Goodwill And Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets | NOTE 4 — GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill, by segment, for the fiscal year ended January 31, 2019, are as follows (in thousands):
The Company performed its annual goodwill impairment test on November 1, 2018. In estimating the fair value of the Company’s reporting units, a discounted cash flow approach and market approach were utilized. The assumptions used in the discounted cash flow approach were based on historical and forecasted revenue, operating costs, working capital requirements, economic conditions and other relevant factors. The assumptions used in the market approach were based on the value of a business through an analysis of multiples of guideline companies and recent sales or offerings of a comparable entity. The results of the goodwill impairment test indicated that the fair value of each of the Company’s Americas and Europe reporting units was greater than its carrying value; however, the carrying value of the Company’s Asia-Pacific reporting unit exceeded its estimated fair value. The estimated fair value of the Company’s Asia-Pacific reporting unit developed under the discounted cash flow and market approaches decreased in comparison to the Company’s prior estimates. The decrease in fair value was primarily due to lower operating results and increased investments in the region as compared to expectations. As a result, goodwill impairment expense of $47.4 million was recorded during the Company’s fourth quarter, representing the amount by which the carrying value of the Asia-Pacific reporting unit exceeded its fair value. The goodwill recorded in the Company’s Asia-Pacific reporting unit relates entirely to the TS acquisition as the Company did not have operations in the region prior to the acquisition of TS. The Company's intangible assets consist of the following (in thousands):
Other intangible assets is primarily comprised of trade names from previous acquisitions. The Company capitalized intangible assets of approximately $21.6 million, $1.0 billion and $14.6 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. For fiscal 2019, these capitalized assets primarily relate to software and software development expenditures to be used in the Company's operations. For fiscal 2018, these capitalized assets primarily relate to approximately $1.0 billion of intangible assets recorded in conjunction with the acquisition of TS, including $875 million related to customer relationships, $75 million of capitalized software and development costs and $44 million related to trade names (see Note 5 – Acquisitions for further discussion). For fiscal 2017, these capitalized assets related primarily to software and software development expenditures to be used in the Company's operations. Capitalized software and development costs amortization expense for the fiscal years ended January 31, 2019, 2018 and 2017 totaled $33.4 million, $32.0 million and $17.1 million, respectively. Other intangible assets amortization expense for the fiscal years ended January 31, 2019, 2018 and 2017 totaled $91.2 million, $89.1 million and $21.1 million, respectively. Estimated amortization expense of existing capitalized software and development costs and other intangible assets (which includes customer and vendor relationships and other intangible assets) is as follows (in thousands):
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