CALERES INC Goodwill & Intangibles Disclosure
10. GOODWILL AND INTANGIBLE ASSETS
Goodwill and intangible assets were as follows:
($ thousands) | February 1, 2025 |
| February 3, 2024 | ||
Intangible Assets |
|
|
| ||
Famous Footwear | $ | 2,800 | $ | 2,800 | |
Brand Portfolio (1) |
| 342,083 |
| 342,083 | |
Total intangible assets |
| 344,883 |
| 344,883 | |
Accumulated amortization |
| (157,565) |
| (146,529) | |
Total intangible assets, net |
| 187,318 |
| 198,354 | |
Goodwill |
|
|
|
| |
Brand Portfolio (2) |
| 4,956 |
| 4,956 | |
Total goodwill |
| 4,956 |
| 4,956 | |
Goodwill and intangible assets, net | $ | 192,274 | $ | 203,310 | |
| (1) | The carrying amount of intangible assets as of February 1, 2025 and February 3, 2024 is presented net of accumulated impairment charges of $106.2 million. |
| (2) | The carrying amount of goodwill as of February 1, 2025 and February 3, 2024 is presented net of accumulated impairment charges of $415.7 million. |
The Company’s intangible assets as of February 1, 2025 and February 3, 2024 were as follows:
($ thousands) |
| February 1, 2025 | ||||||||||||
| Estimated Useful Lives |
|
| Accumulated |
| Accumulated |
| |||||||
(In Years) | Cost Basis | Amortization | Impairment | Net Carrying Value | ||||||||||
Trade names |
| 2 - 40 | $ | 299,488 | $ | 140,424 | $ | 10,200 | $ | 148,864 | ||||
Trade names |
| Indefinite |
| 107,400 |
| — |
| 92,000 |
| 15,400 | ||||
Customer relationships |
| 15 - 16 |
|
| 44,200 |
|
| 17,141 |
|
| 4,005 |
|
| 23,054 |
$ | 451,088 | $ | 157,565 | $ | 106,205 | $ | 187,318 | |||||||
| February 3, 2024 | |||||||||||||
Estimated Useful Lives | Accumulated | Accumulated | ||||||||||||
| (In Years) |
| Cost Basis |
| Amortization |
| Impairment |
| Net Carrying Value | |||||
Trade names | 2 - 40 | $ | 299,488 | $ | 131,677 | $ | 10,200 | $ | 157,611 | |||||
Trade names |
| Indefinite |
| 107,400 |
| — |
| 92,000 |
| 15,400 | ||||
Customer relationships |
| 15 - 16 |
| 44,200 |
|
| 14,852 |
|
| 4,005 |
|
| 25,343 | |
$ | 451,088 | $ | 146,529 | $ | 106,205 | $ | 198,354 | |||||||
Amortization expense related to intangible assets was $11.0 million in 2024 and $12.1 million in both 2023 and 2022. The Company estimates $11.0 million of amortization expense related to intangible assets in 2025 and , $10.9 million in 2027 and $10.7 million in 2028.
Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired, using either the qualitative assessment or a quantitative fair value-based test. During 2024 and 2023, the goodwill impairment testing was performed as of the first day of the fourth fiscal quarter, which resulted in no impairment charges.
Indefinite-lived intangible assets are tested for impairment as of the first day of the fourth quarter of each fiscal year unless events or circumstances indicate an interim test is required. The Company did not record any impairment charges for intangible assets during 2024 or 2023.
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About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.