Goodwill

12 Months Ended

Jan. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill activity is summarized by business segment as follows (in thousands):


	Americas Retail		Americas Wholesale		Europe		Asia		Total
Goodwill balance at February 2, 2019	$	1,731	$	9,966	$	23,862	$	1,513	$	37,072
Adjustments:
Impairment	—		—		—		(1,474)		(1,474)
Translation and other adjustments	(6)		(1)		(775)		(39)		(821)
Goodwill balance at February 1, 2020	1,725		9,965		23,087		—		34,777
Adjustments:



Translation and other adjustments	22		4		1,933		—		1,959
Goodwill balance at January 30, 2021	$	1,747	$	9,969	$	25,020	$	—	$	36,736

Based on the results of the Company’s goodwill impairment testing, the Company recorded an asset impairment charge of $1.5 million to fully write off goodwill associated with its China retail reporting unit during fiscal 2020. The Company had $1.5 million accumulated impairment related to goodwill as of January 30, 2021 and February 1, 2020.

The COVID-19 pandemic has materially impacted the Company’s financial results during fiscal 2021 as discussed further in Note 1. As a result of these conditions, the Company concluded that a triggering event had occurred resulting in the need to perform quantitative interim testing over the Company’s goodwill and flagship assets during the first quarter of fiscal 2021. The testing concluded that the fair values of the respective reporting units exceeded their carrying values. Subsequent to the first quarter of fiscal 2021, the Company assessed qualitative factors and determined that it is not more likely than not that the fair values of its reporting units are less than their carrying amounts. Accordingly, the Company did not record any asset impairment charges on its goodwill or flagship assets that continued to meet the appropriate criteria during fiscal 2021. In performing its assessment, the Company believes it made reasonable accounting estimates based on the facts and circumstances that were available as of the testing date in light of the evolving situation resulting from the COVID-19 pandemic. If actual results are not consistent with the assumptions and judgments used, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations.

From time-to-time, the Company may acquire certain retail locations from its wholesale partners which may result in the recognition of goodwill or other intangible assets.