Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Nov. 02, 2019 | Dec. 13, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | Apex Global Brands Inc. | |
Entity Central Index Key | 0000844161 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 2, 2019 | |
Trading Symbol | APEX | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-01 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 5,570,530 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-18640 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4182437 | |
Entity Address, Address Line One | 5990 Sepulveda Boulevard | |
Entity Address, City or Town | Sherman Oaks | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91411 | |
City Area Code | 818 | |
Local Phone Number | 908-9868 | |
Entity Information, Former Legal or Registered Name | CHEROKEE INC. | |
Title of 12(b) Security | Common stock | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 02, 2019 | Feb. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,448 | $ 4,284 |
Accounts receivable, net | 5,352 | 4,363 |
Other receivables | 290 | 339 |
Prepaid expenses and other current assets | 650 | 857 |
Total current assets | 7,740 | 9,843 |
Property and equipment, net | 511 | 620 |
Intangible assets, net | 59,312 | 64,751 |
Goodwill | 16,252 | 16,252 |
Accrued revenue and other assets | 6,391 | 1,645 |
Total assets | 90,206 | 93,111 |
Current liabilities: | ||
Accounts payable | 2,794 | 3,120 |
Other current liabilities | 3,785 | 4,714 |
Current portion of long-term debt | 55,219 | 1,300 |
Deferred revenue—current | 3,869 | 1,626 |
Total current liabilities | 65,667 | 10,760 |
Long-term liabilities: | ||
Long-term debt | 53,154 | |
Deferred income taxes | 13,218 | 12,055 |
Long-term lease liabilities | 3,616 | |
Other liabilities | 2,162 | 2,807 |
Total liabilities | 84,663 | 78,776 |
Commitments and Contingencies (Note 7) | ||
Stockholders’ Equity: | ||
Preferred stock, $.02 par value, 1,000,000 shares authorized, none issued | ||
Common stock, $.06 par value, 10,000,000 shares authorized, shares issued 5,570,530 (November 2, 2019) and 4,900,318 (February 2, 2019) | 334 | 294 |
Additional paid-in capital | 78,154 | 76,633 |
Accumulated deficit | (72,945) | (62,592) |
Total stockholders’ equity | 5,543 | 14,335 |
Total liabilities and stockholders’ equity | $ 90,206 | $ 93,111 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Nov. 02, 2019 | Feb. 02, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.06 | $ 0.06 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,570,530 | 4,900,318 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 4,894 | $ 5,842 | $ 15,549 | $ 18,317 |
Operating expenses: | ||||
Selling, general and administrative expenses | 3,193 | 3,234 | 10,117 | 11,577 |
Stock-based compensation | 153 | 241 | 876 | 666 |
Business acquisition and integration costs | 73 | 284 | 307 | |
Restructuring charges | 138 | 180 | 5,615 | |
Intangible asset impairment charge | 5,000 | 5,000 | ||
Loss (gain) on sale of assets | 25 | (546) | ||
Depreciation and amortization | 232 | 292 | 743 | 1,223 |
Total operating expenses | 8,789 | 3,792 | 17,200 | 18,842 |
Operating income (loss) | (3,895) | 2,050 | (1,651) | (525) |
Other income (expense): | ||||
Interest expense | (2,182) | (1,910) | (6,678) | (6,007) |
Other income (expense), net | (59) | 14 | 2 | (3,219) |
Total other expense, net | (2,241) | (1,896) | (6,676) | (9,226) |
Income (loss) before income taxes | (6,136) | 154 | (8,327) | (9,751) |
Provision for income taxes | 692 | 91 | 2,026 | 1,980 |
Net income (loss) | $ (6,828) | $ 63 | $ (10,353) | $ (11,731) |
Net loss per share: | ||||
Basic earnings (loss) per share | $ (1.23) | $ 0.01 | $ (1.93) | $ (2.50) |
Diluted earnings (loss) per share | $ (1.23) | $ 0.01 | $ (1.93) | $ (2.50) |
Weighted average common shares outstanding: | ||||
Basic | 5,534 | 4,716 | 5,359 | 4,686 |
Diluted | 5,534 | 4,716 | 5,359 | 4,686 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) |
Balance at Feb. 03, 2018 | $ 24,115 | $ 280 | $ 74,377 | $ (50,542) |
Balance (in shares) at Feb. 03, 2018 | 4,666 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Adoption of ASC 606 | 275 | 275 | ||
Stock-based compensation | 300 | 300 | ||
Stock Warrants | 23 | 23 | ||
Net Income (Loss) | (2,741) | (2,741) | ||
Balance at May. 05, 2018 | 21,972 | $ 280 | 74,700 | (53,008) |
Balance (in shares) at May. 05, 2018 | 4,666 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | 125 | 125 | ||
Equity issuances, net of tax | 777 | $ 1 | 776 | |
Equity issuances, net of tax (in shares) | 16 | |||
Stock Warrants | 21 | 21 | ||
Net Income (Loss) | (9,053) | (9,053) | ||
Balance at Aug. 04, 2018 | 13,842 | $ 281 | 75,622 | (62,061) |
Balance (in shares) at Aug. 04, 2018 | 4,682 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | 241 | 241 | ||
Equity issuances, net of tax | $ 3 | (3) | ||
Equity issuances, net of tax (in shares) | 59 | |||
Stock Warrants | 22 | 22 | ||
Net Income (Loss) | 63 | 63 | ||
Balance at Nov. 03, 2018 | 14,168 | $ 284 | 75,882 | (61,998) |
Balance (in shares) at Nov. 03, 2018 | 4,741 | |||
Balance at Feb. 02, 2019 | 14,335 | $ 294 | 76,633 | (62,592) |
Balance (in shares) at Feb. 02, 2019 | 4,900 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | 208 | 208 | ||
Equity issuances, net of tax | 623 | $ 25 | 598 | |
Equity issuances, net of tax (in shares) | 415 | |||
Stock Warrants | 28 | 28 | ||
Net Income (Loss) | (2,258) | (2,258) | ||
Balance at May. 04, 2019 | 12,936 | $ 319 | 77,467 | (64,850) |
Balance (in shares) at May. 04, 2019 | 5,315 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | 515 | 515 | ||
Equity issuances, net of tax | $ 12 | (12) | ||
Equity issuances, net of tax (in shares) | 207 | |||
Stock Warrants | 28 | 28 | ||
Net Income (Loss) | (1,267) | (1,267) | ||
Balance at Aug. 03, 2019 | 12,212 | $ 331 | 77,998 | (66,117) |
