Intangible Assets and Goodwill

12 Months Ended

Feb. 03, 2024

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Note 5. Intangible Assets and Goodwill

Intangible assets by category are summarized below (in thousands):

	February 3,		January 28,
	2024		2023
Intangible assets with finite lives	$	113,413	$	108,513
Accumulated amortization and impairment		(64,812)		(50,068)
Total intangible assets with finite lives, net		48,601		58,445
Intangible assets with indefinite lives:
Tommy Bahama Trademark	$	110,700	$	110,700
Lilly Pulitzer Trademark		27,500		27,500
Johnny Was Trademark		66,000		77,900
Southern Tide Trademark		9,300		9,300
Total intangible assets with indefinite lives	$	213,500	$	225,400
Total intangible assets, net	$	262,101	$	283,845

Intangible assets, by operating group and in total, for Fiscal 2021, Fiscal 2022 and Fiscal 2023 are as follows (in thousands):

	Tommy		Lilly		Johnny		Emerging		Lanier		Corporate
	Bahama		Pulitzer		Was		Brands		Apparel		and Other		Total
Balance, January 30, 2021	$	110,700	$	28,317	$	—	$	17,170	$	—	$	—	$	156,187
Acquisition		—		—		—		—		—		—		—
Impairment		—		—		—		—		—		—		—
Amortization		—		(220)		—		(660)		—		—		(880)
Balance, January 29, 2022	$	110,700	$	28,097	$	—	$	16,510	$	—	$	—	$	155,307
Acquisition		—		—		134,640		—		—		—		134,640
Impairment		—		—		—		—		—		—		—
Amortization		—		(238)		(5,194)		(670)		—		—		(6,102)
Balance, January 28, 2023	$	110,700	$	27,859	$	129,446	$	15,840	$	—	$	—	$	283,845
Acquisition		—		—		—		4,899		—		—		4,899
Impairment		—		—		(11,900)		—		—		—		(11,900)
Amortization		—		(227)		(13,852)		(664)		—		—		(14,743)
Balance, February 3, 2024	$	110,700	$	27,632	$	103,694	$	20,075	$	—	$	—	$	262,101

Based on the current estimated useful lives assigned to our intangible assets, amortization expense for each of the next five years is expected to be $12 million, $9 million, $6 million, $5 million and $4 million.

Goodwill, by operating group and in total, for Fiscal 2021, Fiscal 2022 and Fiscal 2023 is as follows (in thousands):

	Tommy		Lilly		Johnny		Emerging		Corporate
	Bahama		Pulitzer		Was		Brands		and Other		Total
Balance, January 30, 2021	$	788	$	19,522	$	—	$	3,600	$	—	$	23,910
Other, including foreign currency		(41)		—		—		—		—		(41)
Balance January 29, 2022	$	747	$	19,522	$	—	$	3,600	$	—	$	23,869
Acquisition		—		—		96,637		—		—		96,637
Other, including foreign currency		(8)		—		—		—		—		(8)
Balance, January 28, 2023	$	739	$	19,522	$	96,637	$	3,600	$	—	$	120,498
Acquisition		—		—		—		3,371		—		3,371
Measurement-period adjustments		—		—		2,599		—		—		2,599
Impairment		—		—		(99,236)		—		—		(99,236)
Other, including foreign currency		(42)		—		—		—		—		(42)
Balance, February 3, 2024	$	697	$	19,522	$	—	$	6,971	$	—	$	27,190

Goodwill and Other Intangible Assets Impairment Testing

We assess the recoverability of goodwill and other indefinite-lived intangible assets annually, at the beginning of the fourth quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. Intangible assets with finite lives are amortized over their estimated useful life and are tested for impairment, along with other long-lived assets, when events and circumstances indicate that the assets might be impaired. Please see Note 1, “Summary of Significant Accounting Policies,” for discussion of the Company’s goodwill and intangible assets impairment testing process.  

Based on our annual quantitative assessment as of October 29, 2023, and in conjunction with our fourth quarter annual forecasting process for 2024 which impacts key assumptions used in our impairment assessments, it was determined that the Johnny Was reporting unit and intangible assets with an indefinite life were impaired. The impairment charges for Johnny Was reflect the current challenging macroeconomic environment that has resulted in a more cautious consumer and an increase in interest rates. The more cautious consumer has both negatively impacted Johnny Was’ wholesale customers and direct to consumer operations resulting in Johnny Was not performing as originally projected in Fiscal 2023 and the moderation of forecasted revenue and operating income in future years. Interest rates also increased significantly after the acquisition of Johnny Was in September 2022 leading to an increase in discount rates used in our impairment analyses. We recorded $111 million of noncash impairment charges during the fourth quarter of Fiscal 2023, including a goodwill impairment of $99 million and an intangible asset impairment of $12 million, which were included in Impairment of goodwill, intangible assets and equity method investments in our Consolidated Statements of Operations.