Goodwill, Other Intangible Assets and Sale of Business

Goodwill

The changes in the carrying amount of goodwill by segment were as follows:



(In Thousands)	Schuh Group			Journeys Group		Total Goodwill
Balance, February 3, 2018	$89,915			$10,393		$	100,308
Effect of foreign currency exchange rates	(6,672		)	(555	)	$	(7,227	)
Balance, February 2, 2019	$	83,243		9,838		$	93,081

As required under ASC 350, the Company annually assesses its goodwill and indefinite lived trade names for impairment and on an interim basis if indicators of impairment are present. The Company’s annual assessment date of goodwill and indefinite lived trade names is the first day of the fourth quarter.

During the fourth quarter of Fiscal 2019, because the Schuh Group business has continued to perform below the Company's projected operating results, the Company performed impairment testing as of February 2, 2019. The Company found that the result of the impairment test, which valued the business at approximately $10.8 million in excess of its carrying value, indicated no impairment at that time. The Company may determine in connection with future impairment tests that some or all of the carrying value of the goodwill may be impaired. Such a finding would require a write-off of the amount of the carrying value that is impaired, which would reduce the Company's profitability in the period of the impairment charge. Holding all other assumptions constant as of the measurement date, the Company noted that an increase in the weighted average cost of capital of 100 basis points would reduce the fair value of the Schuh Group business by $11.4 million. Furthermore, the Company noted that a decrease in projected annual revenue growth by one percent would reduce the fair value of the Schuh Group business by $7.4 million. However, if other assumptions do not remain constant, the fair value of the Schuh Group business may decrease by a greater amount.

Note 2

Goodwill, Intangible Assets and Sale of Business, Continued

Other Intangible Assets

Other intangibles by major classes were as follows:



	Leases						Customer Lists						Other⁽¹⁾						Total
In thousands	Feb. 2, 2019			Feb. 3, 2018			Feb. 2, 2019			Feb. 3, 2018			Feb. 2, 2019			Feb. 3, 2018			Feb. 2, 2019			Feb. 3, 2018
Gross other intangibles	$	3,532		$	3,780		$	1,450		$	1,564		$	641		$	692		$	5,623		$	6,036
Accumulated amortization	(2,916		)	(2,865		)	(1,450		)	(1,564		)	(314		)	(267		)	(4,680		)	(4,696		)
Net Other Intangibles	$	616		$	915		$	—		$	—		$	327		$	425		$	943		$	1,340

⁽¹⁾Includes vendor contract.

The amortization of intangibles was less than $0.1 million for Fiscal 2019 and 2018 and $0.1 million for Fiscal 2017. The amortization of intangibles will be less than $0.1 million for the next five years.

Sale of Business

On December 25, 2016, the Company completed the sale of all the stock of the Company's subsidiary, Keuka Footwear, Inc., which operated the SureGrip occupational, slip-resistant footwear business within the Licensed Brands Group, to Shoes for Crews, LLC. The Company recognized a gain on the sale, in Fiscal 2017, of $(12.3) million, net of transaction-related expenses before tax.

The sale of SureGrip Footwear was not a strategic shift that would have a major effect on operations and financial results, and therefore the business was not presented as discontinued operations in the Company's Consolidated Financial Statements.