Balance (in shares) at Aug. 03, 2019 | 5,522 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | 153 | 153 | ||
Equity issuances, net of tax | (21) | $ 3 | (24) | |
Equity issuances, net of tax (in shares) | 49 | |||
Stock Warrants | 27 | 27 | ||
Net Income (Loss) | (6,828) | (6,828) | ||
Balance at Nov. 02, 2019 | $ 5,543 | $ 334 | $ 78,154 | $ (72,945) |
Balance (in shares) at Nov. 02, 2019 | 5,571 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 02, 2019 | Nov. 03, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (10,353) | $ (11,731) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 743 | 1,223 |
Restructuring charges | 180 | 5,615 |
Intangible asset impairment charge | 5,000 | |
Amortization of deferred financing costs | 1,755 | 3,750 |
Deferred income taxes and noncurrent provisions | 1,163 | 1,079 |
Stock-based compensation and stock warrant charges | 958 | 729 |
Loss (gain) on sale of assets | (546) | |
Changes in operating assets and liabilities, net of effects from business combinations: | ||
Accounts receivable | (989) | 3,764 |
Other receivables | 49 | 66 |
Prepaid expenses and other current assets | 207 | 314 |
Other assets | (569) | (980) |
Accounts payable | (323) | (507) |
Other current liabilities | (2,317) | (7,180) |
Deferred revenue | 2,243 | (1,692) |
Net cash used in operating activities | (2,253) | (6,096) |
Net cash used in operating activities from discontinued operations | 0 | (1,380) |
Cash flows from investing activities: | ||
Capital investments | (195) | (184) |
Proceeds from business disposition and sale of assets | 5,643 | |
Net cash provided by (used in) investing activities | (195) | 5,459 |
Cash flows from financing activities: | ||
Proceeds from term loan, subordinated promissory notes and line of credit | 42,000 | |
Payments on term loan and line of credit | (950) | (38,100) |
Debt issuance costs | (39) | (3,016) |
Issuance of common stock | 601 | 4 |
Net cash (used in) provided by financing activities | (388) | 888 |
Decrease in cash and cash equivalents | (2,836) | (1,129) |
Cash and cash equivalents, beginning of period | 4,284 | 3,174 |
Cash and cash equivalents, end of period | 1,448 | 2,045 |
Cash paid for: | ||
Income taxes | 790 | 837 |
Interest | $ 4,923 | 5,238 |
Noncash investing and financing activities: | ||
Conversion of junior participation interests to subordinated promissory notes | $ 11,500 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Nov. 02, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statement presentation. Cherokee Inc. changed its name to Apex Global Brands Inc. effective June 27, 2019. These financial statements include the accounts of Apex Global Brands Inc. and its consolidated subsidiaries (the “Company”) and include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition and the results of operations for the periods presented. The condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto for the year ended February 2, 2019 included in the Company’s Annual Report on Form 10-K. Interim results are not necessarily indicative of results to be expected for the full year. Liquidity and Going Concern The accompanying condensed consolidated financial statements have been prepared on the going concern basis of accounting, which assumes the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Under the Company’s senior secured credit facility, the Company is required to maintain specified levels of Adjusted EBITDA as defined ($9.5 million for the trailing twelve months as of February 1, 2020) and maintain a minimum cash balance of $1.0 million. The Company’s operating results for the twelve months ended November 2, 2019 resulted in a violation of this minimum Adjusted EBITDA covenant, which is an event of default. However, the Company’s senior lender has agreed to forbear from enforcing its rights under the senior secured credit facility through February 28, 2020. Revenues for the three months ended November 2, 2019 were lower than the Company’s previous forecasts due to lower than expected royalties reported by the Company’s licensees, which have been negatively impacted by the economic uncertainty surrounding Brexit, global trade wars and increasing tariffs on footwear and apparel, and the weakening of the British pound sterling and euro in relation to the United States dollar. In response, management has enacted certain cash savings measures, but such actions were not adequate to maintain compliance with the Adjusted EBITDA covenant. The Company has classified its debt as current as financial projections indicate that there is a significant risk of further violations of the minimum Adjusted EBITDA covenant or minimum cash covenant beyond the forbearance period agreed to with the Company’s senior lender. Future compliance failures would subject the Company to significant risks, including the right of its senior lender to terminate its obligation under the Credit Facility, declare all or any portion of the borrowed amounts then outstanding to be accelerated and due and payable, and/or exercise any other right or remedies it may have under applicable law, including foreclosing on the Company’s and/or its subsidiaries’ assets that serve as collateral for the borrowed amounts. If any of these rights were to be exercised, the Company’s financial condition and ability to continue operations would be materially jeopardized. If the Company is unable to meet obligations to lenders and other creditors, the Company may have to significantly curtail or even cease operations. Because of this uncertainty, there is substantial doubt about the Company’s ability to continue as a going concern. The Company is in negotiations for new and amended licenses that would increase its working capital and Adjusted EBITDA and is evaluating other potential sources of working capital, including