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GOODWILL AND INTANGIBLE ASSETS
12 Months Ended
Jan. 30, 2021
GOODWILL AND INTANGIBLE ASSETS  
GOODWILL AND INTANGIBLE ASSETS

11.   GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets were as follows:

($ thousands)

January 30, 2021

    

February 1, 2020

Intangible Assets

  

 

  

Famous Footwear

$

2,800

$

2,800

Brand Portfolio

 

342,083

 

388,288

Total intangible assets

 

344,883

 

391,088

Accumulated amortization

 

(109,768)

 

(96,784)

Total intangible assets, net

 

235,115

 

294,304

Goodwill

 

  

 

  

Brand Portfolio

 

4,956

 

245,275

Total goodwill

 

4,956

 

245,275

Goodwill and intangible assets, net

$

240,071

$

539,579

The Company’s intangible assets as of January 30, 2021 and February 1, 2020 were as follows:

($ thousands)

    

January 30, 2021

 

Estimated Useful Lives

 

 

Accumulated 

 

 

(In Years)

Cost Basis (1)

Amortization

Impairment

Net Carrying Value

Trade names

 

2 - 40

$

299,488

$

101,919

$

10,200

$

187,369

Trade names

 

Indefinite

 

47,400

 

 

32,000

 

15,400

Customer relationships

    

15 - 16

    

 

44,200

    

 

7,849

    

 

4,005

    

 

32,346

$

391,088

$

109,768

$

46,205

$

235,115

    

February 1, 2020

Estimated Useful Lives 

Accumulated 

    

(In Years)

    

Cost Basis

    

Amortization

    

Impairment

    

Net Carrying Value

Trade names

15 - 40

$

288,788

$

91,827

$

$

196,961

Trade names

 

Indefinite

 

58,100

 (2)

 

 

58,100

Customer relationships

 

15 - 16

 

44,200

 

4,957

 

 

39,243

$

391,088

$

96,784

$

$

294,304

(1)The Via Spiga trade name was reclassified from indefinite-lived trade names to definite-lived trade names.  The remaining carrying value of $0.5 million is being amortized over two years.
(2)Cost basis has been reduced by $60.0 million in impairment charges recognized in 2018 related to the Allen Edmonds trade name.

Amortization expense related to intangible assets was $13.0 million in 2020, $13.1 million in 2019 and $7.0 million in 2018. The Company estimates $12.6 million of amortization expense related to intangible assets in 2021, $12.1 million in 2022, $11.9 million in 2023, and $11.0 million in 2024 and 2025.

Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired, using either the qualitative assessment or a quantitative fair value-based test.  During the first quarter of 2020, as a result of the significant decline in the Company’s share price and market capitalization and the impact of the COVID-19 pandemic on the Company’s business operations, the Company determined that an interim assessment of goodwill was required.  A quantitative assessment was performed for all reporting units as of May 2, 2020.  The assessment indicated that the carrying value of the goodwill associated with the Brand Portfolio and Vionic reporting units was impaired, resulting in total goodwill impairment charges of $240.3 million.  In addition to the interim assessment, the Company performed an impairment review of the remaining goodwill balance, which is associated with the Blowfish Malibu reporting unit, as of the first day of the fourth fiscal quarter.  That review indicated no impairment.  During 2019 and 2018, the goodwill impairment testing was performed as of the first day of the fourth fiscal quarter, which resulted in no impairment charges in 2019 and $38.0 million of impairment charges in 2018 associated with goodwill of the Allen Edmonds reporting unit.

Indefinite-lived intangible assets are tested for impairment as of the first day of the fourth quarter of each fiscal year unless events or circumstances indicate an interim test is required.  As a result of the triggering event from the economic impacts of COVID-19, an interim assessment was performed as of May 2, 2020.  The indefinite-lived trade name impairment review resulted in total impairment charges of $22.4 million for the thirteen weeks ended May 2, 2020, including $12.2 million associated with the indefinite-lived Allen Edmonds trade name and $10.2 million of impairment associated with the indefinite-lived Via Spiga trade name.  The remaining carrying value of the Via Spiga trade name of $0.5 million is being amortized over approximately two years.  In addition to the interim assessment, the Company tested the indefinite-lived intangible assets as of the first day of the fourth fiscal quarter.  As a result of the impairment indicator for Allen Edmonds, the Company also tested the definite-lived Allen Edmonds customer relationships intangible asset.  Those reviews resulted in additional impairment totaling $23.8 million, consisting of $19.8 million associated with the Allen Edmonds trade name and $4.0 million associated with the Allen Edmonds customer relationships intangible asset. The Company did not record any impairment charges during 2019.  During 2018, an impairment charge of $60.0 million was recorded for impairment of the Allen Edmonds indefinite-lived trade name.   Total intangible asset impairment charges of $46.2 million and $60.0 million in 2020 and 2018, respectively, are reflected within the Brand Portfolio segment.