GOODWILL AND INTANGIBLE ASSETS
|12 Months Ended|
Jan. 30, 2021
|GOODWILL AND INTANGIBLE ASSETS|
|GOODWILL AND INTANGIBLE ASSETS||
5. GOODWILL AND INTANGIBLE ASSETS
The gross carrying amounts and accumulated amortization of our intangible assets are as follows (in thousands):
In fiscal 2020, fiscal 2019 and fiscal 2018, we recognized amortization expense of $4.7 million, $1.7 million and $1.6 million, respectively, related to definite-lived intangible assets. As of January 30, 2021, the to for the next five years will be approximately $4.0 million to $5.0 million each year.
In November 2019, the Company acquired certain intangible assets from A.C. Moore Incorporated for $61.9 million, including customer relationships and tradenames totaling $55.9 million and $5.2 million, respectively. In connection with the transaction, we also leased a distribution facility in New Jersey and 17 store locations. The fair values of the intangible assets acquired were determined by using the income approach. The income approach indicates value for a subject based on the present value of cash flows expected to be generated by the asset. Projected cash flows are discounted at a market rate of return that reflects the relative risk of achieving the cash flows and the time value of money.
As of January 30, 2021 and February 1, 2020, goodwill totaled $94.3 million. As a result of our impairment testing in fiscal 2019, we fully impaired goodwill of $17.8 million related to Darice (see Note 1 for further explanation). The remaining goodwill balance is related to our Michaels brand.
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef