s
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended:
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from __________ to __________
Commission File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices, Zip Code)
(
(Registrant’s telephone number, including area code)
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ | Accelerated filer ◻ | Non-accelerated filer ◻ | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Number of shares of Common Stock outstanding as of May 27, 2022:
TABLE OF CONTENTS
Page | |||
1 | |||
Financial Statements (Unaudited) | 1 | ||
Condensed Consolidated Balance Sheets (Unaudited) | 1 | ||
Condensed Consolidated Statements of Operations (Unaudited) | 2 | ||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | 3 | ||
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) | 4 | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) | 5 | ||
Notes to the Unaudited Condensed Consolidated Financial Statements (Unaudited) | 6 | ||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 19 | ||
28 | |||
28 | |||
28 | |||
28 | |||
29 | |||
30 | |||
31 |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q includes “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks,” “continues,” “feels,” “forecasts,” or words of similar meaning, or future or conditional verbs, such as “will,” “should,” “could,” “may,” “aims,” “intends,” or “projects.” Statements may be forward looking even in the absence of these particular words.
Examples of forward-looking statements include, but are not limited to, statements regarding our financial position, business strategy, and other plans and objectives for our future operations, and generation of free cash flow. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. The forward-looking statements contained in this Annual Report are largely based on our expectations for the future, which reflect certain estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions, operating trends, and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. As such, management’s assumptions about future events may prove to be inaccurate.
We do not intend to publicly update or revise any forward-looking statements as a result of new information, future events, changes in circumstances, or otherwise. These cautionary statements qualify all forward-looking statements attributable to us, or persons acting on our behalf. Management cautions you that the forward-looking statements contained herein are not guarantees of future performance, and we cannot assure you that such statements will be realized or that the events and circumstances they describe will occur. Factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements herein include, but are not limited to a change in the relationship with any of our key suppliers, including the unavailability of premium products at competitive prices, a change in negotiated volume discounts, cooperative advertising, markdown allowances, or the ability to cancel orders and return excess or unneeded merchandise; our ability to fund our planned capital investments; volatility in the financial markets or other global economic factors; difficulties in appropriately allocating capital and resources among our strategic opportunities; our ability to realize the expected benefits from recent or future acquisitions; business opportunities and expansion; investments; expenses; dividends; share repurchases; liquidity; cash flow from operations; use of cash and cash requirements; borrowing capacity and use of proceeds; repatriation of cash to the United States; supply chain issues, including delays in merchandise receipts and increasing cost pressure caused by higher oceanic shipping and freight costs; labor shortages; expectations regarding increased wages; inflation; consumer spending levels; the effect of governmental assistance programs; social unrest; the direct and indirect effects of all variants of the coronavirus pandemic (COVID-19) on our business, including any adverse effects of COVID-19 vaccine mandates or other safety protocols; expectations regarding increasing global taxes; the effect of government regulation, including changes in law; the effect of the adverse outcome of any material litigation against us or judicial decisions that affect us or our industry generally; the effects of weather; climate change; increased competition; geopolitical events; the financial effect of accounting regulations and critical accounting policies; credit risk relating to the risk of loss as a result of non-performance by our counterparties; and any other factors set forth in the section entitled “Risk Factors” of our most recent Annual Report on Form 10-K.
All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on forward-looking statements, which speak to our views only as of the date of this filing. Additional risks and uncertainties that we do not presently know about or that we currently consider to be insignificant may also affect our business operations and financial performance. The Company does not undertake to update any particular forward-looking statement included in this document. See “Risk Factors” included in the Annual Report for a discussion of certain risks relating to our business and any investment in our securities. We are including this cautionary note to make applicable, and take advantage of, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements.