the disposition of certain assets. Management’s plans also include further negotiations with its lenders and other potential sources of capital, and the Company’s management and board of directors have engaged an advisory firm to advise the Company regarding its business plans, risks and opportunities. There is no assurance that the Company will be able to execute these plans or continue to operate as a going concern. Reverse Stock Split On September 27, 2019, the Company effected a one-for-three reverse stock split (the “Reverse Stock Split”) of its common stock. The Reverse Stock Split reduced the number of the Company’s outstanding shares of common stock from approximately 16.6 million shares to approximately 5.5 million shares and reduces the number of authorized shares of common stock from 30.0 million shares to 10.0 million shares. Unless the context otherwise requires, all share and per share amounts in these condensed consolidated financial statements have been revised to reflect the Reverse Stock Split. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Nov. 02, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (“Topic 326”). For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. This new standard is effective for the Company’s fiscal year ending January 30, 2021 (‘‘Fiscal 2021’’). The Company is currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. Management does not expect the impact of adoption to be material. In March 2016, the FASB issued authoritative guidance which modified existing guidance for off-balance sheet treatment of a lessee’s operating leases (“Topic 842”). The standard requires a lessee to recognize assets and liabilities related to long-term leases that were classified as operating leases under previous guidance. An asset is recognized related to the right to use the underlying asset, and a liability is recognized related to the obligation to make lease payments over the term of the lease. These amounts are determined based on the present value of the lease payments over the lease term. The standard also requires expanded disclosures about leases. The Company adopted this standard as of the beginning of its fiscal year ending February 1, 2020, electing the transition option that allowed it not to restate the comparative periods in its financial statements in the year of adoption and to carry forward its historical assessment of whether contracts are, or contain, leases, along with its historical assessment of lease classifications and initial direct costs. The Company’s leases obligations comprise primarily individual leases for office space without multiple components. The Company determines if an arrangement is or contains a lease at inception by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date when the leased assets are made available for use. For the Company’s long-term leases, operating leases obligations are included in other current liabilities and long-term lease liabilities, and right-of-use assets are included in accrued revenue and other assets. The Company does not have any material finance leases. The operating lease obligations and right-of-use assets recognized on adoption of Topic 842 were $4.7 million and $4.6 million, respectively. The difference between the total right-of-use assets and total lease liabilities recorded on adoption is primarily due to the derecognition of prepaid rent expenses. The Company uses estimates of its incremental borrowing rate (IBR) based on the information available at the lease commencement date in determining the present value of lease payments. In determining the appropriate IBR, the Company considers information including, but not limited to, its credit rating, the lease term, and the currency in which the arrangement is denominated. For leases which commenced prior to our adoption of Topic 842, we used the estimated IBR on the date of adoption. When the Company has the sole option to either renew or terminate a lease, the present value of the right-of-use asset and lease obligation includes the extension period when it is reasonably certain that the Company will exercise the option. Lease expense is recognized on a straight-line basis over the lease term. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Nov. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 3 . Intangible Assets Intangible assets consists of the following: November 2, 2019 February 2, 2019 (In thousands) Gross Amount Accumulated Amortization Net Book Value Gross Amount Accumulated Amortization Net Book Value Amortizable trademarks $ 28,004 (20,379 ) $ 7,625 $ 27,899 (19,835 ) $ 8,064 Indefinite lived trademarks 51,687 — 51,687 56,687 — 56,687 $ 79,691 $ (20,379 ) $ 59,312 $ 84,586 $ (19,835 ) $ 64,751 The Hi-Tec Acquisition during Fiscal 2017 resulted in trademarks valued at $52.4 million that are classified as indefinite lived and not subjected to amortization. Other indefinite lived trademarks include certain Cherokee brand trademarks that were acquired in historical transactions. The Company's revenues from its Hi-Tec, Magnum and Interceptor brands, which were acquired in the Hi-Tec Acquisition, were significantly below previous forecasts for the three months ended November 2, 2019. (See Note 1 for further discussion.) This was identified as an interim impairment indicator for the related indefinite lived trademarks during the preparation of the Company’s interim financial statements, and management performed an interim impairment test based on updated cash flow projections and discounted cash flows based on estimated weighted average costs of capital (income approach). The Company determined that the fair values of its Hi-Tec and Magnum trademarks were not in excess of their carrying values, and as a result, an impairment charge of $ million was recorded during the three months ended