Intangible Assets

6 Months Ended

Jul. 31, 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 $8.9 million of a noncancelable software license. Acquired IPR&D is capitalized at fair value and the 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 July 31, 2017, there was no IPR&D amortized.

During the six months ended July 31, 2017, the Company entered into certain noncancelable software license agreements in which the Company committed to pay an aggregate amount of $10.5 million through January 2020. The licenses have been capitalized as intangible assets, and the corresponding future payments have been recorded as liabilities at net present value. As of July 31, 2017, $3.2 million was recorded in accrued and other current liabilities and $5.9 million was recorded in other long-term liabilities in the condensed consolidated balance sheets. For the three and six months ended July 31, 2017, there was $0.8 million and $1.1 million of amortization expense recorded in the condensed consolidated statements of operations, respectively.

There were no intangible asset impairments for the three and six months ended July 31, 2017 and 2016, respectively.