Intangible Assets

9 Months Ended

Nov. 02, 2019

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

Note 4. Intangible Assets

The determination of the fair value of intangible assets 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 consisted 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.

During fiscal 2018, the Company concluded, based on continued operating losses for the etailz segment driven by lower than expected operating results culminating in the fourth quarter of fiscal 2018 that a triggering event had occurred, and an evaluation of intangible assets for impairment was required. Intangible assets related to technology and vendor relationships were written down to their estimated fair value at the end of fiscal 2018 resulting in the recognition of asset impairment charges of $16.4 million.

Identifiable intangible assets as of November 2, 2019 consisted of the following:

	November 2, 2019
(amounts in thousands)	Weighted Average Amortization Period (in months)	Original Gross Carrying Amount		Accumulated Impairment			Accumulated Amortization			Net Carrying Amount
Vendor relationships	120	$	19,100		$	13,822		$	4,485		$	793
Technology	60		6,700			2,587			3,369			744
Trade names and trademarks	60		3,200			—			1,927			1,273
		$	29,000		$	16,409		$	9,781		$	2,810

The changes in net intangibles from February 2, 2019 to November 2, 2019 were as follows:

(amounts in thousands)	February 2, 2019		Impairment Expense			Amortization Expense			November 2, 2019
Amortized intangible assets:
Vendor relationships	$	880		$	—		$	87		$	793
Technology		1,035			—			291			744
Trade names and trademarks		1,753			—			480			1,273
Net amortized intangible assets	$	3,668		$	—		$	858		$	2,810

Amortization expense of intangible assets for the thirteen and thirty-nine weeks ended November 2, 2019 and November 3, 2018 consisted of the following:

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
(amounts in thousands)	November 2,  2019		November 3, 2018		November 2, 2019		November 3, 2018
Amortized intangible assets:
Vendor relationships	$	29	$	477	$	87	$	1,430
Technology		97		335		291		1,005
Trade names and trademarks		160		160		480		480
Total amortization expense	$	286	$	972	$	858	$	2,915

Estimated amortization expense for the remainder of fiscal 2019 and the five succeeding fiscal years and thereafter is as follows:

Year	Annual Amortization
(amounts in thousands)
2019	$286
2020	1,143
2021	847
2022	115
2023	115
2024	115
Thereafter	189