The Gap 2012 Annual Report Download - page 65

47
The preliminary purchase price allocation as of December 31, 2012 was as follows:
($ in millions)
Goodwill $ 85
Trade name 38
Intangible assets subject to amortization 3
Net assets acquired 3
Total purchase price $ 129
The purchase price allocation above is subject to adjustments as the fair values are finalized.
All of the assets and liabilities acquired, including goodwill, have been allocated to the Direct reportable segment. None of
the goodwill acquired is deductible for tax purposes.
See Note 4 of Notes to Consolidated Financial Statements for disclosures about goodwill and intangible assets.
Note 4. Goodwill and Intangible Assets
Goodwill and intangible assets consist of the following and are included in other long-term assets in the Consolidated
Balance Sheets:
($ in millions) February 2,
2013 January 28, 2012
Goodwill $ 184 $ 99
Trade names $ 92 $ 54
Other indefinite-lived intangible assets $ 6 $ —
Intangible assets subject to amortization $ 18 $ 15
Less: Accumulated amortization (15) (14)
Intangible assets subject to amortization, net $ 3 $ 1
Goodwill
As discussed in Note 3 of Notes to Consolidated Financial Statements, we preliminarily allocated $85 million to goodwill
as part of our acquisition of Intermix on December 31, 2012. During fiscal 2012, 2011, and 2010, there were no changes
in the $99 million carrying amount of goodwill related to Athleta. The goodwill associated with both Athleta and Intermix is
allocated to the Direct reportable segment.
During the fourth quarter of fiscal 2012, we completed our annual impairment test of goodwill and we did not recognize
any impairment charges.
Other Intangible Assets
As discussed in Note 3 of Notes to Consolidated Financial Statements, we allocated $38 million to trade name and $3
million to intangible assets subject to amortization in connection with our acquisition of Intermix. The intangible assets
subject to amortization related to Intermix consist of customer relationships and a non-compete agreement that will be
amortized over a period of four years and one year, respectively. There was no material amortization expense recognized
in operating expenses in the Consolidated Statement of Income in fiscal 2012 related to Intermix's intangible assets
subject to amortization. The future amortization expense associated with Intermix's intangible assets subject to
amortization is $2 million in fiscal 2013 and immaterial amounts in each of the following three fiscal years.
During fiscal 2012, 2011, and 2010, there were no changes in the $54 million carrying amount of Athleta's trade name.
Athleta's intangible assets subject to amortization of $15 million, consisting primarily of customer relationships, were fully
amortized in fiscal 2012. Amortization expense for Athleta's intangible assets subject to amortization was $1 million, $2
million, and $4 million for fiscal 2012, 2011, and 2010, respectively, and it is recorded in operating expenses in the
Consolidated Statements of Income.
During the fourth quarter of fiscal 2012, we completed our annual impairment test of trade names and we did not
recognize any impairment charges.
Table of Contents