Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.22.2.2
Goodwill and Intangible Assets
9 Months Ended
Oct. 29, 2022
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

(5)   Goodwill and Intangible Assets

Goodwill

The following table presents the changes in goodwill during the nine months ended October 29, 2022:

Balance, January 29, 2022

$

99,050

Acquisition valuation adjustment

 

(444)

Foreign currency translation adjustment

(9,125)

Divestiture of business

 

(1,740)

Balance, October 29, 2022

$

87,741

The Company acquired 1-2-3.tv in the prior year.  Subsequent to the acquisition 1-2-3.tv’s revenues and operating income have been less than originally projected.  The Company believes the high inflation in Germany and uncertain events such as the Russian invasion of Ukraine have created shifts in consumer spending habits.  The Company will continue to monitor the financial results of 1-2-3.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:

October 29, 2022

January 29, 2022

Estimated 

Gross 

Gross 

Useful Life 

Carrying 

Accumulated 

Carrying 

Accumulated 

    

(In Years)

    

Amount

    

Amortization

Net Amount

    

Amount

Amortization

    

Net Amount

Trademarks and Trade Names

 

15

 

$

14,919

(952)

$

13,967

 

$

14,462

 

$

(451)

 

$

14,011

Technology

 

4-9

 

6,645

(759)

5,887

 

6,524

 

(752)

 

5,772

Customer Lists and Relationships

 

3-14

 

9,006

(2,625)

6,381

 

8,689

 

(619)

 

8,070

Vendor Exclusivity

 

5

 

193

(135)

58

 

193

 

(106)

 

87

Total finite-lived intangible assets

 

$

30,763

 

$

(4,471)

$

26,293

 

$

29,868

$

(1,928)

 

$

27,940

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 $772 and $242 for the three-month periods ended October 29, 2022 and October 30, 2021 and $2,344 and $544 for the nine-month period ended October 29, 2022 and October 30, 2021. Estimated amortization expense is $761 for the remainder of fiscal 2022, $3,001 for fiscal 2023, $2,805 for fiscal 2024, $2,625 for fiscal 2025, and $2,165 for fiscal 2026 and $14,936 thereafter.