Goodwill and Intangible Assets
The carrying value of goodwill was $1.01 billion as of each of January 31, 2026 and February 1, 2025. No impairments were recorded in fiscal years 2025, 2024, or 2023, as a result of the annual goodwill impairment tests performed.
Intangible assets consist of the following (in thousands):
| | | | | | | | | | | | | | | | | |
| January 31, 2026 |
| Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| Intangible Assets Not Subject to Amortization: | | | | | |
| BJ’s trade name | $ | 90,500 | | | $ | — | | | $ | 90,500 | |
| | | | | |
| Intangible Assets Subject to Amortization: | | | | | |
| Member relationships | 245,100 | | | (240,138) | | | 4,962 | |
| Private label brands | 8,500 | | | (8,500) | | | — | |
| Total intangible assets | $ | 344,100 | | | $ | (248,638) | | | $ | 95,462 | |
| | | | | | | | | | | | | | | | | |
| February 1, 2025 |
| Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| Intangible Assets Not Subject to Amortization: | | | | | |
| BJ’s trade name | $ | 90,500 | | | $ | — | | | $ | 90,500 | |
| | | | | |
| Intangible Assets Subject to Amortization: | | | | | |
| Member relationships | 245,100 | | | (234,491) | | | 10,609 | |
| Private label brands | 8,500 | | | (8,500) | | | — | |
| Total intangible assets | $ | 344,100 | | | $ | (242,991) | | | $ | 101,109 | |
The Company records amortization expense of intangible assets as a component of SG&A. Member relationships are amortized over 15.3 years and private label brands were amortized over 12 years. Member relationships will be amortized primarily through fiscal year 2026.
The Company recorded amortization expense of $5.6 million, $6.5 million and $7.9 million for fiscal years 2025, 2024, and 2023, respectively. The Company estimates that amortization expense related to intangible assets will be as follows in each of the next five fiscal years (in thousands):
| | | | | |
| Fiscal Year | Amortization Expense |
| 2026 | $ | 4,894 | |
| 2027 | 7 | |
| 2028 | 7 | |
| 2029 | 7 | |
| 2030 | 7 | |
| Thereafter | 40 |
| Total | $ | 4,962 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.