Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v3.3.1.900
Goodwill and Intangible Assets
12 Months Ended
Jan. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

At January 31, 2016 and 2015, we had goodwill of $40.2 million and $41.0 million, respectively. The change in the carrying amount of goodwill for the years ended January 31, 2016 and 2015 is as follows (amounts in thousands):

 

     Goodwill  

Balance at January 31, 2014

   $ 45,150   

Cumulative translation adjustment

     (4,142
  

 

 

 

Balance at January 31, 2015

     41,008   

Acquisition of Timeline Labs

     15,787   

Timeline Labs goodwill impairment

     (15,787

Cumulative translation adjustment

     (833
  

 

 

 

Balance at January 31, 2016

   $ 40,175   
  

 

 

 

We are required to perform impairment tests related to our goodwill annually, which we perform during the third quarter of each fiscal year, or when an indicator of impairment occurs. During the fourth quarter of fiscal 2016, due to the decision to enter into a restructuring plan relating to the Timeline Labs operations (that may include a winding down of the operations), we impaired $15.8 million of goodwill, which represented all of the goodwill that resulted from the acquisition, due to the short duration of time between our acquisition and the event causing us to impair. As a result of this decision, which we consider a triggering event, we were required to perform an analysis of our goodwill. The results of this analysis determined that there was no further impairment to our goodwill during the fourth quarter of fiscal 2016.

Intangible assets, net, consisted of the following at January 31, 2016 and 2015:

 

          January 31, 2016     January 31, 2015  
    Weighted average
remaining life
(Years)
    Gross     Accumulated
Amortization
    Net     Gross     Accumulated
Amortization
    Net  
    (Amounts in thousands)  

Finite-lived intangible assets:

             

Customer contracts

    6.0      $ 29,956      $ (26,284   $ 3,672      $ 30,397      $ (24,160   $ 6,237   

Non-compete agreements

    —          2,365        (2,365     —          2,433        (2,433     —     

Completed technology

    5.5        10,075        (9,621     454        10,307        (9,230     1,077   

Trade names, intellectual property and other

    —          7,068        (7,068     —          7,082        (7,082     —     
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total finite-lived intangible assets

    $ 49,464      $ (45,338   $ 4,126      $ 50,219      $ (42,905   $ 7,314   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amortization expense for intangible assets was $4.8 million, $5.2 million and $4.6 million for fiscal 2016, 2015 and 2014, respectively.

 

The total amortization expense for each of the next five fiscal years is as follows (amounts in thousands):

 

For the Fiscal Years Ended January 31,

   Estimated
Amortization
Expense
 

2017

   $ 2,107   

2018

     1,267   

2019

     631   

2020

     121   

2021

     —     

2022 and thereafter

     —     
  

 

 

 

Total

   $ 4,126   
  

 

 

 

Actual amortization may differ from estimated amounts in the table above due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions, potential impairment, accelerated amortization, or other events.