Goodwill and Intangible Assets

9 Months Ended

Oct. 29, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Note 3. Goodwill and Intangible Assets

Net goodwill balances and changes therein by segment were as follows:


(in thousands)	Vince Wholesale		Vince Direct-to-consumer		Rebecca Taylor and Parker		Total Net Goodwill
Balance as of January 29, 2022	$	31,973	$	—	$	—	$	31,973
Balance as of October 29, 2022	$	31,973	$	—	$	—	$	31,973

The total carrying amount of goodwill is net of accumulated impairments of $101,845.

The following tables present a summary of identifiable intangible assets:


(in thousands)	Gross Amount		Accumulated Amortization			Accumulated Impairments			Reclassification to Assets Held for Sale			Net Book Value
Balance as of October 29, 2022
Amortizable intangible assets:
Customer relationships	$	31,355	$	(22,084	)	$	(6,115	)	$	—		$	3,156
Tradenames (1)		22,236		(683	)		(18,663	)		(2,890	)		—
Indefinite-lived intangible assets:
Tradenames		101,850		—			(34,750	)		—			67,100
Total intangible assets	$	155,441	$	(22,767	)	$	(59,528	)	$	(2,890	)	$	70,256

(1) On September 12, 2022, the Company announced its decision to wind down the Rebecca Taylor business. Therefore, the Company determined that the indefinite life classification was no longer appropriate for the Rebecca Taylor tradename and began amortizing the Rebecca Taylor tradename in the third quarter of fiscal 2022. Amortization of the Rebecca Taylor tradename ceased upon classification as held for sale in the third quarter of fiscal 2022. Additionally, during the third quarter of fiscal 2022, the Parker tradename was classified as held for sale and amortization ceased. See Note 2 "Wind Down of Rebecca Taylor Business" for further information.


(in thousands)	Gross Amount		Accumulated Amortization			Accumulated Impairments			Net Book Value
Balance as of January 29, 2022
Amortizable intangible assets:
Customer relationships	$	31,355	$	(21,635	)	$	(6,115	)	$	3,605
Tradenames		13,100		(143	)		(12,527	)		430
Indefinite-lived intangible assets:
Tradenames		110,986		—			(39,186	)		71,800
Total intangible assets	$	155,441	$	(21,778	)	$	(57,828	)	$	75,835

During the second quarter of fiscal 2022, the Company determined that a triggering event had occurred in the Rebecca Taylor and Parker segment as a result of changes to the Company’s long-term projections. The Company performed an interim quantitative impairment assessment of the Rebecca Taylor tradename utilizing the relief from royalty valuation approach. The relief from royalty valuation approach is dependent on a number of factors, including estimates of projected revenues, royalty rates in the category of intellectual property, discount rates and other variables. The Company estimated the fair value of the Rebecca Taylor tradename intangible asset and determined that the fair value of the Rebecca Taylor tradename was below its carrying amount. Accordingly, the Company recorded an impairment charge for the Rebecca Taylor tradename intangible asset of $1,700, which was recorded within Impairment of intangible assets on the condensed consolidated statement of operations and comprehensive income (loss) for the nine months ended October 29, 2022. There was no such impairment charge for the three months ended October 29, 2022 and the three and nine months ended October 30, 2021.

Amortization of identifiable intangible assets was $661 and $989 for the three and nine months ended October 29, 2022, respectively, and $164 and $492 for the three and nine months ended October 30, 2021, respectively. The estimated amortization expense for identifiable intangible assets for the remainder of fiscal 2022 and the next five fiscal years is expected to be as follows:


	Future
(in thousands)	Amortization
2022	$	150
2023		598
2024		598
2025		598
2026		598
2027		598
	$	3,140