Goodwill and Other Intangible Assets

9 Months Ended

Nov. 03, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 4. Goodwill and Other Intangible Assets

Our goodwill results from our acquisition of etailz and represents the excess purchase price over the net identifiable assets acquired. All of our goodwill is associated with etailz, a separate reporting unit, and there is no goodwill associated with our other reporting unit, fye. Goodwill is not amortized and we are required to evaluate our goodwill for impairment at least annually or whenever indicators of impairment are present. Our annual test is completed during the fourth fiscal quarter, and interim tests are conducted when circumstances indicate the carrying value of the goodwill or other intangible assets may not be recoverable.

Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is possible that these judgments and estimates could change in future periods.

The determination of the fair value of intangible assets and liabilities acquired in a business acquisition is subject to certain estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology, and trade names and trademarks. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.

Identifiable intangible assets as of November 3, 2018 consisted of the following ($ in thousands):

	Weighted Average Amortization Period (in months)	Original Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Vendor relationships	120	$	19,100	$	3,918	$	15,182
Technology	60		6,700		2,743		3,957
Trade names and trademarks	60		3,200		1,287		1,913
		$	29,000	$	7,948	$	21,052

The changes in net intangibles and goodwill from February 3, 2018 to November 3, 2018 were as follows:

($ in thousands)	February 3, 2018		Amortization		November 3, 2018
Amortized intangible assets:
Vendor relationships	$	16,612	$	1,430	$	15,182
Technology		4,962		1,005		3,957
Trade names and trademarks		2,393		480		1,913
Net amortized intangible assets	$	23,967	$	2,915	$	21,052
Unamortized intangible assets:
Goodwill	$	39,191	$	-	$	39,191
Total unamortized intangible assets	$	39,191	$	-	$	39,191

Amortization expense of intangible assets for the thirteen and thirty-nine weeks ended November 3, 2018 and October 28, 2017 consisted of the following:

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
($ in thousands)	November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
Amortized intangible assets:
Vendor relationships	$	477	$	478	$	1,430	$	1,432
Technology		335		335		1,005		1,005
Trade names and trademarks		160		160		480		480
Total amortization expense	$	972	$	973	$	2,915	$	2,917

Estimated amortization expense for the remainder of fiscal 2018 and the five succeeding fiscal years and thereafter is as follows:

Year	Annual Amortization
( $ in thousands)
2018	$972
2019	3,890
2020	3,890
2021	3,325
2022	1,910
2023	1,910
Thereafter	5,155