Goodwill And Intangible Assets

12 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 4 — GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill, by segment, for the fiscal year ended January 31, 2020, are as follows (in thousands):



	Americas		Europe			Asia-Pacific			Total
Balance as of January 31, 2019	$	488,508	$	381,271		$	23,211		$	892,990
Acquisitions	82,889		—			—			82,889
Foreign currency translation and other	3,137		(5,630		)	(129		)	(2,622		)
Balance as of January 31, 2020	$	574,534	$	375,641		$	23,082		$	973,257

The Company performed its annual goodwill impairment test for fiscal 2020 as of November 1, 2019 which did not result in an impairment.

The Company performed its annual goodwill impairment test for fiscal 2019 as of November 1, 2018 which indicated that the carrying value of the Company’s Asia-Pacific reporting unit exceeded its estimated fair value. In estimating the fair value of the Asia-Pacific reporting unit, 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 estimated fair value developed under the discounted cash flow and market approaches decreased in comparison to the Company’s prior estimates 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 year ended January 31, 2019, 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 acquisition of Avnet, Inc.’s (“Avnet”) Technology Solutions (“TS”) business 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):



	January 31, 2020							January 31, 2019
	Gross carrying amount		Accumulated amortization			Net book value		Gross carrying amount		Accumulated amortization			Net book value
Capitalized software and development costs	$	482,399	$	(349,033	)	$	133,366	$	460,254	$	(336,034	)	$	124,220
Customer and vendor relationships	1,252,393		(328,878		)	923,515		1,063,471		(265,593		)	797,878
Other intangible assets	101,743		(63,948		)	37,795		87,906		(59,146		)	28,760
Total	$	1,836,535	$	(741,859	)	$	1,094,676	$	1,611,631	$	(660,773	)	$	950,858

Other intangible assets is primarily comprised of trade names from previous acquisitions. The Company capitalized intangible assets of approximately $262.9 million, $21.6 million and $1.0 billion for the fiscal years ended January 31, 2020, 2019 and 2018, respectively. For fiscal 2020, these capitalized assets primarily relate to $226.4 million of intangible assets recorded in conjunction with the acquisition of DLT Solutions ("DLT"), including $208.0 million of customer and vendor relationships and $18.4 million of trade names. 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).

Capitalized software and development costs amortization expense for the fiscal years ended January 31, 2020, 2019 and 2018 totaled $30.5 million, $33.4 million and $32.0 million, respectively. Other intangible assets amortization expense for the fiscal years ended January 31, 2020, 2019 and 2018 totaled $86.9 million, $91.2 million and $89.1 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):



Fiscal year:	Capitalized software and development costs		Other intangible assets		Total
2021	$	31,043	$	97,899	$	128,942
2022	26,598		97,582		124,180
2023	14,780		87,875		102,655
2024	12,006		80,574		92,580
2025	8,876		79,874		88,750