November 2, 2019 to adjust these trademarks to their estimated fair value The fair value of the Company’s Interceptor brand was in excess of its carrying value, so no impairment charge was necessary based on the interim test. However, the Company believes that increased tariffs and global trade wars have negatively impacted the competitive and economic environment in which Interceptor operates, and an indefinite life is no longer supported. Accordingly, the Interceptor trademark will be amortized prospectively over its estimated remaining useful life. Goodwill arose from historical acquisitions and the Hi-Tec Acquisition that occurred during Fiscal 2017. Goodwill is tested at least annually for impairment but was tested this quarter as a result of the revenue shortfall referred to above and the sustained drop in the trading price of the Company’s stock. Because the Company has one reporting unit, its impairment test is based primarily on the relationship between its market capitalization and the book value of its equity adjusted for an estimated control premium. The goodwill impairment test this quarter indicated that the Company’s goodwill is not impaired. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Nov. 02, 2019 | |
Other Liabilities Current [Abstract] | |
Other Current Liabilities | 4 . Other Current Liabilities Other current liabilities consist of the following: (In thousands) November 2, 2019 February 2, 2019 Accrued employee compensation and benefits $ 363 $ 376 Restructuring plan liabilities 1,602 3,003 Income taxes payable 486 473 Current lease obligations 564 — Other liabilities 770 862 $ 3,785 $ 4,714 |
Restructuring Plans
Restructuring Plans | 9 Months Ended |
Nov. 02, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Plans | 5 . Restructuring Plans The Company incurred restructuring charges in Fiscal 2018 and Fiscal 2017 related to the Hi-Tec Acquisition and its integration into the Company’s ongoing operations (the “Hi-Tec Plan”). Charges and payments against the restructuring plan obligations were as follows: (In thousands) FY19 Plan FY18 Plan Hi-Tec Plan Total Balance, February 2, 2019 2,760 44 199 3,003 Restructuring charges 180 — — 180 Payments during the period (1,372 ) (44 ) (165 ) (1,581 ) Balance, November 2, 2019 $ 1,568 $ — $ 34 $ 1,602 |
Debt
Debt | 9 Months Ended |
Nov. 02, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 6 . Debt On August 3, 2018, the Company entered into a senior secured credit facility, which provided a $40.0 term loan, and $13.5 million of subordinated promissory notes (the “Junior Notes”). The credit facility was amended on January 30, 2019 to provide an additional term loan of $5.3 million. The term loans mature in August 2021 and require quarterly principal payments and monthly interest payments based on LIBOR plus a margin. The additional $5.3 million term loan also requires interest of 3.0% payable in kind with such interest being added to the principal balance of the loan. The term loans are secured by substantially all the assets of the Company and are guaranteed by the Company’s subsidiaries. The Junior Notes mature in November 2021, and they are secured by a second priority lien on substantially all of the assets of Company and guaranteed by the Company’s subsidiaries. Interest is payable monthly on the Junior Notes, but no periodic amortization payments are required. The Junior Notes are subordinated in rights of payment and priority to the term loans but otherwise have economic terms substantially similar to the term loans. Excluding the interest payable in kind, the weighted-average interest rate on both the term loans and Junior Notes at November 2, 2019 was 11.1%. The term loans are subject to a borrowing base and include financial covenants and obligations regarding the operation of the Company’s business that are customary in facilities of this type, including limitations on the payment of dividends. Financial covenants include the requirement to maintain specified levels of Adjusted EBITDA, as defined in the agreement, and maintain a specified level of cash on hand. The Company is required to maintain a borrowing base comprising the value of the Company’s trademarks that exceeds the outstanding balance of the term loans. If the borrowing base is less than the outstanding term loans at any measurement period, then the Company would be required to repay a portion of the term loans to eliminate such shortfall. Events of default include, among other things, the occurrence of a change of control of the Company, and a default under the term loans agreement would also trigger a default under the Junior Notes agreements. The Company’s operating results for the twelve months ended November 2, 2019 resulted in a violation of the minimum Adjusted EBITDA covenant, which is an event of default. However, the Company’s lender has agreed to forbear from enforcing its rights under the senior secured credit facility through February 28, 2020. (See Note 1, Liquidity and Going Concern.) Outstanding borrowings under the term loans were $44.1 million at November 2, 2019 with associated unamortized debt issuance costs of $2.0 million. Outstanding Junior Notes were $13.5 million at November 2, 2019 with associated unamortized debt issuance costs of $0.4 million. As a result of the covenant violation referred to above, the total amount of the Company’s long-term debt is reflected as a current obligation in the Company’s November 2, 2019 consolidated balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 02, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7 . Commitments and Contingencies The Company indemnifies certain customers against liability arising from third‑party claims of intellectual property rights infringement related to the Company’s trademarks. These indemnities appear in the licensing agreements