GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jan. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

The Company's goodwill of $231.5 million as of January 31, 2022 and July 31, 2021, respectively, relates to the Company's Direct Marketing reporting unit, which is the only reporting unit in the Direct Marketing reportable segment. See Note 1 for more details regarding the disposition of IWCO Direct subsequent to which the Company will no longer have any goodwill or amortizable intangible assets. The carrying value of goodwill is not amortized, but is tested for impairment annually as of June 30, and, additionally on an interim basis, whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

During mid-January 2022, the Company determined it would not be possible to extend or refinance the Cerberus Credit Facility and that this was an indicator of impairment of its goodwill, other intangible assets and long-lived assets for the Direct Marketing business. As a result, the Company performed an interim impairment test of IWCO Direct’s goodwill and other long-lived assets as of January 31, 2022. Based upon the terms of the Termination Agreement with Cerberus and considering prior fair values determined for the IWCO Direct reporting unit, the Company determined that the goodwill and other long-lived assets were not impaired during the three months ended January 31, 2022.

Other intangible assets, net, as of January 31, 2022, include customer relationships for the Direct Marketing segment. The trademarks and tradenames intangible assets were fully amortized as of January 31, 2021.

A summary of other intangible assets, net are reflected in the table below:

		January 31, 2022						July 31, 2021
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(In thousands)
Customer relationships	15	$	192,730	$	85,810	$	106,920	$	192,730	$	77,725	$	115,005
Trademarks and tradenames	3	20,520		20,520		—		20,520		20,520		—
Total		$	213,250	$	106,330	$	106,920	$	213,250	$	98,245	$	115,005

The table below presents amortization expense recorded by the Company for other intangible assets:

	Three Months Ended January 31,				Six Months Ended January 31,
	2022		2021		2022		2021
	(In thousands)
Customer relationships	$	3,903	$	4,504	$	8,085	$	9,329
Trademarks and trade names	—		855		—		2,565
Total	$	3,903	$	5,359	$	8,085	$	11,894