Zumiez Inc Goodwill & Intangibles Disclosure
7. Goodwill and Intangible Assets
The following tables summarize the changes in the carrying amount of goodwill (in thousands):
|
|
Total |
|
|
Balance at February 3, 2024 |
|
$ |
15,374 |
|
Impairment |
|
|
— |
|
Effects of foreign currency translation |
|
|
(116 |
) |
Balance at February 1, 2025 |
|
|
15,258 |
|
Impairment |
|
|
— |
|
Effects of foreign currency translation |
|
|
261 |
|
Balance at January 31, 2026 |
|
$ |
15,519 |
|
The company performs annual impairment test over goodwill and intangible assets to determine if fair value exceeds carrying value. The fair value of the reporting unit was determined using a combination of an income-based approach (discounted cash flows) and a market-based approach (guideline transaction method and guideline public company method). The discounted cash flow method involved subjective estimates and assumptions such as projected revenue growth, operating profit, and the discount rate. The guideline transaction method involved actual transactions that have occurred in the company’s industry or related industries to arrive at an indication of value. The guideline public company method involved calculations based on operating data from comparable publicly traded companies.
There was no impairment of goodwill for the fiscal years ended January 31, 2026 and February 1, 2025.
The following table summarizes the gross carrying amount, accumulated amortization and the net carrying amount of intangible assets (in thousands):
|
|
January 31, 2026 |
|
|
February 1, 2025 |
|
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|
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Intangible Assets, Net |
|
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Intangible Assets, Net |
|
||||||
Intangible assets (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trade names and trademarks |
|
$ |
15,513 |
|
|
$ |
— |
|
|
$ |
15,513 |
|
|
$ |
13,577 |
|
|
$ |
— |
|
|
$ |
13,577 |
|
(1) The table above excludes the gross carrying amounts and corresponding accumulated amortization for other intangible assets that were fully amortized as of January 31, 2026 and February 1, 2025.
There was no impairment of intangible assets for the fiscal years ended January 31, 2026, February 1, 2025 and February 3, 2024. All amounts in the tables above are denominated in a foreign currency and subject to foreign exchange fluctuation.
We recorded no amortization expense for intangible assets for the years ended January 31, 2026, February 1, 2025 and February 3, 2024. Amortization expense of intangible assets is recorded in selling, general and administrative expense on the consolidated statements of income (loss).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 12, 2026 | Showing above |
| 2025 | Mar 13, 2025 | |
| 2024 | Mar 14, 2024 | |
| 2023 | Mar 20, 2023 | |
| 2022 | Mar 14, 2022 | |
| 2021 | Mar 15, 2021 | |
| 2020 | Mar 16, 2020 | |
| 2019 | Mar 18, 2019 | |
| 2018 | Mar 19, 2018 | |
| 2017 | Mar 13, 2017 | |
| 2016 | Mar 14, 2016 | |
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.