with the Company’s customers, are not limited in amount or duration and generally survive the expiration of the contracts. The Company is unable to determine a range of estimated losses that it could incur related to such indemnities since the amount of any potential liabilities cannot be determined until an infringement claim has been made. The Company is involved from time to time in various claims and other matters incidental to the Company’s business, the resolution of which is not presently expected to have a material adverse effect on the Company’s financial position, results of operations or liquidity. Estimated reserves for contingent liabilities, including threatened or pending litigation, are recorded as liabilities in the financial statements when the outcome of these matters is deemed probable and the liability is reasonably estimable. The Company has non-cancelable operating lease agreements with various expiration dates through December 31, 2026 for office space and equipment. Certain lease agreements include options to renew, which are not reasonably certain to be exercised and therefore are not factored into our determination of the present value of lease obligations. Operating lease costs are included as a component of selling, general and administrative expense and were $0.1 million and $0.4 million, excluding variable lease costs and sublease income, for the three and nine months ended November 2, 2019, respectively. Cash paid for operating lease obligations is consistent with operating lease costs for the period. Total lease expense recognized prior to our adoption of Topic 842 was $0.2 million and $0.6 million for the three and nine months ended November 3, 2018, respectively. As of November 2, 2019, the weighted-average remaining lease term is 6.2 years, and the weighted-average IBR is 8.8%. The right-of-use assets as of November 2, 2019 was $4.2 million. Future minimum commitments under non-cancelable operating leases as of November 2, 2019 are as follows: (In thousands) Operating Leases Remainder of Fiscal 2020 $ 193 Fiscal 2021 890 Fiscal 2022 902 Fiscal 2023 884 Fiscal 2024 893 Thereafter 1,597 Total future minimum lease payments 5,359 Less imputed interest (1,178 ) Present value of operating lease liabilities $ 4,181 Future minimum lease payments as of February 2, 2019 were as follows: (In thousands) Operating Leases Fiscal 2020 $ 854 Fiscal 2021 865 Fiscal 2022 876 Fiscal 2023 857 Fiscal 2024 863 Thereafter 1,673 Total future minimum lease payments $ 5,988 |
Revenues and Concentrations of
Revenues and Concentrations of Risk | 9 Months Ended |
Nov. 02, 2019 | |
Risks And Uncertainties [Abstract] | |
Revenues and Concentrations of Risk | 8 . Revenues and Concentrations of Risk Revenues by geographic area based upon the licensees’ country of domicile comprise the following: Three Months Ended Nine Months Ended (In thousands) November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 U.S. and Canada $ 1,327 $ 1,505 $ 4,049 $ 4,908 Europe 851 1,136 2,798 4,358 Middle East, India and Africa 636 926 2,107 3,107 Asia/Pacific 1,402 1,431 4,345 3,260 Latin America 678 844 2,250 2,684 Total $ 4,894 $ 5,842 $ 15,549 $ 18,317 Long‑lived assets located in the United States and outside the United States amount to $0.2 million and $0.3 million, respectively, at November 2, 2019 and $0.2 million and $0.4 million, respectively, at February 2, 2019. Deferred revenue totaled $3.9 million and $2.2 million at November 2, 2019 and February 2, 2019, respectively. Revenue recognized in the three and nine months ended November 2, 2019 that was previously included in deferred revenue was $0.1 million and $1.5 million, respectively. Revenue recognized in the three and nine months ended November 3, 2018 that was previously included in deferred revenue was $0.2 million and $2.1 million. Three licensees accounted for approximately 37% of accounts receivable at November 2, 2019, and two licensees accounted for approximately 29% and 27% of revenues for the three and nine months ended November 2, 2019, respectively. Two licensees accounted for approximately 29% of accounts receivable at February 2, 2019. Three licensees accounted for approximately 32% of revenues for the three months ended November 3, 2018, and two licensees for approximately 20% of revenues for the nine months ended November 3, 2018. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Nov. 02, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 9 . Earnings (Loss) Per Share Basic earnings (loss) per share (“EPS”) is computed by dividing the net (loss) income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, while diluted EPS additionally includes the dilutive effect of outstanding stock options and warrants as if such securities had been exercised at the beginning of the period. The computation of diluted common shares outstanding excludes outstanding stock options and warrants that are anti‑dilutive. |
Taxes on Income
Taxes on Income | 9 Months Ended |
