Sears 2015 Annual Report Download - page 96

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continuing involvement related to the floors surrendered as we have transferred all of the risks and rewards of
ownership to the landlord, and therefore immediate gain recognition is appropriate.
In connection with the other transactions, we surrendered substantially all of our rights and obligations under
our preexisting lease agreements and agreed to surrender each of the premises in periods ranging up to 23 months
from the date of closing to facilitate an orderly wind down of operations, and, therefore, immediate gain recognition
is appropriate on these transactions.
NOTE 12—GOODWILL AND INTANGIBLE ASSETS
The following summarizes our intangible assets at January€30, 2016 and January€31, 2015, respectively, the
amortization expenses recorded for the years then ended, as well as our estimated amortization expense for the next
five years and thereafter.€
January 30, 2016 January 31, 2015
millions
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Amortizing intangible assets:
Favorable lease rights. . . . . . . . . . . . . . . . . . . . . . . . . . . $155 $57 $158 $54
Contractual arrangements and customer lists. . . . . . . . . 96 96 96 94
251 153 254 148
Non-amortizing intangible assets:
Trade names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,811 — 1,991 —
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,062 $153 $2,245 $148
Annual Amortization Expense
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Estimated Amortization
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
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.
SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
96