Intangible Assets

6 Months Ended

Jul. 31, 2022

Intangible Assets [Abstract]

Intangible Assets

Note 7 – Intangible Assets

Intangible assets consist of:

July 31, 2022	Estimated Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
		(In thousands)
Finite-lived intangible assets
Licenses	14 years	$	18,802	$	(16,978)	$	1,824
Trademarks	8-12 years		2,194		(2,194)		—
Customer relationships	15-17 years		52,341		(21,354)		30,987
Other	5-10 years		7,080		(4,464)		2,616
Total finite-lived intangible assets		$	80,417	$	(44,990)	$	35,427
Indefinite-lived intangible assets
Goodwill							304,930
Trademarks							622,182
Total indefinite-lived intangible assets							927,112
Total intangible assets, net						$	962,539

July 31, 2021	Estimated Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
		(In thousands)
Finite-lived intangible assets
Licenses	14 years	$	19,653	$	(17,074)	$	2,579
Trademarks	8-12 years		2,194		(2,194)		—
Customer relationships	15-17 years		48,351		(19,049)		29,302
Other	5-10 years		8,598		(7,343)		1,255
Total finite-lived intangible assets		$	78,796	$	(45,660)	$	33,136
Indefinite-lived intangible assets
Goodwill							262,372
Trademarks							441,788
Total indefinite-lived intangible assets							704,160
Total intangible assets, net						$	737,296

January 31, 2022	Estimated Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
		(In thousands)
Finite-lived intangible assets
Licenses	14 years	$	19,334	$	(17,113)	$	2,221
Trademarks	8-12 years		2,194		(2,194)		—
Customer relationships	15-17 years		48,240		(20,224)		28,016
Other	5-10 years		8,534		(7,410)		1,124
Total finite-lived intangible assets		$	78,302	$	(46,941)	$	31,361
Indefinite-lived intangible assets
Goodwill							262,527
Trademarks							453,329
Total indefinite-lived intangible assets							715,856
Total intangible assets, net						$	747,217

Amortization expense

Amortization expense with respect to finite-lived intangibles amounted to $0.9 million and $1.8 million for the three and six months ended July 31, 2022, respectively. Amortization expense with respect to finite-lived intangibles amounted to $1.0 million and $1.9 million for the three and six months ended July 31, 2021, respectively. Amortization expense with respect to finite-lived intangibles amounted to $3.7 million for the year ended January 31, 2022.

The estimated amortization expense with respect to intangibles for the next five years is as follows:

Year Ending January 31,	Amortization Expense
	(In thousands)
2023	$	2,076
2024		3,976
2025		3,927
2026		3,828
2027		3,556

Intangible assets with finite lives are amortized over their estimated useful lives and measured for impairment when events or circumstances indicate that the carrying value may be impaired.

Change in Goodwill

Changes in the amounts of goodwill for the six months ended July 31, 2022 and the year ended January 31, 2022 are summarized by reportable segment as follows (in thousands):

	Wholesale		Retail		Total
January 31, 2021	$	263,135		—	$	263,135
Acquisition of Sonia Rykiel		1,518		—		1,518
Currency translation		(2,126)		—		(2,126)
January 31, 2022		262,527		—		262,527
Acquisition of Karl Lagerfeld		46,113		—		46,113
Currency translation		(3,710)		—		(3,710)
July 31, 2022	$	304,930	$	—	$	304,930

Impairment

Goodwill represents the excess of the purchase price and related costs over the value assigned to net tangible and identifiable intangible assets of businesses acquired and accounted for under the purchase method. The Company reviews and tests its goodwill and intangible assets with indefinite lives for impairment at least annually, or more frequently if

events or changes in circumstances indicate that the carrying amount of such assets may be impaired. The Company performs its goodwill test as of January 31 of each year using a qualitative evaluation or a quantitative test using an income approach through a discounted cash flow analysis methodology. The discounted cash flow approach requires that certain assumptions and estimates be made regarding industry economic factors and future profitability. The Company also performs its annual test for intangible assets with indefinite lives as of January 31 of each year using a qualitative evaluation or a quantitative test using a relief from royalty method, another form of the income approach. The relief from royalty method requires assumptions regarding industry economic factors and future profitability.

The Company performed its annual tests of its wholesale reporting unit and its indefinite-lived trademarks as of January 31, 2022 and determined that no impairment existed at that date. The result of the Company’s annual test determined that the estimated fair value of its wholesale reporting unit and its indefinite-lived trademarks were substantially in excess of their carrying values.

The Company’s indefinite-lived trademark balance is primarily composed of the Donna Karan/DKNY trademark that was acquired in fiscal 2017 and the Karl Lagerfeld trademark that was acquired in fiscal 2023.

The fair value of the Company’s goodwill and indefinite-lived intangible assets are considered a Level 3 valuation in the fair value hierarchy.