Nov. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | 10 . Taxes on Income Each reporting period, the Company evaluates the realizability of its deferred tax assets. As of November 2, 2019, the Company continued to maintain a full valuation allowance against its deferred tax assets in the United States and the foreign subsidiaries acquired in the Hi-Tec Acquisition. These valuation allowances will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that these deferred tax assets will be realized. As of November 2, 2019, the reserve for uncertain tax positions resulting from unrecognized tax benefits related to the Company’s Hi-Tec subsidiaries was $3.3 million. There was no change in the three months ended November 2, 2019 and a decrease of $0.1 million in the nine months ended November 2, 2019, in the Company’s liability for uncertain tax positions. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Nov. 02, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11 . Subsequent Events In November 2019, the Company entered into a lease termination agreement for its office building in Amsterdam. The lease will terminate as of December 31, 2019 rather than continue through December 2026. The compensation for early termination is a payment of $0.6 million and a subordinated note of $0.3 million, excluding VAT, reducing the Company’s lease obligation by $2.4 million. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Nov. 02, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Liquidity and Going Concern | Liquidity and Going Concern The accompanying condensed consolidated financial statements have been prepared on the going concern basis of accounting, which assumes the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Under the Company’s senior secured credit facility, the Company is required to maintain specified levels of Adjusted EBITDA as defined ($9.5 million for the trailing twelve months as of February 1, 2020) and maintain a minimum cash balance of $1.0 million. The Company’s operating results for the twelve months ended November 2, 2019 resulted in a violation of this minimum Adjusted EBITDA covenant, which is an event of default. However, the Company’s senior lender has agreed to forbear from enforcing its rights under the senior secured credit facility through February 28, 2020. Revenues for the three months ended November 2, 2019 were lower than the Company’s previous forecasts due to lower than expected royalties reported by the Company’s licensees, which have been negatively impacted by the economic uncertainty surrounding Brexit, global trade wars and increasing tariffs on footwear and apparel, and the weakening of the British pound sterling and euro in relation to the United States dollar. In response, management has enacted certain cash savings measures, but such actions were not adequate to maintain compliance with the Adjusted EBITDA covenant. The Company has classified its debt as current as financial projections indicate that there is a significant risk of further violations of the minimum Adjusted EBITDA covenant or minimum cash covenant beyond the forbearance period agreed to with the Company’s senior lender. Future compliance failures would subject the Company to significant risks, including the right of its senior lender to terminate its obligation under the Credit Facility, declare all or any portion of the borrowed amounts then outstanding to be accelerated and due and payable, and/or exercise any other right or remedies it may have under applicable law, including foreclosing on the Company’s and/or its subsidiaries’ assets that serve as collateral for the borrowed amounts. If any of these rights were to be exercised, the Company’s financial condition and ability to continue operations would be materially jeopardized. If the Company is unable to meet obligations to lenders and other creditors, the Company may have to significantly curtail or even cease operations. Because of this uncertainty, there is substantial doubt about the Company’s ability to continue as a going concern. The Company is in negotiations for new and amended licenses that would increase its working capital and Adjusted EBITDA and is evaluating other potential sources of working capital, including the disposition of certain assets. Management’s plans also include further negotiations with its lenders and other potential sources of capital, and the Company’s management and board of directors have engaged an advisory firm to advise the Company regarding its business plans, risks and opportunities. There is no assurance that the Company will be able to execute these plans or continue to operate as a going concern. |
Reverse Stock Split | Reverse Stock Split On September 27, 2019, the Company effected a one-for-three reverse stock split (the “Reverse Stock Split”) of its common stock. The Reverse Stock Split reduced the number of the Company’s outstanding shares of common stock from approximately 16.6 million shares to approximately 5.5 million shares and reduces the number of authorized shares of common stock from 30.0 million shares to 10.0 million shares. Unless the context otherwise requires, all share and per share amounts in these condensed consolidated financial statements have been revised to reflect the Reverse Stock Split. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consists of the following: November 2, 2019 February 2, 2019 (In thousands) Gross Amount Accumulated Amortization Net Book Value Gross Amount Accumulated Amortization Net Book Value Amortizable trademarks $ 28,004 (20,379 ) $ 7,625 $ 27,899 (19,835 ) $ 8,064 Indefinite lived trademarks 51,687 — 51,687 56,687 — 56,687 $ 79,691 $ (20,379 ) $ 59,312 $ 84,586 $ (19,835 ) $ 64,751 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Other Liabilities Current [Abstract] | |
Schedule of other current liabilities | (In thousands) November 2, 2019 February 2, 2019 Accrued employee compensation and benefits $ 363 $ 376 Restructuring plan liabilities 1,602 3,003 Income taxes payable 486 473 Current lease obligations 564 — Other liabilities 770 862 $ 3,785 $ 4,714 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Restructuring And Related Activities [Abstract] | |
Schedule of restructuring-related costs is measured at its fair value | (In thousands) FY19 Plan FY18 Plan Hi-Tec Plan Total Balance, February 2, 2019 2,760 44 199 3,003 Restructuring charges 180 — — 180 Payments during the period (1,372 ) (44 ) (165 ) (1,581 ) Balance, November 2, 2019 $ 1,568 $ — $ 34 $ 1,602 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of future minimum commitments under non-cancelable operating leases | Future minimum commitments under non-cancelable operating leases as of November 2, 2019 are as follows: (In thousands) Operating Leases Remainder of Fiscal 2020 $ 193 Fiscal 2021 890 Fiscal 2022 902 Fiscal 2023 884 Fiscal 2024 893 Thereafter 1,597 Total future minimum lease payments 5,359 Less imputed interest (1,178 ) Present value of operating lease liabilities $ 4,181 |
