GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Apr. 29, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill relates to the acquisition of Dell by Dell Technologies and represents the excess of the purchase price attributable to Secureworks over the fair value of the assets acquired and liabilities assumed, as well as subsequent business combinations completed by the Company. Goodwill decreased $49 thousand due to foreign currency translation for the three months ended April 29, 2022, compared to January 28, 2022. Goodwill totaled $425.9 million as of April 29, 2022 and $425.9 million as of January 28, 2022.

Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis during the third fiscal quarter of each fiscal year, or earlier if an indicator of impairment occurs. The Company completed the most recent annual impairment test in the third quarter of fiscal 2022 by performing a “Step 0” qualitative assessment of goodwill at the reporting unit level, as well as the Company’s indefinite-lived trade name asset at the individual asset level. The Company has one reporting unit. The qualitative assessment includes the Company’s consideration of the relevant events and circumstances that would affect the Company’s single reporting unit and indefinite-lived assets, including macroeconomic, industry and market conditions, the Company’s overall financial performance, and trends in the market price of the Company’s Class A common stock. After assessing the totality of these events and circumstances, the Company determined it was not more-likely-than not that the fair value of the reporting unit and indefinite-lived intangible asset was less than their respective carrying values as of the annual impairment date. Further, no triggering events have transpired since the performance of the qualitative assessment that would indicate a potential impairment occurred during the period through April 29, 2022.

Intangible Assets

The Company's intangible assets as of April 29, 2022 and January 28, 2022 were as follows:


	April 29, 2022						January 28, 2022
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(in thousands)
Customer relationships	$	189,518	$	(122,959)	$	66,559	$	189,518	$	(119,435)	$	70,083
Acquired Technology	141,784		(117,606)		24,178		141,784		(113,937)		27,847
Developed Technology	9,824		(3,036)		6,788		8,123		(2,439)		5,684
Finite-lived intangible assets	341,126		(243,601)		97,525		339,425		(235,811)		103,614
Trade name	30,118		—		30,118		30,118		—		30,118
Total intangible assets	$	371,244	$	(243,601)	$	127,643	$	369,543	$	(235,811)	$	133,732

Amortization expense related to finite-lived intangible assets was approximately $7.8 million and $7.3 million for each of the three months ended April 29, 2022 and April 30, 2021, respectively. Amortization expense is included within cost of revenue and general and administrative expense in the Condensed Consolidated Statements of Operations. There were no impairment charges related to intangible assets during the three months ended April 29, 2022 or April 30, 2021.