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Goodwill and Intangible Impairment Charges
 3 Months Ended
May 01, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Impairment Charges GOODWILL AND INTANGIBLE IMPAIRMENT CHARGES
Goodwill and other indefinite-lived intangible assets are assessed for impairment at least annually. We perform our annual impairment test during the fourth quarter, or more frequently when circumstances indicate carrying values may not be recoverable. In assessing the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates, we consider various macroeconomic, industry-specific and Company-specific factors, including: (i) severe adverse industry or economic trends; (ii) significant Company-specific actions; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization.     
During the thirteen weeks ended May 2, 2020 ("last year's first quarter"), the Company experienced a significant decline in its market capitalization and disruptions to its operations as a result of the pandemic. Consequently, the Company reduced its level of forecasted earnings for fiscal 2020 and future periods across all of its brands. In light of the decline in the Company's stock price and market capitalization, the Company concluded that these factors, among other factors, represented impairment indicators which required the Company to test its goodwill and indefinite-lived intangible assets for impairment during last year's first quarter.
The Company performed its valuation of its goodwill and indefinite-lived intangible assets using a quantitative approach as of April 4, 2020 (the "interim test"), which was the last day in the second month of last year's first quarter. The valuation of the Company's goodwill and indefinite-lived intangible assets was determined with the assistance of an independent valuation firm using the income approach (discounted cash flow ("DCF") method) and relief from royalty method, respectively. We applied a 100% weighting to the income approach as we were able to provide detailed forecasts for the foreseeable future to perform a DCF analysis. We did not utilize a market approach in the fair value assessment of the reporting units as the implied EBITDA or sales multiples from the market approach did not yield reasonable fair values given the volatile market conditions at the time of the assessment. Furthermore, the Company’s publicly traded market capitalization was reconciled to the sum of the fair values of the reporting units estimated using the income approach described above. The fair value of our trademark was determined using an approach that values the Company’s cash savings from having a royalty-free license compared to the market rate it would pay for access to use the trademark.
    Changes in key assumptions and the resulting reduction in projected future cash flows included in the interim test resulted in a decrease in the fair values of our Chico's and White House Black Market ("WHBM") reporting units such that their fair values were less than their carrying values. As a result, the Company recognized the following pre-tax goodwill impairment charges during last year's first quarter: a charge of $20.0 million at the Chico's reporting unit and a charge of $60.4 million at the WHBM reporting unit, reducing the carrying value of goodwill to zero for the WHBM reporting unit. In addition, the Company recognized pre-tax impairment charges during last year's first quarter to write down the carrying values of its other indefinite-lived intangible assets to their fair values as follows: $28.0 million of our WHBM trademark and $4.8 million of our Chico's franchise rights. These impairment charges are included in goodwill and intangible impairment charges in the accompanying unaudited condensed consolidated statements of loss.
The Company evaluated the need to perform an interim impairment test for its goodwill and indefinite-lived intangible assets during the thirteen weeks ended May 1, 2021 (the "first quarter"). We considered macroeconomic, industry-specific and Company-specific factors in addition to the estimates and assumptions used in our most recently completed goodwill and indefinite-lived intangible assets analysis. Based on review of both quantitative and qualitative factors, we determined that we currently do not have a triggering event that would require an interim impairment test of goodwill and indefinite-lived intangible assets, and accordingly, we did not record any goodwill and intangible impairment charges during the first quarter.
The following table details the changes in goodwill and other indefinite-lived intangible assets, net:
May 1, 2021
Gross Carrying AmountAccumulated Impairment ChargeNet Carrying Amount
Goodwill:
Chico's reporting unit$36,403 $(20,043)$16,360 
WHBM reporting unit60,371 (60,371)— 
$96,774 $(80,414)$16,360 
Other intangible assets:
WHBM trademark$34,000 $(29,000)$5,000 
Chico's franchise rights4,930 (4,930)— 
$38,930 $(33,930)$5,000 
January 30, 2021
Gross Carrying AmountAccumulated Impairment ChargeNet Carrying Amount
Goodwill:
Chico's Reporting Unit$36,403 $(20,043)$16,360 
WHBM Reporting Unit60,371 (60,371)— 
$96,774 $(80,414)$16,360 
Other intangible assets:
WHBM trademark$34,000 $(29,000)$5,000 
Chico's franchise rights4,930 (4,930)— 
$38,930 $(33,930)$5,000 
May 2, 2020
Gross Carrying AmountAccumulated Impairment ChargeNet Carrying Amount
Goodwill:
Chico's Reporting Unit$36,403 $(20,043)$16,360 
WHBM Reporting Unit60,371 (60,371)— 
$96,774 $(80,414)$16,360 
Other intangible assets:
WHBM trademark$34,000 $(28,000)$6,000 
Chico's franchise rights4,930 (4,766)164 
$38,930 $(32,766)$6,164