Intangible Assets

6 Months Ended

Aug. 03, 2019

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

Note 4. Intangible Assets

The determination of the fair value of intangible assets acquired in a business acquisition, including the Company’s acquisition of etailz in 2016, is subject to many estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology and tradenames. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.

During fiscal 2018, the Company concluded, based on continued operating losses for the etailz segment driven by lower than expected operating results culminating in the fourth quarter of fiscal 2018 that a triggering event had occurred, and an evaluation of intangible assets for impairment was required. Intangible assets related to technology and vendor relationships were written down to their estimated fair value at the end of fiscal 2018 resulting in the recognition of asset impairment charges of $16.4 million.

Identifiable intangible assets as of August 3, 2019 consisted of the following:

	August 3, 2019
(amounts in thousands)	Weighted Average Amortization Period (in months)	Original Gross Carrying Amount		Accumulated Impairment		Accumulated Amortization		Net Carrying Amount
Vendor relationships	120	$	19,100	$	13,822	$	4,456	$	822
Technology	60		6,700		2,587		3,272		841
Trade names and trademarks	60		3,200		—		1,767		1,433
		$	29,000	$	16,409	$	9,495	$	3,096

The changes in net intangibles from February 2, 2019 to August 3, 2019 were as follows:

(amounts in thousands)	February 2, 2019		Impairment Expense		Amortization Expense		August 3, 2019
Amortized intangible assets:
Vendor relationships	$	880	$	—	$	58	$	822
Technology		1,035		—		194		841
Trade names and trademarks		1,753		—		320		1,433
Net amortized intangible assets	$	3,668	$	—	$	572	$	3,096

Amortization expense of intangible assets for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 consisted of the following:

	Thirteen Weeks Ended				Twenty-six Weeks Ended
(amounts in thousands)	August 3, 2019		August 4, 2018		August 3, 2019		August 4, 2018
Amortized intangible assets:
Vendor relationships	$	29	$	477	$	58	$	954
Technology		97		335		194		670
Trade names and trademarks		160		160		320		320
Total amortization expense	$	286	$	972	$	572	$	1,944

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Estimated amortization expense for the remainder of fiscal 2019 and the five succeeding fiscal years and thereafter is as follows:

Year	Annual Amortization
(amounts in thousands)
2019	$	572
2020		1,143
2021		847
2022		115
2023		115
2024		115
Thereafter		189