149
2019 .............................................. 149
Thereafter .......................................... 524
Total .............................................. $1,269
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