Please refer to “Item 1A. Risk Factors” of our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, you should not rely on forward-looking statements as predictions of actual results. Any or all of the forward-looking statements contained in this report, or any other public statement made by us, including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
April 30, | May 1, | January 29, | |||||||
($ in millions, except share amounts) |
| 2022 |
| 2021 |
| 2022* | |||
ASSETS |
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Current assets: |
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Cash and cash equivalents | $ | | $ | | $ | | |||
Merchandise inventories |
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Other current assets |
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Property and equipment, net |
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Operating lease right-of-use assets | | | | ||||||
Deferred taxes |
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Goodwill |
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Other intangible assets, net |
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Minority investments | | | | ||||||
Other assets |
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$ | | $ | | $ | | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable | $ | | $ | | $ | | |||
Accrued and other liabilities |
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Current portion of debt and obligations under finance leases | | | | ||||||
Current portion of lease obligations | | | | ||||||
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Long-term debt and obligations under finance leases |
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Long-term lease obligations | | | | ||||||
Other liabilities |
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Total liabilities |
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Commitments and contingencies |
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Shareholders’ equity: | |||||||||
Common stock and paid-in capital: | | | | ||||||
Retained earnings | | | | ||||||
Accumulated other comprehensive loss | ( | ( | ( | ||||||
Less: Treasury stock at cost: | ( | ( | ( | ||||||
Noncontrolling interest | | | | ||||||
Total shareholders' equity | | | | ||||||
$ | | $ | | $ | |
* |
See Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.
First Quarter 2022 Form 10-Q Page 1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Thirteen weeks ended | ||||||
April 30, | May 1, | |||||
($ in millions, except per share amounts) |
| 2022 |
| 2021 | ||
Sales | $ | | $ | | ||
Cost of sales |
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Selling, general and administrative expenses |
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Depreciation and amortization |
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Impairment and other charges |
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Income from operations |
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Interest expense, net |
| ( |
| ( | ||
Other (expense) / income, net |
| ( |
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Income before income taxes |
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Income tax expense |
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Net income | | | ||||
Net loss attributable to noncontrolling interests | | — | ||||
Net income attributable to Foot Locker, Inc. | $ | | $ | | ||
Basic earnings per share | $ | | $ | | ||
Weighted-average shares outstanding |
| |
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Diluted earnings per share | $ | | $ | | ||
Weighted-average shares outstanding, assuming dilution |
| |
| |
See Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.
First Quarter 2022 Form 10-Q Page 2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Thirteen weeks ended | ||||||
April 30, | May 1, | |||||
($ in millions) |
| 2022 |
| 2021 | ||
Net income attributable to Foot Locker, Inc. | $ | | $ | | ||
Other comprehensive income (loss), net of income tax |
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Foreign currency translation adjustment: |
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Translation adjustment arising during the period, net of income tax (benefit)/expense of $( |
| ( |
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Cash flow hedges: |
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Change in fair value of derivatives, net of income tax expense of $-, and $-, respectively |
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| — | ||
Pension and postretirement adjustments: |
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Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, net of income tax expense of $ |
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Comprehensive income | $ | | $ | |
See Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.
First Quarter 2022 Form 10-Q Page 3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
| Additional Paid-In |
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| Accumulated | |||||||||||||||||
Capital & | Other | Total | ||||||||||||||||||||
Thirteen weeks ended | Common Stock | Treasury Stock | Retained | Comprehensive | Noncontrolling | Shareholders' | ||||||||||||||||
(shares in thousands, amounts in millions) | Shares | Amount | Shares | Amount | Earnings | Loss | interests | Equity | ||||||||||||||
Balance at January 29, 2022 |
| | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | |||||||
Restricted stock issued |
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Issued under director and stock plans |
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Share-based compensation expense |
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Shares of common stock used to satisfy tax withholding obligations |
| ( | ( | ( | ||||||||||||||||||
Share repurchases |
| ( | ( | ( | ||||||||||||||||||
Net income |
| | ( | | ||||||||||||||||||
Cash dividends declared on common stock ($ |
| ( | ( | |||||||||||||||||||
Translation adjustment, net of tax |
| ( | ( | |||||||||||||||||||
Change in cash flow hedges, net of tax |
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Pension and postretirement adjustments, net of tax |
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Balance at April 30, 2022 |
| | $ | |
| ( | $ | ( | $ | | $ | ( | $ | | $ | |
| Additional Paid-In |
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| Accumulated | |||||||||||||||||
Capital & | Other | Total | ||||||||||||||||||||
Thirteen weeks ended | Common Stock | Treasury Stock | Retained | Comprehensive | Noncontrolling | Shareholders' | ||||||||||||||||
(shares in thousands, amounts in millions) | Shares | Amount | Shares | Amount | Earnings | Loss | interests | Equity | ||||||||||||||
Balance at January 30, 2021 |
| | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | |||||||
Restricted stock issued |
| | — | |||||||||||||||||||
Issued under director and stock plans |
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Share-based compensation expense |
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Shares of common stock used to satisfy tax withholding obligations |
| ( | ( | ( | ||||||||||||||||||
Share repurchases |
| ( | ( | ( | ||||||||||||||||||
Net income |
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Cash dividends declared on common stock ($ |
| ( | ( | |||||||||||||||||||
Translation adjustment, net of tax |
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Pension and postretirement adjustments, net of tax |
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Balance at May 1, 2021 |
| | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | |
See Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.