Schedule of future minimum lease payments | Future minimum lease payments as of February 2, 2019 were as follows: (In thousands) Operating Leases Fiscal 2020 $ 854 Fiscal 2021 865 Fiscal 2022 876 Fiscal 2023 857 Fiscal 2024 863 Thereafter 1,673 Total future minimum lease payments $ 5,988 |
Revenues and Concentrations o_2
Revenues and Concentrations of Risk (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Risks And Uncertainties [Abstract] | |
Schedule of revenues by geographic area based upon the licensees' country of domicile | Three Months Ended Nine Months Ended (In thousands) November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 U.S. and Canada $ 1,327 $ 1,505 $ 4,049 $ 4,908 Europe 851 1,136 2,798 4,358 Middle East, India and Africa 636 926 2,107 3,107 Asia/Pacific 1,402 1,431 4,345 3,260 Latin America 678 844 2,250 2,684 Total $ 4,894 $ 5,842 $ 15,549 $ 18,317 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Sep. 27, 2019shares | Feb. 02, 2019USD ($)shares | Nov. 02, 2019shares | Sep. 26, 2019shares |
Basis Of Presentation [Line Items] | ||||
Reverse stock split ratio | 0.3333 | |||
Reverse stock split description | On September 27, 2019, the Company effected a one-for-three reverse stock split (the “Reverse Stock Split”) of its common stock. | |||
Common stock outstanding | shares | 5,500,000 | 16,600,000 | ||
Common stock authorized | shares | 10,000,000 | 10,000,000 | 10,000,000 | 30,000,000 |
Senior Secured Credit Facility | ||||
Basis Of Presentation [Line Items] | ||||
Adjusted level of earnings before interest tax depreciation and amortization | $ | $ 9.5 | |||
Minimum cash balance | $ | $ 1 |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 02, 2019 | Feb. 02, 2019 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Operating lease obligations | $ 4,181 | |
Right-of-use assets | $ 4,200 | |
ASU 2016-13 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (“Topic 326”). For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. This new standard is effective for the Company’s fiscal year ending January 30, 2021 (‘‘Fiscal 2021’’). The Company is currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. Management does not expect the impact of adoption to be material. | |
ASU 2016-02 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In March 2016, the FASB issued authoritative guidance which modified existing guidance for off-balance sheet treatment of a lessee’s operating leases (“Topic 842”). The standard requires a lessee to recognize assets and liabilities related to long-term leases that were classified as operating leases under previous guidance. An asset is recognized related to the right to use the underlying asset, and a liability is recognized related to the obligation to make lease payments over the term of the lease. These amounts are determined based on the present value of the lease payments over the lease term. The standard also requires expanded disclosures about leases. The Company adopted this standard as of the beginning of its fiscal year ending February 1, 2020, electing the transition option that allowed it not to restate the comparative periods in its financial statements in the year of adoption and to carry forward its historical assessment of whether contracts are, or contain, leases, along with its historical assessment of lease classifications and initial direct costs. | |
Operating lease obligations | $ 4,700 | |
Right-of-use assets | $ 4,600 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Feb. 02, 2019 |
Intangible assets subject to amortization: | ||
Intangible assets, Gross value | $ 79,691 | $ 84,586 |
Accumulated amortization | (20,379) | (19,835) |
Intangible Assets, Net (Excluding Goodwill), Total | 59,312 | 64,751 |
Trademarks | ||
Intangible assets not subject to amortization: | ||
Gross Value and Carrying Value | 51,687 | 56,687 |
Trademarks | ||
Intangible assets subject to amortization: | ||
Gross Value | 28,004 | 27,899 |
Accumulated amortization | (20,379) | (19,835) |
Carrying Value | $ 7,625 | $ 8,064 |
Intangible Assets - Annual Impa
Intangible Assets - Annual Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2019 | Nov. 02, 2019 | Feb. 02, 2019 | Dec. 07, 2016 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Impairment charges | $ 5,000 | $ 5,000 | ||
Trademarks | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Intangible assets not subject to amortization | $ 51,687 | $ 51,687 | $ 56,687 | |
Trademarks | Hi-Tech | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Intangible assets not subject to amortization | $ 52,400 |
Intangible Assets - Weighted Av
Intangible Assets - Weighted Average Period (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 200 | $ 200 | $ 500 | $ 700 |
Trademarks | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Residual values | $ 0 | $ 0 | ||
Weighted-average amortization period | 10 years |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Feb. 02, 2019 |
Other Liabilities Current [Abstract] | ||
Accrued employee compensation and benefits | $ 363 | $ 376 |
Restructuring plan liabilities | 1,602 | 3,003 |
Income taxes payable | 486 | 473 |
Current lease obligations | 564 | |
Other liabilities | 770 | 862 |
Total other current liabilities | $ 3,785 | $ 4,714 |
Restructuring Plans (Details)
Restructuring Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Nov. 02, 2019 | Nov. 02, 2019 | Nov. 03, 2018 | |
Payments for restructuring plan obligations | |||
Balance at beginning of period | $ 3,003 | ||
