Intangible Assets

9 Months Ended

Oct. 31, 2022

Intangible Assets [Abstract]

Intangible Assets

Note 7 – Intangible Assets

Intangible assets consist of:

October 31, 2022	Estimated Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
		(In thousands)
Finite-lived intangible assets
Licenses	14 years	$	18,414	$	(16,808)	$	1,606
Trademarks	8-12 years		2,194		(2,194)		—
Customer relationships	15-17 years		51,847		(21,973)		29,874
Other	5-10 years		7,444		(4,339)		3,105
Total finite-lived intangible assets		$	79,899	$	(45,314)	$	34,585
Indefinite-lived intangible assets
Goodwill							303,668
Trademarks							607,526
Total indefinite-lived intangible assets							911,194
Total intangible assets, net						$	945,779

October 31, 2021	Estimated Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
		(In thousands)
Finite-lived intangible assets
Licenses	14 years	$	19,481	$	(17,088)	$	2,393
Trademarks	8-12 years		2,194		(2,194)		—
Customer relationships	15-17 years		48,291		(19,632)		28,659
Other	5-10 years		8,526		(7,370)		1,156
Total finite-lived intangible assets		$	78,492	$	(46,284)	$	32,208
Indefinite-lived intangible assets
Goodwill							265,116
Trademarks							450,252
Total indefinite-lived intangible assets							715,368
Total intangible assets, net						$	747,576

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 $1.0 million and $2.7 million for the three and nine months ended October 31, 2022, respectively. Amortization expense with respect to finite-lived intangibles amounted to $0.9 million and $2.8 million for the three and nine months ended October 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 to be recorded for the next five years is as follows:

Year Ending January 31,	Amortization Expense
	(In thousands)
2023	$	1,275
2024		3,921
2025		3,869
2026		3,811
2027		3,579

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 nine months ended October 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		45,894		—		45,894
Acquisition of other foreign business		3,523		—		3,523
Currency translation		(8,276)		—		(8,276)
October 31, 2022	$	303,668	$	—	$	303,668

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.