Goodwill and Intangible Assets
|6 Months Ended|
Jul. 30, 2022
|Goodwill and Intangible Assets|
|Goodwill and Intangible Assets||
(5) Goodwill and Intangible Assets
The following table presents the changes in goodwill during the six months ended July 30, 2022:
The Company acquired 123.tv in the prior year. Subsequent to the acquisition 123.tv’s revenues and operating income have been less than originally projected. The Company believes the high inflation in Germany and uncertain short-term events such as the Russian invasion of Ukraine have created short term shifts in consumer spending habits. The Company will continue to monitor the financial results of 123.tv and should the financial results continue to fall short of our projections for a prolonged period of time an impairment of long-lived assets may become necessary to record in the future.
The occurrence of risks such as political, regulatory or jurisdictional could negatively affect our international business and, consequently, our results of operations generally. Additionally, operating in international markets also requires significant management attention and financial resources. Specifically, such an occurrence could create a triggering event that would require us to review goodwill and intangible assets for impairment and the potential full or partial write-down of those balances. We cannot be certain that the investment and additional resources required in establishing, acquiring, or integrating operations in other countries will produce desired levels of revenues or profitability.
Finite-lived Intangible Assets
Intangible assets in the accompanying condensed consolidated balance sheets consisted of the following:
Intangible assets, net in the accompanying condensed consolidated balance sheets consist of trade names, technology, customer lists and a vendor exclusivity agreement primarily related to the various acquisitions the Company completed in fiscal 2021 and 2019. Amortization expense related to the finite-lived intangible assets was $777 and $0 for the three-month periods ended July 30, 2022 and July 31, 2021 and $1,572 and $273 for the six-month period ended July 30, 2022 and July 31, 2021. Estimated amortization expense is $1,528 for the remainder of fiscal 2022, $3,003 for fiscal 2023, $2,807 for fiscal 2024, $2,627 for fiscal 2025, and $2,166 for fiscal 2026 and $14,944 thereafter.
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef