INTANGIBLE ASSETS (Notes)

3 Months Ended

May 02, 2020

Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

4. INTANGIBLE ASSETS

The Company acquired certain intellectual property and related assets (the “Gymboree Assets”) of Gymboree Group, Inc. and related entities, which included the worldwide rights to the names “Gymboree” and “Crazy 8” and other intellectual property, including trademarks, domain names, copyrights, and customer databases. These intangible assets, inclusive of acquisition costs, are recorded in the long-term assets section of the consolidated balance sheets.

The Company’s intangible assets includes both indefinite and finite assets. Intangible assets with indefinite lives consist primarily of trademarks and acquired trade names, which are tested for impairment annually or whenever circumstances indicate that a decline in value may have occurred. The Company estimates the fair value of these intangible assets based on an income approach using the relief-from-royalty method. The Company’s finite-lived intangible assets consist primarily of customer lists and other acquisition-related assets. Finite-lived intangible assets are amortized over their estimated useful economic lives and are reviewed for impairment when factors indicate that an impairment may have occurred. The Company recognizes an impairment charge when the estimated fair value of the intangible asset is less than the carrying value.

The Company’s intangible assets were as follows as of May 2, 2020:


		May 2, 2020
	Useful life	Gross amount		Accumulated amortization		Net amount
		(in thousands)
Gymboree tradename⁽¹⁾	Indefinite	$	69,951	$	—	$	69,951
Crazy 8 tradename⁽¹⁾	5 years	4,000		(861)		3,139
Customer databases⁽²⁾	3 years	3,000		(1,077)		1,923
Total intangibles, net		$	76,951	$	(1,938)	$	75,013

⁽¹⁾Included within Tradenames, net in the consolidated balance sheets.

⁽²⁾Included within Other assets in the consolidated balance sheets.