Goodwill and Intangible Assets

9 Months Ended

Oct. 31, 2016

Note 5.Goodwill and Intangible Assets

The table below sets forth the intangible assets by major asset class, all of which were acquired through business purchase transactions:


				October 31, 2016
	Useful Life			Original		Accumulated		Net Book
	(Years)			Cost		Amortization		Value
Customer contracts and relationships	8	-	30	$	422.5	$	124.6	$	297.9
Covenants not to compete	4	-	5		5.5		3.4		2.1
Developed technologies	15				3.3		0.2		3.1
Trade names	Indefinite				17.2		-		17.2
				$	448.5	$	128.2	$	320.3

Amortization expense associated with identifiable intangible assets was approximately $4.8 and $5.8 for the three months ended October 31, 2016 and 2015, respectively, and $14.7 and $19.1 for the nine months ended October 31, 2016 and 2015, respectively. The Company currently expects to recognize amortization expense of approximately $20.0 in each of the next five fiscal years (primarily related to our ASG business). The future amortization amounts are estimates. Actual future amortization expense may be different due to finalization of purchase price allocations of acquisitions, future acquisitions, impairments, changes in amortization periods or other factors such as changes in exchange rates for assets acquired outside the United States. The Company expenses costs to renew or extend the term of a recognized intangible asset. Goodwill increased by $38.4 as compared to January 31, 2016 primarily as a result of the May 17, 2016 acquisition of Herndon by the ASG segment.

The fair value of the ASG reporting unit exceeded the carrying value by approximately 16% as of December 31, 2015, and approximately $993.3 of goodwill has been allocated to the ASG reporting unit as of October 31, 2016. ASG's cash flow projections were a significant input into the December 31, 2015 reporting unit fair value. Should ASG’s future cash from operations decline to levels inconsistent with ASG’s projected results, long-term projections may be adjusted downward, which could result in an impairment charge at the ASG reporting unit.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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