5. Intangible Assets

Intangible assets consist of the following:


	February 3, 2018					January 28, 2017
(In thousands)	Gross Amount		Accumulated Amortization		Net Book Value	Gross Amount		Accumulated Amortization	Net Book Value
Amortizable trademarks	$	30,861	(19,029)	$	11,832	$	20,535	(18,436)	$	2,099
Amortizable franchise agreements		1,300	(271)		1,029		1,300	(153)		1,147
Indefinite lived trademarks		56,687	—		56,687		102,455	—		102,455
	$	88,848	(19,300)	$	69,548	$	124,290	(18,589)	$	105,701

The transition from the Company's license agreements with Target Corporation and Kohl's Illinois, Inc. in the United States to new licensees has taken longer than previously estimated. (See Note 10 for Significant Contracts and Concentrations of Risk.) As a result, the Company's revenue projections at the end of Fiscal 2018 were significantly lower than its revenue projections at the end of Fiscal 2017, and during its annual impairment testing for Fiscal 2018, the Company determined that projected cash flows for certain indefinite lived trademarks in its Cherokee Global Brands reportable segment indicated that the fair values of these trademarks were not in excess of their carrying values. Accordingly, an impairment charge of $35.5 million was recorded during the fourth quarter of Fiscal 2018 to adjust the impaired trademarks to their estimated fair value of $10.3 million, which is reported as a component of operating expenses in the statement of operations. Fair value was determined using level 3 measurements using the discounted cash flow method (income approach). In conjunction with this impairment assessment, the Company concluded that the competitive and economic environment for the use of these trademarks no longer supported an indefinite life. Accordingly, these trademarks will be amortized prospectively over their estimated remaining useful lives.

The Hi-Tec Acquisition during Fiscal 2017 resulted in trademarks valued at $53.4 million, including $52.4 million that are classified as indefinite lived and not subjected to amortization. In addition, distributor relationships were valued at $0.5 million but were sold in Fiscal 2018, and the amortization thereof is presented in the statements of operations as a component of discontinued operations. The distributor relationships are presented as noncurrent assets of discontinued operations in the balance sheet for Fiscal 2017.

The Company has acquired other trademarks and franchise agreements that are being amortized over their estimated useful lives with no residual values. The weighted-average amortization period for trademarks and franchise agreements was 10.0 and 11.0, respectively, at February 3, 2018. The trademarks are being renewed on a continuing basis.

Amortization of intangible assets was $0.7 million, $0.9 million and $0.9 million for Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. Expected amortization of intangible assets for fiscal years ending in 2019, 2020, 2021, 2022 and 2023 is approximately $1.1 million, $0.9 million, $0.9 million, $0.9 million and $0.8 million, respectively. Trademark registration and renewal costs capitalized during Fiscal 2018 and Fiscal 2017 totaled $0.1 million in both periods.

Goodwill arose from historical acquisitions and the Hi-Tec Acquisition that occurred during Fiscal 2017. Additional goodwill of $0.9 million was recorded during Fiscal 2018 primarily as a result of finalizing the fair values of assets and liabilities acquired during the Hi-Tec Acquisition that were simultaneously sold to third parties. A portion of goodwill was allocated based on fair value to the sales and distribution business that was sold during the fourth quarter of Fiscal 2018. (See Note 2.)