Tech Data 2014 Annual Report Download - page 52

Table of Contents
NOTE 4 — GOODWILL AND INTANGIBLE ASSETS
The Company’s goodwill balance of $230.5 million and $225.0 million at January 31, 2014 and 2013, 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, 2014, are as follows:
In conjunction with the Company’s annual impairment testing, the Company’s goodwill was tested for impairment as of January 31, 2014. 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, 2014.
Also included within “other assets, net” are intangible assets as follows:
The Company capitalized intangible assets of $19.0 million , $156.4 million and $48.1 million for the years ended January 31, 2014, 2013 and
2012, respectively. 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. 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. There was
no
interest capitalized during any of the fiscal years ended January 31, 2014, 2013 and 2012.
The weighted-average amortization period for all intangible assets capitalized during fiscal 2014, 2013, and 2012 approximated six years, eight
years and
six years, respectively. The weighted average amortization period of all intangible assets was approximately seven years for fiscal
2014 and 2013 and six years for fiscal 2012.
48
Americas Europe Total
(In thousands)
Balance as of February 1, 2013
$
2,966
$
222,079
$
225,045
Goodwill acquired during the year
1,922
2,463
4,385
Foreign currency translation adjustment
0
1,042
1,042
Balance as of January 31, 2014
$
4,888
$
225,584
$
230,472
January 31, 2014 January 31, 2013
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
$
328,456
$
255,946
$
72,510
$
330,116
$
248,013
$
82,103
Customer and vendor relationships
209,685
74,461
135,224
206,415
52,608
153,807
Preferred supplier agreement
32,120
7,622
24,498
31,536
1,549
29,987
Other intangible assets
13,485
7,814
5,671
10,007
6,346
3,661
Total
$
583,746
$
345,843
$
237,903
$
578,074
$
308,516
$
269,558