LANDS' END, INC. Goodwill & Intangibles Disclosure
NOTE 9. GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSET
The Company’s intangible assets, consisting of a goodwill and trade name, were originally valued in connection with a business combination accounted for under the purchase accounting method. Goodwill represents the excess of the purchase price over the fair value of the net assets acquired. Goodwill was fully impaired in Fiscal 2023.
In Fiscal 2025, the Company classified its trade name as an asset held for sale. See Note 10, Asset Held for Sale.
The following table summarizes the activity of the Company’s Goodwill and Intangible asset:
(in millions) |
|
Goodwill |
|
|
Intangible asset, net |
|
||
Balance January 31, 2025 |
|
|
|
|
|
|
||
Gross amount |
|
$ |
110.0 |
|
|
$ |
257.0 |
|
Accumulated impairment losses |
|
|
(110.0 |
) |
|
|
— |
|
Carrying Value |
|
|
— |
|
|
|
257.0 |
|
Balance January 30, 2026 |
|
|
|
|
|
|
||
Gross amount |
|
|
110.0 |
|
|
|
257.0 |
|
Accumulated impairment losses |
|
|
(110.0 |
) |
|
|
— |
|
Reclassified to asset held for sale |
|
|
— |
|
|
|
(257.0 |
) |
Carrying Value |
|
$ |
— |
|
|
$ |
— |
|
There was no impairment of the trade name during any period presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 26, 2026 | Showing above |
| 2025 | Mar 27, 2025 | |
| 2024 | Apr 3, 2024 | |
| 2023 | Apr 10, 2023 | |
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.