Restoration Hardware 2012 Annual Report Download - page 150

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NOTE 7—GOODWILL AND INTANGIBLE ASSETS
The following sets forth the goodwill and intangible assets as of February 2, 2013 (dollar amounts in
thousands):
Gross
Carrying
Amount
Accumulated
Amortization
Foreign
Currency
Translation
Net Book
Value
February 2,
2013
Useful
Life
Intangible assets subject to amortization:
Core technologies $ 6,580 $ (6,141) $— $ 439 5 years
Fair value of leases
Fair market write-up 10,737 (8,511) 48 2,274 (2)
Fair market write-down (2,591) 1,789 — (802)(1) (2)
Total intangible assets subject to
amortization 14,726 (12,863) 48 1,911
Intangible assets not subject to amortization:
Goodwill 122,285 — 316 122,601
Trademarks and domain name 47,410 — — 47,410
Total intangible assets $184,421 $(12,863) $364 $171,922
(1) The fair market write-down of leases is included in other long-term obligations on the consolidated balance
sheets.
(2) The fair value of each lease is amortized over the life of the respective lease. The longest lease for which a
fair value adjustment was recorded has a termination date in January 2019.
The following sets forth the goodwill and intangible assets as of January 28, 2012 (dollar amounts in
thousands):
Gross
Carrying
Amount
Accumulated
Amortization
Foreign
Currency
Translation
Net Book
Value
January 28,
2012
Useful
Life
Intangible assets subject to amortization:
Core technologies $ 6,580 $ (4,825) $— $ 1,755 5 years
Fair value of leases
Fair market write-up 11,988 (8,365) 48 3,671 (2)
Fair market write-down (2,591) 1,448 — (1,143)(1) (2)
Total intangible assets subject to
amortization 15,977 (11,742) 48 4,283
Intangible assets not subject to amortization:
Goodwill 122,285 — 310 122,595
Trademarks 47,100 — — 47,100
Total intangible assets $185,362 $(11,742) $358 $173,978
(1) The fair market write-down of leases is included in other long-term obligations on the consolidated balance
sheets.
(2) The fair value of each lease is amortized over the life of the respective lease. The longest lease for which a
fair value adjustment was recorded has a termination date in January 2019.
The Company recorded amortization expense related to intangible assets of $2.4 million, $2.8 million, and
$3.4 million in fiscal 2012, fiscal 2011, and fiscal 2010, respectively.
94