XML 28 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Goodwill and Intangible Assets
3 Months Ended
Apr. 30, 2013
Goodwill and Intangible Assets [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

3. GOODWILL AND INTANGIBLE ASSETS

Goodwill

There were no changes in the carrying amount of goodwill during the three months ended April 30, 2013. Goodwill is not amortized, but instead tested for impairment annually during the fourth quarter. Goodwill may also be tested for impairment between annual tests in the presence of impairment indicators. There were no impairments to goodwill during the three months ended April 30, 2013 and 2012, respectively.

Intangible Assets

In May, 2012, the Company entered into an agreement with a third-party to license source code owned by the third party. As part of the agreement, the third-party was required to complete source code enhancements. The Company paid total consideration of $5.4 million, of which $4.0 million was paid in fiscal year 2013 and the remaining $1.4 million was paid in the three months ended April 30, 2013. The total consideration of $5.4 million, along with $0.1 million in internal development costs, was capitalized within intangible assets on the condensed consolidated balance sheet in fiscal 2013. The intangible asset is being amortized over its estimated useful life 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 loss.

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

 

                         
    As of April 30, 2013  
    Gross     Accumulated
Amortization
    Net  

Technology, licenses and patents

  $ 184,213     $ (179,597   $ 4,616  

Customer relationships

    278,900       (249,294     29,606  

Trademarks

    14,300       (12,778     1,522  

Internal-use software

    6,827       (6,380     447  
   

 

 

   

 

 

   

 

 

 

Total

  $ 484,240     $ (448,049   $ 36,191  
   

 

 

   

 

 

   

 

 

 

 

                         
    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 April 30, 2013, the estimated future amortization expense of the Company’s intangible assets is as follows (in thousands):

 

         

For the remaining nine months ending January 31, 2014

  $ 28,800  

For year ending January 31, 2015

    5,920  

For year ending January 31, 2016

    1,453  

For year ending January 31, 2017

    18  
   

 

 

 

Total

  $ 36,191  
   

 

 

 

The Company tests its long-lived assets for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. A long-lived asset is not recoverable, and therefore subject to impairment charge, if its carrying amount exceeds the undiscounted cash flows associated with it. There were no impairment charges in the three month periods ended April 30, 2013 and 2012, respectively.