Loss On Disposal Of Subsidiaries

12 Months Ended

Jan. 31, 2012

Loss On Disposal Of Subsidiaries [Abstract]

Loss On Disposal Of Subsidiaries

NOTE 6 — LOSS ON DISPOSAL OF SUBSIDIARIES

In the fourth quarter of fiscal 2012, as part of the Company's ongoing initiatives to optimize profitability and return on invested capital in Latin America, the decision was made to close the Company's in-country commercial operations in Brazil and Colombia by the end of fiscal 2012. During the fourth quarter of fiscal 2012, the Company recorded a loss on disposal of these subsidiaries of $28.3 million, which includes a $9.9 million impairment on the Company's investments in Brazil and Colombia due to a foreign currency exchange loss (previously recorded in shareholders' equity as accumulated other comprehensive income), $15.3 million related to the write-off of certain value-added tax receivables and $3.1 million comprised primarily of severance costs, fixed asset write-offs and lease termination penalties. These costs are reflected in the Consolidated Statement of Operations as "loss on disposal of subsidiaries", which is a component of operating income. These costs do not include any estimated costs associated with the Brazilian subsidiary's contingencies related to CIDE and other non-income related tax examinations (see further discussion in Note 13—Commitments and Contingencies). The operating losses of Brazil and Colombia for the fiscal year ended January 31, 2012 were not significant to the Company's consolidated operating results.