Goodwill and Intangible Assets

6 Months Ended

Jul. 29, 2023

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 8    Goodwill and Intangible Assets

Goodwill and intangible assets were as follows:

($ thousands)	July 29, 2023		July 30, 2022		January 28, 2023
Intangible Assets
Famous Footwear	$	2,800	$	2,800	$	2,800
Brand Portfolio (1)		342,083		342,083		342,083
Total intangible assets		344,883		344,883		344,883
Accumulated amortization		(140,525)		(128,392)		(134,447)
Total intangible assets, net		204,358		216,491		210,436
Goodwill
Brand Portfolio (2)		4,956		4,956		4,956
Total goodwill		4,956		4,956		4,956
Goodwill and intangible assets, net	$	209,314	$	221,447	$	215,392

(1) The carrying amount of intangible assets as of July 29, 2023, July 30, 2022, and January 28, 2023, is presented net of accumulated impairment charges of $106.2 million.

(2) The carrying amount of goodwill as of July 29, 2023, July 30, 2022, and January 28, 2023, is presented net of accumulated impairment charges of $415.7 million.

The Company’s intangible assets as of July 29, 2023, July 30, 2022 and January 28, 2023 were as follows:

($ thousands)	July 29, 2023
	Estimated Useful Lives			Accumulated		Accumulated
	(In Years)	Cost Basis		Amortization		Impairment		Net Carrying Value
Trade names	2 - 40	$	299,488	$	126,174	$	10,200	$	163,114
Trade names	Indefinite		107,400		—		92,000		15,400
Customer relationships	15 - 16		44,200		14,351		4,005		25,844
		$	451,088	$	140,525	$	106,205	$	204,358
	July 30, 2022
	Estimated Useful Lives			Accumulated		Accumulated
	(In Years)	Cost Basis		Amortization		Impairment		Net Carrying Value
Trade names	2 - 40	$	299,488	$	116,995	$	10,200	$	172,293
Trade names	Indefinite		107,400		—		92,000		15,400
Customer relationships	15 - 16		44,200		11,397		4,005		28,798
		$	451,088	$	128,392	$	106,205	$	216,491
	January 28, 2023
	Estimated Useful Lives			Accumulated		Accumulated
	(In Years)	Cost Basis		Amortization		Impairment		Net Carrying Value
Trade names	2 - 40	$	299,488	$	121,928	$	10,200	$	167,360
Trade names	Indefinite		107,400		—		92,000		15,400
Customer relationships	15 - 16		44,200		12,519		4,005		27,676
		$	451,088	$	134,447	$	106,205	$	210,436

Amortization expense related to intangible assets was $3.0 million for both the thirteen weeks ended July 29, 2023 and July 30, 2022, respectively, and $6.1 million for both the twenty-six weeks ended July 29, 2023 and July 30, 2022, respectively.  The Company estimates that amortization expense related to intangible assets will be approximately $11.9 million in 2023, $11.0 million in 2024, 2025 and 2026, and $10.9 million in 2027.

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.  The Company recorded no goodwill impairment charges during the twenty-six weeks ended July 29, 2023 or July 30, 2022.

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.  The Company recorded no impairment charges for indefinite-lived intangible assets during the twenty-six weeks ended July 29, 2023 or July 30, 2022.