Goodwill and Other Intangible Assets

3 Months Ended

May 05, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 4. Goodwill and Other Intangible Assets

Our goodwill results from our acquisition of etailz and represents the excess purchase price over the net identifiable assets acquired. All of our goodwill is associated with etailz, a separate reporting unit, and there is no goodwill associated with our other reporting unit, fye. Goodwill is not amortized and we are required to evaluate our goodwill for impairment at least annually or whenever indicators of impairment are present. Our annual test is completed during the fourth fiscal quarter, and interim tests are conducted when circumstances indicate the carrying value of the goodwill or other intangible assets may not be recoverable. 

Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is possible that these judgments and estimates could change in future periods.

The determination of the fair value of intangible assets and liabilities acquired in a business acquisition, including the Company’s acquisition of etailz in 2016, is subject to many estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology and tradenames. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.

Identifiable intangible assets as of May 5, 2018 consisted of the following ($ in thousands):

	May 5, 2018
	Weighted Average Amortization Period (in months)		Original Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Vendor relationships		120	$	19,100	$	2,965	$	16,135
Technology		60		6,700		2,073		4,627
Trade names and trademarks		60		3,200		967		2,233
			$	29,000	$	6,005	$	22,995

The changes in net intangibles and goodwill from February 3, 2018 to May 5, 2018 were as follows:

($ in thousands)	February 3, 2018		Amortization		May 5, 2018
Amortized intangible assets:
Vendor relationships	$	16,612	$	477	$	16,135
Technology		4,962		335		4,627
Trade names and trademarks		2,393		160		2,233
Net amortized intangible assets	$	23,967	$	972	$	22,995
Unamortized intangible assets:
Goodwill	$	39,191	$	—	$	39,191
Total unamortized intangible assets	$	39,191	$	—	$	39,191

Amortization expense of intangible assets for the thirteen weeks ended May 5, 2018 and April 29, 2017 consisted of the following:

	Thirteen Weeks Ended
($ in thousands)	May 5, 2018		April 29, 2017
Amortized intangible assets:
Vendor relationships	$	477	$	477
Technology		335		335
Trade names and trademarks		160		160
Total amortization expense	$	972	$	972

Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:

Year	Annual Amortization
( $ in thousands)
2018	$	2,918
2019		3,890
2020		3,890
2021		3,325
2022		1,910
2023		1,910
Thereafter		5,152