Banana Republic 2015 Annual Report Download - page 58

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49
Sales Return Allowance
A summary of activity in the sales return allowance account is as follows:
($ in millions) January 30,
2016
January 31,
2015
February 1,
2014
Balance at beginning of fiscal year $ 29 $ 26 $ 27
Additions 865 896 896
Returns (867) (893) (897)
Balance at end of fiscal year $ 27 $ 29 $ 26
Sales return allowances are recorded in accrued expenses and other current liabilities in the Consolidated
Balance Sheets.
Note 3. Goodwill and Other Intangible Assets
Goodwill and other intangible assets consist of the following and are included in other long-term assets in the
Consolidated Balance Sheets:
($ in millions) January 30,
2016
January 31,
2015
Goodwill $ 180 $ 180
Trade names $ 92 $ 92
Other indefinite-lived intangible assets $ 4 $ 6
Intangible assets subject to amortization $ 18 $ 18
Less: Accumulated amortization (17) (17)
Intangible assets subject to amortization, net $ 1 $ 1
Goodwill
Goodwill consists of $99 million and $81 million related to Athleta and Intermix, respectively, as of January 30,
2016 and January 31, 2015. During the fourth quarter of fiscal 2015, we completed our annual impairment test of
goodwill and we did not recognize any impairment charges.
Other Intangible Assets
Trade names consist of $54 million and $38 million related to Athleta and Intermix, respectively, as of January 30,
2016 and January 31, 2015. During the fourth quarter of fiscal 2015, we completed our annual impairment test of
trade names and we did not recognize any impairment charges.
The intangible assets subject to amortization consist of customer relationships and non-compete agreements
related to Athleta and Intermix of $15 million and $3 million, respectively. Athleta's intangible assets subject to
amortization were fully amortized by the end of fiscal 2012. Intermix's non-compete agreements were fully
amortized by the end of fiscal 2013 and its customer relationships will be fully amortized by the end of fiscal 2016.
There was no material amortization expense for intangible assets subject to amortization recorded in operating
expenses in the Consolidated Statements of Income for fiscal 2015 and 2014.