First Quarter 2022 Form 10-Q Page 4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Thirteen weeks ended | ||||||
April 30, | May 1, | |||||
($ in millions) |
| 2022 |
| 2021 | ||
From operating activities: |
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Net income | $ | | $ | | ||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Non-cash impairment and other charges |
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Fair value adjustments to minority investments | | — | ||||
Depreciation and amortization |
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Deferred income taxes |
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Share-based compensation expense |
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Change in assets and liabilities: |
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Merchandise inventories |
| ( |
| ( | ||
Accounts payable |
| ( |
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Accrued and other liabilities |
| ( |
| ( | ||
Insurance recovery received for inventory loss |
| — |
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Other, net |
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Net cash (used in) provided by operating activities |
| ( |
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From investing activities: |
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Capital expenditures |
| ( |
| ( | ||
Purchase of business, net of cash acquired |
| ( |
| — | ||
Minority investments |
| ( |
| ( | ||
Proceeds from sale of property | — | | ||||
Insurance proceeds related to loss on property and equipment |
| — |
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Net cash used in investing activities |
| ( |
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From financing activities: |
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Purchase of treasury shares | ( |
| ( | |||
Dividends paid on common stock | ( |
| ( | |||
Payment of obligations under finance leases | ( | — | ||||
Proceeds from exercise of stock options | |
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Shares of common stock repurchased to satisfy tax withholding obligations | ( |
| ( | |||
Net cash used in financing activities |
| ( |
| ( | ||
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash |
| ( |
| — | ||
Net change in cash, cash equivalents, and restricted cash |
| ( |
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Cash, cash equivalents, and restricted cash at beginning of year |
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Cash, cash equivalents, and restricted cash at end of period | $ | | $ | | ||
Cash paid during the year: |
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Interest | $ | | $ | | ||
Income taxes | $ | | $ | | ||
Cash paid for amounts included in measurement of operating lease liabilities | $ | | $ | | ||
Non-cash investing activities: | ||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | | $ | |
See Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.
First Quarter 2022 Form 10-Q Page 5
1. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods presented. As used in these Notes to the Unaudited Condensed Consolidated Financial Statements, the terms “Foot Locker,” “Company,” “we,” “our,” and “us” refer to Foot Locker, Inc. and its consolidated subsidiaries.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the accompanying Unaudited Condensed Consolidated Financial Statements and these Notes and related disclosures. Actual results may differ from those estimates. The results of operations for any interim period are not necessarily indicative of the results expected for the year.
The results of operations for the period ended April 30, 2022 are not necessarily indicative of the results to be expected for the full fiscal year due to the continued uncertainty of general economic conditions that may affect us for the remainder of 2022. Specifically, the ongoing COVID-19 pandemic and its continuing effect on our operations and traffic to our stores, as well as port delays, our distribution capabilities, and distribution capabilities of our suppliers.
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in our 2021 Form 10-K.
There were no significant changes to the policies disclosed in Note 1, Summary of Significant Accounting Policies of our 2021 Form 10-K.
Recent Accounting Pronouncements
Recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on our present or future consolidated financial statements.
2. Acquisitions
In 2021, we acquired WSS and atmos,
WSS
During the thirteen weeks ended April 30, 2022, we paid an additional $
First Quarter 2022 Form 10-Q Page 6
2. Acquisitions (continued)
The following table represents the final allocation of the purchase price for WSS.
