Macy's 2015 Annual Report Download - page 69

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-20
5. Goodwill and Other Intangible Assets
The following summarizes the Company’s goodwill and other intangible assets:
January 30,
2016
January 31,
2015
(millions)
Non-amortizing intangible assets
Goodwill ................................................................................................................... $ 9,279 $ 9,125
Accumulated impairment losses ............................................................................... (5,382)(5,382)
3,897 3,743
Tradenames............................................................................................................... 414 414
$ 4,311 $ 4,157
Amortizing intangible assets
Favorable leases........................................................................................................ $ 149 $ 177
Tradenames............................................................................................................... 43 —
Customer relationships ............................................................................................. — 188
192 365
Accumulated amortization
Favorable leases........................................................................................................ (90)(106)
Tradenames............................................................................................................... (2) —
Customer relationships ............................................................................................. — (177)
(92)(283)
$ 100 $ 82
In March 2015, the Company completed its acquisition of Bluemercury, Inc., a luxury beauty products and spa
retailer. Goodwill during 2015 increased as a result of this acquisition. Also as a result of the acquisition of Bluemercury,
the Company established intangible assets relating to definite lived tradenames and favorable leases.
Definite lived tradenames are being amortized over their respective useful lives of 20 years. Favorable lease
intangible assets are being amortized over their respective lease terms (weighted average remaining life of approximately
six years). Customer relationship intangible assets relating to the acquisition of The May Department Stores Company are
fully amortized as of January 30, 2016.
Intangible amortization expense amounted to $23 million for 2015, $31 million for 2014 and $34 million for 2013.
Future estimated intangible amortization expense is shown below:
(millions)
Fiscal year
2016.................................................................................................................................... $ 10
2017.................................................................................................................................... 10
2018.................................................................................................................................... 10
2019.................................................................................................................................... 9
2020.................................................................................................................................... 7