lululemon athletica inc.
For the period ended Feb 2, 2025. Filed Mar 27, 2025.
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FY2025 · Filed Mar 27, 2025
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Intangible Assets
Note 8. Intangible Assets
A summary of the balances of the Company's intangible assets as of February 2, 2025, January 28, 2024, is presented below:
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Remaining Useful Life (Years) | |
|---|---|---|---|---|
| (In thousands, except in years) | ||||
| Franchise rights | 14,325 | (2,652) | 11,673 | 1.8 |
| Other | 270 | (270) | — | n/a |
| Intangible assets | $14,595 | $(2,922) | $11,673 | 1.8 |
| Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Carrying Amount | |
|---|---|---|---|---|
| (In thousands) | ||||
| MIRROR brand | $26,500 | $(4,089) | $(22,411) | $— |
| Customer relationships | 28,000 | (7,492) | (20,508) | — |
| Technology | 25,500 | (12,632) | (12,868) | — |
| Content | 5,000 | (3,250) | (1,750) | — |
| Other | 270 | (270) | — | — |
| Intangible assets | $85,270 | $(27,733) | $(57,537) | $— |
As part of the acquisition of the Mexico operations in 2024, the Company recognized intangible assets related to reacquired franchise rights, which are being amortized until November 2026. Please refer to Note 6. Acquisition for further information.
Amortization of intangible assets was $2.7 million, $5.0 million, and $8.8 million in 2024, 2023, and 2022, respectively. Future expected amortization expense as of February 2, 2025, is $6.4 million and $5.2 million, for 2025 and 2026, respectively.
During 2023 and 2022, the Company recognized intangible asset impairment charges of $17.0 million and $40.6 million, respectively. These impairment charges related to the intangible assets that were recognized on the acquisition of MIRROR. Please refer to Note 9. Impairment of Goodwill and Other Assets, Restructuring Costs for further information.
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