Intangible Assets

3 Months Ended

Apr. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

5. Intangible Assets

The intangible assets primarily consist of $4.1 million of IPR&D from the acquisition of VisLab S.r.l., or VisLab, in June 2015 and $9.8 million of a noncancelable software license. Acquired IPR&D is capitalized at fair value as an intangible asset and amortization commences upon completion of the underlying projects. When a project underlying reported IPR&D is completed, the corresponding amount of IPR&D is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. As of April 30, 2017, there was no IPR&D amortized.

In March 2017, the Company entered into a noncancelable software license agreement with Cadence Design Systems, Inc. (“Cadence”), a related party of the Company. Under this license agreement, the Company committed to pay an aggregate amount of $10.3 million through January 2020. The license has been capitalized as an intangible asset and the corresponding future payments have been recorded as liabilities at net present value. As of April 30, 2017, $3.2 million was recorded in accrued and other current liabilities and $5.8 million was recorded in other long-term liabilities in the condensed consolidated balance sheet. For the three months ended April 30, 2017, there was $0.3 million of amortization expense for this noncancelable software license.

There were no intangible asset impairments for the three months ended April 30, 2017 and 2016, respectively.