Annual report pursuant to Section 13 and 15(d)

Goodwill and Nonamortizing Intangible Assets

v3.20.4
Goodwill and Nonamortizing Intangible Assets
 12 Months Ended
Jan. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Nonamortizing Intangible Assets Goodwill and Nonamortizing Intangible Assets
Goodwill allocated to our reportable segments and changes in the net carrying amount of goodwill for the years ended January 30, 2021 and February 1, 2020 are as follows:
(in millions) Dollar Tree Family Dollar Total
Balance at February 2, 2019 $ 376.5  $ 1,920.1  $ 2,296.6 
Foreign currency translation adjustments (0.3) —  (0.3)
Goodwill reassignment for re-bannered stores 47.6  (47.6) — 
Goodwill impairment —  (313.0) (313.0)
Balance at February 1, 2020 423.8  1,559.5  1,983.3 
Foreign currency translation adjustments 1.1  —  1.1 
Balance at January 30, 2021 $ 424.9  $ 1,559.5  $ 1,984.4 
Goodwill is reassigned between segments when previously acquired stores are re-bannered between segments. The goodwill related to previously acquired re-bannered stores in 2020 was not material. In 2019, we reassigned $47.6 million of goodwill from Family Dollar to Dollar Tree as a result of re-bannering. Re-bannered stores are treated as new stores.
Goodwill and other indefinite-lived intangible assets must be evaluated for impairment annually and may also be tested on an interim basis upon the occurrence of a triggering event or a change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The annual goodwill impairment evaluation in 2020 did not result in impairment. The 2019 and 2018 goodwill impairment evaluations indicated that the fair value of the Family Dollar reporting unit was lower than
its carrying value resulting in $313.0 million and $2.73 billion non-cash pre-tax and after-tax goodwill impairment charges in the fourth quarters of fiscal 2019 and 2018, respectively, which were recorded as a component of “Selling, general and administrative expenses” in the accompanying consolidated statements of operations.
Our annual impairment evaluation of the Family Dollar trade name did not result in impairment charges during fiscal 2020, 2019 or 2018.