Annual report pursuant to Section 13 and 15(d)

GOODWILL AND INTANGIBLE ASSETS

v3.20.1
GOODWILL AND INTANGIBLE ASSETS
12 Months Ended
Feb. 01, 2020
GOODWILL AND INTANGIBLE ASSETS  
GOODWILL AND INTANGIBLE ASSETS

8.  GOODWILL AND INTANGIBLE ASSETS

Goodwill

Changes in the net carrying amount of goodwill for the years ended February 1, 2020 and February 2, 2019 are as follows (in thousands):

    

Total

Balance at February 3, 2018

$

94,305

Goodwill of divested business (see Note 3)

(13,588)

Translation adjustment

 

(1,226)

Balance at February 2, 2019

$

79,491

Translation adjustment

 

(220)

Balance at February 1, 2020

$

79,271

As of February 1, 2020 and February 2, 2019, accumulated goodwill impairment totaled $780.0 million.

Intangible Assets

The gross carrying amount and accumulated amortization of our identifiable intangible assets are as follows (in thousands):

February 1,

    

February 2,

 

 

2020

    

2019

 

Amortizable intangible assets:

Carrying amount:

Trademarks, tradenames and franchise agreements

$

13,506

$

13,506

Favorable leases

11,844

Total carrying amount

 

13,506

 

25,350

Accumulated amortization:

Trademarks, tradenames and franchise agreements

 

(9,863)

 

(9,677)

Favorable leases

(5,162)

Total accumulated amortization

 

(9,863)

 

(14,839)

Total amortizable intangible assets, net

 

3,643

 

10,511

Indefinite-lived intangible assets:

Trademarks and tradename

 

113,200

 

143,200

Total intangible assets, net

$

116,843

$

153,711

The elimination of favorable leases is due to the adoption of ASC 842, effective February 3, 2019.  See Note 17 for additional information.  The decrease in trademarks, tradenames and franchise agreements and the elimination of customer relationships is due to the sale of our corporate apparel business.  See Note 2 for additional information.  In addition, the decrease in indefinite-lived trademarks and tradenames reflects the reclassification of the Joseph Abboud tradename totaling $30.0 million as an asset held for sale in the consolidated balance sheets due to the sale of the Joseph Abboud trademarks which closed on March 4, 2020. See Note 23 for additional information.

Amortization expense associated with intangible assets subject to amortization totaled approximately $0.2 million, $1.6 million and $1.8 million for fiscal 2019, 2018 and 2017, respectively.  Amortization expense associated with intangible assets subject to amortization at February 1, 2020 is estimated to be approximately $0.2 million each year for fiscal years 2020-2024.