Goodwill And Intangible Assets

12 Months Ended

Jan. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 4 — GOODWILL AND INTANGIBLE ASSETS

The Company’s goodwill balance of $198.6 million and $230.5 million at January 31, 2015 and 2014, respectively, is included within “other assets, net” in the Consolidated Balance Sheet.

The changes in the carrying amount of goodwill, by geographic segment, for the fiscal year ended January 31, 2015, are as follows:



	Americas		Europe			Total
			(In thousands)
Balance as of February 1, 2014	$	4,888	$	225,584		$	230,472
Goodwill acquired during the year	554		0			554
Foreign currency translation adjustment	0		(32,461		)	(32,461		)
Balance as of January 31, 2015	$	5,442	$	193,123		$	198,565

In conjunction with the Company’s annual impairment testing, the Company’s goodwill was tested for impairment as of January 31, 2015. The impairment testing included a determination of the fair value of the Company’s reporting units, which are also the Company’s operating segments, using market multiples and discounted cash flows modeling. The results of the testing indicated that the fair value of the Company’s reporting units was greater than the carrying value. As a result, no goodwill impairment was recorded at January 31, 2015.

Also included within “other assets, net” are intangible assets as follows:



	January 31, 2015						January 31, 2014
	Gross carrying amount		Accumulated amortization		Net book value		Gross carrying amount		Accumulated amortization		Net book value
	(In thousands)
Capitalized software and development costs	$	307,759	$	250,987	$	56,772	$	328,456	$	255,946	$	72,510
Customer and vendor relationships	180,659		82,512		98,147		209,685		74,461		135,224
Preferred supplier agreement	28,276		11,032		17,244		32,120		7,622		24,498
Other intangible assets	12,553		7,962		4,591		13,485		7,814		5,671
Total	$	529,247	$	352,493	$	176,754	$	583,746	$	345,843	$	237,903

The Company capitalized intangible assets of $10.4 million, $19.0 million and $156.4 million for the fiscal years ended January 31, 2015, 2014 and 2013, respectively. For fiscal 2015, these capitalized assets related primarily to software and software development expenditures to be used in the Company's operations. For fiscal 2014, these capitalized assets related primarily to software and software development expenditures to be used in the Company's operations and vendor relationships related to the Company's business acquisition during fiscal 2014 (see also Note 5 – Acquisitions). For fiscal 2013, these capitalized assets resulted from customer and vendor relationships related to the Company’s business acquisition during fiscal 2013 and capitalized assets related to the software and software development expenditures in the Company's SAP implementation in the U.S. There was no interest capitalized during any of the fiscal years ended January 31, 2015, 2014 and 2013.

The weighted-average amortization period for all intangible assets capitalized during fiscal 2015, 2014, and 2013 approximated four years, six years and eight years, respectively. The weighted average amortization period of all intangible assets was approximately seven years for fiscal 2015, 2014 and 2013.

Amortization expense for the fiscal years ended January 31, 2015, 2014 and 2013, totaled $49.5 million, $51.8 million and $37.8 million, respectively. Estimated amortization expense of capitalized software and development costs placed in service at January 31, 2015, and acquired intangible assets (which includes customer and vendor relationships, preferred supplier agreement and other intangible assets) is as follows (in thousands):



Fiscal year:	Capitalized software and development costs		Acquired intangible assets		Total
2016	$	15,800	$	21,900	$	37,700
2017	12,300		21,000		33,300
2018	9,200		19,400		28,600
2019	6,200		15,900		22,100
2020	4,400		11,100		15,500

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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