Restructuring charges | $ 138 | 180 | $ 5,615 |
Payments during the period | (1,581) | ||
Balance at end of period | 1,602 | 1,602 | |
FY19 Plan | |||
Payments for restructuring plan obligations | |||
Balance at beginning of period | 2,760 | ||
Restructuring charges | 180 | ||
Payments during the period | (1,372) | ||
Balance at end of period | 1,568 | 1,568 | |
FY18 Plan | |||
Payments for restructuring plan obligations | |||
Balance at beginning of period | 44 | ||
Payments during the period | (44) | ||
Hi-Tec Plan | |||
Payments for restructuring plan obligations | |||
Balance at beginning of period | 199 | ||
Payments during the period | (165) | ||
Balance at end of period | $ 34 | $ 34 |
Debt (Details)
Debt (Details) - Senior Secured Credit Facility - USD ($) | Aug. 03, 2018 | Nov. 02, 2019 | Jan. 30, 2019 |
Term Loan | |||
Debt | |||
Maximum borrowing capacity | $ 40,000,000 | $ 5,300,000 | |
Line of credit facility maturity month and year | 2021-08 | ||
Debt instrument, interest rate, stated percentage | 3.00% | ||
Line of credit facility, borrowing capacity, description | The Company is required to maintain a borrowing base comprising the value of the Company’s trademarks that exceeds the outstanding balance of the term loans. If the borrowing base is less than the outstanding term loans at any measurement period, then the Company would be required to repay a portion of the term loans to eliminate such shortfall. Events of default include, among other things, the occurrence of a change of control of the Company, and a default under the term loans agreement would also trigger a default under the Junior Notes agreements. | ||
Line of credit facility, maximum amount outstanding during period | $ 44,100,000 | ||
Unamortized debt issuance costs | 2,000,000 | ||
Junior Notes | |||
Debt | |||
Maximum borrowing capacity | $ 13,500,000 | ||
Line of credit facility maturity month and year | 2021-11 | ||
Debt instrument periodic amortization payment interest | $ 0 | ||
Line of credit facility, maximum amount outstanding during period | 13,500,000 | ||
Unamortized debt issuance costs | $ 400,000 | ||
Term Loan and Junior Notes | |||
Debt | |||
Debt instrument, interest rate, stated percentage | 11.10% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | Feb. 02, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |||||
Operating lease cost excluding variable lease costs and sublease income | $ 100 | $ 400 | |||
Lease expense recognized | $ 200 | $ 600 | |||
Operating lease, Weighted-average remaining lease term | 6 years 2 months 12 days | 6 years 2 months 12 days | |||
Operating lease, Weighted-average IBR | 8.80% | 8.80% | |||
Operating lease, right-of-use asset | $ 4,200 | $ 4,200 | |||
Remainder of Fiscal 2020 | 193 | 193 | |||
Fiscal 2021 | 890 | 890 | |||
Fiscal 2022 | 902 | 902 | |||
Fiscal 2023 | 884 | 884 | |||
Fiscal 2024 | 893 | 893 | |||
Thereafter | 1,597 | 1,597 | |||
Total future minimum lease payments | 5,359 | 5,359 | |||
Less imputed interest | (1,178) | (1,178) | |||
Operating lease obligations | $ 4,181 | $ 4,181 | |||
Fiscal 2020 | $ 854 | ||||
Fiscal 2021 | 865 | ||||
Fiscal 2022 | 876 | ||||
Fiscal 2023 | 857 | ||||
Fiscal 2024 | 863 | ||||
Thereafter | 1,673 | ||||
Total future minimum lease payments | $ 5,988 |
Revenues and Concentrations o_3
Revenues and Concentrations of Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | Feb. 02, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | $ 4,894 | $ 5,842 | $ 15,549 | $ 18,317 | |
Long-lived tangible assets | 511 | 511 | $ 620 | ||
Deferred revenue | 3,900 | 3,900 | $ 2,200 | ||
Revenue recognized | $ 100 | $ 200 | $ 1,500 | $ 2,100 | |
Customer Concentration Risk | Accounts Receivable | Three Licensees | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Concentration risk (as a percent) | 37.00% | ||||
Customer Concentration Risk | Accounts Receivable | Two Licensees | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Concentration risk (as a percent) | 29.00% | ||||
Customer Concentration Risk | Revenues | Three Licensees | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Concentration risk (as a percent) | 32.00% | ||||
Customer Concentration Risk | Revenues | Two Licensees | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Concentration risk (as a percent) | 29.00% | 27.00% | 20.00% | ||
U.S. and Canada | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | $ 1,327 | $ 1,505 | $ 4,049 | $ 4,908 | |
Europe | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 851 | 1,136 | 2,798 | 4,358 | |
Middle East, India and Africa | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 636 | 926 | 2,107 | 3,107 | |
Asia/Pacific | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 1,402 | 1,431 | 4,345 | 3,260 | |
Latin America | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 678 | $ 844 | 2,250 | $ 2,684 | |
United States | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Long-lived tangible assets | 200 | 200 | $ 200 | ||
Non-US | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Long-lived tangible assets | $ 300 | $ 300 | $ 400 |
Taxes on Income - (Details)
Taxes on Income - (Details) | 3 Months Ended | 9 Months Ended |
Nov. 02, 2019USD ($) | Nov. 02, 2019USD ($) | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 3,300,000 | $ 3,300,000 |
Decrease in liability for uncertain tax positions | $ 0 | $ 100,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Nov. 30, 2019USD ($) |
Subsequent Event [Line Items] | |
Payment of compensation for early termination decrease lease obligation | $ 2.4 |
Subsequent Event | |
Subsequent Event [Line Items] | |
Lease termination date | Dec. 31, 2019 |
Lease expiration date | Dec. 31, 2026 |
Payment of compensation for early termination lease excluding VAT | $ 0.6 |
Payment of compensation for early termination of subordinated note excluding VAT | $ 0.3 |