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Table of Contents
NOTE 5 — GOODWILL AND INTANGIBLE ASSETS
The Company’s goodwill balance of $225.0 million and $96.8 million at January 31, 2013 and 2012, 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, 2013, are as follows:
The increase in goodwill during fiscal 2013 is the result of the Company’s business acquisition in Europe (see also Note 6 – Acquisitions).
In conjunction with the Company’s annual impairment testing, the Company’s goodwill was tested for impairment as of January 31, 2013. 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 of the Company’s reporting units, including goodwill. As a result, no goodwill impairment was recorded at
January 31, 2013.
Also included within “other assets, net” are intangible assets as follows:
The Company capitalized intangible assets of $156.4 million , $48.1 million and $75.3 million for the years ended January 31, 2013, 2012 and
2011, respectively. 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
implementation in the U.S. For fiscal 2012, these capitalized assets related primarily to software and software development expenditures to be used
in the Company’s operations and customer and vendor relationships related to the Company’s acquisitions during fiscal 2012 (see also Note 6 –
Acquisitions). There was no interest capitalized during any of the fiscal years ended January 31, 2013, 2012 and 2011.
The weighted-average amortization period for all intangible assets capitalized during fiscal 2013 approximated eight years and approximated six
years and five years for intangible assets capitalized during fiscal 2012 and 2011, respectively. The weighted average amortization period of all
intangible assets was approximately seven years for fiscal 2013 and six years for both fiscal 2012 and 2011.
60
Americas
Europe
Total
(In thousands)
Balance as of February 1, 2012 (as restated)
$
2,966
$
93,827
$
96,793
Goodwill acquired during the year
0
122,640
122,640
Foreign currency translation adjustment
0
5,612
5,612
Balance as of January 31, 2013
$
2,966
$
222,079
$
225,045
January 31, 2013
January 31, 2012
(as restated)
Gross
carrying
amount
Accumulated
amortization
Net book
value
Gross
carrying
amount
Accumulated
amortization
Net book
value
(In thousands)
(In thousands)
Capitalized software and
development costs
$
330,116
$
248,013
$
82,103
$
301,052
$
223,148
$
77,904
Customer and vendor relationships
206,415
52,608
153,807
98,080
36,544
61,536
Preferred supplier agreement
30,754
1,575
29,179
0
0
0
Other intangible assets
10,789
6,320
4,469
9,636
4,505
5,131
Total
$
578,074
$
308,516
$
269,558
$
408,768
$
264,197
$
144,571