Sears 2014 Annual Report Download - page 108

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
108
NOTE 12—GOODWILL AND INTANGIBLE ASSETS
The following summarizes our intangible assets at January 31, 2015 and February 1, 2014, respectively, the
amortization expenses recorded for the years then ended, as well as our estimated amortization expense for the next
five years and thereafter. The carrying amount of trade names and other intangible assets decreased by $531 million
as a result of the Lands' End spin-off and $194 million as a result of the de-consolidation of Sears Canada, which are
further described in Notes 1 and 2.
January 31, 2015 February 1, 2014
millions
Gross
Carrying
Amount Accumulated
Amortization
Gross
Carrying
Amount Accumulated
Amortization
Amortizing intangible assets:
Favorable lease rights. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 158 $ 54 $ 273 $ 141
Contractual arrangements and customer lists. . . . . . . . . 96 94 217 202
Trade names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 74 74
254 148 564 417
Non-amortizing intangible assets:
Trade names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,991 — 2,703 —
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,245 $ 148 $ 3,267 $ 417
Annual Amortization Expense
2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18
2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Estimated Amortization
2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7
2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Goodwill is the excess of the purchase price over the fair value of the net assets acquired in business
combinations accounted for under the purchase method. We recorded $1.7 billion in goodwill in connection with the
Merger. We recorded $12 million in connection with our acquisition of an additional 3% interest in Sears Canada
during 2008.