Goodwill and Intangible Assets

12 Months Ended

Jan. 31, 2013

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

5.    Goodwill and Intangible Assets

Goodwill

There were no changes in the carrying amount of goodwill during the years ended January 31, 2013 and 2012. There were no impairments to goodwill during the years ended January 31, 2013, 2012 and 2011.

Other Intangible Assets

The Company’s amortizing intangible assets were as follows (in thousands):

	As of January 31, 2013
	Gross		Accumulated Amortization			Net
Technology, licenses and patents	$	184,213	$	(179,159	)	$	5,054
Customer relationships		278,900		(240,663	)		38,237
Trademarks		14,300		(12,334	)		1,966
Internal-use software		6,711		(6,307	)		404
Total	$	484,124	$	(438,463	)	$	45,661
	As of January 31, 2012
	Gross		Accumulated Amortization			Net
Technology, licenses and patents	$	178,699	$	(178,699	)	$	—
Customer relationships		278,900		(206,030	)		72,870
Trademarks		14,300		(10,559	)		3,741
Internal-use software		6,649		(5,996	)		653
Total	$	478,548	$	(401,284	)	$	77,264

In May 2012, the Company entered into an agreement with a third-party to license certain source code owned by the third-party. As part of the agreement, the third-party was required to complete certain source code enhancements. The Company paid a total of $4.0 million in consideration in the second quarter of fiscal year 2013 and the remaining $1.4 million is payable upon completion of the required source code development and is considered as a non-cash investing activity. The source code development was completed during the fourth quarter of fiscal year 2013, and the remaining $1.4 million payment will be paid in the first quarter of fiscal 2014. The consideration paid along with $0.1 million in internal development costs was capitalized within intangible assets on the condensed consolidated balance sheet. Amortization commenced in the fourth quarter of fiscal 2013 upon general availability of the products. The intangible is being amortized over its estimated useful of 3 years on a straight-line basis with a corresponding charge to amortization of technology within costs of revenue in the consolidated statements of comprehensive income (loss).

Technologies acquired prior to fiscal 2013 were amortized over periods ranging from approximately 1.5 years to 5 years and the amortization expense associated with acquired technologies is reflected in amortization of technology within cost of revenue in the consolidated statements of comprehensive income (loss). Other intangible assets are being amortized over periods ranging from 3 years to 8 years and the amortization expense associated with other intangible assets is reflected in operating expenses in the consolidated statements of comprehensive income (loss). Cost associated with internal use software is amortized on a straight line basis over the expected useful life of the software, ranging from three to five years, beginning on the date the application becomes available for its intended use.

Weighted average estimated remaining useful life as of January 31, 2013 is as follows (in years):

	Weighted Average Estimated Remaining Useful Life (In years)
Amortizing intangible assets:
Technology, licenses and patents		2.7
Customer relationships		1.3
Trademarks		1.3
Internal-use software		3

There were no impairment charges in fiscal year 2013, 2012 or 2011.

The estimated future amortization expense of purchased intangible assets is as follows (in thousands):

For year ending January 31, 2014	$	38,376
For year ending January 31, 2015		5,876
For year ending January 31, 2016		1,409
Total	$	45,661