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Table of Contents
NOTE 4 — GOODWILL AND INTANGIBLE ASSETS
The Company’s goodwill balance of $198.6 million and $230.5 million at January 31, 2015 and 2014, 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, 2015, are as follows:
In conjunction with the Company’s annual impairment testing, the Company’s goodwill was tested for impairment as of January 31, 2015. 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, 2015.
Also included within “other assets, net” are intangible assets as follows:
The Company capitalized intangible assets of $10.4 million , $19.0 million and $156.4 million for the fiscal years ended January 31, 2015,
2014 and 2013, respectively. For fiscal 2015, these capitalized assets related primarily to software and software development expenditures to be
used in the Company's operations. 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. There was no interest capitalized during any of the fiscal years ended January 31, 2015, 2014 and 2013.
The weighted-average amortization period for all intangible assets capitalized during fiscal 2015, 2014, and 2013 approximated four years, six
years and
eight years, respectively. The weighted average amortization period of all intangible assets was approximately seven years for fiscal
2015, 2014 and 2013.
47
Americas
Europe
Total
(In thousands)
Balance as of February 1, 2014
$
4,888
225,584
230,472
Goodwill acquired during the year
554
554
Foreign currency translation adjustment
(32,461
)
(32,461
)
Balance as of January 31, 2015
$
5,442
193,123
198,565
January 31, 2015
January 31, 2014
Gross
carrying
amount
Accumulated
amortization
Net book
value
Gross
carrying
amount
Accumulated
amortization
Net book
value
(In thousands)
Capitalized software and
development costs
307,759
$
250,987
$
56,772
$
328,456
$
255,946
72,510
Customer and vendor relationships
180,659
82,512
98,147
209,685
74,461
135,224
Preferred supplier agreement
28,276
11,032
17,244
32,120
7,622
24,498
Other intangible assets
12,553
7,962
4,591
13,485
7,814
5,671
Total
529,247
$
352,493
$
176,754
$
583,746
$
345,843
237,903