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Intangible Assets

12 Months Ended

Jan. 31, 2021

NOTE H — INTANGIBLE ASSETS

Intangible assets consist of:



January 31, 2021	Estimated Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

		(In thousands)
Finite-lived intangible assets
Licenses	14 years	$	19,884	$	(16,959)	$	2,925
Trademarks	8-12 years		2,194		(2,194)		—
Customer relationships	15-17 years		48,430		(17,843)		30,587
Other	5-10 years		8,624		(7,077)		1,547
Total finite-lived intangible assets		$	79,132	$	(44,073)	$	35,059
Indefinite-lived intangible assets
Goodwill							263,135
Trademarks							443,612
Total indefinite-lived intangible assets							706,747
Total intangible assets, net						$	741,806



January 31, 2020	Estimated Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

		(In thousands)
Finite-lived intangible assets
Licenses	14 years	$	19,258	$	(16,107)	$	3,151
Trademarks	8-12 years		2,194		(2,194)		—
Customer relationships	15-17 years		48,214		(14,831)		33,383
Other	5-10 years		7,757		(5,928)		1,829
Total finite-lived intangible assets		$	77,423	$	(39,060)	$	38,363
Indefinite-lived intangible assets
Goodwill							260,622
Trademarks							438,658
Total indefinite-lived intangible assets							699,280
Total intangible assets, net						$	737,643

Amortization expense

Amortization expense with respect to finite-lived intangibles amounted to $4.3 million, $4.5 million and $4.6 million for the years ended January 31, 2021, 2020 and 2019, respectively.

The estimated amortization expense with respect to intangibles for the next five years is as follows:


Year Ending January 31,	Amortization Expense
	(In thousands)
2022	$	3,643
2023		3,301
2024		3,074
2025		3,035
2026		3,028

Intangible assets with finite lives are amortized over their estimated useful lives and measured for impairment when events or circumstances indicate that the carrying value may be impaired.

Change in Goodwill

Changes in the amounts of goodwill for each of the years ended January 31, 2021 and 2020 are summarized by reportable segment as follows (in thousands):


	Wholesale		Retail		Total
January 31, 2019	$	261,137		—		261,137
Currency translation		(515)		—		(515)
January 31, 2020		260,622		—		260,622
Currency translation		2,513		—		2,513
January 31, 2021	$	263,135	$	—	$	263,135

Impairment

Goodwill represents the excess of the purchase price and related costs over the value assigned to net tangible and identifiable intangible assets of businesses acquired and accounted for under the purchase method. The Company reviews and tests its goodwill and intangible assets with indefinite lives for impairment at least annually, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may be impaired. The Company performs its goodwill test as of January 31 of each year using a qualitative evaluation or a quantitative test using an income approach through a discounted cash flow analysis methodology. The discounted cash flow approach requires that certain assumptions and estimates be made regarding industry economic factors and future profitability. The Company also performs its annual test for intangible assets with indefinite lives as of January 31 of each year using a qualitative evaluation or a quantitative test using a relief from royalty method, another form of the income approach. The relief from royalty method requires assumptions regarding industry economic factors and future profitability.

Due to the impact of the COVID-19 pandemic on the Company’s operations, the Company performed a quantitative test of its goodwill as of April 30, 2020 using an income approach through a discounted cash flow analysis methodology. The Company also performed quantitative tests of each of its indefinite-lived intangible assets using a relief from royalty method. There were no impairments identified as of April 30, 2020 as a result of these tests.

The continued impact of the COVID-19 pandemic could give rise to global and regional macroeconomic factors that could impact the Company’s assumptions relating to future net sales, discount rates, tax rates or royalty rates and may result in future impairment charges for indefinite-lived intangible assets.

The fair value of the Company’s goodwill and indefinite-lived intangible assets are considered a Level 3 valuation in the fair value hierarchy.