($ in millions) |
| ||
Assets acquired: |
|
| |
Cash and cash equivalents | $ | | |
Merchandise inventories |
| | |
Other current assets |
| | |
Property and equipment, net |
| | |
Operating lease right-of-use assets | | ||
Tradenames |
| | |
Customer relationships | | ||
Other assets |
| | |
Liabilities assumed: |
|
| |
Accounts payable | $ | ( | |
Current portion of obligations under finance leases | ( | ||
Current portion of lease obligations | ( | ||
Long-term portion of obligations under finance leases | ( | ||
Long-term lease obligations | ( | ||
Deferred taxes | ( | ||
Other liabilities |
| ( | |
Goodwill | | ||
Total purchase price | $ | |
atmos
During the thirteen weeks ended April 30, 2022, we paid an additional $
The following table represents the preliminary allocation of the purchase price for atmos and includes fair value adjustments to certain assets and liabilities since our most recent annual report. Goodwill remained unchanged at $
We are assessing the tax deductibility of the goodwill related to the acquisition.
First Quarter 2022 Form 10-Q Page 7
2. Acquisitions (continued)
The following table represents the preliminary allocation of the purchase price for atmos.
($ in millions) |
| ||
Assets acquired: |
|
| |
Cash and cash equivalents | $ | | |
Merchandise inventories |
| | |
Other current assets |
| | |
Property and equipment, net |
| | |
Operating lease right-of-use assets | | ||
Tradenames |
| | |
Customer relationships | | ||
Other assets |
| | |
Liabilities assumed: |
| ||
Accounts payable | $ | ( | |
Current portion of lease obligations | ( | ||
Other current liabilities | ( | ||
Long-term lease obligations | ( | ||
Deferred taxes | ( | ||
Other liabilities |
| ( | |
Goodwill (1) | | ||
Total purchase price (2) | $ | |
(1) | Goodwill represented on this table is at the exchange rate in effect as of the date of acquisition. |
(2) | Total purchase price consists of $ |
3. Revenue
The table below presents sales disaggregated based upon sales channel. Sales are attributable to the channel in which the sales transaction is initiated.
Thirteen weeks ended | |||||
April 30, | May 1, | ||||
($ in millions) | 2022 |
| 2021 | ||
Sales by Channel | |||||
Stores | $ | | $ | | |
Direct-to-customers |
| |
| | |
Total sales | $ | | $ | |
Sales disaggregated based upon geographic area are presented in the table below. Sales are attributable to the geographic area in which the sales transaction is fulfilled.
Thirteen weeks ended | |||||
April 30, | May 1, | ||||
($ in millions) | 2022 |
| 2021 | ||
Sales by Geography | |||||
United States | $ | | $ | | |
International |
| |
| | |
Total sales | $ | | $ | |
First Quarter 2022 Form 10-Q Page 8
3. Revenue (continued)
Contract Liabilities
We sell gift cards, which do not have expiration dates. Revenue from gift card sales is recorded when the gift cards are redeemed by customers. Breakage income is recognized as revenue in proportion to the pattern of rights exercised by the customer. The table below presents the activity of our gift card liability balance.
April 30, | May 1, | |||||
($ in millions) | 2022 | 2021 | ||||
Gift card liability at beginning of year | $ | | $ | | ||
Redemptions | ( | ( | ||||
Breakage recognized in sales | ( | ( | ||||
Activations | | | ||||
Gift card liability | $ | | $ | |
We elected not to disclose the information about remaining performance obligations since the amount of gift cards redeemed after 12 months is not significant.
4. Segment Information
We have integrated all available shopping channels including stores, websites, apps, social channels, and catalogs. Store sales are primarily fulfilled from the store’s inventory, but may also be shipped from any of our distribution centers or from a different store location if an item is not available at the original store. Direct-to-customer orders are generally shipped to our customers through our distribution centers but may also be shipped from any store or a combination of our distribution centers and stores depending on availability.
We evaluate performance based on several factors, primarily the banner’s financial results, referred to as division profit. Division profit reflects income before income taxes, impairment and other charges, corporate expense, non-operating income, and net interest expense.
