GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Oct. 31, 2020

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Note 8    Goodwill and Intangible Assets

Goodwill and intangible assets were as follows:

($thousands)	October 31, 2020		November 2, 2019		February 1, 2020
Intangible Assets
Famous Footwear	$	2,800	$	2,800	$	2,800
Brand Portfolio		365,888		388,288		388,288
Total intangible assets		368,688		391,088		391,088
Accumulated amortization		(106,570)		(93,518)		(96,784)
Total intangible assets, net		262,118		297,570		294,304
Goodwill
Brand Portfolio		4,956		245,275		245,275
Total goodwill		4,956		245,275		245,275
Goodwill and intangible assets, net	$	267,074	$	542,845	$	539,579

The Company’s intangible assets as of October 31, 2020, November 2, 2019 and February 1, 2020 were as follows:

($thousands)	October 31, 2020
	Estimated Useful Lives				Accumulated
	(In Years)	Cost Basis			Amortization		Impairment		Net Carrying Value
Trademarks	15 - 40	$	288,788		$	99,376	$	—	$	189,412
Trademarks	Indefinite		58,100	(1)		—		22,400		35,700
Customer relationships	15 - 16		44,200			7,194		—		37,006
		$	391,088		$	106,570	$	22,400	$	262,118
	November 2, 2019
	Estimated Useful Lives				Accumulated
	(In Years)	Cost Basis			Amortization		Impairment		Net Carrying Value
Trademarks	15 - 40	$	288,788		$	89,360	$	—	$	199,428
Trademarks	Indefinite		58,100	(1)		—		—		58,100
Customer relationships	15 - 16		44,200			4,158		—		40,042
		$	391,088		$	93,518	$	—	$	297,570
	February 1, 2020
	Estimated Useful Lives				Accumulated
	(In Years)	Cost Basis			Amortization		Impairment		Net Carrying Value
Trademarks	15 - 40	$	288,788		$	91,827	$	—	$	196,961
Trademarks	Indefinite		58,100	(1)		—		—		58,100
Customer relationships	15 - 16		44,200			4,957		—		39,243
		$	391,088		$	96,784	$	—	$	294,304

(1) Cost basis for indefinite-lived trademarks has been reduced by $60.0 million in impairment charges recognized in 2018 related to the Allen Edmonds tradename.

Amortization expense related to intangible assets was $3.3 million for both the thirteen weeks ended October 31, 2020 and November 2, 2019 and $9.8 million for both the thirty-nine weeks ended October 31, 2020 and November 2, 2019. The Company estimates that amortization expense related to intangible assets will be approximately $13.1 million in 2020, $12.9 million in 2021, $12.5 million in 2022, $12.2 million in 2023 and $11.4 million in 2024.

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 COVID-19 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. The Company recorded no goodwill impairment charges during the thirteen weeks ended October 31, 2020 or the thirty-nine weeks ended November 2, 2019.

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 intangible asset 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 trademark and $10.2 million of impairment associated with the indefinite-lived Via Spiga trademark. The carrying value of the Via Spiga trademark of $0.5 million will be amortized over approximately two years. The Company recorded no impairment charges during the thirteen weeks ended October 31, 2020 or the thirty-nine weeks ended November 2, 2019.