Thirteen weeks ended | ||||||
April 30, | May 1, | |||||
($ in millions) |
| 2022 |
| 2021 | ||
Sales | $ | | $ | | ||
Operating Results |
|
|
|
| ||
Division profit | | | ||||
Less: Impairment and other charges (1) |
| |
| | ||
Less: Corporate expense (2) |
| |
| | ||
Income from operations |
| |
| | ||
Interest expense, net |
| ( |
| ( | ||
Other (expense) / income, net (3) |
| ( |
| | ||
Income before income taxes | $ | | $ | |
(1) | We recorded pre-tax charges of $ |
(2) | Corporate expense consists of unallocated selling, general and administrative expenses, as well as depreciation and amortization related to our corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses, and other items. |
(3) | Other (expense) income, net for the thirteen weeks ended April 30, 2022 primarily consisted of a $ |
First Quarter 2022 Form 10-Q Page 9
5. Impairment and Other Charges
Thirteen weeks ended | ||||||
April 30, | May 1, | |||||
($ in millions) |
| 2022 |
| 2021 | ||
Impairment of long-lived assets and right-of-use assets | $ | | $ | — | ||
Acquisition and integration costs | | — | ||||
Other | | — | ||||
Impairment of investments | — | | ||||
Reorganization costs | — | | ||||
Total impairment and other charges | $ | | $ | |
During the first quarter of 2022, we recorded impairment charges of $
In the first quarter of 2021, we recorded an impairment charge of $
6. Cash, Cash Equivalents, and Restricted Cash
The table below provides a reconciliation of cash and cash equivalents, as reported on our Condensed Consolidated Balance Sheets, to cash, cash equivalents, and restricted cash, as reported on our Condensed Consolidated Statements of Cash Flows.
April 30, | May 1, | |||||
($ in millions) |
| 2022 |
| 2021 | ||
Cash and cash equivalents | $ | | $ | | ||
Restricted cash included in other current assets | | | ||||
Restricted cash included in other non-current assets | | | ||||
Cash, cash equivalents, and restricted cash | $ | | $ | |
Amounts included in restricted cash primarily relate to amounts held in escrow in connection with various leasing arrangements in Europe and deposits held in insurance trusts to satisfy the requirement to collateralize part of the self-insured workers’ compensation and liability claims.
7. Goodwill
See footnote 2, Acquisitions, for additional information on our recent acquisitions. We review goodwill for impairment annually during the first quarter of each fiscal year, or more frequently if impairment indicators arise. The review of impairment consists of either using a qualitative approach to determine whether it is more likely than not that the fair value of the assets is less than their respective carrying values or a one-step quantitative impairment test.
The results of the first quarter analysis did not result in an impairment since the fair value of each reporting unit exceeded its carrying value.
First Quarter 2022 Form 10-Q Page 10
8. Other Intangible Assets, net
The components of finite-lived intangible assets and intangible assets not subject to amortization are as follows:
April 30, 2022 | May 1, 2021 | |||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | |||||||||||||
($ in millions) | value | amort. | value | value | amort. | value | ||||||||||||
Amortized intangible assets: (1) |
| |||||||||||||||||
Lease acquisition costs | $ | | $ | ( | $ | | $ | | $ | ( | $ | | ||||||
Trademarks/tradenames (2) | | ( | — | | ( | | ||||||||||||
Customer lists | | ( | | — | — | — | ||||||||||||
$ | | $ | ( | $ | | $ | | $ | ( | $ | | |||||||
Indefinite life intangible assets: (1) | ||||||||||||||||||
Trademarks/tradenames | $ | | $ | | ||||||||||||||
Other intangible assets, net | $ | | $ | |
(1) | The change in the ending balances also reflects the effect of foreign currency fluctuations due primarily to movements of the euro in relation to the U.S. dollar. |
(2) | During the fourth quarter of 2021, we recorded a non-cash impairment charge related to the Footaction tradename. |
In connection with the acquisitions of WSS and atmos, we recognized indefinite life intangible assets of $
Amortization expense recorded is as follows:
Thirteen weeks ended | ||||||
April 30, | May 1, | |||||
($ in millions) |
| 2022 |
| 2021 | ||
Amortization expense | $ | | $ | |
Estimated future amortization expense for finite-life intangible assets is as follows:
($ in millions) |
| ||
Remainder of 2022 | $ | | |
2023 | | ||
2024 |
| | |
2025 | |
First Quarter 2022 Form 10-Q Page 11